State Street(US:STT)2026-01-16 12:30Revenue Growth - Total revenue for 2025 reached $13,944 million, an increase of 7.3% compared to 2024[4] - Total fee revenue for 2025 was $10,980 million, up 8.1% from $10,156 million in 2024[6] - Total revenue for the company was $3,667 million in Q4 2025, reflecting a 7.5% increase year-over-year and a 3.4% increase from Q3 2025[33] - Year-to-date total revenue for 2025 was $13,944 million, representing a 7.3% growth compared to the previous year[43] - Total revenue for 2025 is projected to be $13,944 million, an increase of 7.3% compared to 2024's revenue of $13,000 million[51] Net Income - Net income for 2025 was $2,945 million, reflecting a 9.6% increase from $2,687 million in 2024[6] - Net income available to common shareholders for Q4 2025 was $688 million, a decrease of 5.5% compared to Q4 2024, and a decrease of 14.2% compared to Q3 2025[8] - Year-to-date net income for 2025 was $2,945 million, showing a 9.6% increase from 2024[45] - Net income for Q4 2025 was $747 million, a decrease of 4.6% compared to Q4 2024[45] Earnings Per Share - The diluted earnings per common share for 2025 was $9.40, an increase from $8.21 in 2024[4] - Basic earnings per share for Q4 2025 were $2.46, down 1.6% from Q4 2024 and down 13.1% from Q3 2025[8] - Diluted earnings per share (GAAP) for Q4 2025 was $2.42, a decrease of 1.6% compared to Q4 2024, and year-to-date earnings per share increased by 14.5% to $9.40[47] - Diluted earnings per share excluding notable items for Q4 2025 was $2.97, reflecting a 14.2% increase from Q4 2024, and year-to-date earnings per share excluding notable items rose by 18.8% to $10.30[47] Assets and Management - Assets under custody and/or administration grew to $53.80 trillion in 2025, up from $46.56 trillion in 2024[4] - Assets under management increased to $5.67 trillion in 2025, compared to $4.72 trillion in 2024[4] - Total assets increased to $342,448 million in Q4 2025, reflecting a 4.7% increase from Q4 2024[8] - Total assets under custody rose to $38.352 billion in Q4 2025, representing a 13.5% increase from Q4 2024[28] - Total Assets Under Management (AUM) reached $5,665 billion in Q4 2025, reflecting a 20.1% increase year-over-year and a 4.0% increase quarter-over-quarter[30] Expenses - Total expenses for 2025 were $10,154 million, an increase of 6.5% from $9,530 million in 2024[6] - Total expenses increased to $2,741 million in Q4 2025, a 12.3% rise year-over-year and a 12.6% increase quarter-over-quarter[33] - Total expenses for Q4 2025 amounted to $2,535 million, up 6.42% from Q4 2024[45] - Total expenses for the year are projected to be around $9,530 million, a 5.9% increase compared to the previous year[53] Capital and Equity - The common equity tier 1 ratio improved to 11.7% in Q4 2025, up 0.8 percentage points from Q4 2024[8] - Common equity tier 1 capital reached $14,791 million in Q3 2025, up from $14,362 million in Q2 2025[36] - Total capital increased to $20,608 million in Q3 2025, up from $19,799 million in Q2 2025[36] - Shareholders' equity rose by 9.9% to $24,433 million, reflecting improved profitability and retained earnings[11] Interest Income - Net interest income for 2025 was $2,960 million, a slight increase of 1.3% from $2,923 million in 2024[6] - Net interest income rose to $800 million in Q4 2025, a 7.7% increase compared to Q4 2024 and a 12.5% increase from Q3 2025[33] - Net interest margin for 4Q25 was 1.10%, compared to 1.07% in 4Q24, reflecting a positive trend in interest income[12] Guidance and Projections - The company provided a guidance for 2026, expecting continued growth in fee revenue and net interest income[5] - The effective tax rate for 2025 is expected to be 21.1%, a slight increase of 0.3 percentage points from 2024[49] - Income before income tax expense, excluding notable items, is forecasted to reach $4,075 million in 2025, reflecting a 13.7% increase from $3,583 million in 2024[51] - The repositioning charges for 2025 are expected to total $326 million, indicating a significant restructuring effort[51] Notable Items - The company reported notable items impacting income, including a $130 million charge related to repositioning[45] - The company experienced a notable item impact of $(15) million from foreign exchange trading services in Q4 2024[43] - Client rescoping had a revenue impact of $24 million in Q1 2025[43]