Core Viewpoint - State Street Corp (STT) is well-positioned for growth due to higher interest rates, efforts to enhance fee income, and strategic acquisitions, although rising expenses and concentrated fee-based revenues pose concerns [1]. Group 1: Growth Drivers - Higher interest rates are expected to aid net interest revenue, with net interest income (NII) projected to have a compound annual growth rate (CAGR) of 7.8% over the three years ending in 2023 [2]. - Net interest margin (NIM) expanded to 1.20% in 2023 from 1.03% in 2022, although high funding costs and lower non-interest-bearing deposit balances have pressured NII and NIM in early 2024 [3]. - The company’s investment portfolio repositioning is anticipated to support future NII and NIM growth, with an estimated CAGR of 2.8% over the next three years [3]. Group 2: Fee Income Enhancement - State Street is focused on improving fee income sources, with total fee revenues experiencing a four-year CAGR of 1% from 2019 to 2023, driven by increased client activity and market volatility [4]. - The company had $2.4 trillion of servicing assets to be installed at the end of Q3 2024, indicating potential for future fee revenue growth [5]. - Total fee revenues are projected to rise by 5.3% in the current year [5]. Group 3: Strategic Acquisitions - State Street has been expanding through strategic acquisitions, including a collaboration with Apollo to enhance access to private markets and a plan to acquire a 5% stake in Raiz Invest Limited [6]. - The acquisition of CF Global Trading in February aimed to expand outsourced trading capabilities, while full ownership of two joint ventures in India is part of operational optimization efforts [7]. - These acquisitions are expected to generate revenue and cost synergies, expanding the company's global footprint [7]. Group 4: Capital Distributions - The company increased its quarterly dividend by 10% to 76 cents per share after passing its 2024 stress test [8]. - A share buyback program worth up to $5 billion was authorized, with approximately $4.3 million remaining available for repurchase as of September 30, 2024 [9]. - State Street plans to distribute 80-90% of its earnings to shareholders this year, supported by a solid capital position [9]. Group 5: Market Performance - Year-to-date, STT shares have gained 25%, outperforming the industry’s rise of 21.7% [10].

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with State Street Corporation (STT) currently holding a Momentum Style Score of B [2] Group 2: Zacks Rank and Performance - STT has a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance in the market [3] - Stocks rated Zacks Rank 1 or 2 with Style Scores of A or B have historically outperformed the market over the following month [3] Group 3: Price Performance Metrics - STT shares have increased by 2.68% over the past week, outperforming the Zacks Banks - Major Regional industry, which rose by 0.33% [5] - Over the past month, STT's shares rose by 5.48%, compared to the industry's 4.51% [5] - In the last quarter, STT shares increased by 19%, and over the past year, they gained 37.25%, while the S&P 500 moved 7.29% and 32.85%, respectively [6] Group 4: Trading Volume Insights - STT's average 20-day trading volume is 2,224,492 shares, which serves as a price-to-volume baseline; rising stocks with above-average volume are generally bullish [7] Group 5: Earnings Estimates and Revisions - Over the past two months, 7 earnings estimates for STT have moved higher, with no downward revisions, boosting the consensus estimate from $8.14 to $8.38 [9] - For the next fiscal year, 7 estimates have also moved upwards without any downward revisions [9] Group 6: Conclusion - Given the positive momentum indicators and earnings outlook, STT is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [9]

Financial Performance - Total revenue for Q3 2024 was $3,259 million, an increase of 21% compared to $2,691 million in Q3 2023[14]. - Net income for Q3 2024 reached $730 million, up 73% from $422 million in Q3 2023[14]. - Earnings per share (EPS) for Q3 2024 was $2.26, reflecting an 81% increase from $1.25 in Q3 2023[16]. - Total expenses increased by 6% in Q3 2024, amounting to $2,308 million compared to $2,180 million in Q3 2023[14]. - The pre-tax margin improved to 28.4% in Q3 2024, up from 19.0% in the same period of 2023[16]. - Return on average common equity was 12.0% in Q3 2024, significantly higher than 7.3% in Q3 2023[16]. - Total fee revenue for Q3 2024 was $2,616 million, an 11% increase from $2,361 million in Q3 2023[14]. - Net interest income (NII) rose by 16% to $723 million in Q3 2024, compared to $624 million in Q3 2023[14]. - The provision for credit losses was $26 million in Q3 2024, compared to no provision in Q3 2023[14]. - Cash dividends declared per common share increased by 10% to $0.76 in Q3 2024, up from $0.69 in Q3 2023[14]. Assets and Deposits - As of September 30, 2024, State Street Corporation reported total assets of $338.48 billion, total deposits of $247.43 billion, and total shareholders' equity of $25.83 billion[5]. - The company manages $46.76 trillion in assets under custody/administration (AUC/A) and $4.73 trillion in assets under management (AUM) as of the same date[5]. - AUC/A reached $46.76 trillion as of September 30, 2024, a 17% increase compared to September 30, 2023, driven by higher market levels and client flows[18]. - AUM totaled $4.7 trillion as of September 30, 2024, reflecting a 29% increase year-over-year due to higher market levels and net inflows[18]. - Total assets reached $338,481 million as of September 30, 2024, up from $297,258 million at the end of 2023, indicating a growth of 13.9%[132]. - Total deposits increased to $247,429 million, compared to $220,970 million in December 2023, marking a rise of 11.9%[132]. Business Segments - State Street's operations are divided into two main lines of business: Investment Servicing and Investment Management, which provide a broad range of financial products and services to institutional investors[5]. - Total revenue for the Investment Servicing line of business in Q3 2024 was $2,662 million, an 8% increase from $2,459 million in Q3 2023[56]. - Investment Management total revenue increased by 13% in Q3 2024 to $1,715 million from $1,534 million in Q3 2023[61]. - Management fees in Q3 2024 were $527 million, a 10% increase from $479 million in Q3 2023[58]. Competition and Market Conditions - State Street faces intense competition and significant pricing pressure, which could negatively impact profitability and financial results[9]. - The company’s financial performance is influenced by external factors such as geopolitical conditions, market volatility, and actions taken by central banks[11]. - The company emphasizes the importance of attracting and retaining skilled workforce members to support its business operations amid intense competition for talent[9]. Risk Management - The company’s risk management framework may not effectively identify or mitigate risks, potentially leading to financial losses[13]. - The company faces significant global operational risks due to disruptions in key economies, which could adversely impact its financial condition and results of operations[12]. - The company conducts annual stress tests under the Dodd-Frank Act to assess its capital and financial condition, with results available on its investor relations website[6]. - The company may incur losses due to unforeseen events such as natural disasters, pandemics, and geopolitical conflicts[13]. Capital and Funding - The company may need to raise additional capital or debt in the future, which may not be available or may be available only on unfavorable terms[13]. - The standardized CET1 capital ratio was 11.6% as of September 30, 2024, unchanged from December 31, 2023[18]. - The company declared common stock dividends of $0.76 per share in the third quarter of 2024, representing a 10% increase from $0.69 per share in the same period of 2023[18]. - The company returned a total of $674 million to shareholders in the form of common share repurchases and dividends in the third quarter of 2024[18]. Regulatory Environment - The evolving regulatory environment may influence the volume of securities lending activity and related revenue and profitability in future periods[37]. - The company is subject to a "capital floor" under the Dodd-Frank Act, ensuring that risk-based capital ratios are the lower of those calculated under advanced or standardized approaches[104]. - The company maintains a G-SIB designation, requiring an additional capital surcharge above minimum capital ratios set forth in Basel III[103]. Investment Securities - As of September 30, 2024, the total carrying value of available-for-sale securities was $56.85 billion, an increase from $44.53 billion as of December 31, 2023, representing a growth of approximately 27%[65]. - The total carrying value of held-to-maturity securities decreased to $49.48 billion as of September 30, 2024, down from $57.12 billion as of December 31, 2023, reflecting a decline of about 13%[65]. - Approximately 97% of the carrying value of the investment securities portfolio