State Street(STT) - 2024 Q3 - Quarterly Results

Revenue Performance - Total fee revenue for 2023 was $9.48 billion, a decrease from $9.61 billion in 2022[3] - Total revenue for 2023 was $11.95 billion, slightly down from $12.15 billion in 2022[3] - Total fee revenue increased by 10.8% YoY to $2,616 million in 3Q24, driven by growth in back office services, foreign exchange trading, and front office software and data[4] - Total revenue grew 21.1% YoY to $3,259 million in 3Q24, supported by strong fee revenue and net interest income growth[4] - Year-to-date total revenue for 2024 increased 7.7% to $9,588 million compared to the same period in 2023[4] - Total revenue for Q3 2024 increased by 20.9% to $3.259 billion compared to Q3 2023, driven by strong performance in fee revenue and net interest income[45] - Fee revenue grew by 10.6% to $2.616 billion in Q3 2024, with significant contributions from management fees (+10.0%) and foreign exchange trading services (+19.5%)[45] - YTD 2024 total revenue reached $9.588 billion, a 7.7% increase compared to YTD 2023, driven by growth in fee revenue (+5.3%) and net interest income (+4.4%)[45] - Total revenue, excluding notable items, reached $12,239 million in 2023, up from $11,703 million in 2020[43] Net Interest Income - Net interest income increased to $2.76 billion in 2023, up from $2.54 billion in 2022[3] - Net interest income rose 15.9% YoY to $723 million in 3Q24, with interest income up 32.3% and interest expense up 38.4%[4] - Net interest income increased by 5.8% YoY to $1,945 million in 3Q24 from $1,839 million in 3Q23[28] - Net interest income on a fully taxable-equivalent basis rose to $2.177 billion in 2024 from $2.085 billion in 2023[11] - Net interest income rose by 15.5% to $723 million in Q3 2024, reflecting improved lending and interest-related activities[45] Net Income and Earnings - Net income available to common shareholders was $1.82 billion in 2023, compared to $2.66 billion in 2022[3] - Diluted earnings per common share were $5.58 in 2023, down from $7.19 in 2022[3] - Net income surged 73.0% YoY to $730 million in 3Q24, with income before tax up 81.0%[4] - Net income available to common shareholders increased by 71.4% to $682 million in 3Q24 compared to 3Q23[6] - Basic earnings per common share rose by 80.3% to $2.29 in 3Q24 compared to 3Q23[6] - Net Income GAAP-basis for 3Q24 was $730 million, a 73.0% increase compared to 3Q23 and a 2.7% increase compared to 2Q24[40] - Year-to-Date Net Income for 2024 was $1,904 million, a 9.8% increase compared to YTD 2023[40] - Diluted earnings per share, GAAP-basis for 3Q24 was $2.26, an 80.8% increase compared to 3Q23 and a 5.1% increase compared to 2Q24[40] - Year-to-Date Diluted earnings per share for 2024 was $5.77, a 16.1% increase compared to YTD 2023[40] - Net Income Available to Common Shareholders, GAAP-basis for 3Q24 was $682 million, a 71.4% increase compared to 3Q23 and a 4.1% increase compared to 2Q24[40] - Year-to-Date Net Income Available to Common Shareholders for 2024 was $1,755 million, a 6.4% increase compared to YTD 2023[40] Assets Under Management and Custody - Assets under custody and/or administration increased to $41.81 trillion in 2023 from $36.74 trillion in 2022[3] - Assets under management rose to $4.13 trillion in 2023, up from $3.48 trillion in 2022[3] - Assets under custody and/or administration grew by 16.8% to $46,759 billion in 3Q24 compared to 3Q23[6] - Assets under management increased by 28.9% to $4,732 billion in 3Q24 compared to 3Q23[6] - Total Assets Under Management increased to $4.732 trillion in 3Q24, up 28.9% YoY and 8.3% QoQ[25] - Total assets under custody and/or administration increased by 16.8% to $46.759 billion in 3Q24 compared to 3Q23[22] - Collective funds, including ETFs, under custody and/or administration grew by 16.0% to $15.253 billion in 3Q24 compared to 3Q23[22] - Mutual funds under custody and/or administration increased by 18.5% to $12.223 billion in 3Q24 compared to 3Q23[22] - Equities under custody and/or administration rose by 20.7% to $27.715 billion in 3Q24 compared to 3Q23[22] - Fixed-income under custody and/or administration grew by 12.5% to $12.027 billion in 3Q24 compared to 3Q23[22] - Americas region assets under custody