STATE STREET CORP
10-Ks and 10-Qs
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form
10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
For the quarterly period ended
September 30, 2025
OR
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
For the transition period from to
Commission File No.
001-07511
(Exact name of Registrant as Specified in its Charter)
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| Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||||||||||||||
| Title of Each Class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||||||||||||||
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Depositary Shares, each representing a 1/4,000th ownership interest in a share of
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.
Yes
☒
No
☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes
☒
No
☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act.
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☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company |
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| Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
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The number of shares of the registrant’s common stock outstanding as of October 28, 2025 was
279,312,436
.
STATE STREET CORPORATION
QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTERLY PERIOD ENDED
September 30, 2025
TABLE OF CONTENTS
| Page | ||||||||
| PART I | FINANCIAL INFORMATION | |||||||
| Management's Discussion and Analysis of Financial Condition and Results of Operations | ||||||||
| General | ||||||||
| Overview of Financial Results | ||||||||
| Consolidated Results of Operations | ||||||||
| Total Revenue | ||||||||
| Net Interest Income | ||||||||
| Provision for Credit Losses | ||||||||
| Expenses | ||||||||
| Repositioning Charges | ||||||||
| Income Tax Expense | ||||||||
| Line of Business Information | ||||||||
| Investment Servicing | ||||||||
| Investment Management | ||||||||
| Financial Condition | ||||||||
| Investment Securities | ||||||||
| Loans | ||||||||
| Risk Management | ||||||||
| Credit and Counterparty Risk Management | ||||||||
| Liquidity Risk Management | ||||||||
| Operational Risk Management | ||||||||
| Information Technology Risk Management | ||||||||
| Market Risk Management | ||||||||
| Model Risk Management | ||||||||
| Strategic Risk Management | ||||||||
| Capital | ||||||||
| Off-Balance Sheet Arrangements | ||||||||
| Recent Accounting Developments | ||||||||
| Quantitative and Qualitative Disclosures About Market Risk | ||||||||
| Controls and Procedures | ||||||||
| Consolidated Financial Statements | ||||||||
| Consolidated Statement of Income (unaudited) | ||||||||
| Consolidated Statement of Comprehensive Income (unaudited) | ||||||||
| Consolidated Statement of Condition | ||||||||
| Consolidated Statement of Changes in Shareholders' Equity (unaudited) | ||||||||
| Consolidated Statement of Cash Flows (unaudited) | ||||||||
| Note 1. Summary of Significant Accounting Policies | ||||||||
| Note 2. Fair Value | ||||||||
| Note 3. Investment Securities | ||||||||
| Note 4. Loans and Allowance for Credit Losses | ||||||||
| Note 5. Goodwill and Other Intangible Assets | ||||||||
| Note 6. Other Assets | ||||||||
| Note 7. Derivative Financial Instruments | ||||||||
State Street Corporation | 2
| Note 8. Offsetting Arrangements | ||||||||
| Note 9. Commitments and Guarantees | ||||||||
| Note 10. Contingencies | ||||||||
| Note 11. Variable Interest Entities | ||||||||
| Note 12. Shareholders' Equity | ||||||||
| Note 13. Regulatory Capital | ||||||||
| Note 14. Net Interest Income | ||||||||
| Note 15. Expenses | ||||||||
| Note 16. Earnings Per Common Share | ||||||||
| Note 17. Line of Business Information | ||||||||
| Note 18. Revenue from Contracts with Customers | ||||||||
| Note 19. Non-U.S. Activities | ||||||||
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Note 20. Subsequent Events
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| Review Report of Independent Registered Public Accounting Firm | ||||||||
| PART II | OTHER INFORMATION | |||||||
| Item 2 | Unregistered Sales of Equity Securities and Use of Proceeds | |||||||
| Item 5 | Other Information | |||||||
| Item 6 | Exhibits | |||||||
| Signatures | ||||||||
We use acronyms and other defined terms for certain business terms and abbreviations, as defined in the acronyms list and glossary following the consolidated financial statements in this Form 10-Q.
State Street Corporation | 3
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
PART I. FINANCIAL INFORMATION
GENERAL
State Street Corporation is one of the world’s leading providers of financial services to institutional investors, including investment services, markets and financing solutions and investment management. Our clients - asset managers and owners, insurance companies, wealth managers, official institutions, and central banks - rely on us to deliver solutions that support their business objectives across the investment life cycle.
State Street Corporation, referred to as the Parent Company, is a financial holding company organized in 1969 under the laws of the Commonwealth of Massachusetts. The Parent Company is a source of financial and managerial strength to our subsidiaries. Through our subsidiaries, including our principal banking subsidiary, State Street Bank and Trust Company, referred to as State Street Bank, we operate in more than 100 geographic markets worldwide, including in the United States, Canada, Latin America, Europe, the Middle East and Asia. We provide a broad range of financial products and services to institutional investors worldwide, with $51.66 trillion of AUC/A and $5.45 trillion of AUM as of September 30, 2025.
As of September 30, 2025, we had consolidated total assets of $371.07 billion, consolidated total deposits of $280.00 billion, consolidated total shareholders' equity of $27.64 billion and
approximately
52,000
employees.
Our operations are organized into two lines of business, Investment Servicing and Investment Management, which are defined based on products and services provided.
Additio
nal information about our lines of business is provided in "Line of Business Information" in this Management's Discussion and Analysis and Note 17 to the consolidated financial statements in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 (Form 10-Q).
Our corporate headquarters is located at One Congress Street, Boston, Massachusetts 02114 (telephone (617) 786-3000). For purposes of this Form 10-Q, unless the context requires otherwise, references to "State Street," "we," "us," "our" or similar terms mean State Street Corporation and its subsidiaries on a consolidated basis.
This Management's Discussion and Analysis is part of this Form 10-Q and updates the Management's Discussion and Analysis in our 2024 Annual Report on Form 10-K for the year ended December 31, 2024 previously filed with the SEC (2024 Form 10-K). The financial information
contained in this Management's Discussion and Analysis and elsewhere in this Form 10-Q should be read in conjunction with the financial and other information contained in our 2024 Form 10-K. Certain previously reported amounts presented in this Form 10-Q have been reclassified to conform to current-period presentation.
We prepare our consolidated financial statements in conformity with U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in its application of certain accounting policies that materially affect the reported amounts of assets, liabilities, equity, revenue and expenses.
The significant accounting policies that require us to make judgments, estimates and assumptions that are difficult, subjective or complex, about matters that are uncertain and may change in subsequent periods include:
•
Recurring fair value measurements;
•
Allowance for credit losses;
•
Impairment of goodwill and other intangible assets; and
•
Contingencies.
These significant accounting policies require the most subjective or complex judgments, and underlying estimates and assumptions could be subject to revision as new information becomes available. For additional information about these significant accounting policies refer to pages 117 to 119, “Significant Accounting Estimates” included under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, in our 2024 Form 10-K. We did not change these significant accounting policies in the first nine months of 2025.
Certain financial information provided in this Form 10-Q, including this Management's Discussion and Analysis, is presented using both a U.S. GAAP, or reported basis, and a non-GAAP basis, including certain non-GAAP measures used in the calculation of identified regulatory ratios. We measure and compare certain financial information on a non-GAAP basis, including information that management uses in evaluating our business and activities. Non-GAAP financial information should be considered in addition to, and not as a substitute for or as superior to, financial information prepared in conformity with U.S. GAAP. Any non-GAAP financial information presented in this Form 10-Q, including this Management’s Discussion and Analysis, is reconciled to its most
State Street Corporation | 4
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
directly comparable currently applicable regulatory ratio or U.S. GAAP-basis measure. As part of our non-GAAP-basis measures, we present a fully taxable-equivalent NII that reports non-taxable revenue, such as interest income associated with tax-exempt investment securities, on a fully taxable-equivalent basis, which we believe facilitates an investor's understanding and analysis of our underlying financial performance and trends.
We provide additional disclosures required by applicable bank regulatory standards, including supplemental qualitative and quantitative information with respect to regulatory capital (including market risk associated with our trading activities), the LCR and NSFR, summary results of annual State Street-run stress tests which we conduct under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), and recovery and resolution plan disclosures. These additional disclosures are accessible on the "Filings & reports" tab of our website at
investors.statestreet.com
.
We have included the website address of State Street (including investors.statestreet.com) and the SEC in this report as an inactive textual reference only. Information on those websites (or any other) is not incorporated by reference into this Form 10-Q.
We use acronyms and other defined terms for certain business terms and abbreviations, as defined in the acronyms list and glossary following the consolidated financial statements in this Form 10-Q.
Forward-Looking Statements
This Form 10-Q, as well as other reports and proxy materials submitted by us under the Securities Exchange Act of 1934, registration statements filed by us under the Securities Act of 1933, our annual report to shareholders and other public statements we may make, may contain statements (including statements in our Management's Discussion and Analysis included in such reports, as applicable) that are considered “forward-looking statements” within the meaning of U.S. securities laws, including statements about our goals and expectations regarding our business, financial and capital condition, results of operations, strategies, cost savings and transformation initiatives, investment portfolio performance, dividend and stock purchase programs, acquisitions, outcomes of legal proceedings, market growth, joint ventures and divestitures, client growth, new technologies, services and opportunities, sustainability and impact, human capital and climate, as well as industry, governmental, regulatory, economic and market trends, initiatives and developments, the business environment and other matters that do not relate strictly to historical facts.
Terminology such as “expect,” “outlook,” “will,” “goal,” “target,” “strategy,” “may,” “estimate,” “plan,”
“intend,” “objective,” “forecast,” “believe,” “priority,” “anticipate,” “seek,” and “trend,” or similar statements or variations of such terms, are intended to identify forward-looking statements, although not all forward-looking statements contain such terms.
Forward-looking statements are subject to various risks and uncertainties, which change over time, are based on management's expectations and assumptions at the time the statements are made and are not guarantees of future results. Management's expectations and assumptions, and the continued validity of the forward-looking statements, are subject to change due to a broad range of factors affecting the U.S. and global economies, regulatory environment and the equity
,
debt, currency and other financial markets, as well as factors specific to us and our subsidiaries, including State Street Bank. Factors that could cause changes in the expectations or assumptions on which forward-looking statements are based cannot be foreseen with certainty. Important factors that in the future could cause actual results to differ materially from those envisaged in forward-looking statements, and that in some cases have affected us in the past, include, but are not limited to:
Strategic Risks
•
We are subject to intense competition, which could negatively affect our profitability;
•
We are subject to significant pricing pressure and variability in our financial results and our AUC/A and AUM;
•
Our development and completion of new products and services, including State Street Alpha
®
and those related to wealth servicing, alternative investment management or digital assets or incorporating artificial intelligence, may impose costs on us, involve dependencies on third parties and may expose us to increased risks;
•
Acquisitions, strategic alliances, joint ventures and divestitures, and the integration, retention and development of the benefits of these transactions, pose risks for our business; and
•
Competition for qualified members of our workforce is intense, and we may not be able to attract and retain the highly skilled people we need to support our business.
Financial Market Risks
•
We could be adversely affected by political, geopolitical, economic and market conditions, including, for example, as a result of liquidity or capital deficiencies (actual or perceived) by other financial institutions and related market and government actions, changes in U.S. trade or other policies or those policies
State Street Corporation | 5
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
of other nations, the ongoing conflicts in Ukraine and in the Middle East, major political shifts domestically or internationally (including the potential for retaliatory actions by governments, market participants or clients based on diverging perspectives or otherwise and, separately, the shutdown of the U.S. federal government that began on October 1, 2025), actions taken by central banks in an attempt to address prevailing economic conditions, changes in monetary policy or periods of significant volatility in the markets for equity, fixed income and other asset classes globally or within specific markets;
•
We have significant operations and clients in many markets and jurisdictions globally that can be adversely impacted, locally or more broadly, by disruptions in those or other markets or economies, including local, regional and geopolitical developments affecting those markets or economies;
•
Our investment securities portfolio, consolidated financial condition and consolidated results of operations could be adversely affected by changes in the financial markets, governmental action or monetary policy. For example, among other risks, changes in prevailing interest rates or market conditions have led, and were they to persist or occur in the future could further lead, to decreases in our NII or to portfolio management decisions resulting in reductions in our capital or liquidity ratios;
•
Our business activities expose us to interest rate risk;
•
We assume significant credit risk of counterparties, who may also have substantial financial dependencies on other financial institutions, and these credit exposures and concentrations could expose us to financial loss;
•
Our fee revenue represents a significant portion of our revenue and is subject to and may decline based on, among other factors, market and currency declines, investment activities and preferences of our clients and their business mix, as well as the timing of new business onboarding;
•
If we are unable to effectively manage our capital and liquidity, our financial condition, capital ratios, results of operations and business prospects could be adversely affected;
•
Our calculations of risk exposures, total RWA and capital ratios depend on data inputs,
formulae, models, correlations and assumptions that are subject to change, which could materially impact our risk exposures, our total RWA and our capital ratios from period to period;
•
We may need to raise additional capital or debt in the future, which may not be available to us or may only be available on unfavorable terms; and
•
If we experience a downgrade in our credit ratings, or an actual or perceived reduction in our financial strength, our borrowing and capital costs, liquidity and reputation could be adversely affected.
Compliance and Regulatory Risks
•
Our business and capital-related activities, including common share repurchases, may be adversely affected by regulatory requirements and considerations, including capital, credit and liquidity;
•
We face extensive and changing government regulation and supervision in the U.S. and non-U.S. jurisdictions in which we operate, which may increase our costs and compliance risks and may affect our business activities and strategies;
•
Our businesses may be adversely affected by government enforcement and litigation;
•
Our businesses may be adversely affected by increased and conflicting political, regulatory and client scrutiny of asset management, stewardship and corporate sustainability or Environmental, Social and Governance (ESG) practices;
•
Any misappropriation of the confidential information we possess could have an adverse impact on our business and could subject us to regulatory actions, litigation and other adverse effects;
•
Changes in accounting standards may adversely affect our consolidated results of operations and financial condition;
•
Changes in tax laws, rules or regulations, challenges to our tax positions and changes in the composition of our pre-tax earnings may increase our effective tax rate;
•
We could face liabilities for withholding and other non-income taxes, including in connection with our services to clients, as a result of tax authority examinations; and
•
Our businesses may be negatively affected by adverse publicity or other reputational harm.
State Street Corporation | 6
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Operational and Technology Risks
•
Attacks or unauthorized access to our or our business partners' or clients' information technology systems or facilities, such as cyber-attacks or other disruptions to our or their operations, could result in significant costs, reputational damage and impacts on our business activities;
•
Our business may be negatively affected by risks associated with strategic initiatives we are undertaking to enhance the effectiveness, including the adoption or integration of new technologies such as artificial intelligence, and efficiency of our operations and of our cybersecurity and technology infrastructure or by our failure to meet the related, resiliency or other expectations of our clients and regulators, or as a result of a cyber-attack or similar vulnerability in our or business partners' infrastructure;
•
Our risk management framework, models and processes may not be effective in identifying or mitigating risk and reducing the potential for related losses, and a failure or circumvention of our controls and procedures, or errors or delays in our operational and transaction processing, or those of third parties, could have an adverse effect on our business, financial condition, operating results and reputation;
•
Shifting and maintaining operational activities to non-U.S. jurisdictions, changing our operating model, and outsourcing to, or insourcing from, third parties expose us to increased operational risk, geopolitical risk and reputational harm and may not result in expected cost savings or operational improvements;
•
Long-term contracts and customizing service delivery for clients expose us to increased operational risk, pricing and performance risk;
•
The quantitative models we use to manage our business may contain errors that could adversely impact our business, financial condition, operating results and regulatory compliance, and lapses in disclosure controls and procedures or internal control over financial reporting could occur, any of which could result in material harm;
•
We may not be able to protect our intellectual property or may infringe upon the rights of third parties;
•
Our reputation and business prospects may be damaged if investors in the collective investment pools we sponsor or manage incur substantial losses in these investment pools or are restricted in redeeming their interests in these investment pools;
•
The impacts of global regulatory requirements and expectations, shifting client preferences, and disclosure requirements related to climate risks and sustainability standards could adversely affect us; and
•
We may incur losses or face negative impacts on our business as a result of unforeseen events, including terrorist attacks, geopolitical events, acute or chronic physical risk events, including natural disasters, pandemics, global conflicts, or a banking crisis, which may have a negative impact on our business and operations.
Actual outcomes and results may differ materially from what is expressed in our forward-looking statements and from our historical financial results due to the factors discussed in this section and elsewhere in this Form 10-Q or disclosed in our other SEC filings. Forward-looking statements in this Form 10-Q should not be relied on as representing our expectations or assumptions as of any time subsequent to the time this Form 10-Q is filed with the SEC. We undertake no obligation to revise our forward-looking statements after the time they are made. The factors discussed herein are not intended to be a complete statement of all risks and uncertainties that may affect our businesses. We cannot anticipate all developments that may adversely affect our business or operations or our consolidated results of operations, financial condition or cash flows.
Forward-looking statements should not be viewed as predictions and should not be the primary basis on which investors evaluate State Street. Any investor in State Street should consider all risks and uncertainties disclosed in our SEC filings, including our filings under the Securities Exchange Act of 1934, in particular our annual reports on Form 10-K, our quarterly reports on Form 10-Q and our current reports on Form 8-K, and our registration statements filed under the Securities Act of 1933, all of which are accessible on the SEC's website at
www.sec.gov
or on the "Filings & reports" tab of our website at
investors.statestreet.com.
