Skip to content

STT · STATE STREET CORP

33 filings

10-K

STT 10-K Annual Reports

STATE STREET CORP - 33 annual reports

Filing record · 2016–202610-K1210-Q328-K196

2025
STATE STREET CORP Annual Report, Year Ended Dec 31, 2025
State Street Corporation (STT) reported a solid financial performance for the fiscal year ending December 31, 2025, demonstrating growth across key metrics. Total revenue increased by 7% year-over-year to $13.94 billion, driven by an 8% rise in fee revenue to $10.98 billion, primarily fueled by higher servicing and management fees, as well as strong performance in foreign exchange trading and securities finance. Despite a 7% increase in total expenses, largely due to investments in technology and business initiatives, the company maintained strong profitability with a pre-tax margin of 26.8% and a return on equity of 11.5%. Earnings per diluted share rose to $9.40 from $8.21 in the prior year. The company also returned significant capital to shareholders, with $2.1 billion distributed through share repurchases and dividends. State Street ended the year with robust AUC/A of $53.80 trillion and AUM of $5.67 trillion, reflecting successful client flows and positive market valuations.
Feb 19, 2026
2024
STATE STREET CORP Annual Report, Year Ended Dec 31, 2024
State Street Corporation (STT) reported strong financial performance for the year ended December 31, 2024, with diluted Earnings Per Share (EPS) reaching $8.21, a significant increase from $5.58 in 2023. This improvement was driven by a 9% rise in total revenue, largely due to higher fee revenue and net interest income, coupled with a 1% decrease in total expenses. The company's investment servicing segment saw a 5% increase in total fee revenue, while investment management experienced a 13% uplift, primarily attributed to higher market levels and net inflows. State Street continued to return capital to shareholders, repurchasing $1.3 billion of common stock and declaring dividends totaling $859 million. The company's Assets Under Custody/Administration (AUC/A) grew by 11% to $46.56 trillion, and Assets Under Management (AUM) increased by 15% to $4.72 trillion, reflecting positive market trends and client flows. The company highlighted its ongoing efforts in operational efficiency and business model transformation, including the consolidation of its India joint venture. Despite a challenging regulatory and competitive environment, State Street maintained robust capital ratios, with its Common Equity Tier 1 (CET1) capital ratio at 10.9% and Tier 1 leverage ratio at 5.2% as of December 31, 2024, both remaining within or above target ranges. Management expressed confidence in continued strategic execution and financial stability.
Feb 13, 2025
2023
STATE STREET CORP Annual Report, Year Ended Dec 31, 2023
State Street Corporation (STT) reported a net income of $1.94 billion for the year ended December 31, 2023, a decrease from $2.77 billion in 2022. This decline was primarily attributed to a $294 million loss on the sale of investment securities, a $387 million FDIC special assessment, and $203 million in net repositioning charges, which collectively reduced EPS by $2.08. Total revenue saw a slight decrease of 2% year-over-year, mainly due to lower fee revenue, though this was partially offset by higher net interest income driven by increased interest rates. The company returned approximately $4.6 billion to shareholders through share repurchases and dividends in 2023, a significant increase from $2.4 billion in 2022. State Street's Assets Under Custody/Administration (AUC/A) grew by 14% to $41.81 trillion, and Assets Under Management (AUM) increased by 19% to $4.13 trillion, both primarily benefiting from higher market valuations. Despite the decline in net income due to one-time charges, State Street maintained strong capital ratios, with its Common Equity Tier 1 (CET1) capital ratio at 11.6% and Tier 1 leverage ratio at 5.5% as of year-end 2023. The company also announced a new $5.0 billion share repurchase program. Management is focused on navigating a challenging operating environment marked by competition and regulatory evolution, while continuing to invest in technology and operational efficiency, as evidenced by the consolidation of joint ventures in India.
Feb 15, 2024
2022
STATE STREET CORP Annual Report, Year Ended Dec 31, 2022
State Street Corporation (STT) reported solid financial results for the fiscal year ending December 31, 2022, demonstrating resilience in a challenging economic environment. The company maintained its position as a leading provider of financial services to institutional investors, managing $36.74 trillion in assets under custody/administration (AUC/A) and $3.48 trillion in assets under management (AUM). Total revenue saw a slight increase of 1% year-over-year, driven by a significant 34% rise in net interest income (NII) due to higher interest rates, which helped offset a 4% decrease in total fee revenue. This decline in fee revenue was primarily attributed to lower servicing and management fees, impacted by market valuations and client-specific adjustments, although foreign exchange trading services revenue showed a notable 14% increase. Expenses were managed effectively, decreasing by 1% year-over-year due to productivity savings and the benefit of currency translation, despite ongoing business investments. State Street returned approximately $2.4 billion to shareholders through dividends and share repurchases, reflecting a commitment to capital return. The company's capital ratios remained strong, with a Common Equity Tier 1 (CET1) capital ratio of 13.6% and a Tier 1 leverage ratio of 6.0% as of December 31, 2022, both comfortably exceeding regulatory minimums. Management's focus remains on navigating market volatility, investing in technology and growth initiatives like State Street Alpha, and maintaining operational efficiency.
