State Street has reported a net income available to common shareholders of $709m for the third quarter of 2018, an increase of 13% compared to $629m in the previous year.

The company’s total revenue for the quarter ended 30 September 2018 was $2.95bn, up 4% from $2.84bn in the same period last year.

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Net interest income was $672m, a rise of 11% from $603m in the previous year. The company attributed the rise to higher market interest rates in the US and disciplined liability pricing.

Total expenses increased 3% year-on-year to $2.08bn, driven by investments to support new client business.

The firm’s return on average common equity was 14% at the end of September 2018, versus 13% last year. Compared to the previous year, pre-tax margin rose 0.5% points to 29.4%.

State Street’s assets under management totalled $2.8 trillion at the end of September 2018, a 5% rise from $2.6 trillion a year earlier. The company said that the growth was due to strength in equity markets as well as ETF inflows.

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State Street chairman and CEO Joseph Hooley said: “Our third-quarter and year-to-date results reflect solid performance demonstrated by EPS growth of 13% and 24% compared to 3Q17 and the 2017 year-to-date period, respectively. Our new business remains strong as evidenced by $300 billion in new asset servicing commitments in the third quarter and $1.8 trillion year-to-date.

“We continue to digitise our business largely through the Beacon programme to drive efficiencies in core operations while investing in differentiating our data and analytic solutions. These cost savings initiatives will continue for some time, enabling us to calibrate our expenses to the revenue environment, while continuing to deliver strong new business results.”