State Street registers 14% Y/Y rise in FX trading services revenue in Q3 2022
State Street has just posted its financial report for the third quarter of 2022, with revenue from FX trading services marking an increase from the year-ago period.
Foreign exchange trading services revenue increased 14% compared to 3Q21, primarily reflecting higher FX spreads, partially offset by lower client FX volumes. Forex trading services revenue, however, decreased 4% compared to 2Q22, mainly due to lower client FX volumes.
Across all business segments, total fee revenue amounted to $2.3 billion in the third quarter of 2022, down 8% from the year-ago quarter. Total revenue was $2.95 billion, barely changed from a year earlier.
Net income for the third quarter of 2022 was $690 million, down 3% year on year.
Diluted EPS was $1.80, down 8% from the equivalent period a year earlier.
Ron O’Hanley, Chairman and Chief Executive Officer:
“Our third-quarter results reflect the continued strength and resiliency of our business model in an increasingly challenging environment. We delivered strong net interest income growth, which enabled us to partially offset fee revenue headwinds from significantly weaker equity and fixed income markets. Operating expenses were well-controlled, as we carefully manage inflationary pressures, and invest in our people and innovative solutions for our clients, resulting in a healthy pre-tax margin for the quarter.”
O’Hanley concluded: “Our continued strong results generated excess capital, which we are committed to returning to our shareholders as evidenced by our intention to repurchase approximately $1 billion of common stock in the fourth quarter of 2022. This plan for significant share repurchases, coupled with the recently announced 10% per share increase in our quarterly common stock dividend underscores our earnings strength.”