State Street's Q3 Earnings Top Estimates, Revenue Rise Y/Y

Core Points - State Street Corporation (STT) reported third-quarter 2024 earnings of $2.26 per share, exceeding the Zacks Consensus Estimate of $2.08, and reflecting an 80.8% increase from the prior-year quarter [1] - The net income available to common shareholders was $682 million, up 71.4% year over year, surpassing the projected $620.5 million [1] Revenue and Expenses - Total revenues reached $3.34 billion, marking an 11.9% year-over-year increase and beating the Zacks Consensus Estimate of $3.18 billion [2] - Net interest revenue (NIR) was $723 million, up 15.9% year over year, driven by higher investment securities yields and loan growth, despite a deposit mix shift [2] - Total fee revenues increased 10.8% year over year to $2.62 billion, exceeding the estimate of $2.51 billion [2] - Non-interest expenses rose to $2.31 billion, a 5.9% increase from the prior-year quarter, attributed to higher costs across almost all components [2] Asset Management - As of September 30, 2024, total assets under custody and administration were $46.76 trillion, up 16.8% year over year, driven by higher equity market levels and client flows [4] - Assets under management (AUM) reached $4.73 trillion, reflecting a 28.9% year-over-year increase, primarily due to higher market levels and net inflows [4] Shareholder Actions - In the reported quarter, State Street repurchased shares worth $450 million [5] Financial Ratios - The Common Equity Tier 1 ratio was 11.6% as of September 30, 2024, compared to 11.0% in the same period of 2023 [3] - The return on average common equity was 12.0%, up from 7.3% in the year-ago quarter [3]