State Street reports 5% decline in Q4 2025 profit

Financial Performance - State Street reported a net income of $747 million for Q4 2025, a 5% decrease from $783 million in the same period last year [1] - Total revenue for the quarter increased by 7.5% to $3.67 billion, driven by improvements in fee-based revenue, net interest income, and currency translation effects [1] - Net interest income rose by 7% year-on-year, reaching $802 million [1] Assets and Custody - Assets under management (AUM) at the end of the quarter stood at $5.7 trillion, a 20% increase from the prior year [1] - Investment servicing assets under custody and/or administration (AUC/A) reached $53.8 trillion, representing a 16% increase from the previous year [2] - The growth in AUC/A was attributed to higher market valuations and net inflows [2] Revenue and Fees - Fee revenue increased by 8% year-on-year, driven by higher servicing and management fees, as well as increased revenues from foreign exchange trading and securities finance activities [2] - New servicing fee revenue commitments amounted to $87 million, primarily linked to back-office services and private markets [3] - At the end of the quarter, State Street reported $320 million in servicing fee revenue yet to be recognized in future periods [3] Strategic Initiatives - State Street introduced 37 new products in Q4 and launched a total of 134 new offerings throughout 2025 [3] - CEO Ron O'Hanley highlighted the company's strong performance and strategic progress, focusing on growth through innovative products and partnerships, including a 23% stake in India's Groww AMC [4]