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Cost cuts aid State Street profit
GLOBAL custody bank State Street yesterday reported a strong rise in profits despite falling revenues, as it kept a tight cap on expenses.
Profits hit $654m (£406m), up 20 per cent from $543m in the same quarter of last year. Revenues slid 2.9 per cent, coming in at $2.36bn, down from the $2.43bn a year ago.
Much of that came in foreign exchange trading where revenues plunged 44 per cent to $115m.
But expenses fell 20 per cent to $1.42bn, in part thanks to a $600m savings plan which includes cutting the compensation ratio to 39 per cent – something which was achieved this quarter.
The bank returned capital to shareholders with a $480m stock buyback in the quarter.