State Street (STT) investor relations material

Executive summary

• Delivered record quarterly revenues of $3.8B, up 16% year-over-year, with strong growth across all major business lines and segments, despite a challenging macroeconomic and geopolitical environment.

• Fee revenue rose 15% to $3.0B, and net interest income increased 17% to $835M, driven by higher net interest margin and asset growth.

• EPS increased 22% reported and 39% excluding notable items year-over-year, with diluted EPS (ex-notables) at $2.84.

• Achieved ninth consecutive quarter of year-over-year positive operating leverage, excluding notable items.

• Continued strategic investments in digital, AI, and technology modernization, with 57 new products launched and a focus on future growth.

Financial highlights

• Total revenue reached a record $3.8B, up 16% year-over-year; fee revenue increased 15% to $3.0B; net interest income grew 17% to $835M.

• Expenses increased 9% year-over-year to $2.7B, with pre-tax margin expanding by 400 basis points and ROTCE up to 20.1%.

• Notable items totaled $130M pre-tax ($0.35 per share after tax), mainly from repositioning charges and a client contract re-scoping.

• Net interest margin improved to 1.16%, with average interest-earning assets at $293B.

• Total capital return in Q1 was $633M (90% payout ratio), including $400M in share repurchases and $233M in dividends.

Outlook and guidance

• Raised full-year fee revenue growth outlook to 7%-9% and NII growth to 8%-10%.

• Expense growth guidance increased to 5%-6%, mainly due to higher revenue-related costs.

• Effective tax rate expected at ~22% and payout ratio at ~80% for the year.

• Net interest margin for 2026 expected in the 110-115 basis point range.

• Management remains disciplined and focused on resilience, mindful of macro and geopolitical uncertainties, and confident in continued growth through 2026.