State Street's securities finance revenue soars
24 July 2014 Boston
Image: Shutterstock
State Street鈥檚 securities finance revenue hit $147 million in Q2 2014, an impressive 72.9 percent increase over the first quarter of the year.
Revenue, which was 鈥減rimarily due to seasonality鈥�, was also up 12.2 percent over Q2 2013 because of new business in enhanced custody.
In February, the bank extended its 13-year relationship with Lufthansa German Airlines Group (Deutsche Lufthansa AG) for an additional five years, to include transition management, collateral management and FX spot execution services.
State Street currently provides custody, securities lending, fund accounting, risk analysis and performance measurement services for assets in Germany, Switzerland, Luxembourg and the US, with total assets under custody of $11 billion.
The revenue for State Street鈥檚 assets sector totalled $2.68 billion in Q2 2014, with new business wins for asset servicing coming in at $250 billion and $18 billion in net for new assets to be managed.
Joseph Hooley, chairman of State Street, commented: 鈥淲e are pleased with our solid Q2 revenue growth driven by stronger global and equity markets, net new business and the seasonal benefit from securities finance activity.鈥�
"We continue to see strong demand for our products and services as evidenced by our second quarter new business wins which were $250 billion in asset servicing and $18 billion in net new assets to be managed. We also have a robust and well-diversified new business pipeline."
"Despite our solid performance, we remain cautious about the overall environment given the continued low levels of interest rates and volatility, and the on going pressure of regulatory compliance costs."
Revenue, which was 鈥減rimarily due to seasonality鈥�, was also up 12.2 percent over Q2 2013 because of new business in enhanced custody.
In February, the bank extended its 13-year relationship with Lufthansa German Airlines Group (Deutsche Lufthansa AG) for an additional five years, to include transition management, collateral management and FX spot execution services.
State Street currently provides custody, securities lending, fund accounting, risk analysis and performance measurement services for assets in Germany, Switzerland, Luxembourg and the US, with total assets under custody of $11 billion.
The revenue for State Street鈥檚 assets sector totalled $2.68 billion in Q2 2014, with new business wins for asset servicing coming in at $250 billion and $18 billion in net for new assets to be managed.
Joseph Hooley, chairman of State Street, commented: 鈥淲e are pleased with our solid Q2 revenue growth driven by stronger global and equity markets, net new business and the seasonal benefit from securities finance activity.鈥�
"We continue to see strong demand for our products and services as evidenced by our second quarter new business wins which were $250 billion in asset servicing and $18 billion in net new assets to be managed. We also have a robust and well-diversified new business pipeline."
"Despite our solid performance, we remain cautious about the overall environment given the continued low levels of interest rates and volatility, and the on going pressure of regulatory compliance costs."
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