was rated "AA" or higher as of September 30, 2024, compared to 96% as of December 31, 2023[66]. Loans and Credit Losses - Total loans increased to $41.96 billion as of September 30, 2024, up from $36.63 billion as of December 31, 2023[75]. - The allowance for credit losses increased to $171 million as of September 30, 2024, compared to $134 million as of December 31, 2023, primarily due to provisions related to commercial real estate and leveraged loans[77]. - The provision for credit losses for the nine months ended September 30, 2024, was $69 million, compared to $35 million for the same period in 2023[77]. Shareholder Actions - The company repurchased $450 million of common stock in Q3 2024 and a total of $750 million during the nine months ended September 30, 2024, under its new $5.0 billion share repurchase program[122]. - The dividends declared on common stock for Q3 2024 were $0.76 per share, totaling $224 million, compared to $0.69 per share and $213 million in Q3 2023[124]. - For the nine months ended September 30, 2024, the total dividends declared on common stock were $2.14 per share, totaling $639 million, compared to $1.95 per share and $628 million in the same period of 2023[124].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: State Street Corporation (STT) - State Street Corporation currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy) [2] - The stock has shown a price increase of 9.56% over the past quarter and 36.51% over the last year, outperforming the S&P 500, which increased by 3.56% and 36.11% respectively [4] Price Performance - Over the past week, STT shares increased by 2.89%, while the Zacks Banks - Major Regional industry rose by 3.02% [3] - The monthly price change for STT is 5.92%, compared to the industry's 5.71% [3] Trading Volume - STT's average 20-day trading volume is 2,460,719 shares, indicating a bullish sign when combined with rising stock prices [4] Earnings Outlook - In the last two months, 5 earnings estimates for STT have been revised upwards, increasing the consensus estimate from $8.13 to $8.15 [5] - For the next fiscal year, 7 estimates have moved upwards with no downward revisions [5] Conclusion - Given the positive momentum indicators and earnings outlook, STT is positioned as a strong buy candidate for investors seeking short-term opportunities [6]

Financial Data and Key Metrics - Q3 2024 EPS reached a record high of $2 26, up from $1 25 in the year-ago period, reflecting a 17% YoY growth excluding notable items [10] - Q3 ROE was strong at 12%, with a return on tangible common equity exceeding 19% [19] - Fee revenue grew 7% YoY, while total revenue increased 9% YoY, driving margin expansion [10] - Net interest income (NII) increased 16% YoY to $723 million, supported by higher investment security yields and loan growth [25] - Capital return in Q3 totaled $670 million, including $450 million in share repurchases, with a total payout ratio of nearly 100% [29] Business Line Performance - **Investment Services**: AUC/A wins in Q3 totaled $466 billion, with $84 million in new servicing fee revenue, the highest quarter this year [12] - **Global Advisors**: Record quarterly net flows of $100 billion and AUM of $4 7 trillion, with positive flows in cash, ETFs, and institutional businesses [14] - **Markets**: FX trading revenue increased 15% YoY, and securities finance revenue grew 13% YoY, driven by higher client volumes [23] - **Software and Processing Fees**: Front-office software revenues increased 12% YoY, with software-enabled and professional services revenues up 21% [24] Market Performance - Global equity and fixed income markets saw notable gains, but investors faced risk-off events such as fears of a US recession and geopolitical tensions [9] - State Street expanded market share in key product areas and geographies, including institutional money market funds and ETFs in the US and EMEA regions [14] Strategic Direction and Industry Competition - State Street Alpha platform continues to be a competitive advantage, securing two new mandates in Q3 and deepening existing client relationships [12][13] - The company launched 20 new ETFs, including three actively-managed digital asset-focused ETFs, and announced a partnership with Apollo Global Management to expand access to private markets [14][15] - State Street is focused on innovation in digital assets, private markets, and fixed income solutions to meet evolving investor needs [22] Management Commentary on Operating Environment and Outlook - The operating environment in Q3 was dynamic, with market volatility driven by risk-off