- State Street‘s Q2 revenue surpassed expectations at $3.19 billion, marking a 2.6% year-over-year increase, compared to the estimated $3.14 billion.
- Fee revenue slightly increased by 1.5% year-over-year to $2.46 billion, which met the estimate of $2.45 billion.
- Reported earnings per share (EPS) were $2.15, a slight decrease from $2.17 year-over-year.
- Net interest income grew by 6.4% year-over-year to $735 million, exceeding the estimated $690.2 million.
- The Fully Taxable Equivalent (FTE) net interest margin was 1.13%, slightly lower than last year’s 1.19%, but higher than the estimated 1.1%.
- Provision for credit losses was $10 million this quarter, contrasting with a recovery of $18 million the previous year and an estimated $17.2 million.
- Net flows showed a significant decline, registering -$6 billion compared to +$38 billion last year and an estimated +$30.94 billion.
- Assets under management increased by 1.8% quarter-over-quarter to $4.42 trillion, beating the estimate of $4.37 trillion.
- Assets under custody/administration marginally increased by 0.9% quarter-over-quarter to $44.31 trillion, slightly missing the estimate of $44.73 trillion.
- The Common Equity Tier 1 ratio stood at 11.2%, compared to 11.8% last year and an estimated 11.1%.
- Return on average equity was 11.9%, down from 13% year-over-year.
- Analyst ratings were mixed with 7 buys, 7 holds, and 4 sells.
A look at State Street Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analyzing State Street Corporation’s long-term outlook using the Smartkarma Smart Scores reveals a positive sentiment towards the company. With strong scores in Value and Dividend categories, State Street is perceived favorably in terms of its financial health and ability to provide steady returns to investors. Additionally, the company’s Momentum score indicates a positive trend in its stock performance, suggesting growing confidence from the market.
However, State Street‘s scores in Growth and Resilience are relatively lower, highlighting areas where the company may need to focus on improving its competitiveness and ability to withstand economic challenges. Overall, State Street Corporation, a global financial asset management firm catering to institutional investors, shows promise for long-term investors, particularly those seeking value and stability in their investment portfolios.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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