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- Global Custody Pro - 01 August 2025
Global Custody Pro - 01 August 2025
Custody shake-ups: SMTB growth, Standard Chartered’s $1.3 B buyback, and new SEC-approved in-kind crypto ETFs
Global Custody Pro
July 31, 2025 • Reading Time: 10 minutes
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Welcome to Global Custody Pro, read by custody professionals like you. I'm Brennan McDonald, Managing Editor. I write about the global custody industry, having spent over 12 years in financial services, including working at a global custody bank. An AI voice reads the audio version of this newsletter. Have feedback? Just reply to this email or connect with us on LinkedIn.
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🌏 Global Custody News
Crédit Agricole finalises full CACEIS ownership
Key Move: Crédit Agricole S.A. finalised the acquisition of Santander's 30.5% stake in asset servicer CACEIS on 4 July 2025, taking full ownership of the business.
Why it matters: The bank confirmed it is on track to achieve an additional €100 million in net income by 2026 from integrating RBC's former European asset servicing activities, with about 60% of synergies now realised. At the end of June 2025, CACEIS had assets under custody of €5.526 trillion and assets under administration of €3.468 trillion.
The Bottom Line: The transaction occurred as Crédit Agricole S.A. reported a 30.7% year-on-year increase in second-quarter net income to €2.39 billion, with revenues rising 3.1% to €7.006 billion.
SocGen lifts targets, announces EUR 1bn buy-back
Driving the news: Societe Generale has upgraded its full-year 2025 targets after strong first-half results, announcing an additional EUR 1bn share buy-back and an interim cash dividend of EUR 0.61 per share. The buy-back is set to launch from 4 August 2025, with the dividend payable on 9 October 2025.
By the Numbers: For H1 2025, the bank reported group net income of EUR 3.1bn and a return on tangible equity (ROTE) of 10.3%. Revenues grew 8.6% while costs decreased 2.6% compared to H1 2024. In its Securities Services arm, assets under custody reached EUR 5,222 billion and assets under administration stood at EUR 638 billion at quarter-end.
The big picture: The bank raised its 2025 ROTE target to approximately 9% from a previous goal of over 8%, and now expects its cost-to-income ratio to be below 65%, an improvement from the prior target of under 66%. The upgrades reflect improved operational efficiency and performance across all business lines, particularly in French retail banking.
Sumitomo Mitsui Trust Bank AuM surges to ¥154 trillion
Driving the news: The group’s assets under management (AUM) surged by ¥13.3 trillion in the quarter to reach ¥154.0 trillion as of 30 June 2025. The company maintained its full-year net income forecast of ¥280 billion and reported that its total assets under management grew to ¥154.0 trillion.
Under the Hood: A closer look at fee income reveals a mixed picture. While group-wide fees from asset management and administration decreased by ¥0.5 billion, fees for the core Sumitomo Mitsui Trust Bank (non-consolidated) unit increased by ¥0.8 billion to ¥19.9 billion.
The Bottom Line: Despite the growth in asset balances, net business profit for the Investor Services Business segment fell by ¥5.9 billion year-on-year to ¥16.6 billion. Domestic assets under custody and administration reached ¥213.6 trillion, and global assets under custody and administration reached US$561 billion.
HSBC adds $3bn buyback on stable Q2 profit
Driving the news: HSBC announced a new share buyback of up to $3bn after reporting stable second-quarter pre-tax profits of $9.2bn, excluding notable items. The bank declared a dividend of $0.10 per share for the quarter.
Key Move: As part of a broader strategic shift, the bank announced it will exit its German custody and fund administration businesses, with completion targeted for the second half of 2027. The bank commenced targeted strategic reviews of its retail activities in Australia, Indonesia and Sri Lanka.
By the Numbers: Revenue from Securities Services increased 3% year-over-year, which the bank attributed to higher asset balances resulting from improved valuations and new client mandates, particularly in Asia and the Middle East.
SIX reports higher H1 income and improved margin
Driving the news: SIX's operating income rose 4.7% to CHF 823.0 million in the first half of 2025, with its EBITDA margin, excluding transformation costs, improving to 35.9% from 32.8% a year earlier.
