In a recent speech to the
Logue cited the example of Deutsche Bank, which bought longtime competitor Banker's Trust. "They didn't invest a penny in it," he said.
Industry analysts, however, expect considerable consolidation in the mutual fund servicing business, which now has four big players: State Street, Bank of New York, Mellon and Northern Trust. State Street's performance, they say, depends on its ability to grow revenue at above-average rates and curb expense growth, something it has struggled with in the past.
Logue, who took the helm after the departure of State Street's previous top executive, David Spina, last summer, said State Street's operating revenue grew 14% last year, faster than any of its competitors. He admitted that expenses remain a problem, but said there will be "no slashing and burning going on here."