Feb 16, 2023
2021
STATE STREET CORP Annual Report, Year Ended Dec 31, 2021
State Street Corporation (STT) reported its 2021 annual results, highlighting growth in Assets Under Custody/Administration (AUC/A) and Assets Under Management (AUM), alongside increased earnings per share (EPS). The company's core businesses, Investment Servicing and Investment Management, demonstrated resilience, with servicing fees and management fees showing positive year-over-year growth. This growth was primarily driven by higher market levels, client activity, and net new business wins, although State Street also noted ongoing pricing pressures in its core markets. The company is actively investing in technology and innovation, notably with its "State Street Alpha" platform and the establishment of "State Street Digital" to focus on digital assets. Financially, STT saw a 14% increase in diluted EPS to $7.19 and a 3% increase in total revenue to $12.03 billion. Net income attributable to common shareholders rose to $2.57 billion. The company also announced a significant strategic move with the planned acquisition of BBH Investor Services for $3.5 billion, which is pending regulatory approval. State Street maintained a strong capital position, with its Common Equity Tier 1 (CET1) capital ratio increasing to 14.3% under Basel III advanced approaches.
Feb 17, 2022
2020
STATE STREET CORP Annual Report, Year Ended Dec 31, 2020
State Street Corporation (STT) filed its 2020 Form 10-K on February 19, 2021, detailing its financial performance and significant risk factors. For the year ended December 31, 2020, the company reported total revenue of $11.7 billion, largely flat compared to the prior year, with a net income of $2.42 billion. Earnings per diluted share were $6.32, a notable increase from $5.38 in 2019. Assets under custody and administration (AUC/A) reached $38.8 trillion, and assets under management (AUM) stood at $3.5 trillion, both showing growth year-over-year. The company's performance was impacted by the COVID-19 pandemic, which led to higher client deposits and record foreign exchange trading volumes, while also prompting the suspension of share repurchases. State Street's strategic focus remains on its State Street Alpha platform, aimed at providing a comprehensive front-to-back solution for institutional investors. The company is also navigating a complex regulatory environment, including Basel III capital requirements and the ongoing transition from LIBOR. Risk factors highlighted include intense competition, technological infrastructure reliance, market volatility, and regulatory compliance. Overall, State Street demonstrated resilience in 2020, with improved earnings per share and growth in key AUC/A and AUM metrics, despite the challenging macroeconomic backdrop. Investors should note the company's strong capital ratios and its commitment to enhancing its technology platform, while remaining aware of the significant competitive and regulatory headwinds.
Feb 19, 2021
2019
STATE STREET CORP Annual Report, Year Ended Dec 31, 2019
State Street Corporation's (STT) 2019 Form 10-K highlights a strong year for assets under custody and/or administration (AUC/A) and assets under management (AUM), which saw significant growth in 2019. AUC/A increased by 9% to $34.4 trillion, and AUM grew by 24% to $3.1 trillion, driven by higher market valuations and net inflows. Despite revenue and diluted EPS declining slightly in 2019 compared to 2018, the company managed expenses effectively through various initiatives, exceeding its savings goals. The company also returned substantial capital to shareholders through dividends and share repurchases, demonstrating a commitment to shareholder returns while maintaining strong regulatory capital ratios.
Feb 20, 2020
2018
STATE STREET CORP Annual Report, Year Ended Dec 31, 2018
State Street Corporation (STT) reported its 2018 financial results in this 10-K filing, highlighting its core businesses of Investment Servicing and Investment Management. The company processed $31.62 trillion in Assets Under Custody/Administration (AUC/A) and managed $2.51 trillion in Assets Under Management (AUM) as of December 31, 2018. A significant event during the year was the acquisition of Charles River Development for approximately $2.6 billion, which is expected to enhance its front-to-back office platform capabilities. The company navigated a complex regulatory environment, including evolving capital and liquidity standards under Basel III and the Dodd-Frank Act, and maintained strong capital ratios throughout the year. Despite market headwinds and fee compression impacting revenues, State Street's earnings per share (EPS) increased by 22% year-over-year to $6.40, driven by repositioning charges and other factors. The company also emphasized its commitment to operational efficiency and risk management, with ongoing initiatives to optimize processes and technology.
Feb 21, 2019
2017
STATE STREET CORP Annual Report, Year Ended Dec 31, 2017
State Street Corporation's 2017 Form 10-K highlights a year of growth and strategic initiatives, including a 9% increase in total revenue to $11.17 billion and a 10% rise in fee revenue to $8.91 billion. This growth was primarily driven by strong performance in investment servicing and management fees, bolstered by market appreciation, net new business, and the acquisition of GE Asset Management. Diluted Earnings Per Share (EPS) saw a 5% increase to $5.24. The company continued to enhance its capital position, with CET1 capital ratio under the Basel III standardized approach increasing to 11.9% and a Tier 1 leverage ratio of 7.3% as of year-end 2017. The report also details State Street's ongoing commitment to cost efficiencies through its "Beacon" program, which generated approximately $150 million in savings in 2017 and is projected to achieve target savings of $550 million by mid-2019. Despite these positive developments, the company faces a complex operating environment characterized by extensive regulation, heightened prudential standards for systemically important financial institutions, and ongoing efforts to manage risks related to cybersecurity, geopolitical events, and evolving market conditions. The company's significant fee-based revenue model, coupled with a large AUCA ($33.1 trillion) and AUM ($2.78 trillion), positions it as a key player in the institutional investment services sector.
