State Street(STT) - 2024 Q4 - Annual Results

Revenue and Income - Total revenue for 2024 reached $13,000 million, a 8.8% increase from$ 11,945 million in 2023[4] - Net income available to common shareholders for 2024 was $2,483 million, up 36.4% from$ 1,821 million in 2023[4] - Diluted earnings per common share increased to $8.21 in 2024, compared to$ 5.58 in 2023, representing a 47.5% growth[4] - Total fee revenue for 2024 was $10,156 million, a 7.1% increase from$ 9,480 million in 2023[4] - Year-to-date (YTD) 2024 total revenue increased by 8.8% to $13,000 million compared to YTD 2023[6] - Total revenue for Q4 2024 reached$ 3,043 million, representing a 12.1% increase compared to Q4 2023[32] - Year-to-date total revenue for 2024 was $13,000 million, an 8.8% increase compared to$ 11,945 million in 2023[42] - Total revenue for Q4 2024 reached $3,412 million, representing a 12.2% increase compared to Q4 2023[50] Expenses - Total expenses for Q4 2024 were$ 2,440 million, a 13.5% decrease compared to Q4 2023[6] - Total expenses for Q4 2024 were $2,822 million, a decrease of 13.5% compared to Q4 2023[32] - Total expenses for 2024 are expected to be$ 9,530 million, a slight decrease from $9,583 million in 2023[48] - Total expenses, excluding notable items, were$ 9,331 million for the year 2024, reflecting a 4.1% increase compared to 2023[50] Assets and Liabilities - Total assets reached $327.2 billion in Q4 2024, a 17.4% increase year-over-year[8] - Total assets increased by 18.8% year-over-year to$ 353,240 million as of December 31, 2024[10] - Total liabilities increased by 19.9% year-over-year to $327,914 million as of December 31, 2024[10] - Total deposits grew to$ 237.1 billion in Q4 2024, reflecting a 14.8% increase compared to Q4 2023[8] - Total deposits rose by 18.5% year-over-year to $261,920 million as of December 31, 2024[10] Interest and Fees - Net interest income for 2024 was$ 2,923 million, reflecting a 5.9% increase from $2,759 million in 2023[4] - Net interest income for Q4 2024 was$ 749 million, reflecting a 10.5% increase from Q4 2023[6] - Management fees in Q4 2024 were $576 million, a significant increase of 20.3% from Q4 2023[6] - Total fee revenue increased to$ 2,662 million in Q4 2024, up 12.6% year-over-year[50] Shareholder Metrics - Cash dividends declared per common share increased to $2.90 in 2024, up from$ 2.64 in 2023[4] - Tangible book value per common share reached $49.14 in Q4 2024, an 11.1% increase year-over-year[8] - Common shareholders' equity increased to$ 22,744 million, a 4.4% rise from the previous year[12] - The total common shares outstanding decreased from 336,461 thousand in 1Q23 to 288,766 thousand in 4Q24, a reduction of about 14.2%[38] Credit Losses and Provisions - The provision for credit losses in Q4 2024 was $12 million, a decrease of 40.0% compared to Q4 2023[6] - The allowance for credit losses increased to$ 183 million, reflecting a 22.0% increase year-over-year[24] - Provision for loan losses for YTD 2024 was $75 million, a significant increase of 63.0% from the previous year[33] Investment Portfolio - The company continues to focus on optimizing its investment portfolio amidst changing market conditions[21] - Total investment securities amounted to$ 105.3 billion with an average yield of 3.63% in 4Q24, compared to $107.1 billion and 2.50% in 1Q23[20] - Approximately 86% of the investment portfolio was held in high-quality liquid assets (HQLA) as of December 31, 2024[22] Tax and Regulatory Metrics - The effective tax rate for Q4 2024 was 18.4%, a decrease of 2.7 percentage points from Q3 2024[8] - The effective tax rate excluding notable items for 2024 is projected to be 21.1%, an increase of 2.3 percentage points from 2023[48] - The company must maintain a minimum Supplementary Leverage Ratio (SLR) of 3% to avoid limitations on distributions to shareholders[35] Performance Ratios - The return on average common equity for 2024 was 11.1%, consistent with the previous year[4] - Return on average tangible common equity (Non-GAAP) for 4Q24 is expected to be 20.3%, compared to 13.3% for the full year 2023, indicating a significant improvement[38] - The pre-tax margin for Q4 2024 improved to 28.1%, up from 21.5% in Q4 2023[32]