Financial Data and Key Metrics Changes - The company reported quarterly earnings per share of $2.78, an increase of 23% year over year [6] - Total revenue increased by 9% year over year to approximately $3.5 billion, with fee revenue growth of nearly 12% excluding notable items [16] - Pre-tax margin expanded to 31%, and return on tangible common equity was 21%, up 160 basis points year over year [17] Business Line Data and Key Metrics Changes - Servicing fees increased by 7% year over year, driven by higher average market levels and net new business [17] - Management fees rose by 16% year over year to a record $612 million, supported by higher average market levels and net inflows [19] - Securities finance revenues increased by 19% year over year, driven by robust balance growth across both Agency Lending and Prime Services [22] Market Data and Key Metrics Changes - Assets under management (AUM) reached a record $5.4 trillion, up 15% year over year [19] - The company ended the quarter with a record $51.7 trillion in assets under custody and administration (AUCA), increasing by 10% year over year [17] - FX trading revenue increased by 16% year over year, with client volumes up 11% [21] Company Strategy and Development Direction - The company is focused on product innovation and enhancing capabilities to better serve clients, with strategic initiatives launched in the third quarter [7] - A strategic partnership with Apex Fintech Solutions aims to expand wealth services offerings, enhancing digital custody and clearing solutions [10] - The company is positioning itself as a bridge between traditional and digital finance, with plans to launch a digital asset platform [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting strong deposit flows and expectations for net interest income (NII) to improve in the fourth quarter [36] - The company anticipates total fee revenue growth in the range of 8.5% to 9% for 2025, an improvement from previous guidance [27] - Management emphasized the importance of ongoing productivity initiatives and technology investments to support future growth [25] Other Important Information - The company returned nearly $1.5 billion in capital to shareholders year to date, including $637 million in the third quarter [13] - The quarterly common stock dividend was increased by 11% to $0.84 [13] - The standardized CET1 ratio was 11.3% at quarter end, reflecting capital generated from earnings [26] Q&A Session Summary Question: Thoughts on balance sheet management and operating dynamics - Management is focused on driving execution and profitability, with opportunities for optimization in balance sheet management [31][34] Question: Expectations for net interest income (NII) improvement - NII is expected to improve due to stable deposit levels and non-rate related tailwinds, including the reinvestment of cash flows at higher rates [37][40] Question: Insights on institutional outflows and aspirations outside core footprint - Flows were positive, but there were some outflows from institutional clients. The company is broadening its active management footprint selectively [51][54] Question: Underperformance of State Street stock compared to peers - Management believes the fee-based tailwinds and core growth opportunities are underappreciated, with a focus on improving shareholder value [60][62] Question: Flexibility in expense management and operating leverage - Management has discretionary levers to maintain positive operating leverage, even in a downturn, while continuing to invest strategically [90][93]

Financial Performance Highlights - Total revenue reached $3.5 billion, a 9% increase year-over-year[4, 11] - Fee revenue totaled $2.8 billion, up 8% or 12% excluding notable items[4, 11] - Net interest income (NII) was $715 million, a decrease of 1%[7, 11] - Total expenses amounted to $2.4 billion, a 5% increase[4, 11] - Pre-tax margin stood at 31.1%, and Return on Tangible Common Equity (ROTCE) was 20.9%[4, 11] - Earnings per share (EPS) increased by 23% to $2.78[4, 7] Business Segment Performance - Investment Services achieved a record Assets Under Custody and/or Administration (AUC/A) of $51.7 trillion at quarter-end, with $361 billion in AUC/A wins[4] - Investment Management reported record Assets Under Management (AUM) of $5.4 trillion at quarter-end, with total net inflows of $26 billion[4] - Foreign exchange (FX) trading services revenue was $416 million, up 16% year-over-year[7, 30] - Securities finance revenue reached $138 million, a 19% increase year-over-year[7, 31] - Software and processing fees were $227 million, up 9% year-over-year[7, 36] Capital Management - Capital returned to shareholders totaled $637 million, representing a payout ratio of 79%[4, 59] - The Common Equity Tier 1 (CET1) ratio was 11.3% at quarter-end[4, 59]

