State Street, a US-based asset manager, has reported a net income of $704m for Q4 2019. This is a 61% jump from $437m in the same quarter of 2018.
The firm’s total revenue for the quarter ended 31 December 2019 was $3.05bn, up 1% from $3.02bn last year.
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Net interest income fell 9% to $636m from $697m. The decline was said to be driven by “lower market rates and mix shift from noninterest bearing to interest-bearing deposits”.
Total expenses dropped 9% year-on-year to $2.27bn. This was said to be mainly due to automation and resource discipline.
The firm’s assets under management as of 31 December 2019 were $3.11trn, a 24% surge from $2.51trn in the previous year.
Assets under custody and/or administration were $34.36trn at the end of December 2019, a 9% rise from $31.62trn a year ago.
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By GlobalDataState Street chairman and CEO Ron O’Hanley said: “2019 began with significant industry challenges, including market weakness and increased pricing pressure. We acted aggressively to offset these headwinds, improve value to clients, stabilise revenues and reduce expenses.
“As a result, we realised approximately $415m in expense savings, enhanced client service through the establishment of our new coverage model and continued to build our front-to-back Alpha platform, which is producing results for our clients and for State Street.
“We were also able to deliver a total capital payout of 108% to our shareholders.”
