State Street Corporation · NYSE:STT
State Street — Barclays Global Financial Services Conference 2023
16 slides from State Street's conference presentation, Sep 11, 2023
Slide 1: Barclays Global Financial Services Conference
Barclays Global Financial Services Conference September 11, 2023 Lou Maiuri President, Chief Operating Officer and Head of Investment Services Eric Aboaf Vice Chairman and Chief Financial Officer
Slide 2: Preface and forward-looking statements
Preface and forward-looking statements This presentation (and the webcast accompanying it) contains forward-looking statements as defined by United States securities laws. These statements are not guarantees of future performance, are inherently uncertain, are based on assumptions that are difficult
Slide 3: State Street overview
State Street overview Achieving better outcomes for the world’s investors and the people they serve A 2022 State Street Total Revenue of $12.1B Investment Services Vision MO Private Markets BO D #1 ~$37T FO software services servicing fees B & data (CRD) C in ETF in AUC/A 3% 3% servicing2 5% To be t
Slide 4: Key Investment Services segments and regions driving revenue growth
Key Investment Services segments and regions driving revenue growth Opportunities across segments, regions and products Key industry trends and opportunities State Street’s plan to capitalize on opportunities Private markets projected to be the fastest growing segment Strengthened our capabilities e
Slide 5: Focus areas to prioritize growth and efficiencies across our franchise
Focus areas to prioritize growth and efficiencies across our franchise 1 Core Investment Services revenue growth 2 Private Markets 3 State Street Alpha 4 Client deposit pricing and balance management 5 Next phase of productivity efforts 5
Slide 6: Key Investment Services segments and regions driving revenue growth
Key Investment Services segments and regions driving revenue growth Private Markets and Front Office expected to drive growth; opportunity to gain share in North America while maintaining international success 2022 State Street Global Industry CAGR Addressable CAGR Back Office A 5 6 7 Market 2020-20
Slide 7: Core Investment Services revenue growth
Core Investment Services revenue growth Plan to increase core Back Office custody wins and accelerate onboarding to drive growth across our franchise Sales performance Implementation backlog 8 ~$300 Servicing fee wins by product ($M) Servicing fees implementation backlog $253 $259 19% 18% Estimated
Slide 8: Private Markets and Alpha
Private Markets and Alpha Creating further scale in Private Markets and accelerating Alpha sales cycle and implementation timeline Private Markets Key outcomes Focus areas Progress to-date and action plans projected for 2024 ✓ Deployed technology and augmented expertise, improving Private Markets Se
Slide 9: Client deposit pricing and balance management
Client deposit pricing and balance management Proactively managing deposits through deepening client engagement 11 Banking industry average deposit trends State Street average deposit trends Quarterly average deposits Total average interest-bearing deposits Rising rate environment Total Non-interest
Slide 10: Next phase of productivity efforts
Next phase of productivity efforts Key outcomes for 2024 expected to help achieve positive fee operating leverage 12 Focus areas Progress to-date and action plans Key outcomes projected for 2024 ✓ Consolidated global operations and rationalized 35% of legacy applications12 ❑ Assuming full ownership
Slide 11: Fireside Chat
Fireside Chat Lou Maiuri Eric Aboaf Jason Goldberg 11
Slide 12: Appendix
Appendix Endnotes 13 Forward looking statements 14 Non-GAAP measures 15 Definitions 16 12
Slide 13: Endnotes
Endnotes 1. As of year-end 2022. Assets on CRD is inclusive of all assets on Charles River IMS, including internal affiliates. It excludes any compliance-only assets where the platform is used for Secondary Portfolio Compliance Monitoring. 2. State Street estimates based on ETFGI Global Insights Rep
Slide 14: Forward-looking statements
Forward-looking statements This Presentation (and the conference call referenced herein) 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 manageme
Slide 15: Non-GAAP measures
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-G
Slide 16: Definitions
Definitions AI Artificial intelligence APAC Asia-Pacific AUC Assets under custody AUC/A Assets under custody and/or administration AUM Assets under management BO Back office CAGR Compound annual growth rate Charles River IMS Charles River Investment Management Solution CIT Collective investment trus
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