State Street Corporation | 7
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
OVERVIEW OF FINANCIAL RESULTS
| TABLE 1: OVERVIEW OF FINANCIAL RESULTS | ||||||||||||||||||||
| Three Months Ended September 30, | % Change | |||||||||||||||||||
| (Dollars in millions, except per share amounts) | 2025 | 2024 | ||||||||||||||||||
| Total fee revenue | $ | 2,829 | $ | 2,616 | 8 | % | ||||||||||||||
| Net interest income | 715 | 723 | (1) | |||||||||||||||||
| Total other income | 1 | (80) | nm | |||||||||||||||||
| Total revenue | 3,545 | 3,259 | 9 | |||||||||||||||||
| Provision for credit losses | 9 | 26 | nm | |||||||||||||||||
| Total expenses | 2,434 | 2,308 | 5 | |||||||||||||||||
| Income before income tax expense | 1,102 | 925 | 19 | |||||||||||||||||
| Income tax expense | 241 | 195 | 24 | |||||||||||||||||
| Net income | $ | 861 | $ | 730 | 18 | |||||||||||||||
| Adjustments to net income: | ||||||||||||||||||||
|
Dividends on preferred stock
(1)
|
$ | (58) | $ | (48) | (21) | |||||||||||||||
|
Earnings allocated to participating securities
(2)
|
(1) | — | nm | |||||||||||||||||
| Net income available to common shareholders | $ | 802 | $ | 682 | 18 | |||||||||||||||
| Earnings per common share: | ||||||||||||||||||||
| Basic | $ | 2.83 | $ | 2.29 | 24 | |||||||||||||||
| Diluted | 2.78 | 2.26 | 23 | |||||||||||||||||
| Average common shares outstanding (in thousands): | ||||||||||||||||||||
| Basic | 283,434 | 297,365 | (5) | |||||||||||||||||
| Diluted | 288,163 | 301,847 | (5) | |||||||||||||||||
| Cash dividends declared per common share | $ | 0.84 | $ | 0.76 | 11 | |||||||||||||||
| Return on average common equity | 13.4 | % | 12.0 | % | 140 | bps | ||||||||||||||
| Pre-tax margin | 31.1 | 28.4 | 270 | |||||||||||||||||
| Nine Months Ended September 30, | % Change | |||||||||||||||||||
| (Dollars in millions, except per share amounts) | 2025 | 2024 | ||||||||||||||||||
| Total fee revenue | $ | 8,118 | $ | 7,494 | 8 | % | ||||||||||||||
| Net interest income | 2,158 | 2,174 | (1) | |||||||||||||||||
| Total other income | 1 | (80) | nm | |||||||||||||||||
| Total revenue | 10,277 | 9,588 | 7 | |||||||||||||||||
| Provision for credit losses | 51 | 63 | (19) | |||||||||||||||||
| Total expenses | 7,413 | 7,090 | 5 | |||||||||||||||||
| Income before income tax expense | 2,813 | 2,435 | 16 | |||||||||||||||||
| Income tax expense | 615 | 531 | 16 | |||||||||||||||||
| Net income | $ | 2,198 | $ | 1,904 | 15 | |||||||||||||||
| Adjustments to net income: | ||||||||||||||||||||
|
Dividends on preferred stock
(1)
|
$ | (167) | $ | (148) | (13) | |||||||||||||||
|
Earnings allocated to participating securities
(2)
|
(2) | (1) | nm | |||||||||||||||||
| Net income available to common shareholders | $ | 2,029 | $ | 1,755 | 16 | |||||||||||||||
| Earnings per common share: | ||||||||||||||||||||
| Basic | $ | 7.09 | $ | 5.85 | 21 | |||||||||||||||
| Diluted | 6.98 | 5.77 | 21 | |||||||||||||||||
| Average common shares outstanding (in thousands): | ||||||||||||||||||||
| Basic | 286,074 | 299,964 | (5) | |||||||||||||||||
| Diluted | 290,439 | 304,176 | (5) | |||||||||||||||||
| Cash dividends declared per common share | $ | 2.36 | $ | 2.14 | 10 | |||||||||||||||
| Return on average common equity | 11.6 | % | 10.6 | % | 100 | bps | ||||||||||||||
| Pre-tax margin | 27.4 | 25.4 | 200 | |||||||||||||||||
(1)
Additional information about our preferred stock dividends is provided in Note 12 to the consolidated financial statements in this Form 10-Q.
(2)
Represents the portion of net income available to common equity allocated to participating securities, composed of unvested and fully vested supplemental executive retirement plans (SERP) shares and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings.
nm
Not meaningful
The following “Financial Results and Highlights” section provides information related to significant events, as well as highlights of our consolidated financial results for the third quarter of 2025 presented in Table 1: Overview of Financial Results.
More detailed information about our consolidated financial results, including the comparison of our financial results for the three and nine months ended September 30, 2025 compared to the same periods of 2024, is provided under “Consolidated Results of Operations”, "Line of Business Information" and "Capital" which follows these sections, as well as in our consolidated financial statements in this Form 10-Q. In this Management’s Discussion and Analysis, where we describe the effects of changes in foreign currency translation, those effects are determined by applying applicable weighted average FX rates from the relevant 2024 period to the relevant 2025 period results.
Financial Results and Highlights
Third quarter of
2025
financial performance
•
Earnings per share (EPS) of $2.78 in the third quarter of 2025 increased 23% as compared to the same period of 2024, primarily driven by higher total revenue, partially offset by higher total expenses.
•
Total revenue increased 9% in the third quarter of 2025, compared to the same period of 2024, primarily reflecting higher fee revenue.
•
Total expenses increased 5% in the third quarter of 2025, compared to the same period of 2024, primarily driven by increases in investments to improve technology and business capabilities, revenue-related costs and the impact of currency translation.
•
Pre-tax margin of 31.1% in the third quarter of 2025 increased from 28.4% in the same period of 2024, while return on equity of 13.4% in the third quarter of 2025 increased from 12.0% in the same period of 2024. Both increases were primarily driven by higher total revenue, partially offset by higher total expenses.
•
Operating leverage and fee operating leverage were 332 bps and 268 bps in the third quarter of 2025, respectively.
•
We returned a total of $637 million to our shareholders in the form of common share repurchases and common stock dividends.
Notable Items
•
There were no notable items in the third quarter of 2025.
•
Notable items in the third quarter of 2024 included:
◦
Loss on the sale of investment securities of approximately $81 million relating to an investment
State Street Corporation | 8
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
portfolio repositioning, reflected in other income;
◦
Gain on sale of an equity investment of $66 million, recorded in other fee revenue; and
◦
Revenue-related recovery of $15 million from settlement proceeds associated with a 2018 FX benchmark litigation resolution, which is reflected in foreign exchange trading services revenue.
Revenue
•
Total fee revenue increased 8% in the third quarter of 2025, compared to the same period of 2024, primarily reflecting higher servicing fees, management fees, foreign exchange trading services revenue, securities finance revenue and software and processing fees.
•
Servicing fee revenue increased 7% in the third quarter of 2025, compared to the same period of 2024, primarily reflecting higher average market levels, net new business and the impact of currency translation.
•
Management fee revenue increased 16% in the third quarter of 2025, compared to the same period of 2024, primarily due to higher average market levels and net inflows.
•
Foreign exchange trading services revenue increased 11% in the third quarter of 2025, compared to the same period of 2024, supported by higher volumes with Investment Services clients, partially offset by the impact of a notable item in the third quarter of 2024.
•
Securities finance revenue increased 19% in the third quarter of 2025, compared to the same period of 2024, primarily due to higher client lending balances and agency spreads, partially offset by lower prime services spreads.
•
Software and processing fees revenue increased 9% in the third quarter of 2025, compared to the same period of 2024, primarily due to higher front office software and data revenue associated with CRD.
•
Other fee revenue decreased $46 million in the third quarter of 2025, compared to the same period of 2024, largely driven by the impact of a notable item in the prior year period.
•
NII decreased 1% in the third quarter of 2025, compared to the same period of 2024, as lower average short-end rates and deposit mix shift were partially offset by securities portfolio repricing and continued loan growth.
Provision for Credit Losses
•
In the third quarter of 2025, we recorded a $9 million provision for credit losses, compared to $26 million in the same period of 2024, primarily reflecting the evolving macroeconomic environment and an increase in loan loss reserves associated with leveraged and commercial real estate loans.
Expenses
•
Total expenses increased 5% in the third quarter of 2025, compared to the same period of 2024, primarily due to increases in investments to improve technology and business capabilities, revenue-related costs and the impact of currency translation which contributed 1% of the increase.
AUC/A and AUM
•
AUC/A of $51.66 trillion as of September 30, 2025, increased 10% compared to September 30, 2024, primarily due to higher quarter-end market levels and client flows. In the third quarter of 2025, newly announced asset servicing mandates totaled approximately $361 billion of AUC/A. Servicing assets remaining to be installed in future periods totaled approximately $3.6 trillion of AUC/A as of September 30, 2025.
•
AUM of $5.45 trillion as of September 30, 2025, increased 15% compared to September 30, 2024, primarily due to higher quarter-end market levels and net inflows.
Capital
•
In the third quarter of 2025, we returned a total of $637 million to our shareholders in the form of common share repurchases and common stock dividends.
◦
We declared aggregate common stock dividends of $0.84 per share, totaling $237 million in the third quarter of 2025, compared to $0.76 per share, totaling $224 million in the same period of 2024, representing an increase of approximately 11% on a per share basis.
◦
In the third quarter of 2025, we acquired an aggregate of 3.6 million shares of common stock at an average per share cost of $110.34 and an aggregate cost of $400 million. These purchases were all conducted under the share repurchase program approved by our Board of Directors (the Board) in January 2024.
State Street Corporation | 9
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
•
Our standardized CET1 capital ratio increased to 11.3% as of September 30, 2025, compared to 10.9% as of December 31, 2024, primarily due to capital generated from earnings, partially offset by continued capital return and higher RWA. Our Tier 1 leverage ratio was 5.6% as of September 30, 2025, compared to 5.2% as of December 31, 2024, mainly driven by capital generated from earnings and higher preferred equity, partially offset by higher average balance sheet levels and continued capital return. Our target ranges for the CET1 capital and Tier 1 leverage ratios remain at 10-11% and 5.25-5.75%, respectively.
Debt Issuances and Redemptions
•
On October 23, 2025, we issued $1 billion aggregate principal amount of 4.784% fixed-to-floating rate senior notes due 2036.
•
On October 29, 2025, we notified the holders of our $500 million aggregate principal amount of 5.751% fixed-to-floating rate senior notes due 2026, that we will redeem all of the notes on November 4, 2025.
CONSOLIDATED RESULTS OF OPERATIONS
This section discusses our consolidated results of operations for the three and nine months ended September 30, 2025 compared to the same periods of 2024 and should be read in conjunction with the consolidated financial statements and accompanying notes to the consolidated financial statements in this Form 10-Q.
Total Revenue
| TABLE 2: TOTAL REVENUE | |||||||||||||||||
| Three Months Ended September 30, | % Change | ||||||||||||||||
| (Dollars in millions) | 2025 | 2024 | |||||||||||||||
| Fee revenue: | |||||||||||||||||
| Servicing fees | $ | 1,357 | $ | 1,266 | 7 | % | |||||||||||
| Management fees | 612 | 527 | 16 | ||||||||||||||
| Foreign exchange trading services | 416 | 374 | 11 | ||||||||||||||
| Securities finance | 138 | 116 | 19 | ||||||||||||||
| Front office software and data | 167 | 146 | 14 | ||||||||||||||
| Lending related and other fees | 60 | 62 | (3) | ||||||||||||||
| Software and processing fees | 227 | 208 | 9 | ||||||||||||||
| Other fee revenue | 79 | 125 | (37) | ||||||||||||||
| Total fee revenue | 2,829 | 2,616 | 8 | ||||||||||||||
| Net interest income: | |||||||||||||||||
|
Interest income
|
2,918 | 3,081 | (5) | ||||||||||||||
|
Interest expense
|
2,203 | 2,358 | (7) | ||||||||||||||
| Net interest income | 715 | 723 | (1) | ||||||||||||||
| Other income: | |||||||||||||||||
| Gains (losses) related to investment securities, net | 1 | (80) | nm | ||||||||||||||
| Total other income | 1 | (80) | nm | ||||||||||||||
| Total revenue | $ | 3,545 | $ | 3,259 | 9 | ||||||||||||
| Nine Months Ended September 30, | % Change | ||||||||||||||||
| (Dollars in millions) | 2025 | 2024 | |||||||||||||||
| Fee revenue: | |||||||||||||||||
| Servicing fees | $ | 3,936 | $ | 3,733 | 5 | % | |||||||||||
| Management fees | 1,736 | 1,548 | 12 | ||||||||||||||
| Foreign exchange trading services | 1,209 | 1,041 | 16 | ||||||||||||||
| Securities finance | 378 | 320 | 18 | ||||||||||||||
| Front office software and data | 494 | 442 | 12 | ||||||||||||||
| Lending related and other fees | 188 | 187 | 1 | ||||||||||||||
| Software and processing fees | 682 | 629 | 8 | ||||||||||||||
| Other fee revenue | 177 | 223 | (21) | ||||||||||||||
| Total fee revenue | 8,118 | 7,494 | 8 | ||||||||||||||
| Net interest income: | |||||||||||||||||
|
Interest income
|
8,895 | 8,968 | (1) | ||||||||||||||
|
Interest expense
|
6,737 | 6,794 | (1) | ||||||||||||||
| Net interest income | 2,158 | 2,174 | (1) | ||||||||||||||
| Other income: | |||||||||||||||||
| Gains (losses) related to investment securities, net | 1 | (80) | nm | ||||||||||||||
| Total other income | 1 | (80) | nm | ||||||||||||||
| Total revenue | $ | 10,277 | $ | 9,588 | 7 | ||||||||||||
State Street Corporation | 10
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Fee Revenue
Table 2: Total Revenue, provides the breakout of fee revenue for the three and nine months ended September 30, 2025 and 2024. Servicing and management fees collectively made up approximately 70% of total fee revenue in both the three and nine months ended September 30, 2025, and 69% and 70% of total fee revenue in the three and nine months ended September 30, 2024, respectively.
Additional information about fee revenue is provided under "Line of Business Information" included in this Management's Discussion and Analysis.
Servicing Fee Revenue
Servicing fees, as presented in
Table 2: Total Revenue, increased 7% and 5% in the three and nine months ended September 30, 2025, respectively, compared to the same periods of 2024, primarily reflecting higher average market levels, net new business and the impact of currency translation.
Servicing fees generated outside the United States were approximately 48% of total servicing fees in both the three and nine months ended September 30, 2025, and 47% of total servicing fees in both the three and nine months ended September 30, 2024.
Servicing fee revenue comprises revenue from a range of services provided to our clients, including certain Alpha servicing mandates, consisting of core custody services, accounting, reporting and administration, which we refer to collectively as back office services and middle office services. The nature and mix of services provided and the asset classes for which the services are performed affect our servicing fees. The basis for fees will differ across regions and clients. Generally, our servicing fee revenues are affected by several factors, including changes in market valuations, client activity and asset flows, net new business and the manner in which we price our services. For servicing fees for which we have not yet issued an invoice to our clients as of period end, we include an estimate of the impact of changes in market valuations, client activity and flows, net new business and changes in pricing in our revenues. For additional information regarding servicing fee revenue, refer to pages 63 to 66 included under Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, “Total Revenue”, in our 2024 Form 10-K.
Changes in Market Valuations
Our servicing fee revenue is impacted by both our levels and the geographic and product mix of our AUC/A. Changes in market valuations have an associated impact on the level of our AUC/A and servicing fee revenues, though the degree of impact will vary depending on asset types and classes, and geography of assets held within our clients’ portfolios. For certain asset classes where the valuation process is more complex, including alternative investments, or where our valuation is dependent on third party information, AUC/A is reported on a time lag, typically one-month. For those asset classes, which represent a significant portion of AUC/A, the impact of market levels on our reported AUC/A, and to a lesser extent servicing fee revenue, does not reflect current period-end market levels.
Client Activity and Asset Flows
Client activity and asset flows are impacted by the number of transactions we execute on behalf of our clients, including FX settlements, equity and derivative trades, and wire transfer activity, as well as actions by our clients to change the asset class in which their assets are invested. Our servicing fee revenues are impacted by a number of factors, including transaction volumes, asset levels and asset classes in which funds are invested, as well as industry trends associated with these client-related activities.
State Street Corporation | 11
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Net New Business
Servicing fee revenue associated with new servicing mandates is not reflected in our servicing fee revenue until the assets have been installed, and may vary between mandates based on the breadth of services provided, the time required to install the assets, and the types of assets installed. Our installation timeline in general can range from 6 to 36 months with the average installation timeline being approximately 9 to 12 months over the past two full fiscal years.
Asset servicing mandates newly announced in the third quarter of 2025, totaled approximately $361 billion of AUC/A. With respect to the current asset mandates of approximately $3.6 trillion of AUC/A that are yet to be installed as of September 30, 2025, we expect the conversion will mostly occur over the coming 24 months, with approximately 40% expected to be installed in the remainder of 2025, with the balance expected to be largely installed throughout 2026 and 2027. The expected timing of these installations is subject to change due to a variety of factors, including adjusted implementation schedules agreed with clients, scope adjustments, and product and functionality changes.
As previously disclosed in early 2021, due to a decision to diversify providers, one of our large asset servicing clients is moving a significant portion of its ETF assets currently with State Street to one or more other providers. Prior to the commencement of the transition of assets, which began in 2022, we estimated that the financial impact of this transition represented approximately 1.9% of our 2021 total fee revenue. We began to see the impact of the transition on our fee revenue and income growth trends primarily towards the end of 2023, with the remainder expected to be largely realized through 2025 as the transition continues. On a quarterly run rate basis, we estimate that the third quarter of 2025 reflected approximately two-thirds of the revenue impact of the exiting business. We expect to continue as a significant service provider for this client after this transition and for the client to continue to be meaningful to our business.
Pricing
The industry in which we operate has historically faced pricing pressure, and our servicing fee revenues continue to be affected by such pressures today. Consequently, no assumption should be drawn as to future revenue run rate from announced servicing AUC/A wins, as the amount of revenue associated with AUC/A, once installed, can vary materially between mandates.
In addition to the effects described above (i.e., client activity and asset flows, net new business and pricing), our servicing fee revenue in any period will vary depending on the mix of products and services we provide to our clients. The full impact of changes in market valuations and the volume of activity in the funds may not be fully reflected in our servicing fee revenues in the periods in which the changes occur, particularly in periods of higher volatility.
|
TABLE 3: ASSETS UNDER CUSTODY AND/OR ADMINISTRATION BY PRODUCT
(1)
|
|||||||||||||||||
| (In billions) | September 30, 2025 | December 31, 2024 | September 30, 2024 | ||||||||||||||
| Collective funds, including ETFs | $ | 17,795 | $ | 15,266 | $ | 15,253 | |||||||||||
| Mutual funds | 13,209 | 12,301 | 12,223 | ||||||||||||||
| Pension products | 10,321 | 9,386 | 9,339 | ||||||||||||||
| Insurance and other products | 10,339 | 9,604 | 9,944 | ||||||||||||||
| Total | $ | 51,664 | $ | 46,557 | $ | 46,759 | |||||||||||
|
TABLE 4: ASSETS UNDER CUSTODY AND/OR ADMINISTRATION BY ASSET CLASS
(1)
|
|||||||||||||||||
| (In billions) | September 30, 2025 | December 31, 2024 | September 30, 2024 | ||||||||||||||
| Equities | $ | 31,124 | $ | 27,535 | $ | 27,715 | |||||||||||
| Fixed-income | 12,874 | 11,933 | 12,027 | ||||||||||||||
|
Short-term and other investments
(2)
|
7,666 | 7,089 | 7,017 | ||||||||||||||
| Total | $ | 51,664 | $ | 46,557 | $ | 46,759 | |||||||||||
|
TABLE 5: ASSETS UNDER CUSTODY AND/OR ADMINISTRATION BY GEOGRAPHY
(1)(3)
|
|||||||||||||||||
| (In billions) | September 30, 2025 | December 31, 2024 | September 30, 2024 | ||||||||||||||
| Americas | $ | 36,698 | $ | 33,284 | $ | 33,460 | |||||||||||
| Europe/Middle East/Africa | 11,570 | 10,179 | 10,214 | ||||||||||||||
| Asia/Pacific | 3,396 | 3,094 | 3,085 | ||||||||||||||
| Total | $ | 51,664 | $ | 46,557 | $ | 46,759 | |||||||||||
(1)
Consistent with past practice, AUC/A values for certain asset classes are based on a lag, typically one-month.