events, but markets stabilized due to dovish central bank actions and improved US economic data [9] - Management expects full-year fee revenue growth to be at or slightly above the high end of the 4%-5% range, with NII growth also revised upward to 4%-5% [31][32] - The company remains committed to delivering positive fee and total operating leverage for the full year, excluding notable items [33] Other Important Information - CFO Eric Aboaf announced his departure, with a formal search process underway for his replacement [16] - State Street achieved $125 million in productivity savings in Q3, with a year-to-date total of $350 million, on track to meet the $500 million target for 2024 [27] Q&A Session Summary Question: NII Guidance and Portfolio Repositioning - The $80 million loss from portfolio repositioning will reverse within the next five quarters, benefiting NII [36] - Repositioning focused on lower-coupon securities in the treasury and international sovereign space, with a payback period of approximately five quarters [36] Question: Succession Planning - The Board has a succession plan in place for CEO Ron O'Hanley, with ongoing discussions about leadership transitions [43] Question: Repo Activity and NII Outlook - Repo activity contributed 10%-12% of NII, with a 1 percentage point increase in Q3 due to higher client volumes [46] - NII is expected to stabilize and grow over the next few quarters, supported by lending, repo activity, and deposit engagement [58] Question: Profitability and Pre-Tax Margin Aspirations - State Street aims for 4%-5% revenue growth and a pre-tax margin target of 30% in the medium term, with these goals deeply embedded in the company's culture and incentives [54][55] Question: Deposit Behavior Post-Rate Cut - Deposit levels remained stable post-rate cut, with no significant changes in mix or pricing [78] Question: Servicing Fee Backlog - Approximately half of the servicing fee backlog is expected to be installed in Q4 and throughout next year, with AUC/A backlog installation projected over the next few years [80] Question: New Business Wins and Geographic Distribution - $380 billion of the $466 billion AUC/A wins in Q3 came from the Alpha platform, with significant wins from both US and non-US clients [85] Question: M&A Appetite - State Street views M&A as a tool to accelerate or implement strategy more efficiently, but the focus remains on organic growth and capital return to shareholders [88]

Core Points - State Street Corporation (STT) reported third-quarter 2024 earnings of $2.26 per share, exceeding the Zacks Consensus Estimate of $2.08, and reflecting an 80.8% increase from the prior-year quarter [1] - The net income available to common shareholders was $682 million, up 71.4% year over year, surpassing the projected $620.5 million [1] Revenue and Expenses - Total revenues reached $3.34 billion, marking an 11.9% year-over-year increase and beating the Zacks Consensus Estimate of $3.18 billion [2] - Net interest revenue (NIR) was $723 million, up 15.9% year over year, driven by higher investment securities yields and loan growth, despite a deposit mix shift [2] - Total fee revenues increased 10.8% year over year to $2.62 billion, exceeding the estimate of $2.51 billion [2] - Non-interest expenses rose to $2.31 billion, a 5.9% increase from the prior-year quarter, attributed to higher costs across almost all components [2] Asset Management - As of September 30, 2024, total assets under custody and administration were $46.76 trillion, up 16.8% year over year, driven by higher equity market levels and client flows [4] - Assets under management (AUM) reached $4.73 trillion, reflecting a 28.9% year-over-year increase, primarily due to higher market levels and net inflows [4] Shareholder Actions - In the reported quarter, State Street repurchased shares worth $450 million [5] Financial Ratios - The Common Equity Tier 1 ratio was 11.6% as of September 30, 2024, compared to 11.0% in the same period of 2023 [3] - The return on average common equity was 12.0%, up from 7.3% in the year-ago quarter [3]

STATE STREET. 3Q 2024 Financial Highlights NYSE: STT October 15, 2024 • EPS of $2.26, up 81%; up 17% ex-notable itemsA • Total revenue of $3.3B, up 21%; up 9% ex-notable itemsA – Fee revenue up 11%; up 7% ex-notable items, reflecting broad-based strength across the franchiseA Financial – NII up 16%, largely due to higher investment securities yields and loan growth, partially offset by deposit mix shift performance • Total expenses of $2.3B, up 6%, with business investments and revenue-related costs partial ...

