10-QPeriod: Q2 FY2023

STATE STREET CORP Quarterly Report for Q2 Ended Jun 30, 2023

Filed July 28, 2023For Securities:STTSTT-PG

Summary

State Street Corporation (STT) reported its second quarter 2023 financial results, demonstrating resilience and growth in a dynamic economic environment. The company saw a notable increase in Net Interest Income (NII), up 18% year-over-year, driven by higher market rates and strategic balance sheet positioning. Total revenue grew by 5%, supported by fee revenue that increased 2%, primarily from software, processing fees, and securities finance, partially offset by declines in servicing and management fees. Expenses increased by 5%, largely due to higher compensation, headcount, and business investments, although productivity savings provided some offset. Despite expense pressures, State Street improved its Return on Equity to 13.0% from 12.1% in the prior year's quarter. The company also continued its commitment to shareholder returns, distributing approximately $1.3 billion through dividends and share repurchases, signaling confidence in its financial stability and future prospects. Assets Under Custody/Administration (AUC/A) grew 4% year-over-year, while Assets Under Management (AUM) increased by 9.3%, indicating continued client trust and market engagement.

Financial Highlights

38 data points
Beta

Revenue

$3.11B

Net Income

$763.00M

0.2% Net Margin

EPS (Diluted)

$2.17

Total Assets

$294.56B

Cash & Equivalents

$3.93B

Free Cash Flow

-$1.02B

Financial Statements
Beta
Revenue$3.11B
Interest Expense$1.54B
Net Income$763.00M
EPS (Basic)$2.20
EPS (Diluted)$2.17
Shares Outstanding (Basic)329.38M
Shares Outstanding (Diluted)333.54M

Key Highlights

  • 1Total revenue increased 5% year-over-year to $3.11 billion, driven by an 18% increase in Net Interest Income (NII) to $691 million.
  • 2Fee revenue grew 2% year-over-year to $2.42 billion, with notable increases in software and processing fees (+18%) and securities finance (+9%).
  • 3Diluted Earnings Per Share (EPS) rose 14% to $2.17 compared to the prior year's quarter.
  • 4Return on average common equity improved to 13.0% from 12.1% in the second quarter of 2022.
  • 5The company returned approximately $1.3 billion to shareholders in the second quarter through dividends ($203 million) and share repurchases ($1.05 billion).
  • 6Assets Under Custody and/or Administration (AUC/A) increased 4% to $39.6 trillion, and Assets Under Management (AUM) increased 9.3% to $3.8 trillion.
  • 7Standardized CET1 capital ratio stood at 11.8% as of June 30, 2023.

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