State Street Corp Q1 2024 10-Q Filing

Ticker: STT-PG · Form: 10-Q · Filed: May 2, 2024 · CIK: 93751

State Street Corp 10-Q Filing Summary
FieldDetail
CompanyState Street Corp (STT-PG)
Form Type10-Q
Filed DateMay 2, 2024
Risk Levellow
Pages15
Reading Time18 min
Key Dollar Amounts$1, $43.91, $4.34, $338.00 b, $251.88 b
Sentimentneutral

Sentiment: neutral

Topics: 10-Q, regulatory-filing, quarterly-report

Related Tickers: STT

TL;DR

**STT Q1 2024 10-Q filed. All good on reporting.**

AI Summary

State Street Corporation (STT) filed its quarterly report for the period ended March 31, 2024. The filing indicates that the company has met its reporting requirements for the preceding 12 months and the past 90 days. State Street's common stock is traded on the New York Stock Exchange under the symbol STT.

Why It Matters

This filing provides investors with an update on State Street's financial performance and regulatory compliance for the first quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing that confirms compliance with reporting requirements.

Key Players & Entities

  • State Street Corporation (company) — Registrant
  • STT (company) — Trading Symbol for Common Stock
  • STT.PRG (company) — Trading Symbol for Preferred Stock
  • New York Stock Exchange (company) — Exchange where securities are registered
  • March 31, 2024 (date) — Quarterly period end date

FAQ

Has State Street Corporation filed all required reports for the preceding 12 months?

Yes, the filing indicates that State Street Corporation has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months.

Has State Street Corporation been subject to the filing requirements for the past 90 days?

Yes, the filing indicates that State Street Corporation has been subject to such filing requirements for the past 90 days.

What is the trading symbol for State Street Corporation's common stock?

The trading symbol for State Street Corporation's common stock is STT.

On which exchange is State Street Corporation's common stock registered?

State Street Corporation's common stock is registered on the New York Stock Exchange.

What is the period covered by this quarterly report?

This quarterly report is for the quarterly period ended March 31, 2024.

Filing Stats: 4,424 words · 18 min read · ~15 pages · Grade level 17.5 · Accepted 2024-05-02 07:45:49

Key Financial Figures

  • $1 — ange on which registered Common Stock, $1 par value per share STT New York Stoc
  • $43.91 — institutional investors worldwide, with $43.91 trillion of AUC/A and $4.34 trillion of
  • $4.34 — wide, with $43.91 trillion of AUC/A and $4.34 trillion of AUM as of March 31, 2024.
  • $338.00 b — 24, we had consolidated total assets of $338.00 billion, consolidated total deposits of $
  • $251.88 b — billion, consolidated total deposits of $251.88 billion, consolidated total shareholders'
  • $24.43 billion — solidated total shareholders' equity of $24.43 billion and approximately 46,000 employees. Ou
  • $130 million — period of 2023, primarily reflecting a $130 million increase to the FDIC special assessment
  • $0.32 — ecial assessment which decreased EPS by $0.32 in the first quarter of 2024. Total re
  • $308 million — . We returned a total of approximately $308 million to our shareholders in the form of comm

Filing Documents

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Management's Discussion and Analysis of Financial Condition and Results of Operations 4

Management's Discussion and Analysis of Financial Condition and Results of Operations 4 General 4 Overview of Financial Results 8 Consolidated Results of Operations 10 Total Revenue 10 Net Interest Income 18 Provision for Credit Losses 21 Expenses 21 Repositioning Charges 22 Income Tax Expense 22 Line of Business Information 22 Investment Servicing 23 Investment Management 23 Financial Condition 24 Investment Securities 25 Loans 27 Risk Management 28 Credit Risk Management 28 Liquidity Risk Management 29 Operational Risk Management 33 Information Technology Risk Management 33 Market Risk Management 33 Model Risk Management 37 Strategic Risk Management 37 Capital 38 Off-Balance Sheet Arrangements 45 Other Matters 46 Recent Accounting Developments 46

Quantitative and Qualitative Disclosures About Market Risk 47

Quantitative and Qualitative Disclosures About Market Risk 47

Controls and Procedures 47

Controls and Procedures 47 Consolidated Financial Statements 48 Consolidated Statement of Income (unaudited) 48 Consolidated Statement of Comprehensive Income (unaudited) 49 Consolidated Statement of Condition 50 Consolidated Statement of Changes in Shareholders' Equity (unaudited) 51 Consolidated Statement of Cash Flows (unaudited) 52 Note 1. Summary of Significant Accounting Policies 53 Note 2. Fair Value 54 Note 3. Investment Securities 57 Note 4. Loans and Allowance for Credit Losses 60 Note 5. Goodwill and Other Intangible Assets 65 Note 6. Other Assets 65 Note 7. Derivative Financial Instruments 66 Note 8. Offsetting Arrangements 69 Note 9. Commitments and Guarantees 72 Note 10. Contingencies 72 Note 11. Variable Interest Entities 74 Note 12. Shareholders' Equity 75 Note 13. Regulatory Capital 77 Note 14. Net Interest Income 78 Note 15. Expenses 78 Note 16. Earnings Per Common Share 79 Note 17. Line of Business Information 79 Note 18. Revenue from Contracts with Customers 80 Note 19. Non-U.S. Activities 81 Review Report of Independent Registered Public Accounting Firm 82

