Summary
State Street Corporation reported a solid first quarter of 2022, with diluted earnings per share (EPS) of $1.57, a 15% increase year-over-year. Total revenue grew 4% to $3.08 billion, primarily driven by a 4% increase in fee revenue and a 9% rise in net interest income. This performance was supported by higher average equity market levels and net inflows into ETFs, contributing to a 5% increase in management fees. The company also saw growth in foreign exchange trading services and software/processing fees. Despite a challenging global market environment influenced by the war in Ukraine, State Street maintained a low direct financial exposure to Russia. The company's Assets Under Custody/Administration (AUC/A) increased by 4% to $41.72 trillion, and Assets Under Management (AUM) grew by 12% to $4.02 trillion, reflecting higher market levels and positive client flows. However, the company has paused its common share repurchase program due to net unrealized losses on available-for-sale securities, impacting its capital ratios. State Street's Common Equity Tier 1 (CET1) capital ratio decreased to 11.9% from 14.3% at the end of 2021, largely due to market-driven impacts on its investment portfolio.
Financial Highlights
38 data points| Revenue | $3.08B |
| Interest Expense | $12.00M |
| Net Income | $604.00M |
| EPS (Basic) | $1.59 |
| EPS (Diluted) | $1.57 |
| Shares Outstanding (Basic) | 366.54M |
| Shares Outstanding (Diluted) | 372.04M |
Key Highlights
- 1Diluted EPS increased 15% year-over-year to $1.57.
- 2Total revenue grew 4% to $3.08 billion, driven by fee revenue and net interest income.
- 3AUC/A increased 4% to $41.72 trillion, and AUM grew 12% to $4.02 trillion.
- 4Management fees rose 5% due to higher equity market levels and ETF inflows.
- 5The company has suspended its common share repurchase program.
- 6CET1 capital ratio decreased to 11.9% from 14.3% due to market conditions impacting AFS securities.
- 7State Street maintained a very low direct financial exposure to Russia.