**State Street Reports Strong Q3 2025 Performance Driven by Fee Growth and Record Assets**

State Street Corporation (NYSE: STT) posted impressive financial results for Q3 2025, highlighted by a 23% surge in earnings per share (EPS) to $2.78 compared to the same period last year. Despite a slight 1.40% dip in its stock price to $111.37 by the end of the trading day, the firm demonstrated robust growth across its key business areas.

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### Fee Growth Propels Revenue Amid Net Interest Income Decline

The quarter saw total revenues climb 8.8% year over year to $3.55 billion, primarily fueled by an 8.1% increase in fee revenues, which reached $2.83 billion. Growth was broad-based across nearly all fee categories, driven especially by servicing and management fees. Lending-related fees, however, remained subdued.

Net interest income (NII) declined marginally by 1.1% to $715 million due to lower short-end interest rates and changes in the deposit mix. Despite loan growth providing some offset, the net interest margin fell to 0.96%, reflecting ongoing pressure from the interest rate environment. Nonetheless, the firm’s diversified revenue streams anchored solid overall performance.

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### Credit Provisions Drop Sharply, Boosting Profitability

State Street benefited from a substantial decline in provisions for credit losses, which plummeted 65.4% year over year to just $9 million. This improvement underscores strengthening credit conditions and disciplined risk management.

As a result, net income available to common shareholders rose to $802 million, with return on average common equity climbing to 13.4% from 12% a year earlier. This enhancement signals improved profitability and efficient capital deployment. The company’s Common Equity Tier 1 (CET1) ratio experienced a slight decrease to 11.3% from 11.6%, reflecting ongoing capital management efforts.

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### Expense Growth Managed Amid Margin Pressures

Non-interest expenses increased 5.5% to $2.43 billion, driven by higher spending in most categories. The only exception was amortization of intangible assets, which declined during the quarter. Despite expense growth, the increase remains controlled relative to revenue gains, and management continues to focus on navigating margin and cost challenges effectively.

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### Record Assets Under Custody and Management Reflect Market Strength

State Street reported record assets under custody and administration (AUC/A) totaling $51.66 trillion, marking a 10.5% increase year over year. This growth was supported by favorable market conditions and positive client flows at quarter-end, underscoring the company’s dominant global position.

Assets under management (AUM) surged 15.1% to $5.45 trillion, fueled by market appreciation and net inflows. These impressive gains highlight continued strong client demand and success in winning new mandates.

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### Outlook

The strong quarter emphasizes State Street’s resilience and ability to expand core revenue streams amid shifting interest rate environments. With its extensive scale and focus on servicing institutional clients, the company remains well positioned to capitalize on sustained equity market strength and deliver stable, long-term results.

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**In summary, State Street’s Q3 2025 performance showcases robust fee-driven growth, effective credit risk management, and record-breaking asset levels, cementing its leadership in the global financial services sector.**
https://coincentral.com/state-street-corporation-stt-stock-aum-soars-15-as-fee-revenues-climb-8-and-provisions-drop/