State Street’s securities finance revenues up 16% YoY
19 January 2022 US
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State Street’s securities finance revenues have grown 15.9 per cent YoY, rising to US$102 million in Q4 2021.
The Boston-based bank indicates that this was driven by higher securities loan balances and new mandate wins in its Enhanced Custody service.
However, securities finance revenues contracted 3.8 per cent month-on-month, largely accounted for by lower specials revenues and agency spreads compared with the November reporting period.
Assets under custody and administration (AUC/A) at State Street have grown by 12.6 per cent to US$43,678 billion YoY, driven by higher market levels, strong client flows and net growth in new business.
Aggregate AUC/A has also risen slightly quarter-on-quarter, up 0.8 per cent from
US$43,337 billion recorded in Q3 21.
State Street’s total revenue has increased by 5 per cent YoY to US$3.05 billion in Q4 21, with total fee revenue contributing US$2.51 billion of this number.
Net income for the company has climbed 30 per cent YoY to US$697 million. However, quarter-on-quarter, net income has dipped 2 per cent from its US$714 million figure in Q3 2021.
State Street’s Common Equity Tier 1 ratio (standardised approach) improved 1.9 per cent to 14.2 per cent YoY, reflecting higher retained earnings and the issue of US$1.9 billion of common stock in Q3 2021 to finance the proposed acquisition of Brown Brothers Harriman Investor Services .
The Boston-based bank indicates that this was driven by higher securities loan balances and new mandate wins in its Enhanced Custody service.
However, securities finance revenues contracted 3.8 per cent month-on-month, largely accounted for by lower specials revenues and agency spreads compared with the November reporting period.
Assets under custody and administration (AUC/A) at State Street have grown by 12.6 per cent to US$43,678 billion YoY, driven by higher market levels, strong client flows and net growth in new business.
Aggregate AUC/A has also risen slightly quarter-on-quarter, up 0.8 per cent from
US$43,337 billion recorded in Q3 21.
State Street’s total revenue has increased by 5 per cent YoY to US$3.05 billion in Q4 21, with total fee revenue contributing US$2.51 billion of this number.
Net income for the company has climbed 30 per cent YoY to US$697 million. However, quarter-on-quarter, net income has dipped 2 per cent from its US$714 million figure in Q3 2021.
State Street’s Common Equity Tier 1 ratio (standardised approach) improved 1.9 per cent to 14.2 per cent YoY, reflecting higher retained earnings and the issue of US$1.9 billion of common stock in Q3 2021 to finance the proposed acquisition of Brown Brothers Harriman Investor Services .
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