State Street records new asset servicing wins of $1.3 trillion

Investments into technology was cited as a core factor for State Street achieving new business wins.

By Joe Parsons
State Street signed off new asset servicing mandates of $1.3 trillion in the first quarter, as revenues from the business increased almost 10% to $1.4 billion.

Assets under custody and administration (AUCA) topped $33.3 trillion, up 12% over the year due to performances in equity markets, new business and client activity.

State Street’s outgoing chairman and chief executive, Jay Hooley, attributed the bank’s investments into technology as a core factor in its new business wins.

“As a result of our multi-year investment in technology, we have been able to win new mandates and expand existing relationships as demonstrated by the record level of new servicing commitments of $1.3 trillion in 1Q18,” said Hooley.

The custodian also said servicing assets remaining to be installed throughout the year total around $1.6 trillion.

However, the increase in revenues from asset servicing fees helped offset “modest” outflows from its hedge fund clients.

State Street also posted a loss of $6 million from the end of 2017 to the first quarter of this year in its securities finance business, due to “modestly lower revenues related to enhanced custody on lower balances.”

The unit still posted an increase of 6% year-on-year due to higher securities lending activity from its agency business.