European Investor
18 Apr 2026, 23:07
State Street Corporation reported a strong start to 2026, posting first-quarter earnings per share of $2.49, or $2.84 excluding notable items, alongside record revenue performance driven by broad-based growth across its businesses. Total revenue rose 16% year-over-year to $3.8 billion, supported by a 15% increase in fee revenue and a 17% rise in net interest income, while net income climbed 19% to $764 million.
The company highlighted significant expansion in its core asset base, with assets under custody and administration (AUC/A) increasing 17% to $54.5 trillion and assets under management (AUM) rising 20% to $5.6 trillion, largely reflecting favorable market conditions and net inflows. Operational momentum was also evident in new business wins, including $56 million in servicing fee revenue and $365 billion in new AUC/A mandates during the quarter.
Growth was broad across segments, with management fees up 23%, foreign exchange trading revenue rising 29%, and servicing fees increasing 11%. The firm also reported record FX trading volumes and continued gains in ETF inflows and software-related revenues. Despite a 15% increase in expenses—partly due to restructuring and investment costs—State Street maintained solid profitability, delivering a pre-tax margin of 25.5% and positive operating leverage.
CEO Ron O’Hanley emphasized the company’s resilience and diversified model, noting that continued strategic execution and client-focused operations drove the strong quarterly performance, while acknowledging ongoing macroeconomic and geopolitical uncertainties.
The company highlighted significant expansion in its core asset base, with assets under custody and administration (AUC/A) increasing 17% to $54.5 trillion and assets under management (AUM) rising 20% to $5.6 trillion, largely reflecting favorable market conditions and net inflows. Operational momentum was also evident in new business wins, including $56 million in servicing fee revenue and $365 billion in new AUC/A mandates during the quarter.
Growth was broad across segments, with management fees up 23%, foreign exchange trading revenue rising 29%, and servicing fees increasing 11%. The firm also reported record FX trading volumes and continued gains in ETF inflows and software-related revenues. Despite a 15% increase in expenses—partly due to restructuring and investment costs—State Street maintained solid profitability, delivering a pre-tax margin of 25.5% and positive operating leverage.
CEO Ron O’Hanley emphasized the company’s resilience and diversified model, noting that continued strategic execution and client-focused operations drove the strong quarterly performance, while acknowledging ongoing macroeconomic and geopolitical uncertainties.