uploads/2017/12/market-cap-4-1.png

Inside State Street’s Total Expenses

By

Updated

Marginal rise

State Street Corporation (STT) posted total expenses of $6.1 billion in the first three quarters of 2017 compared to $5.8 billion during the same period last year. That reflects an 18% rise in regulatory fees and assessments and a 7% rise in compensation expenses.

State Street reported compensation and employee benefits of $3.3 billion in the first three quarters of 2017 compared to $3.1 billion in the first three quarters of 2016. That’s mainly due to a rise in incentives compensation and annual merit and expenses incurred for GE Asset Management (or GEAM) operations and new business.

Article continues below advertisement

Total other expenses

State Street saw a marginal decline of 1% in total other expenses to $849 million in the first three quarters of 2017 compared to $860 million in the first three quarters of 2016. The components of total other expenses are regulatory fees and assessments, professional services, securities processing costs, amortization expenses, and other expenses.

Its regulatory fees and assessment expenses were $77 million in the first three quarters of 2017 compared to $65 million in the first three quarters of 2016.

The company is bound to meet certain standards, which has affected its expenses. The company expects this momentum to continue in the future.

While State Street has a market capitalization of $35.7 billion, the market capitalization of peers (XLF) SEI Investment (SEIC), Franklin Resources (BEN), and BlackRock (BLK) are $11.1 billion, $24.5 billion, and $82.6 billion, respectively.

Advertisement

More From Market Realist