State Street’s chief executive shrugged off Brexit fears in the company's quarterly results statement.

Joseph Hooley said the Boston-based custodian continues to view the European and UK investment market as a significant opportunity.

He added that referendum hadn’t impacted the house view on the region, although the structure and details of the UK's exit will be a factor in terms of future performance.

Second quarter revenue totaled $2.57bn, 3.6% higher than Q1 but 1.3% weaker than the same period in 2015.

The bank had $27.7trn of assets under custody and administration at the end of June, down from $28.5trn a year ago.

New asset servicing mandates during the second quarter of 2016 totaled $750bn.

Assets under management declined in year on year terms to $2.3trn from $2.44trn.

Securities finance revenue increased to $156m from this year’s first quarter figure of $134m, primarily due to seasonality.

FX settlement

The results come a day after the bank said it had agreed to pay $530m to settle a number of lawsuits alleging the custody had overcharged clients on foreign-currency transactions.

In a statement on Wednesday Carmen Ortiz, the US attorney for Massachusetts, said State Street has executed FX transactions in a manner that enabled it to "reap substantial profits at the expense of its custody clients" many of whom were public pension funds. 

State Street reached settlement agreements with the Department of Justice, Department of Labor and the Massachusetts Attorney General and, subject to court approval, a class of State Street’s custody customers.

“Matters of this nature can drain both time and resources; so where possible and appropriate we feel it is in State Street’s and our clients’ best interests to pursue settlements,”  Mike Rogers, State Street's president and chief operating officer said in a company statement.

“In 2009, we significantly strengthened our disclosures around indirect foreign exchange, including publishing the spread relative to indicative interbank market rates at the time of pricing, and today believe we provide our clients with the most comprehensive disclosures in the industry.”

In April State Street sold the WM/Reuters branded foreign exchange benchmark business to Thomson Reuters, making a pre-tax gain of $53m in the process.