EUROPE – State Street Corp. says its 1.5 billion-dollar acquisition of Deutsche Bank’s Global Securities Services business last year has been “truly transformational” for its business in Europe.

“The integration of the Global Securities Services business is continuing to run smoothly and is on track with regard to timing and our financial projections,” said State Street president and chief executive David Spina.

He added: “The acquisition of GSS was truly transformational for State Street in strengthening our leadership position in Europe.”

The Boston-based bank said in its first-quarter earnings statement that around 70% of client have been converted and that it expects the conversions “to be substantially complete by the end of 2004”.

Servicing fees rose 27% to 555 million dollars – driven by extra GSS revenue, higher equity prices and “new business from existing and new clients in 2004”. Total assets under custody rose 19% to 9.4 trillion dollars.

State Street reported overall first-quarter net income of 217 million dollars, up from 96 million dollars a year ago. Revenue was 1.2 billion dollars, against one billion dollars.

Investment-management fees generated by asset management arm State Street Global Advisors rose 36% to 147 million dollars. Total assets under management rose 58% to 1.2 trillion dollars from 788 million dollars a year ago.

“We are beginning to see additional large wins in our investment management outsourcing business and our equity executive business is growing at a very encouraging pace,” Spina said. “State Street Global Advisors continues to achieve excellent results.”

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