State Street’s latest financial figures reflect the decline in equity valuations globally, particularly in emerging economies. Combined with the continued low interest rates and the strength in the US dollar, this has negatively impacted revenue, says Joseph L Hooley, chairman and chief executive officer.
“Despite this market environment, we were able to advance our core business, growing operating basis fee revenue by 4 percent and 1 percent compared to the nine months and quarter ended September 30, 2014, respectively, and adding $141 billion of new servicing commitments during the third quarter,” he says. “In addition, consistent with our previously stated objectives, we significantly reduced the level of deposits on our balance sheet during the third quarter.
In light of the continued challenging environment State Street is accelerating the next phase of its transformation programme to create cost efficiencies and to further digitise its interfaces with our clients in order to deliver more value. The aim of its multi-year plan is to generate approximately $500 million in annualised savings when fully implemented and build on its recently completed Business Operations and Information Technology transformation programme that delivered more than $625 million in annualised savings, he adds. In the interim, it continues to focus on driving internal efficiencies, which will result in further staff reductions.