State Street witnessed income from its foreign exchange trading unit rocket by more than a third in the last quarter of 2014, compared to the previous year, it announced today.
The company said foreign exchange trading revenue stood at $168 million for the quarter, up by 34.4% from the $125 million declared in the same quarter of 2013 and up 4.3% from the previous quarter.
In its statement to investors, State Street acknowledged that the increase in revenue from the foreign exchange unit was largely the result of increased volumes and market volatility.
The trading services unit as a whole also enjoyed a stellar quarter, with income up by almost a quarter year on year.
Brokerage and other fee income stood at $125 million for the fourth quarter of 2014, compared to $111 million for the same quarter a year earlier – a rise of 12.6%.
Some of this was due to the company reclassifying where it declares income from currency management processing fees.
In his statement to market, Joseph Hooley, chairman and chief executive officer at State Street, said: “Our fourth quarter and full year 2014 results reflect strength across asset servicing and asset management businesses.
“Despite the low interest rate environment in 2014, our revenue experienced solid growth compared to 2013 from both asset servicing and asset management.”
State Street also benefitted from an increased number of custody mandates in the fourth quarter. Click here to read more on this on our sister site Global Custodian.