State Street (STT) Q4 2024 earnings summary

Executive summary

• Achieved strong financial and business performance in 2024, with total revenue reaching $13.0B, up 9% year-over-year, driven by strategic investments, operational improvements, and enhanced client service.

• EPS for FY2024 was $8.21, up 47% year-over-year; adjusted EPS $8.67, up 13%.

• Transformation initiatives and productivity savings enabled continued investment in growth areas and technology.

• Returned $2.2B to shareholders in FY2024, including $1.3B in share repurchases and a 10% dividend increase.

• Exceeded full-year financial outlook, with record net interest income and positive operating leverage.

Financial highlights

• Full-year total revenue increased 9% and fee revenue rose 7% year-over-year; NII up 6%; expenses declined 1%.

• Fourth quarter revenue was $3.41B, up 12% year-over-year; fee revenue up 13%, NII up 10%, and expenses down 14%.

• Pre-tax margin was 28% for Q4 (30% ex-notables); ROE 13% in Q4; ROTCE 20% (21% ex-notables).

• FY2024 net income was $2.7B, up 47% year-over-year.

• FY2024 AUC/A ended at $46.6T, up 11% year-over-year; AUM at $4.7T, up 15%.

Outlook and guidance

• FY2025 fee revenue expected to grow 3%-5%, with a 1% headwind from a client transition; NII projected to be roughly flat; expenses up 2%-3%.

• Targeting an 80% payout of earnings to shareholders in 2025.

• Positive operating leverage and growth in servicing and management fees, FX trading, and software revenue expected.

• Assumes global equity markets up 5% from year-end 2024 and continued loan growth.