Securities finance a silver lining for State Street

State Street posted a strong revenue increase for its securities finance arm despite an overall drop across the rest of the business in Q4.

Securities finance revenue was $127 million during the final quarter of 2015, up 19.8% year-on-year. The segment also improved on its third quarter figures by 12.4%.

State Street pinned the uptick on new business from enhanced custody, its principal securities lending service.

Total revenue for State Street was $2.53 billion, down 3.3% from 2014. Assets under custody also declined 2.4% compared with Q4 2014.

“Our performance in the fourth quarter reflects the continued challenges presented throughout 2015, including challenging global equity markets, particularly in emerging markets, persistent low interest rates, the strengthening US dollar, and heightened regulatory expectations,” said Joseph Hooley, State Street’s chairman and chief executive officer.