State Street Corporation (NYSE:STT) has delivered fourth-quarter revenue and earnings that beat expectations as it recorded net inflows of $103 billion, sending its shares higher in Friday premarket trading.
The financial services firm reported a total revenue of $3.04 billion for the quarter ended December 31, 2023. While that was down from $3.15 billion a year earlier due to a decline in net interest income, it beat the $2.95 billion pencilled in by Wall Street analysts.
Diluted earnings per share fell 71%, impacted by Adjusted EPS of $2.04 beat the $1.81 consensus forecast of analysts polled by Zacks Investment Research.
Apart from the $103 million of new servicing fee revenue wins, the company highlighted new servicing AUC/A (assets under custody and/or administration) of $501 billion, with the majority from asset managers and alternatives segments.
"In the fourth quarter, we generated strong new servicing fee revenue wins, with notable sales performance in both Back office custody and our strategically important Private Markets business,” chairman and CEO Ron O’Hanley commented in a statement.
“Our front-to- back Alpha proposition continued to resonate with clients, as demonstrated by four new Alpha mandates in the quarter. In addition, in Global Advisors, we achieved our strongest quarter of total net inflows on record, with particular strength in both our ETFs and Cash franchises."
Ahead of the opening bell, the company’s shares were up 4.35 at $77.50.