Q1 2025 State Street Corp Earnings Call Transcript
Key Points
- State Street Corp (STT) reported a strong start to the year with a 21% year-over-year EPS growth, excluding notable items.
- Fee revenue increased by 6% year over year, contributing to a 5% rise in total revenue.
- The company achieved positive fee and total operating leverage, resulting in margin expansion.
- New asset servicing AUC/A wins amounted to $182 billion, with new servicing fee revenue wins totaling $55 million.
- Management fees increased by 10% year over year, driven by higher average market levels and prior-period net inflows.
- The current environment presents uncertainty, with potential variability in the operating environment affecting future performance.
- Net outflows of $13 billion were primarily driven by an anticipated client transition within the institutional business.
- Non-interest-bearing deposits declined by 5% in Q1, which could impact net interest income if the trend continues.
- NII was relatively flat compared to the year-ago period, with a 5% sequential decrease due to changes in deposit mix and lower short-end rates.
- The company faces potential challenges from geopolitical tensions and regulatory changes, which could impact its global operations.
Good morning and welcome to State Street Corporation's first-quarter 2025 earnings conference call and webcast. Today's call will be hosted by Elizabeth Lynn, Head of Investor Relations at State Street. (Operator Instructions)
Today's discussion is being broadcasted live on State Street's website at investors.statestreet.com. This conference call is also being recorded for replay. State Street's conference call is copyrighted, and all rights are reserved. This call may not be recorded for rebroadcast or distribution in whole or in part without the expressed written authorization from State Street Corporation. The only authorized broadcast of this call will be housed on the State Street website.
Now I would like to hand the call over to Elizabeth Lynn.
Good morning and thank you all for joining us. On our call today, our CEO, Ron O'Hanley will speak first. Then Mark Keating, our interim CFO, will take you through our first-quarter 2025 earnings
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