- State Street‘s third-quarter revenue was $3.26 billion, surpassing estimates and showing a 21% year-over-year increase.
- Fee revenue reached $2.62 billion, an 11% increase from the previous year and higher than the expected $2.49 billion.
- Net interest income amounted to $723 million, a 16% rise year-over-year, exceeding the estimate of $698.7 million.
- The provision for credit losses was $26 million, up from $0 the previous year, slightly above the $24 million estimate.
- State Street recorded net flows of +$100 billion, significantly surpassing last year’s +$10 billion and the estimated +$3.42 billion.
- Assets under management totaled $4.73 trillion, a 7.2% increase quarter-over-quarter, above the expected $4.51 trillion.
- Assets under custody/administration were $46.76 trillion, up 5.5% quarter-over-quarter and higher than the $45.75 trillion estimate.
- The Common Equity Tier 1 ratio improved to 11.6%, exceeding the previous year’s 11% and the estimated 11.4%.
- Return on average equity was 12%, a significant improvement from last year’s 7.3%.
- Analyst ratings consist of 6 buy recommendations, 8 holds, and 3 sells.
A look at State Street Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
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‘s long-term outlook using Smartkarma Smart Scores reveals a promising trajectory for the company. With a strong Value score of 4 and a respectable Dividend score of 4, State Street demonstrates solid fundamentals and a commitment to rewarding shareholders through dividends.
Furthermore, while the Growth score of 3 indicates moderate growth prospects, State Street shines in terms of Momentum with a top score of 5, suggesting a strong positive trend in the company’s stock performance. However, the Resilience score of 2 highlights a potential area of improvement for the company to enhance its ability to withstand market fluctuations moving forward.
### Summary: State Street Corporation services institutional investors and manages financial assets worldwide. The Company’s products and services include custody, accounting, administration, daily pricing, international exchange services, cash management, financial asset management, securities lending, and investment advisory services. ###
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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