State Street announces 3rd quarter results
20 October 2010 Boston
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State Street Corporation today announced third-quarter 2010 earnings, highlighting that securities lending finance revenue was down over 37 per cent on the 2nd quarter.
Earnings per common share were $1.08, an increase of 64 per cent compared to $0.66 in the third quarter of 2009.
Revenue in the third quarter of 2010 was $2.310 billion, up three per cent from $2.236 billion in the third quarter of 2009.
Expenses of $1.527 billion in the third quarter declined 12 per cent from $1.733 billion in the third quarter of 2009. Return on shareholders' equity was 12.9 per cent, up from 10.2 per cent in the third quarter of 2009.
Compared to the second quarter of 2010, third quarter 2010 earnings per share increased 24 per cent from $0.87 per share and revenue was up slightly from $2.304 billion.
Expenses in the second quarter of 2010 were $1.944 billion including the previously disclosed securities finance charge.
For the second quarter of 2010, return on shareholders' equity was 11.0 per cent.
Joseph L. Hooley, State Street's president and chief executive officer, said, "In the third quarter, our overall results were driven by strength in our servicing fee revenue, and our ability to maintain our focus on cost control. During the third quarter, we won $477 billion in assets to be serviced.
"State Street Global Advisors continues to perform well although management fees were down slightly, due primarily to the change in business mix as shown in assets under management. The integrations of the Intesa and Mourant businesses are progressing well and are on track to meet the outlook we previously provided. The weak, low-volume trading environment continues to be challenging for our trading services business. Although the low level of interest rates worldwide continues to create headwinds, we achieved a net interest margin of 177 basis points, excluding discount accretion. On a year-over-year operating basis, we achieved 530 basis points of positive operating leverage and continued to manage expenses very carefully. Our capital levels remain strong and are well in excess of the current regulatory well capitalized requirements."
Hooley continued, "With the support of the two acquisitions, as well as strong year-to-date wins in servicing and growth in passive strategies and ETFs in asset management, we continue to expect that our operating-basis earnings per share, which exclude discount accretion, will be slightly above the adjusted operating-basis $3.32 per share recorded last year."
Hooley concluded, "We are well positioned to take advantage of global growth opportunities and, as the economy normalizes, we are committed to our long-term financial goals for operating basis revenue, earnings per share and return on equity."
Earnings per common share were $1.08, an increase of 64 per cent compared to $0.66 in the third quarter of 2009.
Revenue in the third quarter of 2010 was $2.310 billion, up three per cent from $2.236 billion in the third quarter of 2009.
Expenses of $1.527 billion in the third quarter declined 12 per cent from $1.733 billion in the third quarter of 2009. Return on shareholders' equity was 12.9 per cent, up from 10.2 per cent in the third quarter of 2009.
Compared to the second quarter of 2010, third quarter 2010 earnings per share increased 24 per cent from $0.87 per share and revenue was up slightly from $2.304 billion.
Expenses in the second quarter of 2010 were $1.944 billion including the previously disclosed securities finance charge.
For the second quarter of 2010, return on shareholders' equity was 11.0 per cent.
Joseph L. Hooley, State Street's president and chief executive officer, said, "In the third quarter, our overall results were driven by strength in our servicing fee revenue, and our ability to maintain our focus on cost control. During the third quarter, we won $477 billion in assets to be serviced.
"State Street Global Advisors continues to perform well although management fees were down slightly, due primarily to the change in business mix as shown in assets under management. The integrations of the Intesa and Mourant businesses are progressing well and are on track to meet the outlook we previously provided. The weak, low-volume trading environment continues to be challenging for our trading services business. Although the low level of interest rates worldwide continues to create headwinds, we achieved a net interest margin of 177 basis points, excluding discount accretion. On a year-over-year operating basis, we achieved 530 basis points of positive operating leverage and continued to manage expenses very carefully. Our capital levels remain strong and are well in excess of the current regulatory well capitalized requirements."
Hooley continued, "With the support of the two acquisitions, as well as strong year-to-date wins in servicing and growth in passive strategies and ETFs in asset management, we continue to expect that our operating-basis earnings per share, which exclude discount accretion, will be slightly above the adjusted operating-basis $3.32 per share recorded last year."
Hooley concluded, "We are well positioned to take advantage of global growth opportunities and, as the economy normalizes, we are committed to our long-term financial goals for operating basis revenue, earnings per share and return on equity."
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