State Street has posted a net income available to common shareholders of $393m for the second quarter of 2015, down 34% compared to $602m in the corresponding quarter of 2014.
Revenue for the second quarter ended 30 June 2015 slightly rose to $2.61bn from $2.60bn in the second quarter of 2014.
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Net interest revenue stood at $535m, a decline of 4.6% from $561m in the second quarter of 2014. Expenses soared 15% to $2.13bn as against $1.85bn a year ago.
The firm’s return on average common shareholders’ equity (ROE) decreased to 8.3% from 11.9% a year earlier.
State Street’s assets under management declined 4.3% to $2.37trn from $2.48trn the same period last year. Assets under custody and administration increased 0.9% to $28.65trn.
The company has increased the money set aside for legal costs associated with indirect foreign exchange business to $585m from $335m as of 30 June 2015.
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By GlobalDataState Street chairman and CEO Joseph Hooley said: "Second-quarter 2015 results reflect the strength of our core business, as evidenced by 4% growth in servicing fees compared to the first quarter of 2015, and also reflect the benefit of seasonal securities finance activity."
"Net interest revenue in the second-quarter of 2015 continued to experience pressure as a result of the ongoing low interest rate environment. Year-to-date we remain on track for the growth rate of operating-basis fee revenue to exceed the growth rate of operating-basis expenses by at least 200 basis points in 2015."
"During the second quarter of 2015, we purchased approximately $350 million of our common stock and at quarter end had approximately $1.45 billion remaining on our March 2015 common stock purchase program, authorizing the purchase of up to $1.8 billion of our common stock through June 30, 2016. We also increased our quarterly common stock dividend to $0.34 per share starting in the second quarter of 2015."
