Summary
State Street Corporation (STT) reported a modest 1% increase in total revenue to $2.44 billion for the first quarter of 2013, driven by a 4% rise in total fee revenue, primarily from servicing and management fees. This growth was partially offset by an 8% decline in net interest revenue. Net income saw a healthy 9% increase to $464 million, resulting in diluted earnings per share of $0.98, up from $0.85 in the prior year's first quarter. The company's balance sheet experienced growth, with total assets increasing, reflecting stronger market valuations and net new business installations. Capital ratios remained strong, with Tier 1 capital significantly exceeding regulatory requirements. The company announced its Board of Directors approved a new common stock purchase program of up to $2.10 billion, following the full execution of a previous $1.80 billion program. Despite a challenging net interest revenue environment due to lower global market rates, State Street's core fee-based businesses demonstrated resilience. The Business Operations and Information Technology Transformation program is progressing, with ongoing expense savings contributing to operational efficiency.
Financial Highlights
34 data points| Revenue | $2.44B |
| Interest Expense | $111.00M |
| Net Income | $464.00M |
| EPS (Basic) | $1.00 |
| EPS (Diluted) | $0.98 |
| Shares Outstanding (Basic) | 454.31M |
| Shares Outstanding (Diluted) | 462.75M |
Key Highlights
- 1Total revenue increased 1% year-over-year to $2.44 billion.
- 2Total fee revenue grew 4% to $1.86 billion, driven by servicing and management fees.
- 3Net interest revenue declined 8% to $576 million due to lower global market rates.
- 4Net income increased 9% to $464 million, with diluted EPS rising to $0.98.
- 5The company's Board approved a new $2.10 billion common stock repurchase program.
- 6Capital ratios remained robust, exceeding regulatory minimums.
- 7The Business Operations and Information Technology Transformation program continues to yield expense savings.