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Sec finance reports mixed results
02 February 2012
The January reporting season revealed which US banks were recent winners and losers in the securities finance business
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BlackRock
State Street
BNY Mellon
Citi
Goldman Sachs
JPMorgan
Morgan Stanley
Bank of America Merrill Lynch
In a mixed bag of end of year results, some US banks reported an increase in the average balances of international securities on loan and improved spreads, while others said they had experienced lower volumes and reduced demand.
At Blackrock, investment advisory, administration fees and securities lending revenue in Q4 2011 decreased $86m from Q3 2011, reflecting market driven reduction in equity assets under management (AuM), offset by $15m higher securities lending fees due to an increase in average balances of international securities on loan.
Compared to Q4 2010, revenue of $1.9bn decreased $88m, or 5%, from $2bn, reflecting lower average AuM. Comparing year-end 2010 to 2011, revenue was up 7.7% to $7.89bn. Separate account assets and collateral held under securities lending agreements remained relatively static, up $1bn to $140bn.
Within the mix of this revenue, one noticeable trend was a decline in active equity, down 2%...
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