US - The acquisition of Boston-based Investors Financial Services cost global custodian State Street $141m (€99.5m) the company revealed in its Q3 report.
State Streets earnings per share (EPS) for the third quarter are up 10% to $0.91 including the merger costs. On an operating basis, excluding the merger costs, EPS increased to a record level of $1.15, which a 39% increase on last year.
Following the merger in July, State Streets assets under custody rose by 34% to $15.1trn as at September 30, compared to $11.3trn the year before.
Investors Financial assets under custody amounted to around $3trn prior to the $4.5bn acquisition.
Assets under management for State Street Global Advisors (SSGA), the group's asset management arm, increased 22% to $2trn.
Investment management fees generated by SSGA were $299m, up 26% but partly offset by lower performance fees. Over the last year, State Street won $26bn of net new business in asset management.
The area which negatively impacted performance was fixed income investments.
"We're disappointed in the performance of a small number of fixed-income strategies at State Street Global Advisors which performed below our expectation," said Ronald Logue, State Street's chairman and chief executive officer.
He explained that fixed-income markets "experienced unprecedented disruption in this past quarter".