Summary
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.
Key Highlights
- 1Achieved 24th consecutive year of double-digit operating earnings per share growth.
- 2Total operating revenue increased by 8% to $3.9 billion, with a record fourth-quarter revenue of $1 billion.
- 3Operating expenses grew 8%, matching revenue growth, demonstrating effective cost management.
- 4Assets under custody reached $6.2 trillion, and assets under management grew to $775 billion.
- 5Servicing fees increased 14% driven by new client wins and securities lending revenue.
- 6State Street's capital ratios (Tier 1 at 13.6%, Total Capital at 14.5%) remained strong and well above regulatory minimums.
- 7The company maintained a leading position in serving mutual funds, collective funds, and pension plans globally.