STT

State Street (STT) Reports 57% EPS Increase

State Street Corporation has reported its second quarter 2024 earnings per share (EPS) at $2.15, representing a substantial 57% increase compared to the same period last year. The return on average common equity (ROE) stood at 11.9%, showing an improvement of 4.2 percentage points year-over-year. Additionally, the pre-tax margin was reported at 28.6%, reflecting a 9.5 percentage point increase compared to the second quarter of 2023.

The company reported a record $44.3 trillion of assets under custody and/or administration (AUC/A) and a record $4.4 trillion of assets under management (AUM) as of the second quarter of 2024. This represents a 12% and 16% increase year-over-year, respectively.

In terms of revenue, total revenue saw a 3% increase year-over-year, driven by a 6% growth in net interest income and a 2% growth in fee revenue, with management fees specifically showing a remarkable 11% increase.

State Street Corporation also shared insights into its new business and strategy execution. This includes new servicing fee revenue wins of $72 million and new servicing AUC/A wins of $291 billion in the second quarter of 2024. The company also highlighted the progress of its State Street Alpha® product, which gained momentum with 1 new mandate win in the second quarter, bringing the total to 3 mandate wins year-to-date, with 2 mandates going live in the same period.

The company's financial position also remained strong, as evidenced by its standardized common equity tier 1 (CET1) ratio at quarter-end of 11.2%, although it decreased by 0.6 percentage points compared to the second quarter of 2023. State Street Corporation returned a total of $407 million of capital to shareholders in the second quarter of 2024, consisting of $200 million of common share repurchases and declared common stock dividends of $207 million, representing a planned 10% increase to its quarterly common stock dividend.

The market has reacted to these announcements by moving the company's shares 6.4% to a price of $83.98. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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