Rising Interest Rates Help State Street Offset Market Headwinds; BBH Still in Limbo

Wide-moat State Street reported decent second-quarter financial results, with revenue of $3.03 billion and adjusted earnings per share of $1.97 edging out the FactSet consensus of $2.99 billion and $1.81, respectively. Rising interest rates are benefiting net interest income, which management now expects to grow 24%-27% in 2022, up from the previous outlook of 18%-20%. That said, declining market levels will weigh on the firm’s servicing fees and investment-management fees. We will maintain our fair value estimate of $92 per share.