State Street Is Worth Keeping An Eye On
Jul. 24, 2015, 7:04 AM
- State Street (NYSE:STT): Q2 EPS of $1.37 in-line.
- Revenue of $2.73B (+1.9% Y/Y) in-line.
Jul. 23, 2015, 5:30 PM
Jul. 20, 2015, 2:55 PM
- JPMorgan (JPM +0.4%) faces the largest capital "surcharge" or 4.5% of its risk-weighted assets, with the other seven lenders falling in the 1-3.5% range.
- Citigroup's (NYSE:C) surcharge is 3.5%, BofA (NYSE:BAC), Goldman Sachs (NYSE:GS), and Morgan Stanley (NYSE:MS) 3%, Wells Fargo (NYSE:WFC) 2%, State Street (NYSE:STT) 1.5%, and Bank of New York Mellon (NYSE:BK) 1%. Taken together, the group's capital cushion will more than $200B larger than if the surcharge was not implemented.
- The surcharges will begin to be implemented on January 1, and fully phased in by January 2019. JPMorgan has taken steps to boost its capital levels, and Fed officials indicate the bank is about $12.5B shy of the full surcharge, reports the WSJ.
- The other lenders currently have the necessary capital.
- This new requirement comes on top of the existing base 7% common-equity capital standard necessary for most banks.
Jul. 6, 2015, 4:41 PM
- Last year, the Fed and FDIC found most of wind-down plans submitted by twelve of the largest U.S. banks (or U.S. units of overseas banks) had numerous deficiencies, and sent the lenders back to the drawing board.
- The two government agencies today posted public sections of the latest versions of the living wills, and said they will begin reviewing. Feedback is expected before year-end.
- The lucky 12: BAC, BK, C, GS, JPM, MS, STT, UBS, WFC, BCS, CS, DB.
Jun. 18, 2015, 4:57 PM
- State Street (NYSE:STT) discloses receipt of a Wells notice from the SEC, informing it of a potential enforcement action.
- STT says the notice relates to a probe into its solicitation of asset servicing business for public retirement plans and the use of consultants and lobbyists to drum up business from two specific clients, including political contributions by a consultant during and after a public bidding process.
Jun. 10, 2015, 3:18 PM
- The SPDR Euro Stoxx 50 Currency Hedged ETF (Pending:HFEZ) is the cousin to State Street's (NYSE:STT) $5B SPDR Euro Stoxx ETF (NYSEARCA:FEZ).
- For now, including a fee waiver, State Street's offering has an expense ratio of 0.32% (slated to rise to 0.61% in 18 months) versus WisdomTree's (NASDAQ:WETF) industry leader, the WisdomTree Europe Hedged Equity Fund (NYSEARCA:HEDJ) at 0.58%, the iShares Currency Hedged MSCI EMU ETF (NYSEARCA:HEZU) at 0.51%, and Deutsche's X-trackers MSCI Europe Hedged Equity ETF (NYSEARCA:DBEU) at 0.45%.
- Source: Barron's
May 20, 2015, 4:25 PM
- State Street (NYSE:STT) declares $0.34/share quarterly dividend, in line with previous.
- Forward yield 1.72%
- Payable July 16; for shareholders of record July 1; ex-div June 29.
May 13, 2015, 12:02 PM
- Vanguard Group, Guggenheim Investments, and First Trust are among U.S. ETF providers lining up bank credit lines or expanding existing ones in order to meet a rash of redemptions in some future market panic, writes Ashley Lau and Michael Flaherty.
- At issue are ETFs in less liquid corners of the fixed-income world - bank loans (also known as senior or leveraged loans) and high-yield come to mind.
- State Street (NYSE:STT) and Invesco's (NYSE:IVZ) PowerShares have credit lines for their respective senior loan ETFs (SRLN, BKLN, VVR), with SRLN having exclusive access to $100M of the $300M total credit facility State Street has in place.
- BlackRock (NYSE:BLK) hasn't opened any lines for its bond funds as it doesn't trade in these less liquid areas, but it has opened a line for some its emerging market stock ETFs.
