State Street sees securities finance slump at year-end
20 January 2020 New York
Image: Shutterstock
State Street’s Q4 2019 report showed an 8 percent decrease in its securities finance revenue compared to 4Q 2018.
In its quarterly report, the bank’s showed its securities finance revenue dropped from $120 million in Q4 2018 to $112 million last quarter, representing a 4 percent decrease.
Last year’s Q4 revenue also fell by 8 percent compared to the $116 million achieved in Q3 2019.
According to State Street, the results were driven by having fewer securities on loan and enhanced custody balances and spreads.
Overall, the bank reported an increase of 2 percent in fee revenue in Q4 2019, which it says reflected higher servicing, management and software and processing fees, partially offset by lower foreign exchange trading services and securities finance revenue.
Elsewhere, the Q4 report showed that total assets under custody and/or administration totalled $34.4 trillion, compared to $31.6 trillion Q4 2018. The increase, State Street revealed, was primarily due to higher end of period market levels and client flows, partially offset by a previously announced client transition.
Investment management assets under management as of Q4 2019 increased 24 percent to a record $3.1 trillion primarily due to higher end-of-period market levels and net inflows of $103 billion in 2019.
In its quarterly report, the bank’s showed its securities finance revenue dropped from $120 million in Q4 2018 to $112 million last quarter, representing a 4 percent decrease.
Last year’s Q4 revenue also fell by 8 percent compared to the $116 million achieved in Q3 2019.
According to State Street, the results were driven by having fewer securities on loan and enhanced custody balances and spreads.
Overall, the bank reported an increase of 2 percent in fee revenue in Q4 2019, which it says reflected higher servicing, management and software and processing fees, partially offset by lower foreign exchange trading services and securities finance revenue.
Elsewhere, the Q4 report showed that total assets under custody and/or administration totalled $34.4 trillion, compared to $31.6 trillion Q4 2018. The increase, State Street revealed, was primarily due to higher end of period market levels and client flows, partially offset by a previously announced client transition.
Investment management assets under management as of Q4 2019 increased 24 percent to a record $3.1 trillion primarily due to higher end-of-period market levels and net inflows of $103 billion in 2019.
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