State Street’s profit rises 30% on new business, market gains
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1 min read . Updated: 19 Jan 2022, 08:33 PM IST - Fourth-quarter net income rose to $697 million, or $1.78 a share
State Street Corp. said profit jumped in the fourth quarter, as market gains and new client wins brought in more fees for both its asset-servicing business and its investment-management arm.
Net income rose 30% to $697 million, or $1.78 a share, from $537 million, or $1.39, in the same period a year earlier. Analysts polled by S&P Global Market Intelligence had expected per-share profit of $1.86.
Revenue rose 5% to $3.05 billion; analysts estimated $3 billion. Fee revenue climbed by 4%, to $2.51 billion. Total expenses increased by 2%.
State Street’s shares fell $2.76 to $101.01 Wednesday in early trading. The stock is up nearly 29% in the past year.
Servicing fees, which State Street receives for performing accounting and administrative functions for other money managers, rose 5.9% to $1.38 billion. Management fees, or what the firm is paid to oversee investment funds, climbed 7.5% to $530 million.
For the year, State Street earned $2.69 billion on revenue of $12.03 billion.
State Street ended 2021 with $43.68 billion in assets under custody. Its asset-management division, State Street Global Advisors, manages $4.14 billion in assets.
State Street also said Wednesday that Cyrus Taraporevala would retire this year as president and chief executive of the bank’s asset-management business. The company didn’t immediately name Mr. Taraporevala’s successor.
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This story has been published from a wire agency feed without modifications to the text
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