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BOSTON - State Street Corporation (NYSE:STT) reported first quarter earnings that beat analyst expectations on Thursday, though revenue came in slightly below forecasts as the financial services firm navigates an uncertain economic environment.
State Street shares dipped -0.95% in pre-market trading following the earnings release.
The Boston-based company posted adjusted earnings per share of $2.04 for the quarter, surpassing the consensus estimate of $2.00. However, revenue of $3.28 billion fell short of analysts’ projections of $3.32 billion.
State Street saw broad-based growth across its business segments in Q1. Servicing fees rose 4% YoY to $1.28 billion, while management fees increased 10% to $562 million. Foreign exchange trading services revenue grew 9% to $362 million.
"Our first quarter results reflect cross-firm growth, strong financial performance and a solid start to the year," said Ron O’Hanley, Chairman and CEO of State Street. "Through broad-based year-over-year fee revenue growth and continued expense discipline, we achieved positive fee and total operating leverage alongside healthy pre-tax margin expansion."
The company’s assets under custody and/or administration (AUC/A) increased 6% YoY to $46.7 trillion as of quarter-end. Assets under management (AUM) rose 9% to $4.7 trillion.
Looking ahead, O’Hanley noted that while the current operating environment requires adaptability, he believes State Street has "the correct strategy in place to continue to deliver sustained growth for our shareholders over the long term."
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