State Street Corporation at the heart of Canary Wharf financial district on 5th November 2024 in ... [+] London, United Kingdom. (photo by Mike Kemp/In Pictures via Getty Images)In Pictures via Getty ImagesState Street’s stock (NYSE: STT) , a company that provides a variety of financial services to institutional investors, posted a better-than-expected set of Q4 2024 results. The stock has gained about 30% since early 2024, marginally ahead of the S&P 500, although it considerably underperformed rival Bank ...

State Street Corporation (NYSE:STT) Q4 2024 Q&A Earnings Call January 22, 2025 12:00 PM ET Company Participants Elizabeth Lynn - Head of IR Ron O'Hanley - CEO Eric Aboaf - CFO Mark Keating - EVP and Investment Services CFO Conference Call Participants Jim Mitchell - Seaport Mike Mayo - Wells Fargo Glenn Schorr - Evercore Brian Bedell - Deutsche Bank Brennan Hawken - UBS Gerard Cassidy - RBC Vivek Juneja - JPMorgan David Smith - Truist Operator Hello, and welcome to the continuation of State Street Corporati ...

Shares of State Street (NYSE: STT ) have been a strong performer over the past year, adding 30% as the company has benefited from fewer than feared rate cuts and rising asset levels. I last covered shares in April , ratingOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Discl ...

NYSE: STT January 17, 2025 1 All comparisons are to corresponding prior year period unless otherwise noted FY2024 Highlights 4Q24 Highlights Investment Servicing Investment Management Markets & Financing • In 2024, strong FX Trading volumes up ~15% YoY; average loans up 14% YoY Strategic initiatives A These are non-GAAP presentations; refer to the Appendix for a reconciliation of ex-notable items and further explanations of non-GAAP measures. Refer to the Appendix included with this presentation for endnote ...

Earnings Performance - State Street's Q4 2024 adjusted earnings of $2.60 per share beat the Zacks Consensus Estimate of $2.42 and increased 27.5% YoY [1] - For 2024, adjusted earnings of $8.67 per share surpassed the consensus estimate of $8.50 and grew 13.2% YoY [4] - Net income available to common shareholders (GAAP) was $2.48 billion in 2024, up 36.4% from 2023 [4] Revenue Growth - Q4 2024 total revenues of $3.41 billion increased 12.1% YoY and beat the consensus estimate of $3.31 billion [5] - 2024 total revenues grew 8.8% to $13 billion, surpassing the consensus estimate of $12.96 billion [5] - NII in Q4 2024 was $749 million, up 10.5% YoY, driven by higher investment securities yields and loan growth [6] - Total fee revenues in Q4 2024 increased 12.6% YoY to $2.66 billion, beating the estimate of $2.46 billion [6] Expense Management - Non-interest expenses (GAAP basis) in Q4 2024 were $2.44 billion, down 13.5% YoY, mainly due to the absence of the FDIC special assessment charge [7] - Adjusted expenses in Q4 2024 rose 8.2% to $2.38 billion, higher than the estimate of $2.31 billion [7] - Provision for credit losses in Q4 2024 was $12 million, down 40% from the projected $21.3 million [7] Asset Balances - Total AUC/A as of Dec 31, 2024, was $46.56 trillion, up 11.4% YoY, driven by higher equity market levels and client flows [9] - AUM as of Dec 31, 2024, was $4.72 trillion, up 14.9% YoY, primarily due to higher market levels and net inflows [9] Capital and Shareholder Returns - Common Equity Tier 1 ratio was 10.9% as of Dec 31, 2024, compared to 11.6% in 2023 [8] - Return on average common equity was 12.7% in Q4 2024, up from 3.1% in the year-ago quarter [8] - State Street repurchased shares worth $550 million in Q4 2024 [10] Peer Performance - Bank of New York Mellon's Q4 2024 adjusted earnings of $1.72 per share beat the consensus estimate of $1.56 and increased 33.3% YoY [12] - JPMorgan's Q4 2024 earnings of $4.81 per share surpassed the consensus estimate of $4.03, driven by strong capital markets and mortgage banking performance [13] Outlook - State Street expects NII to be roughly flat and fee income to grow 3-5% in 2025 [2] - Despite a weak 2025 outlook, higher interest rates and solid business servicing wins are expected to support State Street's financials [11]

