More on State Street Q3: Revenue slips on client transitions, challenging conditions

|About: State Street Corporation (STT)|By:, SA News Editor

State Street (NYSE:STT) Q3 net income of $709M, or $1.87, rises from $698M in Q2, or $1.88, in Q2 and $629M, or $1.66, a year ago; Q3 EPS falls short of $1.89 consensus estimate.

STT -2.1% in premarket trading.

Q3 total revenue of $2.95B falls 3.7% from Q2, rises 2.9% from a year ago; misses consensus of $3.02B; servicing fees fell 1.3% Y/Y mostly due to previously announced client transitions and challenging industry conditions.

Sees Beacon program 2018 net savings about $200M, exceeding initial guidance of $150M; realized $65M of savings in Q3.

Q3 net interest income of $672M rose 2.0% from Q2 and 11% Y/Y.

Q3 net interest margin of 1.48% vs. 1.46% in Q2 and 1.35% a year ago.

Q3 assets under custody and administration $34.0T, up 0.2% from $33.9T in Q2 and up 5.9% from $32.1T a year ago.

Q3 assets under management of $2.81T rose 3.2% from Q2's $2.72T and 5.1% from $2.67T in Q3 2017.

    Long-term institutional net flows were $29B inflows in equity, $11B outflows in fixed income; $1B outflows in multi-asset class solutions, and $2B outflows in alternative investments.

    Market appreciation was $85B in equity, negative $4B in fixed income; $3B in cash, $2B in multi-asset class solutions; and nil in alternative investments.

Q3 return on average common equity 14.0% vs. 14.7% in Q2 and 13.0% in Q3 2017.

Previously: State Street misses by $0.02, misses on revenue (Oct. 19)

Subscribe for full text news in your inbox