State Street Corp Q2 2025 Financial Results

By Tamara Parker • Tuesday, July 15 10:23 • Permanent Link

State Street Corporation has reported its financial results for the second quarter of 2025, showing a strong performance across various metrics. Here are the key highlights:

Earnings per share (EPS) for the quarter were reported at $2.17, which increased by 6% compared to the previous quarter and 1% compared to the same period last year.
Total fee revenue for the quarter was $2.719 billion, marking a 6% increase from the previous quarter and an 11% increase from the second quarter of 2024.
The company reported a record $49 trillion of assets under custody and/or administration (AUC/A) and a record $5 trillion of assets under management (AUM). AUC/A increased by 5% compared to the previous quarter and 11% compared to the second quarter of 2024, while AUM increased by 10% compared to the previous quarter and 17% compared to the second quarter of 2024.
Investment management net inflows were reported at $82 billion for the quarter.
The total operating leverage was (341) basis points, while excluding notable items, it was 241 basis points. Fee operating leverage was (75) basis points, and 526 basis points, excluding notable items.
The pre-tax margin was reported at 26%, or 30% excluding notable items.
The standardized common equity tier 1 (CET1) ratio at quarter-end was 10.7%, down 0.5% compared to the second quarter of 2024.
Total expenses increased by 11% compared to the previous quarter, primarily driven by workforce rationalization and alpha-related client rescoping notable items.
State Street returned a total of $517 million of capital to common shareholders in the second quarter of 2025, including $300 million of share repurchases and $217 million of declared dividends.
The company announced a planned 11% increase in its quarterly common stock dividend to $0.84 per share in the third quarter of 2025.

The company's chairman and CEO, Ron O'Hanley, highlighted the strong financial results and continued business momentum, stressing the robust fee revenue growth and ongoing expense management. He also emphasized the sixth straight quarter of positive year-over-year total operating leverage and the company's focus on disciplined execution to drive positive results.

The market has reacted to these announcements by moving the company's shares 0.43% to a price of $110.03. For the full picture, make sure to review STATE STREET CORP's 8-K report.

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