State Street Corporation · NYSE:STT
State Street — Q3 2024 Earnings Presentation
21 slides from State Street's earnings presentation, Oct 15, 2024
Slide 1: 3Q 2024 Financial Highlights
= STATE = STREET 3Q 2024 Financial Highlights October 15, 2024
Slide 2: Financial performance and business momentum
All comparisons are to corresponding prior year period unless otherwise noted • EPS of $2.26, up 81%; up 17% ex-notable itemsA • Total revenue of $3.3B, up 21%; up 9% ex-notable itemsA – Fee revenue up 11%; up 7% ex-notable items, reflecting broad-based strength across the franchiseA Financial – NII
Slide 3: Financial results and notable items
Financial results Notable items Quarters %∆ QuartersA (GAAP; $M, except EPS data, or where otherwise noted) 3Q23 2Q24 3Q24 2Q24 3Q23 ($M, except EPS data) 3Q23 2Q24 3Q24 Revenue: Investment portfolio repositioningB ($294) - ($81) Servicing fees 1,234 1,239 1,266 2 3 Management fees 479 511 527 3 10
Slide 4: Market indices, AUC/A and AUM
7 Market indices 1 AUC/A ($T, as of period-end) 3Q24 vs (% change) 2Q24 3Q23 +17% Equity & Bond Indices: +6% S&P 500 EOP 6% 34% Daily Avg 6 24 EOP 7 22 MSCI EAFE $46.8 Daily Avg 2 13 $44.3 • Up 17% YoY and 6% QoQ primarily driven $40.0 MSCI EM EOP 8 23 by higher quarter-end market levels, net Daily
Slide 5: Servicing fees 3Q24 performance
Servicing fees ($M) 3Q24 performance Servicing fees of $1,266M Up 3% YoY and 2% QoQA +3% • Up 3% YoY as higher average market levels and net new business, +2% excluding a previously disclosed client transition, were partially offset by pricing headwinds, a previously disclosed client transition and
Slide 6: Management fees 3Q24 performance
Management fees ($M) 3Q24 performance Management fees of $527M up 10% YoY and 3% QoQA +10% • Up 10% YoY and 3% QoQ primarily due to higher average market +3% levels • Record $100B of total net inflows, driven by record Cash inflows as $511 $527 $510 well as strength across the ETF and Institutional
Slide 7: Markets, Software & processing, and Other fees
Markets, Software & processing, and Other fees 3Q24 performance (Ex-notable items, non-GAAP, $M)A (Ex-notable items, non-GAAP, $M)A 10 • FX trading services of $359M $742 YoY % – Up 15% YoY primarily due to higher client volumes, partially offset by $706 lower spreads associated with lower average F
Slide 8: Front office software and data
13 Front office software and data ($M) Future growth driven by Front, Middle and Alpha ($M) 3Q23 2Q24 3Q24 +12% -4% Front office metrics $179 New bookings15 $10 $3 $10 $152 $146 ARR16 299 345 356 52 $144 On-premises 14 $130 18 8 15 Uninstalled revenue backlog17 88 99 100 14 29 29 33 31 Professional
Slide 9: NII and NIM; average balance sheet highlights
19 NII and NIM ($M) A Average balance sheet highlights ($B) 3Q23 4Q23 1Q24 2Q24 3Q24 +16% Total assets $268 $279 $299 $306 $315 -2% Cash20 66 75 95 91 90 $716 $735 $723 $678 $624 Investment portfolio 105 103 101 105 107 HTM % (EOP) 60% 56% 52% 47% 47% Duration (EOP) 21 2.7 2.7 2.7 2.5 2.5 Loans 35 3
Slide 10: Expenses 3Q24 performance
Expenses 3Q24 performance A (Ex-notable items, non-GAAP, $M) (Ex-notable items, non-GAAP, $M)A +6% Expenses of $2,308M up 6% YoY and up 2% QoQA • Compensation and employee benefits of $1,134M +2% – Up 5% YoY mainly due to higher performance-based incentive compensation and employee benefits, partial
Slide 11: Capital ratios and liquidity highlights
4 Ratios (%, as of period-end) Capital and liquidity highlights CET1 (Standardized) • 3Q24 standardized CET1 ratio at quarter-end of 11.6% increased 0.4%pts QoQ primarily due to capital generated from earnings and 11.6% 11.6% STT Target improved AOCI, partially offset by continued capital return and
Slide 12: Appendix
=—_ STATE = STREET
Slide 13: Appendix contents
3Q24 line of business performance 14 Reconciliation of notable items 15 Reconciliation of constant currency impacts 16 Endnotes & other information 17 Forward-looking statements 19 Non-GAAP measures 20 Definitions 21 13
Slide 14: 3Q24 line of business performance
Investment Servicing Investment Management State StreetA Total revenueB YoY % ∆ Total revenueC YoY % ∆ Total revenue ex-notable itemsB,D YoY % ∆ $2,662M +8% $3,259M +9% $2,459M $2,985M Fee $597M +14% Fee 1,945 1,945 +6% 2,535 +7% revenue 1,839 $526M revenue 2,361 NII 620 716 +16% NII 723 +16% 624 3Q
Slide 15: Reconciliation of notable items
Quarterly reconciliation % Change Year-to-Date % Change 3Q24 3Q24 YTD 2024 vs. vs. vs. (Dollars in millions, unless noted otherwise) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 2Q24 2023 2024 YTD 2023 Total fee revenue, GAAP-basis $ 2,335 $ 2,419 $ 2,361 $ 2,365 $ 2,422 $ 2,456 $ 2,616 10.8% 6.5% $ 7,11
Slide 16: Reconciliation of constant currency FX impacts
Currency Translation Excluding Currency % Change Constant Reconciliation of Constant Currency FX Impacts Reported Impact Impact Currency 3Q24 3Q24 3Q24 3Q24 3Q24 3Q24 vs. vs. vs. vs. vs. vs. (Dollars in millions) 3Q23 2Q24 3Q24 3Q23 2Q24 3Q23 2Q24 3Q23 2Q24 Non-GAAP basis Total revenue, excluding no
Slide 17: Endnotes and other information
This presentation (and the conference call accompanying it) includes certain highlights of, and also material supplemental to, State Street Corporation’s news release announcing its third quarter 2024 financial results. That news release contains a more detailed discussion of many of the matters des
Slide 18: Endnotes (continued)
7. The index names listed are service marks of their respective owners. S&P Global Specials and S&P U.S. Specials Volumes sourced from S&P Global Market Intelligence. 8. Data presented for indicative purposes. Morningstar data includes long-term mutual funds, ETFs and Money Market funds. Mutual fund
Slide 19: Forward-looking statements
This Presentation contains forward-looking statements within the meaning of United States securities laws, including statements about our goals and expectations regarding our strategy, growth and sales prospects, capital management, business, financial and capital condition, results of operations, t
Slide 20: Non-GAAP measures
In addition to presenting State Street's financial results in conformity with U.S. generally accepted accounting principles, or GAAP, management also presents certain financial information on a basis that excludes or adjusts one or more items from GAAP. This latter basis is a non-GAAP presentation.
Slide 21: Definitions
ACWI All Country World Index AOCI Accumulated other comprehensive income ARR Annual recurring revenue AUC/A Assets under custody and/or administration AUM Assets under management Bloomberg Global Aggregate Bloomberg Global Aggregate represents Bloomberg Global Aggregate Bond Index CCAR Comprehensive