State Street sees slow Q1 for securities finance
27 April 2017 Boston
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State Street saw very slight declines in securities finance revenues in Q1 2017, securing $133 million, 0.7 percent less than the $134 million taken in the same period last year.
This is also a 2.2 percent decrease compared to $136 million in securities finance revenues taken in Q4 2016.
According to State Street, this slight decline is down to lower short interest in equity markets in Q1 2017.
In general, however, asset servicing fees also saw a slight increase, totalling $1.3 billion, up 4.3 percent on Q1 last year, which saw fees of $1.24 billion. This also reflects a marginal 0.5 percent increase on asset servicing fees recorded in Q4 2016, which totalled $1.29 billion.
State Street attributed the 4.3 percent increase primarily to higher global equity markets and net new business, however this was offset by hedge fund outflows and the negative effects of a stronger US dollar.
The bank reported a 10.7 percent increase in assets under administration and custody, ending Q1 2017 with $29.83 trillion, up 10.7 percent on Q1 2016, which reach a total of $26.94 trillion.
This also represents a 3.7 percent increase on its Q4 2016 results, which reported assets under custody and administration of $28.77 trillion.
The total figure includes assets under custody of $22.51 trillion, marking an increase from $20.79 trillion in the same quarter last year, and from $21.73 trillion in Q4 2016.
According to Joseph Hooley, State Street’s chairman and CEO, these results reflect “stronger markets, improved client flows and the contribution of our new business wins over the past year, which benefited from our investments in solutions for clients’ most complex needs”.
This is also a 2.2 percent decrease compared to $136 million in securities finance revenues taken in Q4 2016.
According to State Street, this slight decline is down to lower short interest in equity markets in Q1 2017.
In general, however, asset servicing fees also saw a slight increase, totalling $1.3 billion, up 4.3 percent on Q1 last year, which saw fees of $1.24 billion. This also reflects a marginal 0.5 percent increase on asset servicing fees recorded in Q4 2016, which totalled $1.29 billion.
State Street attributed the 4.3 percent increase primarily to higher global equity markets and net new business, however this was offset by hedge fund outflows and the negative effects of a stronger US dollar.
The bank reported a 10.7 percent increase in assets under administration and custody, ending Q1 2017 with $29.83 trillion, up 10.7 percent on Q1 2016, which reach a total of $26.94 trillion.
This also represents a 3.7 percent increase on its Q4 2016 results, which reported assets under custody and administration of $28.77 trillion.
The total figure includes assets under custody of $22.51 trillion, marking an increase from $20.79 trillion in the same quarter last year, and from $21.73 trillion in Q4 2016.
According to Joseph Hooley, State Street’s chairman and CEO, these results reflect “stronger markets, improved client flows and the contribution of our new business wins over the past year, which benefited from our investments in solutions for clients’ most complex needs”.
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