- State Street reported 4Q revenue of $3.41 billion, exceeding estimates of $3.34 billion, marking a 12% year-over-year increase.
- Fee revenue rose to $2.66 billion, representing a 13% increase compared to the previous year.
- Net interest income reached $749 million, surpassing estimates of $736.9 million, with a 10% year-over-year rise.
- The full-time equivalent net interest margin was 1.07%, slightly below the estimate of 1.08% and down from 1.16% the previous year.
- Provision for credit losses decreased significantly by 40% year-over-year to $12 million, better than the estimated $15.2 million.
- Net flows stood at +$64 billion, falling short of the +$75.71 billion estimate and down 38% year-over-year.
- Assets under management totaled $4.72 trillion, a quarter-over-quarter decline of 0.4%, missing the estimate of $4.88 trillion.
- Assets under custody/administration were $46.56 trillion, representing a 0.4% decrease from the previous quarter and below the estimated $47.68 trillion.
- The Common Equity Tier 1 ratio was 10.9%, down from 11.6% the previous year, and below the estimate of 11.4%.
- Return on average equity significantly increased to 12.7% from 3.1% the previous year.
- Earnings per share were reported at $2.46, exceeding both the previous year’s 55 cents and the estimate of $2.43.
- The stock consensus includes 8 buys, 7 holds, and 3 sells from analysts.
“`
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
Analysts utilizing Smartkarma Smart Scores have assessed State Street Corporation’s long-term outlook based on key factors. With strong scores in Value and Dividend at 4 each, State Street is perceived favorably in terms of its valuation and dividend payments to investors. However, its Growth score of 3 indicates room for improvement in expanding its operations. The Resilience score of 2 suggests that the company may face some challenges in maintaining stability during adverse market conditions. Nevertheless, with a Momentum score of 4, State Street shows promising signs of positive price trends and market sentiment.
State Street Corporation, a global financial services provider servicing institutional investors, offers an array of products and services including custody, accounting, investment management, and securities lending. With a solid foundation in Value and Dividend, State Street has the potential to attract investors seeking stable returns. To further enhance its position in the market, focusing on improving Growth and Resilience could be key areas for the company’s long-term success.
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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