State Street Posts 3% Yearly Jump in Q3 FX Trading Services Revenues

Boston-headquartered State Street Corporation has published its financial results for the third quarter of 2021, which ended on September 30, reporting a healthy year-over-year surge of 9 percent in total fee revenue. The company generated $2.5 billion fee revenue in the three months.

Specifically, foreign exchange trading services increased 3percent compared to 3Q20, reflecting higher direct sales and trading revenue and indirect volumes, partially offset by lower FX volatility. Compared to 2Q21, foreign exchange trading services decreased 2percent, mainly due to seasonally lower client FX volumes and indirect spreads.

The net income of the company for the quarter stood at $714 million, which is up from $555 million for the previous year. In addition, the diluted earnings per share (EPS) came in at $1.96, which is 35 percent higher than Q3 of 2020.

In 3Q21, State Street returned a total of $179 million of capital to shareholders in the form of common stock dividends paid. The company declared a 10% increase to 3Q21 quarterly common stock dividends payable in 4Q21.

“As we continued to execute against our strategic priorities, our team delivered yet another strong set of results in the third quarter across our business and made measurable progress towards our recently enhanced medium-term financial targets,”Ron O'Hanley, Chairman and Chief Executive Officer commented.

This week, State Street Corporation announced that it will provide custody services to the Digital Securities Depository Corporation (DSDC)​.