State Street Corp. (NYSE:STT) shares rose Friday after the bank reported stronger-than-expected first-quarter results, driven by broad-based fee growth and higher net interest income.
Strong Q1 Earnings and Revenue Beat
The company posted adjusted earnings of $2.84 per share, topping analysts’ estimates of $2.63. Revenue increased 16% year over year to $3.796 billion, exceeding the Street’s expectation of $3.658 billion.
Fee revenue rose 15%, driven by broad-based strength across the franchise. Servicing fees increased 11%, and management fees jumped 23%, while foreign exchange trading surged 29%. Software services grew 7%, and securities finance revenue saw a modest 2% gain.
CEO Ron O’Hanley said, “We delivered record quarterly fee revenue, net interest income, and total revenue, generating meaningful year-over-year positive operating leverage and pretax margin expansion, excluding notable items. In a dynamic operating environment, …