Core Insights - State Street Corporation (NYSE: STT) has seen a 22% increase in share price over the past year, driven by elevated market levels and strong operating efficiencies [1] Company Performance - The company has benefited from favorable market conditions, contributing to its solid stock performance [1] Analyst Perspective - The analysis is based on over fifteen years of experience in making contrarian bets and identifying stock-specific turnaround stories for achieving outsized returns [1]

Core Insights - State Street Corporation (NYSE: STT) has seen a 22% increase in share price over the past year, attributed to elevated market levels and strong operating efficiencies [1] Company Performance - The company has benefited from favorable market conditions, leading to solid stock performance [1] - Strong operating efficiencies have contributed to the overall growth of the company [1] Analyst Perspective - The analysis is based on over fifteen years of experience in making contrarian bets and stock-specific turnaround stories [1]

Core Insights - State Street Corporation (STT) reported quarterly earnings of $2.78 per share, exceeding the Zacks Consensus Estimate of $2.62 per share, and showing an increase from $2.26 per share a year ago, resulting in an earnings surprise of +6.11% [1][2] - The company generated revenues of $3.55 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.20% and up from $3.34 billion year-over-year [2] - State Street shares have increased approximately 15.1% year-to-date, outperforming the S&P 500's gain of 12.7% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.83, with expected revenues of $3.56 billion, and for the current fiscal year, the EPS estimate is $9.99 on revenues of $13.77 billion [7] - The estimate revisions trend for State Street was favorable prior to the earnings release, leading to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Banks - Major Regional industry, to which State Street belongs, is currently ranked in the top 21% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Core Insights - The financial services provider for institutional investors reported an increase in both revenue and net income for the third quarter, driven by widespread growth in fee revenues [1] Financial Performance - The company achieved higher top-line results, indicating an increase in total revenue for the third quarter [1] - The bottom line also improved, reflecting a rise in net income during the same period [1] - The growth in revenue was primarily attributed to broad-based increases in fee revenue [1]

Group 1: U.S.-China Trade Relations - President Trump indicated that a 100% tariff on China is "not sustainable," suggesting a potential easing of trade tensions ahead of an anticipated meeting with Chinese counterparts [2][7] - White House Economic Adviser Kevin Hassett acknowledged China's "little bit of leverage" but asserted that further retaliatory actions would ultimately hurt China more [2] Group 2: U.S. Economic Outlook - Kevin Hassett expressed confidence in sustained 4% U.S. economic growth, stating there is "no reason" it can't continue [2][7] - Hassett signaled that expected Federal Reserve rate cuts are just the beginning, indicating potential for further easing [2][7] Group 3: Corporate Earnings - State Street Corporation (STT) reported strong third-quarter 2025 earnings, with an adjusted EPS of $2.78, exceeding estimates of $2.66, on revenues of $3.55 billion, which also beat the $3.47 billion estimate [2][7] - The company's assets under management (AUM) reached $5.41 trillion, and it reported a credit loss provision of $9 million and a return on equity (ROE) of 13.4% [2] Group 4: Regulatory Developments - The UK's Competition and Markets Authority (CMA) is set to release Google (GOOGL) from its Privacy Sandbox commitments, a move that could reshape the digital advertising landscape [3][7] Group 5: Global Investment Trends - Abu Dhabi conglomerate IHC announced a massive expansion plan, committing to spend $36 billion every 18 months, underscoring the company's growth ambitions [4][7]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Core Insights - State Street Corporation reported its third-quarter 2025 financial results, indicating ongoing performance metrics and financial health [1] Financial Results - The financial results for the third quarter of 2025 can be accessed through State Street's Investor Relations website, providing transparency and detailed information for stakeholders [1] - A conference call is scheduled for October 17, 2025, at 11:00 a.m. ET to discuss the financial results and future outlook, which will be open to the public [1]