(2)
Short-term and other investments includes derivatives, cash and cash equivalents and other instruments.
(3)
Geographic mix is generally based on the domicile of the entity servicing the funds and is not necessarily representative of the underlying asset mix.
State Street Corporation | 12
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Management Fee Revenue
Management fees increased 16% and 12% in the three and nine months ended September 30, 2025, respectively, compared to the same periods of 2024, primarily due to higher average market levels and net inflows.
Management fees generated outside the United States were approximately 25% of total management fees in both the three and nine months ended September 30, 2025, and 24% and 25% of total management fees in the three and nine months ended September 30, 2024, respectively.
Management fees generally are affected by our level of AUM, which we report based on month-end valuations. Management fees for certain components of managed assets, such as ETFs, mutual funds and Undertakings for Collective Investment in Transferable Securities, are affected by daily average valuations of AUM. Management fee revenue is more sensitive to market valuations than servicing fee revenue, as a higher proportion of the underlying services provided, and the associated management fees earned, are dependent on equity and fixed-income security valuations. Additional factors, such as the relative mix of assets managed, may have a significant effect on our management fee revenue. While certain management fees are directly determined by the values of AUM and the investment strategies employed, management fees may reflect other factors, including performance fee arrangements, as well as our relationship pricing for clients.
For additional information regarding management fee revenue, refer to pages 66 to 68 included under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, “Total Revenue”, in our 2024 Form 10-K.
| TABLE 6: ASSETS UNDER MANAGEMENT BY ASSET CLASS AND INVESTMENT APPROACH | |||||||||||||||||
| (In billions) | September 30, 2025 | December 31, 2024 | September 30, 2024 | ||||||||||||||
| Equity: | |||||||||||||||||
| Active | $ | 60 | $ | 52 | $ | 54 | |||||||||||
| Passive | 3,405 | 2,955 | 2,923 | ||||||||||||||
| Total equity | 3,465 | 3,007 | 2,977 | ||||||||||||||
| Fixed-income: | |||||||||||||||||
| Active | 30 | 31 | 30 | ||||||||||||||
| Passive | 690 | 585 | 593 | ||||||||||||||
|
Total fixed-income
(1)
|
720 | 616 | 623 | ||||||||||||||
|
Cash
(1)
|
540 | 518 | 543 | ||||||||||||||
| Multi-asset-class solutions: | |||||||||||||||||
| Active | 29 | 23 | 23 | ||||||||||||||
| Passive | 448 | 351 | 352 | ||||||||||||||
| Total multi-asset-class solutions | 477 | 374 | 375 | ||||||||||||||
|
Alternative investments
(2)
:
|
|||||||||||||||||
| Active | 10 | 10 | 10 | ||||||||||||||
|
Passive
|
234 | 190 | 204 | ||||||||||||||
| Total alternative investments | 244 | 200 | 214 | ||||||||||||||
| Total | $ | 5,446 | $ | 4,715 | $ | 4,732 | |||||||||||
(1)
Includes both floating- and constant-net-asset-value portfolios held in commingled structures or separate accounts.
(2)
Includes real estate investment trusts, currency and commodities, including SPDR® Gold Shares and SPDR® Gold MiniSharesSM Trust. We are not the investment manager for the SPDR® Gold Shares and SPDR® Gold MiniSharesSM Trust, but act as the marketing agent.
|
TABLE 7: GEOGRAPHIC MIX OF ASSETS UNDER MANAGEMENT
(1)
|
|||||||||||||||||
| (In billions) | September 30, 2025 | December 31, 2024 | September 30, 2024 | ||||||||||||||
| Americas | $ | 3,982 | $ | 3,468 | $ | 3,448 | |||||||||||
|
Europe/Middle East/Africa
|
806 | 713 | 728 | ||||||||||||||
| Asia/Pacific | 658 | 534 | 556 | ||||||||||||||
| Total | $ | 5,446 | $ | 4,715 | $ | 4,732 | |||||||||||
(1)
Geographic mix is based on client location or fund management location.
|
TABLE 8: EXCHANGE-TRADED FUNDS BY ASSET CLASS
(1)
|
|||||||||||||||||
| (In billions) | September 30, 2025 | December 31, 2024 | September 30, 2024 | ||||||||||||||
|
Alternative Investments
(2)
|
$ | 154 | $ | 90 | $ | 91 | |||||||||||
| Equity | 1,500 | 1,310 | 1,253 | ||||||||||||||
| Fixed-Income | 193 | 177 | 171 | ||||||||||||||
| Multi Asset | 1 | 1 | 1 | ||||||||||||||
| Total Exchange-Traded Funds | $ | 1,848 | $ | 1,578 | $ | 1,516 | |||||||||||
(1)
ETFs are a component of AUM presented in the preceding table.
(2)
Includes real estate investment trusts, currency and commodities, including SPDR
®
Gold Shares and SPDR
®
Gold MiniShares
SM
Trust. We are not the investment manager for the SPDR
®
Gold Shares and SPDR
®
Gold
MiniShares
SM
Trust, but act as the marketing agent.
State Street Corporation | 13
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
| TABLE 9: ACTIVITY IN ASSETS UNDER MANAGEMENT BY PRODUCT CATEGORY | |||||||||||||||||||||||||||||||||||
| (In billions) | Equity | Fixed-Income |
Cash
(1)
|
Multi-Asset-Class Solutions |
Alternative Investments
(2)
|
Total | |||||||||||||||||||||||||||||
| Balance as of December 31, 2023 | $ | 2,513 | $ | 609 | $ | 467 | $ | 310 | $ | 203 | $ | 4,102 | |||||||||||||||||||||||
|
Long-term institutional flows, net
(3)
|
(3) | (23) | — | 14 | (12) | (24) | |||||||||||||||||||||||||||||
| Exchange-traded fund flows, net | 2 | 3 | — | — | (4) | 1 | |||||||||||||||||||||||||||||
|
Cash flows, net
|
— | — | 9 | — | — | 9 | |||||||||||||||||||||||||||||
| Total flows, net | (1) | (20) | 9 | 14 | (16) | (14) | |||||||||||||||||||||||||||||
| Market appreciation (depreciation) | 220 | (4) | 6 | 12 | 9 | 243 | |||||||||||||||||||||||||||||
| Foreign exchange impact | (20) | (7) | (1) | (1) | (3) | (32) | |||||||||||||||||||||||||||||
| Total market/foreign exchange impact | 200 | (11) | 5 | 11 | 6 | 211 | |||||||||||||||||||||||||||||
| Balance as of March 31, 2024 | $ | 2,712 | $ | 578 | $ | 481 | $ | 335 | $ | 193 | $ | 4,299 | |||||||||||||||||||||||
|
Long-term institutional flows, net
(3)
|
(13) | 1 | 1 | 8 | (5) | (8) | |||||||||||||||||||||||||||||
| Exchange-traded fund flows, net | 2 | 4 | — | — | — | 6 | |||||||||||||||||||||||||||||
|
Cash flows, net
|
— | — | (4) | — | — | (4) | |||||||||||||||||||||||||||||
| Total flows, net | (11) | 5 | (3) | 8 | (5) | (6) | |||||||||||||||||||||||||||||
| Market appreciation (depreciation) | 62 | 4 | 5 | 6 | 6 | 83 | |||||||||||||||||||||||||||||
| Foreign exchange impact | (4) | (4) | — | — | 1 | (7) | |||||||||||||||||||||||||||||
| Total market/foreign exchange impact | 58 | — | 5 | 6 | 7 | 76 | |||||||||||||||||||||||||||||
| Balance as of June 30, 2024 | $ | 2,759 | $ | 583 | $ | 483 | $ | 349 | $ | 195 | $ | 4,369 | |||||||||||||||||||||||
|
Long-term institutional flows, net
(3)
|
7 | 1 | — | 2 | (1) | 9 | |||||||||||||||||||||||||||||
| Exchange-traded fund flows, net | 27 | 6 | — | — | 4 | 37 | |||||||||||||||||||||||||||||
| Cash fund flows, net | — | — | 54 | — | — | 54 | |||||||||||||||||||||||||||||
| Total flows, net | 34 | 7 | 54 | 2 | 3 | 100 | |||||||||||||||||||||||||||||
| Market appreciation (depreciation) | 152 | 20 | 5 | 18 | 13 | 208 | |||||||||||||||||||||||||||||
| Foreign exchange impact | 32 | 13 | 1 | 6 | 3 | 55 | |||||||||||||||||||||||||||||
| Total market/foreign exchange impact | 184 | 33 | 6 | 24 | 16 | 263 | |||||||||||||||||||||||||||||
| Balance as of September 30, 2024 | $ | 2,977 | $ | 623 | $ | 543 | $ | 375 | $ | 214 | $ | 4,732 | |||||||||||||||||||||||
| Balance as of December 31, 2024 | $ | 3,007 | $ | 616 | $ | 518 | $ | 374 | $ | 200 | $ | 4,715 | |||||||||||||||||||||||
|
Long-term institutional flows, net
(3)
|
(21) | (7) | — | 13 | — | (15) | |||||||||||||||||||||||||||||
| Exchange-traded fund flows, net | (16) | 9 | — | — | 8 | 1 | |||||||||||||||||||||||||||||
|
Cash flows, net
|
— | — | 1 | — | — | 1 | |||||||||||||||||||||||||||||
| Total flows, net | (37) | 2 | 1 | 13 | 8 | (13) | |||||||||||||||||||||||||||||
| Market appreciation (depreciation) | (84) | 8 | (2) | (1) | 14 | (65) | |||||||||||||||||||||||||||||
| Foreign exchange impact | 15 | 7 | 1 | 4 | 1 | 28 | |||||||||||||||||||||||||||||
| Total market/foreign exchange impact | (69) | 15 | (1) | 3 | 15 | (37) | |||||||||||||||||||||||||||||
| Balance as of March 31, 2025 | $ | 2,901 | $ | 633 | $ | 518 | $ | 390 | $ | 223 | $ | 4,665 | |||||||||||||||||||||||
|
Long-term institutional flows, net
(3)
|
6 | 48 | — | 25 | (11) | 68 | |||||||||||||||||||||||||||||
| Exchange-traded fund flows, net | 8 | 3 | — | — | 4 | 15 | |||||||||||||||||||||||||||||
|
Cash flows, net
|
— | — | (1) | — | — | (1) | |||||||||||||||||||||||||||||
| Total flows, net | 14 | 51 | (1) | 25 | (7) | 82 | |||||||||||||||||||||||||||||
| Market appreciation (depreciation) | 273 | 7 | 6 | 27 | 5 | 318 | |||||||||||||||||||||||||||||
| Foreign exchange impact | 30 | 9 | 2 | 7 | 4 | 52 | |||||||||||||||||||||||||||||
| Total market/foreign exchange impact | 303 | 16 | 8 | 34 | 9 | 370 | |||||||||||||||||||||||||||||
| Balance as of June 30, 2025 | 3,218 | 700 | 525 | 449 | 225 | 5,117 | |||||||||||||||||||||||||||||
|
Long-term institutional flows, net
(3)
|
(21) | 12 | — | 6 | (18) | (21) | |||||||||||||||||||||||||||||
| Exchange-traded fund flows, net | 26 | 1 | — | — | 10 | 37 | |||||||||||||||||||||||||||||
| Cash fund flows, net | — | — | 10 | — | — | 10 | |||||||||||||||||||||||||||||
| Total flows, net | 5 | 13 | 10 | 6 | (8) | 26 | |||||||||||||||||||||||||||||
| Market appreciation (depreciation) | 244 | 10 | 5 | 24 | 27 | 310 | |||||||||||||||||||||||||||||
| Foreign exchange impact | (2) | (3) | — | (2) | — | (7) | |||||||||||||||||||||||||||||
| Total market/foreign exchange impact | 242 | 7 | 5 | 22 | 27 | 303 | |||||||||||||||||||||||||||||
| Balance as of September 30, 2025 | $ | 3,465 | $ | 720 | $ | 540 | $ | 477 | $ | 244 | $ | 5,446 | |||||||||||||||||||||||
(1)
Includes both floating and constant-net-asset-value portfolios held in commingled structures or separate accounts.
(2)
Includes real estate investment trusts, currency and commodities, including SPDR® Gold Shares and SPDR® Gold MiniShares
SM
Trust. We are not the investment manager for the SPDR® Gold Shares and SPDR® Gold MiniShares
SM
Trust, but act as the marketing agent.
(3)
Amounts represent long-term portfolios, excluding ETFs.
State Street Corporation | 14
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Foreign Exchange Trading Services
Foreign exchange trading services revenue, as presented in Table 2: Total Revenue, increased 11% and 16% in the three and nine months ended September 30, 2025, respectively, compared to the same periods of 2024, primarily due to higher volumes with Investment Services clients, partially offset by the impact of a notable item in the third quarter of 2024.
Foreign exchange trading services revenue comprises revenue generated by FX trading and revenue generated by brokerage and other trading services, which made up 64% and 36%, respectively, of foreign exchange trading services revenue in the third quarter of 2025, compared to 62% and 38%, respectively, in the same period of 2024.
Our FX trading revenue is influenced by multiple factors, including: the volume and type of client FX transactions and related spreads; currency volatility, reflecting market conditions; and our management of exchange rate, interest rate and other market risks associated with our FX activities. The relative impact of these factors on our total FX trading revenues often differs from period to period. For example, assuming all other factors remain constant, increases or decreases in volumes or bid-offer spreads across product mix tend to result in corresponding changes in client-related FX revenue.
For additional information regarding FX trading services revenue, refer to pages 68 to 69 included under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, “Total Revenue”, in our 2024 Form 10-K.
Securities Finance
Securities finance revenue, as presented in Table 2: Total Revenue, increased 19% in the three months ended September 30, 2025, compared to the same period of 2024, primarily due to higher client lending balances and agency spreads, partially offset by lower prime services spreads. Securities finance revenue increased 18% in the nine months ended September 30, 2025, compared to the same period of 2024, primarily due to higher prime services balances.
For additional information regarding securities finance revenue, refer to page 69 included under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, “Total Revenue”, in our 2024 Form 10-K.
Software and Processing Fees
Software and processing fees revenue, as presented in Table 2: Total Revenue, increased 9%
and 8% in the three and nine months ended September 30, 2025, respectively, compared to the same periods of 2024, primarily driven by higher front office software and data revenue associated with CRD. The increase in the nine-month period was partially offset by the impact of the Alpha-related client rescoping notable item in the second quarter of 2025.
Software and processing fees revenue includes diverse types of fees and revenue, including fees from software licensing and maintenance and fees from our structured products business.
Front office software and data revenue, which primarily includes revenue from CRD, Alpha Data Platform and Alpha Data Services, increased 14% in the three months ended September 30, 2025, compared to the same period of 2024, primarily due to higher on-premises renewals, professional services revenue and continued growth in software-enabled revenue. Front office software and data revenue increased 12% in the nine months ended September 30, 2025, compared to the same period of 2024, primarily due to higher on-premises renewals and continued growth in software-enabled revenue partially offset by lower professional services revenue driven by the impact of the previously disclosed Alpha-related client rescoping notable item in the second quarter of 2025. For additional information regarding front office software and data revenue, refer to page 70 included under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, “Total Revenue”, in our 2024 Form 10-K.
Lending related and other fees decreased 3% in the three months ended September 30, 2025 and increased 1% in the nine months ended September 30, 2025, compared to the same periods of 2024. Lending related and other fees primarily consists of fee revenue associated with our fund finance, leveraged loans, municipal finance, insurance and stable value wrap businesses.
Other Fee Revenue
Other fee revenue includes market-related adjustments and income associated with other equity investments.
Other fee revenue decreased $46 million in both the three and nine months ended September 30, 2025, compared to the same periods of 2024, largely driven by impact of a notable item in the prior year.
State Street Corporation | 15
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Net Interest Income
See Table 2: Total Revenue, for the breakout of interest income and interest expense for the three and nine months ended September 30, 2025, compared to the same periods of 2024.
NII is defined as interest income earned on interest-earning assets less interest expense incurred on interest-bearing liabilities. Interest-earning assets, which principally consist of investment securities, interest-bearing deposits with banks, loans, resale agreements and other liquid assets, are financed primarily by client deposits, short-term borrowings and long-term debt.
NIM represents the relationship between annualized fully taxable-equivalent (FTE) NII and average total interest-earning assets for the period. It is calculated by dividing FTE NII by average interest-earning assets. Revenue that is exempt from income taxes, mainly earned from certain investment securities (state and political subdivisions), is adjusted to an FTE basis using the U.S. federal and state statutory income tax rates.
NII decreased 1%
in
both
the three and nine months ended September 30, 2025, compared to the same periods of 2024, as lower average short-end rates and deposit mix shift were partially offset by securities portfolio repricing and continued loan growth.
See Table 10: Average Balances and Interest Rates - Fully Taxable-Equivalent Basis, for the breakout of NII for the three and nine months ended September 30, 2025, compared to the same periods of 2024.
State Street Corporation | 16
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
|
TABLE 10: AVERAGE BALANCES AND INTEREST RATES - FULLY TAXABLE-EQUIVALENT BASIS
(1)
|
|||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| (Dollars in millions; fully taxable-equivalent basis) |
Average
Balance |
Interest
Revenue/Expense |
Rate |
Average
Balance |
Interest
Revenue/Expense |
Rate | |||||||||||||||||||||||||||||
| Interest-bearing deposits with banks | $ | 88,130 | $ | 671 | 3.03 | % | $ | 86,884 | $ | 878 | 4.02 | % | |||||||||||||||||||||||
|
Securities purchased under resale agreements
(2)
|
8,643 | 170 | 7.82 | 6,991 | 183 | 10.44 | |||||||||||||||||||||||||||||
| Trading account assets | 806 | 2 | .90 | 788 | — | — | |||||||||||||||||||||||||||||
| Investment securities: | |||||||||||||||||||||||||||||||||||
| Investment securities available-for-sale | 69,898 | 775 | 4.43 | 57,302 | 734 | 5.13 | |||||||||||||||||||||||||||||
| Investment securities held-to-maturity | 41,923 | 226 | 2.15 | 50,062 | 266 | 2.12 | |||||||||||||||||||||||||||||
| Total Investment securities | 111,821 | 1,001 | 3.58 | 107,364 | 1,000 | 3.73 | |||||||||||||||||||||||||||||
|
Loans
(3)
|
46,500 | 584 | 4.98 | 39,782 | 579 | 5.79 | |||||||||||||||||||||||||||||
|
Other interest-earning assets
(4)
|
39,557 | 491 | 4.92 | 27,697 | 442 | 6.35 | |||||||||||||||||||||||||||||
| Average total interest-earning assets | $ | 295,457 | $ | 2,919 | 3.92 | $ | 269,506 | $ | 3,082 | 4.55 | |||||||||||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||
| U.S. | $ | 157,132 | $ | 1,384 | 3.49 | $ | 135,440 | $ | 1,415 | 4.16 | |||||||||||||||||||||||||
| Non-U.S. | 73,428 | 276 | 1.49 | 65,824 | 281 | 1.70 | |||||||||||||||||||||||||||||
|
Total interest-bearing deposits
(5)(6)
|
230,560 | 1,660 | 2.86 | 201,264 | 1,696 | 3.35 | |||||||||||||||||||||||||||||
| Securities sold under repurchase agreements | 1,002 | 8 | 3.44 | 2,193 | 28 | 4.98 | |||||||||||||||||||||||||||||
| Other short-term borrowings | 10,069 | 124 | 4.88 | 13,639 | 176 | 5.16 | |||||||||||||||||||||||||||||
| Long-term debt | 25,273 | 311 | 4.93 | 20,258 | 267 | 5.27 | |||||||||||||||||||||||||||||
|
Other interest-bearing liabilities
(7)
|
3,445 | 100 | 11.39 | 5,238 | 191 | 14.41 | |||||||||||||||||||||||||||||
| Average total interest-bearing liabilities | $ | 270,349 | $ | 2,203 | 3.23 | $ | 242,592 | $ | 2,358 | 3.87 | |||||||||||||||||||||||||
| Interest rate spread | .69 | % | .68 | % | |||||||||||||||||||||||||||||||
| Net interest income, fully taxable-equivalent basis | $ | 716 | $ | 724 | |||||||||||||||||||||||||||||||
| Net interest margin, fully taxable-equivalent basis | .96 | % | 1.07 | % | |||||||||||||||||||||||||||||||
| Tax-equivalent adjustment | (1) | (1) | |||||||||||||||||||||||||||||||||
| Net interest income, GAAP basis | $ | 715 | $ | 723 | |||||||||||||||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| (Dollars in millions; fully taxable-equivalent basis) |
Average
Balance |
Interest
Revenue/Expense |
Rate |
Average
Balance |
Interest
Revenue/Expense |
Rate | |||||||||||||||||||||||||||||
| Interest-bearing deposits with banks | $ | 93,060 | $ | 2,232 | 3.21 | % | $ | 88,330 | $ | 2,805 | 4.24 | % | |||||||||||||||||||||||
|
Securities purchased under resale agreements
(2)
|
8,513 | 514 | 8.08 | 6,557 | 516 | 10.52 | |||||||||||||||||||||||||||||
| Trading account assets | 784 | 2 | .38 | 778 | — | — | |||||||||||||||||||||||||||||
| Investment securities: | |||||||||||||||||||||||||||||||||||
| Investment securities available-for-sale | 67,039 | 2,252 | 4.48 | 52,352 | 1,980 | 5.04 | |||||||||||||||||||||||||||||
| Investment securities held-to-maturity | 44,293 | 701 | 2.11 | 52,251 | 837 | 2.13 | |||||||||||||||||||||||||||||
| Total Investment securities | 111,332 | 2,953 | 3.54 | 104,603 | 2,817 | 3.59 | |||||||||||||||||||||||||||||
|
Loans
(3)
|
45,179 | 1,715 | 5.07 | 38,747 | 1,688 | 5.82 | |||||||||||||||||||||||||||||
|
Other interest-earning assets
(4)
|
37,694 | 1,480 | 5.25 | 22,872 | 1,145 | 6.69 | |||||||||||||||||||||||||||||
| Average total interest-earning assets | $ | 296,562 | $ | 8,896 | 4.01 | $ | 261,887 | $ | 8,971 | 4.58 | |||||||||||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||
| U.S. | $ | 157,131 | $ | 4,128 | 3.51 | % | $ | 132,493 | $ | 4,142 | 4.18 | % | |||||||||||||||||||||||
| Non-U.S. | 71,340 | 791 | 1.48 | 63,900 | 831 | 1.74 | |||||||||||||||||||||||||||||
|
Total interest-bearing deposits
(5)(6)
|
228,471 | 4,919 | 2.88 | 196,393 | 4,973 | 3.39 | |||||||||||||||||||||||||||||
| Securities sold under repurchase agreements | 2,884 | 94 | 4.37 | 2,904 | 110 | 5.05 | |||||||||||||||||||||||||||||
| Other short-term borrowings | 10,692 | 374 | 4.67 | 11,683 | 444 | 5.09 | |||||||||||||||||||||||||||||
| Long-term debt | 24,965 | 930 | 4.97 | 19,634 | 792 | 5.38 | |||||||||||||||||||||||||||||
|
Other interest-bearing liabilities
(7)
|
4,147 | 420 | 13.53 | 4,808 | 475 | 13.16 | |||||||||||||||||||||||||||||
| Average total interest-bearing liabilities | $ | 271,159 | $ | 6,737 | 3.32 | $ | 235,422 | $ | 6,794 | 3.85 | |||||||||||||||||||||||||
| Interest rate spread | .69 | % | .72 | % | |||||||||||||||||||||||||||||||
| Net interest income, fully taxable-equivalent basis | $ | 2,159 | $ | 2,177 | |||||||||||||||||||||||||||||||
| Net interest margin, fully taxable-equivalent basis | .97 | % | 1.11 | % | |||||||||||||||||||||||||||||||
| Tax-equivalent adjustment | (1) | (3) | |||||||||||||||||||||||||||||||||
| Net interest income, GAAP basis | $ | 2,158 | $ | 2,174 | |||||||||||||||||||||||||||||||
(1)
Rates earned/paid on interest-earning assets and interest-bearing liabilities include the impact of hedge activities associated with our asset and liability management activities where applicable.
(2)
Reflects the impact of balance sheet netting under enforceable netting agreements of approximately $251.21 billion and $245.56 billion for the three and nine months ended September 30, 2025, respectively, compared to $200.88 billion and $184.33 billion for the same periods of 2024. Excluding the impact of netting, the average interest rates would be approximately 0.26% and 0.27% for the three and nine months ended September 30, 2025, respectively, compared to
0.35%
and
0.36%
for the same periods of 2024.
(3)
Average loans are presented on a gross basis. Average loans net of expected credit losses was approximately $46.32 billion and $45.01 billion for the three and nine months ended September 30, 2025, respectively, compared to $39.65 billion and $38.62 billion for the same periods of 2024.
(4)
Reflects the impact of balance sheet netting under enforceable netting agreements of approximately $6.01 billion and $8.26 billion for the three and nine months ended September 30, 2025, respectively, compared to $6.47 billion for both the same periods of 2024. Excluding the impact of netting, the average interest rates would be approximately 4.27% and 4.31% for the three and nine months ended September 30, 2025, respectively, compared to 5.15% and 5.21% for the same periods of 2024.
(5)
Average rate includes the impact of FX swap costs of approxima
te
ly ($31) million and ($155) million
for the
three and nine months ended September 30, 2025, respectively, compared to ($82) million and ($195) million for the same periods of 2024. Average rates for total interest-bearing deposits excluding the impact of FX swap costs were 2.91% and 2.97% for the three and nine months ended September 30, 2025, respectively, compared to
3.52%
for both the same periods of 2024.
(6)
Total deposits averag
ed
$254.51 billion and $252.81 billion for the three and nine months ended September 30, 2025, respectively, compared to $225.48 billion and $221.77 billion for the same periods of 2024.
(7)
Reflects the impact of balance sheet netting under enforceable netting agreements of approxim
at
ely $5.69 billion and $7.98 billion for the three and nine months ended September 30, 2025, respectively, compared to $7.52 billion and $6.26 billion for the same periods of 2024. Excluding the impact of netting, the average interest rates would be approximately 4.30% and 4.63% for
the three and nine months ended September 30, 2025, respectively, compared to
5.15%
and
5.72%
for the same periods of 2024.
State Street Corporation | 17
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Changes in the components of interest-earning assets and interest-bearing liabilities are discussed in more detail below. Additional information about the components of interest income and interest expense is provided in Note 14 to the consolidated financial statements in this Form 10-Q.
Average total interest-earning assets were $295.46 billion and $296.56 billion in the three and nine months ended September 30, 2025, respectively, compared to $269.51 billion and $261.89 billion in the same periods of 2024. The increase is primarily due to higher levels of client deposits and long-term debt.
Interest-bearing deposits with banks averaged $88.13 billion and $93.06 billion in the three and nine months ended September 30, 2025, respectively, compared to $86.88 billion and $88.33 billion in the same periods of 2024. These deposits primarily reflect our maintenance of cash balances at the Federal Reserve, the ECB and other non-U.S. central banks. The higher levels of average cash balances reflect higher levels of client deposits and funding levels.
Securities purchased under resale agreements average
d
$8.64 billion and $8.51 billion i
n
the three and nine months ended September 30, 2025, respectively, compared to $6.99 billion and $6.56 billion in the same periods of 2024, due to an increase in FICC repurchase agreement volumes. As a member of FICC, we may net securities sold under repurchase agreements against those purchased under resale agreements with counterparties that are also members of the clearing organization, when specific netting criteria are met. The impact of balance sheet netting was $251.21 billion and $245.56 billion on average in the three and nine months ended September 30, 2025, respectively, compared to $200.88 billion and $184.33 billion in the same periods of 2024.
We are a direct and sponsoring member of FICC. As a sponsoring member within FICC, we enter into repurchase and resale transactions in eligible securities with sponsored clients and with other FICC members and, pursuant to FICC Government Securities Division rules, submit, novate and net the transactions. We may sponsor clients to clear their eligible repurchase transactions with FICC, backed by our guarantee to FICC of the prompt and full payment and performance of our sponsored member clients’ respective obligations. We generally obtain a security interest from our sponsored clients in the high quality securities collateral that they receive, which is designed to mitigate our potential exposure to FICC.
Additionally, as a member of certain industry clearing and settlement exchanges, we may be required to pay a pro rata share of the losses incurred
by the organization and provide liquidity support in the event of the default of another member to the extent that the defaulting member’s clearing fund obligation and the prescribed loss allocation is depleted. It is difficult to estimate our maximum possible exposure under the membership agreement, since this would require an assessment of future claims that may be made against us that have not yet occurred. We did not record any liabilities under these arrangements as of either September 30, 2025 or December 31, 2024.
Average investment securities increased to $111.82 billion and $111.33 billion in the three and nine months ended September 30, 2025, respectively, from $107.36 billion and $104.60 billion in the same periods of 2024, primarily driven by growth in U.S. Treasuries.
Average loans increa
sed to
$46.50 billion and $45.18 billion in the three and nine months ended September 30, 2025, respectively, from $39.78 billion and $38.75 billion in the same periods of 2024. Average core loans, which exclude overdrafts and highlight our efforts to grow our lending portfolio, averaged $43.08 billion and $41.87 billion in the three and nine months ended September 30, 2025, respectively, compared to $36.28 billion and $35.21 billion in the same periods of 2024. The increases are primarily due to growth in collateralized loan obligations and fund finance loans. Additional information about these loans is provided in Note 4 to the consolidated financial statements in this Form 10-Q.
Average other interest-earning assets, largely associated with our prime services business, increased to $39.56 billion and $37.69 billion in the three and nine months ended September 30, 2025, respectively, from $27.70 billion and $22.87 billion in the same periods of 2024, primarily driven by an increase in the level of cash collateral posted. Other interest-earning assets primarily reflects prime services assets where cash has been posted to borrow securities from lenders, which are then lent by us, as principal, to borrowers. This cash includes both cash from borrowers and cash utilized from our balance sheet, and is presented on a net basis on the balance sheet where we have enforceable netting agreements. Non-interest earning assets also includes a portion of our prime services assets where borrower-provided non-cash collateral has been utilized to borrow securities from lenders, which we subsequently loan, as principal, to borrowers; in this structure our investment portfolio securities are encumbered, but this is not reflected on the balance sheet. Combined with our prime services liabilities, revenue from these activities generates securities finance fee revenue as well as net interest income.
State Street Corporation | 18
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Average total interest-bearing deposits increased to $230.56 billion and $228.47 billion
in
the three and nine months ended September 30, 2025, respectively, from $201.26 billion and $196.39 billion in the same periods of 2024. The increase was driven by market volatility in the second quarter of 2025 and our active client engagement to support our structural liquidity position and to support business growth on the asset side of the balance sheet. Future interest-bearing deposit levels will be influenced by the underlying asset servicing business, client behavior, the mix of interest-bearing and non-interest bearing deposits and market conditions, including the general levels of U.S. and non-U.S. interest rates.
Average other short-term borrowings decreased to $10.07 billion and $10.69 billion in the three and nine months ended September 30, 2025, respectively, from $13.64 billion and $11.68 billion in the same periods of 2024.
Average long-term debt was $25.27 billion and $24.97 billion in the three and nine months ended September 30, 2025, respectively, compared to $20.26 billion and $19.63 billion in the same periods of 2024, supporting our businesses and structural liquidity position. These amounts reflect issuances, redemptions and maturities of senior and subordinated debt during the respective periods.
Average other interest-bearing liabilities, largely associated with our prime services business, were $3.45 billion and $4.15 billion in the three and nine months ended September 30, 2025, respectively, compared to $5.24 billion and $4.81 billion in the same periods of 2024. Other interest-bearing liabilities is primarily driven by cash received from our custody clients, which is presented on a net basis where we have enforceable netting agreements. Non-interest bearing liabilities also include a portion of our prime services liabilities where client provided non-cash collateral has been received and we have rehypothecation rights. Securities received as collateral from our custody clients where we have no rehypothecation rights are used as a credit mitigant only and remain off balance sheet.
Several factors could affect future levels of NII and NIM, including the volume and mix of client deposits and funding sources; central bank actions; balance sheet management activities; changes in the level and slope of U.S. and non-U.S. interest rates; trade policy of the United States or other nations; revised or proposed regulatory capital or liquidity standards, or interpretations of those standards; the yields earned on securities purchased compared to the yields earned on securities sold or matured; and changes in the type and amount of credit or other loans we extend.
Based on market conditions and other factors, including regulatory standards, we continue to reinvest the majority of the proceeds from pay-downs and maturities of investment securities in highly-rated U.S. and non-U.S. securities, such as federal agency MBS, sovereign debt securities and U.S. Treasury and agency securities. The pace at which we reinvest, and the types of investment securities purchased, will depend on the impact of market conditions, the implementation of regulatory standards, including interpretation of those standards and other factors over time. We expect these factors and the levels of global interest rates to impact our reinvestment program and future levels of NII and NIM.
Provision for Credit Losses
We recorded a $9 million and $51 million
provision for credit losses,
in t
he three and nine months ended September 30, 2025, respectively, compared to $26 million and $63 million in the same periods of 2024, primarily reflecting the evolving macroeconomic environment and an increase in loan loss reserves associated with certain commercial real estate and leveraged loans.
Additional information is provided under “Loans” in "Financial Condition" in this Management's Discussion and Analysis and in Note 4 to the consolidated financial statements in this Form 10-Q.
Expenses
Table 11: Expenses, provides the breakout of expenses for the three and nine months ended September 30, 2025, compared to the same periods of 2024. Total expen
ses increased 5% in the three months ended September 30, 2025, compared to the same period of 2024, primarily due to increases in investments to improve technology and business capabilities, revenue-related costs and the impact of currency translation which contributed 1% of the increase. Total expenses increased 5% in the nine months ended September 30, 2025, c
ompared to the same period of 2024, primarily reflecting higher compensation and employee benefit costs, increases in investments to improve technology and business capabilities and higher revenue-related costs, partially offset by productivity and vendor savings.
State Street Corporation | 19
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
| TABLE 11: EXPENSES | |||||||||||||||||
| Three Months Ended September 30, | % Change | ||||||||||||||||
| (Dollars in millions) | 2025 | 2024 | |||||||||||||||
| Compensation and employee benefits | $ | 1,162 | $ | 1,134 | 2 | % | |||||||||||
| Information systems and communications | 517 | 463 | 12 | ||||||||||||||
| Transaction processing services | 276 | 255 | 8 | ||||||||||||||
| Occupancy | 106 | 105 | 1 | ||||||||||||||
| Amortization of other intangible assets | 56 | 56 | — | ||||||||||||||
| Other: | |||||||||||||||||
| Professional services | 103 | 105 | (2) | ||||||||||||||
| Other | 214 | 190 | 13 | ||||||||||||||
| Total other | 317 | 295 | 7 | ||||||||||||||
| Total expenses | $ | 2,434 | $ | 2,308 | 5 | ||||||||||||
| Number of employees at quarter-end | 51,564 | 52,566 | (2) | ||||||||||||||
| Nine Months Ended September 30, | % Change | ||||||||||||||||
| (Dollars in millions) | 2025 | 2024 | |||||||||||||||
| Compensation and employee benefits | $ | 3,704 | $ | 3,485 | 6 | % | |||||||||||
| Information systems and communications | 1,537 | 1,349 | 14 | ||||||||||||||
| Transaction processing services | 794 | 753 | 5 | ||||||||||||||
| Occupancy | 314 | 314 | — | ||||||||||||||
| Amortization of other intangible assets | 166 | 176 | (6) | ||||||||||||||
| Other: | |||||||||||||||||
| Professional services | 320 | 326 | (2) | ||||||||||||||
| Other | 578 | 687 | (16) | ||||||||||||||
| Total other | 898 | 1,013 | (11) | ||||||||||||||
| Total expenses | $ | 7,413 | $ | 7,090 | 5 | ||||||||||||
Compensation and employee benefits expenses increased 2% in the
three months ended September 30, 2025, compared to the same period of 2024, primarily due to merit increases, higher employee benefit costs and the impact of currency translation which contributed 1% to the increase.
Compensation and employee benefits expenses increased
6% in the nine months ended September 30, 2025, compared to the same period of 2024, primarily due to the repositioning charge notable item recorded in the second quarter of 2025, higher performance-based incentive compensation as well as merit increases and employee benefit costs, partially offset by productivity and other savings.
Total headcount
decreased 2%
as of September 30, 2025, compared to September 30, 2024, primarily driven by our continued efforts to simplify our operations through organization design and technology and automation efforts. These impacts were partially offset by headcount growth in high-cost locations primarily to support clients and revenue generation.
Infor
mation systems and communications expenses increased 12% and 14% in the three and nine months ended September 30, 2025, respectively, compared to the same periods of 2024, largely driven by higher technology and infrastructure investments, partially offset by vendor savings.
Transaction processing services expenses increased 8% and 5%
in the three and nine months
ended September 30, 2025, respectively, compared to the same periods of 2024, primarily due to higher sub-custody and market data costs.
Occupancy expenses remained relatively flat in the three and nine months ended September 30, 2025, compared to the same periods of 2024.
Amortization of other intangible assets was flat and decreased 6% in the three and nine months ended September 30, 2025, respect
ively, compared to the same periods of 2024.
Other expenses
increased 7% in the
three months ended September 30, 2025, compared to the same period of 2024, primarily due to the timing of foundation funding, higher marketing costs and other revenue-related expenses. Other expense
s decreased 11% i
n the nine months ended September 30, 2025, compared to the same period of 2024, primarily reflecting the impact of a notable item in the first quarter of 2024 related to the FDIC special assessment, partially offset by higher marketing costs and other revenue-related expenses.
