10-QPeriod: Q2 FY2012

STATE STREET CORP Quarterly Report for Q2 Ended Jun 30, 2012

Filed August 3, 2012For Securities:STTSTT-PG

Summary

State Street Corporation's (STT) Q2 2012 filing reveals a mixed financial performance, with total revenue experiencing a slight decline of 3% year-over-year, primarily driven by a 6% drop in fee revenue. This was partially offset by a significant 17% increase in net interest revenue, which benefited from higher interest-earning assets and improved yields. Despite the revenue pressure, total expenses remained flat compared to the prior year, aided by a reduction in compensation and employee benefits. The company also announced a significant acquisition, agreeing to purchase Goldman Sachs Administration Services (GSAS) for approximately $550 million, expanding its hedge fund administration capabilities.

Financial Statements
Beta
Revenue$2.42B
Interest Expense$114.00M
Net Income$490.00M
EPS (Basic)$1.00
EPS (Diluted)$0.98
Shares Outstanding (Basic)481.40M
Shares Outstanding (Diluted)488.52M

Key Highlights

  • 1Total revenue decreased by 3% to $2.42 billion in Q2 2012 compared to Q2 2011, mainly due to a 6% decline in fee revenue.
  • 2Net interest revenue saw a robust increase of 17% to $672 million, driven by higher interest-earning assets and improved yields.
  • 3Total expenses remained stable year-over-year at $1.77 billion, with compensation and employee benefits expenses decreasing by 7%.
  • 4State Street announced an agreement to acquire Goldman Sachs Administration Services (GSAS) for approximately $550 million, aiming to enhance its hedge fund administration business.
  • 5The company repurchased approximately 11.1 million shares of common stock for $480 million under its authorized share repurchase program.
  • 6Total assets under custody and administration stood at $22.42 trillion, while assets under management were $1.91 trillion as of June 30, 2012.
  • 7Net income available to common shareholders decreased by 4% to $480 million, resulting in diluted earnings per share of $0.98.

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