Tough quarter for Boston-based custodian as revenues from asset servicing fees and assets under custody both drop.
Tag: Assets under custody
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.