- Senior loan ETFs: BKLN, OXLC, PPR, EFR, VVR, PHD, SRLN, NSL, BGB, BGX, FCT, SNLN, EVF, ECC, AFT, BSL, TSLF, FTSL, TLI, BHL
May 8, 2015, 2:26 PM
- Assets in global ETPs rose to $2.998T in April, according to ETFGI, just shy of the $3T the group predicted would be hit by the middle of this year. U.S. ETP assets of $2.132T are also at a record level.
- Net inflows in April were $10.6B, with fixed-income products garnering nearly all of that amount. Equity inflows were $1.8B, and commodities saw outflows of $1.1B. Vanguard garnered the most amount in April with $8.1B, followed by Deutsche at $5.9B, and WisdomTree (NASDAQ:WETF) with $4.1B - a pretty fair market share for such a relatively small player. Not making the top 3 were BlackRock's (NYSE:BLK) iShares, nor State Street's (NYSE:STT) SPDRs.
- Year-to-date, ETPs have seen net inflows of $108.8B.
Apr. 24, 2015, 2:35 PM
- Asset managers are under pressure from regulators to "stress test" their portfolios against a bond market rout, says State Street (STT -2.5%) CEO Jay Hooley, speaking after his company reported earnings this morning. As a result, those asset managers are building up excess deposits at the bank - and that's money State Street can't earn a whole lot on.
- Excess deposits at State Street rose to $54B at the end of Q1 vs. $52B three months earlier, even as the bank tried to discourage growth by introducing some fees. “The irony is that an asset manager’s excess liquidity ends up being our excess deposits,” says Hooley.
- “It is early days and the stress testing process is maturing,” says Hooley. “The more sophisticated the process, the more refined the outcomes.” In other words, Hooley is hopeful managers will find a different way to cut risk other than moving to cash.
- Source: FT
- Previously: Margins squeezed, but fee revenue gains at State Street (April 24)
Apr. 24, 2015, 7:53 AM
- Q1 operating income of $491M or $1.17 per share vs. $433M and $0.99 one year ago.
- $1.7B repurchase plan completed during quarter, and the Board and Fed have approved a $1.8B plan for the next year.
- Assets under custody of $28.49T up 3.7% Y/Y. AUM of $2.44T up 2.6%.
- Net interest revenue of $565M down 1.2% Y/Y. NIM fell 124 basis points form a year ago. Total fee revenue of $2.113B up 6.7%.
- Conference call at 9:30 ET
- Previously: State Street beats by $0.12, beats on revenue (April 24)
- STT flat premarket
Apr. 24, 2015, 6:19 AM
- State Street (NYSE:STT): Q1 EPS of $1.17 beats by $0.12.
- Revenue of $2.68B (+4.7% Y/Y) beats by $10M.
Apr. 23, 2015, 5:30 PM
Apr. 6, 2015, 1:16 PM
- Just $320B of the $1.5B in assets at State Street (NYSE:STT) Global Advisors is in fixed-income, and it's an area where new boss Ron O'Hanley may be looking for growth.
- One possibility, says O'Hanley would be more collaboration with star fund managers such as the recent tie-up with Jeff Gundlach for the SPDR DoubleLine Total Return Tactical ETF (NYSEARCA:TOTL) which takes dead aim at Pimco's $2.6B Total Return ETF (NYSEARCA:BOND).
- As for the challenge posed by the likes of Vanguard, O'Hanley - having headed Fidelity's asset management business - is well aware of it, but he notes, unlike Fidelity, State Street already has a sizable ETF business.
- Previously: Former Fidelity exec to head SSgA (March 31)
Mar. 31, 2015, 12:44 PM
- Ron O'Hanley was chief of Fidelity's asset management business until retiring in February 2014, about 18 months after Abigail Johnson was tapped as the successor to her father to lead all of Fidelity.
- He'll succeed Scott Powers, who is retiring later in 2015 as head of State Street Global Advisors (NYSE:STT) after seven years in charge.
Mar. 11, 2015, 5:12 PM
- State Street (NYSE:STT) declares $0.34/share quarterly dividend, 13.3% increase from prior dividend of $0.30.
- Forward yield 1.88%
- Additionally, the board declares to repurchase up to $1.8B of common stock.
State Street Corp. operates as a financial holding company. The company conducts its business primarily through State Street Bank. The company operates in two lines of business: Investment Servicing and Investment Management. The Investment Servicing line of business performs core custody and... More
Industry: Money Center Banks
Country: United States
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