State Street Saw 14% Yearly Increase in Q3 FX Trading Services Revenues

Boston-headquartered State Street Corporation has published its financial results for the third quarter of 2022, which ended on September 30, reporting a year-over-year decline of 8 percent in total fee revenue.

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The company generated $2.29 billion fee revenue in the three months. The decrease largely reflected lower average market levels, as well as the impact of currency translation, partially offset by higher FX trading services revenue.

Specifically, FX trading services increased 14 percent compared to Q3 2021, primarily reflecting higher FX spreads, partially offset by lower client FX volumes. Foreign exchange trading services decreased 4% compared to 2Q22, mainly due to lower client FX volumes.

The net income of the company for the quarter stood at $690 million, which is down from $714 million for the previous year. In addition, the diluted earnings per share (EPS) came in at $1.80, which is 8 percent lower than Q3 of 2021.

In 3Q22, State Street returned a total of $232 million of capital to shareholders through declared common dividends of $0.63 per share.

Ron O'Hanley, Chairman and Chief Executive Officer: "Our third-quarter results reflect the continued strength and resiliency of our business model in an increasingly challenging environment. We delivered strong net interest income growth, which enabled us to partially offset fee revenue headwinds from significantly weaker equity and fixed income markets. Operating expenses were well-controlled, as we carefully manage inflationary pressures, and invest in our people and innovative solutions for our clients, resulting in a healthy pre-tax margin for the quarter."