State Street(STT)2025-04-17 19:17Financial Data and Key Metrics Changes - In Q1 2025, fee revenue increased by 6% year over year, while total revenue rose by 5% [11] - The pre-tax margin reached 30% excluding seasonal expenses, with EPS at 1.37 in Q1 last year, marking a 21% growth year over year [12][27] - Year over year, expenses increased by just 3%, contributing to strong fee and total operating leverage [21][42] Business Line Data and Key Metrics Changes - New asset servicing AUCA wins totaled 55 million [12][31] - Management fees increased by 10% year over year, despite net outflows driven by an anticipated client transition [15][34] - FX trading revenue grew by 9% year over year, while securities finance revenues increased by 19% [37] Market Data and Key Metrics Changes - Period end AUCA and AUM increased by 6% and 9% year over year, respectively, reflecting higher market levels and positive flows [28] - Daily average global equity market levels were roughly flat, while daily average FX volatility declined slightly [29] Company Strategy and Development Direction - The company is focused on creating better outcomes for investors and enhancing its investment services, markets, software, and asset management capabilities [9][10] - Strategic progress in investment management is emphasized, particularly in low-cost ETFs, with a record AUM of 350-400 million in new servicing fee revenue wins for the year, while being mindful of market variability [14][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledges notable uncertainty in the operating environment, including trade policy, taxes, and interest rates [8][24] - Despite challenges, the company expresses confidence in its strategy and ability to deliver solid financial returns [25] - The company is prepared for various scenarios and is focused on maintaining expense discipline while investing in client capabilities [22][45] Other Important Information - The company returned 320 million to shareholders through common share repurchases and dividends [20][46] - The search for a permanent CFO is advanced, with an announcement expected soon [23] Q&A Session Summary Question: How does the company view the current market volatility? - Management highlighted that the current environment presents both challenges and opportunities, emphasizing their strong capital position to support clients [19][20] Question: What are the expectations for new servicing fee revenue wins? - The company maintains its target of 350-400 million in new servicing fee revenue wins for the year, despite potential market variability [14][34]