Feb 26, 2018
2016-A
STATE STREET CORP Annual Report (Amendment), Year Ended Dec 31, 2016
State Street Corporation's 2017 10-K filing highlights its position as a leading financial services provider, with a strong focus on institutional investors globally. The company operates through two main segments: Investment Servicing, which provides core custody and related value-added services, and Investment Management, primarily through State Street Global Advisors (SSGA), offering a wide range of asset management strategies. As of December 31, 2016, State Street managed a significant $28.77 trillion in assets under custody and administration (AUCA) and $2.47 trillion in assets under management (AUM). The filing also details the company's robust regulatory environment, particularly in light of the Dodd-Frank Act and Basel III implementation, which impose stringent capital and liquidity requirements. State Street, designated as a Global Systemically Important Bank (G-SIB), is subject to higher capital surcharges and enhanced prudential standards. The company is actively managing its risk exposures, including credit, liquidity, operational, and market risks, through a comprehensive enterprise-wide risk management framework. Financially, in 2016, State Street reported total revenue of $10.2 billion, with fee revenue making up approximately 80% of this total. The company also actively engaged in capital return to shareholders through dividends and share repurchases, demonstrating a commitment to shareholder value while navigating the complex regulatory and economic landscape.
Mar 27, 2017
2016
STATE STREET CORP Annual Report, Year Ended Dec 31, 2016
State Street Corporation's (STT) 2016 10-K filing highlights a resilient financial performance amidst evolving regulatory landscapes and market conditions. The company reported a slight decrease in total revenue to $10.21 billion from $10.36 billion in 2015, primarily impacted by lower processing fees and other revenues, though partially offset by growth in management and securities finance revenues. Net income available to common shareholders increased to $1.97 billion from $1.85 billion in the prior year, demonstrating effective cost management and operational efficiency. State Street actively managed its balance sheet, including reducing investment securities and optimizing its liquidity position in response to regulatory requirements. The filing also details significant strategic initiatives, including the acquisition of GE Asset Management and the ongoing State Street Beacon transformation program aimed at digitizing operations and reducing expenses. The company's robust risk management framework, overseen by its Board of Directors and various committees, is emphasized, alongside its commitment to meeting stringent regulatory capital and liquidity standards, including those under Basel III and the Dodd-Frank Act. Investors should note the company's proactive approach to regulatory compliance and its ongoing efforts to adapt to the dynamic financial services environment, which positions it for sustained growth and stability.
Feb 17, 2017
2015
STATE STREET CORP Annual Report, Year Ended Dec 31, 2015
State Street Corporation's (STT) 2015 10-K filing highlights a year of strategic adjustments and ongoing adaptation to a complex regulatory environment. The company, a leading provider of financial services to institutional investors, reported total revenue of $10.36 billion, a slight increase from the prior year, driven primarily by a 3% rise in fee revenue. However, net income saw a slight decrease to $1.98 billion compared to $2.02 billion in 2014, impacted by significant legal accruals, notably $415 million related to its indirect foreign exchange business. Operationally, State Street continued to focus on cost efficiencies through its "State Street Beacon" program, aiming for significant annualized pre-tax expense savings. The company also navigated substantial regulatory changes, including the ongoing implementation of Basel III and Dodd-Frank Act provisions, which necessitate higher capital and liquidity requirements. Despite these challenges, STT maintained robust capital ratios, exceeding regulatory minimums, and continued its common stock repurchase program and dividend payments, signaling a commitment to shareholder returns.
Feb 19, 2016
2014
STATE STREET CORP Annual Report, Year Ended Dec 31, 2014
State Street Corporation's (STT) 2015 10-K filing highlights a stable year in 2014, with growth in fee revenue driven by strong global equity markets and net new business. The company reported total revenue of $10.3 billion, a 4% increase from the prior year, primarily fueled by a 6% rise in servicing fees and a 9% increase in management fees. Diluted earnings per share saw a slight decrease of 1% to $4.57, largely attributed to increased expenses, including a significant legal accrual related to foreign exchange matters. The company is navigating a complex regulatory environment, with ongoing implementation of Basel III and the Dodd-Frank Act impacting capital requirements and liquidity standards. State Street remains well-capitalized and continues to focus on operational efficiency, completing its IT transformation program which is expected to yield substantial cost savings. The company also repurchased approximately $1.65 billion of its common stock in 2014, demonstrating a commitment to shareholder returns.
Feb 20, 2015
2013
STATE STREET CORP Annual Report, Year Ended Dec 31, 2013
State Street Corporation's 2013 10-K filing reveals a robust financial services company with diversified revenue streams from Investment Servicing and Investment Management. The company manages substantial assets under custody and administration ($27.43 trillion) and assets under management ($2.35 trillion), serving a global institutional investor base. Despite a challenging economic environment marked by low interest rates, State Street demonstrated revenue growth, primarily driven by increases in servicing and management fees, reflecting stronger equity markets and net new business wins. The company also navigated significant regulatory changes, particularly related to Basel III capital and liquidity standards, which are expected to impact capital ratios and operations. Key areas of focus for investors include State Street's strong capital position, with all regulatory capital requirements exceeded as of year-end 2013, and its commitment to returning capital to shareholders through dividends and share repurchases, subject to regulatory approvals. The filing also highlights ongoing legal and regulatory matters, particularly concerning foreign exchange trading practices, which have led to accruals for potential settlements and fines. While these matters present risks, management believes they will not have a material adverse effect on the company's consolidated financial condition.
