State Street (STT) Gains on Q2 Earnings Beat, Y/Y Revenue Rise

Core Viewpoint - State Street's second-quarter 2024 earnings exceeded expectations, driven by growth in fee revenues and net interest revenues, despite a decline in net income compared to the previous year [1][2]. Financial Performance - Earnings per share were $2.15, surpassing the Zacks Consensus Estimate of$2.01, but down 1% year over year [1]. - Total revenues reached $3.19 billion, a 2.6$3.15 billion [2]. - Net income available to common shareholders was $655 million, a decrease of 9.8$735 million, up 6.4% year over year, driven by higher investment securities yields and loan growth [2]. - Total fee revenues increased by 1.5% year over year to $2.46 billion [2]. Expense Analysis - Non-interest expenses rose to$2.27 billion, up 2.6% from the prior-year quarter, attributed to increases in almost all cost components [2]. - The net interest margin contracted by 6 basis points year over year to 1.13% [2]. Asset Management - Total assets under custody and administration were $44.31 trillion, an 11.9$4.42 trillion, up 16.3% year over year, primarily due to higher market levels and net inflows [4]. Shareholder Actions - In the reported quarter, State Street repurchased shares worth $200 million [5]. Capital Ratios - The Common Equity Tier 1 ratio was 11.2% as of June 30, 2024, down from 11.8% in the same period of 2023 [3]. - Return on common equity was 11.9%, compared to 13.0% in the year-ago quarter [3].