Financial Performance - State Street Corporation reported $3.41 billion in revenue for Q4 2024, a 12.1% YoY increase [1] - EPS for the quarter was $2.60, compared to $2.04 a year ago [1] - Revenue surpassed Zacks Consensus Estimate by 3.17% ($3.31 billion) [1] - EPS exceeded consensus estimate by 7.44% ($2.42) [1] Key Metrics Analysis - Basel III Advanced Approaches - Tier 1 Leverage Ratio: 5.2% vs 5.3% estimate [4] - Net interest margin (FTE): 1.1% vs 1.1% estimate [4] - Average balance - Total interest-earning assets: $278.53 billion vs $265.70 billion estimate [4] - Basel III Standardized Approach - Tier 1 capital ratio: 13.2% vs 13.4% estimate [4] - Assets under Management (AUM): $4,715 billion vs $4,785.94 billion estimate [4] - Basel III Standardized Approach - Total capital ratio: 14.8% vs 14.4% estimate [4] - Assets under Custody and/or Administration (AUC/A): $46,557 billion vs $40,312.27 billion estimate [4] - Net Interest Income: $749 million vs $734.49 million estimate [4] - Total fee revenue: $2.66 billion vs $2.58 billion estimate [4] - Net Interest Income - fully taxable-equivalent basis: $749 million vs $735.50 million estimate [4] - Software and processing fees: $259 million vs $234.64 million estimate [4] - Other fee revenue: $66 million vs $50.98 million estimate [4] Stock Performance - State Street shares returned +5.3% over the past month [3] - Zacks S&P 500 composite showed -2.1% change during the same period [3] - The stock currently has a Zacks Rank 3 (Hold) [3] Market Insights - Investors focus on YoY changes in revenue and earnings to determine investment strategies [2] - Key metrics provide better insight into a company's underlying performance [2] - Comparing metrics with year-ago numbers and analyst estimates helps project stock price performance [2]

Earnings Performance - State Street Corporation reported quarterly earnings of $2 60 per share, beating the Zacks Consensus Estimate of $2 42 per share, representing a 7 44% earnings surprise [1] - The company's earnings per share (EPS) increased from $2 04 a year ago to $2 60, reflecting strong year-over-year growth [1] - Over the last four quarters, the company has consistently surpassed consensus EPS estimates [2] Revenue Performance - State Street posted revenues of $3 41 billion for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 3 17% [2] - Year-over-year revenue growth was notable, increasing from $3 04 billion to $3 41 billion [2] - The company has topped consensus revenue estimates in each of the last four quarters [2] Stock Performance and Market Comparison - State Street shares have gained approximately 2 4% since the beginning of the year, outperforming the S&P 500's gain of 1% [3] - The stock's immediate price movement will depend on management's commentary during the earnings call [3] Earnings Outlook and Estimate Revisions - The current consensus EPS estimate for the coming quarter is $1 94 on $3 27 billion in revenues, while the fiscal year estimate is $9 55 on $13 39 billion in revenues [7] - The estimate revisions trend for State Street is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected market-aligned performance [6] - Empirical research highlights a strong correlation between near-term stock movements and earnings estimate revisions [5] Industry Context - State Street operates in the Zacks Banks - Major Regional industry, which is currently ranked in the top 26% of over 250 Zacks industries [8] - The top 50% of Zacks-ranked industries historically outperform the bottom 50% by more than 2 to 1 [8] Peer Comparison - Fifth Third Bancorp (FITB), another company in the same industry, is expected to report quarterly earnings of $0 87 per share, reflecting a year-over-year decline of 12 1% [9] - Fifth Third Bancorp's revenue is projected at $2 21 billion, up 2 4% from the year-ago quarter [10] - The consensus EPS estimate for Fifth Third Bancorp has been revised 0 3% higher over the last 30 days [9]

Exhibit 99.2 STATE STREET CORPORATION EARNINGS RELEASE ADDENDUM December 31, 2024 Table of Contents | GAAP-Basis Financial Information: | | --- | | 5-Year Summary of Results | 2 | | --- | --- | | Consolidated Results of Operations | 3 | | Consolidated Statement of Condition | 5 | | Average Statement of Condition - Rates Earned and Paid - Fully Taxable-Equivalent Basis | 6 | | Average Statement of Condition - Rates Earned and Paid - Fully Taxable-Equivalent Basis - Year-to-Date | 7 | | Selected Average Balan ...