Core Insights - State Street Corporation reported a revenue of $3.34 billion for the quarter ended September 2024, reflecting a year-over-year increase of 24.1% and surpassing the Zacks Consensus Estimate by 5.04% [1] - The earnings per share (EPS) for the quarter was $2.26, compared to $1.93 in the same quarter last year, resulting in an EPS surprise of 8.65% over the consensus estimate of $2.08 [1] Financial Metrics - Basel III Advanced Approaches - Tier 1 Leverage Ratio was reported at 5.5%, matching the average estimate [2] - Net interest margin (FTE) stood at 1.1%, consistent with the average estimate [2] - Assets under Management (AUM) reached $4,732 billion, exceeding the estimated $4,537.25 billion [2] - Basel III Standardized Approach - Tier 1 capital ratio was 13.9%, above the estimated 13.4% [2] - Average balance of Total interest-earning assets was $269.51 billion, surpassing the estimated $253.44 billion [2] - Basel III Standardized Approach - Total capital ratio was reported at 15.6%, exceeding the average estimate of 14.5% [2] - Assets under Custody and/or Administration (AUC/A) totaled $46,759 billion, significantly higher than the estimated $38,959.63 billion [2] - Total fee revenue was $2.62 billion, above the average estimate of $2.50 billion [2] - Net Interest Income on a fully taxable-equivalent basis was $724 million, compared to the average estimate of $694.50 million [2] - Net Interest Income was reported at $723 million, exceeding the average estimate of $693.41 million [2] - Software and processing fees reached $208 million, slightly above the estimated $202.63 million [2] - Other fee revenue was $125 million, significantly higher than the average estimate of $44.96 million [2] Stock Performance - State Street shares have returned +6.4% over the past month, outperforming the Zacks S&P 500 composite's +4.3% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

分组1 - State Street Corporation (STT) reported quarterly earnings of $2.26 per share, exceeding the Zacks Consensus Estimate of $2.08 per share, and up from $1.93 per share a year ago, representing an earnings surprise of 8.65% [1] - The company posted revenues of $3.34 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 5.04%, compared to $2.69 billion in the same quarter last year [1] - Over the last four quarters, State Street has consistently surpassed consensus EPS and revenue estimates [1] 分组2 - The stock has increased approximately 17.4% since the beginning of the year, while the S&P 500 has gained 22.9% [2] - The current consensus EPS estimate for the upcoming quarter is $2.25 on revenues of $3.25 billion, and for the current fiscal year, it is $8.15 on revenues of $12.76 billion [4] - The Zacks Industry Rank for Banks - Major Regional is in the top 25% of over 250 Zacks industries, indicating a favorable outlook for the industry [5]

Revenue Performance - Total fee revenue for 2023 was $9.48 billion, a decrease from $9.61 billion in 2022[3] - Total revenue for 2023 was $11.95 billion, slightly down from $12.15 billion in 2022[3] - Total fee revenue increased by 10.8% YoY to $2,616 million in 3Q24, driven by growth in back office services, foreign exchange trading, and front office software and data[4] - Total revenue grew 21.1% YoY to $3,259 million in 3Q24, supported by strong fee revenue and net interest income growth[4] - Year-to-date total revenue for 2024 increased 7.7% to $9,588 million compared to the same period in 2023[4] - Total revenue for Q3 2024 increased by 20.9% to $3.259 billion compared to Q3 2023, driven by strong performance in fee revenue and net interest income[45] - Fee revenue grew by 10.6% to $2.616 billion in Q3 2024, with significant contributions from management fees (+10.0%) and foreign exchange trading services (+19.5%)[45] - YTD 2024 total revenue reached $9.588 billion, a 7.7% increase compared to YTD 2023, driven