State Street Q1 2024 Earnings – EPS Up to $1.69

By Tamara Parker • Friday, April 12 10:16 • Permanent Link

State Street Corporation has released its first quarter 2024 earnings report, showing an EPS of $1.37, or $1.69 excluding notable items, marking a significant increase from the previous quarter's $0.55 and a decrease from the first quarter of 2023's $1.52.

Total fee revenue saw a 4% increase from the previous quarter, reaching $2,422 million, and a 4% increase compared to the first quarter of 2023. Management fees experienced a notable 12% increase from the previous quarter, reaching $510 million, and a 12% increase compared to the first quarter of 2023. Front office software and data revenue also saw a substantial 32% increase from the previous quarter, reaching $144 million, and a 32% increase compared to the first quarter of 2023.

The company reported a record $43.9 trillion of assets under custody and/or administration (AUC/A) and a record $4.3 trillion of assets under management (AUM) at quarter-end, both marking a 5% increase from the previous quarter and a 17% and 20% increase, respectively, compared to the first quarter of 2023.

Return on average common equity (ROE) stood at 7.7%, significantly higher than the previous quarter's 3.1% and slightly lower than the first quarter of 2023's 9.3%.

In terms of expenses, total expenses increased by 6% from the previous quarter, primarily driven by a notable item representing an increased FDIC special assessment. Excluding notable items, total expenses increased by 1%, reflecting continued business investments, largely offset by productivity savings.

The company's standardized common equity tier 1 (CET1) ratio at quarter-end stood at 11.1%, marking a 1% point decrease compared to the first quarter of 2023. Liquidity coverage ratio (LCR) for State Street Corporation was approximately 107%, and LCR for State Street Bank and Trust was approximately 130%.

In the first quarter of 2024, State Street returned a total of $308 million of capital to common shareholders, consisting of $100 million of common share repurchases and declared common stock dividends of $208 million.

As a result of these announcements, the company's shares have moved 1.0% on the market, and are now trading at a price of $74.62. For more information, read the company's full 8-K submission here.

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