Feb 21, 2014
2012
STATE STREET CORP Annual Report, Year Ended Dec 31, 2012
State Street Corporation's 2013 10-K report details its operations as a leading provider of financial services and products to institutional investors worldwide. The company's core businesses are Investment Servicing and Investment Management, with significant global reach. In 2012, State Street reported total revenue of $9.65 billion, a slight increase from the previous year, driven by growth in servicing and management fees, partially offset by declines in trading services. The report highlights State Street's robust capital position, exceeding regulatory requirements, and its commitment to returning capital to shareholders through dividends and share repurchases. The company also emphasizes its ongoing efforts to transform its operating model through significant investments in technology and process improvements, aimed at enhancing efficiency and service quality. However, State Street faces a complex and evolving regulatory landscape, particularly concerning capital requirements under Dodd-Frank and Basel III, which are expected to impact costs and operations.
Feb 22, 2013
2011-A
STATE STREET CORP Annual Report (Amendment), Year Ended Dec 31, 2011
This filing is an amendment (10-K/A) to State Street Corporation's (STT) 2011 Annual Report on Form 10-K, filed on February 27, 2012. The amendment specifically revises Part III, Item 12, which pertains to security ownership and equity compensation plans. This revised section incorporates information by reference from the company's definitive proxy statement for the 2012 Annual Meeting of Shareholders, particularly regarding the approval of the Amended and Restated 2006 Equity Incentive Plan. Investors should note that this amendment does not introduce new financial information or update other sections of the original 10-K. Its primary purpose is to ensure compliance with SEC regulations by including updated details on executive compensation plans and related disclosures. For a comprehensive understanding of State Street's financial performance and strategic outlook for 2011, investors should refer to the original Form 10-K filing and subsequent SEC filings.
Apr 5, 2012
2011
STATE STREET CORP Annual Report, Year Ended Dec 31, 2011
State Street Corporation's (STT) 2011 10-K filing highlights a year of modest revenue growth, driven by an increase in fee revenues, particularly in servicing and management fees. The company also saw a rebound in gains related to investment securities after a challenging prior year. However, net interest revenue declined due to lower discount accretion, reflecting strategic portfolio repositioning. Financially, STT reported total revenue of $9.59 billion and net income of $1.92 billion for 2011, up from $1.56 billion in 2010. The company successfully repurchased $675 million of its common stock and increased its dividend payout, signaling a return of confidence and capital to shareholders. Despite significant restructuring charges of $253 million related to an ongoing IT and business transformation program, the company's capital ratios remained strong, exceeding regulatory requirements.
Feb 27, 2012
2010
STATE STREET CORP Annual Report, Year Ended Dec 31, 2010
State Street Corporation's 2010 Form 10-K highlights a year of strategic acquisitions and ongoing operational enhancements, positioning the company for future growth amidst a recovering economic landscape. The company successfully integrated two significant acquisitions: Mourant International Finance Administration (MIFA) and the securities services business of Intesa Sanpaolo. These moves bolstered State Street's fund administration capabilities, expanded its global reach, and strengthened its position in key European and Asian markets. Financially, State Street navigated a complex environment marked by regulatory changes, including the implementation of the Dodd-Frank Act and ongoing considerations for Basel III capital requirements. The company reported an increase in total revenue driven by growth in servicing and management fees, bolstered by market appreciation and new business wins. However, it also incurred significant charges related to restructuring programs aimed at increasing efficiency and operational enhancements. Despite these investments and charges, State Street maintained robust regulatory capital levels, exceeding requirements and positioning it favorably for future regulatory demands. The report also details significant legal proceedings and inquiries, particularly concerning foreign exchange services, which are being actively managed.
Feb 28, 2011
2009
STATE STREET CORP Annual Report, Year Ended Dec 31, 2009
State Street Corporation's (STT) 2009 Form 10-K highlights a challenging year marked by a significant net loss attributed to an extraordinary item related to the consolidation of asset-backed commercial paper conduits. Despite this, the company's core operations, excluding this item, demonstrated resilience with income before the extraordinary loss decreasing by a modest 8% year-over-year. Fee revenue saw a considerable decline, primarily due to market disruptions impacting servicing and management fees, alongside a substantial drop in securities finance revenue. However, net interest revenue remained relatively stable, benefiting from discount accretion related to the conduit consolidation, though lower interest rates and deposit volumes presented headwinds. Financially, the company strengthened its capital position by redeeming its TARP investment and issuing new equity. The report also details significant legal and regulatory matters, including settlements for active fixed-income strategies managed by SSgA and ongoing inquiries into foreign exchange pricing practices. The company is also navigating increased regulatory scrutiny and evolving market conditions, emphasizing robust risk management and capital adequacy as key priorities.
