01—Abstract
Summary
Summary of the 10-K filed February 13, 2025. Cited figures are marked; the original filing is the authoritative source.
State Street Corporation (STT) reported strong financial performance for the year ended December 31, 2024, with diluted Earnings Per Share (EPS) reaching $8.21a, a significant increase from $5.58 in 2023.
This improvement was driven by a 9% rise in total revenue, largely due to higher fee revenue and net interest income, coupled with a 1% decrease in total expenses. The company's investment servicing segment saw a 5% increase in total fee revenue, while investment management experienced a 13% uplift, primarily attributed to higher market levels and net inflows. State Street continued to return capital to shareholders, repurchasing $1.3 billionb of common stock and declaring dividends totaling $859 million.
The company's Assets Under Custody/Administration (AUC/A) grew by 11% to $46.56 trillionc, and Assets Under Management (AUM) increased by 15% to $4.72 trillion, reflecting positive market trends and client flows. The company highlighted its ongoing efforts in operational efficiency and business model transformation, including the consolidation of its India joint venture.
Despite a challenging regulatory and competitive environment, State Street maintained robust capital ratios, with its Common Equity Tier 1 (CET1) capital ratio at 10.9%d and Tier 1 leverage ratio at 5.2% as of December 31, 2024, both remaining within or above target ranges. Management expressed confidence in continued strategic execution and financial stability.
02—Key points
Key Highlights
- Diluted EPS increased to $8.21 in 2024 from $5.58 in 2023, driven by higher revenues and lower expenses.
- Total revenue grew by 9% year-over-year, reaching $13 billion, fueled by a 7% increase in fee revenue and a 6% rise in Net Interest Income (NII).
- Assets Under Custody/Administration (AUC/A) rose 11% to $46.56 trillion, and Assets Under Management (AUM) increased 15% to $4.72 trillion.
- State Street returned approximately $2.2 billion to shareholders in 2024 through common share repurchases ($1.3 billion) and dividends ($859 million).
- Total expenses decreased by 1% year-over-year due to productivity savings and organizational simplification, despite increased business investments.
- Common Equity Tier 1 (CET1) capital ratio stood at 10.9% as of December 31, 2024, while the Tier 1 leverage ratio was 5.2%, both within target ranges.
- The company completed the consolidation of its final joint venture in India, a key step in its operating model transformation.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 13, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $13.00B$11.95B | +8.8% |
| Net Income | $2.69B$1.94B | +38.2% |
| EPS (Basic) | $8.33$5.65 | +47.4% |
| EPS (Diluted) | $8.21$5.58 | +47.1% |
| Shares Outstanding (Basic) | 297.88M322.34M | −7.6% |
| Shares Outstanding (Diluted) | 302.23M326.57M | −7.5% |
05—Questions
Frequently Asked Questions
What was State Street's key financial performance in 2024?
State Street reported a strong financial performance in 2024, with diluted Earnings Per Share (EPS) of $8.21, up from $5.58 in 2023. Total revenue increased by 9% to $13 billion, driven by higher fee revenue and net interest income, while total expenses decreased by 1%. Assets Under Custody/Administration (AUC/A) grew to $46.56 trillion and Assets Under Management (AUM) increased to $4.72 trillion.
How did State Street manage its expenses and capital in 2024?
The company successfully reduced total expenses by 1% year-over-year, attributing this to productivity savings from organizational simplification and process improvements, despite increased business investments. State Street maintained strong capital adequacy, with its Common Equity Tier 1 (CET1) capital ratio at 10.9% and Tier 1 leverage ratio at 5.2% as of December 31, 2024, both within or above their target ranges.
What were the main drivers for State Street's revenue growth in 2024?
State Street's total revenue growth of 9% was primarily driven by a 7% increase in total fee revenue and a 6% rise in net interest income. Fee revenue was boosted by a 13% increase in management fees (driven by higher market levels and net inflows) and a 9% increase in servicing fees (driven by higher average market levels and net new business).
How did State Street return capital to shareholders in 2024?
In 2024, State Street returned approximately $2.2 billion to shareholders. This included $1.3 billion in common share repurchases under its $5.0 billion authorization and $859 million in common stock dividends declared, representing an increase from the previous year's dividend per share.
06—Continue