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.