Summary
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.
Financial Highlights
38 data points| Revenue | $9.59B |
| Interest Expense | $613.00M |
| Net Income | $1.92B |
| EPS (Basic) | $3.82 |
| EPS (Diluted) | $3.79 |
| Shares Outstanding (Basic) | 492.60M |
| Shares Outstanding (Diluted) | 496.07M |
Key Highlights
- 1Total revenue increased by 7% to $9.59 billion in 2011, driven by a 10% rise in total fee revenue.
- 2Net income grew significantly to $1.92 billion in 2011, up from $1.56 billion in 2010, with diluted EPS at $3.79.
- 3State Street repurchased approximately 16.3 million shares of its common stock for $675 million in 2011.
- 4The company declared a common stock dividend of $0.72 per share in 2011, the first increase since early 2009.
- 5Total expenses increased by 3% to $7.06 billion, including $253 million in restructuring charges for business transformation and expense control measures.
- 6Assets under custody and administration remained stable at $21.81 trillion, while assets under management decreased slightly to $1.86 trillion.
- 7Regulatory capital ratios, including Tier 1 risk-based capital, remained strong and well above minimum requirements.