Slide 1: First Quarter 2024 Financial Highlights
= STATE —= STREET 10 2024 Financial Highlights NYSE: STT
Slide 2: Presentation notice and forward-looking statements
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 first quarter 2024 financial results. That news release contains a more detailed discussion of many of the matters des
Slide 3: Financial performance and business momentum
All comparisons are to corresponding prior year period unless otherwise noted • EPS of $1.37, down (10)%; $1.69 ex-notable items, up 11%A • Total revenue of $3.1B, up 1% YoY – Fee revenue up 4%, reflecting higher Management fees, Front office software and data revenue, and Servicing fees, partially
Slide 4: Financial results and notable items
Financial results Notable items Quarters %∆ Quarters (GAAP; $M, except EPS data, or where otherwise noted) 1Q23 4Q23 1Q24 4Q23 1Q23 ($M, except EPS data) 1Q23 4Q23 1Q24 Revenue: B Back office servicing fees $1,131 $1,128 $1,136 1% 0% FDIC special assessment - ($387) ($130) Middle office services 86
Slide 5: Market indices, AUC/A and AUM
5 Market indices 2 AUC/A ($T, as of period-end) 1Q24 vs (% change) +17% 4Q23 1Q23 Equity & Bond Indices: +5% EOP 10% 28% • Up 17% YoY largely driven by higher S&P 500 Daily Avg 12 25 quarter-end market levels, net new EOP 5 12 $43.9 MSCI EAFE $41.8 business and client flows Daily Avg 9 10 $37.6 EOP
Slide 6: Servicing fees 1Q24 performance
Servicing fees ($M) 1Q24 performance Total $3,101 $3,110 $2,691 $3,043 $3,138 QoQ +3% YoY +1% Servicing fees of $1,228M up 1% YoY and QoQA revenue • Up 1% YoY primarily from higher average market levels, partially offset by pricing headwinds, lower client activity/adjustments +1% including changes i
Slide 7: Management fees 1Q24 performance
Management fees ($M) 1Q24 performance Total $3,101 $3,110 $2,691 $3,043 YoY +1% $3,138 QoQ +3% Management fees of $510M up 12% YoY and 6% QoQA revenue • Up 12% YoY primarily due to higher average market levels and net inflows from prior periods, partially offset by the impacts of a strategic ETF pro
Slide 8: Markets, Software & processing, and Other fees
Markets, Software & processing, and Other fees ($M) 1Q24 performance Total YoY +1% • FX trading services of $331M Revenue $3,101 $3,110 $2,691 $3,043 $3,138 QoQ +3% – Down (3)% YoY mainly due to lower spreads associated with subdued FX volatility, partially offset by higher volumes – Up 8% QoQ prima
Slide 9: Front office software and data
9 Front office software and data ($M) Future growth driven by Front, Middle and Alpha Total YoY +1% ($M) 1Q23 4Q23 1Q24 $3,101 $3,110 $2,691 $3,043 $3,138 QoQ +3% revenue Front office metrics +32% -20% New bookings11 $2 $32 $10 $179 $162 ARR3 273 315 326 52 $144 $130 Uninstalled revenue backlog12 10
Slide 10: NII and NIM, average balance sheet highlights
14 NII and NIM ($M) A Average balance sheet highlights ($B) Total YoY +1% 1Q23 2Q23 3Q23 4Q23 1Q24 $3,101 $3,110 $2,691 $3,043 $3,138 QoQ +3% revenue Total assets $277 $275 $268 $279 $299 -7% +6% Cash15 81 73 66 75 95 Investment portfolio 107 108 105 103 101 $766 $716 $691 $678 $624 HTM % (EOP) 60%
Slide 11: Expenses 1Q24 performance
Expenses 1Q24 performance A (Ex-notable items, non-GAAP, $M) (Ex-notable items, non-GAAP, $M)A +1% Expenses of $2,383M up 1% YoY and 8% QoQA 19 • Compensation and employee benefits of $1,252M +8% – Down (3)% YoY mainly due to lower incentive compensation, salaries $2,369 $2,383 and contractor spend
Slide 12: Capital and liquidity highlights
4 Ratios (%, as of period-end) Capital and liquidity highlights CET1 (Standardized) • 1Q24 standardized CET1 ratio at quarter-end of 11.1% decreased (0.5)%pts QoQ primarily driven by the expected normalization of RWA 12.1% 11.8% 11.0% 11.6% 11.1% STT Target 10-11% Range • 1Q24 Tier 1 leverage ratio
Slide 13: Appendix
—_ STATE = STREET.
Slide 14: Appendix contents
1Q24 line of business performance 15 Reconciliation of notable items 16 Reconciliation of constant currency impacts 17 Endnotes 18 Forward-looking statements 20 Non-GAAP measures 21 Definitions 22 14
Slide 15: 1Q24 line of business performance
Investment Servicing Investment Management State StreetA Total revenue YoY % ∆ Total revenueB YoY % ∆ Total revenue ex-notable itemsC YoY % ∆ $2,596M $2,587M Flat $3,101M $3,138M +1% Fee 1,834 $551M +9% Fee 1,876 1,876 +2% $505M 2,335 2,422 +4% revenue revenue NII 762 711 -7% 766 716 -7% NII 1Q23 1Q
Slide 16: Reconciliation of notable items
Quarterly reconciliation % Change 1Q24 1Q24 vs. vs. (Dollars in millions, unless noted otherwise) 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 4Q23 Total fee revenue, GAAP-basis $ 2,335 $ 2,419 $ 2,361 $ 2,365 $ 2,422 3.7% 2.4% Total fee revenue, excluding notable items 2,335 2,419 2,361 2,365 2,422 3.7% 2.4% Tota
Slide 17: Reconciliation of constant currency impacts
Currency Translation Excluding Currency % Change Constant Reconciliation of Constant Currency FX Impacts Reported Impact Impact Currency 1Q24 1Q24 1Q24 1Q24 1Q24 1Q24 vs. vs. vs. vs. vs. vs. (Dollars in millions) 1Q23 4Q23 1Q24 1Q23 4Q23 1Q23 4Q23 1Q23 4Q23 Non-GAAP basis Total revenue, excluding no
Slide 18: Endnotes
1. Servicing fee revenue wins/backlog represents estimates of future annual revenue associated with new servicing engagements State Street determines to be won during the current reporting period, which may include anticipated servicing- related revenues associated with acquisitions or structured tr
Slide 19: Endnotes (continued)
15. Includes Cash and due from banks and Interest-bearing deposits with banks. 16. Duration as of period end and based on the total investment portfolio. 17. Calculated as Operational deposits divided by Total deposits, in the respective periods. 18. Other, excluding notable items, includes Other ex
Slide 20: 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 21: 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 22: 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