State Street has recorded positive revenue and earnings per share growth across the last quarter of 2013 after winning nearly US$400 million in new asset servicing mandates and earning management fees of nearly US$300 million.
In results released yesterday State Street said it had increased its revenue from US$2.43 billion in the third quarter of 2013 to US$2.46 billion in the fourth quarter, while also lifting its earnings per common share (EPS) from US$1.17 to US$1.22 in the same period.
Return on equity (ROE) for shareholders also increased from 10.8 per cent in the third quarter of 2013 to 10.9 per cent in the fourth quarter, which was also an increase from 9.3 per cent in the fourth quarter of 2012.
The fourth quarter results capped off a positive year of growth for State Street with revenue increasing 2.4 per cent to US$9.88 billion from US$9.65 billion in 2012, while EPS of US$4.62 increased by 10 per cent from US$4.20 in 2012. ROE increased by 10.5 per cent in 2013 from 10.3 per cent in 2012.
State Street also said that it had secured new asset servicing mandates during the fourth quarter of 2013 worth $392 billion, as well as net new assets to be managed worth $5 billion.
As a result of this State Street increased its servicing and management fees, with the former increased 1.7 per cent in the fourth quarter of 2013 to $1.23 billion.
Management fees also increased by 5.1 per cent for the quarter to $290 million, with State Street attributing the growth in both fee areas to stronger global equity markets and net new business.
"Our fourth quarter and full-year results reflect the strength of the core business and our continued focus on our key priorities to deliver value for our clients and shareholders, State Street chair, president and chief executive officer Joseph L. Hooley said.
"2013 was a very good year for State Street despite both the ongoing headwinds created by the low rate environment and the increasing regulatory cost and complexity. Importantly, for the full year, we grew our core asset servicing and asset management fees by almost 10 per cent compared to 2012."
