The massive fall in revenues was largely caused by lower market valuations and short-selling bans enacted worldwide by regulators.
Mixed fortunes for European custodians with a combination of double-digit revenue growth and some large declines during the first quarter.
A new report from GC and BCG has found the business models that have underpinned providers for years are now more fragile than they seem.
State Street joins the likes of BNY Mellon, JP Morgan and Citi which all reported an increase in asset servicing revenues for the first quarter of 2020.
New CEO reports 10% rise in fee revenues year-on-year as global custodians begin to report first quarter results.
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.
The drop across the industry bucks a four-year growth streak which begun to pick up significantly from 2016.
During the quarter, the French-headquartered global custodian recorded a number of key mandate wins, boosting AUC and revenues.
Northern Trust stated it too was affected by unfavourable markets but managed to partially offset this with new business.
Revenue from asset servicing, its largest business, was down 7% in comparison to the first quarter of last year at $1.4 billion