State Street Sees 7% Quarterly Increase in Total Revenue for Q4 2022

Revenue

• The total revenue for Q4 2022 came in at $3,155 million, increasing 7% from $2,959 million in Q3 2022 and increasing 3% from $3,053 million in Q4 2021.
  

• Fee revenue decreased 6%, largely reflecting lower average market levels, as well as the impact of currency translation, partially offset by higher FX trading services and Front office software and data revenue.

• Servicing fees decreased 13% and 1% compared to 4Q21 4Q21 and 3Q22.

• Management fees decreased 14% and 3% compared to 4Q21 and 3Q22.

• FX trading services increased 22% and 15%  compared to 4Q21 and 3Q22.

• Securities finance increased 1% compared to 4Q21 and decreased 6% compared to 3Q22.

• Software and processing fees increased 16% and 17% compared to 4Q21 and 3Q22, respectively.

• Net interest income (NII) increased 63%, reflecting rising global interest rates across the yield curve and a well-constructed balance sheet.

Assets under Custody and/or Administration (AUC/A) and Assets under Management (AUM)

• Investment Servicing AUC/A as of quarter-end decreased 16% to $36.7 trillion, primarily driven by lower quarter-end market levels, a previously disclosed client transition and the impact of currency translation, partially offset by new business installations.

• Investment Management AUM as of quarter-end decreased 16% to $3.5 trillion, mainly reflecting lower quarter-end market levels, institutional net outflows and the impact of currency translation, partially offset by ETF net inflows.

Expenses

• Total expenses decreased 3%, primarily due to continued productivity savings, footprint optimization, a decrease in notable expense items and the benefit from currency translation, partially offset by continued business investments and higher wages.

• Total expenses were flat excluding notable items.