01—Abstract
Summary
Summary of the 10-Q filed October 30, 2025. Cited figures are marked; the original filing is the authoritative source.
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 $2.78a, 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%b 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 millionc 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.
02—Key points
Key Highlights
- Total revenue increased by 9% to $3.545 billion, driven by an 8% increase in fee revenue.
- Diluted earnings per share (EPS) rose by 23% to $2.78, compared to $2.26 in the prior year's third quarter.
- Assets Under Custody/Administration (AUC/A) grew 10% to $51.66 trillion.
- Assets Under Management (AUM) increased 15% to $5.45 trillion.
- Total expenses increased by 5%, largely due to investments in technology and business capabilities.
- State Street returned $637 million to shareholders through share repurchases ($400 million) and dividends ($237 million).
- Common equity Tier 1 (CET1) capital ratio improved to 11.3%, exceeding the target range.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 30, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $3.54B$3.26B | +8.8% |
| Net Income | $861.00M$730.00M | +17.9% |
| EPS (Basic) | $2.83$2.29 | +23.6% |
| EPS (Diluted) | $2.78$2.26 | +23.0% |
| Shares Outstanding (Basic) | 283.43M297.37M | −4.7% |
| Shares Outstanding (Diluted) | 288.16M301.85M | −4.5% |
05—Questions
Frequently Asked Questions
What were the main drivers of State Street's revenue growth in Q3 2025?
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.
How did State Street manage its expenses during the quarter?
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.
What is State Street's outlook on loan performance and credit provisions?
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.
How has State Street's capital position evolved?
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.
06—Continue