Repositioning Charges
In the second quarter of 2025, we recorded a repositioning charge of $100 million related to compensation and employee benefits primarily from workforce rationalization.
The following table presents aggregate activity for repositioning charges for the periods indicated:
|
TABLE 12: RESTRUCTURING AND REPOSITIONING CHARGES
|
|||||||||||||||||
| (In millions) |
Employee
Related Costs |
Real Estate
Actions |
Total | ||||||||||||||
|
Accrual Balance at December 31, 2023
|
$ | 207 | $ | 1 | $ | 208 | |||||||||||
| Payments and other adjustments | (19) | — | (19) | ||||||||||||||
|
Accrual Balance at March 31, 2024
|
188 | 1 | 189 | ||||||||||||||
| Payments and other adjustments | (37) | — | (37) | ||||||||||||||
| Accrual Balance at June 30, 2024 | 151 | 1 | 152 | ||||||||||||||
| Payments and other adjustments | (17) | — | (17) | ||||||||||||||
| Accrual Balance at September 30, 2024 | $ | 134 | $ | 1 | $ | 135 | |||||||||||
|
Accrual Balance at December 31, 2024
|
$ | 96 | $ | — | $ | 96 | |||||||||||
| Payments and other adjustments | (14) | — | (14) | ||||||||||||||
|
Accrual Balance at March 31, 2025
|
82 | — | 82 | ||||||||||||||
|
Accruals for repositioning charges
|
100 | — | 100 | ||||||||||||||
| Payments and other adjustments | (19) | — | (19) | ||||||||||||||
| Accrual Balance at June 30, 2025 | 163 | — | 163 | ||||||||||||||
| Payments and other adjustments | (25) | — | (25) | ||||||||||||||
| Accrual Balance at September 30, 2025 | $ | 138 | $ | — | $ | 138 | |||||||||||
State Street Corporation | 20
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Income Tax Expense
Income tax expense was $241 million and $615 million in the three and nine months ended September 30, 2025, respectively, compared to $195 million and $531 million, in the same periods of 2024. Our effective tax rate was 21.9% in both the three and nine months ended September 30, 2025, compared to 21.1% and 21.8% in the same periods in 2024. The increase in the effective tax rate in the three-month period was primarily due to lower discrete tax benefits.
LINE OF BUSINESS INFORMATION
Our operations are organized into two lines of business: Investment Servicing and Investment Management, which are defined based on products and services provided. The results of operations for these lines of business are not necessarily comparable with those of other companies, including companies in the financial services industry.
Our Investment Servicing line of business provides a broad range of services and market and financing solutions to institutional clients, including mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, investment managers, foundations and endowments worldwide.
Through State Street Investment Services, State Street Markets and State Street Alpha
®
, we offer a full range of back- and middle-office solutions, including custody, accounting and fund administration services for traditional and alternative assets, as well as multi-asset class investments; record keeping, client reporting and investment book of record, transaction management, loans, cash, derivatives and collateral services; investor services operations outsourcing; performance, risk and compliance analytics; financial data management to support institutional investors; foreign exchange, brokerage and other trading services; securities finance, including prime services products; and deposit and short-term investment facilities.
Together with our middle- and back-office services, CRD’s front- and middle-office technology offerings form the foundation of State Street Alpha. Our State Street Alpha platform combines portfolio management, trading and execution, analytics and compliance tools, and advanced data aggregation and integration with other industry platforms and providers.
Our Investment Management line of business provides a comprehensive range of investment management solutions and products for our clients through State Street Investment Management (previously State Street Global Advisors). Our investment management solutions include strategies across equity, fixed income, cash, multi-asset and
alternatives; products such as SPDR
®
ETFs and index funds; and services including defined benefit, defined contribution and Outsourced Chief Investment Officer.
For additional information about our two lines of business, as well as the revenues, expenses and capital allocation methodologies associated with them, refer to "Lines of Business Information" included under Item 1, Business, in our 2024 Form 10-K and Note 17 to the consolidated financial statements in this Form 10-Q.
Investment Servicing
| TABLE 13: INVESTMENT SERVICING LINE OF BUSINESS RESULTS | ||||||||||||||||||||
| (Dollars in millions, except where otherwise noted) | Three Months Ended September 30, | % Change | ||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||
| Servicing fees | $ | 1,357 | $ | 1,266 | 7 | % | ||||||||||||||
| Foreign exchange trading services | 364 | 312 | 17 | |||||||||||||||||
| Securities finance | 133 | 111 | 20 | |||||||||||||||||
| Software and processing fees | 227 | 208 | 9 | |||||||||||||||||
| Other fee revenue | 68 | 48 | 42 | |||||||||||||||||
| Total fee revenue | 2,149 | 1,945 | 10 | |||||||||||||||||
| Net interest income | 711 | 716 | (1) | |||||||||||||||||
| Total other income | 1 | 1 | — | |||||||||||||||||
| Total revenue | 2,861 | 2,662 | 7 | |||||||||||||||||
| Provision for credit losses | 9 | 26 | (65) | |||||||||||||||||
| Total expenses | 1,994 | 1,891 | 5 | |||||||||||||||||
| Income before income tax expense | $ | 858 | $ | 745 | 15 | |||||||||||||||
| Pre-tax margin | 30.0 | % | 28.0 | % | 200 | bps | ||||||||||||||
| Average assets (in billions) | $ | 336.9 | $ | 311.4 | 8 | % | ||||||||||||||
| (Dollars in millions, except where otherwise noted) | Nine Months Ended September 30, | % Change | ||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||
| Servicing fees | $ | 3,936 | $ | 3,733 | 5 | % | ||||||||||||||
| Foreign exchange trading services | 1,091 | 924 | 18 | |||||||||||||||||
| Securities finance | 360 | 302 | 19 | |||||||||||||||||
| Software and processing fees | 706 | 629 | 12 | |||||||||||||||||
| Other fee revenue | 153 | 127 | 20 | |||||||||||||||||
| Total fee revenue | 6,246 | 5,715 | 9 | |||||||||||||||||
| Net interest income | 2,146 | 2,157 | (1) | |||||||||||||||||
| Total other income | 1 | 1 | — | |||||||||||||||||
| Total revenue | 8,393 | 7,873 | 7 | |||||||||||||||||
| Provision for credit losses | 51 | 63 | (19) | |||||||||||||||||
| Total expenses | 6,008 | 5,734 | 5 | |||||||||||||||||
| Income before income tax expense | $ | 2,334 | $ | 2,076 | 12 | |||||||||||||||
| Pre-tax margin | 27.8 | % | 26.4 | % | 140 | bps | ||||||||||||||
| Average assets (in billions) | $ | 340.4 | $ | 303.4 | 12 | % | ||||||||||||||
Servicing Fees
Servicing fees, as presented in Table 13: Investment Servicing Line of Business Results, increased 7% and 5% i
n th
e three and nine months ended September 30, 2025, respectively, compared to the same periods of 2024, primarily reflecting higher average market levels, net new business and the impact of currency translation.
For additional information about servicing fees and the key drivers of our servicing fee revenue, refer
State Street Corporation | 21
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
to "Fee Revenue" in "Consolidated Results of Operations" included in this Management's Discussion and Analysis.
Expenses
Total expenses for Investment Servicing increased 5% in both the three and nine months ended September 30, 2025, compared to the same periods of 2024, primarily reflecting higher compensation and employee benefit costs, increases in investments to improve technology and business capabilities and higher revenue-related costs, partially offset by productivity and vendor savings. Currency translation increased total expenses by 1% in the three months ended September 30, 2025, compared to the same period of 2024.
Additional information about expenses is provided under "Expenses" in "Consolidated Results of Operations" included in this Management's Discussion and Analysis.
Investment Management
| TABLE 14: INVESTMENT MANAGEMENT LINE OF BUSINESS RESULTS | |||||||||||||||||||||||
| (Dollars in millions, except where otherwise noted) | Three Months Ended September 30, | % Change | |||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
|
Management fees
(1)
|
$ | 612 | $ | 527 | 16 | % | |||||||||||||||||
|
Foreign exchange trading services
(2)
|
52 | 47 | 11 | ||||||||||||||||||||
| Securities finance | 5 | 5 | — | ||||||||||||||||||||
|
Other fee revenue
(3)
|
11 | 11 | — | ||||||||||||||||||||
| Total fee revenue | 680 | 590 | 15 | ||||||||||||||||||||
| Net interest income | 4 | 7 | (43) | ||||||||||||||||||||
| Total revenue | 684 | 597 | 15 | ||||||||||||||||||||
| Total expenses | 440 | 417 | 6 | ||||||||||||||||||||
| Income before income tax expense | $ | 244 | $ | 180 | 36 | ||||||||||||||||||
| Pre-tax margin | 35.7 | % | 30.2 | % | 550 |
bps
|
|||||||||||||||||
| Average assets (in billions) | $ | 3.6 | $ | 3.2 | 12.5 | % | |||||||||||||||||
| (Dollars in millions, except where otherwise noted) | Nine Months Ended September 30, | % Change | |||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
|
Management fees
(1)
|
$ | 1,736 | $ | 1,548 | 12 | % | |||||||||||||||||
|
Foreign exchange trading services
(2)
|
115 | 102 | 13 | ||||||||||||||||||||
| Securities finance | 18 | 18 | — | ||||||||||||||||||||
|
Other fee revenue
(3)
|
24 | 30 | (20) | ||||||||||||||||||||
| Total fee revenue | 1,893 | 1,698 | 11 | ||||||||||||||||||||
| Net interest income | 12 | 17 | (29) | ||||||||||||||||||||
| Total revenue | 1,905 | 1,715 | 11 | ||||||||||||||||||||
| Total expenses | 1,288 | 1,225 | 5 | ||||||||||||||||||||
| Income before income tax expense | $ | 617 | $ | 490 | 26 | ||||||||||||||||||
| Pre-tax margin | 32.4 | % | 28.6 | % | 380 | bps | |||||||||||||||||
| Average assets (in billions) | $ | 3.5 | $ | 3.1 | 12.9 | % | |||||||||||||||||
(1)
Includes revenues from SPDR® Gold Shares and SPDR® Gold MiniSharesSM Trust AUM where we are not the investment manager but act as the marketing agent.
(2)
Includes revenue for reimbursements received for certain ETFs associated with State Street Investment Management where we act as the distribution and marketing agent.
(3)
Includes other revenue items that are primarily driven by equity market movements.
Investment Management total reve
nue
increased 15% and 11% i
n
the three and nine months ended September 30, 2025, respectively, compared to the same periods of 2024.
Management Fees
Management fees increased 16% and 12% in the three and nine months ended September 30, 2025, respectively, compared to the same periods of 2024, primarily due to higher average market levels and net inflows.
For additional information about the key drivers of our management fees revenue, refer to "Fee Revenue" in "Consolidated Results of Operations" included in this Management's Discussion and Analysis.
Expenses
Total expenses for Investment Management increased 6% and 5% in the three and nine months ended September 30, 2025, respectively, compared to the same periods of 2024, as higher business investments and revenue-related fund expenses were partially offset by productivity and vendor savings.
Additional information about expenses is provided under "Expenses" in "Consolidated Results of Operations" included in this Management's Discussion and Analysis.
For additional information about our two lines of business, as well as the revenues, expenses and capital allocation methodologies associated with them, refer to Note 17 to the consolidated financial statements in this Form 10-Q.
FINANCIAL CONDITION
The structure of our consolidated statement of condition is primarily driven by the liabilities generated by our Investment Servicing and Investment Management lines of business. Our clients' needs and our operating objectives determine the volume, mix and currency denomination of our assets and liabilities. As our clients execute their worldwide cash management and investment activities, they utilize deposits and short-term investments that constitute the majority of our liabilities. These liabilities are generally in the form of interest-bearing transaction account deposits, which are denominated in a variety of currencies; non-interest-bearing demand deposits; and repurchase agreements, which generally serve as short-term investment alternatives for our clients.
Deposits and other liabilities resulting from client initiated transactions are invested in assets that generally have contractual maturities significantly longer than our liabilities; however, we evaluate the operational nature of our deposits and seek to maintain appropriate short-term liquidity of those liabilities that are not operational in nature and maintain longer-termed assets for our operational deposits. Our assets consist primarily of securities held in our AFS or HTM portfolios and short-duration financial instruments, such as interest-bearing
State Street Corporation | 22
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
deposits with banks and securities purchased under resale agreements. The actual mix of assets is determined by the characteristics of the client liabilities and our desire to maintain a well-diversified portfolio of high-quality assets.
Investment Securities
| TABLE 15: CARRYING VALUES OF INVESTMENT SECURITIES | |||||||||||
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||
| Available-for-sale: | |||||||||||
| U.S. Treasury and federal agencies: | |||||||||||
| Direct obligations | $ | 24,153 | $ | 23,525 | |||||||
|
Mortgage-backed securities
(1)
|
15,551 | 10,566 | |||||||||
| Total U.S. Treasury and federal agencies | 39,704 | 34,091 | |||||||||
| Non-U.S. debt securities: | |||||||||||
| Mortgage-backed securities | 2,792 | 2,430 | |||||||||
|
Asset-backed securities
(2)
|
2,380 | 1,868 | |||||||||
| Non-U.S. sovereign, supranational and non-U.S. agency | 18,464 | 13,939 | |||||||||
|
Other
(3)
|
3,062 | 2,821 | |||||||||
| Total non-U.S. debt securities | 26,698 | 21,058 | |||||||||
| Asset-backed securities: | |||||||||||
|
Student loans
(4)
|
81 | 90 | |||||||||
|
Collateralized loan obligations
(5)
|
2,836 | 3,453 | |||||||||
|
Non-agency CMBS and RMBS
(6)
|
4 | 4 | |||||||||
| Other | 91 | 91 | |||||||||
| Total asset-backed securities | 3,012 | 3,638 | |||||||||
| State and political subdivisions | 26 | 56 | |||||||||
|
Other U.S. debt securities
|
3 | 52 | |||||||||
|
Total available-for-sale securities
(7)
|
$ | 69,443 | $ | 58,895 | |||||||
| Held-to-maturity: | |||||||||||
| U.S. Treasury and federal agencies: | |||||||||||
| Direct obligations | $ | 2,011 | $ | 5,417 | |||||||
|
Mortgage-backed securities
(8)
|
33,683 | 36,101 | |||||||||
| Total U.S. Treasury and federal agencies | 35,694 | 41,518 | |||||||||
| Non-U.S. debt securities: | |||||||||||
| Non-U.S. sovereign, supranational and non-U.S. agency | 2,908 | 3,673 | |||||||||
| Total non-U.S. debt securities | 2,908 | 3,673 | |||||||||
| Asset-backed securities: | |||||||||||
|
Student loans
(4)
|
2,332 | 2,536 | |||||||||
| Total asset-backed securities | 2,332 | 2,536 | |||||||||
|
Total held-to-maturity securities
(7)
|
$ | 40,934 | $ | 47,727 | |||||||
(1)
As of September 30, 2025 and December 31, 2024, the total fair value included $3.29 billion and $4.36 billion, respectively, of agency CMBS and $12.26 billion and $6.20 billion, respectively, of agency MBS.
(2)
As of September 30, 2025 and December 31, 2024, the fair value includes non-U.S. collateralized loan obligations of $0.89 billion and $0.70 billion, respectively.
(3)
As of September 30, 2025 and December 31, 2024, the fair value includes non-U.S. corporate bonds of $2.41 billion and $2.54 billion, respectively.
(4)
Primarily comprises securities guaranteed by the federal government with respect to at least 97% of defaulted principal and accrued interest on the underlying loans.
(5)
Excludes collateralized loan obligations in loan form. Refer to Note 4 to the consolidated financial statements in this Form 10-Q for additional information.
(6)
Consists entirely of non-agency RMBS as of both September 30, 2025 and December 31, 2024.
(7)
An immaterial amount of accrued interest related to HTM and AFS investment securities was excluded from the amortized cost basis for the periods ended September 30, 2025 and December 31, 2024.
(8)
As of September 30, 2025 and December 31, 2024, the total amortized cost included $5.12 billion and $5.18 billion of agency CMBS, respectively.
Additional information about our investment securities portfolio is provided in Note 3 to the consolidated financial statements in this Form 10-Q.
We manage our investment securities portfolio by taking into consideration the interest rate and duration characteristics of our client liabilities along with the context of the overall structure of our consolidated statement of condition, and in consideration of the global interest rate environment. We consider a well-diversified, high-credit quality investment securities portfolio to be an important element in the management of our consolidated statement of condition.
Average duration of our investment securities portfolio, including the impact of hedges, was 2.1 years
and 2.2 years as of
September 30, 2025
and
December 31, 2024, respectively.
Approximately 97% of the carrying value of the portfolio was rated “AA” or higher at both September 30, 2025 and December 31, 2024, as follows:
| TABLE 16: INVESTMENT PORTFOLIO BY EXTERNAL CREDIT RATING | |||||||||||
| September 30, 2025 | December 31, 2024 | ||||||||||
|
AAA
(1)
|
87 | % | 88 | % | |||||||
| AA | 10 | 9 | |||||||||
| A | 3 | 2 | |||||||||
| BBB | — | 1 | |||||||||
| 100 | % | 100 | % | ||||||||
(1)
Includes U.S. Treasury and federal agency securities that are split-rated, “AAA” by Moody’s Investors Service and “AA+” by Standard & Poor’s and also includes Agency MBS securities which are not explicitly rated, but which have an explicit or assumed guarantee from the U.S. government.
The following table presents the diversification of the investment portfolio with respect to asset class composition as of both September 30, 2025 and December 31, 2024.
| TABLE 17: INVESTMENT PORTFOLIO BY ASSET CLASS | |||||||||||
| September 30, 2025 | December 31, 2024 | ||||||||||
| U.S. Agency Mortgage-backed securities | 37 | % | 35 | % | |||||||
| U.S. Treasuries | 24 | 27 | |||||||||
| Non-U.S. sovereign, supranational and non-U.S. agency | 19 | 17 | |||||||||
| Asset-backed securities | 10 | 10 | |||||||||
|
CMBS
|
8 | 9 | |||||||||
| Other credit | 2 | 2 | |||||||||
| 100 | % | 100 | % | ||||||||
The following table presents the net unamortized purchase premiums or discounts and net premium amortization or discount accretion related to the investment portfolio for the periods indicated:
State Street Corporation | 23
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
| TABLE 18: INVESTMENT SECURITIES NET PREMIUM AMORTIZATION | |||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| (Dollars in millions) | MBS |
Non-MBS
|
Total
(1)
|
MBS | Non- MBS |
Total
(1)
|
|||||||||||||||||||||||||||||
| Unamortized purchase premiums and (discounts) at period end | $ | 315 | $ | (421) | $ | (106) | $ | 380 | $ | (610) | $ | (230) | |||||||||||||||||||||||
| Net premium amortization (discount accretion) | 46 | (360) | (314) | 51 | (204) | (153) | |||||||||||||||||||||||||||||
(1)
Totals exclude premiums or discounts created from the transfer of securities from AFS to HTM.
