Summary
State Street Corporation's (STT) first quarter 2015 results demonstrate a 5% increase in total revenue, reaching $2.605 billion, primarily driven by a 7% rise in fee revenue, which benefited from stronger U.S. equity markets and net new business. However, net interest revenue saw a slight decline of 2%. The company also reported a significant charge of $150 million for a legal accrual related to indirect foreign exchange client activities, impacting total expenses, which grew by 3% to $2.097 billion. Despite this legal charge, net income increased by 13% to $409 million, and diluted earnings per share rose to $0.90. Financially, State Street maintained solid capital ratios, with Common Equity Tier 1 capital at 12.2% and Tier 1 capital at 14.2% under the Basel III Advanced Approaches. The company also completed a $1.7 billion common stock repurchase program and announced a new $1.8 billion program, along with a proposed increase in its quarterly dividend. The strong U.S. dollar had a notable impact, reducing reported revenue by approximately $97 million.
Financial Highlights
35 data points| Revenue | $2.60B |
| Interest Expense | $96.00M |
| Net Income | $405.00M |
| EPS (Basic) | $0.90 |
| EPS (Diluted) | $0.89 |
| Shares Outstanding (Basic) | 412.23M |
| Shares Outstanding (Diluted) | 418.75M |
Key Highlights
- 1Total revenue increased by 5% year-over-year to $2.605 billion, driven by a 7% increase in fee revenue.
- 2A significant legal accrual of $150 million was recorded for indirect foreign exchange client activities, contributing to a 3% increase in total expenses.
- 3Net income grew by 13% to $409 million, and diluted EPS increased to $0.90 from $0.81 in the prior year period.
- 4The company completed a $1.7 billion common stock repurchase program and announced a new $1.8 billion program, indicating a commitment to returning capital to shareholders.
- 5Asset servicing and asset management fees each increased by 3%, reflecting positive revenue from new business and stronger equity markets, partially offset by the strong U.S. dollar.
- 6Net interest revenue decreased by 2% due to lower yields on interest-earning assets, influenced by global interest rates and the strong U.S. dollar.
- 7State Street maintained robust regulatory capital ratios, with Common Equity Tier 1 capital at 12.2% and Tier 1 capital at 14.2% under Basel III Advanced Approaches.