State Street Corporation (NYSE:STT) reported first-quarter earnings that exceeded expectations, supported by record revenue across its business segments. Shares rose more than 3% intraday Friday.
The company posted adjusted earnings per share of $2.84, beating the consensus estimate of $2.62. Revenue reached a record $3.8 billion, up 16% from $3.3 billion in the prior-year period and above analyst forecasts. GAAP earnings per share were $2.49.
Revenue growth was driven by record fee revenue of $3.0 billion, up 15% year over year, and net interest income of $835 million, which increased 17%. Net interest margin expanded 16 basis points to 1.16%.
Total expenses rose 15% to $2.8 billion, including $130 million in notable items primarily related to repositioning initiatives and client rescoping. Excluding these items, expenses increased 9%, reflecting higher revenue-related costs and continued investments.
Assets under custody and administration grew 17% to $54.5 trillion, while assets under management rose 20% to $5.6 trillion, benefiting from stronger market conditions and positive client flows.
