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State Street Corporation (STT) Reports Q2 Earnings: What Key Metrics Have to Say

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State Street Corporation (STT - Free Report) reported $3.11 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 5.3%. EPS of $2.17 for the same period compares to $1.94 a year ago.

The reported revenue represents a surprise of -0.59% over the Zacks Consensus Estimate of $3.13 billion. With the consensus EPS estimate being $2.08, the EPS surprise was +4.33%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how State Street Corporation performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net interest margin - FTE basis: 1.19% compared to the 1.21% average estimate based on five analysts.
  • Average balance - Total interest-earning assets: $231.99 billion versus $231.49 billion estimated by four analysts on average.
  • Tier 1 Leverage Ratio: 5.8% versus the four-analyst average estimate of 5.71%.
  • Assets under Management (AUM): $3797 billion versus $3582.2 billion estimated by three analysts on average.
  • Tier 1 Risk-based Capital Ratio (Standard): 13.6% versus the three-analyst average estimate of 13.88%.
  • Assets under Custody and/or Administration (AUC/A): $39589 billion versus the three-analyst average estimate of $35021.5 billion.
  • Total Risk-based Capital Ratio (Standard): 14.9% versus the two-analyst average estimate of 15.14%.
  • Total fee revenue: $2.42 billion compared to the $2.43 billion average estimate based on five analysts.
  • Net Interest Income: $691 million compared to the $696.69 million average estimate based on five analysts.
  • Net Interest Income - fully taxable-equivalent basis: $691 million versus the five-analyst average estimate of $698.75 million.
  • Other fee revenue: $58 million compared to the $60.37 million average estimate based on four analysts.
  • Management fees: $461 million versus the four-analyst average estimate of $463.10 million.
View all Key Company Metrics for State Street Corporation here>>>

Shares of State Street Corporation have returned +3.8% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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