State Street(US:STT)2025-10-30 12:36Financial Performance - Total revenue for Q3 2025 was $3,545 million, an increase of 9% compared to Q3 2024, primarily driven by higher fee revenue[38]. - Net income for Q3 2025 reached $861 million, an 18% increase from $730 million in Q3 2024[38]. - Earnings per share (EPS) for Q3 2025 was $2.78, reflecting a 23% increase compared to $2.26 in Q3 2024[42]. - Total fee revenue increased by 8% in Q3 2025, primarily due to higher servicing fees, management fees, and foreign exchange trading services revenue[48]. - Total revenue for the three months ended September 30, 2025, was $3,545 million, representing a 9% increase from $3,259 million in 2024[52]. - Total fee revenue for the nine months ended September 30, 2025, was $8,118 million, an 8% increase from $7,494 million in 2024[52]. Assets and Management - As of September 30, 2025, State Street Corporation reported total assets of $371.07 billion, total deposits of $280.00 billion, and total shareholders' equity of $27.64 billion[10]. - The company manages $51.66 trillion in assets under custody/administration (AUC/A) and $5.45 trillion in assets under management (AUM) as of September 30, 2025[9]. - AUC/A (Assets Under Custody/Administration) was $51.66 trillion as of September 30, 2025, a 10% increase year-over-year[48]. - AUM (Assets Under Management) reached $5.45 trillion as of September 30, 2025, a 15% increase compared to the previous year[48]. - Total assets under management (AUM) reached $5,446 billion as of September 30, 2025, up from $4,715 billion at December 31, 2024, representing a 15.5% increase[76]. Revenue Sources - Servicing fees increased by 7% and 5% for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024[57]. - Management fees rose by 16% and 12% for the three and nine months ended September 30, 2025, respectively, driven by higher average market levels and net inflows[73]. - Foreign exchange trading services revenue grew by 11% in Q3 2025 compared to Q3 2024, driven by higher volumes with Investment Services clients[82]. - Securities finance revenue increased by 19% in Q3 2025 compared to Q3 2024, attributed to higher client lending balances[86]. - Software and processing fees revenue rose by 9% in Q3 2025 compared to Q3 2024, primarily due to increased front office software and data revenue[88]. Expenses and Costs - Total expenses for Q3 2025 were $2,434 million, a 5% increase from $2,308 million in Q3 2024, driven by investments in technology and business capabilities[38]. - Total expenses increased by 5% in Q3 2025 compared to Q3 2024, primarily due to higher technology investments and employee benefit costs[120]. - Compensation and employee benefits expenses rose by 2% in Q3 2025 compared to Q3 2024, driven by merit increases and higher employee benefit costs[123]. - Information systems and communications expenses increased by 12% in Q3 2025 compared to Q3 2024, largely due to higher technology investments[125]. Capital and Liquidity - The standardized CET1 capital ratio improved to 11.3% as of September 30, 2025, up from 10.9% at the end of 2024[49]. - The average daily Liquidity Coverage Ratio (LCR) for the Parent Company was 106% for the quarter ended September 30, 2025, compared to 107% for the quarter ended December 31, 2024[182]. - The average High-Quality Liquid Assets (HQLA) for the Parent Company was $148.27 billion for the quarter ended September 30, 2025, an increase from $142.34 billion for the quarter ended December 31, 2024[184]. - The company’s liquidity management strategy includes access to global capital markets for incremental funding from wholesale investors[198]. Regulatory and Competitive Environment - The company is subject to various regulatory requirements that may affect its business activities and strategies[31]. - State Street faces intense competition and pricing pressure, which could negatively impact profitability and financial results[27]. - The company is required to submit a resolution plan biennially to the Federal Reserve and the FDIC, with the next submission due by July 1, 2027[194]. Workforce and Operational Changes - The company has approximately 52,000 employees, indicating a significant workforce to support its operations[10]. - Total headcount decreased by 2% as of September 30, 2025, compared to the previous year, due to operational simplification efforts[124]. - The company recorded a repositioning charge of $100 million in Q2 2025 related to workforce rationalization[128]. Forward-Looking Statements - Forward-looking statements indicate that management's expectations and assumptions are subject to change due to a range of economic and market factors[24].