Global Custodian Fall 2018 | Page 102

[ G L O B A L C U S T O D Y | R A N K I N G S ] State Street leapfrogs BNY Mellon as world’s largest custodian BNY Mellon previously held the rank as the largest global custodian by assets for three straight years. Global Custody Power Rankings Global Custodian AuC/A 2Q18 (trillions) AuC/A 1Q18 (billions) QvQ Increase/Decrease State Street $33.9 $33.2 2.1% BNY Mellon $33.6 $33.5 0.3% JP Morgan $28.3 $28.1 0.7% Citi $19.4 $19.3 0.5% BNP Paribas Securities Services $13.9 $13.5 2.9% Northern Trust $10.7 $10.8 (1%) Societe Generale Securities Services $4.7 $4.6 2.1% *HSBC Securities Services AuC/A was not disclosed in Q2 2018, but as of Feb 2018 it stood at $11.3 trillion S tate Street has regained the position as the world’s largest custodian by as- sets, overtaking BNY Mellon which has held the rank for three straight years. The Boston-based custodian reported record assets under custody and admin- istration (AUC/A) of $33.9 trillion in its second quarter earnings, up 9% year-on- year and nearly $300 billion more than its New York rival. State Street cited “strength in equi- ty markets, new business and higher client flows,” as the reasons for growth. Asset servicing mandates announced year-to-date also totalled nearly $1.5 102 Global Custodian Fall 2018 trillion, of which $105 billion was newly announced in the second quarter. Assets remaining to be installed in future periods total approximately $300 billion. State Street was touted by many experts to overtake BNY Mellon as the world’s largest global custodian, after achieving nearly 10% growth over the year in AUC. Meanwhile BNY Mellon’s AUC in- creased 8% year-on-year to $33.6 trillion, but its quarter-on-quarter growth was outpaced by State Street. For the other US global custodians, JP Morgan and Citi both grew at a steady rate at 0.7% and 0.5% respectively to $28.3 trillion and $19.4 trillion; however, Northern Trust saw its position fall over the quarter due to a 1% decline in assets under custody to $10.7 trillion. For the two European banks, BNP Paribas Securities Services has been a real success story, achieving the highest quarterly growth of nearly 3%, surpass- ing Northern Trust as the fifth largest global custodian with $13.9 trillion in AuC/A. Societe Generale Securities Ser- vices also recorded significant growth of 2.1% to reach over $4.7 trillion in assets.