State Street Corporation Reports Strong Q2 Fiscal 2024 Performance and Investment Growth

State Street Corporation (NYSE: STT) has reported a robust second-quarter fiscal 2024 performance with revenues reaching $3.191 billion, marking a 2.6% year-over-year increase and surpassing the consensus of $3.146 billion. The growth in total revenue was primarily attributed to elevated Net Interest Income (NII) and a 2% rise in Fee revenue. The quarter saw a significant uptick in management fees and foreign exchange (FX) trading services, increasing by 11%, while servicing fees, securities finance, software and processing, and other fee revenue experienced a slight decline. Net interest income also surged by 6% year-over-year to $735 million, driven by higher investment securities yields and loan growth.

In addition to the positive revenue growth, State Street Corporation witnessed a remarkable expansion in its Investment Management Assets Under Management (AUM), which surged by 16% year-over-year to $4.4 trillion as of the quarter-end, primarily driven by higher market levels. The company’s new servicing fee revenue wins amounted to $72 million, with new servicing AUC/A wins totaling $291 billion, predominantly from Asset Managers and Asset Owners. The standardized Common Equity Tier 1 (CET1) ratio stood at 11.2% at quarter-end, showing a 0.6% decrease year-over-year due to capital returns and Risk-Weighted Asset (RWA) growth related to client activity.

State Street Corporation remains committed to enhancing productivity as part of its strategic agenda, as highlighted by Ron O’Hanley, Chairman and Chief Executive Officer. The company recently announced a proposed 10% increase in its quarterly common stock dividend to $0.76 per share in the upcoming third quarter, pending approval by the Board. Market response to State Street’s financial performance has been positive, with STT shares trading higher by 0.33% at $79.20.