State Street Corporation (NYSE:STT) reported stronger-than-expected third-quarter 2025 results on Thursday, driven by broad-based growth in fee income across its core business lines. Despite the solid numbers, the stock slipped about 2.7% after the announcement.
The Boston-based custody bank and asset manager posted adjusted earnings per share of $2.78, topping analyst expectations of $2.63 by $0.15. Total revenue rose 9% year over year to $3.55 billion, exceeding the $3.46 billion consensus estimate. It was the firm’s seventh straight quarter of positive operating leverage.
Fee income rose 8% from a year earlier to $2.83 billion, supported by gains in several segments. Management fees jumped 16% to $612 million, servicing fees increased 7.2% to $1.36 billion on the back of higher market levels and new mandates, foreign exchange trading services climbed 11.2% to $416 million, and securities finance surged 19% to $138 million.
“Our third-quarter financial results reflect strong performance, driven by disciplined execution against our strategic priorities,” said Ron O’Hanley, Chairman and CEO. “We delivered 9% year-over-year total revenue growth, supported by broad-based fee revenue increases across the franchise.”
Assets under custody and/or administration (AUC/A) reached a record $51.7 trillion, up 10% from the prior year, while assets under management (AUM) rose 15% to an all-time high of $5.4 trillion. Both metrics benefited from market gains and continued inflows.
Net interest income edged down 1.1% to $715 million compared to the same quarter last year. The decline was attributed to lower average short-term rates and shifts in deposit mix, partly offset by repricing of the securities portfolio and loan growth.
During the quarter, State Street returned $637 million to shareholders through $400 million in buybacks and $237 million in dividends. The company recently increased its quarterly dividend by 11% to $0.84 per share.
State Street Corporation stock price
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