and/or administration increased by 18.5% to $33.460 billion in 3Q24 compared to 3Q23[22] - Europe/Middle East/Africa region assets under custody and/or administration grew by 13.7% to $10.214 billion in 3Q24 compared to 3Q23[22] - Total assets under custody increased by 15.6% to $33.667 billion in 3Q24 compared to 3Q23[22] Capital and Equity Ratios - Return on average common equity was 8.2% in 2023, down from 11.1% in 2022[3] - Common equity tier 1 ratio decreased to 11.6% in 2023 from 13.6% in 2022[3] - Total capital ratio was 15.2% in 2023, compared to 16.8% in 2022[3] - Return on average common equity improved by 4.7 percentage points to 12.0% in 3Q24 compared to 3Q23[6] - Common equity tier 1 ratio increased by 0.6 percentage points to 11.6% in 3Q24 compared to 3Q23[6] - Common equity tier 1 capital decreased from $14,029 million in 1Q23 to $14,071 million in 3Q24, with a corresponding common equity tier 1 risk-based capital ratio declining from 13.0% to 12.5%[29] - Tier 1 capital increased from $16,005 million in 1Q23 to $16,887 million in 3Q24, with the tier 1 risk-based capital ratio rising from 14.8% to 15.0%[29] - Total capital increased from $17,374 million in 1Q23 to $18,754 million in 3Q24, with the total risk-based capital ratio rising from 16.0% to 16.6%[29] - Leverage exposure increased from $268,747 million in 1Q23 to $305,699 million in 3Q24, with the tier 1 leverage ratio decreasing from 6.0% to 5.5%[29] - Tangible common equity increased from $14,247 million in 1Q23 to $14,480 million in 3Q24, with tangible book value per common share rising from $42.34 to $49.22[33] - Total risk-weighted assets increased from $108,296 million in 1Q23 to $121,137 million in 3Q24[29] - Supplementary leverage ratio decreased from 6.8% in 1Q23 to 6.4% in 3Q24[29] - Total shareholders' equity increased from $24,750 million in 1Q23 to $25,828 million in 3Q24[33] - Average tangible common shareholders' equity increased from $14,349 million in 1Q23 to $14,170 million in 3Q24[34] Expenses - Compensation and employee benefits expenses rose 4.8% YoY to $1,134 million in 3Q24[4] - Information systems and communications expenses increased 12.7% YoY to $463 million in 3Q24[4] - Total expenses increased by 5.2% YoY to $1,891 million in 3Q24 from $1,798 million in 3Q23[28] - Total expenses for Q3 2024 grew by 5.9% YoY to $2.308 billion, with a 1.7% sequential increase from Q2 2024[38] - Total expenses increased by 5.5% to $2.308 billion in Q3 2024, primarily due to higher compensation and employee benefits (+4.2%) and information systems and communications costs (+12.7%)[45] - Total non-compensation expenses YTD 2024 rose by 6.4% to $3.475 billion, driven by higher transaction processing and other operational costs[45] - Total expenses, excluding notable items, were $8,963 million in 2023, compared to $8,542 million in 2020[43] - FDIC special assessment impacted total expenses by $387 million in 2023[43] - Repositioning charges/release affected total expenses by $203 million in 2023[43] Asset and Liability Growth - Total assets grew by 17.5% to $314,640 million in 3Q24 compared to 3Q23[6] - Total deposits increased by 14.0% to $225,482 million in 3Q24 compared to 3Q23[6] - Total assets increased by 19.0% to $338,481 million in Q3 2024 compared to Q3 2023[7] - Loans, net grew by 18.4% to $41,799 million in Q3 2024 compared to Q3 2023[7] - Total deposits rose by 16.2% to $247,429 million in Q3 2024 compared to Q3 2023[7] - Investment securities available-for-sale, net increased by 36.8% to $56,853 million in Q3 2024 compared to Q3 2023[7] - Interest-bearing deposits with banks, net surged by 37.0% to $105,121 million in Q3 2024 compared to Q3 2023[7] - Allowance for credit losses on loans increased by 36.1% to $162 million in Q3 2024 compared to Q3 2023[7] - Non-interest-bearing deposits decreased by 12.2% to $31,448 million in Q3 2024 compared to Q3 2023[7] - Total liabilities grew by 19.9% to $312,653 million in Q3 2024 compared to Q3 2023[7] - Shareholders' equity increased by 9.3% to $25,828 million in Q3 2024 compared to Q3 2023[7] - Securities purchased under resale agreements rose by 31.5% to $8,334 million in Q3 2024 compared to Q2 2024[7] - Interest-bearing deposits with banks increased to $90,230 million in 1Q24, up 39.0% from 3Q23, with an average rate of 4.45%[10] - Total investment securities grew to $107,364 million in 3Q24, a 2.3% increase from 3Q23, with an average rate of 3.73%[10] - Loans increased to $39,782 million in 3Q24, up 15.2% from 3Q23, with an average rate of 5.79%[10] - Total interest-earning assets reached $269,506 million in 3Q24, a 21.1% increase from 3Q23, with an average rate of 4.55%[10] - Total assets grew to $314,640 million in 3Q24, up 17.5% from 3Q23[10] - U.S. interest-bearing deposits increased to $135,440 million in 3Q24, up 22.7% from 3Q23, with an average rate of 4.16%[10] - Total interest-bearing deposits rose to $201,264 million in 3Q24, a 19.0% increase from 3Q23, with an average rate of 3.35%[10] - Long-term debt increased to $20,258 million in 3Q24, up 11.8% from 3Q23, with an average rate of 5.27%[10] - Total deposits grew to $225,482 million in 3Q24, a 14.0% increase from 3Q23[10] - Net interest margin decreased to 1.07% in 3Q24, down from 1.31% in 1Q23[10] - Total interest-earning assets increased by 13.6% to $261.887 billion in 2024 compared to $230.613 billion in 2023[11] - Total investment securities decreased by 1.8% to $104.603 billion in 2024 from $106.537 billion in 2023[11] - Loans grew by 13.6% to $38.747 billion in 2024 from $34.096 billion in 2023[11] - Total interest-bearing deposits increased by 14.5% to $196.393 billion in 2024 from $171.532 billion in 2023[11] - Interest-bearing deposits with banks surged by 27.0% to $88.330 billion in 2024 from $69.551 billion in 2023[11] - Total other interest-earning assets rose by 26.4% to $22.872 billion in 2024 from $18.090 billion in 2023[11] - Non-interest-bearing deposits declined by 23.3% to $25.372 billion in 2024 from $33.096 billion in 2023[11] - Preferred shareholders' equity increased by 39.6% to $2.758 billion in 2024 from $1.976 billion in 2023[11] - Total liabilities and shareholders' equity grew by 12.1% to $306.532 billion in 2024 from $273.361 billion in 2023[11] Investment Securities - Government & agency securities in the available-for-sale portfolio increased from $23.1 billion in 1Q23 to $35.0 billion in 3Q24, with an average rate rising from 2.74% to 4.89%[15] - Total available-for-sale portfolio grew from $42.1 billion in 1Q23 to $57.3 billion in 3Q24, with an average rate increasing from 3.31% to 5.13%[15] - Asset-backed securities in the available-for-sale portfolio increased from $5.9 billion in 1Q23 to $7.6 billion in 3Q24, with an average rate rising from 4.43% to 5.53%[15] - Mortgage-backed securities in the available-for-sale portfolio grew from $2.2 billion in 1Q23 to $6.2 billion in 3Q24, with an average rate increasing from 3.72% to 5.36%[15] - Total held-for-maturity portfolio decreased from $65.0 billion in 1Q23 to $50.1 billion in 3Q24, with an average rate rising from 1.97% to 2.12%[16] - Total investment securities decreased from $107.1 billion in 1Q23 to $107.4 billion in 3Q24, with an average rate increasing from 2.50% to 3.73%[16] - Government & agency securities in the held-for-maturity portfolio decreased from $18.8 billion in 1Q23 to $10.1 billion in 3Q24, with an average rate decreasing from 0.88% to 0.82%[16] - Mortgage-backed securities in the held-for-maturity portfolio decreased from $37.1 billion in 1Q23 to $32.1 billion in 3Q24, with an average rate remaining stable at around 2.22%[16] - The available-for-sale portfolio had a fair value of $56.8 billion, with 53% in UST/AGY, 31% in AAA, and 11% in AA-rated securities[17] - The held-for-maturity portfolio had an amortized cost of $49.5 billion, with 86% in UST/AGY and 6% in AAA-rated securities[17] Credit Losses and Allowances - Allowance for credit losses ending balance increased by 27.6% to $171 million in 3Q24 compared to 3Q23[19] - Loans under allowance for credit losses grew by 36.1% to $162 million in 3Q24 compared to 3Q23[19] Regional and Segment Performance - Americas region assets under custody and/or administration increased by 18.5% to $33.460 billion in 3Q24 compared to 3Q23[22] - Europe/Middle East/Africa region assets under custody and/or administration grew by 13.7% to $10.214 billion in 3Q24 compared to 3Q23[22] - Americas AUM grew to $3.448 trillion in 3Q24, a 27.6%