Summary
State Street Corporation's (STT) Q1 2011 report shows a slight increase in total revenue to $2.361 billion, driven by a significant 16% rise in fee revenue, primarily from servicing and management fees. This growth was bolstered by acquisitions completed in 2010 and early 2011, as well as improved market valuations. However, net interest revenue saw a decline of 13%, largely due to lower discount accretion from former conduit securities. Expenses increased by 8%, mainly due to higher salaries and benefits associated with acquisitions and a new restructuring program. Key financial developments include the acquisition of Bank of Ireland's asset management business (BIAM) and the issuance of $2 billion in senior notes and $500 million in preferred stock to bolster regulatory capital. The company also increased its common stock dividend to $0.18 per share and authorized a $675 million share repurchase program. Despite the revenue growth, net income available to common shareholders decreased to $466 million from $492 million in the prior year quarter, and diluted EPS declined to $0.93 from $0.99.
Financial Highlights
35 data points| Revenue | $2.36B |
| Interest Expense | $157.00M |
| Net Income | $471.00M |
| EPS (Basic) | $0.94 |
| EPS (Diluted) | $0.93 |
| Shares Outstanding (Basic) | 497.47M |
| Shares Outstanding (Diluted) | 500.98M |
Key Highlights
- 1Total revenue increased by 3% to $2.361 billion, driven by a 16% increase in fee revenue to $1.791 billion.
- 2Net income available to common shareholders decreased by 5.3% to $466 million compared to $492 million in Q1 2010.
- 3Diluted earnings per common share decreased to $0.93 from $0.99 year-over-year.
- 4Acquisition of Bank of Ireland's asset management business (BIAM) completed in January 2011, adding $23 billion in assets under management.
- 5Company issued $2 billion in senior notes and $500 million in preferred stock in March 2011 to strengthen regulatory capital.
- 6Quarterly common stock dividend increased to $0.18 per share, and a $675 million share repurchase program was authorized for 2011.
- 7Total expenses rose 8% to $1.702 billion, impacted by increased salaries, benefits, and restructuring costs.