State Street Corporation · NYSE:STT

State Street — Q1 2025 Earnings Presentation

22 slides from State Street's earnings presentation, Apr 17, 2025

  1. Slide 1: Financial Highlights 1Q25

    = STATE = STREET 102025 Financial Highlights NYSE: STT

  2. Slide 2: Financial performance and business momentum

    All comparisons are to corresponding prior year period unless otherwise noted • Total revenue of $3.3B, up 5% – Fee revenue up 6%, reflecting broad-based strength across the franchise – NII flat, as higher investment security yields and continued loan growth were offset by lower average short-end ra

  3. Slide 3: Financial results and notable items

    Financial results Notable items A Quarters Quarters %∆ ($M, except EPS data) 1Q24 4Q24 1Q25 (GAAP; $M, except EPS data, or where otherwise noted) 1Q24 4Q24 1Q25 4Q24 1Q24 Deferred compensation expense Revenue: C - ($79) - acceleration Servicing fees 1,228 1,283 $1,275 (1)% 4% D Management fees 510 5

  4. Slide 4: Market indices, AUC/A and AUM

    5 Market indices 1 AUC/A ($T, as of period-end) 1Q25 vs (% change) +6% 4Q24 1Q24 Equity & Bond Indices: Flat EOP (5)% 7% • Up 6% YoY mainly due to higher quarter- S&P 500 Daily Avg (0) 18 end market levels and flows MSCI EAFE EOP 6 2 $43.9 $46.6 $46.7 Daily Avg 3 6 EOP 2 6 • Flat QoQ primarily drive

  5. Slide 5: Servicing fees and performance indicators

    Servicing fees ($M) Performance indicators 1Q24 2Q24 3Q24 4Q24 1Q25 +4% AUC/A ($B) -1% 1 AUC/A wins $474 $291 $466 $1,098 $182 $1,239 $1,266 $1,283 $1,275 AUC/A to be installed 1 2,576 2,390 2,354 2,988 3,056 $1,228 Servicing ($M) 2 Servicing fee rev. wins $67 $72 $84 $154 $55 2 Servicing fee rev. t

  6. Slide 6: Management fees and business momentum

    Management fees ($M) 1 Performance indicators ($B) +10% 1Q24 2Q24 3Q24 4Q24 1Q25 -2% AUM $4,299 $4,369 $4,732 $4,715 $4,665 Net flows (QoQ) (14) (6) 100 64 (13) $576 $562 $510 $511 $527 1 Business momentum • Strategic partnerships: – Strategic investment and partnership with Ethic Inc. to deliver cu

  7. Slide 7: FX trading services and securities finance

    FX trading services (Ex-notable items, non-GAAP, $M) A Securities finance ($M) +9% +19% +1% -3% $359 $360 $362 $116 $118 $114 $331 $336 $108 $96 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 1Q25 performance A (Ex-notable items, non-GAAP, $M) • FX trading services of $362M • Securities finance o

  8. Slide 8: Software and processing fees

    Software and processing fees($M) Performance indicators ($M) 1Q24 2Q24 3Q24 4Q24 1Q25 +9% -13% New bookings9 $10 $3 $10 $48 $9 Front office software $259 ARR10 326 345 356 375 373 and data7 YoY % Uninstalled revenue backlog11 102 99 100 134 137 42 $225 $214 $208 33% $207 20 On-premises 8 15 18 8 1Q2

  9. Slide 9: NII and NIM, average balance sheet highlights

    12 NII and NIM ($M) A Average balance sheet highlights ($B) 1Q24 2Q24 3Q24 4Q24 1Q25 Flat Total assets $299 $306 $315 $327 $337 -5% Cash13 95 91 90 94 97 $716 $735 $723 $749 $714 Investment portfolio 101 105 107 105 110 Duration (EOP) 14 2.7 2.5 2.5 2.2 2.1 Loans15 38 39 40 42 44 Total deposits $219

  10. Slide 10: Expenses

    Expenses 1Q25 performance A (Ex-notable items, non-GAAP, $M) (Ex-notable items, non-GAAP, $M)A Expenses of $2,450M up 3% YoY and up 3% QoQA +3% – Expenses up 3% YoY and down (4)% QoQ ex. seasonal +3% expensesB YoY % • Compensation and employee benefits of $1,262M16 $2,383 $2,382 $2,450 – Up 1% YoY m

  11. Slide 11: Capital and liquidity highlights

    3 Ratios (%, as of period-end) Capital and liquidity highlights CET1 (Standardized) • 1Q25 standardized CET1 ratio at quarter-end of 11.0% increased 0.1%pts QoQ primarily due to capital generated from earnings, partially 11.6% offset by higher RWA from Securities finance and increased loan 11.1% 11.

  12. Slide 12: Appendix

    —_ STATE = STREET.

  13. Slide 13: Appendix contents

    1Q25 line of business performance 14 Preferred stock dividends 15 Reconciliation of notable items 16 Reconciliation of constant currency impacts 17 Endnotes & other information 18 Forward-looking statements 20 Non-GAAP measures 21 Definitions 22 13

  14. Slide 14: 1Q25 line of business performance

    Investment Servicing Investment Management State StreetA Total revenue YoY % ∆ Total revenueB YoY % ∆ Total revenue ex-notable itemsC YoY % ∆ $2,688M +4% $3,284M +5% $2,587M $3,138M 1,979 +5% $596M +8% Fee 1,876 1,979 $551M Fee 2,422 2,570 +6% revenue revenue NII 711 709 Flat NII 716 714 Flat 1Q24 1

  15. Slide 15: Preferred stock dividends

    FY2025 FY2026 1Q $46 $58 2Q 63 58 3Q 58 58 4Q 58 58 Total $226 $233 Refer to the Appendix included with this presentation for endnotes 1 to 22. 15

  16. Slide 16: Reconciliation of notable items

    Quarterly reconciliation % Change 1Q25 1Q25 vs. vs. (Dollars in millions, unless noted otherwise) 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 4Q24 Total fee revenue, GAAP-basis $ 2,422 $ 2,456 $ 2,616 $ 2,662 $ 2,570 6.1% (3.5)% Less: Notable items: Foreign exchange trading services (15) Other fee revenue (66) To

  17. Slide 17: Reconciliation of constant currency impacts

    Currency Translation Excluding Currency % Change Constant Reconciliation of Constant Currency FX Impacts Reported Impact Impact Currency 1Q25 1Q25 1Q25 1Q25 1Q25 1Q25 vs. vs. vs. vs. vs. vs. (Dollars in millions) 1Q24 4Q24 1Q25 1Q24 4Q24 1Q24 4Q24 1Q24 4Q24 Non-GAAP basis Servicing fees, excluding n

  18. Slide 18: 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 first quarter 2025 financial results. That news release contains a more detailed discussion of many of the matters des

  19. Slide 19: Endnotes (continued)

    7. Front office software and data revenue primarily includes revenue from CRD, Alpha Data Platform and Alpha Data Services. Includes Other revenue of $3-4M in each of 1Q24 through 1Q25. Revenue line items may not sum to total due to rounding. 8. On-premises revenue is revenue derived from locally in

  20. 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

  21. 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.

  22. 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 Agg Bloomberg Global Agg represents Bloomberg Global Aggregate Bond Index CCAR Comprehensive Capital Ana

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