State Street Posts 3.8% Yearly Jump in Q1 FX Trading Services Revenues

Boston-headquartered State Street Corporation has published its financial results for the first quarter of 2022, which ended on March 31, reporting a year-over-year surge of 4 percent in total fee revenue. The company generated $2.57 billion fee revenue in the three months.

Specifically, foreign exchange trading services increased 3.8 percent compared to Q1 2021, primarily driven by higher FX volatility, partially offset by lower client FX volumes. Foreign exchange trading services increased 20% compared to 4Q21, primarily reflecting higher FX volatility and client FX volumes.

The net income of the company for the quarter stood at $604million, which is up from $519 million for the previous year. In addition, the diluted earnings per share (EPS) came in at $1.57, which is 15 percent higher than Q1 of 2021.

In 1Q22, State Street returned a total of $209 million of capital to shareholders through declared common dividends of $0.57 per share.

Ron O'Hanley, Chairman and Chief Executive Officer said:"Our first-quarter results demonstrate the strength, diversity and durability of our business model. Year-over-year revenue growth was driven by continued momentum in front office solutions and asset management, as well as a strong quarter in FX trading, while the higher interest rate environment began to benefit net interest income. These revenue results combined with disciplined expense management generated positive operating leverage and year-over-year pre-tax margin expansion and earnings growth."