State Street Corporation · NYSE:STT
State Street — UBS Financial Services Conference 2024
17 slides from State Street's conference presentation, Feb 27, 2024
Slide 1: UBS Financial Services Conference
UBS Financial Services Conference Ronald P. O’Hanley Chairman and Chief Executive Officer Eric Aboaf Vice Chairman and Chief Financial Officer NYSE: STT February 27, 2024 1
Slide 2: Preface and forward-looking statements
Preface and forward-looking statements This presentation (and the discussion/question-answer session following it, including the entire webcast) contains forward-looking statements as defined by United States securities laws. These statements are not guarantees of future performance, are inherently
Slide 3: 2024 strategic priorities to drive positive fee operating leverage
2024 strategic priorities to drive positive fee operating leverage A A 1 Deliver full-year fee revenue growth of ~3-4% 2 Extend leadership positions in Markets & Financing and Global Advisors 3 Enhance productivity by further advancing client service and operational excellence 4 Build out technology
Slide 4: Propelling our strategy forward
Propelling our strategy forward A Projected ~3-4% YoY fee revenue growth and positive fee operating leverage in FY2024 Investment Servicing Investment Management Asset Services Markets and Financing Global Advisors Deliver fee revenue growth: Expand market share and Drive Back Office sales Grow Glob
Slide 5: Execution path for key revenue goals and opportunities: Asset Services
Execution path for key revenue goals and opportunities: Asset Services Key outcomes Focus areas Progress to-date and action plans projected for 2024 Achieved $301M of servicing fee revenue wins in 20237; $270M to be installed7,8 Improve sales Servicing fee $350 – capacity Continue to improve sal
Slide 6: Execution path for key revenue goals and opportunities: Markets and Financing
Execution path for key revenue goals and opportunities: Markets and Financing Key outcomes Focus areas Progress to-date and action plans projected for 2024 Leading FX dealer in 50+ currencies across 5 continents, with substantial standing instruction and share-class hedging businesses FX multi-cha
Slide 7: Execution path for key revenue goals and opportunities: Investment Management
Execution path for key revenue goals and opportunities: Investment Management Key outcomes Focus areas Progress to-date and action plans projected for 2024 Achieved record ETF AUM of $1.27T in 2023, driven by record full-year SPY and Low-Cost ETF inflows of $52B and $33B, respectively Increase US
Slide 8: FY2024 planned incremental investments to drive growth and productivity savings
FY2024 planned incremental investments to drive growth and productivity savings 5th consecutive year of business investments fully or partially offset by productivity and expense transformation FY2024 Expense outlook Ex-notables, non-GAAP A +~2.5% ~4-5% ~(5-6)% ~1-2% ~0.5% $8,963M ~1% ~$400M ~$500M
Slide 9: FY2024 planned incremental investments to drive growth and productivity savings
FY2024 planned incremental investments to drive growth and productivity savings 5th consecutive year of business investments fully or partially offset by productivity and expense transformation Achievements in FY2023: Focus areas in FY2024: Investments Modernized product platforms and built capabi
Slide 10: State Street
— STATE == STREET
Slide 11: Fireside chat
Fireside chat Ronald P. O’Hanley Eric Aboaf Brennan Hawken 11
Slide 12: Appendix
Endnotes 13 Appendix Forward-looking statements Non-GAAP measures Definitions 15 16 17 12
Slide 13: Endnotes
Endnotes 1. #2 Custodian globally as measured by AUC/A as of end-3Q23. Source: Global Custodian. 2. Source: Morningstar ETF Competitors league table as of December 31, 2023. 3. Recognized Global Markets as the #1 FX provider to asset managers in the 2023 Euromoney (Real Money) FX Survey. 4. Rank of
Slide 14: Endnotes (cont.)
Endnotes (cont.) 23. Second operations joint venture consolidation in India expected to be completed in 2Q24. 24. Reduction in legacy applications: As compared to a 2019 baseline of ~2,000 applications. Compared to the baseline, total reduction of ~40% expected to be achieved by the end of 2024. 25.
Slide 15: Forward-looking statements
Forward-looking statements This presentation (and the discussion/question-answer session following it, including the entire webcast) contains forward-looking statements within the meaning of United States securities laws, including statements about our goals and expectations regarding our strategy,
Slide 16: 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 17: Definitions
Definitions AI Artificial Intelligence Algos Algorithmic trading APAC Asia-Pacific AUC/A Assets under custody and/or administration AUM Assets under management DC Defined Contribution EM Emerging markets EMEA Europe, Middle East and Africa ETF Exchange-traded fund Fee operating leverage Rate of grow
State Street — UBS Financial Services Conference 2024 on 6ix