State Street Corporation Reports 9% Revenue Growth and Increased EPS to $8.21 for 2024

State Street Corporation (STT) reported consolidated total assets of $353.24 billion and total shareholders’ equity of $25.33 billion as of December 31, 2024, with approximately 53,000 employees. Total revenue for the year increased by 9% to $13 billion, driven by a 7% rise in total fee revenue and a 6% increase in net interest income (NII). The increase in total revenue also reflected a prior-year loss on the sale of investment securities. Total expenses decreased by 1% to $9.53 billion, primarily due to productivity savings offsetting higher business investments and revenue-related costs. The company's pre-tax margin improved to 26.1% from 19.4% in 2023, and return on equity increased to 11.1% from 8.2%.

Earnings per share (EPS) rose to $8.21, up from $5.58 in 2023. This increase was primarily attributable to higher total revenue and lower total expenses, with notable items contributing $1.62 to the EPS increase. These notable items in 2024 included a $99 million increase in the FDIC special assessment, a $79 million deferred compensation expense acceleration, and a $66 million gain on the sale of an equity investment. In 2023, notable items included a $294 million loss on the sale of investment securities and a $387 million FDIC special assessment. The company returned approximately $2.2 billion to shareholders through common share repurchases and dividends, compared to $4.6 billion in 2023.

State Street's assets under custody and/or administration (AUC/A) reached $46.56 trillion, an 11% increase from the previous year, primarily due to higher market levels and client flows. Assets under management (AUM) increased by 15% to $4.72 trillion, also driven by higher market levels and net inflows. The company completed the consolidation of its final joint venture in India during 2024, impacting employee headcount which increased by approximately 13% to 53,000 employees. Newly announced asset servicing mandates in 2024 totaled approximately $2.33 trillion in AUC/A, with approximately $2.99 trillion remaining to be installed in future periods.

The company's financial condition is largely influenced by the liabilities generated from its Investment Servicing and Investment Management lines of business. The company's investment securities portfolio, representing approximately 30% of total assets, experienced a pre-tax net unrealized loss of $40 million as of December 31, 2024. State Street noted that it is subject to various regulatory requirements, including Basel III, and that changes in these regulations could materially affect its business and financial results. The company also highlighted several risk factors, including competition, market volatility, credit risk, and regulatory changes. The company's outlook for common share repurchases will continue under the 2024 program.