Summary
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.
Financial Highlights
41 data points| Revenue | $10.21B |
| Interest Expense | $428.00M |
| Net Income | $2.14B |
| EPS (Basic) | $5.03 |
| EPS (Diluted) | $4.97 |
| Shares Outstanding (Basic) | 391.49M |
| Shares Outstanding (Diluted) | 396.09M |
Key Highlights
- 1State Street manages $28.77 trillion in Assets Under Custody and Administration (AUCA) and $2.47 trillion in Assets Under Management (AUM) as of December 31, 2016, serving institutional investors globally.
- 2The company operates through two primary lines of business: Investment Servicing and Investment Management (SSGA).
- 3State Street is subject to significant regulatory oversight, including the Dodd-Frank Act and Basel III, and is classified as a Global Systemically Important Bank (G-SIB), necessitating higher capital and liquidity requirements.
- 4Fee revenue constitutes the majority of State Street's revenue, representing approximately 80% of total revenue in 2016.
- 5The company actively returned capital to shareholders through dividends and share repurchases in 2016, demonstrating a commitment to shareholder value.
- 6State Street is focused on managing various risks, including credit, liquidity, operational, market, strategic, and model risk through a comprehensive enterprise risk management framework.
- 7The company incurred $142 million in restructuring charges related to its 'State Street Beacon' transformation program in 2016, aimed at digitizing the business and lowering expenses.