State Street posts higher third-quarter profit; CFO to step down
Adds S&P Global announcement in paragraph 3
Oct 15 (Reuters) -State Street STT.N reported a higher third-quarter profit on Tuesday, boosted by an increase in fees earned from managing client assets and said the custodian bank's finance chief, Eric Aboaf, is set to step down in February 2025.
Aboaf had joined State Street in 2016 from Citizens Financial Group CFG.N, where he also served as its CFO.
Financial information company S&P Global SPGI.N said Aboaf will join the firm as CFO after his tenure at State Street ends.
State Street, which services and manages investments for high-net-worth clients that include governments, institutions and investment companies, did not name a replacement for Aboaf, but said it had commenced a succession plan.
The custodian bank's fee revenue in the quarter was $2.62 billion, up from $2.36 billion a year earlier, which helped the bank record revenue growth of 21%.
State Street's assets under management (AUM) rose 29% from a year earlier to $4.73 trillion on the back of a rally in equity markets spurred by economic resilience and expectations of rate cuts by the Federal Reserve.
The benchmark S&P 500 index .SPX was up 5.5% in the three months ended Sept. 30.
The bank's assets under custody and management climbed 17% from a year earlier to $46.76 trillion.
State Street reported a profit of $730 million, or $2.26 per share, for the quarter, up from $422 million, or $1.25 per share, a year earlier.
Peer BNY BK.N beat third-quarter profit estimates last week on the back of strong investment service fees.
State Street's shares, which rose 1.7%in premarket trading, have gained nearly 17% in 2024, compared with an about 48% rise in BNY.
Reporting by Pritam Biswas in Bengaluru; Editing by Krishna Chandra Eluri, Shilpi Majumdar and Maju Samuel
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