· Event impact

Custody Banks Near Record Highs on Rising Assets and Trading Activity

Type: creditConfidence: 0.9Verified: keep
Operating leverage from asset-based fees and NII expansion in a volatile market.

Transmission path

Operating leverage from asset-based fees and NII expansion in a volatile market.

Market mechanism

Operating leverage from asset-based fees and NII expansion in a volatile market.

Extended read

While retail banks face consumer spending headwinds, custody giants like State Street and BNY Mellon are benefiting from the broader market rally which increases their Assets Under Custody (AUC). Additionally, market volatility has spurred trading activity, further padding fee-based revenue. Net interest income (NII) remains a tailwind as these institutions reinvest cash balances at higher prevailing rates.

Exposed assets

STT · BNY

Countries: USA

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