Feb 22, 2010
2008
STATE STREET CORP Annual Report, Year Ended Dec 31, 2008
State Street Corporation (STT) filed its 2008 10-K on February 27, 2009. The filing details the company's financial performance and risk factors, particularly in the context of the challenging global economic and financial market conditions of 2008. Despite market disruptions, State Street demonstrated revenue growth driven by its Investment Servicing and Investment Management segments, with notable increases in trading services and securities finance revenue. The company also experienced a significant increase in net interest revenue due to favorable interest rate environments and higher customer deposits. However, State Street also reported substantial expenses related to the financial crisis, including restructuring charges, a provision for investment account infusion, and a provision for indemnification exposure. The company's substantial asset servicing and investment management businesses are sensitive to market valuations, and the filing highlights significant unrealized losses in its investment securities portfolio, which, if deemed other-than-temporary, could negatively impact earnings and capital ratios. The report also emphasizes the company's participation in the U.S. Treasury's TARP Capital Purchase Program, which imposes certain restrictions. Overall, the 2008 10-K reflects a company navigating a severe economic downturn, managing increased expenses and market risks while demonstrating resilience through revenue growth in key areas and significant capital infusions. Investors should pay close attention to the company's risk factors, capital adequacy, and its ability to manage the ongoing market disruptions.
Feb 27, 2009
2007
STATE STREET CORP Annual Report, Year Ended Dec 31, 2007
State Street Corporation's 2007 Form 10-K shows a year dominated by the Investors Financial acquisition and a large charge tied to SSgA's active fixed-income strategies. Total revenue rose 32% to $8.34 billion, driven by fee revenue up 27% to $6.60 billion and net interest revenue up 56% to $1.73 billion. Income from continuing operations was $1.26 billion, or $3.45 per diluted share, versus $3.26 in 2006. Return on equity from continuing operations fell to 13.4% from 16.2%, largely because of two items: $198 million of merger and integration costs and a net pre-tax charge of $467 million (provision for legal exposure of $625 million, partly offset by insurance and incentive compensation reductions). The balance sheet expanded materially. Total assets reached $142.54 billion and deposits $95.79 billion, while shareholders' equity rose to $11.30 billion from $7.25 billion, reflecting the roughly $4.2 billion stock issuance for Investors Financial. Assets under custody grew 29% to $15.30 trillion and assets under management grew 13% to $1.98 trillion. Capital ratios declined: the Tier 1 risk-based ratio fell to 11.2% from 13.7%, and the Tier 1 leverage ratio fell to 5.3% from 5.8%, though all ratios remain above well-capitalized thresholds. Investors should also note risk disclosures on asset-backed commercial paper conduits, which could require consolidation with an estimated after-tax loss of about $530 million, and a $6.2 billion sub-prime-collateralized ABS exposure within the investment portfolio. Looking ahead, management highlights integration execution, cost synergies from Investors Financial, the SSgA litigation exposure, and ongoing Basel II implementation as the key variables for 2008. Credit rating outlooks at Moody's and Fitch moved to negative after the January 2008 reserve announcement, though management stated this has not materially affected liquidity or market access.
Feb 15, 2008
2006
STATE STREET CORP Annual Report, Year Ended Dec 31, 2006
State Street Corporation's (STT) 2006 10-K filing highlights a strong financial performance, characterized by consistent revenue growth, effective expense management, and expanding global operations. The company reported double-digit revenue growth across most categories, driven by increases in servicing and management fees, supported by record levels of assets under custody and management. State Street Global Advisors (SSgA) saw increased contributions to overall results, and the company made significant progress towards its goal of generating 50% of revenue from non-U.S. operations, reaching 43% by year-end. The company also announced key acquisitions in early 2007, Investors Financial Services Corp. and Currenex, Inc., aimed at further strengthening its market position and expanding its service offerings. Financial highlights include a 15% increase in total revenue and a 16% rise in income from continuing operations, resulting in diluted earnings per share of $3.26. The company also achieved positive operating leverage for the year. The outlook for 2007, factoring in the proposed acquisitions, projected revenue growth between 16-18% and earnings per share growth between 8-10%.
Feb 20, 2007
2005
STATE STREET CORP Annual Report, Year Ended Dec 31, 2005
State Street Corporation (STT) reported a strong 2005 in its 10-K filed February 21, 2006, with net income of $838 million (diluted EPS $2.50) and income from continuing operations of $945 million (diluted EPS $2.82), up 18% and 20% respectively from 2004. Total revenue grew 11% to $5.47 billion while operating expenses rose 8%, producing positive operating leverage. The company met all three of its previously announced financial goals on an operating basis, with operating EPS growth of 14%, operating revenue growth of 10%, and a 15.3% return on shareholders' equity from continuing operations. Assets under custody reached a record $10.12 trillion and assets under management reached $1.44 trillion, both driving the fee growth that accounted for most of the revenue increase. The quality of earnings is supported by fee revenue, which rose 12% to $4.55 billion and represented roughly 83% of total revenue. Net interest revenue grew only 6% to $907 million, and the company disclosed a $107 million after-tax loss from discontinued operations tied to the planned divestiture of its Bel Air Investment Advisors stake. Investors should note that the company is sensitive to market levels: a 10% move in global equity values is estimated to change total revenue by about 2%. Interest-rate exposure is also meaningful, since a 100 basis point rise is estimated to reduce net interest revenue by $58 million over twelve months. Unrealized losses on available-for-sale securities of $475 million pre-tax were recorded, reflecting the rise in rates during 2005, and the company's Tier 1 risk-based capital ratio declined to 11.7% from 13.3%. The filing also discloses ongoing regulatory and tax matters. State Street is responding to industry-wide inquiries from regulators related to mutual fund market timing and late trading, and it is contesting IRS challenges to leveraged lease (LILO) and sale-in-lease-out (SILO) tax positions. Management believes these matters can be resolved without material adverse effect, but the company accrued for exposure and flagged that the FASB's proposed guidance on leveraged leases could produce a material cumulative charge. For 2006, management targets revenue growth of 8% to 12%, EPS growth of 10% to 15%, and ROE of 14% to 17%, with results expected near the middle of these ranges.
