State Street Tops EPS, Misses Revenue — CEO Cites Resilience Despite Global Uncertainty
State Street Corporation (NYSE:STT) shares are trading lower on Thursday after the company reported its first quarter results.
The company reported quarterly earnings per share of $2.04, beating the analyst consensus estimate of $1.99.
Quarterly sales of $3.28 billion (+4.7% year over year) missed the street view of $3.32 billion.
“Through broad-based year-over-year fee revenue growth and continued expense discipline, we achieved positive fee and total operating leverage alongside healthy pre-tax margin expansion, all while continuing to return capital to our shareholders,” said State Street CEO Ron O’Hanley.
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Net interest income remained broadly flat year over year to $714 million, as higher investment security yields and continued loan growth were offset by lower average short-end rates and a deposit mix shift.
Provision for credit losses fell year-over-year to $12 million from $27 million in the year-ago period.
In the quarter under review, State Street returned a total of $320 million of capital to common shareholders, including $100 million of common share repurchases and $220 million (or 76 cents per share) of declared dividends.
Common equity tier 1 ratio at the end of first quarter was 11%, compared with 11.1% a year ago.
O'Hanley noted that investors and the global economy face heightened uncertainty driven by geopolitical tensions and shifting government policies on trade, deficits, taxation, and deregulation.
“State Street has a long-standing history of resilience and adaptability, which has seen us through many challenging operating environments and has equipped us to effectively support our clients,” he added.
Price Action: STT shares are trading lower by 1.81% to $78.19 at last check Thursday.
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