STATE STREET REPORTS FOURTH QUARTER 2021 EPS OF $1.78; $2.00 EXCLUDING NOTABLE ITEMS(a) |
% changes noted below reflect year-over-year 4Q comparisons |
TOTAL REVENUE UP 5%, WITH FEE REVENUE UP 4%
STRONG SERVICING AND MANAGEMENT FEE GROWTH OF 6% AND 8%
NEW SERVICING WINS OF $332 BILLION AND AUM INFLOWS OF $79 BILLION
EXPENSES UP 2%; UP 1% EX-NOTABLES(a)
POSITIVE TOTAL AND FEE OPERATING LEVERAGE OF 2% POINTS EACH
Ron O’Hanley, Chairman and Chief Executive Officer: “We finished 2021 with a strong fourth quarter performance, contributing to a record year for fee revenue. We continued to successfully execute against our strategic priorities, while also delivering strong year-over-year financial results and business momentum, including positive operating leverage, meaningful pre-tax margin expansion and robust earnings growth. Amid a favorable market environment, both the Investment Services and Global Advisors franchises generated exceptional performance thanks to the dedication of our employees who effectively implemented our strategy and delivered for our clients and shareholders.” O’Hanley added: “As we look ahead in 2022, we remain focused on revenue growth, expense discipline and successfully closing and integrating our previously announced acquisition of BBH Investor Services. We will continue to innovate for our clients, transform the way we work, and build an even higher performing organization in order to drive growth and create value for our shareholders.” |
FINANCIAL HIGHLIGHTS
(Table presents summary results, dollars in millions, except per share amounts, or where otherwise noted) | 4Q21 | 3Q21 | 4Q20 | % QoQ | % YoY | |||||
Income statement: | ||||||||||
Total fee revenue | $ | 2,511 | $ | 2,504 | $ | 2,416 | – | % | 4 | % |
Net interest income | 484 | 487 | 499 | (1) | (3) | |||||
Other income | 58 | (1) | 2 | nm | nm | |||||
Total revenue | 3,053 | 2,990 | 2,917 | 2 | 5 | |||||
Provision for credit losses | (7) | (2) | – | nm | nm | |||||
Total expenses | 2,330 | 2,116 | 2,276 | 10 | 2 | |||||
Net income | 697 | 714 | 537 | (2) | 30 | |||||
Financial ratios and other metrics: | ||||||||||
Diluted earnings per share (EPS) | $ | 1.78 | $ | 1.96 | $ | 1.39 | (9) | % | 28 | % |
Return on average common equity (ROE) | 10.3 | % | 11.6 | % | 8.4 | % | (130) | bps | 190 | bps |
Pre-tax margin | 23.9 | 29.3 | 22.0 | (540) | 190 | |||||
AUC/A ($ billions)(1) |
43,678 | 43,337 | 38,791 | 1 | % | 13 | % | |||
AUM ($ billions)(1) |
4,138 | 3,862 | 3,467 | 7 | 19 | |||||
(1) As of period-end.
(a) See “4Q21 Highlights” in this news release for a listing of notable items. Results excluding notable items and/or currency translation impact are non-GAAP measures. Please refer to the Addendum included with this news release for an explanation and reconciliation of non-GAAP measures.
Investor Contact: Ilene Fiszel Bieler +1 617-664-3477 Media Contact: Carolyn Cichon +1 617-664-8672
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4Q21HIGHLIGHTS
(all comparisons are to 4Q20, unless otherwise noted)
AUC/A and AUM
•Investment Servicing AUC/A as of quarter-end increased 13% to a record $43.7 trillion, primarily due to higher market levels, client flows and net new business growth
•Investment Management AUM as of quarter-end increased 19% to a record $4.1 trillion, mainly reflecting higher market levels and net inflows
New business and strategy execution
•Investment Servicing mandates announced in 4Q21 totaled $332 billion, with quarter-end servicing assets to be installed in future periods of $2.8 trillion
◦Record full-year 2021 AUC/A wins of $3.5 trillion across client segments and regions, with State Street AlphaSM representing a substantial proportion of wins
•Announced 1 Alpha client mandate and 3 Alpha client mandates went live in 4Q21
◦19 total Alpha client mandates signed since inception(a)
◦10 of 19 Alpha client mandates now live as of the end of 4Q21
•Charles River Development (CRD) achieved new bookings of $11 million and attained annual recurring revenue (ARR) of $244 million in 4Q21,(b) up 9%
•Investment Management business generated strong net inflows of $79 billion in 4Q21, reflecting record ETF inflows of $50 billion
◦Robust net inflows of $196 billion in full-year 2021, including record ETF inflows of $107 billion
Revenue
•Fee revenue increased 4%, primarily reflecting strong Servicing and Management fees, partially offset by lower FX trading services and Software and processing fees:
◦Servicing fees increased 6%
◦Management fees increased 8%
◦FX trading services decreased(7)%
◦Securities…
Read More: STATE STREET : REPORTS FOURTH QUARTER 2021 EPS OF $1.78; $2.00 EXCLUDING NOTABLE ITEMS(a)