State Street has registered net income of $587m for the second quarter of 2019, a 20% fall from $733m in Q2 last year.
The company’s total revenue for the three-month period ended 30 June 2019 was $2.87bn, down 6% from $3.06bn in the comparable period last year.
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Net interest income fell 7% year-on-year to $613m.
The drop was said to be driven by “lower noninterest-bearing deposit balances and accelerated mortgage backed securities (MBS) premium amortisation from falling long rates”.
Total expenses dropped 1% to $2.15bn from $2.17bn.
The fall in expenses was attributed to the absence of prior year repositioning costs and process re-engineering savings, among others.
The firm’s return on average common equity was 10.1% as of June 2019, versus 14.7% last year.
Assets under management were $2.9 trillion at the end of June 2019, a 7% rise from $2.7 trillion in the previous year.
Assets under custody and administration dipped 3% to $32.7 trillion from $33.8 trillion.
State Street president and CEO Ron O’Hanley said: “We remain laser focused on steps we can immediately take both to improve financial performance and strengthen client service, including enhanced productivity, process re-engineering and greater resource discipline.
“Our 2019 expense programme has delivered $175 million in savings year-to-date and we now expect to achieve a total of $400 million by year-end. On the revenue side, gross client wins were strong with almost $400 billion of new assets.”
