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.
“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.