State Street Corporation · NYSE:STT
State Street — Q4 2024 Earnings Presentation
23 slides from State Street's earnings presentation, Jan 17, 2025
Slide 1: 4Q and FY 2024 Financial Highlights
= STATE —= STREET 4Q and FY 2024 Financial Highlights NYSE: STT January 17, 2025
Slide 2: FY2024 & 4Q24 highlights
All comparisons are to corresponding prior year period unless otherwise noted FY2024 Highlights • Total revenue of $13.0B, up 9%; up 6% ex-notables; Fee revenue up 7%; up 6% ex-notables; NII up 6%; Expenses of $9.5B, down (1)%; A up 4% ex-notables A • Positive operating leverage of 9.4%pts and 2.0%p
Slide 3: Financial results and notable items
Financial results Notable items Quarter %∆ Full Year %∆ QuartersA (GAAP; $M, except EPS data, or where otherwise noted) 4Q24 3Q24 4Q23 2024 2023 ($M, except EPS data) 4Q23 3Q24 4Q24 Revenue: Deferred compensation expense acceleration B - - ($79) Servicing fees $1,283 1% 6% $5,016 2% Management fees
Slide 4: Market indices, AUC/A and AUM
5 Market indices 3 AUC/A ($T, as of period-end) 4Q24 vs (% change) +11% 3Q24 4Q23 Equity & Bond Indices: Flat S&P 500 EOP 2% 23% • Up 11% YoY mainly due to higher quarter- Daily Avg 7 32 EOP (8) 1 $46.8 $46.6 end market levels and flows MSCI EAFE Daily Avg (2) 12 $41.8 EOP (8) 5 MSCI EM • Flat QoQ p
Slide 5: Servicing fees 4Q24 performance
Servicing fees ($M) 4Q24 performance Servicing fees of $1,283M Up 6% YoY and 1% QoQ +6% • Up 6% YoY as higher average market levels and net new business +1% were partially offset by pricing headwinds and lower client activity/adjustments, and included the impact of a previously $1,239 $1,266 $1,283
Slide 6: Management fees 4Q24 performance
Management fees ($M) 4Q24 performance Management fees of $576M up 20% YoY and 9% QoQ +20% • Up 20% YoY and 9% QoQ primarily due to higher average market +9% levels and net inflows • Investment Management 4Q24 pre-tax margin of 32% $576 $510 $511 $527 $479 3 Investment Management business momentum •
Slide 7: Markets, Software & processing, and Other fees 4Q24 performance
Markets, Software & processing, and Other fees 4Q24 performance (Ex-notable items, non-GAAP, $M)A (Ex-notable items, non-GAAP, $M)A • FX trading services of $360M $803 YoY % – Up 17% YoY primarily due to higher volumes and higher spreads associated with an increase in FX volatility $742 $706 – Flat
Slide 8: Front office software and data
8 Front office software and data ($M) Future growth driven by Front, Middle and Alpha ($M) 4Q23 3Q24 4Q24 +10% +35% Front office metrics $197 New bookings10 $32 $10 $48 $179 42 ARR11 315 356 375 $152 $146 $144 9 On-premises 52 Uninstalled revenue backlog12 100 100 134 15 18 8 44 Professional 29 29 3
Slide 9: NII and NIM, average balance sheet highlights
14 NII and NIM ($M) A Average balance sheet highlights ($B) 4Q23 1Q24 2Q24 3Q24 4Q24 +10% Total assets $279 $299 $306 $315 $327 +4% Cash15 75 95 91 90 94 $716 $735 $723 $749 $678 Investment portfolio 103 101 105 107 105 HTM % (EOP) 56% 52% 47% 47% 45% Duration (EOP) 16 2.7 2.7 2.5 2.5 2.2 Loans17 37
Slide 10: Expenses 4Q24 performance
Expenses 4Q24 performance A (Ex-notable items, non-GAAP, $M) (Ex-notable items, non-GAAP, $M)A +8% Expenses of $2,382M up 8% YoY and up 3% QoQA • Compensation and employee benefits of $1,148M20 +3% – Up 8% YoY mainly due to higher performance-based incentive YoY % compensation and elevated employee
Slide 11: Capital and liquidity highlights
22 Ratios (%, as of period-end) Capital and liquidity highlights CET1 (Standardized) • 4Q24 standardized CET1 ratio at quarter-end of 10.9% decreased (0.7)%pts QoQ primarily due to increased capital return and higher 11.6% 11.6% deployment of RWA for business growth, partially offset by capital 11.1
Slide 12: FY2025 Outlook and Key Assumptions
FY2025 OutlookA Key Assumptions • Growth in servicing and management fees driven by higher average market levels and organic growth Fee Revenue • Up ~3-5% YoY • Growth in FX Trading and Securities Financing on higher volumes and volatility • Continued growth in Front office software and data revenue
Slide 13: Appendix
—_ STATE = STREET.
Slide 14: Appendix contents
4Q24 line of business performance 15 FY2024 line of business performance 16 Reconciliation of notable items 17 Reconciliation of constant currency impacts 18 Endnotes & other information 19 Forward-looking statements 21 Non-GAAP measures 22 Definitions 23 14
Slide 15: 4Q24 line of business performance
Investment Servicing Investment Management State StreetA Total revenueB YoY % ∆ Total revenueC YoY % ∆ Total revenue ex-notable itemsB,D YoY % ∆ $2,784M +11% $3,412M +12% $2,498M $3,043M 2,040 +12% $628M +15% Fee 2,040 $545M Fee 2,662 +13% 1,827 2,365 revenue revenue NII 671 743 +11% NII 678 749 +10
Slide 16: FY2024 line of business performance
Investment Servicing Investment Management State StreetA Total revenueB YoY % ∆ Total revenueC YoY % ∆ Total revenue ex-notable itemsB,D YoY % ∆ $10,656M +5% $13,000M +6% $10,160M $12,239M Fee 7,755 +5% $2,344M +13% Fee +6% 7,420 7,755 $2,079M 9,480 10,075 revenue revenue NII 2,740 2,899 +6% NII 2,7
Slide 17: Reconciliation of notable items
Quarterly reconciliation % Change Year-to-Date % Change 4Q24 4Q24 YTD 2024 vs. vs. vs. (Dollars in millions, unless noted otherwise) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 3Q24 2023 2024 YTD 2023 Total fee revenue, GAAP-basis $ 2,335 $ 2,419 $ 2,361 $ 2,365 $ 2,422 $ 2,456 $ 2,616 $ 2,662 12.6
Slide 18: Reconciliation of Constant Currency FX Impacts
Currency Translation Excluding Currency % Change Constant Reconciliation of Constant Currency FX Impacts Reported Impact Impact Currency 4Q24 4Q24 4Q24 4Q24 4Q24 4Q24 vs. vs. vs. vs. vs. vs. (Dollars in millions) 4Q23 3Q24 4Q24 4Q23 3Q24 4Q23 3Q24 4Q23 3Q24 Non-GAAP basis Servicing fees, excluding n
Slide 19: Endnotes
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 fourth quarter 2024 financial results. That news release contains a more detailed discussion of many of the matters de
Slide 20: Endnotes (continued)
7. Other fee revenue primarily consists of income from equity method investments, certain tax-advantaged investments and market-related adjustments. 8. Front office software and data revenue primarily includes revenue from CRD, Alpha Data Platform and Alpha Data Services. Includes Other revenue aver
Slide 21: 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 22: 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 23: Definitions
Definitions acyl aoci ARR AUcIA, Aum Bloomberg Global Aggregate ccan CETI ratio cro EAFE eM EMEA EOP EPS. Eve FDIC FIX Front office uninstalled revenue backlog FTE le office uninstalled revenue backlog msct Net interest income (NI) Net interest margin (NIM) (FTE) NYSE oct On-premises Pre-tax margin