State Street Tops EPS, Misses Revenue — CEO Cites Resilience Despite Global Uncertainty

State Street Corporation 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.

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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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