State Street Q3 Earnings: AUM Soars To $4.7T, Announces CFO Eric Aboaf's Departure In 2025

State Street Corporation STT reported strong third-quarter results, with earnings per share exceeding analyst expectations.

Quarterly earnings per share of $2.26 beat the analyst consensus estimate of $2.12. Quarterly sales of $3.26 billion outpaced the street view of $3.19 billion.

Total revenue rose by 21%, largely due to the impact of a notable item from the previous year. Excluding notable items, total revenue increased by 9%.

Fee revenue increased 11%, while NII increased 16%. Investment Management AUM as of quarter-end increased 29% to $4.7 trillion, reflecting higher quarter-end market levels and solid quarterly net inflows.

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“Within Investment Services, we generated $466 billion of new AUC/A wins and reported two new Alpha mandates,” said Ron O’Hanley, Chairman and Chief Executive Officer.

The CEO added that the Global Markets franchise experienced increased client penetration, and Global Advisors achieved quarterly net inflows of $100 billion, bolstered by a strong performance in the Cash business.

The standardized common equity tier 1 (CET1) ratio at the end of the third quarter of 2024 was 11.6%, an increase of 0.6 percentage points from the previous quarter and 0.4 percentage points from the second quarter of 2024.

This growth was primarily driven by earnings-generated capital and improved accumulated other comprehensive income (AOCI), partially offset by ongoing capital returns and higher risk-weighted assets (RWA).

CFO To Step Down: The firm announced that Eric Aboaf, Vice Chairman and Chief Financial Officer (CFO), has decided to leave State Street in February 2025.

State Street has initiated its succession plan with both internal and external search processes.

Aboaf, however, will remain with the company and collaborate closely with the team until February to ensure a smooth transition.

Price Action: STT shares are trading higher by 1.45% to $92.25 premarket at last check Tuesday.

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