State Street chief cool on Brexit as Q2 results show uptick

Q2 results show improvement on first quarter but decline year-on-year.
By Jonathan Watkins
State Street’s second quarter results have shown an uptick from the start of the year, with CEO Jay Hooley playing down any impact from the UK referendum.

Total revenue was up 3.6% from Q1, while assets under custody (AuC) and administration rose 3.1%.

State Street logged $750 billion worth of new asset servicing mandates during the second quarter.

The results did show a drop year-on-year however, with revenue and AuC dropping 1.3% and 3% respectively.

“Demand remains robust across our global client base as demonstrated by new servicing commitments of approximately $750 billion, including our appointment by Deka Bank and Allianz Global Investors to provide a range of investment services for $583 billion in assets,” said Jay Hooley, CEO and chairman of State Street.

Hooley, who spoke to Global Custodian about his plans to upgrade State Street’s technology recently, was also cool on the topic of Brexit, claiming “the diverse and complex $30 trillion European investment market” is still a “significant opportunity”.

“Our long-term outlook for our European operations has not been materially impacted by the referendum, other than the impact of anticipated persistence of lower market interest rates,” he added.

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