State Street (STT) Q3 2025 earnings summary

Executive summary

• Achieved record assets under custody/administration (AUC/A) of $51.7T and assets under management (AUM) of $5.45T, up 10% and 15% year-over-year, respectively, with strong net inflows and new business wins.

• Total revenue grew 9% year-over-year to $3.55B, with fee revenue up 8% and management fees up 16%.

• Net income rose 23% year-over-year to $861M, with diluted EPS of $2.78, and return on tangible common equity (ROTCE) at 20.9%.

• Strategic initiatives included a minority investment in Apex Fintech Solutions, 39 new product launches in ETFs and digital assets, and recognition in eight categories at the Euromoney 2025 FX Awards.

• Returned $637M to shareholders in Q3 via $400M in share repurchases and $237M in dividends; increased quarterly dividend by 11% to $0.84 per share.

Financial highlights

• Servicing fees increased 7% and management fees rose 16% year-over-year; FX trading and securities finance revenues collectively up 17% year-over-year, excluding notable items.

• Net interest income (NII) was $715M, down 1% year-over-year, with net interest margin at 0.96%.

• Total expenses increased 5% year-over-year to $2.43B, mainly from technology investments and higher revenue-related costs.

• Pre-tax margin expanded to 31.1%, up 2.7 percentage points year-over-year; return on average common equity was 13.4%.

• Provision for credit losses was $9M, reflecting macroeconomic environment and increased reserves for leveraged and commercial real estate loans.

Outlook and guidance

• 2025 total fee revenue growth expected in the 8.5%-9% range, up from prior 5%-7% guidance.

• Full-year NII projected to be slightly down from last year’s record.

• Expense growth for the year now expected at 4.5%, reflecting ongoing investments.

• Management expects continued installation of $3.6T in new asset servicing mandates over the next 24 months.

• Targeting a total payout ratio of approximately 80% for 2025.