State Street Is Worth Keeping An Eye On
Wed, Jul. 27, 1:00 PM
Wed, Jul. 27, 10:46 AM
- Q2 net income of $582M or $1.46 per share vs. $565M and $1.36 one year ago.
- Total fee revenue of $2.13B down 2% Y/Y. Net interest revenue of $546M down 1.8%. Expenses of $1.828B down 2.8%.
- Concerning the Brexit vote, the outlook for European operations has not been affected other than the impact of lower for longer interest rates.
- $390M of stock bought back during quarter for $59.66 per share. New capital return plan is for $1.4B of buybacks over next year, and dividend is hiked 12% to $0.38 per share.
- Assets under custody of $27.8T down 3% Y/Y. AUM of $2.3T down 3.1%.
- Previously: State Street beats by $0.20, beats on revenue (July 27)
- STT +6.6%
Wed, Jul. 27, 7:09 AM
Wed, Jul. 27, 2:54 AM
- State Street (NYSE:STT) has agreed to pay $382.4M for misleading mutual funds and other custody clients by applying hidden markups to forex trades.
- The settlement includes $167.4M in disgorgement and penalties to the SEC, a $155M penalty to the DOJ, and at least $60M to ERISA plan clients in an agreement with the DOL.
Tue, Jul. 26, 5:30 PM
- ANGI, ANTM, ARMH, AUO, AVX, BA, BAH, BOKF, CFR, CG, CMCSA, CRCM, CRI, DCIX, DHX, DPS, DX, DXYN, ENTG, ETM, EVR, FCAU, FCF, FDML, FLIR, FSV, GCI, GD, GIB, GIL, GLW, GRMN, GT, HES, HLT, HUN, I, IMS, IR, KO, LH, LL, LVLT, MDCO, MDLZ, MHO, MMYT, MO, NDAQ, NEE, NOC, NSC, NYCB, OC, PB, POL, Q, R, RES, ROK, ROL, RTIX, SALT, SEIC, SIX, SLAB, SLGN, SNAK, SO, SONS, SPG, STM, STRA, STT, SUP, SVU, TMUS, TPH, TYPE, UCBI, UFS, UMC, VLY, WCIC, WEC, WEX, WIX, WM, WOOF, WYN
Thu, Jul. 14, 2:43 PM
- Moving past the overseas macro, today's modest rally is being led by the financial sector (XLF +1%), particularly the banks (KRE +1.8%), (KBE +1.8%) after JPMorgan beat estimates.
- Also helping is another five basis points move upward in the 10-year Treasury yield to 1.53%. Among the yield-starved names applauding: Prudential (PRU +3.1%), Lincoln National (LNC +4.7%), E*Trade (ETFC +1.8%), Schwab (SCHW +1.9%), State Street (STT +2.5%), MetLife (MET +5.2%).
- The Dow is up 0.8%, the S&P 500 0.55%, and the Nasdaq 0.6%.
Fri, Jul. 1, 8:47 AM
- This week's decision by the Financial Stability Oversight Council to de-designate GE Capital as a SIFI could accelerate further erosion of General Electric's credit profile.
- "The decreased regulatory oversight now allows the company to reduce capital ratios at its finance subsidiary so that more cash can be returned to the parent, which GE plans to do," said Russell Solomon, SVP and lead analyst at Moody's.
- Separately, the company has announced the completion of GE Asset Management's sale to State Street (NYSE:STT).
Wed, Jun. 29, 5:29 PM| Wed, Jun. 29, 5:29 PM
Thu, Jun. 23, 4:51 PM
- Ally Financial (NYSE:ALLY): Actual end of 2015 CET1 ratio of 9.2%, Q1 2018 CET1 ratio under severely adverse scenario of 6.1%, minimum 6.1%.
- American Express (NYSE:AXP): Actual 12.4%, Q1 2018 12.3%, minimum 11.4%.
- Bank of America (NYSE:BAC): Actual 11.6%, Q1 2018 8.1%, minimum 8.1%.
- BNY Mellon (NYSE:BK): Actual 11.5%, Q1 2018 11.2%; minimum 10.5%.
- BB&T (NYSE:BBT): 10.3%, 6.9%, 6.9%
- BBVA Compass (NYSE:BBVA): 10.7%, 6.5%, 6.5%.
- BMO Financial (NYSE:BMO): 11.9%, 5.9%, 5.9%.
- Capital One (NYSE:COF): 11.1%, 8.2%, 8.2%.
- Citigroup (NYSE:C): 15.3%, 9.2%, 9.2%.
- Citizens Financial (NYSE:CFG): 11.7%, 8.8%, 8.8%.
- Comerica (NYSE:CMA): 10.5%, 8.3%, 8.3%.
- Discover (NYSE:DFS): 13.9%, 12.4%, 11.9%.
- Fifth Third (NASDAQ:FITB): 9.8%, 6.8%, 6.8%.
- Goldman Sachs (NYSE:GS): 13.6%, 10.2%, 8.4%.
- HSBC N.A. (NYSE:HSBC): 15.7%, 9.1%, 9.1%.
- Huntington Bancshares (NASDAQ:HBAN): 9.8%, 5%, 5%.
- JPMorgan (NYSE:JPM): 12%, 8.3%, 8.3%.
- KeyCorp (NYSE:KEY): 10.9%, 6.4%, 6.4%.
- M&T (NYSE:MTB): 11.1%, 6.9%, 6.9%.
- Morgan Stanley (NYSE:MS): 16.4%, 10%, 9.1%.
- Northern Trust (NASDAQ:NTRS): 10.8%, 9.6%, 9.6%.
- PNC Financial (NYSE:PNC): 10.6%, 7.6%, 7.6%.
