Europe the driver for State Street, says CEO
UK – State Street Corp. is seeing its most dramatic growth in Europe, says chairman and chief executive Ron Logue.
He told a gathering for journalists last night that the Boston-based bank’s business in Europe was growing three times as fast as in its home market. The company has around 4,500 employees in Europe.
Logue hailed the success of the bank’s $1.5bn acquisition of Deutsche Bank’s custody business in 2003, adding that it was now almost completely integrated. Other executives said that 88% of the unit’s revenues had been retained, compared to a target of 90%. Logue said the acquisition had given State Street scale and name recognition in Europe.
And he told IPE that any further acquisitions would have to involve cross-border assets - as “that’s where we make our money”. Logue has been on a ‘world tour’ talking to analysts and investors.
Paul Duncombe, the new managing director at the UK arm of asset manager State Street Global Advisors, said there wouldn’t be any shift in strategic direction at the division.
And he said that former UK MD Nigel Wightman hadn’t yet found another position after his departure in March.
It also emerged that the bank’s equity flow research now has 50 clients worldwide and that Jeremy Armitage has transferred from Cambridge, Massachusetts to help with this effort. It also hoped to launch a fixed income version of this product at some stage.