State Street: Q3 Fees Up 9%, Securities Financing Revenues Down 32.7% on Q2

State Street’s asset servicing and asset management fees in the third quarter of 2014 together were up 9% on the prior period.

Joseph Hooley, the custodian bank’s CEO, says growth reflected improved equity markets and new business. “We won new business commitments of $302 billion of assets to be serviced and had $3 billion of net new assets to be managed during the quarter demonstrating the continued strength of our business,” he says.

For Q3, State Street reported net income available to common shareholders of $542 million, a decrease from $602 million in the second quarter of 2014 and an increase from $531 million in the third quarter of 2013.

Revenue of $2.58 billion decreased from $2.60 billion in the second quarter of 2014 and increased from $2.43 billion in the third quarter of 2013.

Net interest revenue of $570 million increased from $561 million in the second quarter of 2014 and from $546 million in the third quarter of 2013.

Servicing fees of $1.3 billion in the third quarter of 2014 increased 1.1% from the second quarter of 2014, primarily due to net new business and stronger global equity markets, partially offset by the impact of the stronger U.S. dollar. Compared to the third quarter of 2013, servicing fees increased 7.5%, primarily due to stronger global equity markets and net new business.

Securities finance revenue of $99 million in the third quarter of 2014 decreased 32.7% from the second quarter of 2014, primarily due to second-quarter seasonality. Compared to the third quarter of 2013, securities finance revenue increased 33.8%, primarily due to higher volumes.