State Street Aktie
State Street-Aktie
WKN: 864777
ISIN: US8574771031
Land: USA
Branche: Finanzen
Sektor: Banken
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State Street Reports Third-quarter 2019 EPS of $1.42 Per Share; $1.51 Per Share Excluding Notable Items(a)

Freitag, 18.10.19 13:30
Tafel mit Kursen
Bildquelle: fotolia.com

BOSTON –

Ron O'Hanley, President and Chief Executive Officer : "We are encouraged by the continued stabilization in servicing fees seen in the third quarter and believe the actions we've taken to date, including the upgrade of our client coverage program, improved client service results, and strengthened pricing discipline are having an impact. Despite an uncertain revenue environment, we saw sequential fee revenue growth in FX trading services in our Global Markets business and strong NII. Our strong performance under the 2019 CCAR stress test allowed us to increase our quarterly dividend by 11% from 2Q19 and boost our total capital return to shareholders. While our pre-tax margin and return on equity fell short of medium-term targets, we remain committed to our 2019 expense program and the expected realization of $400 million in savings by year end and are laser-focused on improving our financial performance by implementing additional ways to reignite revenue growth and generate additional expense reductions going forward."

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20191018005203/en/

FINANCIAL HIGHLIGHTS

(Table presents summary results, $ millions, except per share amounts, or where otherwise noted)

3Q19

2Q19

3Q18

 

% QoQ

 

% YoY

 

Income Statement:

 

 

 

 

 

 

 

 

Total fee revenue

$

2,259

 

$

2,260

 

$

2,318

 

 

%

 

(2.5

)%

 

Net interest income

644

 

613

 

672

 

 

5.1

 

 

(4.2

)

 

Total revenue

2,903

 

2,873

 

2,989

 

 

1.0

 

 

(2.9

)

 

Total expenses

2,180

 

2,154

 

2,091

 

 

1.2

 

 

4.3

 

 

Net income

583

 

587

 

764

 

 

(0.7

)

 

(23.7

)

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

Diluted earnings per share

$

1.42

 

$

1.42

 

$

1.87

 

 

%

 

(24.1

)%

 

 

 

 

 

 

 

 

 

 

Financial ratios and other metrics:

 

 

 

 

 

 

 

 

Return on average common equity

9.7

%

10.1

%

14.0

%

 

(40

)

bps

(430

)

bps

Pre-tax margin

24.8

 

25.0

 

29.9

 

 

(20

)

 

(510

)

 

Average total assets ($ billions)

$

223

 

$

222

 

$

221

 

 

0.8

%

 

0.9

%

 

Average total deposits ($ billions)

157

 

157

 

160

 

 

0.4

 

 

(1.5

)

 

AUC/A ($ billions)

32,899

 

32,754

 

33,996

 

 

0.4

 

 

(3.2

)

 

AUM ($ billions)

2,953

 

2,918

 

2,810

 

 

1.2

 

 

5.1

 

 

 

 

 

 

 

 

 

 

 

(a) See 3Q19 Highlights in this News Release for a listing of notable items. Results excluding notable items are a non-GAAP presentation. Please refer to the Addendum included with this News Release for an explanation and reconciliation of non-GAAP measures.

3Q19 HIGHLIGHTS
(all comparisons are to 3Q18, unless otherwise noted)

AUC/A and AUM

• Investment Servicing AUC/A as of quarter-end decreased 3% primarily due to a previously announced client transition, partially offset by higher end of period fixed income market levels.

• Investment Management AUM as of quarter-end increased 5% due to higher end of period market levels and net inflows of $59 billion, driven by institutional, cash and ETF inflows.

New Business

• Investment Servicing mandates announced in 3Q19 totaled $1.0 trillion with quarter-end servicing assets remaining to be installed in future periods of $1.2 trillion.

• Investment Management net inflows in 3Q19 of $13 billion driven by cash and ETF inflows.

Revenues

• Fee revenue decreased 3% reflecting lower servicing and management revenues, partially offset by CRD:

◦ Compared to 2Q19, fee revenue was flat reflecting higher servicing fees up 2%, management fees up 1%, and foreign exchange trading services revenues up 4%, offset by lower processing fees and seasonally lower securities finance revenue.

◦ On a standalone basis, CRD generated $85 million in 3Q19 fee revenues(b).

• Net interest income (NII) decreased 4% primarily due to lower long-end rates and MBS premium amortization, as well as mix shift away from non-interest bearing deposits.