OTHER INFORMATION

PART II OTHER INFORMATION

Unregistered Sales of Equity Securities and Use of Proceeds 85

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 85

Other Information 85

Item 5 Other Information 85

Exhibits 86

Item 6 Exhibits 86 Signatures 87 We use acronyms and other defined terms for certain business terms and abbreviations, as defined in the acronyms list and glossary following the consolidated financial statements in this Form 10-Q.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION GENERAL As of March 31, 2024, we had consolidated total assets of $338.00 billion, consolidated total deposits of $251.88 billion, consolidated total shareholders' equity of $24.43 billion and approximately 46,000 employees. Our operations are organized into two lines of business, Investment Servicing and Investment Management, which are defined based on products and services provided. Additional information about our lines of business is provided in Line of Business Information in this Management's Discussion and Analysis and Note 17 to the consolidated financial statements in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 (Form 10-Q). Our executive offices are located at One Congress Street, Boston, Massachusetts 02114 (telephone (617) 786-3000). For purposes of this Form 10-Q, unless the context requires otherwise, references to "State Street," "we," "us," "our" or similar terms mean State Str

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS taxable-equivalent NII that reports non-taxable revenue, such as interest income associated with tax-exempt investment securities, on a fully taxable-equivalent basis, which we believe facilitates an investor's understanding and analysis of our underlying financial performance and trends. We provide additional disclosures required by applicable bank regulatory standards, including supplemental qualitative and quantitative information with respect to regulatory capital (including market risk associated with our trading activities), the LCR and NSFR, summary results of annual State Street-run stress tests which we conduct under the Dodd-Frank Act, and recovery and resolution plan disclosures. These additional disclosures are accessible on the "Filings & reports" tab of our website at investors.statestreet.com . We have included our website address in this report as an inactive textual reference only. Information on our website is not incorporated by reference into this Form 10-Q. We use acronyms and other defined terms for certain business terms and abbreviations, as defined in the acronyms list and glossary following the consolidated financial statements in this Form 10-Q.

Forward-Looking Statements

Forward-Looking Statements This Form 10-Q, as well as other reports and proxy materials submitted by us under the Securities Exchange Act of 1934, registration statements filed by us under the Securities Act of 1933, our annual report to shareholders and other public statements we may make, may contain statements (including statements in our Management's Discussion and Analysis included in such reports, as applicable) that are considered "forward-looking statements" within the meaning of U.S. securities laws, including statements about our goals and expectations regarding our business, financial and capital condition, results of operations, strategies, cost savings and transformation initiatives, investment portfolio performance, climate, dividend and stock purchase programs, acquisitions, outcomes of legal proceedings, market growth, joint ventures and divestitures, client growth, new technologies, services and opportunities, sustainability and impact, human capital, as well as industry, governmental, regulatory, economic and market trends, initiatives and developments, the business environment and other matters that do not relate strictly to historical facts. Terminology such as "expect," "outlook," "will," "goal," "target," "strategy," "may," "estimate," "plan," "intend," "objective," "forecast," "believe," "priority," "anticipate," "seek," and "trend," or similar statements or variations of such terms, are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. Forward-looking statements are subject to various risks and uncertainties, which change over time, are based on management's expectations and assumptions at the time the statements are made and are not guarantees of future results. Management's expectations and assumptions, and the continued validity of the forward-looking statements, are subject to change due to a broad range of factors affecting the U.S. and global economies, regulatory enviro

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS assets classes globally or within specific markets; We have significant global operations and clients that can be adversely impacted by disruptions in key global economies, including local, regional and geopolitical developments affecting those economies; Our investment securities portfolio, consolidated financial condition and consolidated results of operations could be adversely affected by changes in the financial markets, governmental action or monetary policy. For example, among other risks, increases in prevailing interest rates or market conditions have led, and were they to occur in the future could further lead, to reduced levels of client deposits and resulting decreases in our NII or to portfolio management decisions resulting in reductions in our capital or liquidity ratios; Our business activities expose us to interest rate risk; We assume significant credit risk of counterparties, who may also have substantial financial dependencies on other financial institutions, and these credit exposures and concentrations could expose us to financial loss; Our fee revenue represents a significant portion of our revenue and is subject to decline based on, among other factors, market and currency declines, investment activities and preferences of our clients and their business mix; If we are unable to effectively manage our capital and liquidity, our financial condition, capital ratios, results of operations and business prospects could be adversely affected; Our calculations of risk exposures, total RWA and capital ratios depend on data inputs, formulae, models, correlations and assumptions that are subject to change, which could materially impact our risk exposures, our total RWA and our capital ratios from period to period; We may need to raise additional capital or debt in the future, which may not be available to us or may only be available on unfavorable terms; and

