BlackRock move fails to dent State Street growth

State Street has continued to grow its assets under custody and administration despite the landmark BlackRock shift earlier this year.
By Paul Walsh
State Street has reported an 11% year-on-year increase in its assets under custody and administration in its Q1 2017 figures.

Total assets under custody stood at $29.8 trillion compared to $26.9 trillion at the same time in 2016.

Between Q4 2016 and Q1 2017, assets under custody and administration increased by 4%.

The increase comes despite BlackRock moving $1 trillion in assets from State Street to JP Morgan earlier this year in a landmark custody deal.

The move was later put down to BlackRock’s desire to diversify.

Q1 2017 also saw positive inflows for State Street’s asset management division, State Street Global Advisors, with total assets under management up 12% to $2.5 trillion compared to $2.2 trillion 12 months ago. Quarterly growth in assets under management stood at 4%.

The US custodian has put the increases down to “stronger markets, improved client flows and the contribution of new business wins.”

Other results show total revenue for Q1 stood at $2.2 billion, a 7% yearly increase and up 5% compared to Q4 2016.

“These results reflect strong fee revenue growth, continued expense control and further progress across our strategic priorities, which in turn drove significant positive fee operating leverage, compared to 1Q16,” said Joseph Hooley, chairman and CEO at State Street.

“We are seeing solid new business traction and continue to differentiate our capabilities by investing in our technology and systems.”

Other first quarter results have seen BNY Mellon reaching a record $30.6 trillion in assets under custody.

Northern Trust also recorded a 13% increase in assets under custody and administration taking its total to $8.9 trillion.