Skip to main content
MENU
Subscribe
  • Subscribe
  • Account
  • LOGIN
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE Act 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2022 Innovation Investing Conference
    • 2022 Defined Contribution East Conference
    • 2022 ESG Investing Conference
    • 2022 DC Investment Lineup Conference
    • 2022 Alternatives Investing Conference
Breadcrumb
  1. Home
  2. ASSET SERVICING
August 04, 2014 01:00 AM

Markets, new business boost banks' asset-servicing revenue

Rick Baert
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    Higher market values and increased mandates were cited by the largest publicly traded banks for the rise in assets under custody and in asset servicing revenues in the second quarter, according to their latest quarterly earnings statements.

    The top two banks in terms of assets under custody and administration — Bank of New York Mellon Corp., with $28.5 trillion, and State Street Corp., with $28.4 trillion — retained their positions from the previous quarter. New York-based BNY Mellon was up 2% from the first quarter and 9% above the second quarter of 2013, while Boston-based State Street rose 3.4% from March 31 and jumped 10.3% from June 30, 2013.

    BNY Mellon cited higher market values for the gains in both periods, while State Street attributed its second-quarter increase to $250 billion in new custody business.

    J.P. Morgan Chase & Co., New York, reported $21.7 trillion in assets under custody at the end of the second quarter, up 2% from three months earlier and up 14% from June 30, 2013. Northern Trust Corp., Chicago, said its corporate and institutional assets under custody totaled $5.48 trillion as of June 30, up 5% from three months earlier and 21% from a year earlier.

    For BNY Mellon, State Street and Northern Trust, the latest percentage gains in assets under custody were slightly better than the first quarter, when BNY Mellon’s AUC rose 1%, State Street edged up 0.2% and Northern Trust rose 3.2%. J.P. Morgan’s second-quarter increase was a percentage point below its 3% rise in the first quarter.

    The banks’ second-quarter revenue from asset servicing saw percentage increases in the low single digits, with somewhat larger year-over-year gains, all attributed to new business and higher securities lending and cash management fees.

    State Street had the highest revenue from its asset servicing business, at $1.29 billion for the three months ended June 30, up 4% from the first quarter and up 7.2% from the quarter ended June 30, 2013. J.P. Morgan Chase had securities services revenue of $1.1 billion, up 1% from the first quarter and 5% higher than the prior year; BNY Mellon reported fees of $1.02 billion, up 1.2% for the quarter and 3.4% from a year earlier; and Northern Trust had custody and fund administration fees totaling $261.1 million, up 3.6% from the first quarter and 11.4% from the second quarter 2013.

    Citigroup Inc. no longer breaks out its assets under custody and asset servicing revenue in its quarterly statement, said Nina Das, spokeswoman. Citigroup reported AUC of $14.7 trillion in the first quarter.

    In a note to clients issued July 27, Robert Lee, equity research analyst at Keefe, Bruyette & Woods in New York, warned that third-quarter results related to banks’ trust and custody businesses are expected to be reduced as a result of a seasonal slowdown “and as tailwinds of rising asset values potentially dissipate. Low rates, moderate investor engagement, and low FX volatility continued to be a drag.”

    Related Articles
    Custodians see slide in securities lending revenue
    Custody banks experience similar revenue trends
    Assets, revenue continue to increase at custody banks
    J.P. Morgan promotes new head of global custody
    Custody banks report gains from year-earlier figures; State Street tops in size
    Recommended for You
    Krishna Prasad
    Apex Group appoints its first head of U.S.
    Jesse Cole
    State Street names global head of private markets in asset-servicing unit
    State Street's BBH acquisition puts it at top
    State Street's BBH acquisition puts it at top
    OCIO, Anchor in Rough Seas
    Sponsored Content: OCIO, Anchor in Rough Seas

    Reader Poll

    May 23, 2022
    SEE MORE POLLS >
    Sponsored
    White Papers
    Crossroads: Politics, Inflation, & Bonds
    Credit Indices: Closing the Fixed Income Evolutionary Gap
    Forever in Style: Benchmarking with the Morningstar® Broad Style Indexes℠
    Q2 2022 Credit Outlook: Carry On
    Leverage does not equal risk
    Is there a mid-cap gap in your DC plan?
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    May 23, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE Act 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2022 Innovation Investing Conference
      • 2022 Defined Contribution East Conference
      • 2022 ESG Investing Conference
      • 2022 DC Investment Lineup Conference
      • 2022 Alternatives Investing Conference