Summary
State Street Corporation's (STT) Q1 2021 filing shows a mixed financial performance. Total revenue saw a modest decline of 4% year-over-year, primarily due to a significant 30% drop in net interest income, driven by lower global interest rates. However, this was partially offset by a 4% increase in total fee revenue, boosted by strong growth in servicing fees (up 7%) and management fees (up 6%), reflecting higher average equity market levels. Diluted Earnings Per Share (EPS) decreased by 15% to $1.37, impacted by lower net interest income and higher expenses. The company continued to manage its capital effectively, returning approximately $659 million to shareholders through dividends and share repurchases. AUC/A and AUM experienced substantial growth, increasing by 26% and 34% respectively, year-over-year, indicating a healthy pipeline of new business and positive market performance. Despite a decrease in capital ratios (CET1 and Tier 1 leverage), State Street remains well-capitalized and focused on strategic initiatives like State Street Alpha.
Financial Highlights
38 data points| Revenue | $2.95B |
| Interest Expense | $4.00M |
| Net Income | $519.00M |
| EPS (Basic) | $1.39 |
| EPS (Diluted) | $1.37 |
| Shares Outstanding (Basic) | 350.74M |
| Shares Outstanding (Diluted) | 355.69M |
Key Highlights
- 1Total revenue decreased by 4% to $2.95 billion, primarily driven by a 30% decline in Net Interest Income (NII).
- 2Total fee revenue increased by 4% to $2.48 billion, led by a 7% rise in servicing fees and a 6% rise in management fees, benefiting from higher market valuations.
- 3Diluted Earnings Per Share (EPS) declined by 15% to $1.37, impacted by lower NII and increased expenses.
- 4Assets Under Custody/Administration (AUC/A) grew 26% year-over-year to $40.26 trillion, and Assets Under Management (AUM) increased by 34% to $3.59 trillion.
- 5The company returned $659 million to shareholders via dividends ($182 million) and share repurchases ($475 million).
- 6CET1 capital ratio decreased to 10.8% and Tier 1 leverage ratio decreased to 5.4%, primarily due to increased risk-weighted assets and capital distributions.
- 7A provision for credit losses of $9 million was released, a favorable change from the $36 million provision in the prior year, reflecting an improved economic outlook.