• Compared to 2Q19, NII increased 5% primarily driven by episodic market-related benefits, higher client repo activity, and active deposit management, partially offset by lower long-end rates.

Notable Items

(Dollars in millions, except EPS amounts)

3Q19

2Q19

3Q18

Acquisition and restructuring costs (net)

$

27

 

$

12

 

$

 

Legal and related costs

18

 

 

 

Total notable items (pre-tax)

$

45

 

$

12

 

$

 

 

 

 

 

EPS impact

$

(0.09

)

$

(0.03

)

$

 

 

 

 

 

(b) See In This News Release for an explanation and reconciliation of CRD standalone and consolidated revenues and expenses.

Expenses

• Total expenses were up 4%, primarily reflecting the impact of CRD expenses and 3Q19 notable items:

◦ Excluding CRD expenses and notable items, total expenses were down 1% compared to 3Q18.

◦ Expense savings program announced in January 2019 achieved $275 million total savings year-to-date through resource discipline, process re-engineering and automation benefits.

◦ Savings from expense programs exceeded business investments in technology infrastructure.

• Total headcount increased 1%, driven by the impact of CRD, or down 2% excluding CRD, compared to 3Q18, primarily driven by productivity savings.

◦ 3Q19 saw the third sequential decline in total headcount, while strengthening client service through quality initiatives and automation.

◦ Year-to-date higher-cost location headcount reductions totaled over 2,700, exceeding the original target of 1,500 for FY 2019.

Capital

• Returned approximately $690 million(c) to shareholders in 3Q19, consisting of $500 million in common share repurchases and approximately $190 million in common share dividends.

◦ Declared 3Q19 quarterly common share dividend of $0.52 per share, an increase of 11% from the 2Q19 dividend.

• Estimated standardized Common Equity Tier 1 (CET1) of 11.3%, Tier 1 Leverage ratio of 7.4% and Supplementary Leverage Ratio (SLR) of 6.6% at quarter-end.

(c) Based on a capital return of $690 million and net income available to common shareholders for the quarter ended September 30, 2019, of $528 million, our total payout ratio was 131%.

MARKET DATA, AUC/A AND AUM

The tables below provide a summary of selected financial information, market indices and foreign exchange rates for the periods indicated as well as industry flow data for the indicated time periods.

(Dollars in billions, except market indices and foreign exchange rates)

3Q19

 

2Q19

 

3Q18

 

% QoQ

 

% YoY

 

 

 

 

 

 

 

 

 

 

Assets under Custody and/or Administration (AUC/A)(1) (2)

$

32,899

 

 

$

32,754

 

 

$

33,996

 

 

0.4

%

 

(3.2

)%

Assets under Management (AUM)(2)

2,953

 

 

2,918

 

 

$

2,810

 

 

1.2

 

 

5.1

 

 

 

 

 

 

 

 

 

 

 

Market Indices:(3)

 

 

 

 

 

 

 

 

 

S&P 500 daily average

2,958

 

 

2,882

 

 

2,850

 

 

2.6

 

 

3.8

 

S&P 500 EOP

2,977

 

 

2,942

 

 

2,914

 

 

1.2

 

 

2.2

 

MSCI EAFE daily average

1,882

 

 

1,888

 

 

1,964

 

 

(0.3

)

 

(4.2

)

MSCI EAFE EOP

1,889

 

 

1,922

 

 

1,974

 

 

(1.7

)

 

(4.3

)

MSCI Emerging Markets daily average

1,014

 

 

1,045

 

 

1,054

 

 

(3.0

)

 

(3.8

)

MSCI Emerging Markets EOP

1,001

 

 

1,055

 

 

1,048

 

 

(5.1

)

 

(4.5

)

Barclays Capital Global Aggregate Bond Index EOP

509

 

 

506

 

 

473

 

 

0.6

 

 

7.6

 

Foreign Exchange Volatility Indices:(3)

 

 

 

 

 

 

 

 

 

JPM G7 Volatility Index daily average

6.9

 

 

6.1

 

 

7.5

 

 

13.1

 

 

(8.0

)

JPM Emerging Market Volatility Index daily average

8.1

 

 

8.4

 

 

11.2

 

 

(3.6

)

 

(27.7

)

 

 

 

 

 

 

 

 

 

 

Average Foreign Exchange Rate:

 

 

 

 

 

 

 

 

 

Euro vs. USD

1.112

 

 

1.123

 

 

1.163

 

 

(1.0

)

 

(4.4

)

GBP vs. USD

Quelle: Business Wire



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