Custody revenues decline in first half of the year, while fund services income spikes on AUA uptick and ETF boom
Research from Coalition of the top dozen custody banks paints a picture of the revenue and margin struggles facing an industry in flux.
Research from Coalition of the top dozen custody banks paints a picture of the revenue and margin struggles facing an industry in flux.
Contributing to the record, top provider JP Morgan surpassed $1 trillion assets under custody, becoming the first provider to do so.
BNP Paribas saw a market rebound effect on assets under custody, particularly in the Americas and Asia-Pacific region.
The milestone follows a period of increased investment by the US bank into its securities services business over the past few years.
The Boston-based global custodian reported increases in servicing fee revenue and assets under custody, driven by higher client activity and net new business.
JP Morgan reporting revenues from securities services were boosted by revenues were balance and fee growth, while assets under custody reached a new high.
As the value of assets under custody and interest rates decline while the commercial pressure on new services increases, one report has estimated another annual drop in custody revenues.
Tough quarter for Boston-based custodian as revenues from asset servicing fees and assets under custody both drop.
The decline means another disappointing quarter for the world’s largest global custodian as asset servicing revenues fell 8% year-on-year.
Results were partially offset by increased client activity, as assets under custody increased by over 5% to $25.5 trillion.