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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.