State Street AUM up 22% but earnings slump
GLOBAL - State Street Corp.'s assets under management have risen 22% to a record, but quarterly earnings have fallen by 58.8%.
The Boston-based company said total assets under management at the end of the fourth quarter were up 22% at a new high of $1.4tn (E1.07bn).
But fourth-quarter net income slipped to $184m from $447m in the prior year quarter. Revenues were down to $1.27bn from $1.51bn. Expenses were up 23% at $980m from $795m a year ago.
Total assets under custody were up one percent at $9.5tn while management fees generated by State Street Global Advisors rose 26% to $167m.
It said the increase in management fees reflected "new business from existing and new clients and higher equity valuations in 2004".
Asset servicing fees were up nine percent at $570m - due to "new business from existing and new clients and higher equity valuations in 2004".
Chairman and chief executive Ronald Logue said there was "strong business growth in both Europe and Asia Pacific" that was fuelled in part by its acquisition of Deutsche Bank's Global Securities Services arm.
"We will continue to balance our objectives for growth with delivering consistency in operating earnings per share in a slow growth environment," Logue said.
"While we may not produce positive operating leverage every quarter, prudent expense management will be a continuing focus."