Key Move: The results follow the 1 July closing of its Aquis acquisition, a deal that positions SIX as a pan-European exchange innovator with access to 16 capital markets and an aggregated market share of 15%.
The Bottom Line: Group net profit declined to CHF 42.2 million, primarily due to a CHF 69.3 million non-cash value adjustment on its 10.5% stake in European payments provider Worldline.
Standard Chartered launches $1.3bn buyback on strong results
Driving the news: Standard Chartered has announced a new $1.3 billion share buyback after a strong second quarter performance. The bank’s reported profit before tax increased 48% year-over-year to $2.28 billion, with an underlying return on tangible equity of 19.7%.
The big picture: The bank has revised its full-year 2025 income growth guidance, now expecting it to be around the lower end of the 5-7% range. The new buyback keeps Standard Chartered on track to meet or exceed its goal of returning at least $8 billion to shareholders between 2024 and 2026.
Zoom in: Within its Corporate & Investment Bank, average assets under custody for the first half of 2025 grew 11% year-on-year to $1.8 trillion. The bank also highlighted winning an exclusive sub-custodian mandate from a Chinese bank and stated its aim to become a leader in digital asset custody.
UBS profit rises as cost savings top $9 billion
Driving the news: UBS reported a second-quarter net profit of $2.4 billion and an underlying profit before tax of $2.7 billion. The result was supported by strong year-on-year underlying profit growth in Global Wealth Management (+24%) and the Investment Bank (+28%).
Under the Hood: The bank has achieved $9.1 billion in cumulative annualised gross cost savings since the Credit Suisse acquisition, representing approximately 70% of its end-2026 target. The integration remains on track, with about one-third of Swiss-booked client accounts successfully migrated onto UBS systems.
On the Radar: Management is actively engaging in the debate on future Swiss regulation, noting that current proposals on capital requirements are not aligned with international standards and would make the bank a "pronounced outlier" compared to global peers.
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🚀 Digital Asset News
White House details digital asset framework
Source: White House Report
Driving the news: The President's Working Group on Digital Asset Markets has submitted a comprehensive report proposing a legislative and regulatory framework for digital assets, mandated by Executive Order 14178. The report's recommendations are designed to advance the administration's policy of supporting the responsible growth of the digital asset industry in the United States.
The big picture: The policy marks a formal reversal of the previous administration's approach, aiming to provide regulatory certainty and end policies like "Operation Choke Point 2.0" that were perceived as hostile to the industry. The framework's stated goals are to establish the U.S. as a leader in digital assets while explicitly prohibiting the creation of a U.S. Central Bank Digital Currency (CBDC).
Why it matters: Key recommendations for market participants include granting the Commodity Futures Trading Commission clear authority over spot markets for non-security digital assets, establishing clear guidance for banks to provide custody and stablecoin reserve services, and implementing the GENIUS Act as the federal framework for payment stablecoins.
Our Take: This shift in US regulatory posture has significant implications for global digital asset regulation, as the EU, UK, and other countries now face a much less restrictive environment for US-based players. If they fail to seize the moment, the dominance of US firms and US-dollar-denominated stablecoins will become further entrenched. We can see how aggressively US banks are now adopting stablecoins, forming partnerships with crypto-native firms, and expanding their digital asset custody capabilities.
Bitwise gains SEC nod for in-kind crypto ETP creations
Driving the news: Bitwise Asset Management received regulatory approval to offer in-kind creations and redemptions for its Bitcoin ETF (BITB) and Ethereum ETF (ETHW), a shift from the previous cash-only model for United States-based spot crypto ETPs.
Why it matters: The change allows authorised participants to exchange bitcoin or ether directly for fund shares, a move expected to increase trading efficiency, tighten bid-ask spreads, and potentially reduce tax liabilities for investors.
What they're saying: "In-kind creation is one of the final structural pieces that spot crypto ETPs need to reach their full potential as a mainstream investment," said Matt Hougan, Chief Investment Officer at Bitwise.
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