State Street’s Profit Rises 30% on New Business, Market Gains


State Street ended 2021 with $43.68 billion in assets under custody.



Photo:

Scott Eisen/Bloomberg News

State Street Corp.


STT -2.66%

said profit jumped in the fourth quarter, as market gains and new client wins brought in more fees for both its asset-servicing business and its investment-management arm.

Net income rose 30% to $697 million, or $1.78 a share, from $537 million, or $1.39, in the same period a year earlier. Analysts polled by S&P Global Market Intelligence had expected per-share profit of $1.86.

Revenue rose 5% to $3.05 billion; analysts estimated $3 billion. Fee revenue climbed by 4%, to $2.51 billion. Total expenses increased by 2%.

State Street’s shares fell $2.76 to $101.01 Wednesday in early trading. The stock is up nearly 29% in the past year.

Servicing fees, which State Street receives for performing accounting and administrative functions for other money managers, rose 5.9% to $1.38 billion. Management fees, or what the firm is paid to oversee investment funds, climbed 7.5% to $530 million.

For the year, State Street earned $2.69 billion on revenue of $12.03 billion.

State Street ended 2021 with $43.68 billion in assets under custody. Its asset-management division, State Street Global Advisors, manages $4.14 billion in assets.

State Street also said Wednesday that

Cyrus Taraporevala

would retire this year as president and chief executive of the bank’s asset-management business. The company didn’t immediately name Mr. Taraporevala’s successor.

Write to Justin Baer at justin.baer@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8



Read More: State Street’s Profit Rises 30% on New Business, Market Gains

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments