State Street Corporation (STT) Q3 2025 Financial Results Summary

2025-10-17 · Stocks · QuoteReporter

State Street Corporation (STT) Q3 2025 Financial Results Summary

On October 17, 2025, State Street Corporation released its financial results for the third quarter of 2025. Below is a summary of the company’s performance metrics for the quarter:

Key Financial Metrics

Earnings Per Share (EPS): $2.78, up 23% from $2.26 in Q3 2024.
Total Revenue: $3.545 billion, up 9% from $3.259 billion in Q3 2024.
Return on Equity (ROE): 13.4%, an increase of 1.4 percentage points from 12.0% in Q3 2024.
Return on Tangible Common Equity (ROTCE): 20.9%, a growth from the previous year.
Pre-tax Margin: 31.1%, a rise of 2.7 percentage points from 28.4% in Q3 2024.
Total Operating Leverage: 332 basis points, indicating favorable revenue growth relative to expense growth.

Revenue Breakdown

Total Fee Revenue: $2.829 billion, up 8% year-over-year, primarily due to:
Servicing Fees: Increased by 7%.
Management Fees: Increased by 16%.
Foreign Exchange Trading Services: Increased by 11%, (Excluding notable items, increased by 16%).
Securities Finance: Increased by 19%.
Software and Processing Fees: Increased by 9%.
Net Interest Income: $715 million, down 1% YoY.
Total Expenses: $2.434 billion, up 5% YoY, driven by costs in technology and service improvements.

Assets Under Management and Custody

Assets Under Custody and Administration (AUC/A): $51.7 trillion, an increase of 10% year-over-year.
Assets Under Management (AUM): $5.4 trillion, marking a 15% rise YoY.

Business Growth and Partnerships

In Q3 2025, State Street secured $47 million in new servicing fee revenue from back office services, primarily involving private markets.
New servicing AUC/A inherent wins totaled $361 billion, with contributions from Asset Owners and Managers.
Advanced its Wealth Services strategy through a partnership with Apex Fintech Solutions, enhancing its service offerings to wealth advisors.

Shareholder Returns

State Street returned a total of $637 million to common shareholders via:
Share Repurchases: $400 million.
Dividends: Increased by 11% to $0.84 per share from $0.76 in Q3 2024.

Credit Losses and Provisions

Provision for Credit Losses: $9 million, down 65% from $26 million in Q3 2024.
Ending Balance of Allowance for Credit Losses: $201 million, up 17.5% from the previous year.

Capital and Liquidity Ratios

Common Equity Tier 1 Ratio (CET1): 11.3%, down 0.3 percentage points compared to the prior year, mainly due to capital return and increased risk-weighted assets.
Liquidity Coverage Ratio (LCR): Approximately 106%.

Conclusion

These results reflect State Street’s strong operational execution and strategic focus amidst competitive market dynamics, highlighting growth in revenue, assets, and shareholder returns. These foundational elements are expected to support the company’s long-term growth trajectory.

Condensed Consolidated Statements of Income (Dollars in millions)

Income statement:	3Q25	2Q25	3Q24	% QoQ	% YoY
Total fee revenue	2,829	2,719	2,616	4 %	8 %
Net interest income	715	729	723	-2	-1
Other income	1	—	-80	nm	nm
Total revenue	3,545	3,448	3,259	3	9
Provision for credit losses	9	30	26	-70	-65
Total expenses	2,434	2,529	2,308	-4	5
Net income	861	693	730	24	18
Diluted earnings per share (EPS)	2.78	2.17	2.26	28 %	23 %
Return on average common equity (ROE)	13.4 %	10.8 %	12.0 %	2.6 % pts	1.4 % pts
Pre-tax margin	31.1	25.8	28.4	5.3 % pts	2.7 % pts
AUC/A ($ billions)(1)	51,664	49,000	46,759	5 %	10 %
AUM ($ billions)(1)	5,446	5,117	4,732	6	15

Condensed Consolidated Balance Sheets (Dollars in millions)

(As of period end)	3Q25	2Q25	3Q24
Assets
Cash and cash equivalents
Investment securities
Loans and leases (net)
Other assets
Total assets
Liabilities
Deposits
Long-term borrowings
Other liabilities
Total liabilities
Equity
Common stock and additional paid-in capital
Retained earnings
Total equity

(Note: The Balance Sheet currently lacks specific numerical data; please populate it as needed based on the most recent results.)