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS potential for related losses, and a failure or circumvention of our controls and procedures, or errors or delays in our operational and transaction processing, or those of third parties, could have an adverse effect on our business, financial condition, operating results and reputation; Shifting and maintaining operational activities to non-U.S. jurisdictions, changing our operating model, including by consolidating our operations joint ventures in India, and outsourcing to, or insourcing from, third parties expose us to increased operational risk, geopolitical risk and reputational harm and may not result in expected cost savings or operational improvements; Attacks or unauthorized access to our or our business partners' or clients' information technology systems or facilities, such as cyber-attacks or other disruptions to our or their operations, could result in significant costs, reputational damage and impacts on our business activities; Long-term contracts and customizing service delivery for clients expose us to increased operational risk, pricing and performance risk; We may not be able to protect our intellectual property or may infringe upon the rights of third parties; The quantitative models we use to manage our business may contain errors that could adversely impact our business, financial condition, operating results and regulatory compliance; Our reputation and business prospects may be damaged if investors in the collective investment pools we sponsor or manage incur substantial losses in these investment pools or are restricted in redeeming their interests in these investment pools; The impacts of climate change, and regulatory responses, and disclosure requirements related to such risks, could adversely affect us; and We may incur losses or face negative impacts on our business as a result of unforeseen events including terrorist attacks, natural disaste

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW OF FINANCIAL RESULTS TABLE 1: OVERVIEW OF FINANCIAL RESULTS Three Months Ended March 31, % Change (Dollars in millions, except per share amounts) 2024 2023 Total fee revenue $ 2,422 $ 2,335 4 % Net interest income 716 766 (7) Total revenue 3,138 3,101 1 Provision for credit losses 27 44 (39) Total expenses 2,513 2,369 6 Income before income tax expense 598 688 (13) Income tax expense 135 139 (3) Net income $ 463 $ 549 (16) Adjustments to net income: Dividends on preferred stock (1) $ (45) $ (23) 96 Earnings allocated to participating securities (2) — (1) nm Net income available to common shareholders $ 418 $ 525 (20) Earnings per common share: Basic $ 1.38 $ 1.54 (10) Diluted 1.37 1.52 (10) Average common shares outstanding (in thousands): Basic 301,991 341,106 (11) Diluted 305,943 345,472 (11) Cash dividends declared per common share $ 0.69 $ 0.63 10 Return on average common equity 7.7 % 9.3 % (160) bps Pre-tax margin 19.1 22.2 (310) (1) Additional information about our preferred stock dividends is provided in Note 12 to the consolidated financial statements in this Form 10-Q. (2) Represents the portion of net income available to common equity allocated to participating securities, composed of unvested and fully vested SERP (supplemental executive retirement plans) shares and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings. n m Not meaningful The following "Financial Results and Highlights" section provides information related to significant events, as well as highlights of our consolidated financial results for the first quarter of 2024 presented in Table 1: Overview of Financial Results. More detailed information about our consolidated financial results, including the compa

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Revenue Total fee revenue increased 4% in the first quarter of 2024, compared to the same period of 2023, reflecting higher management fees, software and processing fees, servicing fees and other fee revenue, partially offset by lower securities finance and FX trading services revenue. Servicing fee revenu e increased 1% i n the first quarter of 2024, compared to the same period of 2023, primarily driven by higher average market levels, partially offset by pricing headwinds, lower client activity and adjustments, including changes in client asset mix, and a previously disclosed client transition. Management fee revenue increased 12% in the first quarter of 2024, compared to the same period of 2023, as higher average market levels and net inflows from prior periods were partially offset by the impact of a previously disclosed strategic ETF product suite repricing initiative. Foreign exchange trading services revenue decreased 3% in the first quarter of 2024, compared to the same period of 2023, primarily due to lower spreads associated with subdued market volatility, partially offset by higher client FX volumes. Securities finance revenue decreased 12% in the first quarter of 2024, compared to the same period of 2023, largely driven by lower agency balances and lower spreads primarily due to muted industry specials activity. Software and processing fees revenue increased 25% in the first quarter of 2024, compared to the same period of 2023, primari

View Full Filing

View this 10-Q filing on SEC EDGAR

View on ReadTheFiling | About | Contact | Privacy | Terms

Data from SEC EDGAR. Not affiliated with the SEC. Not investment advice. © 2026 OpenDataHQ.