State Street reports fall in trading revenue
State Street Corporation released its third-quarter 2009 earnings this week. Revenue came in at $2.24 billion compared with $2.77 billion in the same quarter of 2008. The bank says that revenue from trading services, which includes FX, brokerage and other fees, was $269 million, a drop of 26% on the same quarter in 2008. It adds: “A 41% decrease in foreign exchange revenue is due to lower volatility as well as lower volumes. Brokerage and other fees increased 11% due primarily to increases in electronic trading.” It will be interesting to see if other banks report similar numbers, but perhaps it should not have come as too much of a surprise (see Time to downgrade banks?).