First-quarter profits at State Street got a big boost from new agreements to service more than $100 billion of assets.
Profit at the $237 billion-asset company rose 40% year over year to $446 million. Earnings per share of $1.15 were a nickel better than the average estimate of analysts compiled by FactSet Research Systems.
Assets under custody and administration rose 11% to $29.8 trillion, including the $110 billion of new asset-servicing business won in the quarter. Meanwhile, assets under management increased 11% to $2.6 trillion.
The sharp increase in assets under custody and administration “reflect[ed] stronger markets, improved client flows and the contribution of new business wins over the past year,” Chairman and CEO Joseph Hooley said in a news release Wednesday.
Fee revenue rose 12% to $2.2 billion. Servicing fees rose 4% to $1.3 billion due to the new agreements.
Management fees rose 42% to $382 million because of $71 million obtained through the
Processing fees more than doubled to $112 million on a $30 million gain from the sale of State Street’s stake in the
Net interest income was little changed at $510 million as higher interest rates were offset by lower-interest earning assets.
Noninterest expense rose 2% to $2.1 billion on higher compensation and employee benefits.
