(Reuters) -State Street reported an 18% rise in third-quarter profit on Friday, benefiting from higher fees as soaring markets boosted the value of the custodian bank’s assets.
Easing interest rates and AI-fueled bullish sentiments propelled major U.S. indices to multiple record highs during the quarter, lifting the value of State Street’s assets.
The bank’s assets under custody and administration rose 10% to a record $51.7 trillion in the three months ended September 30 from a year earlier.
Its total fee revenue, most of which it earns as a percentage of assets, climbed 9% to $3.55 billion.
State Street’s servicing fees rose 7.2% to $1.36 billion in the quarter, while its management fees jumped 16.1%.
It reported a profit of $861 million, or $2.78 per share, up from $730 million or $2.26 per share a year earlier.
The results mirror that of larger peer BNY, which also reported a higher profit on Thursday, helped by fee growth.
State Street’s expenses, however, rose 5.5% to $2.43 billion in the quarter, as the company spent $517 million on information systems and communications, up 11.7% from the year-ago period.
Shares of the company fell 3% in premarket trading.
(Reporting by Ateev Bhandari in Bengaluru; Editing by Shinjini Ganguli)
Comments