State Street (STT) Barclays 22nd Annual Global Financial Services Conference 2024 summary

Management changes and strategic focus

• New Head of Investment Services, Joerg Ambrosius, brings extensive experience and supports refreshed growth strategy.

• Mostapha Tahiri, COO since October 2023, focuses on operations, technology, and regional expertise.

• Emphasis on integrating operations and technology to drive growth and efficiency.

• Management aims to deliver all capabilities to clients with a solution mindset.

Operating model transformation and productivity

• Three main priorities: transforming the operating model for efficiency, aligning with client needs, and human capital transformation.

• Achieved 40% reduction in data centers and legacy platforms; ongoing cloud migration.

• Integrated India JV delivers $20 million annual cost efficiency and supports further transformation.

• Consistent $300–$400 million annual productivity savings since 2019, funding business development.

• Focus on standardizing and optimizing the operating model to reduce bespoke processes and costs.

Financial performance and outlook

• Expecting 4–5% total fee revenue growth for the year, with positive operating leverage.

• NII projected to be slightly up for the full year, with second half trending below first half.

• Expenses expected to rise slightly over 3%, mainly due to currency and higher volumes.

• Pre-tax margin target remains at 30%, with ongoing productivity and reinvestment.

• Committed to 80–90% capital return to shareholders, with accelerated buybacks in Q3 and Q4.