- Regions (NYSE:RF): 10.9%, 7.3%, 7.3%.
- Santander Holdings (NYSE:SAN): 12%, 11.8%, 11.8%
- State Street (NYSE:STT): 13%, 9.6%, 9.6%
- SunTrust (NYSE:STI): 10%, 7.5%, 7.5%.
- TD Group (NYSE:TD): 13.1%, 8.4%, 8.4%.
- U.S. Bancorp (NYSE:USB): 9.6%, 7.5%, 7.5%.
- Wells Fargo (NYSE:WFC): 11.1%, 7.2%, 7.2%.
- Zions (NASDAQ:ZION): 12.2%, 6.6%, 6.6%.
- Previously: All 33 banks pass this year's stress tests (June 23)
Thu, Jun. 16, 12:23 PM
- Increasing costs and weaker capital markets activity are a bad combination, but they're coming should the U.K. vote to exit the EU, says KBW's Brian Kleinhanzl, expecting a two-year transition period with those headwinds.
- Longer-term, though, Brexit should be a wash for the U.S. universal banks.
- As for the shorter-term, banks would need to have presence in both the U.K. and EU - the transition should be a manageable expense, but the run-rate costs would remain.
- Kleinhanzl sees JPMorgan (NYSE:JPM) and Goldman Sachs (NYSE:GS) as most exposed to the fallout thanks to the relatively large amount of income each generates from U.K. units. Citigroup and the custodial banks - BNY Mellon (NYSE:BK), State Street (NYSE:STT), Northern Trust (NASDAQ:NTRS) - should be less impacted since operations in the U.K. are smaller relative to the overall companies.
Fri, Jun. 3, 9:47 AM
- At the moment, it's looking like "wait till next year," for the higher interest rates much of the yield-starved financial sector has been waiting for. This morning's disappointing jobs numbers has traders quickly reversing bets on a rate hike this summer.
- Meanwhile, the 10-year Treasury yield has crumbled to a two-month low of 1.70%.
- The XLF is down 1.9%, leading the S&P 500's 0.5% decline. The SPDR KBW Bank ETF (KBE -3.5%), the SPDR Regional Banking ETF (KRE -3.4%).
- Among the Too Big To Fail names, Bank of America (BAC -4.7%) and Citigroup (C -4.8%) are hardest hit. In regionals, Regions Financial (RF -4.4%), KeyCorp (KEY -4%), BB&T (BBT -3.3%), Fifth Third (FITB -4.4%).
- State Street (STT -3.5%), Northern Trust (NTRS -3.8%), Schwab (SCHW -5.4%), E*Trade (ETFC -5.8%), Ameritrade (AMTD -5.5%), MetLife (MET -3.6%), Prudential (PRU -3.2%), Lincoln Financial (LNC -4.1%)
- ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, FNCL, SEF, FXO, KBWB, QABA, KBWR, RYF, FINU, KRU, RWW, XLFS, FINZ, KRS, JHMF, WDRW, FAZZ, DPST, FNCF
Thu, Jun. 2, 11:24 AM
- In separate public comments today, Fed governors Daniel Tarullo and Jerome Powell said the Fed will require the eight largest U.S. banks to hold even more capital if they want to pass stress tests.
- The goal, says Powell, is to make capital requirements so difficult that the largest lenders have to honestly assess whether it would be a better idea to break themselves up.
- For now, the Fed is going to make 2015's capital surcharges permanent, which alone makes things tougher. "Really quite significant, probably the most significant additional potential capital requirement on the horizon." says former OCC Director John Dugan.
- The eight: Bank of America (BAC -0.1%), Citigroup (C -0.3%), JPMorgan (JPM -0.4%), Morgan Stanley (MS -0.7%), Wells Fargo (WFC -0.5%), State Street (STT -0.7%), Goldman Sachs (GS -0.7%), BNY Mellon (BK -0.5%)
Tue, May 24, 10:22 AM
- Stocks had already started the morning nicely in the green, but a blowout new home sales number for April has the homebuilders higher by about 2.5%, and the major indexes up by more than 1%.
- It's also got traders upping bets on a June rate hike, with another move to follow before year-end. That's boosting the yield-starved financials (XLF +1.5%), particularly the banks (KBE +2%).
- Among the financial movers: Bank of America (BAC +1.4%), JPMorgan (JPM +1.9%), Regions Financial (RF +1.8%), Fifth Third (FITB +2.1%), E*Trade (ETFC +2.9%), Interactive Brokers (IBKR +2.6%), MetLife (MET +1.8%), Prudential (PRU +2.2%), Lincoln National (LNC +1.8%), State Street (STT +2.1%)
Thu, May 19, 4:54 PM
Mon, May 16, 12:15 PM
- The bank is expected to pay more than $500M to end a number of investigations into allegations its overcharged clients on forex transactions, reports the WSJ, which says the settlement could be announced this summer.
- Among those probing are the DOJ, the SEC, and the bank's clients.
- State Street (NYSE:STT) earlier this month disclosed it had reserved $585M to settle all of the claims in this matter.
Mon, May 9, 10:00 AM
- The bank has been appointed by Allianz Global Investors GmbH and DekaBank Deutsche Girozentrale to provide a range of investment services for more than €500B in assets.
- As part of the deal, State Street (STT +0.8%) will provide fund accounting, fund adminstration data management, reporting, and fund year-end tax support services - duties previously taken care of in-house by DekaBank and Allianz. About 350 employees from the two will join State Street.
- Source: Press Release
State Street Corp. operates as a financial holding company. The company conducts its business primarily through State Street Bank. The company operates in two lines of business: Investment Servicing and Investment Management. The Investment Servicing line of business performs core custody and... More
Industry: Money Center Banks
Country: United States
Other News & PR