State Street sees 4 percent revenue increase in Q3 2018
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State Street sees 4 percent revenue increase in Q3 2018 22 October 2018London Reporter: Brian Bollen
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State Street’s total revenue in Q3 2018 increased 4 percent compared to the same period in 2017, according the company’s financial results.
Fee revenue increased 2 percent, ($38 million), relative to Q3 17, reflecting higher management fees and trading services revenue, partially offset by lower servicing fees as a result of a previously announced client transition and challenging industry conditions.
The impact of a new revenue recognition standard contributed $70 million, (approximately 3 percent points), to fee revenue growth.
Prior year fee revenue included a $26 million gain related to the sale of an equity trading platform.
Net interest income increased 11 percent relative to Q3 17, driven by higher market interest rates in the US and disciplined liability pricing, partially offset by a mix shift to high-quality liquid assets.
Compared to Q2 18, securities finance revenue decreased, primarily due to Q2 18 seasonality.
Joseph Hooley, chairman and CEO of State Street, said: "Our third-quarter and year-to-date results reflect solid performance demonstrated by earnings per share growth of 13 percent and 24 percent compared to 3Q17 and the 2017 year-to-date period, respectively.”
He added: “Our new business remains strong as evidenced by $300 billion in new asset servicing commitments in the third quarter and $1.8 trillion year-to-date."
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