State Street has registered a net income of $583m for the third quarter (Q3) of 2019, a 24% plunge from $764m in Q3 of last year.
The company’s total revenue in the three-month period ended 30 September 2019 was $2.9bn, down 3% from $2.99bn in the corresponding quarter last year.
The American asset manager’s net interest income dropped 4% to $644m on a year-on-year basis.
State Street attributed the fall to “lower long-end rates and MBS premium amortisation, as well as mix shift away from non-interest bearing deposits”.
Total expenses amounted to $2.18bn, a 4% increase from $2.09bn a year ago due to the impact of expenses related to Charles River Development (CRD) that was acquired by State Street in a $2.6bn deal.
However, State Street’s assets under management totalled $2.95 trillion at the end of September 2019, a 5% increase from $2.81 trillion a year ago.
The company said that the growth was driven by net inflows of $59bn which includes institutional, cash and ETF inflows.
State Street president and CEO Ron O’Hanley said: “We are encouraged by the continued stabilisation in servicing fees seen in the third quarter and believe the actions we’ve taken to date, including the upgrade of our client coverage programme, improved client service results, and strengthened pricing discipline are having an impact.
“Despite an uncertain revenue environment, we saw sequential fee revenue growth in FX trading services in our Global Markets business and strong NII.
“Our strong performance under the 2019 CCAR stress test allowed us to increase our quarterly dividend by 11% from 2Q19 and boost our total capital return to shareholders.”