State Street Corp (NYSE:STT) stock rose 0.95% (As on October 16, 11:22:20 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the third quarter of FY 24. Investment Servicing AUC/A as of quarter-end increased 17% to $46.8 trillion, primarily driven by higher quarter-end market levels, net new business and client flows. Investment Management AUM as of quarter-end increased 29% to $4.7 trillion, reflecting higher quarter-end market levels and record quarterly net inflows in 3Q24. Fee revenue increased 11%, primarily reflecting higher Other fee revenue, FX trading services revenue, Management fees and Servicing fees. During the quarter, Servicing fees increased 3%, Management fees increased 10%, FX trading services increased 19%, Securities finance increased 13%, Software and processing fees increased 11% and Other fee revenue increased $81 million, primarily driven by the gain on sale of an equity investment. NII increased 16%, primarily reflecting higher investment securities yields and loan growth, partially offset by deposit mix shift. Total expenses increased 6% as higher business investments as well as revenue and performance related costs were partially offset by productivity savings from ongoing organizational process improvements and initiatives, including from the joint venture consolidations in India.

STT in the third quarter of FY 24 has reported the adjusted earnings per share of $2.26, beating the analysts’ estimates for the adjusted earnings per share of $2.08, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 21 percent to $3.34 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue by 5.04%. This is due to both higher Fee revenue and Net interest income (NII).

Additionally, Standardized common equity tier 1 (CET1) ratio at quarter-end of 11.6% increased 0.6% points compared to 3Q23, and increased 0.4% points compared to 2Q24, both primarily due to capital generated from earnings and improved accumulated other comprehensive income (AOCI), partially offset by continued capital return and higher risk-weighted assets (RWA). Liquidity coverage ratio (LCR) for State Street Corporation was approximately 107%, and LCR for State Street Bank and Trust was approximately 129%. In 3Q24, State Street returned a total of $674 million of capital to common shareholders, or approximately 100% of net income available to common shareholders, consisting of $450 million of share repurchases and $224 million (or $0.76 per share) of declared dividends.