State Street (STT) Reports 57% EPS Increase

By Tamara Parker • Tuesday, July 16 15:18 • Permanent Link

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.

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