State Street reported revenue of $2.32 billion in the fourth quarter of 2011, an increase of 13% over the $2.04 billion in revenue reported in the fourth quarter of 2010. Revenue for the full year was $9.59 billion, a 7% increase over 2010, when the firm reported revenue of $8.95 billion.
Securities finance revenue was $90 million in the fourth quarter, up 30% from $69 million in the fourth quarter of 2010. State Street says this is due primarily to improved spreads offset partially by lower volumes.
Our results for 2011 also demonstrated the positive impact of the expense controls we put in place, especially the progress of the business operations and information technology transformation program, relative to compensation and employee benefits expenses, says Jay Hooley, chairman, president and CEO of State Street. We will continue to manage our expenses in 2012 to address the impact of challenging capital markets.
In December 2010 State Street announced a restructuring plan that would make redundant 1,400 employees, and it announced last year it would lay off an additional 500 staff.
Foreign exchange trading revenue at decreased 12%, primarily due to a shift in mix, State Street says. FX revenue was also down for the quarter at BNY Mellon. Both firms are facing lawsuits by US pensions that claim the custodians overcharged them on FX transactions.
Total assets under custody and administration at State Street were $21.81 trillion at Dec. 31, 2011, up 1% compared to $21.53 trillion at Dec. 31, 2010.
(CG)