State Street sees net income slump
July 19, 2019

State Street has just announced its second quarter 2019 results, which show net income down 19.9 percent on a year earlier as total revenue fell by 6.1 percent, reflecting lower servicing, management and markets revenues.

Ron O'Hanley, President and Chief Executive Officer, says: "State Street is acting with urgency to adjust to a challenging external environment. We remain laser focussed on steps we can immediately take both to improve financial performance and strengthen client service, including enhanced productivity, process re-engineering and greater resource discipline.

"Our 2019 expense programme has delivered US$175 million in savings year-to-date and we now expect to achieve a total of $400 million by year-end. On the revenue side, gross client wins were strong with almost $400 billion of new assets.

"I am encouraged by the continued momentum with Charles River Development, both in terms of new business on its platform but also due to the depth of the discussions we are having with a range of clients on adopting our leading front-to-back platform.

"We saw some moderation in industry headwinds and more stable fee revenues as we actively and systematically engage with clients. Moreover, our CCAR results were encouraging, confirming the effectiveness of our balance sheet repositioning last year and allowing us to increase capital return to shareholders."





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State Street has just announced its second quarter 2019 results, which show net income down 19.9 percent on a year earlier as total revenue fell by 6.1 percent, reflecting lower servicing, management and markets revenues.

Ron O'Hanley, President and Chief Executive Officer, says: "State Street is acting with urgency to adjust to a challenging external environment. We remain laser focussed on steps we can immediately take both to improve financial performance and strengthen client service, including enhanced productivity, process re-engineering and greater resource discipline.

"Our 2019 expense programme has delivered US$175 million in savings year-to-date and we now expect to achieve a total of $400 million by year-end. On the revenue side, gross client wins were strong with almost $400 billion of new assets.

"I am encouraged by the continued momentum with Charles River Development, both in terms of new business on its platform but also due to the depth of the discussions we are having with a range of clients on adopting our leading front-to-back platform.

"We saw some moderation in industry headwinds and more stable fee revenues as we actively and systematically engage with clients. Moreover, our CCAR results were encouraging, confirming the effectiveness of our balance sheet repositioning last year and allowing us to increase capital return to shareholders."



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