State Street has reported a drop in both net income and revenue in Q3 2020 even though it reported a growth in assets.

Key metrics in Q3 2020

The asset manager reported a net income of $555m in the three months to September 2020, a 5% fall from $583m a year ago and a 20% slump from $694m in the previous quarter.

Total revenue dipped 4% to $2.78bn from $2.9bn.

Improving servicing and management fees, stronger Charles River Development revenue along with FX trading services led to a 2% rise in fee revenue.

Net interest income slumped 26% to $478m from $644m, driven by lower market rates.

Total expenses dropped 4% year-on-year to $2.1bn, due to ongoing expense management initiatives.

The firm’s assets under management were $3.15trn at the end of September 2020, up 7% from $2.95trn in the prior year.

Assets under custody and/or administration increased 11% to $36.64trn from $32.9trn.

State Street chairman and CEO Ron O’Hanley said: “These results reflect year-over-year growth in nearly all fee revenue lines and continued advancement of our strategy amid a difficult and complex operating environment.

“Despite the challenges, we achieved strong new business wins, maintained pricing discipline, and saw continued demand for Charles River Development and State Street Alpha, our front-to-back servicing platform, including the signing of a large new client.

“Though persistent low rates depressed net interest income during the quarter, deposit levels remain strong, allowing us to lend more to our clients and reinvest in our investment portfolio. Furthermore, our laser focus on enhancing productivity and reducing expenses continues.”