by growth in fee revenue (+5.3%) and net interest income (+4.4%)[45] - Total revenue, excluding notable items, reached $12,239 million in 2023, up from $11,703 million in 2020[43] Net Interest Income - Net interest income increased to $2.76 billion in 2023, up from $2.54 billion in 2022[3] - Net interest income rose 15.9% YoY to $723 million in 3Q24, with interest income up 32.3% and interest expense up 38.4%[4] - Net interest income increased by 5.8% YoY to $1,945 million in 3Q24 from $1,839 million in 3Q23[28] - Net interest income on a fully taxable-equivalent basis rose to $2.177 billion in 2024 from $2.085 billion in 2023[11] - Net interest income rose by 15.5% to $723 million in Q3 2024, reflecting improved lending and interest-related activities[45] Net Income and Earnings - Net income available to common shareholders was $1.82 billion in 2023, compared to $2.66 billion in 2022[3] - Diluted earnings per common share were $5.58 in 2023, down from $7.19 in 2022[3] - Net income surged 73.0% YoY to $730 million in 3Q24, with income before tax up 81.0%[4] - Net income available to common shareholders increased by 71.4% to $682 million in 3Q24 compared to 3Q23[6] - Basic earnings per common share rose by 80.3% to $2.29 in 3Q24 compared to 3Q23[6] - Net Income GAAP-basis for 3Q24 was $730 million, a 73.0% increase compared to 3Q23 and a 2.7% increase compared to 2Q24[40] - Year-to-Date Net Income for 2024 was $1,904 million, a 9.8% increase compared to YTD 2023[40] - Diluted earnings per share, GAAP-basis for 3Q24 was $2.26, an 80.8% increase compared to 3Q23 and a 5.1% increase compared to 2Q24[40] - Year-to-Date Diluted earnings per share for 2024 was $5.77, a 16.1% increase compared to YTD 2023[40] - Net Income Available to Common Shareholders, GAAP-basis for 3Q24 was $682 million, a 71.4% increase compared to 3Q23 and a 4.1% increase compared to 2Q24[40] - Year-to-Date Net Income Available to Common Shareholders for 2024 was $1,755 million, a 6.4% increase compared to YTD 2023[40] Assets Under Management and Custody - Assets under custody and/or administration increased to $41.81 trillion in 2023 from $36.74 trillion in 2022[3] - Assets under management rose to $4.13 trillion in 2023, up from $3.48 trillion in 2022[3] - Assets under custody and/or administration grew by 16.8% to $46,759 billion in 3Q24 compared to 3Q23[6] - Assets under management increased by 28.9% to $4,732 billion in 3Q24 compared to 3Q23[6] - Total Assets Under Management increased to $4.732 trillion in 3Q24, up 28.9% YoY and 8.3% QoQ[25] - Total assets under custody and/or administration increased by 16.8% to $46.759 billion in 3Q24 compared to 3Q23[22] - Collective funds, including ETFs, under custody and/or administration grew by 16.0% to $15.253 billion in 3Q24 compared to 3Q23[22] - Mutual funds under custody and/or administration increased by 18.5% to $12.223 billion in 3Q24 compared to 3Q23[22] - Equities under custody and/or administration rose by 20.7% to $27.715 billion in 3Q24 compared to 3Q23[22] - Fixed-income under custody and/or administration grew by 12.5% to $12.027 billion in 3Q24 compared to 3Q23[22] - Americas region assets under custody and/or administration increased by 18.5% to $33.460 billion in 3Q24 compared to 3Q23[22] - Europe/Middle East/Africa region assets under custody and/or administration grew by 13.7% to $10.214 billion in 3Q24 compared to 3Q23[22] - Total assets under custody increased by 15.6% to $33.667 billion in 3Q24 compared to 3Q23[22] Capital and Equity Ratios - Return on average common equity was 8.2% in 2023, down from 11.1% in 2022[3] - Common equity tier 1 ratio decreased to 11.6% in 2023 from 13.6% in 2022[3] - Total capital ratio was 15.2% in 2023, compared to 16.8% in 2022[3] - Return on average common equity improved by 4.7 percentage points to 12.0% in 3Q24 compared to 3Q23[6] - Common equity tier 1 ratio