GAAP-Basis Financial Information [4-Year Summary of Results](index=2&type=section&id=4-Year%20Summary%20of%20Results) This section provides a four-year overview of State Street Corporation's key financial results from 2021 to 2024, including total revenue, net income, diluted earnings per common share, and significant balance sheet items like total assets and deposits, along with critical ratios such as return on average common equity and regulatory capital ratios 4-Year Financial Summary (2021-2024) | Metric | 2021 | 2022 | 2023 | 2024 | | :----------------------------------- | :------- | :------- | :------- | :------- | | Total revenue (millions) | $12,027 | $12,148 | $11,945 | $13,000 | | Net income (millions) | $2,693 | $2,774 | $1,944 | $2,687 | | Diluted earnings per common share | $7.19 | $7.19 | $5.58 | $8.21 | | Total assets (millions) | $299,743 | $286,430 | $274,696 | $311,723 | | Total deposits (millions) | $235,404 | $222,874 | $205,111 | $225,611 | | Assets under custody and/or administration (trillions) | $43.68 | $36.74 | $41.81 | $46.56 | | Assets under management (trillions) | $4.14 | $3.48 | $4.13 | $4.72 | | Return on average common equity | 10.7 % | 11.1 % | 8.2 % | 11.1 % | | Pre-tax margin | 26.4 % | 27.4 % | 19.4 % | 26.1 % | | Common equity tier 1 ratio | 14.3 % | 13.6 % | 11.6 % | 10.9 % | [Consolidated Results of Operations](index=3&type=section&id=Consolidated%20Results%20of%20Operations) The consolidated results of operations detail quarterly and year-to-date financial performance, showing an 8.8% increase in total revenue for 3Q25 compared to 3Q24, driven by growth in fee revenue, particularly management fees and foreign exchange trading services. Net income also saw a significant increase of 17.9% in 3Q25 year-over-year, while expenses grew at a slower pace Key Revenue Components (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Metric | 3Q24 (millions) | 3Q25 (millions) | % Change 3Q25 vs 3Q24 | YTD2024 (millions) | YTD2025 (millions) | % Change YTD2025 vs YTD2024 | | :---------------------------- | :-------------- | :-------------- | :-------------------- | :----------------- | :----------------- | :-------------------------- | | Servicing fees | $1,266 | $1,357 | 7.2 % | $3,733 | $3,936 | 5.4 % | | Management fees | $527 | $612 | 16.1 % | $1,548 | $1,736 | 12.1 % | | Foreign exchange trading services | $374 | $416 | 11.2 % | $1,041 | $1,209 | 16.1 % | | Total fee revenue | $2,616 | $2,829 | 8.1 % | $7,494 | $8,118 | 8.3 % | | Net interest income | $723 | $715 | (1.1) % | $2,174 | $2,158 | (0.7) % | | Total revenue | $3,259 | $3,545 | 8.8 % | $9,588 | $10,277 | 7.2 % | Key Expense and Income Metrics (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Metric | 3Q24 (millions) | 3Q25 (millions) | % Change 3Q25 vs 3Q24 | YTD2024 (millions) | YTD2025 (millions) | % Change YTD2025 vs YTD2024 | | :--------------------------------- | :-------------- | :-------------- | :-------------------- | :----------------- | :----------------- | :-------------------------- | | Total expenses | $2,308 | $2,434 | 5.5 % | $7,090 | $7,413 | 4.6 % | | Income before income tax expense | $925 | $1,102 | 19.1 % | $2,435 | $2,813 | 15.5 % | | Net income | $730 | $861 | 17.9 % | $1,904 | $2,198 | 15.4 % | | Diluted earnings per common share | $2.26 | $2.78 | 23.0 % | $5.77 | $6.98 | 21.0 % | | Assets under custody and/or administration (billions) | $46,759 | $51,664 | 10.5 % | $46,759 | $51,664 | 10.5 % | | Assets under management (billions) | $4,732 | $5,446 | 15.1 % | $4,732 | $5,446 | 15.1 % | [Consolidated Statement of Condition](index=5&type=section&id=Consolidated%20Statement%20of%20Condition) The consolidated statement of condition presents the company's financial position as of September 30, 2025, showing a 9.6% increase in total assets year-over-year, reaching $371.07 billion. Total deposits also grew by 13.2% to $279.999 billion, while total shareholders' equity increased by 7.0% to $27.642 billion Key Balance Sheet Items (As of September 30, 2025) | Metric | Sep 30, 2024 (millions) | Jun 30, 2025 (millions) | Sep 30, 2025 (millions) | % Change 3Q25 vs 3Q24 | % Change 3Q25 vs 2Q25 | | :---------------------------------- | :---------------------- | :---------------------- | :---------------------- | :-------------------- | :-------------------- | | Cash and due from banks | $4,067 | $4,020 | $4,756 | 16.9 % | 18.3 % | | Total investment securities | $106,330 | $113,889 | $110,377 | 3.8 % | (3.1) % | | Loans, net | $41,799 | $47,100 | $46,470 | 11.2 % | (1.3) % | | Total assets | $338,481 | $376,717 | $371,070 | 9.6 % | (1.5) % | | Total deposits | $247,429 | $283,024 | $279,999 | 13.2 % | (1.1) % | | Securities sold under repurchase agreements | $2,119 | $2,377 | $206 | (90.3) % | (91.3) % | | Long-term debt | $20,902 | $25,911 | $24,688 | 18.1 % | (4.7) % | | Total liabilities | $312,653 | $349,410 | $343,428 | 9.8 % | (1.7) % | | Total shareholders' equity | $25,828 | $27,307 | $27,642 | 7.0 % | 1.2 % | [Average Statement of Condition - Rates Earned and Paid - Fully Taxable-Equivalent Basis](index=6&type=section&id=Average%20Statement%20of%20Condition%20-%20Rates%20Earned%20and%20Paid%20-%20Fully%20Taxable-Equivalent%20Basis) This section provides a quarterly breakdown of average interest-earning assets and interest-bearing liabilities, along with their respective average rates earned and paid on a fully taxable-equivalent basis. For 3Q25, total interest-earning assets increased by 9.6% year-over-year, while the net interest margin slightly decreased to 0.96% from 1.13% in 3Q24 Average Interest-Earning Assets and Rates (3Q25 vs 3Q24) | Metric | 3Q24 Average Balance (millions) | 3Q24 Average Rate | 3Q25 Average Balance (millions) | 3Q25 Average Rate | % Change 3Q25 vs 3Q24 Balance | | :------------------------------------ | :------------------------------ | :---------------- | :------------------------------ | :---------------- | :---------------------------- | | Interest-bearing deposits with banks, net | $86,884 | 4.02 % | $88,130 | 3.03 % | 1.4 % | | Total investment securities | $107,364 | 3.73 % | $111,821 | 3.58 % | 4.2 % | | Loans | $39,782 | 5.79 % | $46,500 | 4.98 % | 16.9 % | | Total interest-earning assets | $269,506 | 4.55 % | $295,457 | 3.92 % | 9.6 % | Average Interest-Bearing Liabilities and Rates (3Q25 vs 3Q24) | Metric | 3Q24 Average Balance (millions) | 3Q24 Average Rate | 3Q25 Average Balance (millions) | 3Q25 Average Rate | % Change 3Q25 vs 3Q24 Balance | | :------------------------------------ | :------------------------------ | :---------------- | :------------------------------ | :---------------- | :---------------------------- | | Total interest-bearing deposits | $201,264 | 3.35 % | $230,560 | 2.86 % | 14.6 % | | Securities sold under repurchase agreements | $2,193 | 4.98 % | $1,002 | 3.44 % | (54.3) % | | Long-term debt | $20,258 | 5.27 % | $25,273 | 4.93 % | 24.8 % | | Total interest-bearing liabilities | $242,592 | 3.87 % | $270,349 | 3.23 % | 11.4 % | Net Interest Margin (3Q25 vs 3Q24) | Metric | 3Q24 | 3Q25 | | :---------------------------------- | :----- | :----- | | Net interest margin, fully taxable-equivalent basis | 1.13 % | 0.96 % | | Net interest income, GAAP-basis (millions) | $723 | $715 | [Average Statement of Condition - Rates Earned and Paid - Fully Taxable-Equivalent Basis - Year-to-Date](index=7&type=section&id=Average%20Statement%20of%20Condition%20-%20Rates%20Earned%20and%20Paid%20-%20Fully%20Taxable-Equivalent%20Basis%20-%20Year-to-Date) This section provides a year-to-date comparison of average interest-earning assets and interest-bearing liabilities, along with their average rates earned and paid on a fully taxable-equivalent basis. For YTD2025, total interest-earning assets increased by 13.2% compared to YTD2024, while the net interest margin decreased to 0.97% from 1.11% YTD Average Interest-Earning Assets and Rates (2025 vs 2024) | Metric | YTD2024 Average Balance (millions) | YTD2024 Average Rate | YTD2025 Average Balance (millions) | YTD2025 Average Rate | % Change YTD2025 vs YTD2024 Balance | | :------------------------------------ | :------------------------------- | :------------------- | :------------------------------- | :------------------- | :-------------------------------- | | Interest-bearing deposits with banks, net | $88,330 | 4.24 % | $93,060 | 3.21 % | 5.4 % | | Total investment securities | $104,603 | 3.59 % | $111,332 | 3.54 % | 6.4 % | | Loans | $38,747 | 5.82 % | $45,179 | 5.07 % | 16.6 % | | Total interest-earning assets | $261,887 | 4.58 % | $296,562 | 4.01 % | 13.2 % | YTD Average Interest-Bearing Liabilities and Rates (2025 vs 2024) | Metric | YTD2024 Average Balance (millions) | YTD2024 Average Rate | YTD2025 Average Balance (millions) | YTD2025 Average Rate | % Change YTD2025 vs YTD2024 Balance | | :------------------------------------ | :------------------------------- | :------------------- | :------------------------------- | :------------------- | :-------------------------------- | | Total interest-bearing deposits | $196,393 | 3.39 % | $228,471 | 2.88 % | 16.3 % | | Securities sold under repurchase agreements | $2,904 | 5.05 % | $2,884 | 4.37 % | (0.7) % | | Long-term debt | $19,634 | 5.38 % | $24,965 | 4.97 % | 27.2 % | | Total interest-bearing liabilities | $235,422 | 3.85 % | $271,159 | 3.32 % | 15.2 % | YTD Net Interest Margin (2025 vs 2024) | Metric | YTD2024 | YTD2025 | | :---------------------------------- | :------ | :------ | | Net interest margin, fully taxable-equivalent basis | 1.11 % | 0.97 % | | Net interest income, GAAP-basis (millions) | $2,174 | $2,158 | [Selected Average Balances by Currency - Rates Earned and Paid](index=8&type=section&id=Selected%20Average%20Balances%20by%20Currency%20-%20Rates%20Earned%20and%20Paid) USD-denominated assets and deposits represent the largest portion, with varying rates across currencies reflecting different central bank policies Total Interest-Earning Assets by Currency (3Q25) | Currency | Average Balance (millions) | Average Rates | | :------- | :------------------------- | :------------ | | USD | $210,414 | 4.42 % | | EUR | $43,782 | 2.37 % | | GBP | $13,956 | 4.39 % | | Other | $27,305 | 2.26 % | | Total | $295,457 | 3.92 % | Total Interest-Bearing Deposits by Currency (3Q25) | Currency | Average Balance (millions) | Average Rates | | :------- | :------------------------- | :------------ | | USD | $156,248 | 3.72 % | | EUR | $37,952 | 1.16 % | | GBP | $11,715 | 1.88 % | | Other | $24,645 | 0.47 % | | Total | $230,560 | 2.86 % | [Investment Portfolio Holdings by Asset Class](index=9&type=section&id=Investment%20Portfolio%20Holdings%20by%20Asset%20Class) The investment portfolio holdings are detailed by asset class for both available-for-sale (AFS) and held-to-maturity (HTM) securities. As of 3Q25, the total investment securities portfolio averaged $111.8 billion, with AFS securities showing a net unrealized pre-tax gain of $142 million, while HTM securities had a significant net unrealized pre-tax loss of $4,281 million Available-for-Sale Investment Securities (3Q25 Average) | Asset Class | Average Balance (billions) | Average Rate | | :------------------------------------ | :------------------------- | :----------- | | Government & agency securities | $42.8 | 4.08 % | | U.S. Treasury direct obligations | $25.5 | 4.37 % | | Non-U.S. sovereign, supranational and non-U.S. agency | $17.3 | 3.66 % | | Asset-backed securities | $8.7 | 4.58 % | | Mortgage-backed securities | $11.3 | 5.33 % | | CMBS | $3.9 | 4.80 % | | Other | $3.2 | 5.12 % | | Total available-for-sale portfolio | $69.9 | 4.43 % | Held-to-Maturity Investment Securities (3Q25 Average) | Asset Class | Average Balance (billions) | Average Rate | | :------------------------------------ | :------------------------- | :----------- | | Government & agency securities | $5.6 | 0.83 % | | U.S. Treasury direct obligations | $2.4 | 0.67 % | | Non-U.S. sovereign, supranational and non-U.S. agency | $3.2 | 0.95 % | | Asset-backed securities | $2.4 | 5.21 % | | Mortgage-backed securities | $28.8 | 2.20 % | | CMBS | $5.1 | 1.89 % | | Total held-for-maturity portfolio | $41.9 | 2.15 % | - As of September 30, 2025, the available-for-sale investment portfolio had a net unrealized pre-tax mark-to-market (MTM) gain of **$142 million**, while the held-to-maturity portfolio had a net unrealized pre-tax MTM loss of **$4,281 million**. Approximately **86%** of the investment portfolio was held in High-Quality Liquid Assets (HQLA)[24](index=24&type=chunk) [Allowance for Credit Losses](index=11&type=section&id=Allowance%20for%20Credit%20Losses) The allowance for credit losses increased by 17.5% year-over-year to $201 million as of 3Q25. The total provision for credit losses in 3Q25 was $9 million, a significant decrease of 65.4% compared to 3Q24, primarily due to lower provisions for funded commitments Allowance for Credit Losses (3Q25 vs 3Q24) | Metric | 3Q24 (millions) | 2Q25 (millions) | 3Q25 (millions) | % Change 3Q25 vs 3Q24 | % Change 3Q25 vs 2Q25 | | :------------------------------------ | :-------------- | :-------------- | :-------------- | :-------------------- | :-------------------- | | Beginning balance | $145 | $186 | $192 | 32.4 % | 3.2 % | | Total provision for credit losses | $26 | $30 | $9 | (65.4) % | (70.0) % | | Charge-offs | $0 | ($24) | $0 | — | nm | | Ending balance | $171 | $192 | $201 | 17.5 % | 4.7 % | Allowance for Credit Losses by Category (3Q25 vs 3Q24) | Category | 3Q24 (millions) | 2Q25 (millions) | 3Q25 (millions) | % Change 3Q25 vs 3Q24 | % Change 3Q25 vs 2Q25 | | :------------------------------------ | :-------------- | :-------------- | :-------------- | :-------------------- | :-------------------- | | Loans | $162 | $179 | $190 | 17.3 % | 6.1 % | | Unfunded (off-balance sheet) commitments | $8 | $11 | $10 | 25.0 % | (9.1) % | | Total ending balance | $171 | $192 | $201 | 17.5 % | 4.7 % | [Assets Under Custody and/or Administration](index=12&type=section&id=Assets%20Under%20Custody%20and%2For%20Administration) Assets Under Custody and/or Administration (AUC/A) increased by 10.5% year-over-year to $51.664 trillion as of 3Q25. This growth was broad-based across product classifications, asset classes, and geographic locations, with equities showing the strongest growth among asset classes Total Assets Under Custody and/or Administration (3Q25 vs 3Q24) | Metric | 3Q24 (billions) | 2Q25 (billions) | 3Q25 (billions) | % Change 3Q25 vs 3Q24 | % Change 3Q25 vs 2Q25 | | :------------------------------------ | :-------------- | :-------------- | :-------------- | :-------------------- | :-------------------- | | Total AUC/A | $46,759 | $49,000 | $51,664 | 10.5 % | 5.4 % | | Equities (by Asset Class) | $27,715 | $29,311 | $31,124 | 12.3 % | 6.2 % | | Americas (by Geographic Location) | $33,460 | $35,028 | $36,698 | 9.7 % | 4.8 % | | Europe/Middle East/Africa (by Geographic Location) | $10,214 | $10,803 | $11,570 | 13.3 % | 7.1 % | | Asia/Pacific (by Geographic Location) | $3,085 | $3,169 | $3,396 | 10.1 % | 7.2 % | Total Assets Under Custody (3Q25 vs 3Q24) | Metric | 3Q24 (billions) | 2Q25 (billions) | 3Q25 (billions) | % Change 3Q25 vs 3Q24 | % Change 3Q25 vs 2Q25 | | :------------------------------------ | :-------------- | :-------------- | :-------------- | :-------------------- | :-------------------- | | Total AUC | $33,667 | $35,548 | $37,499 | 11.4 % | 5.5 % | | Collective funds, including ETFs (by Product) | $13,122 | $14,487 | $15,478 | 18.0 % | 6.8 % | | Americas (by Geographic Location) | $25,386 | $26,705 | $28,058 | 10.5 % | 5.1 % | [Assets Under Management](index=13&type=section&id=Assets%20Under%20Management) Assets Under Management (AUM) increased by 15.1% year-over-year to $5.446 trillion as of 3Q25, driven by strong growth in both active and passive equity strategies, as well as multi-asset-class solutions. Exchange-Traded Funds (ETFs) also saw significant growth, increasing by 21.9% year-over-year Total Assets Under Management (3Q25 vs 3Q24) | Metric | 3Q24 (billions) | 2Q25 (billions) | 3Q25 (billions) | % Change 3Q25 vs 3Q24 | % Change 3Q25 vs 2Q25 | | :------------------------------------ | :-------------- | :-------------- | :-------------- | :-------------------- | :-------------------- | | Total AUM | $4,732 | $5,117 | $5,446 | 15.1 % | 6.4 % | | Total Equity | $2,977 | $3,218 | $3,465 | 16.4 % | 7.7 % | | Total Fixed-Income | $623 | $700 | $720 | 15.6 % | 2.9 % | | Total Multi-Asset-Class Solutions | $375 | $449 | $477 | 27.2 % | 6.2 % | | Americas (by Geographic Location) | $3,448 | $3,713 | $3,982 | 15.5 % | 7.2 % | | Europe/Middle East/Africa (by Geographic Location) | $728 | $771 | $806 | 10.7 % | 4.5 % | | Asia-Pacific (by Geographic Location) | $556 | $633 | $658 | 18.3 % | 3.9 % | Exchange-Traded Funds (3Q25 vs 3Q24) | Metric | 3Q24 (billions) | 2Q25 (billions) | 3Q25 (billions) | % Change 3Q25 vs 3Q24 | % Change 3Q25 vs 2Q25 | | :------------------------------------ | :-------------- | :-------------- | :-------------- | :-------------------- | :-------------------- | | Total Exchange-Traded Funds | $1,516 | $1,690 | $1,848 | 21.9 % | 9.3 % | | Alternative Investments | $91 | $124 | $154 | 69.2 % | 24.2 % | | Equity | $1,253 | $1,374 | $1,500 | 19.7 % | 9.2 % | | Fixed-Income | $171 | $191 | $193 | 12.9 % | 1.0 % | [Line of Business Information](index=14&type=section&id=Line%20of%20Business%20Information) This section provides a breakdown of financial performance by line of business, showing that Investment Servicing and Investment Management are the primary revenue drivers. For 3Q25, Investment Servicing revenue increased by 7.5% year-over-year, while Investment Management revenue grew by 14.6%. Both segments demonstrated improved pre-tax margins Total Revenue by Line of Business (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Line of Business | 3Q24 (millions) | 3Q25 (millions) | % Change 3Q25 vs 3Q24 | YTD2024 (millions) | YTD2025 (millions) | % Change YTD2025 vs YTD2024 | | :----------------------- | :-------------- | :-------------- | :-------------------- | :----------------- | :----------------- | :-------------------------- | | Investment Servicing | $2,662 | $2,861 | 7.5 % | $7,873 | $8,393 | 6.6 % | | Investment Management | $597 | $684 | 14.6 % | $1,715 | $1,905 | 11.1 % | | Other | $0 | $0 | — | $0 | ($21) | nm | | Total Revenue | $3,259 | $3,545 | 8.8 % | $9,588 | $10,277 | 7.2 % | Income Before Income Tax Expense by Line of Business (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Line of Business | 3Q24 (millions) | 3Q25 (millions) | % Change 3Q25 vs 3Q24 | YTD2024 (millions) | YTD2025 (millions) | % Change YTD2025 vs YTD2024 | | :----------------------- | :-------------- | :-------------- | :-------------------- | :----------------- | :----------------- | :-------------------------- | | Investment Servicing | $745 | $858 | 15.2 % | $2,076 | $2,334 | 12.4 % | | Investment Management | $180 | $244 | 35.6 % | $490 | $617 | 25.9 % | | Other | $0 | $0 | — | ($131) | ($138) | 5.3 % | | Total Income before income tax expense | $925 | $1,102 | 19.1 % | $2,435 | $2,813 | 15.5 % | Pre-tax Margin by Line of Business (3Q25 & YTD2025) | Line of Business | 3Q24 | 2Q25 | 3Q25 | YTD2024 | YTD2025 | | :----------------------- | :--- | :--- | :--- | :------ | :------ | | Investment Servicing | 28.0 % | 28.8 % | 30.0 % | 26.4 % | 27.8 % | | Investment Management | 30.2 % | 33.3 % | 35.7 % | 28.6 % | 32.4 % | | Total Pre-tax Margin | 28.4 % | 25.8 % | 31.1 % | 25.4 % | 27.4 % | Capital [Regulatory Capital](index=15&type=section&id=Regulatory%20Capital) This section outlines State Street's regulatory capital ratios under both Basel III Advanced Approaches and Standardized Approach. As of 3Q25, the Common Equity Tier 1 (CET1) ratio under the Standardized Approach was 11.3%, showing a slight decrease from 3Q24, while the Tier 1 Leverage Ratio improved to 5.6% Regulatory Capital Ratios (3Q25 vs 3Q24) | Metric | 3Q24 (Advanced) | 3Q25 (Advanced) | 3Q24 (Standardized) | 3Q25 (Standardized) | | :------------------------------------ | :-------------- | :-------------- | :------------------ | :------------------ | | Common equity tier 1 risk based capital ratio | 12.5 % | 13.1 % | 11.6 % | 11.3 % | | Tier 1 risk-based capital ratio | 15.0 % | 16.2 % | 13.9 % | 13.9 % | | Total risk-based capital ratio | 16.6 % | 17.8 % | 15.6 % | 15.5 % | | Tier 1 leverage ratio | 5.5 % | 5.6 % | 5.5 % | 5.6 % | | Supplementary leverage ratio | 6.4 % | 6.4 % | 6.4 % | 6.4 % | - The capital ratios as of September 30, 2025, are estimates. State Street is subject to a minimum Supplementary Leverage Ratio (SLR) of **3%**, and as a U.S. G-SIB, must maintain a **2%** SLR buffer[38](index=38&type=chunk) [Reconciliations of Tangible Book Value per Share and Return on Tangible Common Equity](index=16&type=section&id=Reconciliations%20of%20Tangible%20Book%20Value%20per%20Share%20and%20Return%20on%20Tangible%20Common%20Equity) This section provides reconciliations of GAAP common equity to non-GAAP tangible common equity, used to calculate tangible book value per common share (TBVPS) and return on average tangible common equity (ROTCE). As of 3Q25, TBVPS increased to $55.57, and ROTCE improved to 20.9% year-over-year Tangible Book Value per Common Share (3Q25 vs 3Q24) | Metric | 3Q24 | 2Q25 | 3Q25 | | :------------------------------------ | :----- | :----- | :----- | | Total common shares outstanding (thousands) | 294,191 | 285,562 | 282,218 | | Book value per common share | $78.22 | $83.16 | $85.33 | | Tangible book value per common share - Non-GAAP | $49.22 | $53.56 | $55.57 | Return on Average Tangible Common Equity (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Metric | 3Q24 | 2Q25 | 3Q25 | YTD2024 | YTD2025 | | :------------------------------------ | :----- | :----- | :----- | :------ | :------ | | Average tangible common shareholders' equity - Non-GAAP (millions) | $14,170 | $15,085 | $15,360 | $13,718 | $14,994 | | Net income available to common shareholders (millions) | $682 | $630 | $802 | $1,755 | $2,029 | | Return on average tangible common equity - Non-GAAP | 19.3 % | 16.7 % | 20.9 % | 17.1 % | 18.0 % | Non-GAAP Financial Information [Reconciliations of Non-GAAP Financial Information](index=17&type=section&id=Reconciliations%20of%20Non-GAAP%20Financial%20Information) This section provides detailed reconciliations of GAAP financial measures to non-GAAP measures by excluding notable items such as acquisition and restructuring charges, repositioning charges, and other non-recurring items. These adjustments aim to provide a clearer view of the company's underlying operational performance and trends - Non-GAAP financial results adjust selected GAAP-basis financial results to exclude the impact of revenue and expenses outside of State Street's normal course of business or other notable items, such as acquisition and restructuring charges, repositioning charges, gains/losses on sales, and seasonal items. This presentation facilitates understanding and analysis of financial performance and trends[45](index=45&type=chunk) Total Revenue (GAAP vs. Non-GAAP excluding notable items) (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Metric | 3Q24 (millions) | 3Q25 (millions) | % Change 3Q25 vs 3Q24 | YTD2024 (millions) | YTD2025 (millions) | % Change YTD2025 vs YTD2024 | | :------------------------------------ | :-------------- | :-------------- | :-------------------- | :----------------- | :----------------- | :-------------------------- | | Total revenue, GAAP-basis | $3,259 | $3,545 | 8.8 % | $9,588 | $10,277 | 7.2 % | | Total revenue, excluding notable items | $3,259 | $3,545 | 8.8 % | $9,588 | $10,298 | 7.4 % | Total Expenses (GAAP vs. Non-GAAP excluding notable items) (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Metric | 3Q24 (millions) | 3Q25 (millions) | % Change 3Q25 vs 3Q24 | YTD2024 (millions) | YTD2025 (millions) | % Change YTD2025 vs YTD2024 | | :------------------------------------ | :-------------- | :-------------- | :-------------------- | :----------------- | :----------------- | :-------------------------- | | Total expenses, GAAP-basis | $2,308 | $2,434 | 5.5 % | $7,090 | $7,413 | 4.6 % | | Total expenses, excluding notable items | $2,308 | $2,434 | 5.5 % | $6,960 | $7,296 | 4.8 % | Diluted Earnings per Share (GAAP vs. Non-GAAP excluding notable items) (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Metric | 3Q24 | 3Q25 | % Change 3Q25 vs 3Q24 | YTD2024 | YTD2025 | % Change YTD2025 vs YTD2024 | | :------------------------------------ | :----- | :----- | :-------------------- | :------ | :------ | :-------------------------- | | Diluted earnings per share, GAAP-basis | $2.26 | $2.78 | 23.0 % | $5.77 | $6.98 | 21.0 % | | Diluted earnings per share, excluding notable items | $2.26 | $2.78 | 23.0 % | $6.09 | $7.34 | 20.5 % | Pre-tax Margin (GAAP vs. Non-GAAP excluding notable items) (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Metric | 3Q24 | 3Q25 | % Change 3Q25 vs 3Q24 | YTD2024 | YTD2025 | % Change YTD2025 vs YTD2024 | | :------------------------------------ | :----- | :----- | :-------------------- | :------ | :------ | :-------------------------- | | Pre-tax margin, GAAP-basis | 28.4 % | 31.1 % | 2.7 % pts | 25.4 % | 27.4 % | 2.0 % pts | | Pre-tax margin, excluding notable items | 28.4 % | 31.1 % | 2.7 % pts | 26.8 % | 28.7 % | 1.9 % pts | [Reconciliation of Pre-tax Margin Excluding Notable Items](index=21&type=section&id=Reconciliation%20of%20Pre-tax%20Margin%20Excluding%20Notable%20Items) This section provides an annual reconciliation of GAAP pre-tax margin to pre-tax margin excluding notable items for the years 2021 through 2024. The non-GAAP pre-tax margin consistently shows a higher or more stable performance compared to the GAAP basis, reflecting the impact of various non-recurring charges Pre-tax Margin (GAAP vs. Non-GAAP excluding notable items) (2021-2024) | Metric | 2021 | 2022 | 2023 | 2024 | | :------------------------------------ | :----- | :----- | :----- | :----- | | Pre-tax margin, excluding notable items | 27.6 % | 28.4 % | 26.4 % | 27.6 % | | Pre-tax margin, GAAP-basis | 26.4 % | 27.4 % | 19.4 % | 26.1 % | [Reconciliations of Constant Currency FX Impacts](index=22&type=section&id=Reconciliations%20of%20Constant%20Currency%20FX%20Impacts) This section analyzes the impact of currency translation on quarterly and year-to-date GAAP results, presenting financial figures both as reported and adjusted to exclude currency fluctuations. For 3Q25, total revenue growth was 7.9% as reported, but 7.5% excluding currency impact, indicating a positive foreign exchange effect Total Fee Revenue (Reported vs. Excluding Currency Impact) (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Metric | 3Q24 Reported (millions) | 3Q25 Reported (millions) | 3Q25 Excluding Currency Impact (millions) | % Change 3Q25 vs 3Q24 Excluding Currency | | :------------------------------------ | :----------------------- | :----------------------- | :---------------------------------------- | :--------------------------------------- | | Total fee revenue | $2,616 | $2,829 | $2,811 | 7.5 % | | YTD Total fee revenue | $7,494 | $8,118 | $8,094 | 8.0 % | Total Revenue (Reported vs. Excluding Currency Impact) (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Metric | 3Q24 Reported (millions) | 3Q25 Reported (millions) | 3Q25 Excluding Currency Impact (millions) | % Change 3Q25 vs 3Q24 Excluding Currency | | :------------------------------------ | :----------------------- | :----------------------- | :---------------------------------------- | :--------------------------------------- | | Total revenue | $3,259 | $3,545 | $3,515 | 7.9 % | | YTD Total revenue | $9,588 | $10,277 | $10,240 | 6.8 % | Total Expenses (Reported vs. Excluding Currency Impact) (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Metric | 3Q24 Reported (millions) | 3Q25 Reported (millions) | 3Q25 Excluding Currency Impact (millions) | % Change 3Q25 vs 3Q24 Excluding Currency | | :------------------------------------ | :----------------------- | :----------------------- | :---------------------------------------- | :--------------------------------------- | | Total expenses | $2,308 | $2,434 | $2,413 | 4.5 % | | YTD Total expenses | $7,090 | $7,413 | $7,385 | 4.2 % |