The soaring stock market and asset growth fueled revenue growth at State Street in Boston in the third quarter.

The $236 billion-asset company’s net income rose 24% year over year to $629 million. Earnings per share of $1.66 were 5 cents higher than the median of analysts’ estimate compiled by FactSet Research Systems. Total revenue rose 9% to $2.8 billion.

Jay Hooley, Chairman and CEO of State Street.
Internal growth
"New business opportunities remain robust across both the asset-servicing and asset-management businesses,” Chairman and CEO Joseph Hooley said in assessing the custody bank's third quarter.

“We continue to develop new product solutions to support our clients' success, which in turn has helped drive new servicing commitments,” Chairman and CEO Joseph Hooley said in a news release Monday. “Importantly, new business opportunities remain robust across both the asset-servicing and asset-management businesses.”

Fee revenue rose 8% to $2.2 billion. Servicing fees increased 4% to $1.4 billion, and management fees climbed 14% to $419 million.

Assets under custody and administration rose 10% to $32.1 trillion. Assets under management increased 9% to $2.7 trillion. State Street attributed the higher amounts in both categories to strength in equity markets.

Meanwhile, State Street won $105 billion in new asset-servicing business during the quarter. The company reported outflows of $25 billion in asset management.

Net interest income increased 12% to $603 million due to higher interest rates in the U.S., growth in the loan portfolio and reduced levels of certificate of deposits.

Noninterest expense rose 4% to $2 billion on costs related to installing new clients into the company’s systems and higher salaries and employee benefits.

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