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State Street Corporation STT

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Morningstar’s Analysis

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1-Star Price

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5-Star Price

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Economic Moat

PREMIUM

Stewardship

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State Street: Strong Quarter, Fee Revenue Outlook Improves, but Interest Income Headwinds Persist

Rajiv Bhatia Equity Analyst

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.

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Company Profile

Business Description

State Street is a leading provider of financial services, including investment servicing, investment management, and investment research and trading. With approximately $34 trillion in assets under custody and administration and $3.1 trillion assets under management as of June 30, 2020, State Street operates globally in more than 100 geographic markets and employs more than 40,000 worldwide.

Contact
One Lincoln Street
Boston, MA, 02111
T +1 617 786-3000
Sector Financial Services
Industry Asset Management
Most Recent Earnings Jun 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type High Yield
Employees 39,068

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