What was the primary driver of State Street's revenue growth in Q1 2026?

State Street's total revenue grew by 16% year-over-year, primarily driven by a 15% increase in total fee revenue and a 17% increase in net interest income. Higher market levels, increased client activity, and favorable foreign currency translation also contributed to the revenue growth.

How did the company's assets under custody and management perform in the quarter?

Assets under custody and/or administration (AUC/A) increased by 17% to $54.52 trillion, and Assets under Management (AUM) grew by 20% to $5.62 trillion. This growth was attributed to higher market levels and positive client flows.

What factors led to the increase in expenses?

Total expenses increased by 15% year-over-year. This was mainly due to the impact of notable items in the current quarter, including repositioning charges ($89 million) and client rescoping ($41 million), which reduced pre-tax income by $130 million. Higher revenue-related costs and continued investments also contributed to the expense increase.

What is the status of State Street's capital ratios?

State Street's Common Equity Tier 1 (CET1) capital ratio was 10.6% and its Tier 1 leverage ratio was 5.4% as of March 31, 2026. These ratios are within the company's target ranges and indicate a strong capital position.

STT/STT-PG 10-Q Quarterly Report Q1 FY2026

Summary

State Street Corporation (STT) reported a strong first quarter for 2026, with significant year-over-year growth across key financial metrics. Total revenue increased by 16% to $3.80 billion, driven by a robust 15% rise in fee revenue and a 17% increase in net interest income. This growth was supported by higher market levels, client activity, and favorable currency translation effects. The company also saw an 11.6% return on average common equity, up from 10.6% in the prior year's quarter, and diluted earnings per share (EPS) rose 22% to $2.49. Despite a 15% increase in total expenses, largely due to notable items including a $130 million reduction in pre-tax income from repositioning and client rescoping charges, State Street maintained healthy profitability. Assets under custody and/or administration (AUC/A) grew 17% to $54.52 trillion, and Assets under Management (AUM) increased by 20% to $5.62 trillion, reflecting continued client trust and market appreciation. The company also returned $633 million to shareholders through dividends and share repurchases, demonstrating a commitment to capital return while managing its capital ratios, which remain within target ranges.

Key Highlights

1Total revenue surged 16% year-over-year to $3.80 billion, driven by strong performance in both fee revenue and net interest income.
2Diluted Earnings Per Share (EPS) grew 22% to $2.49, indicating improved profitability.
3Assets Under Custody and/or Administration (AUC/A) increased by 17% to $54.52 trillion, and Assets Under Management (AUM) rose 20% to $5.62 trillion, reflecting market appreciation and client inflows.
4Net Interest Income (NII) saw a significant 17% increase, benefiting from a wider Net Interest Margin (NIM).
5Return on Average Common Equity improved to 11.6% from 10.6% in the prior year's quarter.
6Total expenses increased 15%, impacted by notable items totaling $130 million, including repositioning and client rescoping charges.
7State Street returned $633 million to shareholders via common share repurchases and dividends, with dividends per common share increasing 11%.

STATE STREET CORP Quarterly Report for Q1 Ended Mar 31, 2026

Summary

Key Highlights

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