Summary
State Street Corporation's Q3 2001 report shows solid year-over-year growth, with net income rising 13% to $170 million and diluted earnings per share increasing to $0.51 from $0.45 in the prior year's quarter. Total revenue grew by 8% to $977 million, driven by increases in servicing fees and net interest revenue. The company benefited from strong new business wins in investment servicing and improved interest rate spreads. For the nine-month period, diluted earnings per share were $1.38, slightly up from $1.36 in the prior year, though reported results were impacted by a $50 million write-off of an investment in Bridge Information Systems. Excluding this one-time charge, operating earnings per share reached $1.48. The company's balance sheet also expanded, with total assets growing to $73.2 billion, supported by strong deposit growth and a well-capitalized financial position, with Tier 1 capital ratios significantly exceeding regulatory requirements.
Key Highlights
- 1Diluted EPS for Q3 2001 increased 13% to $0.51 compared to $0.45 in Q3 2000.
- 2Total revenue for Q3 2001 grew 8% year-over-year to $977 million.
- 3Net income for Q3 2001 rose 13% to $170 million.
- 4Nine-month net income was $458 million, up from $448 million in the prior year.
- 5The company reported a $50 million write-off of its investment in Bridge Information Systems in March 2001, impacting nine-month earnings.
- 6Total assets reached $73.2 billion as of September 30, 2001.
- 7State Street Bank's Tier 1 risk-based capital ratio was 12.3%, well above regulatory minimums.