Non-U.S. Debt Securities
Approximately 27% and 23% of the aggregate carrying value of our investment securities portfolio was non-U.S. debt securities as of September 30, 2025 and December 31, 2024, respectively.
|
TABLE 19: NON-U.S. DEBT SECURITIES
(1)
|
|||||||||||
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||
| Available-for-sale: | |||||||||||
| Canada | $ | 3,570 | $ | 3,237 | |||||||
| United Kingdom | 3,406 | 2,702 | |||||||||
|
France
|
2,385 | 1,565 | |||||||||
|
Australia
|
1,961 | 2,055 | |||||||||
| Germany | 1,485 | 1,195 | |||||||||
|
Spain
|
683 | 301 | |||||||||
|
Austria
|
655 | 382 | |||||||||
|
Netherlands
|
598 | 446 | |||||||||
|
Finland
|
357 | 312 | |||||||||
|
Italy
|
338 | 231 | |||||||||
|
Sweden
|
271 | 263 | |||||||||
|
Other
(2)
|
10,989 | 8,369 | |||||||||
| Total | $ | 26,698 | $ | 21,058 | |||||||
| Held-to-maturity: | |||||||||||
| Belgium | $ | 289 | $ | 254 | |||||||
|
Germany
|
229 | 201 | |||||||||
|
France
|
154 | 206 | |||||||||
| Finland | 142 | 124 | |||||||||
| Canada | 117 | 104 | |||||||||
| Austria | — | 67 | |||||||||
|
Ireland
|
— | 397 | |||||||||
|
Other
(2)
|
1,977 | 2,320 | |||||||||
| Total | $ | 2,908 | $ | 3,673 | |||||||
(1)
Geography is determined primarily based on the domicile of collateral or issuer.
(2)
As of September 30, 2025, other non-U.S. investments include $9.39 billion of supranational bonds in AFS securities and $1.98 billion of supranational bonds in HTM securities.
Approximately 88% and 90% of the aggregate carrying value of these non-U.S. debt securities was rated “AA” or higher as of September 30, 2025 and December 31, 2024, respectively. The majority of these securities comprised senior positions within the security structures; these positions have a level of protection provided through subordination and other forms of credit protection. As of September 30, 2025 and December 31, 2024, approximately 32% and 29%, respectively, of the aggregate carrying value of these non-U.S. debt securities was floating-rate.
As of September 30, 2025, our non-U.S. debt securities had an average market-to-book ratio of 100.3%, and an aggregate pre-tax net unrealized gain of $100 million, consisting of gross unrealized gains of $161 million and gross unrealized losses of $61 million. These unrealized amounts included:
•
a pre-tax net unrealized gain of $131 million, consisting of gross unrealized gains of $154 million and gross unrealized losses of $23 million, associated with non-U.S. AFS debt securities; and
•
a pre-tax net unrealized loss of $31 million, consisting of gross unrealized gains of $7 million and gross unrealized losses of $38 million, associated with non-U.S. HTM debt securities.
As of September 30, 2025, the underlying collateral for non-U.S. MBS and ABS primarily included mortgages in Australia, the U.K., the Netherlands and Italy. The securities listed under “Canada” were composed of Canadian government securities, corporate debt, covered bonds and non-U.S. agency securities. The securities listed under “France” were composed of sovereign bonds, corporate debt, covered bonds, ABS and non-U.S. agency securities. The securities listed under “Germany” were composed of non-U.S. agency securities, government bonds, ABS and corporate debt.
State Street Corporation | 24
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Contractual Maturities
|
TABLE 20: CONTRACTUAL MATURITIES AND YIELDS
(1)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
| As of September 30, 2025 | Under 1 Year | 1 to 5 Years | 6 to 10 Years | Over 10 Years | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | ||||||||||||||||||||||||||||||||||||||||||||
|
Available-for-sale
(2)
:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Treasury and federal agencies: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Direct obligations | $ | 6,275 | 2.10 | % | $ | 17,688 | 3.79 | % | $ | 190 | 2.41 | % | $ | — | — | % | $ | 24,153 | |||||||||||||||||||||||||||||||||||
| Mortgage-backed securities | 133 | 4.88 | 1,611 | 4.71 | 1,544 | 4.58 | 12,263 | 5.37 | 15,551 | ||||||||||||||||||||||||||||||||||||||||||||
| Total U.S. treasury and federal agencies | 6,408 | 19,299 | 1,734 | 12,263 | 39,704 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. debt securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage-backed securities | 206 | 4.03 | 466 | 4.39 | — | — | 2,120 | 4.34 | 2,792 | ||||||||||||||||||||||||||||||||||||||||||||
| Asset-backed securities | 124 | 2.76 | 376 | 2.78 | 1,151 | 3.52 | 729 | 2.85 | 2,380 | ||||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. sovereign, supranational and non-U.S. agency | 3,809 | 1.79 | 13,009 | 2.79 | 1,646 | 3.27 | — | — | 18,464 | ||||||||||||||||||||||||||||||||||||||||||||
| Other | 676 | 4.26 | 2,322 | 4.21 | 64 | 5.05 | — | — | 3,062 | ||||||||||||||||||||||||||||||||||||||||||||
| Total non-U.S. debt securities | 4,815 | 16,173 | 2,861 | 2,849 | 26,698 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Asset-backed securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Student loans | 22 | 6.85 | — | — | 10 | 5.27 | 49 | 4.73 | 81 | ||||||||||||||||||||||||||||||||||||||||||||
| Collateralized loan obligations | 108 | 5.69 | 82 | 5.67 | 1,423 | 5.53 | 1,223 | 5.66 | 2,836 | ||||||||||||||||||||||||||||||||||||||||||||
| Non-agency CMBS and RMBS | — | — | — | — | 4 | 5.83 | — | — | 4 | ||||||||||||||||||||||||||||||||||||||||||||
| Other | — | — | 91 | 5.03 | — | — | — | — | 91 | ||||||||||||||||||||||||||||||||||||||||||||
| Total asset-backed securities | 130 | 173 | 1,437 | 1,272 | 3,012 | ||||||||||||||||||||||||||||||||||||||||||||||||
|
State and political subdivisions
(3)
|
— | — | 26 | 6.02 | — | — | — | — | 26 | ||||||||||||||||||||||||||||||||||||||||||||
| Other U.S. debt securities | 3 | 4.70 | — | — | — | — | — | — | 3 | ||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 11,356 | $ | 35,671 | $ | 6,032 | $ | 16,384 | $ | 69,443 | |||||||||||||||||||||||||||||||||||||||||||
|
Held-to-maturity
(2)
:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Treasury and federal agencies: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Direct obligations | $ | 1,901 | 0.45 | % | $ | 102 | 1.53 | % | $ | 1 | 5.08 | % | $ | 7 | 4.81 | % | $ | 2,011 | |||||||||||||||||||||||||||||||||||
| Mortgage-backed securities | 157 | 2.84 | 3,590 | 2.05 | 1,352 | 1.93 | 28,584 | 2.39 | 33,683 | ||||||||||||||||||||||||||||||||||||||||||||
| Total U.S. treasury and federal agencies | 2,058 | 3,692 | 1,353 | 28,591 | 35,694 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. debt securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. sovereign, supranational and non-U.S. agency | 1,457 | 0.89 | 1,357 | 1.15 | 94 | 1.85 | — | — | 2,908 | ||||||||||||||||||||||||||||||||||||||||||||
| Total non-U.S. debt securities | 1,457 | 1,357 | 94 | — | 2,908 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Asset-backed securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Student loans | 133 | 4.90 | 435 | 5.36 | 422 | 5.41 | 1,342 | 4.83 | 2,332 | ||||||||||||||||||||||||||||||||||||||||||||
| Total asset-backed securities | 133 | 435 | 422 | 1,342 | 2,332 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 3,648 | $ | 5,484 | $ | 1,869 | $ | 29,933 | $ | 40,934 | |||||||||||||||||||||||||||||||||||||||||||
(1)
Weighted-average yields are calculated based on the contractual coupon of each security owned at the end of the period, weighted based on the amortized cost of each security, and excludes the effect of related hedges.
(2)
The maturities of MBS, ABS and CMOs are based on expected principal payments.
(3)
Yields were calculated on a FTE basis, using applicable statutory tax rates (21.0% as of September 30, 2025).
State Street Corporation | 25
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Loans
| TABLE 21: U.S. AND NON- U.S. LOANS | |||||||||||
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||
|
Domestic
(1)
:
|
|||||||||||
| Commercial and financial: | |||||||||||
|
Fund finance
(2)
|
$ | 17,776 | $ | 16,347 | |||||||
| Leveraged loans | 2,829 | 2,742 | |||||||||
| Overdrafts | 1,497 | 1,208 | |||||||||
|
Collateralized loan obligations
|
100 | 50 | |||||||||
|
Other
(3)
|
2,556 | 3,220 | |||||||||
| Commercial real estate | 2,549 | 2,842 | |||||||||
| Total domestic | $ | 27,307 | $ | 26,409 | |||||||
|
Foreign
(1)
:
|
|||||||||||
| Commercial and financial: | |||||||||||
|
Fund finance
(2)
|
$ | 7,125 | $ | 6,601 | |||||||
| Leveraged loans | 1,114 | 1,082 | |||||||||
| Overdrafts | 1,392 | 772 | |||||||||
|
Collateralized loan obligations
|
9,722 | 8,336 | |||||||||
| Total foreign | 19,353 | 16,791 | |||||||||
|
Total loans
(4)
|
46,660 | 43,200 | |||||||||
| Allowance for loan losses | (190) | (174) | |||||||||
| Loans, net of allowance | $ | 46,470 | $ | 43,026 | |||||||
(1)
Domestic and foreign categorization is based on the borrower’s country of domicile.
(2)
Fund finance loans include primarily $12.75 billion private equity capital call finance loans, $7.48 billion loans to real money funds and $1.62 billion loans to business development companies as of September 30, 2025, compared to $11.54 billion private equity capital call finance loans, $8.09 billion loans to real money funds and $1.44 billion loans to business development companies as of December 31, 2024.
(3)
Includes $2.39 billion securities finance loans and $170 million loans to municipalities as of September 30, 2025 and $3.01 billion securities finance loans and $214 million loans to municipalities as of December 31, 2024.
(4)
As of September 30, 2025, excluding overdrafts, floating rate loans totaled $41.20 billion and fixed rate loans totaled $2.57 billion. We have entered into interest rate swap agreements to hedge the forecasted cash flows associated with EURIBOR indexed floating-rate loans. See Note 10 to the consolidated financial statements in our 2024 Form 10-K for additional details.
We had binding unfunded commitments as of September 30, 2025 and December 31, 2024 of $58 million and $104 million, respectively, to participate in syndications of leveraged loans. Additional information about these unfunded commitments is provided in Note 9 to the consolidated financial statements in this Form 10-Q.
These leveraged loans, which are primarily rated “sub-investment grade” under our internal risk-rating framework (refer to Note 4 to the consolidated financial statements in this Form 10-Q), are externally rated “BBB,” “BB” or “B,” with approximately 86% and 91% of the loans rated “BB” or “B” as of September 30, 2025 and December 31, 2024, respectively. Our investment strategy involves generally limiting our investment to larger, more liquid credits underwritten by major global financial institutions, applying our internal credit analysis process to each potential investment and diversifying our exposure by counterparty and industry segment. However, these loans have a greater exposure to credit losses relative to higher-rated loans in our portfolio.
As of September 30, 2025, the commercial real estate portfolio consists of, by asset class, approximately 41% multifamily residential, 39% office buildings and 20% other asset classes, and the portfolio does not have any construction exposure. Additionally, as of September 30, 2025, the commercial real estate loans are on properties located in multiple markets across the United States, with no significant concentrations (New York Metro is the largest concentration at approximately 19%). Despite not having a significant concentration in any one market, a material decline in real estate markets or economic conditions could negatively impact the value or performance of one or more individual properties, which could adversely impact timely loan repayment, which may result in increased provisions for credit losses. We continued to observe these effects in commercial real estate loans during the third quarter of 2025, particularly those collateralized by office buildings, resulting in additional provisions for credit losses. Were conditions, or our evaluation of conditions, in those or other markets to worsen during the remainder of 2025 or subsequent periods, we may increase our allowance for credit losses during those periods.
Additional information about all of our loan segments, as well as underlying classes, is provided in Note 4 to the consolidated financial statements in this Form 10-Q.
Allowance for Credit Losses
| TABLE 22: ALLOWANCE FOR CREDIT LOSSES | |||||||||||
| Nine Months Ended September 30, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| Allowance for credit losses: | |||||||||||
| Beginning balance | $ | 183 | $ | 150 | |||||||
|
Provision for credit losses (funded commitments)
(1)
|
49 | 69 | |||||||||
| Provisions for credit losses (unfunded commitments) | 2 | (6) | |||||||||
|
Charge-offs
(2)
|
(33) | (42) | |||||||||
| Ending balance | $ | 201 | $ | 171 | |||||||
(1)
The provision for credit losses is primarily related to commercial real estate and leveraged loans.
(2)
The charge-offs are primarily related to commercial real estate and leveraged loans in both the nine months ended September 30, 2025 and 2024.
As of September 30, 2025, the allowance for credit losses increased $18 million compared to December 31, 2024, reflecting provision for credit losses of $51 million in the nine months ended September 30, 2025, primarily reflecting the evolving macroeconomic environment and an increase in loan loss reserves associated with certain commercial real estate and leveraged loans, partially offset by charge-offs of $33 million, largely related to a commercial real estate loan and certain leveraged loans.
As of September 30, 2025, approximately $107 million of our allowance for credit losses was
State Street Corporation | 26
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
related to certain commercial real estate loans compared to $102 million as of December 31, 2024. In addition, $78 million and $68 million as of September 30, 2025 and December 31, 2024, respectively, was related to leveraged loans. The remaining $16 million and $13 million as of September 30, 2025 and December 31, 2024, respectively, was related to other loans, off-balance sheet commitments, interest-bearing deposits with banks and other financial assets held at amortized cost, including investment securities. As of both September 30, 2025 and December 31, 2024, the allowance for credit losses on loans represented 0.4% of total loans.
As our view on current and future economic conditions changes, our allowance for credit losses related to these loans may be impacted through a change to the provisions for credit losses, reflecting factors such as credit migration within our loan portfolio, as well as changes in management's economic outlook.
Additional information with respect to the allowance for credit losses is provided in Note 4 to the consolidated financial statements in this Form 10-Q.
Risk Management
In the normal course of our business activities, we are exposed to a variety of risks, some that are inherent in the financial services industry, and others that are more specific to our business activities. Our risk management framework focuses on material risks, which include the following:
•
credit and counterparty risk;
•
liquidity risk, including funding and management;
•
operational risk;
•
information technology risk;
•
resiliency risk;
•
market risk associated with our trading activities;
•
market risk associated with our non-trading activities, referred to as asset and liability management, consisting primarily of interest rate risk;
•
model risk;
•
strategic risk; and
•
reputational, compliance, fiduciary and business conduct risk.
Many of these risks, as well as certain factors underlying each of them, could affect our businesses and our consolidated financial statements, and are discussed in detail on pages 20 to 49 included under Item 1A, Risk Factors, in our 2024 Form 10-K.
For additional information about our risk management, including our risk appetite framework and risk governance committee structure, refer to pages 81 to 87 included under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, Risk Management, in our 2024 Form 10-K.
Credit and Counterparty Risk Management
We define credit risk as the risk of financial loss if a counterparty, borrower or obligor, collectively referred to as a counterparty, is either unable or unwilling to repay borrowings or settle a transaction in accordance with underlying contractual terms. We assume credit risk in our traditional non-trading lending activities, such as overdrafts, loans and contingent commitments, in our investment securities portfolio, where recourse to a counterparty exists, and in our direct and indirect trading activities, such as securities purchased under a resale agreement, principal securities lending and FX and indemnified agency securities lending. We also assume credit risk in our day-to-day treasury and securities and other settlement operations, in the form of deposit placements and other cash balances, with central banks or private sector institutions and fees receivables.
Allowance for Credit Losses
We record an allowance for credit losses related to certain on-balance sheet credit exposures, including our financial assets held at amortized cost, as well as certain off-balance sheet credit exposures, including unfunded commitments and letters of credit. Review and evaluation of the adequacy of the allowance for credit losses is ongoing throughout the year, but occurs at least quarterly, and is based, among other factors, on our evaluation of the level of risk in the portfolio and the estimated effects of our forecasts on our counterparties. We utilize multiple economic scenarios, consisting of a baseline, upside and downside scenarios, to develop our forecast of expected losses.
In the third quarter of 2025, the allowance estimate reflected the evolving macroeconomic environment and an increase in loan loss reserves associated with leveraged and commercial real estate loans. Allowance estimates are subject to uncertainties, including those inherent in our model and economic assumptions, and management may use qualitative adjustments. If future data and forecasts deviate relative to the forecasts utilized to determine our allowance for credit losses as of September 30, 2025, or if credit risk migration is higher or lower than forecasted for reasons independent of the economic forecast, our allowance for credit losses will also change.
State Street Corporation | 27
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Additional information about the allowance for credit losses is provided in Notes 3 and 4 to the consolidated financial statements in this Form 10-Q.
For additional information about our credit risk management framework, including our core policies and principles, structure and organization, credit ratings, risk parameter estimates, credit risk mitigation, credit limits, reporting, monitoring and controls, refer to pages 87 to 91 included under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, "Credit Risk Management", in our 2024 Form 10-K.
Liquidity Risk Management
Our liquidity framework contemplates areas of potential risk to our liquidity based on our activities, size and other appropriate risk-related factors. In managing liquidity risk, we employ limits, maintain established metrics and early warning indicators and perform routine stress testing to identify potential liquidity needs. This process involves the evaluation of a combination of internal and external scenarios which assist us in measuring our liquidity position and in identifying potential increases in cash needs or decreases in available sources of cash, as well as the potential impairment of our ability to access the global capital markets.
We manage our liquidity on a global, consolidated basis as well as on a stand-alone basis at the Parent Company and at certain branches and subsidiaries of State Street Bank. State Street Bank generally derives its liquidity from its customer deposit base, capital markets, wholesale funding and funding sources limited to banks, such as the federal funds market and the Federal Reserve's discount window. The Parent Company is managed to a more conservative liquidity profile, reflecting narrower market access. Additionally, the Parent Company typically holds, or has direct access to, primarily through SSIF, a direct subsidiary of the Parent Company, and the support agreement, as discussed in the "Uses of Liquidity" section of this Management's Discussion and Analysis, enough cash and equivalents intended to meet its current debt maturities and other cash needs, as well as those projected over the next 12-month period. Refer to our SPOE Strategy as discussed on pages 15 to 16, “Recovery and Resolution Planning" included under Item 1, Business, in our 2024 Form 10-K. Absent financial distress at the Parent Company, the liquid assets available at SSIF continue to be available to the Parent Company. As of September 30, 2025, we and State Street Bank had approximately $2.39 billion of senior notes or subordinated debentures outstanding that will mature in the next 12 months.
