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.
Tag: Assets under custody
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.
Revenues for HSBC Securities Services grew 11% to nearly $2 billion over the year, in which it was boosted by its global custody business.
However assets under custody for the French bank fell by 1.3% to €9.3 trillion as a global sell-off in equity markets hit Europe.
The results are in line with the bank’s US competitors, as the mass sell-off in equity markets hit custody assets.
The two US investment banks are the first to report their quarterly earnings, with their results often seen as a reflection of the current state of the banking industry.
State Street announced assets under custody of $33.8 trillion, up 9% year-on-year and overtaking BNY Mellon for the first time in three years.