Sweet Q2 for State Street
29 July 2015 Boston
Image: Shutterstock
State Street has seen an increase in its servicing fees in Q2 2015, reaching a total of just over $1.3 billion, an increase of 2.9 percent compared to Q2 last year, and of 4.1 percent compared to Q1 2015.
Primarily, the increase has been attributed to net new business and generally stronger global markets. However, the increase on the same period in 2014 was partially offset by a stronger US dollar.
New asset servicing mandates won in Q2 2015 amounted to a total of $143 billion, while asset management saw outflows of $65 billion.
State Street also revealed increases in its securities finance revenue, which reached $155 million in Q2 2015.
This result represents an increase of $54 million, or 53.5 percent compared to Q1, a jump that was primarily attributed to seasonality. However, it is also an increase of 5.4 percent compared to Q2 2014.
Joseph Hooley, chairman and CEO of State Street, said: “Q2 2015 results reflect the strength of our core business, as evidenced by 4% growth in servicing fees compared to the first quarter of 2015, and also reflect the benefit of seasonal securities finance activity.”
He also pointed out: “Towards the end of the second quarter of 2015 we saw a number of significant market disruptions, including the possibility of Greece exiting the Eurozone and elevated equity market volatility in China, all of which drove markets down in June and reduced risk appetite."
As of the end of June 2015, State Street has $28.7 trillion in assets under custody and administration, and $2.4 trillion in assets under management.
Primarily, the increase has been attributed to net new business and generally stronger global markets. However, the increase on the same period in 2014 was partially offset by a stronger US dollar.
New asset servicing mandates won in Q2 2015 amounted to a total of $143 billion, while asset management saw outflows of $65 billion.
State Street also revealed increases in its securities finance revenue, which reached $155 million in Q2 2015.
This result represents an increase of $54 million, or 53.5 percent compared to Q1, a jump that was primarily attributed to seasonality. However, it is also an increase of 5.4 percent compared to Q2 2014.
Joseph Hooley, chairman and CEO of State Street, said: “Q2 2015 results reflect the strength of our core business, as evidenced by 4% growth in servicing fees compared to the first quarter of 2015, and also reflect the benefit of seasonal securities finance activity.”
He also pointed out: “Towards the end of the second quarter of 2015 we saw a number of significant market disruptions, including the possibility of Greece exiting the Eurozone and elevated equity market volatility in China, all of which drove markets down in June and reduced risk appetite."
As of the end of June 2015, State Street has $28.7 trillion in assets under custody and administration, and $2.4 trillion in assets under management.
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