Earnings Announcement and Expectations - State Street (STT) is scheduled to announce Q4 and full-year 2024 results on Jan 17, with expected year-over-year growth in revenues and earnings [1] - The company has a strong earnings surprise history, beating the Zacks Consensus Estimate in each of the trailing four quarters with an average surprise of 10.63% [3] - The Zacks Consensus Estimate for Q4 earnings is $2.42 per share, revised upward by 3% over the past seven days, implying an 18.6% rise from the year-ago quarter [3] - The consensus estimate for Q4 sales is $3.32 billion, suggesting 9.2% year-over-year growth [3] Net Interest Income (NII) and Lending Activities - The Federal Reserve reduced interest rates by 100 basis points since September 2024, positively impacting STT's NII by alleviating funding cost pressure [4] - The yield curve steepened and then normalized during Q4, aiding NII through asset repricing [4] - The Zacks Consensus Estimate for average interest-earning assets is $265.7 billion, a 1.4% fall from the previous quarter [5] - Lending activities improved in Q4, supporting NII to some extent [5] - The Zacks Consensus Estimate for NII (FTE basis) is $734.5 million, indicating a sequential rise of 1.6% [6] Fee Revenues and Market Impact - Higher volatility and volume in FX markets likely boosted STT's FX trading services income, with the dollar strengthening after the presidential election and interest rate cuts [7] - The consensus estimate for FX trading services income is $359.9 million, suggesting a 3.8% fall from the last quarter [7] - The consensus estimate for management fees is $530.9 million, implying a marginal sequential increase [8] - The Zacks Consensus Estimate for servicing fees is $1.28 billion, indicating marginal growth [8] - The consensus estimate for software and processing fees suggests a 12.8% increase to $234.6 million [8] - The Zacks Consensus Estimate for securities finance revenues is $110.1 million, suggesting a 5.1% decline [9] - The Zacks Consensus Estimate for total fee revenues is $2.6 billion, indicating a 1.5% decline from the prior quarter [9] Expenses and Operational Efficiency - Higher information systems and communication expenses, inflationary pressure, and strategic buyouts are expected to have increased operating expenses in Q4 [10] - Management's efforts to streamline the business model to enhance operating efficiency are expected to have increased expenses [11] - Total adjusted non-interest expenses are anticipated to be $2.31 billion [11] 2024 Outlook - Management expects to achieve $350-$400 million of servicing fee sales in 2024 [12] - Total fee revenues are anticipated to be at or slightly above the higher end of the 4-5% range, driven by a solid start to the year and higher average market levels [12] - Servicing fees and management fees are projected to increase due to steady business momentum and higher market levels [12] - NII is estimated to grow 4-5%, supported by management actions [13] - The average deposit balance is expected to remain at the Q2 2024 level in the second half of the year [13] - Adjusted expenses are anticipated to rise roughly 3.5% due to projected revenue-related costs [13] - Common equity tier 1 and Tier 1 leverage ratios are expected to be 10-11% and 5.25-5.75%, respectively [13] Earnings Model and Other Bank Stocks - The likelihood of State Street beating the Zacks Consensus Estimate is high due to a positive Earnings ESP of +0.67% and a Zacks Rank 3 (Hold) [14][15] - First Horizon Corporation (FHN) has an Earnings ESP of +3.18% and a Zacks Rank 2 (Buy), with Q4 and full-year 2024 results expected on Jan 16 [16] - Regions Financial Corporation (RF) has an Earnings ESP of +0.61% and a Zacks Rank 3, with Q4 and full-year 2024 earnings expected on Jan 17 [17]

Analysts on Wall Street project that State Street Corporation (STT) will announce quarterly earnings of $2.42 per share in its forthcoming report, representing an increase of 18.6% year over year. Revenues are projected to reach $3.31 billion, increasing 8.7% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 2.4% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections durin ...