In announcing today's financial results, Joseph L. Hooley, State Street's chairman, president and chief executive officer, said, "Our third-quarter results demonstrated good growth in asset servicing and asset management fees, which together were up 9 percent from the third quarter of 2013, reflecting improved equity markets and new business. Our market-driven revenues also performed well in a traditionally seasonally slow quarter. We won new business commitments of $302 billion of assets to be serviced and had $3 billion of net new assets to be managed during the quarter demonstrating the continued strength of our business."
"Despite the current challenges we face from low interest rates, we have leveraged our strong market positions and capabilities to generate profitable top-line growth."
"We continue to prioritize the return of capital to our shareholders. During the third quarter of 2014, we purchased approximately $410 million of our common stock and ended the third quarter with approximately $880 million remaining under our March 2014 common stock purchase program authorizing the purchase of up to $1.7 billion of our common stock through March 31,2015. We also declared a common stock dividend during the quarter of $0.30 per share."
Third-Quarter 2014 Highlights
- Total operating-basis revenue increased slightly from the second quarter of 2014 despite the second quarter benefit from seasonality within securities finance.
- New business New asset servicing mandates during the third quarter of 2014 totaled $302 billion and net new assets to be managed were $3 billion.
- Business Operations and Information Technology Transformation program3 remains on track to achieve $575 million to $625 million in annualized pre-tax expense savings by 2015.
- Capital Our tier 1 common ratio as of September 30, 2014, calculated under the advanced approaches in conformity with the Basel III final rule, was 12.7%. Our estimated pro forma Basel III tier 1 common ratio as of September 30, 2014, calculated under the standardized approach in conformity with the Basel III final rule, was 10.9%.
- Return of capital to shareholders Purchased approximately $410 million of our common stock at an average price of $70.61 per share and declared a quarterly common stock dividend of $0.30 per share in the third quarter of 2014.
See attached for further details