State Street Corp (NYSE:STT) stock rose 1.67% (As on July 16, 11:23:39 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the second quarter of FY25. NII was $735 million, down marginally year over year. The fall was due to lower average short-end rates and a deposit mix shift, partially offset by securities portfolio repricing and loan growth. Net interest margin (NIM) contracted 17 basis points year over year to 0.96%. Total fee revenues increased 6.8% year over year to $2.72 billion. The growth was driven by an increase in almost all the components except lending-related and other fees. Non-interest expenses were $2.53 billion, up 11.5% from the prior-year quarter. Provision for credit losses was $30 million, up significantly from $10 million in the prior year quarter. The Common Equity Tier 1 ratio was 10.7% as of June 30, 2025, compared with 11.2% in the corresponding period of 2024. The return on average common equity was 10.8% compared with 11.9% in the year-ago quarter.

Moreover, as of June 30, 2025, the total AUC/A was $49 trillion, up 10.6% year over year. The rise was driven by higher quarter-end equity market levels, client flows and the impact of currency translation. AUM was $5.12 trillion, up 17.1% year over year, primarily led by higher quarter-end market levels and net inflows. Investment Management AUM as of quarter-end increased 17% to $5.1 trillion, mainly driven by higher quarter-end market levels and net inflows. Investment Servicing AUC/A as of quarter-end increased 11% to $49.0 trillion, mainly due to higher quarter-end market levels, flows, and the impact of currency translation. Total expenses increased 11%, primarily driven by $100 million workforce rationalization and $18 million Alpha-related client rescoping notable items, as well as higher performance-based incentive compensation.

STT in the second quarter of FY25 has reported the adjusted earnings per share of $2.53, beating the analysts’ estimates for the adjusted earnings per share of $2.36, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 8.1 percent to $3.45 billion in the second quarter of FY25, beating the analysts’ estimates for revenue of $3.38 billion.

Additionally, the company returned a total of $517 million of capital to common shareholders, including $300 million of share repurchases and $217 million (or $0.76 per share) of declared dividends. In July 2025, State Street announced a planned 11% increase to its quarterly common stock dividend to $0.84 per share in 3Q25, subject to approval by the Board of Directors.