As a G-SIB, our liquidity risk management activities are subject to heightened and evolving
regulatory requirements, including interpretations of those requirements, under specific U.S. and international regulations and also resulting from published and unpublished guidance, supervisory activities, such as stress tests, resolution planning, examinations and other regulatory interactions. Satisfaction of these requirements could, in some cases, result in changes in the composition of our investment portfolio, reduced NII or NIM, a reduction in the level of certain business activities or modifications to the way in which we deliver our products and services. If we fail to meet regulatory requirements to the satisfaction of our regulators, we could receive negative regulatory stress test results, incur a resolution plan deficiency or determination of a non-credible resolution plan or otherwise receive an adverse regulatory finding. Failure to satisfy, these regulatory requirements could have a materially adverse affect on our business, financial condition or results of operations.
For additional information on our liquidity risk management, as well as liquidity metrics, refer to pages 91 to 96 included under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, Liquidity Risk Management, in our 2024 Form 10-K. For additional information on our liquidity ratios, including LCR and NSFR, refer to pages 12 and 13 included under Item 1, Business, in our 2024 Form 10-K.
Asset Liquidity
Central to the management of our liquidity is asset liquidity, which consists primarily of HQLA. HQLA is the amount of liquid assets that qualify for inclusion in the LCR. As a banking organization, we are subject to a minimum LCR under the LCR rule approved by U.S. banking regulators. The LCR is intended to promote the short-term resilience of internationally active banking organizations, like us, to improve the banking industry's ability to absorb shocks arising from market stress over a 30 calendar day period and improve the measurement and management of liquidity risk. The LCR measures an institution’s HQLA against its net cash outflows. HQLA primarily consists of unencumbered cash and certain high quality liquid securities that qualify for inclusion under the LCR rule. Net cash outflows are measured as prescribed under the LCR rule which provides a significant benefit for deposits classified as operational. We report the LCR to the Federal Reserve daily. For the quarters ended September 30, 2025 and December 31, 2024, average daily LCR for the Parent Company was 106% and 107%, respectively. The impact of higher deposits on the Parent Company's LCR is limited by a cap, known as the transferability restriction, on the HQLA from State Street Bank that can be recognized at the Parent Company as defined in the U.S. LCR Final Rule. This
State Street Corporation | 28
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
restriction limits the HQLA used in the calculation of the Parent Company's LCR to the amount of net cash outflows of its principal banking subsidiary (State Street Bank). The average HQLA, post-prescribed haircuts for the Parent Company under the LCR final rule definition was $148.27 billion for the quarter ended September 30, 2025 compared to $142.34 billion for the quarter ended December 31, 2024, primarily due to an increase in client deposits relative to the prior period. For the quarter ended September 30, 2025, the LCR for State Street Bank was approximately
142%
.
In addition, we are subject to the final rule issued by the U.S. banking agencies implementing the Basel Committee on Banking Supervision's (BCBS's) NSFR in the U.S. which became effective on July 1, 2021. The final rule requires large banking organizations to maintain an amount of available stable funding, which is a weighted measure of a company’s funding sources over a one-year time horizon, calculated by applying standardized weightings to the company’s equity and liabilities based on their expected stability. The amount of stable funding can be no less than the amount of required stable funding, which is calculated by applying standardized weightings to assets, derivatives exposures and certain other items based on their liquidity characteristics. As a U.S. G-SIB, we are required to maintain an NSFR that is equal to or greater than 100%. Pursuant to the BCBS's NSFR final rule, as a subsidiary of a U.S. G-SIB, State
Street Bank is similarly required to maintain an NSFR that is equal to or greater than 100%. As of September 30, 2025, both the Parent Company's and State Street Bank's
NSFR were above the 100% minimum NSFR requirement.
We maintained average cash balances in excess of regulatory requirements governing deposits with the Federal Reserve, the ECB and other non-U.S. central banks of approximately $83.99 billion for the quarter ended September 30, 2025, compared to $86.88 billion for the quarter ended December 31, 2024. The lower levels of average cash balances with central banks is a result of an increase in investment securities.
Liquid securities carried in our asset liquidity include securities pledged without corresponding advances from the Federal Reserve Bank of Boston (FRBB), the FHLB, and other non-U.S. central banks. State Street Bank is a member of the FHLB. These arrangements allow for advances of liquidity in varying terms against high-quality collateral, which helps facilitate asset and liability management.
Access to primary, intraday and contingent liquidity provided by these utilities is an important
source of contingent liquidity w
ith utilization subject to underlying conditions.
In addition to the investment securities included in our asset liquidity, we have other unencumbered investment securities and certain loans that we can pledge as collateral to access these various facilities. These additional assets are available sources of liquidity, although not as rapidly deployed as those included in our LCR asset liquidity.
The average fair value of total unencumbered securities was $76.49 billion for the quarter ended September 30, 2025, compared to $63.23 billion for the quarter ended December 31, 2024.
Uses of Liquidity
Significant uses of our liquidity could result from the following: withdrawals of client deposits; draw-downs by our custody clients of lines of credit; advances to clients to settle securities transactions; increases in our investment and loan portfolios; or other permitted purposes. Such circumstances would generally arise under stress conditions, such as a deterioration in credit ratings or significant changes in FX rates. A recurring use of our liquidity involves our deployment of HQLA from our investment portfolio to post collateral to financial institutions and central banks to support various business activities.
We had unfunded commitments to extend credit with gross contractual amounts totaling $35.47 billion and $34.19 billion and standby letters of credit totaling $0.69 billion and $0.91 billion as of September 30, 2025 and December 31, 2024, respectively. These amounts do not reflect the value of any collateral. As of September 30, 2025, approximately 70% of our unfunded commitments to extend credit and 45% of our standby letters of credit expire within one year. Since many of our commitments are expected to expire or renew without being drawn upon, the gross contractual amounts do not necessarily represent our future cash requirements.
Recovery and Resolution Planning
Under Section 165(d) of the Dodd-Frank Act, we are required to submit a resolution plan on a biennial basis jointly to the Federal Reserve and the FDIC (the U.S. Agencies). The purpose of our resolution plan is to describe our preferred resolution strategy and to demonstrate that we have the resources and capabilities to execute on that strategy in the event of major financial distress. Through resolution planning, we seek to maintain our role as a key infrastructure provider within the financial system, while minimizing risk to the financial system.
The U.S. Agencies' final rule from 2019 requires U.S. G-SIBs to file a full resolution plan and a targeted resolution plan on an alternating basis in the
State Street Corporation | 29
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
relevant submission years. We submitted our most recent, targeted 165(d) resolution plan timely by July 1, 2025. Our next 165(d) resolution plan submission to the U.S. Agencies is a full plan due by July 1, 2027.
State Street Bank is also required to submit to the FDIC a plan for resolution in the event of its failure, referred to as an IDI plan. We submitted our last IDI plan by December 1, 2023. The FDIC recently amended and restated its rule on IDI plans, which revised rule became effective on October 1, 2024. Under the revised rule, IDI subsidiaries of U.S. G-SIBs, such as State Street Bank, are required to file their IDI plans on a biennial basis. Our next IDI Plan is to be submitted by July 1, 2026.
Additionally, we are required to submit a recovery plan periodically to the Federal Reserve. This plan includes strategies designed to respond to stress factors at an early stage and stabilize and maintain operational continuity and market confidence.
For additional information about our recovery and resolution plan, refer to pages 15 to 16 included under Item 1, Business, "Supervision and Regulation" in our 2024 Form 10-K.
Funding
Deposits
We provide products and services including custody, accounting, administration, daily pricing, FX services, cash management, financial asset management, securities finance and investment advisory services. As a provider of these products and services, we generate client deposits, which have generally provided a stable and low-cost source of funds. As a global custodian, clients place deposits with our entities in various currencies. As of both September 30, 2025 and December 31, 2024, approximately 70% of our average total deposit balances were denominated in U.S. dollars, 15% in EUR, 5% in GBP and 10% in all other currencies.
Short-Term Funding
Our on-balance sheet liquid assets are also an integral component of our liquidity management strategy. These assets provide liquidity through maturities of the assets, but more importantly, they provide us with the ability to raise funds by pledging the securities as collateral for borrowings or through outright sales. In addition, our access to the global capital markets gives us the ability to source incremental funding from wholesale investors through relatively low-cost channels to further support business growth. As discussed earlier under “Asset Liquidity,” State Street Bank's membership in the FHLB allows for advances of liquidity with varying terms against high-quality collateral. As of both September 30, 2025 and December 31, 2024, we had
$9.82 billion of outstanding of FHLB funding. These outstanding borrowings have initial maturities of approximately 12 months and are recorded in other short-term borrowings in the consolidated statement of condition.
Short-term secured funding also comes in the form of securities lent or sold under agreements to repurchase. These transactions are short-term in nature, generally overnight and are collateralized by high-quality investment securities. These balances were $0.21 billion and $3.68 billion as of September 30, 2025 and December 31, 2024, respectively.
Long-Term Funding
We have the ability to issue debt and equity securities under our current universal shelf registration statement to meet current commitments and business needs.
On January 27, 2025, we redeemed $500 million aggregate principal amount of 4.857% fixed-to floating rate senior notes due 2026.
On February 6, 2025, we redeemed $300 million aggregate principal amount of 1.746% fixed-to floating rate senior notes due 2026.
On February 28, 2025, we issued $1,350 million aggregate principal amount of 4.536% fixed rate senior notes due 2028, $650 million aggregate principal amount of 4.729% fixed rate senior notes due 2030 and $750 million aggregate principal amount of 5.146% fixed-to-floating rate senior notes due 2036.
On March 30, 2025, we redeemed $500 million aggregate principal amount of 2.901% fixed-to-floating rate senior notes due 2026.
On April 24, 2025, we issued $300 million aggregate principal amount of floating rate senior notes due 2028, $700 million aggregate principal amount of 4.543% fixed-to-floating rate senior notes due 2028 and $1 billion aggregate principal amount of 4.834% fixed rate senior notes due 2030.
On May 18, 2025, we redeemed $1 billion aggregate principal amount of 5.104% fixed-to-floating rate senior notes due 2026.
On October 23, 2025, we issued $1 billion aggregate principal amount of 4.784% fixed-to-floating rate senior notes due 2036.
On October 29, 2025, we notified the holders of our $500 million aggregate principal amount of 5.751% fixed-to-floating rate senior notes due 2026, that we will redeem all of the notes on November 4, 2025.
State Street Corporation | 30
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Agency Credit Ratings
Our ability to maintain consistent access to liquidity is fostered by the maintenance of high investment grade ratings as measured by major credit rating agencies. Factors essential to maintaining high credit ratings include:
•
diverse and stable core earnings;
•
relative market position;
•
strong risk management;
•
strong capital ratios;
•
diverse liquidity sources, including the global capital markets and client deposits;
•
strong liquidity monitoring procedures; and
•
preparedness for current or future regulatory developments.
High ratings limit borrowing costs and enhance our liquidity by:
•
providing confidence for unsecured funding and depositors;
•
increasing the potential market for our debt and improving our ability to offer products;
•
facilitating reduced collateral haircuts in secured lending transactions; and
•
engaging in transactions in which clients value high credit ratings.
A downgrade or reduction in our credit ratings could have a material adverse effect on our liquidity by restricting our ability to access the capital markets, which could increase the related cost of funds. In turn, this could cause the sudden and large-scale withdrawal of unsecured deposits by our clients, which could lead to drawdowns of unfunded commitments to extend credit or trigger requirements under securities purchase commitments; or require additional collateral or force terminations of certain trading derivative contracts.
A majority of our derivative contracts have been entered into under bilateral agreements with counterparties who may require us to post collateral or terminate the transactions based on changes in our credit ratings. We assess the impact of these arrangements by determining the collateral that would be required assuming a downgrade by major rating agencies. The additional collateral or termination payments related to our net derivative liabilities under these arrangements that could have been called by counterparties in the event of a downgrade in our credit ratings below levels specified in the agreements is provided in Note 7 to the consolidated financial statements in this Form 10-Q. Other funding sources, such as secured financing transactions and other margin requirements, for which there are no explicit triggers, could also be adversely affected.
Operational Risk Management
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.
Volatility in the global equity and fixed income markets driven by recent policy developments and heightened geopolitical tensions (including changes in trade policy of the United States and of other nations, conflicts in Ukraine and in the Middle East and the shutdown of the U.S. federal government that started on October 1, 2025) may result in stress on the operating environment, elevate operational risk, and heighten information technology risk exposures, including cyber-threats. See also “Information Technology Risk Management” below.
For additional information about our operational risk framework, refer to pages 97 to 98 included under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, "Operational Risk Management", in our 2024 Form 10-K.
Information Technology Risk Management
We define information technology risk as the risk associated with the use, ownership, operation and adoption of information technology. Information technology risk includes risks potentially triggered by non-compliance with regulatory obligations or expectations, information security or cyber incidents, internal control and process gaps, operational events and adoption of new business technologies.
For additional information about our information technology risk framework and associated risks, refer to pages 98 to 99 included under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, "Information Technology Risk Management" in our 2024 Form 10-K, and pages 42 to 44 included under Item 1A, Risk Factors, in our 2024 Form 10-K - "Any failures of or damage to, attack on or unauthorized access to our information technology systems or facilities or disruptions to our continuous operations, including the systems, facilities or operations of third parties with which we do business, such as resulting from cyber-attacks, could result in significant costs, and reputational damage and impact our ability to conduct our business activities."
Market Risk Management
Market risk is the risk of loss that could result from broad market movements, such as changes in the general level of interest rates, credit spreads, foreign exchange rates or commodity prices. We are exposed to market risk in both our trading and certain of our non-trading, or asset and liability management, activities.
State Street Corporation | 31
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Information about the market risk associated with our trading activities is provided below under “Trading Activities.” Information about the market risk associated with our non-trading activities, which consists primarily of interest rate risk, is provided below under “Asset and Liability Management Activities.”
Trading Activities
In the conduct of our trading activities, we assume market risk, the level of which is a function of our overall risk appetite, business objectives and liquidity needs, our clients' requirements and market volatility and our execution against those factors.
As part of our trading activities, we assume positions in the foreign exchange and interest rate markets by buying and selling cash instruments and entering into derivative instruments, including foreign exchange forward contracts, foreign exchange options and interest rate swaps, interest rate forward contracts and interest rate futures. As of September 30, 2025, the notional amount of these derivative contracts was $2.97 trillion, of which $2.85 trillion was composed of foreign exchange forward, swap and spot contracts. We seek to match positions closely with the objective of mitigating related currency and interest rate risk. All foreign exchange contracts are valued daily at current market rates.
For additional information about the market risk associated with our trading activities, refer to pages 99 to 101 included under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, "Market Risk Management" in our 2024 Form 10-K.
Value-at-Risk and Stressed VaR
We use a variety of risk measurement tools and methodologies, including VaR, which is an estimate of potential loss for a given period within a stated statistical confidence interval. We use a risk measurement methodology to measure trading-related VaR daily. We have adopted standards for measuring trading-related VaR, and we maintain regulatory capital for market risk associated with our trading activities in conformity with currently applicable bank regulatory market risk requirements. Our regulatory VaR-based measure is calculated based on historical volatilities of market risk factors during a two-year observation period calibrated to a one-tail, 99% confidence interval and a ten-business-day holding period.
We calculate a stressed VaR-based measure using the same model we use to calculate VaR, but with model inputs calibrated to historical data from a
range of continuous 12-month periods that reflect significant financial stress. The stressed VaR model is designed to identify the second-worst outcome occurring in the worst continuous one-year rolling period since July 2007. This stressed VaR meets the regulatory requirement as the rolling ten-day period with an outcome that is worse than 99% of other outcomes during that 12-month period of financial stress. For each portfolio, the stress period is determined algorithmically by seeking the one-year time horizon that produces the largest ten-business-day VaR from within the available historical data. This historical data set includes the financial crisis of 2008, the highly volatile period surrounding the Eurozone sovereign debt crisis and the Standard & Poor's downgrade of U.S. Treasury debt in August 2011. As the historical data set used to determine the stress period expands over time, future market stress events will be incorporated.
For additional information about our VaR measurement tools and methodologies, refer to pages 101 to 106 included under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, "Value-at-Risk and Stressed VaR" in our 2024 Form 10-K.
Stress Testing
We have a corporate-wide stress testing program in place that incorporates techniques to measure the potential loss we could suffer in a hypothetical scenario of adverse economic and financial conditions. We also monitor concentrations of risk such as concentration by branch, risk component, and currency pairs. We conduct stress testing on a daily basis based on selected historical stress events that are relevant to our positions in order to estimate the potential impact to our current portfolio should similar market conditions recur, and we also perform stress testing as part of the Dodd-Frank Act Stress Test (DFAST) process. Stress testing is conducted, analyzed and reported at the corporate, trading desk, division and risk-factor level (for example, exchange risk, interest rate risk and volatility risk).
Stress testing results and limits are actively monitored on a daily basis by Enterprise Risk Management (ERM) and reported to the Trading and Markets Risk Committee (TMRC). Limit breaches are addressed by ERM risk managers in conjunction with the business units, escalated as appropriate, and reviewed by the TMRC if material. In addition, we have established several action triggers that prompt review by management and the implementation of a remediation plan.
State Street Corporation | 32
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Validation and Back-Testing
We perform frequent back-testing to assess the accuracy of our VaR-based model in estimating loss at the stated confidence level. This back-testing involves the comparison of estimated VaR model outputs to daily, actual profit-and-loss (P&L) outcomes observed from daily market movements. We back-test our VaR model using “clean” P&L, which excludes non-trading revenue such as fees, commissions and NII, as well as estimated revenue from intraday trading.
Our VaR definition of trading losses excludes items that are not specific to the price movement of the trading assets and liabilities themselves, such as fees, commissions, changes to reserves and gains or losses from intraday activity.
We experienced no back-testing exceptions in the quarters ended September 30, 2025, June 30, 2025 and September 30, 2024. At a 99% confidence interval, the statistical expectation for a VaR model is to witness one exception every hundred trading days (or two to three exceptions per year).
