US - Mellon's asset management group recorded a rise in total revenue of 14% during the fourth quarter of 2005 while assets under management grew 11% to a record high of US$781bn at year-end.
Meanwhile, State Street Corporation’s total revenue was up 10% on 2004, with record levels of US$5.5bn at the end of 2005.
Commenting on the results, Ronald E. Logue (pictured), State Street's chairman and chief executive officer, said: “State Street Global Advisors, our investment management arm, exhibited continued growth and is becoming a more meaningful contributor to State Street’s results. Additionally, the corporation’s non-US revenue increased 17% and now represents 39% of total revenue, moving toward our goal of 50% over several years.”
Mellon attributed the positive results to its ability to capitalise on the growth opportunities in asset management and asset servicing.
“Over each of the past two years we have achieved double-digit growth in the revenue and pretax income of asset management and asset servicing, and the fourth quarter of 2005 represented a continuation of this trend,” commented Martin G. McGuinn, chairman and chief executive officer of Mellon Financial Corporation.
“The record level of assets under management, custody and administration resulted from strong institutional investment performance, excellent service quality and our ability to leverage the key strategic synergies of these two growth businesses.”
Mellon’s income before taxes for the asset management group increased 35% compared with Q4 2004 and was up 17% on Q3 2005.
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