Profits rise by 25% at State Street

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HIGHER investment management fees and a boost from foreign exchange trading helped Boston-based banking giant State Street post a 25 per cent rise in second-quarter profits.

The New York-listed bank, which employs more than 800 staff in Edinburgh, reported a $571 million (£375m) surplus for the three months to 30 June, on the back of revenues rising to $2.56 billion from $2.44bn.

Joseph Hooley, State Street’s chairman and chief executive, said: “We reported a strong second quarter with revenue growth driven by new business and improved equity markets.

“Seasonal factors and increased market volatility benefited our securities finance and foreign exchange businesses”.

Hooley said the performance had also been boosted by “ongoing expense management” and changes to its computer systems.

The firm has purchased $560m-worth of stock in its $2.1bn share buy-back scheme.