State Street's Q3 revenue rises 13%, slightly misses estimates
STT•State Street's third-quarter revenue rose 13% year over year to $4.004 billion, slightly below the $4.03 billion estimate. Net interest income was $864 million, above the $852.89 million estimate.
1. Quarterly results
State Street reported third-quarter net income of $1.09 billion and earnings per share of $3.69. Net interest income was $864 million, beating the $852.89 million estimate, while the credit loss provision was negative $4 million and return on equity was 16.4%.
2. Revenue drivers
The company said record servicing and management fees and record foreign exchange client volumes drove results. Higher revenue from servicing, management and FX trading services contributed to the increase in fee revenue, partly offset by lower other fee revenue. Higher net interest income, supported by an increased net interest margin, also contributed to revenue growth.
3. Future servicing revenue
State Street has $332 million in servicing fee revenue and $2.98 trillion in assets under custody and administration wins to be installed in future periods.
