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
New research from industry analytics provider Coalition showed revenues from global securities services providers collectively reached $37.2 billion in 2018.
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.
BNY Mellon’s CEO Scharf hoped to reassure investors that it still has a solid pipeline of mandate wins to come.