A good year for State Street 27 January 2014London Reporter: Daniel Jackson
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State Street’s chairman has said that its results for 2014 show that the business remains strong despite the difficult financial climate.
The company is a global financial services provider with $27.43 trillion in assets under custody and administration and $2.35 trillion in assets under management. The company employs 29,430 people worldwide.
Joseph Hooley, chairman, president and CEO, said: "Our fourth quarter and full-year results reflect the strength of the core business and our continued focus on our key priorities to deliver value for our clients and shareholders. [Last year] was a very good year for State Street despite both the ongoing headwinds created by the low rate environment and the increasing regulatory cost and complexity. Importantly, for the full year, we grew our core asset servicing and asset management fees by almost 10 percent compared to 2012."
New asset servicing mandates during Q4 2013 totalled $392 billion and net new assets to be managed were $5 billion.
Operating-basis other expenses increased 16.3 percent to $292 million in Q4, primarily due to higher securities processing costs, professional services fees and sales promotion costs.
The results show that securities finance revenue of $76 million in the fourth quarter of 2013 increased 2.7 percent from the third quarter of 2013 and fourth quarter of 2012, respectively.
Net income available to common shareholders of the company grew from $531 million in Q3 2013 to $545 million in Q4.
With reference to projections, the company cited adverse changes in the regulatory capital ratios under the US Dodd-Frank Act as a potentially limiting factor.
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