(Reuters) – State Street reported a rise in fourth-quarter profit on Friday, boosted by an increase in fees earned from managing client assets, and also announced the appointment of Mark R. Keating as interim CFO.
Keating will take over from Eric Aboaf, who is set to leave the company in February and will join S&P Global as its finance chief.
Investor sentiment improved on expectations of lower corporate taxes and deregulation under U.S. President-elect Donald Trump, sparking a market rally and boosting State Street’s assets under management and the corresponding fees.
State Street, which services and manages investments for high-net-worth clients that include governments, institutions and investment companies, posted a total revenue of $3.41 billion in the fourth quarter, compared with $3.04 billion a year earlier.
The custodian bank’s AUM rose 15% to $4.72 trillion and it earned fee revenue of $2.66 billion in the quarter, up from $2.37 billion a year earlier.
It reported a profit of $783 million, or $2.46 per share, for the quarter, up from $210 million, or 55 cents, a year earlier.
Close rival BNY had also reported a jump in its fourth-quarter profit earlier this week, as it earned higher investment services fees from its clients.
State Street’s net interest income – the difference between what it earns on assets and pays out on liabilities – jumped 10% to $749 million.
It forecast 2025 fee revenue to grow between 3% and 5%, but expects NII to be roughly flat in 2025.
The bank’s shares gained nearly 26.7% in 2024, compared with a 47.6% rise in BNY.
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Vijay Kishore and Krishna Chandra Eluri)
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