State Street(STT) ZACKS·2024-11-14 17:35Core Viewpoint - State Street Corporation reported strong Q3 2024 earnings, surpassing estimates and showing significant year-over-year growth in both earnings and revenues, driven by increased fee revenues and net interest income (NII) [2][4][10]. Financial Performance - Adjusted earnings per share for Q3 2024 were 2.08, and reflecting a 17.1% increase from the prior year [2]. - Net income available to common shareholders reached 3.34 billion, an 11.9% year-over-year increase, and exceeded the Zacks Consensus Estimate of 723 million, up 15.9% year over year, driven by higher investment securities yields and loan growth [4]. - Total fee revenues increased by 10.8% to 2.31 billion, a 5.9% increase, attributed to higher costs across nearly all components [5]. - The provision for credit losses was 500 million [12]. Asset Management - As of September 30, 2024, total assets under custody/administration (AUC/A) reached 4.73 trillion, up 28.9%, primarily due to higher market levels and net inflows [7]. Shareholder Returns - In the reported quarter, State Street repurchased shares worth 350-$400 million in 2024, with total fee revenues expected to be at or slightly above the higher end of the 4-5% growth range [10]. - The average deposit balance is projected to remain stable in the second half of 2024 [11]. - CET1 and Tier 1 leverage ratios are expected to be between 10-11% and 5.25-5.75%, respectively [13]. Industry Context - State Street operates within the Zacks Banks - Major Regional industry, where peers like The Bank of New York Mellon Corporation have also reported positive earnings growth [17][18].