increased by 0.6 percentage points to 11.6% in 3Q24 compared to 3Q23[6] - Common equity tier 1 capital decreased from $14,029 million in 1Q23 to $14,071 million in 3Q24, with a corresponding common equity tier 1 risk-based capital ratio declining from 13.0% to 12.5%[29] - Tier 1 capital increased from $16,005 million in 1Q23 to $16,887 million in 3Q24, with the tier 1 risk-based capital ratio rising from 14.8% to 15.0%[29] - Total capital increased from $17,374 million in 1Q23 to $18,754 million in 3Q24, with the total risk-based capital ratio rising from 16.0% to 16.6%[29] - Leverage exposure increased from $268,747 million in 1Q23 to $305,699 million in 3Q24, with the tier 1 leverage ratio decreasing from 6.0% to 5.5%[29] - Tangible common equity increased from $14,247 million in 1Q23 to $14,480 million in 3Q24, with tangible book value per common share rising from $42.34 to $49.22[33] - Total risk-weighted assets increased from $108,296 million in 1Q23 to $121,137 million in 3Q24[29] - Supplementary leverage ratio decreased from 6.8% in 1Q23 to 6.4% in 3Q24[29] - Total shareholders' equity increased from $24,750 million in 1Q23 to $25,828 million in 3Q24[33] - Average tangible common shareholders' equity increased from $14,349 million in 1Q23 to $14,170 million in 3Q24[34] Expenses - Compensation and employee benefits expenses rose 4.8% YoY to $1,134 million in 3Q24[4] - Information systems and communications expenses increased 12.7% YoY to $463 million in 3Q24[4] - Total expenses increased by 5.2% YoY to $1,891 million in 3Q24 from $1,798 million in 3Q23[28] - Total expenses for Q3 2024 grew by 5.9% YoY to $2.308 billion, with a 1.7% sequential increase from Q2 2024[38] - Total expenses increased by 5.5% to $2.308 billion in Q3 2024, primarily due to higher compensation and employee benefits (+4.2%) and information systems and communications costs (+12.7%)[45] - Total non-compensation expenses YTD 2024 rose by 6.4% to $3.475 billion, driven by higher transaction processing and other operational costs[45] - Total expenses, excluding notable items, were $8,963 million in 2023, compared to $8,542 million in 2020[43] - FDIC special assessment impacted total expenses by $387 million in 2023[43] - Repositioning charges/release affected total expenses by $203 million in 2023[43] Asset and Liability Growth - Total assets grew by 17.5% to $314,640 million in 3Q24 compared to 3Q23[6] - Total deposits increased by 14.0% to $225,482 million in 3Q24 compared to 3Q23[6] - Total assets increased by 19.0% to $338,481 million in Q3 2024 compared to Q3 2023[7] - Loans, net grew by 18.4% to $41,799 million in Q3 2024 compared to Q3 2023[7] - Total deposits rose by 16.2% to $247,429 million in Q3 2024 compared to Q3 2023[7] - Investment securities available-for-sale, net increased by 36.8% to $56,853 million in Q3 2024 compared to Q3 2023[7] - Interest-bearing deposits with banks, net surged by 37.0% to $105,121 million in Q3 2024 compared to Q3 2023[7] - Allowance for credit losses on loans increased by 36.1% to $162 million in Q3 2024 compared to Q3 2023[7] - Non-interest-bearing deposits decreased by 12.2% to $31,448 million in Q3 2024 compared to Q3 2023[7] - Total liabilities grew by 19.9% to $312,653 million in Q3 2024 compared to Q3 2023[7] - Shareholders' equity increased by 9.3% to $25,828 million in Q3 2024 compared to Q3 2023[7] - Securities purchased under resale agreements rose by 31.5% to $8,334 million in Q3 2024 compared to Q2 2024[7] - Interest-bearing deposits with banks increased to $90,230 million in 1Q24, up 39.0% from 3Q23, with an average rate of 4.45%[10] - Total investment securities grew to $107,364 million in 3Q24, a 2.3% increase from 3Q23, with an average rate of 3.73%[10] - Loans increased to $39,782 million in 3Q24, up 15.2% from 3Q23, with an average rate of 5.79%[10] - Total interest-earning assets reached $269,506 million