State Street Beats Revenue Estimates as It Gets More From Fees

Key Insights - State Street reported first-quarter revenue of $3.14 billion, a 1.2% increase, exceeding forecasts [1] - Fee revenue rose by 3.7% to$ 2.42 billion, contributing to the overall revenue growth [1] - Earnings per share (EPS) was $1.37, slightly below expectations [1] Asset Management Performance - Assets under custody/administration (AUC/A) increased by 16.7% to$ 43.9 trillion, setting a record high [1] - Assets under management (AUM) rose by 19.8% to $4.3 trillion, also a record high [1] Fee Revenue Breakdown - Fee revenues increased for servicing (+1%), management (+12%), and software and processing (+25%) [2] - Fee revenues declined for currency trading (-3%) and securities finance (-12%) [2] Management Commentary - CEO Ron O'Hanley noted that fee revenue growth was driven by strong performance in Global Advisors and Front office solutions, offsetting lower trading revenues [2] - The company aims to continue focusing on positive fee operating leverage through fee revenue growth [2] Stock Performance - State Street shares rose by 2.4% to$ 75.64 during intraday trading but are nearly 3% lower year-to-date in 2024 [2]