State Street Tops Q4 EPS by 9c

State Street (STT) reported Q4 EPS of $2.07, $0.09 better than the analyst estimate of $1.98. Revenue for the quarter came in at $3.16 billion versus the consensus estimate of $3.03 billion.

Ron O'Hanley, Chairman and Chief Executive Officer: "Our distinctive value proposition and diversified service offerings enabled us to perform well in 4Q22 and the full year despite a challenging environment that included volatile global markets, geopolitical tensions, rising inflation and significant central bank actions." O'Hanley continued: "We generated positive operating leverage and expanded pre-tax margin as higher net interest income, fee revenue growth in Front office software and data revenue and our higher margin FX franchise, as well as well-controlled expenses, more than offset revenue headwinds from weaker global market levels. Notwithstanding the macro environment, we continued to see business momentum as evidenced by another strong year of AUC/A servicing wins and backlog." O'Hanley concluded: "As we enter 2023, we will continue to execute against our strategic priorities, innovate for our clients, and transform the way we work, driving financial growth and increasing shareholder value. Today's announced authorization to repurchase up to $4.5 billion in common stock during 2023 reinforces our confidence in the earnings generating power of the franchise and demonstrates our focus on returning excess capital to our shareholders.