State Street's quarterly profit rises; appoints interim CFO
17/01/2025 14:45
Jan 17 (Reuters) - State Street STT.N reported a rise
in fourth-quarter profit on Friday, boosted by an increase in
fees earned from managing client assets, and also announced the
appointment of Mark R. Keating as interim CFO.
Keating will take over from Eric Aboaf, who is set to leave
the company in February and will join S&P Global SPGI.N as its
finance chief.
Investor sentiment improved on expectations of lower
corporate taxes and deregulation under U.S. President-elect
Donald Trump, sparking a market rally and boosting State
Street's assets under management and the corresponding fees.
State Street, which services and manages investments for
high-net-worth clients that include governments, institutions
and investment companies, posted a total revenue of $3.41
billion in the fourth quarter, compared with $3.04 billion a
year earlier.
The custodian bank's AUM rose 15% to $4.72 trillion and it
earned fee revenue of $2.66 billion in the quarter, up from
$2.37 billion a year earlier.
It reported a profit of $783 million, or $2.46 per share,
for the quarter, up from $210 million, or 55 cents, a year
earlier.
Close rival BNY BK.N had also reported a jump in its
fourth-quarter profit earlier this week, as it earned higher
investment services fees from its clients.
State Street's net interest income - the difference between
what it earns on assets and pays out on liabilities - jumped 10%
to $749 million.
It forecast 2025 fee revenue to grow between 3% and 5%, but
expects NII to be roughly flat in 2025.
The bank's shares gained nearly 26.7% in 2024, compared with
a 47.6% rise in BNY.
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Vijay
Kishore and Krishna Chandra Eluri)
((Prakhar.srivastava2@thomsonreuters.com;))