Summary
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.
Financial Highlights
41 data points| Revenue | $12.13B |
| Interest Expense | $991.00M |
| Net Income | $2.59B |
| EPS (Basic) | $6.46 |
| EPS (Diluted) | $6.39 |
| Shares Outstanding (Basic) | 371.98M |
| Shares Outstanding (Diluted) | 376.48M |
Key Highlights
- 1State Street Corporation reported Assets Under Custody/Administration (AUC/A) of $31.62 trillion and Assets Under Management (AUM) of $2.51 trillion as of December 31, 2018.
- 2The company completed the acquisition of Charles River Development for approximately $2.6 billion in October 2018, aiming to strengthen its front-to-back office platform.
- 3State Street's Diluted Earnings Per Share (EPS) increased by 22% to $6.40 in 2018 compared to $5.24 in 2017, despite facing market headwinds and fee compression.
- 4Total revenue increased by 7% year-over-year to $11.98 billion in 2018, driven by growth in fee revenue and net interest income.
- 5Total expenses increased by 9% to $8.97 billion in 2018, largely due to repositioning charges, adoption of new revenue recognition standards, and higher technology costs.
- 6The company's regulatory capital ratios remained strong, with a Common Equity Tier 1 (CET1) ratio of 12.1% (advanced approaches) and a Tier 1 Leverage Ratio of 7.2% as of December 31, 2018.
- 7State Street continued its share repurchase program and declared common stock dividends totaling $665 million in 2018, reflecting a commitment to returning capital to shareholders.