Record-breaking Q2 for State Street 27 July 2017Boston Reporter: Stephanie Palmer
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State Street recorded record levels of assets under custody and administration, and assets under management in Q2 2017, with the former topping $31 trillion.
Assets under custody and administration saw an 11.7 percent jump compared to Q2 last year, increasing from $27.8 trillion to $31 trillion.
Assets under management reached a total of $2.6 trillion in Q2 2017, marking a 13.3 percent increase from the $2.3 trillion recorded at the same time last year.
At the end of this quarter, assets under management were made up primarily of equity assets, which accounted for $1.6 trillion. Fixed-income assets accounted for $398 billion, and cash accounted for $334 billion.
Operating-basis revenue from servicing fees reached $1.34 billion, a 4 percent increase over Q2 2016.
Revenue from management fees, however, saw a 37.8 percent increase over the same period last year, increasing from $288 million in Q2 2016 to $397 million in Q2 this year.
According to State Street, this increase was primarily due to an estimated additional $72 million from the GE Asset Management business, which State Street acquired on 1 July 2016.
It was also influenced by higher global equity markets, and increased flows of revenue-yielding exchange-traded funds.
New asset servicing mandates in Q2 2017 totalled around $135 billion.
State Street also saw a 14.7 percent increase in operating-basis securities finance fees, from $156 million in Q2 2016 to $179 million in Q2 2017.
The latter figure also represents a 34.6 percent increase on securities financing fees for Q1 2017.
According to State Street, these results reflect multiple product offerings globally, and higher client activity compared to 2016.
Joseph Hooley, chairman and CEO of State Street, said: "We are very pleased with our second-quarter results, delivering a record level of quarterly earnings per share that reflects continued strength in global equity markets as well as momentum in our asset servicing and asset management businesses.”
“We also for the first time exceeded $31 trillion in assets under custody and administration this quarter fuelled by a combination of new business activity and higher equity markets."
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