THE IRISH business of US financial services giant State Street made a pretax profit of $23.5 million (€16.9 million) last year, despite a decrease in its overall turnover.
Recently filed accounts show the fund administrator’s annual turnover dropped $12.7 million from $171.9 million in 2008 to $159 million in 2009.
It booked an operating profit of $22.2 million last year, a substantial increase on the $15.4 million recorded the previous year.
The increase in operating profit follows a reduction of $19.4 million in the company’s administrative expenses to almost $137 million in 2009.
Staff numbers at the company increased during 2009, with an additional 171 employees hired. As a result, the bill for wages and salaries of more than 1,000 employees at the company amounted to $74 million in 2009, a rise of just over $4 million on the 2008 bill.
The recognised profit was $21 million for the year, after payment of $2.4 million in tax and it was resolved that an interim dividend of almost $33 million in respect of the year ended December 31st, 2010 be paid prior to that date.
At the end of 2009, State Street had a balance of $282 million in its profit and loss account and net assets worth $313 million. Its earnings a year ago were reduced by $56.8 million in dividends paid.
State Street employs approximately 20 per cent of employees in the Irish funds industry.
In August, the Boston-based company signalled it was seeking to expand its actively managed investments through acquisitions and reduce its reliance on passive funds.
Last week, Bank of Ireland agreed to sell its asset management arm to the company for a cash consideration of about $57 million.
