State Street has gained $343 billion in new servicing wins, with quarter-end servicing assets to be installed in future periods of $463 billion, according to its Q1 2021 report.
Servicing wins were strong across all regions State Street says, with particular areas of strength in the asset manager client segment.
State Street’s Q4 2020 results revealed investment servicing mandates totalled $205 billion, with quarter-end servicing assets remaining to be installed in future periods of $436 billion.
The results revealed that State Street gained three new Alpha deals in Q1 2021. Approximately one-third of assets to be installed at quarter-end attributed to State Street Alpha.
Cryptocurrency exchange-traded funds (ETF) administration servicing pipeline is growing, with State Street’s first Bitcoin ETF fund administration and transfer agency appointment announced, pending regulatory approval.
As well as this, the Charles River Development (CRD) achieved annual recurring revenue of $225 million in Q1 2021, marking an increase of 14 per cent, while investment management net inflows in Q1 2021 came in at $39 billion, primarily driven by ETFs and cash.
Meanwhile, fee revenue increased 4 per cent; up 2 per cent excluding currency translation, which State Street says is largely due to higher servicing, management, and software and processing fees, partially offset by lower foreign exchange (FX) trading revenue.
Commenting on the Q1 results, Ron O'Hanley, chairman and CEO, State Street, says: "Our first-quarter results reflect continued total fee revenue growth, enabling us to partially offset NII headwinds.”
“Our product innovation and enhancements of our operating model continue to make contributions across our businesses, as reflected in our strong new business results including demand for Charles River Development and State Street AlphaSM. Our distinctive value proposition continues to resonate with our clients."
According to O’Hanley, core operating expenses continue to be controlled and we remain committed to expense discipline by driving productivity gains through automation and process reengineering while investing back into the businesses.
“During the first quarter, we completed the repurchase of approximately $475 million of our common stock and have just announced a common share repurchase programme for Q2 2021 of up to $425 million, consistent with the limit set by the Federal Reserve,” he adds.
