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State Street Corporation STT Stock Quote

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Morningstar‘s Stock Analysis STT

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Is it the right time to buy or sell?

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INVESTOR

5-Star Price

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Economic Moat

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Capital Allocation

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State Street Should Benefit From Rising Interest Rates

Michael Wong, CFA, CPA Sector Director

Business Strategy and Outlook

| Rajiv Bhatia, CFA |

State Street provides a range of asset servicing and ancillary servicing, including maintaining custody of assets, fund administration, record-keeping, securities lending, foreign-exchange trading services, and data services to institutional asset owners and asset managers. Although State Street is a market leader, its asset manager and asset owner clients are sophisticated on the pricing of its custody and ancillary services. In addition, as asset managers consolidate and face industrywide fee pressure, they are increasingly seeking operating expense savings. State Street saw pricing compression of 4% in 2018 and 2019, though it did appear to moderate to about 2.5% in 2020. In addition, low interest rates continue to pressure net interest income, but this is showing signs of moderating. Following its announced acquisition of Brown Brothers Harriman, which is expected to close in the third quarter of 2022, State Street will be the largest custodian by assets under custody. Given pressures in the industry, we expect management to continue to focus on managing expenses.

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Key Statistics STT

Company Profile STT

Business Description

State Street is a leading provider of financial services, including investment servicing, investment management, and investment research and trading. With approximately $43.7 trillion in assets under custody and administration and $4.1 trillion assets under management as of Dec. 31, 2021, State Street operates globally in more than 100 geographic markets and employs more than 38,000 worldwide.

Contact
One Lincoln Street
Boston, MA, 02111
T +1 617 786-3000
Industry Asset Management
Most Recent Earnings Jun 30, 2022
Fiscal Year End Dec 31, 2022
Employees 40,354

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