State Street Corporation has reported its third-quarter 2025 earnings per share (EPS) as $2.78, reflecting a 23% increase from the same period last year. The company's total revenue for the third quarter of 2025 was $3.5 billion, marking a 9% increase year-over-year. The pre-tax margin also saw a significant improvement, rising to 31.1% compared to 28.4% in the third quarter of 2024.
The company's assets under custody and/or administration (AUC/A) reached a record $51.7 trillion, exhibiting a 10% increase from the same period last year. Additionally, its assets under management (AUM) surged to a record $5.4 trillion, reflecting a robust 15% year-over-year growth.
State Street Corporation's financial performance was further highlighted by its return on average common equity (ROE) which stood at 13.4%, marking a substantial increase from 12.0% in the third quarter of 2024.
In terms of business wins, the company secured new servicing fee revenue wins of $47 million and new servicing AUC/A wins of $361 billion during the third quarter of 2025. Moreover, State Street Corporation's investment management business displayed notable momentum, launching 39 new products during the same period.
From a revenue perspective, the company reported a notable 16% increase in management fees, which contributed to the overall 8% growth in fee revenue. Excluding notable items, fee revenue saw an even more substantial 12% increase.
On the expense side, total expenses increased by 5%, primarily driven by investments in technology and business capabilities, revenue-related costs, and the impact of currency translation. This increase was reflected in various expense categories, including compensation and employee benefits, information systems and communications, and transaction processing services.
The company also demonstrated a strong commitment to returning value to its shareholders, with $637 million of capital returned to common shareholders in the third quarter through repurchases and dividends. State Street Corporation increased its quarterly per-share common stock dividend by 11% to $0.84.
Overall, State Street Corporation's third-quarter 2025 financial results underscore its strong performance, driven by disciplined execution against its strategic priorities, as it continues to innovate and enhance its client capabilities.
The market has reacted to these announcements by moving the company's shares -3.22% to a price of $112.95. If you want to know more, read the company's complete 8-K report here.
