Summary
State Street Corporation reported mixed financial results for the first quarter of 2024. Total revenue saw a slight increase of 1% year-over-year, driven by a 4% rise in fee revenue, which was partially offset by a 7% decline in net interest income. The decrease in net interest income was primarily attributed to a shift in deposit mix towards interest-bearing deposits and lower average non-interest-bearing deposit balances, despite higher average interest rates. Total expenses increased by 6%, significantly impacted by a $130 million increase in the FDIC special assessment, which alone contributed approximately 5 percentage points to the expense growth. Excluding this assessment, expense growth was more moderate, driven by business investments largely offset by productivity savings. Diluted earnings per share decreased by 10% to $1.37, primarily due to the FDIC assessment's impact. The company continued its capital return program, increasing dividends per share by 10% and repurchasing $100 million in common stock.
Financial Highlights
38 data points| Revenue | $3.14B |
| Interest Expense | $2.17B |
| Net Income | $463.00M |
| EPS (Basic) | $1.38 |
| EPS (Diluted) | $1.37 |
| Shares Outstanding (Basic) | 301.99M |
| Shares Outstanding (Diluted) | 305.94M |
Key Highlights
- 1Total revenue increased 1% to $3.14 billion, primarily driven by a 4% increase in fee revenue, while net interest income decreased 7%.
- 2Fee revenue growth was led by a 12% increase in management fees and a 25% increase in software and processing fees, while servicing fees increased 1% and FX trading services revenue decreased 3%.
- 3Total expenses rose 6% to $2.51 billion, largely due to a $130 million FDIC special assessment which impacted EPS by $0.32.
- 4Diluted EPS decreased 10% to $1.37, reflecting the impact of the FDIC special assessment and higher expenses.
- 5Assets Under Custody/Administration (AUC/A) increased 17% to $43.91 trillion, and Assets Under Management (AUM) increased 20% to $4.34 trillion, reflecting higher market levels and net new business.
- 6State Street returned $308 million to shareholders through dividends ($208 million) and share repurchases ($100 million).
- 7The Common Equity Tier 1 (CET1) capital ratio was 11.1%, and the Tier 1 leverage ratio was 5.4%, both within or above the company's target ranges.