Monday 16 September 2019

Irish pre-tax profit dips to €100m at State Street

State Street executive Susan Dargan abseils from the company’s Irish offices in Dublin in a charity event last year
State Street executive Susan Dargan abseils from the company’s Irish offices in Dublin in a charity event last year

Gordon Deegan

The main Irish arm of US-owned financial services firm State Street recorded pre-tax profits of €100m last year.

New accounts filed by State Street International (Ireland) Ltd show that the firm recorded the profit after it received dividends of €100m from subsidiaries.

The company received dividends of €50m from State Street Custodial Services Ireland Ltd and €50m from State Street Fund Services (Ireland) Ltd.

Revenues at the company dipped from €183m to €174m in the 12 months to the end of December last.

The firm's cost of sales last year totalled €173.9m. In a year of expansion for the business, the firm had 1,134 employed at the end of last December compared to 1,067 at the end of December 2015.

The US-owned firm provides management and administration services to its subsidiaries.

Across Ireland, State Street employs over 2,500 people at locations in Dublin, Drogheda, Kilkenny and Naas.

The directors' report for State Street International (Ireland) Ltd said "the directors are satisfied with the business performance for the year.

"The directors expect the company's operations to continue as normal in the foreseeable future."

Staff costs last year increased from €66.46m to €73.59m.

Pre-tax profits declined by 29pc from €140.48m to €100.2m and the lower profits were as a result of lower dividends received. The dividend received of €100m last year compared to dividend income of €140m in 2015.

State Street International (Ireland) Ltd in turn paid out a dividend of €100m last year.

The firm recorded an operating profit of €694,595 last year while the company also recorded a foreign exchange loss of €493,421.

Shareholder funds at the end of last December totalled €52.9m. The firm's cash pile during the year increased from €106m to €125m. The profit last year takes account of non-cash depreciation costs of €1.796m while the firm also paid out €4.9m in rental costs.

The firm generated the revenues of €174m through management fee income.

Directors' remuneration last year increased from €583,250 to €768,134.

Overall staff costs, including pension costs of €2.9m, €6.8m in social welfare costs and salary and bonuses of €63.8m, totalled €73.59m.

Administrative costs last year decreased from €181.37m to €174.59m.

The directors state that the firm's risks include the changing trends of financial markets.

Irish Independent

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