American financial services provider, State Street recently published its quarterly results for Q2 2022. The company witnessed decent growth across the foreign exchange segment as the FX trading services revenue climbed 16% compared to the same period last year.
The net interest income in the recent quarter jumped approximately 25% YoY. However, total fee revenue dropped 6% in the recent quarter. Revenues related to Servicing fees and Management fees decreased by 7% and 3%, respectively.
According to the details shared by State Street, Investment Management AUM dipped 11% to $3.5 trillion in the second quarter. The drop was mainly driven by negative sentiment across global equity and fixed income markets.
"Our second-quarter results reflect the strength and durability of our business model as strong growth in net interest income and improved FX trading performance enabled us to partially offset significant fee revenue headwinds from weaker equity and fixed income markets. Operating expenses continued to be well-controlled as we remained committed to expense discipline while managing inflationary pressures and investing back into our businesses, resulting in a healthy pre-tax margin for the quarter,” Ron O'Hanley, the Chairman and Chief Executive Officer at State Street, commented.
In April 2022, State Street and Citi participated in the $40 million funding round of FundGuard, an AI-powered SaaS investment management and asset servicing enterprise platform.
Net Income
Compared to the first quarter of 2022, State Street’s net income climbed almost 24%. However, the number decreased marginally compared to the second quarter of 2021.
"Our capital ratios remain strong. The results of the recent supervisory stress test highlighted the strength of our balance sheet and capital position under stress. For the second year in a row, we are pleased to have announced a 10% increase to our common stock dividend, and it remains our intention to reinitiate our existing common share repurchase program in the fourth quarter of 2022,” O'Hanley added.
