Summary
State Street Corporation (STT) reported a strong first quarter of 2018, demonstrating significant growth across key financial metrics compared to the prior year's first quarter. Total revenue surged by 13% to $3,019 million, driven by a robust 29% increase in Net Interest Income (NII) to $658 million, largely attributed to higher U.S. interest rates and disciplined liability pricing. Fee revenue also saw a healthy 8% increase to $2,363 million, propelled by strong performance in servicing and management fees, benefiting from higher global equity markets and new business wins. Diluted Earnings Per Share (EPS) grew an impressive 41% to $1.62, and Return on Average Common Equity (ROE) improved to 12.8% from 9.9%. Despite an 8% increase in total expenses, primarily due to investments in new business and compensation costs, the company maintained positive operating leverage. State Street also actively managed its capital, returning value to shareholders through an 11% increase in common stock dividends and substantial share repurchases.
Financial Highlights
36 data points| Revenue | $3.06B |
| Interest Expense | $214.00M |
| Net Income | $659.00M |
| EPS (Basic) | $1.64 |
| EPS (Diluted) | $1.62 |
| Shares Outstanding (Basic) | 367.44M |
| Shares Outstanding (Diluted) | 372.62M |
Key Highlights
- 1Total revenue increased 13% year-over-year to $3.019 billion.
- 2Net Interest Income (NII) grew 29% year-over-year to $658 million, driven by higher U.S. interest rates.
- 3Diluted Earnings Per Share (EPS) increased 41% year-over-year to $1.62.
- 4Return on Average Common Equity (ROE) improved to 12.8% from 9.9% in the prior year.
- 5Total expenses increased 8% year-over-year, primarily due to investments in new business and compensation.
- 6Servicing fees increased 10% and Management fees increased 24%, reflecting strong market conditions and new business.
- 7State Street returned $154 million in common stock dividends and repurchased $350 million in common stock during the quarter.