Feb 21, 2006
2004
STATE STREET CORP Annual Report, Year Ended Dec 31, 2004
State Street Corporation's 2004 10-K filing indicates a year of robust growth and strategic focus on institutional investors. The company experienced a significant increase in both assets under custody ($9.50 trillion) and assets under management ($1.35 trillion), demonstrating strong market penetration. The acquisition and integration of the Global Securities Services (GSS) business from Deutsche Bank in 2003 proved transformational, significantly expanding State Street's European presence and overall service capabilities. This integration, coupled with a heightened focus on cost management and operational efficiency, contributed to a 14% increase in total operating revenue and an 8% rise in operating diluted earnings per share, marking 27 consecutive years of operating EPS growth. The company's strategic priorities for 2004 included global expansion, streamlining of underperforming units, and rigorous expense management, all contributing to a solid financial performance.
Feb 18, 2005
2003
STATE STREET CORP Annual Report, Year Ended Dec 31, 2003
State Street's 2003 10-K shows a transformational year. The January 2003 acquisition of the Global Securities Services business from Deutsche Bank (a $1.1 billion premium, roughly $2.1 trillion of assets under custody added) lifted assets under custody to $9.4 trillion, up 52% from $6.2 trillion. Reported net income fell to $722 million ($2.15 diluted EPS) from $1.0 billion ($3.10) in 2002, but that comparison is distorted by the 2002 Corporate Trust gain. Excluding non-operating items, operating EPS rose 8% to $2.33, and baseline EPS (excluding the GSS contribution) rose 7% to $2.32. Reported results absorbed a $296 million restructuring charge tied to a voluntary separation program that cut roughly 2,000 net positions, plus $110 million of merger, integration and divestiture costs, partly offset by a $285 million pre-tax gain on the sale of Private Asset Management. Core revenue was flat on a baseline basis: servicing fees grew 10% and management fees 6%, but net interest revenue fell 17% to $810 million as lower rates compressed the margin (net interest margin fell to 1.17% from 1.42%). Operating ROE was 15.0% against 16.8% in 2002, and management reset the 2003 and 2004 ROE goal to 13–15% because of the acquisition's capital requirements. Capital remained strong, with a Tier 1 risk-based ratio of 14.0% and a total risk-based ratio of 15.8%, both well above well-capitalized thresholds, though down from 17.1% and 18.0% a year earlier. The outlook is cautious. Management described 2004 as a challenging year, expects to convert substantially all remaining GSS clients, targets retention of about 88% of GSS client revenue, and is pursuing a long-term goal of 12.5% real revenue growth from 2000 through 2010. Investors should weigh the integration execution risk, the sustained low-rate environment, and the leverage constraints the acquisition imposes on balance sheet growth.
Feb 24, 2004
2002
STATE STREET CORP Annual Report, Year Ended Dec 31, 2002
State Street Corporation (STT) reported strong financial performance in its 2002 10-K filing, marked by a significant gain from the sale of its corporate trust business and strategic acquisitions aimed at enhancing its global investment servicing and management capabilities. The company navigated a challenging economic environment characterized by declining equity markets and lower interest rates, yet demonstrated resilience through new business wins and diligent expense management. Key strategic moves include the acquisition of International Fund Services and the significant acquisition of substantial parts of Deutsche Bank AG's global securities services business, positioning State Street for expanded market share and economies of scale, particularly in Europe. Financially, State Street reported a substantial increase in net income, largely driven by the one-time gain from the corporate trust divestiture. Excluding this gain, ongoing operations showed moderate growth. The company maintained robust capital ratios, exceeding regulatory requirements, and continued its consistent dividend growth. Despite market headwinds, State Street's focus on servicing sophisticated global investors and its integrated product offerings contributed to its ability to attract new clients and retain existing ones, underscoring its strategic positioning for sustained growth in the evolving financial services landscape.
Feb 21, 2003
2001
STATE STREET CORP Annual Report, Year Ended Dec 31, 2001
State Street Corporation's 2001 10-K filing highlights a strong performance despite a challenging economic environment, marked by slow global growth, weak stock market performance, and the impact of the September 11th terrorist attacks. The company reported its 24th consecutive year of double-digit growth in operating earnings per share, demonstrating resilience and strategic execution. Revenue growth was primarily driven by increased servicing fees, bolstered by new client wins and strong securities lending revenue, along with a favorable interest rate environment impacting net interest revenue. Key to State Street's success in 2001 was its continued focus on serving sophisticated global investors with integrated products and services. The company's strategic focus on client orientation, global reach, and technological advantage positions it well to capitalize on global trends such as financial services convergence, the growing need for retirement security, and the outsourcing of non-core activities by investment managers. Despite market headwinds, State Street managed expense growth effectively, aligning it with revenue growth, and maintained a strong capital position.
