STATE STREET CORP Annual Report, Year Ended Dec 31, 2023

State Street Corporation (STT) reported a net income of $1.94 billion for the year ended December 31, 2023, a decrease from $2.77 billion in 2022. This decline was primarily attributed to a $294 million loss on the sale of investment securities, a $387 million FDIC special assessment, and $203 million in net repositioning charges, which collectively reduced EPS by $2.08. Total revenue saw a slight decrease of 2% year-over-year, mainly due to lower fee revenue, though this was partially offset by higher net interest income driven by increased interest rates. The company returned approximately $4.6 billion to shareholders through share repurchases and dividends in 2023, a significant increase from $2.4 billion in 2022. State Street's Assets Under Custody/Administration (AUC/A) grew by 14% to $41.81 trillion, and Assets Under Management (AUM) increased by 19% to $4.13 trillion, both primarily benefiting from higher market valuations. Despite the decline in net income due to one-time charges, State Street maintained strong capital ratios, with its Common Equity Tier 1 (CET1) capital ratio at 11.6% and Tier 1 leverage ratio at 5.5% as of year-end 2023. The company also announced a new $5.0 billion share repurchase program. Management is focused on navigating a challenging operating environment marked by competition and regulatory evolution, while continuing to invest in technology and operational efficiency, as evidenced by the consolidation of joint ventures in India.