US financial services firm State Street has recorded a 36% increase in net interest income (NII) during the third quarter of 2022 to $660m from $487m during the year-ago period.
The rise in NII was attributed to higher short-term interest rates from the US and international central bank rate hikes.
Go deeper with GlobalData
Total revenue saw a marginal decline of 1% year-on-year (YoY) from $2.99bn to $2.95bn during the quarter that ended on 30 September 2022.
Total fee revenues during the period under review fell 8.2% to $2.30bn. The fall was attributed to a decline in servicing fees and management fees.
Diluted earnings per share in Q3 2022 dropped by 8% to $1.8 from $1.91 during the year-ago period.
The total assets under custody and administration (AUC/A) at the end of the third quarter plummeted 17.7% YoY to $25.7 trillion.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe decline was triggered by lower equity and fixed-income market levels, previously disclosed client transition and unfavourable currency translation.
It was partially offset by net new businesses.
The assets under management (AUM) were down 15.5% to $3.3 trillion, reflecting lower equity and fixed-income market levels and institutional net outflows that were partially offset by ETF and cash net inflows.
The third quarter of 2022 also saw the announcement of $233bn of investment servicing mandates.
In the next quarter, State Street intends to repurchase approximately $1bn of common stock.
State Street chairman and CEO Ron O’Hanley said: ” We delivered strong net interest income growth, which enabled us to partially offset fee revenue headwinds from significantly weaker equity and fixed income markets.
“Operating expenses were well-controlled, as we carefully manage inflationary pressures, and invest in our people and innovative solutions for our clients, resulting in a healthy pre-tax margin for the quarter.
“Our continued strong results generated excess capital, which we are committed to returning to our shareholders as evidenced by our intention to repurchase approximately $1bn of common stock in the fourth quarter of 2022. This plan for significant share repurchases, coupled with the recently announced 10% per share increase in our quarterly common stock dividend underscores our earnings strength.”