Feb 22, 2002
1998
STATE STREET CORP Annual Report, Year Ended Dec 31, 1998
State Street Corporation (NYSE: STT) reported a strong 1998 in its 10-K filed March 23, 1999. Diluted EPS rose 15% to $2.66 and net income grew 15% to $436 million. Total revenue increased 18% to $2.8 billion, driven by fiduciary compensation (up 20% to $1.5 billion), foreign exchange trading (up 18%), and net interest revenue (up 15% to $785 million on a taxable-equivalent basis). Return on equity was 20.2%, above the company's 18% goal, and management marked the year as its 21st consecutive year of double-digit EPS growth. The business is a bank holding company focused on institutional investors. It is the largest U.S. mutual fund custodian and accounting agent, with $4.8 trillion in assets under custody and $485 billion under management at year-end 1998. Services for Institutional Investors generated 67% of pre-tax income, Investment Management 14%, and Commercial Lending 19%. Growth was strong across custody, asset management and non-U.S. operations, with non-U.S. assets under custody up 36% to $362 billion. Risks flagged in the filing include a 1.90% net interest margin, down from 2.18%, as balance-sheet growth shifted into low-yielding money market assets and the yield curve flattened. Operating expenses rose 19% to $2.1 billion, and the filing notes Year 2000 readiness costs (cumulative $72 million) and potential effects on new business in the second half of 1999. Capital remained strong, with a Tier 1 risk-based ratio of 14.1% and a leverage ratio of 5.4%.
Mar 23, 1999
1997
STATE STREET CORP Annual Report, Year Ended Dec 31, 1997
State Street Corporation (STT) reported a strong 1997 in its 10-K filed March 26, 1998. Net income rose 30% to $380 million, and diluted EPS reached $2.32, up from $1.78 in 1996. Total revenue grew 24% to $2.3 billion, driven by fee revenue of $1.67 billion (up 28%), with fiduciary compensation of $1.25 billion (up 23%) and foreign exchange trading revenue nearly doubling to $245 million. Return on equity was 20.6%, above the company's 18% goal. Management called 1997 the company's twentieth consecutive year of double-digit EPS growth, but cautioned that favorable external factors such as strong equity markets and mutual fund inflows may not persist, so future EPS growth may revert toward its long-term historical pace. The franchise is a leading custodian and servicer for institutional investors. Assets under custody reached $3.9 trillion (up 33%) and assets under management reached $390 billion (up 34%). State Street is the largest U.S. mutual fund custodian and the largest servicer of U.S. tax-exempt pension assets, with a 24% market share. Roughly half of the 1997 growth in custody assets came from higher securities values and half from new business and contributions. Revenue is roughly 71% fee-based, which supports recurring earnings, though it leaves results sensitive to equity market levels, cross-border investing, and currency volatility. Balance sheet and capital metrics were solid. Total assets were $38.0 billion, the Tier 1 risk-based capital ratio was 13.7%, and the leverage ratio was 5.9%, both well above regulatory minimums. Credit quality was strong, with net charge-offs of only $6 million (0.11% of average loans) and non-performing assets of $6 million. Interest-rate sensitivity is modest: a 100 basis point rate increase would reduce expected 12-month net interest revenue by about $32 million. Key risks disclosed include Year 2000 remediation (budgeted at under $200 million over 1996-2000), pricing pressure, and the pending acquisition of Bank of Scotland's unit trust trustee business, expected in early 1998.
Mar 26, 1998
1996
STATE STREET CORP Annual Report, Year Ended Dec 31, 1996
State Street Boston Corporation (STT) closed 1996 with a strong year across its three lines of business. Fully diluted EPS rose 21% to $3.56, the company's nineteenth consecutive year of double-digit EPS growth. Total revenue grew 19% to $1.88 billion, net income rose about 19% to $293 million, and return on average equity reached 18.1%, which management said exceeded its 18% goal. Fee revenue grew 16% to $1.30 billion, led by fiduciary compensation (up 24%), while taxable-equivalent net interest revenue rose 27% to $588 million as the spread between earning-asset yields and funding costs widened to 1.53% from 1.21%. Growth came from new business wins, cross-border investing, and the expansion of assets under custody to $2.9 trillion and assets under management to $292 billion. The balance sheet is large and liquidity-focused, with $31.5 billion in total assets, of which about 73% are investment securities and money-market assets and only 15% are loans. Credit quality was very strong: net recoveries were $2 million in 1996, non-performing assets fell to $13 million, and the allowance covered 1.54% of loans. Capital ratios were solid, with a Tier 1 risk-based ratio of 13.4% and a total risk-based ratio of 13.6%. The company also issued $200 million of 7.94% capital securities and $150 million of 7.35% notes, repurchased 2.7 million shares, and announced a two-for-one stock split subject to shareholder approval in April 1997. For investors, the key points are the consistent double-digit earnings growth, the rising importance of custody and fund services relative to traditional lending, and the sensitivity of revenue to securities market values and interest rate spreads. Management noted that a 10% change in equity values would move total revenue by about 1%, and that rising short-term rates would reduce net interest revenue in the near term. Other risks include foreign exchange trading revenue, which fell 11% in 1996 with lower market volatility, and the company's growing exposure to non-U.S. business.
