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STT
STT State Street (STT) Q4 FY24 earnings call
State Street concluded FY24 with strong Q4 results, driven by broad-based fee growth, higher NII, and robust capital returns. The company achieved its sales goals for servicing fees and Alpha mandates, demonstrating improved sales performance and strategic investments in capabilities. Management expects continued positive fee operating leverage in 2025, contingent on NII performance, and aims to return approximately 80% of earnings to shareholders.
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STT operating KPIs by quarter
| KPI | This call Dec 2024 Q4 FY24 | Mar 2025 Q1 FY25 | Sep 2025 Q3 FY25 | Dec 2025 Q4 FY25 | Mar 2026 Q1 FY26 | Jun 2026 Q2 FY26 | Sep 2026 Q3 FY26 | Change vs prior quarter |
|---|---|---|---|---|---|---|---|---|
| Net new assets | $64BWe generated $146 billion of net new assets in 2024, including $64 billion in 4Q.Source: earnings call transcript | -$13BFor the quarter, net inflows -- net outflows totaled $13 billion and were primarily driven by an anticipated client transition within our institutional business.Source: earnings call transcript | $26BNet inflows totaled $26 billion for the quarter, reflecting solid momentum across ETFs, cash and institutional index fixed income.Source: earnings call transcript | $85BManagement fees increased 15% year-over-year to a new quarterly record of $662 million, driven by higher average market levels and quarterly net inflows of $85 billion, supported by strong performance across our ETFs, cash and institutional segments.Source: earnings call transcript | $49MNet inflows totaled $49 million for the quarter, led by strength across index strategies and solutions, including ETFs and fixed income as well as our cash franchise.Source: earnings call transcript | $114BNet inflows totaled $114 billion in the quarter, marking our fifth consecutive quarter of positive organic growth.Source: earnings call transcript | $7BAs Ron noted, we delivered our sixth consecutive quarter of positive organic AUM growth with net inflows of $7 billion.Source: earnings call transcript | -93.9% |
| Common equity tier 1 ratio (CET1) | 10.9%As of quarter end, our standardized CET1 ratio of 10.9% was down approximately 70 basis points quarter-on-quarter.Source: earnings call transcript | 11%As of quarter end, our standardized CET1 ratio of 11% was up approximately 10 basis points quarter-over-quarter.Source: earnings call transcript | 11.3%Our standardized CET1 ratio was 11.3% at quarter end, up approximately 60 basis points quarter-over-quarter, reflecting capital generated from earnings and a decline in risk-weighted assets coming off of the elevated FX volatility of the prior quarter.Source: earnings call transcript | 11.7%At quarter end, our standardized CET1 ratio was 11.7%, up approximately 40 basis points from the prior quarter, primarily reflecting a decline in risk-weighted assets with the largest driver being market dynamics in our FX trading and agency lending businesses.Source: earnings call transcript | 10.6%At quarter end, our standardized CET1 ratio was 10.6%, down approximately 100 basis points from the prior quarter.Source: earnings call transcript | 10.8%Our standardized CET1 and Tier 1 leverage ratios were 10.8% and 5.3%, respectively, broadly stable relative to the first quarter.Source: earnings call transcript | — | +0.2 pt |
| Backlog | ~$350MOne other thing I would -- one other way to think about the sustainability of our fee revenue growth, servicing fees is to also take a look at the backlog that we've been now disclosing over the last several quarters, which is roughly $350 million at the end of 2024.Source: earnings call transcript | — | ~$400MThis momentum is reflected in our third quarter servicing fee revenue backlog of approximately $400 million, up roughly 40% from the prior year.Source: earnings call transcript | — | — | — | — | — |
| Assets under management (AUM) gold ETFs | — | $100B+Further, we saw strong ETF flows in EMEA, while the commodities ETF segment gained market share, benefiting from market volatility in our industry-leading gold ETFs, which exceeded $100 billion of AUM for the first time.Source: earnings call transcript | ~$145BOur gold ETF suite further strengthened its market leadership, reaching a record AUM of approximately $145 billion.Source: earnings call transcript | — | — | — | — | — |
| Return on tangible common equity (ROTCE) | — | 16%+While we've seen uncertainty weigh on global equity markets in recent weeks, our first quarter results demonstrate the strength of our business with a nearly 2 percentage point expansion of our pretax margin year-over-year, excluding notable items and an ROTCE of over 16% for the quarter.Source: earnings call transcript | 21%For example, 3Q marked our seventh consecutive quarter of positive total operating leverage, excluding notable items as we delivered total revenue growth of 9%, a pretax margin of 31% and return on tangible common equity of 21%.Source: earnings call transcript | — | — | ~26%These results drove another quarter of improved profitability, with pretax margin expanding 470 basis points year-over-year to 34% and ROTCE increasing over 6 percentage points to approximately 26%.Source: earnings call transcript | 25%Combined with a pretax margin of 35% and a return on tangible common equity of 25%, these results reflect both the strength of our franchise today and the investments we are making to position State Street for long-term growth.Source: earnings call transcript | — |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.