State Street, Bank of New York Mellon Report Declining Profit
Custody banks grow assets, but see revenue and earnings slip. The bank grew its assets under management by 8.5% to $2 trillion.“I... Custodian banks State Street Corp. and Bank of New York Mellon Corp. on Friday posted lower profit in the third quarter, though assets under management rose at both firms. State Street profit was down about 4.8% to $555 million from $583 million. “Though persistent low rates depressed net interest income during the quarter, deposit levels remain strong, allowing us to lend more to our clients and reinvest in our investment portfolio,” said Ron O’Hanley, chairman and chief executive officer, in a release. Even before the pandemic, custodial banks struggled with a low interest rates environment and its impact on interest-earning assets.