State Street, the US custody house, grew second quarter revenues by 19% but warned that interest rate rises and higher cost of new European customers may mean a slowdown in the pace of growth.

Total revenue rose from $1.08bn (€877m) to $1.29bn this year. A $292m one-off 2003 restructuring charge pushed the global custodian $23m into the red last year. Without it, this year's net income was $220m.