Analyst Note| Rajiv Bhatia |
Wide-moat State Street reported strong second-quarter financial results, but the low interest rate environment continues to weigh on net interest income. Total revenue for the quarter was $2.9 billion, up 2%. Fee revenue was up 5% while net interest income decreased 9% from the year-ago period. Though we are tweaking our model, we are maintaining our fair value estimate of $60 as favorability to fee revenue and expenses are offset by lower net interest income.