State Street(STT) - 2024 Q1 - Quarterly Results

Financial Performance - Total revenue for 2023 was $11,945 million, a decrease of 1.7% compared to 2022[4] - Net income available to common shareholders for 2023 was$ 1,821 million, down 31.6% from $2,660 million in 2022[4] - Total revenue for Q1 2024 was$ 2,587 million, a decrease of 0.3% year-over-year but an increase of 3.6% compared to Q4 2023[35] - Net income for Q1 2024 was $463 million, down 15.7% from Q1 2023, while net income available to common shareholders was$ 418 million, a decrease of 20.4% year-over-year[44] - Diluted earnings per share on a GAAP basis for Q1 2024 were $1.37, a decline of 9.9% compared to Q1 2023[44] Revenue and Fee Income - Total fee revenue for 1Q24 was$ 2,422 million, an increase of 3.7% year-over-year[7] - Total fee revenue increased to $1,876 million in Q1 2024, reflecting a 2.3% increase year-over-year and a 2.7% increase from Q4 2023[35] - Management fees for 1Q24 were$ 510 million, an increase of 11.6% compared to 1Q23[7] - Total fee revenue for 1Q24 was $2,422 million, representing a 3.7% increase compared to 1Q23 and a 2.4% increase from 4Q23[42] Assets and Liabilities - Assets under custody and/or administration increased to$ 41.81 trillion in 2023, up from $36.74 trillion in 2022[4] - Total assets increased to$ 298.57 billion in Q1 2024, reflecting a 7.6% increase from the previous quarter[9] - Total assets increased to $338,003 million as of March 31, 2024, representing a 16.2% increase year-over-year[12] - Total liabilities grew to$ 313,570 million, a 17.9% increase compared to the same period last year[12] - Total deposits rose to $218.89 billion, marking a 4.1% increase compared to Q4 2023[9] Capital and Equity - The company’s Tier 1 capital ratio was 13.4% for 2023, down from 15.4% in 2022[4] - Shareholders' equity totaled$ 24,433 million, a 2.7% increase from the previous quarter[12] - Total shareholders' equity increased from $23,621 million in 3Q23 to$ 24,433 million in 1Q24, reflecting a growth of 3.4%[52] - Common equity tier 1 capital ratio decreased from 12.2% in 3Q23 to 11.7% in 1Q24[54] Income and Expenses - Total expenses for 1Q24 were $2,513 million, a decrease of 10.9% from 4Q23[7] - Total expenses for Q1 2024 were$ 1,963 million, a decrease of 0.8% year-over-year but an increase of 9.8% from Q4 2023[35] - The company reported a total income before income tax expense of $597 million in Q1 2024, reflecting a decrease of 13.6% from Q4 2023[35] - The allowance for credit losses ending balance was$ 146 million in Q1 2024, down 9.9% year-over-year and 2.7% from Q4 2023[37] Investment and Securities - The total investment securities amounted to $101.5 billion, with 82% classified as HQLA[20] - The held-to-maturity portfolio was valued at$ 52.9 billion, with a significant portion in government and agency securities[23] - The fair value of mortgage-backed securities in the available-for-sale category was $5.8 billion, with a 99% rating[20] - The company reported a loss of$ 294 million on the sale of investment securities related to repositioning efforts[46] Market and Growth - The company is focusing on enhancing its investment management services and expanding its market presence through strategic initiatives[39] - Total Assets Under Management increased to $4.336 billion in 1Q24, reflecting a 19.8% growth year-over-year[28] - North America saw total flows of$ 212.2 billion in 1Q24, with ETFs contributing $265.2 billion, a significant increase[32]