BNY and State Street see FX decline in Q4 2011

Two of the worlds leading custodian banks have seen a difficult end to 2011 as results show declines in profit

Two of the worlds leading custodian banks have seen a difficult end to 2011 as results show declines in profit and FX revenue. Surprisingly both banks have been under the regulators radar.

BNY Mellon announced a significant reduction in profit, the group made $505 million; down by 26%.

Join the iFX EXPO Asia and discover your gateway to the Asian Markets

Their FX division saw an 11% reduction in revenue compared to 2010.

Suggested articles

FXTM Appoints Marcelo Spina as Global Head of PartnershipsGo to article >>

On the other hand, State Street saw revenue on an operating basis ending flat however the  $2.29 billion measured below Wall Street analysts who estimated $2.4 billion.

Their FX revenues were down by 12%.

BNY Mellon has been facing a civil suit against them on the back of one if its pension finds claiming they were overcharged for dealings in Foreign Exchange. State Street saw the SEC investigate the pricing they gave to their custodial clients.

2011 was a strong year for ECN’s as volatility helped trade volumes, however BNY and State Streets decline in trade volumes shows how important reputation is in this fast paced industry.

Got a news tip? Let Us Know