10-QPeriod: Q3 FY2025

STATE STREET CORP Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 30, 2025For Securities:STTSTT-PG

Summary

State Street Corporation reported a solid third quarter for 2025, demonstrating growth across its key financial metrics. Total revenue increased by 9% year-over-year, primarily driven by an 8% rise in fee revenue, reflecting strong performance in servicing, management, and foreign exchange trading services. Diluted earnings per share (EPS) saw a significant increase of 23%, reaching $2.78, up from $2.26 in the prior year's third quarter. This growth was supported by improved pre-tax margins and a higher return on average common equity. The company's AUC/A and AUM also showed robust growth, increasing by 10% and 15% respectively, compared to the same period in the prior year. This expansion was attributed to higher market levels and positive client flows. State Street continued its commitment to shareholder returns, repurchasing $400 million of common stock and increasing its common stock dividend by 11% on a per-share basis. Capital ratios remain strong, with CET1 capital ratio improving to 11.3%, well within the company's target range.

Financial Highlights

36 data points
Beta

Revenue

$3.54B

Net Income

$861.00M

24.3% Net Margin

EPS (Diluted)

$2.78

Total Assets

$371.07B

Cash & Equivalents

$4.76B

Free Cash Flow

$7.66B

Financial Statements
Beta
Revenue$3.54B
Net Income$861.00M
EPS (Basic)$2.83
EPS (Diluted)$2.78
Shares Outstanding (Basic)283.43M
Shares Outstanding (Diluted)288.16M

Key Highlights

  • 1Total revenue increased by 9% to $3.545 billion, driven by an 8% increase in fee revenue.
  • 2Diluted earnings per share (EPS) rose by 23% to $2.78, compared to $2.26 in the prior year's third quarter.
  • 3Assets Under Custody/Administration (AUC/A) grew 10% to $51.66 trillion.
  • 4Assets Under Management (AUM) increased 15% to $5.45 trillion.
  • 5Total expenses increased by 5%, largely due to investments in technology and business capabilities.
  • 6State Street returned $637 million to shareholders through share repurchases ($400 million) and dividends ($237 million).
  • 7Common equity Tier 1 (CET1) capital ratio improved to 11.3%, exceeding the target range.

Frequently Asked Questions

State Street's revenue growth was primarily driven by an 8% increase in fee revenue, with notable contributions from higher servicing fees (up 7%), management fees (up 16%), and foreign exchange trading services revenue (up 11%). These increases were supported by higher average market levels, net new business, and increased client activity.

Total expenses increased by 5% year-over-year, primarily due to investments in technology and business capabilities, along with higher revenue-related costs and the impact of currency translation. Despite the increase, the company also benefited from productivity and vendor savings.

The provision for credit losses decreased to $9 million in Q3 2025 from $26 million in Q3 2024. This decrease was primarily attributed to the evolving macroeconomic environment, though the company noted an increase in loan loss reserves associated with leveraged and commercial real estate loans, particularly those collateralized by office buildings.

State Street's capital position remains strong. The Common Equity Tier 1 (CET1) capital ratio increased to 11.3% as of September 30, 2025, from 10.9% as of December 31, 2024. The Tier 1 leverage ratio also improved to 5.6% from 5.2%. These improvements were driven by capital generated from earnings, with target ranges being maintained.