State Street sees drop in asset servicing and AUC revenue
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State Street sees drop in asset servicing and AUC revenue 22 July 2019London Reporter: Jenna Lomax
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State Street has recorded a drop of 9.3 percent in revenue within asset servicing in its Q2 figures for this year, compared to the same period last year.
The bank also revealed a three percent drop in assets under custody in its Q2 figures.
State Street explained that the drop was driven by a decrease in the value of assets from its pension fund and insurance company clients.
Total assets under custody and administration stood at $32.7 trillion, down 3.3 percent, compared with Q2 2018.
Securities finance revenue was also down 18.2 percent to $168 million while total revenues were down 5.6 percent to $2.2 billion.
The bank claimed challenging industry conditions such as fee pressure and lower client activity as the main causes of the results.
Ron O'Hanley, president and CEO: "State Street is acting with urgency to adjust to a challenging external environment. We remain laser focused on steps we can immediately take both to improve financial performance and strengthen client service, including enhanced productivity, process re-engineering and greater resource discipline.”
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