10-QPeriod: Q3 FY2024

STATE STREET CORP Quarterly Report for Q3 Ended Sep 30, 2024

Filed October 31, 2024For Securities:STTSTT-PG

Summary

State Street Corporation (STT) reported a robust third quarter of 2024, with significant year-over-year growth in total revenue and earnings per share. Total revenue increased by 21% driven by strong performance in fee revenue and net interest income. Diluted earnings per share saw an impressive 81% increase, primarily attributed to higher total revenue and a notable item in the prior year period. The company demonstrated improved profitability with a pre-tax margin of 28.4% and a return on average common equity of 12.0%. State Street also returned $674 million to shareholders through dividends and share repurchases. The company's Assets Under Custody/Administration (AUC/A) and Assets Under Management (AUM) both saw substantial increases, reflecting positive market conditions and net new business. The company's financial health remains strong, with stable capital ratios, including a CET1 capital ratio of 11.6%. State Street continued to manage its capital proactively through preferred stock issuances and redemptions, as well as senior note issuances. The provision for credit losses increased to $26 million, primarily due to concerns in certain commercial real estate and leveraged loans, alongside macroeconomic factors. Expenses increased by 6%, driven by business investments and performance-related costs, partially offset by productivity savings.

Financial Highlights

37 data points
Beta

Revenue

$3.26B

Net Income

$730.00M

0.2% Net Margin

EPS (Diluted)

$2.26

Total Assets

$338.48B

Cash & Equivalents

$4.07B

Free Cash Flow

$2.47B

Financial Statements
Beta
Revenue$3.26B
Net Income$730.00M
EPS (Basic)$2.29
EPS (Diluted)$2.26
Shares Outstanding (Basic)297.37M
Shares Outstanding (Diluted)301.85M

Key Highlights

  • 1Total revenue increased by 21% to $3.26 billion in Q3 2024 compared to Q3 2023.
  • 2Diluted earnings per share (EPS) grew by 81% to $2.26 in Q3 2024.
  • 3Pre-tax margin improved significantly to 28.4% in Q3 2024, up from 19.0% in Q3 2023.
  • 4Assets Under Custody/Administration (AUC/A) increased 17% year-over-year to $46.76 trillion.
  • 5Assets Under Management (AUM) increased 29% year-over-year to $4.73 trillion.
  • 6Returned $674 million to shareholders through common share repurchases ($450 million) and common stock dividends ($224 million) in Q3 2024.
  • 7CET1 capital ratio remained stable at 11.6% as of September 30, 2024.

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