State Street Corporation (NYSE: STT), based in Boston, MA, is a major provider of financial services to institutional investors, including investment servicing and investment management, with approximately $46.6 trillion in assets under custody and/or administration and $4.7 trillion in assets under management as of December 31, 2024.

In the fourth quarter of 2024, State Street reported a significant rise in its financial performance. Total revenue increased 12% year-over-year to $3.41 billion, up from $3.04 billion in 4Q23. Fee revenue rose 13% to $2.66 billion, driven by broad strength across the company’s offerings. Net interest income grew 10% to $749 million compared to $678 million in the same period last year.

Operating expenses for the quarter decreased 14% year-over-year to $2.44 billion, down from $2.82 billion in 4Q23. This decrease was attributed to notable items from the previous year, which included a significant FDIC special assessment of $387 million in 4Q23. When excluding these notable items, total expenses increased 8% from the prior year.

Net income surged to $783 million compared to $210 million in 4Q23, representing a substantial year-over-year increase. As a result, diluted earnings per share (EPS) rose to $2.46 from $0.55 in the prior year.

Return on average common equity (ROE) improved to 12.7% in 4Q24 from 3.1% in 4Q23. Excluding notable items, ROE reached 13.5%. The pre-tax margin was reported at 28.1%, remaining stable compared to 28.4% in the previous quarter but showing significant improvement from 6.6% year-over-year.

Assets under custody and/or administration (AUC/A) increased 11% year-over-year, totaling $46.6 trillion, up from $41.8 trillion in 4Q23. Assets under management (AUM) also rose 15% from the prior year, reaching $4.7 trillion compared to $4.1 trillion in the same period last year.

State Street’s confidence in its operating performance was evident in its capital return policy, with the company returning $770 million to common shareholders during the quarter, comprising $550 million in share repurchases and $220 million in dividends paid, reflecting 106% of net income available to common shareholders.

Additionally, the common equity tier 1 (CET1) ratio stood at 10.9%, a decrease from 11.6% year-over-year, primarily due to increased capital return and higher deployment of risk-weighted assets for business growth.