Q1 2024 State Street Corp Earnings Call Transcript
Key Points
- State Street Corporation reported both fee and total revenue growth while continuing to invest in the business and controlling underlying expenses.
- Positive fee and total operating leverage were achieved, as well as solid EPS growth in Q1 relative to the year-ago period, excluding notable items.
- Asset under custody/administration (AUC/A) increased to a record $43.9 trillion, with Q1 asset servicing AUC/A wins of $474 billion.
- State Street's Global Advisors saw management fees of $510 million, the highest since Q1 2022, and ETF AUM reached a record $1.4 trillion.
- The consolidation of operations joint ventures in India is expected to unlock productivity savings and simplify the operating model.
- The first quarter saw a notable item related to the increase to the FDIC special assessment, impacting EPS.
- Lower net interest income (NII) on total revenue due to deposit mix shift and lower average noninterest-bearing deposit balances.
- Servicing fee revenue is facing headwinds due to pricing pressures, a previously disclosed client transition, and lower client activity.
- Securities finance revenues were down 12% year-on-year, mainly due to lower agency balances and lower spreads.
- Software and processing fees declined 13% sequentially, primarily due to lower on-premise renewals.
Good morning, and welcome to State Street Corporation's First Quarter 2024 Earnings Conference Call and Webcast. 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 or rebroadcasted for 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 introduce Ilene Fiszel Bieler, Global Head of Investor Relations at State Street. Please go ahead.
Thank you. Good morning, and thank you all for joining us. On our call today, our CEO, Ron O'Hanley, will speak first. Then Eric Aboaf, our CFO, will take you through our first quarter of 2024 earnings slide presentation, which is available for download in the Investor
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