State Street has reported a Q3 2014 operating-basis EPS of USD1.35, up 13.4 per cent, on strong revenue of USD2.7 billion, up 8.5 per cent compared to the third quarter of 2013.
Total operating-basis revenue increased slightly from the second quarter of 2014 despite the second quarter benefit from seasonality within securities finance.
New asset servicing mandates during the third quarter of 2014 totalled USD302 billion and net new assets to be managed were USD3 billion.
State Street’s business operations and information technology transformation programme remains on track to achieve USD575 million to USD625 million in annualised pre-tax expense savings by 2015.
The company’s tier 1 common ratio as of 30 September 2014, calculated under the advanced approaches in conformity with the Basel III final rule, was 12.7 per cent. Estimated pro forma Basel III tier 1 common ratio as of 30 September 2014, calculated under the standardised approach in conformity with the Basel III final rule, was 10.9 per cent.
State Street purchased approximately USD410 million of its common stock during the quarter at an average price of USD70.61 per share.
Joseph L Hooley, State Street's chairman, president and chief executive officer, says: "Our third-quarter results demonstrated good growth in asset servicing and asset management fees, which together were up nine per cent from the third quarter of 2013, reflecting improved equity markets and new business. Our market-driven revenues also performed well in a traditionally seasonally slow quarter. We won new business commitments of USD302 billion of assets to be serviced and had USD3 billion of net new assets to be managed during the quarter demonstrating the continued strength of our business.
"Despite the current challenges we face from low interest rates, we have leveraged our strong market positions and capabilities to generate profitable top-line growth.
"We continue to prioritise the return of capital to our shareholders. During the third quarter of 2014, we purchased approximately USD410 million of our common stock and ended the third quarter with approximately USD880 million remaining under our March 2014 common stock purchase programme authorising the purchase of up to USD1.7 billion of our common stock through 31 March 2015. We also declared a common stock dividend during the quarter of USD0.30 per share."