State Street delivered a solid start to 2024 in QQ1, posting USD 3.138 billion in revenue and USD 463 million net income (GAAP) with EPS of USD 1.38. Management highlighted positive fee and total operating leverage year-over-year, supported by growth in fee revenue across key franchises and disciplined cost management. AUC/A reached a record USD 43.9 trillion, underscoring continued client inflows and market levels. Notable franchise momentum includes Alpha wins (including a second Private Markets Alpha) and record ETF AUM of USD 1.4 trillion, signaling the potential for sustained fee growth as the firm expands its Alpha, private markets, and back-office capabilities.
Management reaffirmed a constructive, albeit variable, 2024 outlook. The firm raised its full-year guidance modestly: total fee revenue to the high end of a 4% year-over-year gain, and NII now expected to be down about 5% for the year (better than prior guidance of around 10%–11% decline). The company reiterated a target to return roughly 100% of earnings to shareholders in 2024 via dividends and buybacks, subject to market conditions. The QQ1 results also reflect ongoing operating model transformation (notably India JV consolidations) as a catalyst for productivity savings, with the near-term headwinds from a client transition and asset-mix shifts expected to abate over time. Overall, State Street presents a constructive growth story around fee-based franchises, disciplined expense management, and a capital-light growth trajectory that could drive earnings power if deposit dynamics remain favorable and Alpha/Private Markets execution accelerates.