State Street reports lacklustre Q3 securities finance revenue
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State Street reports lacklustre Q3 securities finance revenue 20 October 2020New York Reporter: Drew Nicol
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State Street’s Q3 securities finance revenue decreased 28 percent compared to the same period the previous year.
Revenue reached $84 million for Q3, down from $116 million in the comparable period in 2019.
The bank primarily attributes the drop off to lower balances and spreads.
Securities finance revenue also declined 9 percent compared to Q2 when it earned $92 million, mainly driven by lower agency reinvestment rates.
The previous quarter also marks the third consecutive quarter the bank has failed to break into triple digits for revenue; a benchmark it had previously surpassed in every quarter since 2014.
DataLend figures shows that global lender-to-broker revenue suffered a 17 percent YoY decrease from the $2.13 billion generated for lenders in Q3 2019.
Year-to-date, lender-to-broker revenue has totalled $5.67 billion, a 14.7 percent decrease over the $6.65 billion generated for lenders in the first three quarters of 2019.
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