in 3Q24, a 21.1% increase from 3Q23, with an average rate of 4.55%[10] - Total assets grew to $314,640 million in 3Q24, up 17.5% from 3Q23[10] - U.S. interest-bearing deposits increased to $135,440 million in 3Q24, up 22.7% from 3Q23, with an average rate of 4.16%[10] - Total interest-bearing deposits rose to $201,264 million in 3Q24, a 19.0% increase from 3Q23, with an average rate of 3.35%[10] - Long-term debt increased to $20,258 million in 3Q24, up 11.8% from 3Q23, with an average rate of 5.27%[10] - Total deposits grew to $225,482 million in 3Q24, a 14.0% increase from 3Q23[10] - Net interest margin decreased to 1.07% in 3Q24, down from 1.31% in 1Q23[10] - Total interest-earning assets increased by 13.6% to $261.887 billion in 2024 compared to $230.613 billion in 2023[11] - Total investment securities decreased by 1.8% to $104.603 billion in 2024 from $106.537 billion in 2023[11] - Loans grew by 13.6% to $38.747 billion in 2024 from $34.096 billion in 2023[11] - Total interest-bearing deposits increased by 14.5% to $196.393 billion in 2024 from $171.532 billion in 2023[11] - Interest-bearing deposits with banks surged by 27.0% to $88.330 billion in 2024 from $69.551 billion in 2023[11] - Total other interest-earning assets rose by 26.4% to $22.872 billion in 2024 from $18.090 billion in 2023[11] - Non-interest-bearing deposits declined by 23.3% to $25.372 billion in 2024 from $33.096 billion in 2023[11] - Preferred shareholders' equity increased by 39.6% to $2.758 billion in 2024 from $1.976 billion in 2023[11] - Total liabilities and shareholders' equity grew by 12.1% to $306.532 billion in 2024 from $273.361 billion in 2023[11] Investment Securities - Government & agency securities in the available-for-sale portfolio increased from $23.1 billion in 1Q23 to $35.0 billion in 3Q24, with an average rate rising from 2.74% to 4.89%[15] - Total available-for-sale portfolio grew from $42.1 billion in 1Q23 to $57.3 billion in 3Q24, with an average rate increasing from 3.31% to 5.13%[15] - Asset-backed securities in the available-for-sale portfolio increased from $5.9 billion in 1Q23 to $7.6 billion in 3Q24, with an average rate rising from 4.43% to 5.53%[15] - Mortgage-backed securities in the available-for-sale portfolio grew from $2.2 billion in 1Q23 to $6.2 billion in 3Q24, with an average rate increasing from 3.72% to 5.36%[15] - Total held-for-maturity portfolio decreased from $65.0 billion in 1Q23 to $50.1 billion in 3Q24, with an average rate rising from 1.97% to 2.12%[16] - Total investment securities decreased from $107.1 billion in 1Q23 to $107.4 billion in 3Q24, with an average rate increasing from 2.50% to 3.73%[16] - Government & agency securities in the held-for-maturity portfolio decreased from $18.8 billion in 1Q23 to $10.1 billion in 3Q24, with an average rate decreasing from 0.88% to 0.82%[16] - Mortgage-backed securities in the held-for-maturity portfolio decreased from $37.1 billion in 1Q23 to $32.1 billion in 3Q24, with an average rate remaining stable at around 2.22%[16] - The available-for-sale portfolio had a fair value of $56.8 billion, with 53% in UST/AGY, 31% in AAA, and 11% in AA-rated securities[17] - The held-for-maturity portfolio had an amortized cost of $49.5 billion, with 86% in UST/AGY and 6% in AAA-rated securities[17] Credit Losses and Allowances - Allowance for credit losses ending balance increased by 27.6% to $171 million in 3Q24 compared to 3Q23[19] - Loans under allowance for credit losses grew by 36.1% to $162 million in 3Q24 compared to 3Q23[19] Regional and Segment Performance - Americas region assets under custody and/or administration increased by 18.5% to $33.460 billion in 3Q24 compared to 3Q23[22] - Europe/Middle East/Africa region assets under custody and/or administration grew by 13.7% to $10.214 billion in 3Q24 compared to 3Q23[22] - Americas AUM grew to $3.448 trillion in 3Q24, a 27.6%