Mar 26, 1997
1995
STATE STREET CORP Annual Report, Year Ended Dec 31, 1995
State Street Boston Corporation (STT) reported a solid 1995 for its fiscal year ended December 31, 1995. Net income rose 12% to $247.1 million, and fully diluted EPS grew 12% to $2.95, while total revenue increased 11% to $1,575.4 million. Return on equity was 16.7%, slightly below the company's 18% goal. Growth was driven primarily by its financial asset services franchise, which contributed 65% of net income, with fee revenue making up 71% of total revenue. Fee revenue rose 10% to $1.12 billion, led by fiduciary compensation (up 10%), foreign exchange trading (up 24%), and service fees (up 23%), partly offset by a 20% decline in processing service fees. The company is a dominant custodian and servicer of financial assets, with $2.3 trillion in assets under custody (up 32%), $1 trillion in mutual fund assets under custody (41% of U.S. registered funds), and $226 billion in assets under management (up 41%). Management noted that net interest revenue was pressured by a flatter and inverted Treasury yield curve, and the net interest margin fell to 2.01% from 2.09%. Operating expenses rose 11% to $1.17 billion as the company continued strategic investment spending, which management says has returned to a more normal level of about 8% of revenue by year-end. Credit quality improved further: net charge-offs fell to $2.7 million (0.07% of average loans) from $7.7 million, and non-performing assets declined to $18.7 million. Capital remained strong, with a Tier 1 risk-based ratio of 14.0% and a leverage ratio of 5.6%. Management expects credit quality to remain at current levels in 1996 and guided to a 1996 effective tax rate of about 35.5%. The 1995 results were helped by several nonrecurring tax items that lowered the effective rate to 32.6% (34.5% excluding them).
Mar 27, 1996
1994
STATE STREET CORP Annual Report, Year Ended Dec 31, 1994
State Street Boston Corporation's 1994 10-K shows a bank holding company whose earnings are driven mainly by fee revenue from financial asset services (custody, accounting, recordkeeping, and trust services) rather than traditional lending. In 1994 net income rose 15% to $207.4 million, and fully diluted EPS reached $2.68, up from $2.33. Total revenue grew 17% to $1.36 billion, with fee revenue (72% of total revenue) up 18% to $981.0 million. Return on equity held at 17.5% and the dividend payout ratio was 22%. Total assets were $21.7 billion, of which 74% were investment securities and money market assets and only 15% were loans. The company reports assets under custody of $1.6 trillion, bonds under trusteeship of $210 billion, and assets under management of $160 billion. The main risks for investors are margin compression and cost growth. Net interest margin declined to 2.04% from 2.08% as the rate spread narrowed to 1.41%, and the company is liability-sensitive, so rising rates hurt net interest revenue. Operating expenses rose 18% to $1.0 billion, and management said strategic investment spending was about 10% of revenue in 1993 and 1994. It plans to reduce that spending to roughly 8% by year-end 1995. Credit quality improved: net charge-offs fell to 0.23% of average loans from 0.63%, and non-performing assets dropped to $27.4 million. Management also flagged a slowdown in U.S. mutual fund growth and cross-border investing as possible headwinds for 1995 revenue growth. Looking ahead, management expects continued double-digit EPS growth for the next few years and a 12.5% real revenue growth goal for the 1990s. Two events shape 2026-era context from the filing: the stock moved to the NYSE in February 1995, and the acquisition of Investors Fiduciary Trust Company closed in January 1995 with 5,972,222 shares issued. That acquisition is accounted for as a pooling of interests, with no expected earnings dilution in 1995.
Mar 29, 1995
1993
STATE STREET CORP Annual Report, Year Ended Dec 31, 1993
State Street Boston Corporation's 1993 10-K shows a fast-growing custody and fiduciary services franchise. Total revenue rose 18% to about $1.16 billion, net income increased 12% to $179.8 million, and fully diluted EPS reached $2.33, up 13%. Return on equity was 17.4%, versus 18.1% in 1992, as management stepped up strategic investment spending to about 10% of revenue. Fee revenue, which made up 72% of total revenue, grew 19% to $833.4 million, led by fiduciary compensation of $627.8 million (up 15%). Assets under custody reached $1.6 trillion (up 21%) and assets under management reached $142 billion (up 28%). The balance sheet is conservative and highly liquid. Total assets were $18.7 billion, with loans only 14% of assets, and the company is liability-sensitive in the short term. Credit quality improved: net charge-offs fell to $16.3 million (0.63% of average loans), non-performing assets dropped to $37.9 million, and the loan loss allowance covered 2.03% of loans. The Tier 1 risk-based capital ratio was 12.1%, and the bank was well-capitalized. Net interest margin compressed to 2.08% from 2.14% as lower market rates outweighed balance-sheet growth. For investors, the key tradeoffs are strong fee-driven growth and a fortress balance sheet against a lower margin, rising expense growth (operating expenses up 20%), and dependence on mutual fund and global custody flows. Management guided to continued double-digit EPS growth and continued strategic spending near 10% of revenue through 1994.
Mar 30, 1994