10-KPeriod: FY2024

STATE STREET CORP Annual Report, Year Ended Dec 31, 2024

Filed February 13, 2025For Securities:STTSTT-PG

Summary

State Street Corporation (STT) reported strong financial performance for the year ended December 31, 2024, with diluted Earnings Per Share (EPS) reaching $8.21, 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 billion of common stock and declaring dividends totaling $859 million. The company's Assets Under Custody/Administration (AUC/A) grew by 11% to $46.56 trillion, 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% 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.

Financial Highlights

36 data points
Beta

Revenue

$13.00B

Net Income

$2.69B

20.7% Net Margin

EPS (Diluted)

$8.21

Total Assets

$353.24B

Cash & Equivalents

$3.15B

Free Cash Flow

-$14.14B

Financial Statements
Beta
Revenue$13.00B
Net Income$2.69B
EPS (Basic)$8.33
EPS (Diluted)$8.21
Shares Outstanding (Basic)297.88M
Shares Outstanding (Diluted)302.23M

Key Highlights

  • 1Diluted EPS increased to $8.21 in 2024 from $5.58 in 2023, driven by higher revenues and lower expenses.
  • 2Total 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).
  • 3Assets Under Custody/Administration (AUC/A) rose 11% to $46.56 trillion, and Assets Under Management (AUM) increased 15% to $4.72 trillion.
  • 4State Street returned approximately $2.2 billion to shareholders in 2024 through common share repurchases ($1.3 billion) and dividends ($859 million).
  • 5Total expenses decreased by 1% year-over-year due to productivity savings and organizational simplification, despite increased business investments.
  • 6Common 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.
  • 7The company completed the consolidation of its final joint venture in India, a key step in its operating model transformation.

Frequently Asked Questions

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.

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.

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).

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.