STATE Street, one of the world’s largest institutional investors, reported higher-than-expected quarterly profit yesterday after recent acquisitions helped it earn more in fees.
State Street, which also earns fees for offering services like record-keeping to mutual and hedge funds, said earnings per common share rose to $1.08 (69p) from 66 cents a year ago.
On an operating basis, earnings per share climbed to 86 cents a share from 71 cents, beating analysts’ expectations of 83 cents a share.
The company said it earned 19 per cent more in servicing fees during the third quarter, pushing the total to $989m (£628m). Part of the increase was fuelled by new business, State Street said, noting that it won $477bn in new assets to be serviced.
Chief executive Joseph Hooley said:?“With the support of the two acquisitions, as well as strong year-to-date wins in servicing and growth in passive strategies and ETFs in asset management, we continue to expect that our operating-basis earnings per share, which exclude discount accretion, will be slightly above the adjusted operating-basis $3.32 per share recorded last year.”
City A.M. Reporter