State Street(STT) - 2024 Q2 - Quarterly Results

Financial Performance - Total revenue for 2023 was $11,945 million, a decrease of 1.7% compared to 2022[4] - Net income available to common shareholders for 2023 was $1,821 million, down 31.6% from $2,660 million in 2022[4] - Total revenue for Q2 2024 was $2,607 million, a slight increase of 0.7% compared to Q2 2023[36] - Total revenue on a GAAP basis for Q2 2024 was $3,191 million, up 2.6% from Q2 2023 and 1.7% from Q1 2024[42] - Year-to-date total revenue for 2024 reached $6,329 million, a 1.9% increase compared to the same period in 2023[42] - The company reported a total revenue of $6,333 million for YTD 2024, reflecting a 2% increase compared to YTD 2023[51] Income and Earnings - The diluted earnings per common share for 2023 was $5.58, down from $7.19 in 2022[4] - Net income available to common shareholders for 2Q24 was $655 million, a 56.7% increase compared to $726 million in 2Q23[8] - Basic earnings per share for 2Q24 were $2.18, reflecting a 58.0% increase from $2.20 in 2Q23[8] - Net income on a GAAP basis for Q2 2024 was $711 million, reflecting a decline of 6.8% year-over-year, but a significant increase of 53.6% from Q1 2024[44] - Year-to-date net income for 2024 was $1,174 million, a decrease of 10.5% compared to the same period in 2023[44] - Excluding notable items, net income for Q2 2024 was $711 million, representing a 26.5% increase compared to Q2 2023[44] Assets and Liabilities - Total assets increased by 11.4% year-over-year, reaching $306.298 billion in 2Q24[8] - Total assets increased to $325,603 million in June 2024, reflecting a 10.5% year-over-year growth[11] - Total liabilities increased to $300,841 million in June 2024, an 11.3% increase year-over-year[11] - Total risk-weighted assets increased from $108,296 million in Q1 2023 to $112,161 million in Q1 2024, reflecting a growth of 3.9%[55] Deposits and Loans - Total deposits rose by 7.3% year-over-year, amounting to $220.881 billion in 2Q24[8] - Total deposits reached $239,160 million in June 2024, a decrease of 5.1% compared to March 2024[11] - Loans net rose to $39,240 million in June 2024, marking a 1.9% increase from the previous quarter[11] - Loans grew by 12.8% from $33,878 million in YTD2023 to $38,225 million in YTD2024[16] Expenses - Total expenses for Q2 2024 were $2,269 million, a decrease of 9.7% from Q1 2024[6] - Total expenses for Q2 2024 were $1,850 million, reflecting a 1.6% increase from Q2 2023[36] - Year-to-date total expenses for 2024 were $4,782 million, which is a 4.4% increase from the previous year[42] Capital Ratios - The common equity tier 1 ratio was 11.6% at the end of 2023, down from 13.6% in 2022[4] - Common equity tier 1 ratio was 11.2% in 2Q24, a slight decrease of 0.6 percentage points from 11.8% in 2Q23[8] - The common equity tier 1 risk-based capital ratio decreased from 13.0% in Q1 2023 to 11.7% in Q1 2024, indicating a decline of 10%[55] Investment Securities - Total investment securities amounted to $105.1 billion in 2Q24, with an average yield of 3.62%[20] - The fair value of investment securities held-to-maturity decreased to $46,823 million, down from $51,503 million in March 2024[11] - The company reported an after-tax unrealized loss on securities available-for-sale of $249 million and on securities held-to-maturity of $4.6 billion[22] Management Fees and Revenue Streams - Management fees for YTD 2024 increased by 11.2% to $1,021 million compared to $918 million in YTD 2023[6] - Management fees rose by 10.8% to $461 million in Q2 2024 compared to Q2 2023[36] - Foreign exchange trading services revenue increased by 10.9% year-over-year to $336 million in Q2 2024[51] Tax Rates - The effective tax rate for 2Q24 was 22.1%, an increase of 5.4 percentage points from 16.7% in 2Q23[8] - The effective tax rate on a GAAP basis for Q2 2024 was 22.1%, an increase of 5.4 percentage points compared to Q1 2024[46] - The effective tax rate excluding notable items for Q2 2024 was 22.4%, an increase of 4.2 percentage points compared to the previous year[46] Market Trends and Future Outlook - The company plans to continue focusing on market expansion and new product development to drive future growth[45] - Management emphasized the importance of non-GAAP financial measures to enhance understanding of the company's performance and trends[41]