State Street Corporation (NYSE STT) Reports Q2 2025 Results

# State Street Corporation (NYSE: STT) Reports Q2 2025 Results

**Release Date**: July 15, 2025

State Street Corporation reported its second-quarter 2025 financial results, highlighting several key metrics that demonstrate its ongoing growth and strong business performance.

### Financial Highlights
– **Earnings Per Share (EPS)**:
– Reported: $2.17, up **6%** QoQ from $2.04 and up **1%** YoY from $2.15
– Excluding notable items: $2.53, up **6%** YoY

– **Net Income**: $693 million, up **8%** QoQ from $644 million, but down **3%** YoY from $711 million

– **Total Revenue**:
– Reported: $3.448 billion, up **5%** QoQ from $3.284 billion and up **8%** YoY from $3.191 billion
– Excluding notable items: $3.469 billion, up **5.6%** YoY

– **Total Fee Revenue**: $2.719 billion, up **6%** QoQ from $2.570 billion and up **11%** YoY from $2.456 billion

– **Net Interest Income**: $729 million, up **2%** QoQ from $714 million, but down **1%** YoY from $735 million

– **Pre-tax Margin**: 25.8%, up **0.8 percentage points** QoQ from 25% but down **2.8 percentage points** YoY from 28.6%

### Assets Management
– **Assets Under Custody/Administration (AUC/A)**:
– Reached $49 trillion, up **5%** QoQ from $46.733 trillion and up **11%** YoY from $44.312 trillion.

– **Assets Under Management (AUM)**:
– Reached $5.117 trillion, up **10%** QoQ from $4.665 trillion and up **17%** YoY from $4.369 trillion.

### Business Developments
– **New Investment Servicing Wins**: Secured $1.1 trillion in new AUC/A wins, mainly from Asset Owners and Asset Managers.

– **Investment Management Net Inflows**: Totaled $82 billion.

– **Operational Highlights**:
– 6 consecutive quarters of positive year-over-year total operating leverage, excluding notable items.
– Record foreign exchange trading volumes up **17%**.

### Dividend Declaration and Share Repurchase
– **Dividend**: State Street announced a planned **11%** increase in its per-share quarterly common stock dividend to $0.84, subject to Board approval.
– **Share Repurchase**: Returned a total of $517 million of capital to shareholders, including $300 million in share repurchases.

### Notable Items Impact
– Notable items charged included a **$100 million** repositioning charge related to employee compensation and **$24 million** related to an Alpha client rescoping, impacting EPS by **$0.36**.

### Expense Overview
– **Total Expenses**:
– Increased to $2.529 billion, up **3%** QoQ from $2.450 billion and up **11%** YoY from $2.269 billion.
– Excluding notable items: Increased to **$2.412 billion**, up **6.3%** YoY.

– **Employee Compensation & Benefits**:
– Increased **16%** YoY, primarily due to performance-related compensation.

– **Technology Investments**: Information systems costs increased by **15%** YoY.

### Capital and Liquidity
– **Common Equity Tier 1 (CET1) Ratio**: Decreased to **10.7%**, down **0.5 percentage points** YoY.
– **Liquidity Coverage Ratio (LCR)**: At approximately **107%**, reflecting a solid liquidity position.

### Summary
State Street’s Q2 2025 financial results demonstrate a commitment to shareholder returns with significant net inflows and AUM growth. The company aims to leverage its strategic advantages and focus on disciplined execution as it navigates market conditions. The planned increase in dividends and ongoing share repurchases illustrate confidence in continuing growth and shareholder value creation.