State Street profit beats estimates as fee income, assets under management rise By Reuters

(Reuters) – State Street (NYSE:) beat analysts’ estimates for third-quarter profit on Wednesday, helped by a rise in fee income and assets under management at the custodian bank.

Global equity markets have rebounded this year after a downbeat 2022, helping boost the value of investments at banks and asset managers.

Peer Bank of New York Mellon (NYSE:) Corp also surpassed estimates for quarterly profit on Tuesday benefiting from higher income from loans.

State Street shares, down about 13% this year as of last close, rose 3.8% in morning trading after the results.

The bank’s assets under custody or administration rose 12% to $40.0 trillion, primarily reflecting higher market values of holdings and increased client inflows, while investment assets under management rose 13% from last year.

Total fee income rose 2.7% to $2.36 billion from a year earlier.

Adjusted profit came in at $1.93 per share for the three months ended in Sept. 30, beating analysts’ average estimate of $1.81 per share, according to LSEG data.

“We intend to continue to execute on our common share repurchase authorization of up to $4.5 billion during 2023, subject to market conditions and other factors,” CEO Ron O’Hanley said in a statement.

The bank saw a 5.5% decrease in its net interest income (NII), in contrast with BNY Mellon which saw a 10% increase NII.

Net income fell 39% to $422 million in the third quarter, from a year earlier, while total revenue fell 9% to $2.69 billion.

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