State Street(US:STT)2025-10-17 11:30GAAP-Basis Financial Information 4-Year Summary of Results 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 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 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 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 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 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 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 Allowance for Credit Losses 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 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 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 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 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 buffer38 Reconciliations of Tangible Book Value per Share and Return on Tangible Common Equity 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 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 trends45 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 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 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 % |