State Street (STT) Reports Q2 Earnings: What Key Metrics Have to Say

Core Insights - State Street Corporation reported revenue of $3.19 billion for the quarter ended June 2024, reflecting a year-over-year increase of 2.6% [1] - The earnings per share (EPS) for the quarter was $2.15, slightly down from $2.17 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $3.15 billion, resulting in a surprise of +1.36% [1] - The company achieved an EPS surprise of +6.97%, with the consensus EPS estimate being $2.01 [1] Financial Metrics - Net interest margin (FTE) was reported at 1.1%, matching the average estimate from five analysts [2] - Average balance of total interest-earning assets was $261.74 billion, surpassing the four-analyst average estimate of $250.50 billion [2] - Basel III Advanced Approaches - Tier 1 Leverage Ratio stood at 5.3%, in line with the average estimate [2] - Basel III Standardized Approach - Tier 1 capital ratio was 13.3%, slightly above the 13.1% average estimate [2] - Assets under Management (AUM) reached $4,415 billion, exceeding the estimated $4,318.27 billion [2] - Basel III Standardized Approach - Total capital ratio was reported at 15%, above the 14.2% average estimate [2] - Assets under Custody and/or Administration (AUC/A) totaled $44,312 billion, significantly higher than the two-analyst average estimate of $37,496.93 billion [2] - Total fee revenue was $2.46 billion, matching the five-analyst average estimate [2] - Net Interest Income on a fully taxable-equivalent basis was $736 million, exceeding the estimated $697.06 million [2] - Net Interest Income was reported at $735 million, above the average estimate of $696.04 million [2] - Software and processing fees were $214 million, slightly below the estimated $214.97 million [2] - Other fee revenue was $48 million, exceeding the average estimate of $43.02 million [2] Stock Performance - Shares of State Street have returned +10.1% over the past month, outperforming the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]