The following tables present VaR and stressed VaR associated with our trading activities for covered positions held during the quarters ended September 30, 2025, June 30, 2025 and September 30, 2024, respectively, as measured by our VaR methodology. Diversification effect in the tables below represents the difference between total VaR and the sum of the VaRs for each trading activity. This effect arises because the risks present in our trading activities are not perfectly correlated.
| TABLE 23: TEN-DAY VALUE-AT-RISK ASSOCIATED WITH TRADING ACTIVITIES FOR COVERED POSITIONS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | As of September 30, 2025 | As of June 30, 2025 | As of September 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2025 | June 30, 2025 | September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) |
Avg.
|
Max.
|
Min.
|
Avg.
|
Max.
|
Min.
|
Avg.
|
Max.
|
Min.
|
VaR
|
VaR
|
VaR
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| State Street Markets | $ | 9,963 | $ | 16,964 | $ | 4,460 | $ | 6,256 | $ | 9,700 | $ | 4,100 | $ | 13,645 | $ | 26,693 | $ | 6,659 | $ | 4,767 | $ | 4,100 | $ | 16,959 | |||||||||||||||||||||||||||||||||||||||||||||||
| Global Treasury | 4,074 | 6,071 | 3,358 | 2,688 | 5,416 | 571 | 3,094 | 6,988 | 1,020 | 3,571 | 3,448 | 1,730 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diversification | (4,645) | (8,093) | (2,595) | (2,247) | (5,387) | (101) | (2,622) | (7,020) | (1,234) | (2,494) | (2,577) | (1,766) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total VaR | $ | 9,392 | $ | 14,942 | $ | 5,223 | $ | 6,697 | $ | 9,729 | $ | 4,570 | $ | 14,117 | $ | 26,661 | $ | 6,445 | $ | 5,844 | $ | 4,971 | $ | 16,923 | |||||||||||||||||||||||||||||||||||||||||||||||
| TABLE 24: TEN-DAY STRESSED VALUE-AT-RISK ASSOCIATED WITH TRADING ACTIVITIES FOR COVERED POSITIONS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | As of September 30, 2025 | As of June 30, 2025 | As of September 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2025 | June 30, 2025 | September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) |
Avg.
|
Max.
|
Min.
|
Avg.
|
Max.
|
Min.
|
Avg.
|
Max.
|
Min.
|
VaR
|
VaR
|
VaR
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| State Street Markets | $ | 38,393 | $ | 60,032 | $ | 20,392 | $ | 45,081 | $ | 94,077 | $ | 22,994 | $ | 42,527 | $ | 72,694 | $ | 18,376 | $ | 58,451 | $ | 38,163 | $ | 72,484 | |||||||||||||||||||||||||||||||||||||||||||||||
| Global Treasury | 14,365 | 32,666 | 10,538 | 10,520 | 15,811 | 5,363 | 10,403 | 19,261 | 5,404 | 10,842 | 14,002 | 11,601 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diversification | (12,259) | (26,298) | (7,972) | (9,857) | (12,500) | (7,081) | (8,755) | (20,991) | (2,142) | (4,595) | (11,261) | (13,121) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Stressed VaR | $ | 40,499 | $ | 66,400 | $ | 22,958 | $ | 45,744 | $ | 97,388 | $ | 21,276 | $ | 44,175 | $ | 70,964 | $ | 21,638 | $ | 64,698 | $ | 40,904 | $ | 70,964 | |||||||||||||||||||||||||||||||||||||||||||||||
The three month average of our total stressed VaR-based measure was approximately $40 million for the quarter ended September 30, 2025, compared to an average of approximately $46 million for the quarter ended June 30, 2025 and $44 million for the quarter ended September 30, 2024. The decrease in the average total stressed VaR for the quarter ended September 30, 2025, compared to both of the quarters ended June 30, 2025 and September 30, 2024, was primarily attributed to a reduction in the average interest rate positions and lower observed correlations among risk factors.
The VaR-based measures as presented in the preceding tables are primarily a reflection of the overall level of market volatility and our appetite for taking market risk in our trading activities. While overall levels of volatility have varied over the historical observation periods, smaller residual market risk positions during the quarter have led to a reduction in VaR measures presented.
We have in the past and may in the future modify and adjust our models and methodologies used to calculate VaR and stressed VaR, subject to regulatory review and approval, and any future modifications and adjustments may result in changes in our VaR-based and stressed VaR-based measures.
The following tables present the VaR and stressed-VaR associated with our trading activities attributable to foreign exchange risk, interest rate risk and volatility risk as of September 30, 2025, June 30, 2025 and September 30, 2024, respectively. Diversification effect in the tables below represents the difference between total VaR and the sum of the VaRs for each trading activity. This effect arises because the risks present in our trading activities are not perfectly correlated.
State Street Corporation | 33
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
|
TABLE 25: TEN-DAY VaR ASSOCIATED WITH TRADING ACTIVITIES BY RISK FACTOR
(1)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2025 | June 30, 2025 | September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||
|
(In thousands)
|
Foreign Exchange Risk
|
Interest Rate Risk
|
Volatility Risk |
Foreign Exchange Risk
|
Interest Rate Risk
|
Volatility Risk | Foreign Exchange Risk | Interest Rate Risk | Volatility Risk | ||||||||||||||||||||||||||||||||||||||||||||
|
By component:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
| State Street Markets | $ | 2,054 | $ | 5,199 | $ | 347 | $ | 2,230 | $ | 4,689 | $ | 345 | $ | 3,662 | $ | 16,002 | $ | 515 | |||||||||||||||||||||||||||||||||||
|
Global Treasury
|
3,380 | 1,027 | — | 3,346 | 870 | — | 335 | 1,658 | — | ||||||||||||||||||||||||||||||||||||||||||||
|
Diversification
|
(2,126) | (1,218) | — | (2,737) | (892) | — | (458) | (1,770) | — | ||||||||||||||||||||||||||||||||||||||||||||
|
Total VaR
|
$ | 3,308 | $ | 5,008 | $ | 347 | $ | 2,839 | $ | 4,667 | $ | 345 | $ | 3,539 | $ | 15,890 | $ | 515 | |||||||||||||||||||||||||||||||||||
|
TABLE 26: TEN-DAY STRESSED VaR ASSOCIATED WITH TRADING ACTIVITIES BY RISK FACTOR
(1)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2025 | June 30, 2025 | September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||
|
(In thousands)
|
Foreign Exchange Risk
|
Interest Rate Risk
(2)
|
Volatility Risk |
Foreign Exchange Risk
|
Interest Rate Risk
|
Volatility Risk |
Foreign Exchange Risk
|
Interest Rate Risk
|
Volatility Risk | ||||||||||||||||||||||||||||||||||||||||||||
|
By component:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
| State Street Markets | $ | 5,885 | $ | 73,357 | $ | 566 | $ | 5,425 | $ | 38,025 | $ | 706 | $ | 8,381 | $ | 92,298 | $ | 913 | |||||||||||||||||||||||||||||||||||
|
Global Treasury
|
10,948 | 3,566 | — | 13,969 | 4,158 | — | 9,858 | 5,679 | — | ||||||||||||||||||||||||||||||||||||||||||||
|
Diversification
|
(8,934) | 125 | — | (7,068) | (3,789) | — | (8,971) | (4,271) | — | ||||||||||||||||||||||||||||||||||||||||||||
|
Total Stressed VaR
|
$ | 7,899 | $ | 77,048 | $ | 566 | $ | 12,326 | $ | 38,394 | $ | 706 | $ | 9,268 | $ | 93,706 | $ | 913 | |||||||||||||||||||||||||||||||||||
(1)
For purposes of risk attribution by component, foreign exchange refers only to the risk from market movements in period-end rates. Forwards, futures, options and swaps with maturities greater than period-end have embedded interest rate risk that is captured by the measures used for interest rate risk. Accordingly, the interest rate risk embedded in these foreign exchange instruments is included in the interest rate risk component.
(2)
On September 30, 2025, the stressed-VaR calculated on the combined interest rate exposures of our two businesses slightly exceeded the sum of their individual stressed-VaRs, as the model projected simultaneous additive losses across both portfolios.
Asset and Liability Management Activities
The primary objective of asset and liability management is to provide sustainable NII under varying economic conditions, while protecting the economic value of the assets and liabilities carried on our consolidated statement of condition from the adverse effects of changes in interest rates. While many market factors affect the level of NII and the economic value of our assets and liabilities, one of the most significant factors is our exposure to movements in interest rates. Most of our NII is earned from the investment of client deposits generated by our businesses. We invest these client deposits in assets that conform generally to the liquidity characteristics of our balance sheet liabilities, as well as the currency composition of our significant non-U.S. dollar denominated client deposits.
We quantify NII sensitivity using an earnings simulation model that includes our expectations for new business growth, changes in balance sheet mix and investment portfolio positioning. This measure compares our baseline view of NII over a 12-month horizon, based on our internal forecast of interest rates, to a wide range of rate shocks. Our baseline view of NII is updated on a regular basis. Table 27, Key Interest Rates for Baseline Forecasts, presents the spot and 12-month forward rates used in our baseline forecasts at September 30, 2025 and 2024. Our baseline rate forecast as of September 30, 2025 was generally consistent with market expectations for global central bank rate actions at that point in time.
| TABLE 27: KEY INTEREST RATES FOR BASELINE FORECASTS | |||||||||||||||||||||||||||||||||||
| September 30, 2025 | September 30, 2024 | ||||||||||||||||||||||||||||||||||
| Fed Funds Target |
ECB Target
(1)
|
10-Year Treasury | Fed Funds Target |
ECB Target
(1)
|
10-Year Treasury | ||||||||||||||||||||||||||||||
| Spot rates | 4.25 | % | 2.00 | % | 4.15 | % | 5.00 | % | 3.50 | % | 3.78 | % | |||||||||||||||||||||||
| 12-month forward rates | 3.00 | 2.00 | 4.18 | 3.25 | 2.25 | 3.74 | |||||||||||||||||||||||||||||
(1)
European Central Bank deposit facility rate.
In Table 28: Net Interest Income Sensitivity, we report the expected change in NII over the next 12 months from instantaneous 100 basis point shocks to various tenors on the yield curve relative to our baseline rate forecast, including the impacts from U.S. and non-U.S. rates. Each scenario assumes no management action is taken to mitigate the adverse effects of changes in interest rates on our financial performance. While investment securities balances and composition can fluctuate with the level of rates as prepayment assumptions change, for purposes of this analysis our deposit balances and mix are assumed to remain consistent with the baseline forecast which assumes client deposit balance rotation, including reductions in non-interest-bearing deposit balances. The results of these scenarios should not be extrapolated for other (e.g., more severe) shocks as the impact of interest rate shocks may not be linear. In lower rate scenarios, the full impact of the shock is realized for all currencies even if the result is negative interest rates.
State Street Corporation | 34
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
| TABLE 28: NET INTEREST INCOME SENSITIVITY | |||||||||||||||||||||||||||||||||||
| September 30, 2025 | September 30, 2024 | ||||||||||||||||||||||||||||||||||
| (In millions) | U.S. Dollar | All Other Currencies | Total | U.S. Dollar | All Other Currencies | Total | |||||||||||||||||||||||||||||
| Rate change: | Benefit (Exposure) | Benefit (Exposure) | |||||||||||||||||||||||||||||||||
| Parallel shifts: | |||||||||||||||||||||||||||||||||||
| +100 bps shock | $ | 73 | $ | 210 | $ | 283 | $ | 17 | $ | 303 | $ | 320 | |||||||||||||||||||||||
| -100 bps shock | (78) | (187) | (265) | (20) | (262) | (282) | |||||||||||||||||||||||||||||
| Steeper yield curve: | |||||||||||||||||||||||||||||||||||
|
+100 bps shift in long-end rates
(1)
|
18 | 22 | 40 | — | 16 | 16 | |||||||||||||||||||||||||||||
|
-100 bps shift in short-end rates
(1)
|
(51) | (165) | (216) | (12) | (247) | (259) | |||||||||||||||||||||||||||||
| Flatter yield curve: | |||||||||||||||||||||||||||||||||||
|
+100 bps shift in short-end rates
(1)
|
51 | 188 | 239 | 17 | 287 | 304 | |||||||||||||||||||||||||||||
|
-100 bps shift in long-end rates
(1)
|
(31) | (22) | (53) | (7) | (16) | (23) | |||||||||||||||||||||||||||||
(1)
The short-end is 0-3 months. The long-end is 5 years and above. Interim term points are interpolated.
Our overall balance sheet, including all currencies, continues to be asset sensitive with an NII benefit in higher rate scenarios and NII exposure in lower rate scenarios, primarily driven by our sensitivities on the short-end of the yield curve. Compared to September 30, 2024, our USD NII asset sensitivity has increased mainly due to higher client deposits and a lower investment portfolio duration. Our non-USD NII asset sensitivity to short-end rate changes has reduced compared to September 30, 2024, primarily due to interest rate hedging activity.
For additional information about our Asset and Liability Management Activities, refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations, “Risk Management”.
Model Risk Management
The use of models is widespread throughout the financial services industry, with large and complex organizations relying on sophisticated models to support numerous aspects of their financial decision making. The models contemporaneously represent both a significant advancement in financial management and a source of risk. In large banking organizations like ours, model results influence business decisions, and model failure could have a harmful effect on our financial performance. As a result, the Model Risk Management Framework seeks to mitigate our model risk.
For additional information about our model risk management framework, including our governance and model validation, refer to pages 106 to 107 included under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, "Model Risk Management", in our 2024 Form 10-K.
Strategic Risk Management
We define strategic risk as the current or prospective impact on earnings or capital arising from adverse business decisions, improper implementation of strategic initiatives, or lack of responsiveness to industry-wide changes. Strategic risks are influenced by changes in the competitive environment; decline in market performance or changes in our business activities; and the potential secondary impacts of reputational risks, not already captured as market, interest rate, credit, operational, model or liquidity risks. We incorporate strategic risk into our assessment of our business plans and risk and capital management processes. Management of strategic risk is an integral component of all aspects of our business.
Separating the effects of a potential material adverse event into operational and strategic risk is sometimes difficult. For instance, the direct financial impact of an unfavorable event in the form of fines or penalties would be classified as an operational risk loss, while the impact on our reputation and consequently the potential loss of clients and corresponding decline in revenue would be classified as a strategic risk loss. An additional example of strategic risk is the integration of a major acquisition. Failure to successfully integrate the operations of an acquired business, and the resultant inability to retain clients and the associated revenue, would be classified as a loss due to strategic risk.
Strategic risk is managed with a long-term focus. Techniques for its assessment and management include the development of business plans, which are subject to review and challenge from senior management and the Board, as well as a formal review and approval process for all new business and product proposals. The potential impact of the various elements of strategic risk is difficult to quantify with any degree of precision. We use a combination of historical earnings volatility, scenario analysis, stress-testing and management judgment to help assess the potential effect on us attributable to strategic risk. Management and control of strategic risks are generally the responsibility of the business units, with oversight from the control functions, as part of their overall strategic planning and internal risk management processes.
State Street Corporation | 35
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Capital
Managing our capital involves evaluating whether our actual and projected levels of capital are commensurate with our risk profile, are in compliance with all applicable regulatory requirements and are sufficient to provide us with the financial flexibility to undertake future strategic business initiatives. We assess capital adequacy based on relevant regulatory capital requirements, as well as our own internal capital goals, targets and other relevant metrics.
Our designation as a G-SIB is based on a number of factors, as evaluated by banking regulators, and requires us to maintain an additional capital surcharge above the minimum capital ratios set forth in the Basel III final rule. Further, like all other U.S. G-SIBs, we are currently subject to a 2% SLR buffer at the holding company and a 3% buffer at State Street Bank, in addition to the required minimum of 3.0% under the Basel III final rule. If we fail to exceed any regulatory buffer or surcharge, we will be subject to increased restrictions (depending upon the extent of the shortfall) regarding capital distributions and discretionary executive bonus payments.
Not all of our competitors have similarly been designated as systemically important nor are all of them subject to the same degree of regulation as a bank or financial holding company, and therefore some of our competitors may not be subject to the same capital, liquidity and other regulatory requirements.
For additional information about our capital, refer to pages 108 to 117 included under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, in our 2024 Form 10-K.
Regulatory Capital
We and State Street Bank are subject to the U.S. Basel III framework. We are also subject to the final market risk capital rule issued by the U.S. Agencies.
The Basel III rule provides two frameworks for monitoring capital adequacy: the “standardized approach" and the “advanced approaches", applicable to advanced approaches banking organizations, like us. The standardized approach prescribes standardized calculations for credit risk RWA, including specified risk weights for on and certain off-balance sheet exposures. The advanced approaches consist of the Advanced Internal Ratings-Based Approach used for the calculation of credit risk RWA, and the Advanced Measurement Approach used for the calculation of operational risk RWA.
As required by the Dodd-Frank Act enacted in 2010, we and State Street Bank, as advanced approaches banking organizations, are subject to a
"capital floor," also referred to as the Collins Amendment, in the assessment of our regulatory capital adequacy, such that our risk-based capital ratios for regulatory assessment purposes are the lower of each ratio calculated under the advanced approaches and the standardized approach. Under the advanced approaches, we and State Street Bank are subject to a 2.5% CCB requirement, plus any applicable countercyclical capital buffer requirement, which is currently set at 0%. Under the standardized approach, State Street Bank is subject to the same CCB and countercyclical capital buffer requirements, but for State Street, the 2.5% CCB requirement is replaced by the SCB requirement according to the SCB rule issued in 2020. In addition, State Street is subject to a G-SIB surcharge.
The SCB replaced, under the standardized approach, the CCB with a buffer calculated as the difference between the institution’s starting and lowest projected CET1 ratio under the DFAST severely adverse scenario plus planned common stock dividend payments (as a percentage of RWA) from the fourth through seventh quarter of the DFAST planning horizon. The SCB requirement can be no less than 2.5% of RWA. Breaching the SCB or other regulatory buffer or surcharge will limit a banking organization’s ability to make capital distributions and discretionary bonus payments to executive officers.
Our SCB requirement remains at 2.5% for the period from October 1, 2025, through September 30, 2026, based on the results of the 2025 supervisory stress test.
Our minimum risk-based capital ratios as of January 1, 2025 include a CCB of 2.5% and a SCB of 2.5% for the advanced approaches and standardized approach, respectively, a G-SIB surcharge of 1.0%, and a countercyclical buffer of 0.0%. This results in minimum risk-based ratios of 8.0% for the Common Equity Tier 1 (CET1) capital ratio, 9.5% for the tier 1 capital ratio, and 11.5% for the total capital ratio.
Our current G-SIB surcharge, through December 31, 2025, is 1.0%. Based upon calculations using data as of December 31, 2024, our surcharge will remain at 1.0% through December 31, 2026.
To maintain the status of the Parent Company as a financial holding company, we and our IDI subsidiaries are required, among other requirements, to be "well capitalized" as defined by Regulation Y and Regulation H.
The market risk capital rule requires us to use internal models to calculate daily measures of VaR, which reflect general market risk for certain of our trading positions defined by the rule as “covered positions,” as well as stressed-VaR measures to supplement the VaR measures. The rule also
State Street Corporation | 36
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
requires a public disclosure composed of qualitative and quantitative information about the market risk associated with our trading activities and our related VaR and stressed-VaR measures. The qualitative and quantitative information required by the rule is provided under "Market Risk Management" included in this Management's Discussion and Analysis.
On July 27, 2023, the U.S. Agencies issued a proposed rule to implement the Basel III endgame agreement (2023 Basel III Endgame Proposal) for large banks, and separately proposed revisions to the U.S. G-SIB capital surcharge framework (2023 G-SIB Surcharge Proposal). The 2023 Basel III Endgame Proposal would, among other things, eliminate the advanced approaches for monitoring risk-based capital adequacy in favor of a new standardized expanded risk-based approach that includes new standardized approaches for credit risk, operational risk and CVA risk RWA components, and would also replace the existing market risk rule with the new fundamental review of the trading book framework. The G-SIB Surcharge Proposal would, among other things, measure the G-SIB surcharge in 0.1% increments as opposed to the 0.5% increments that currently apply.
Recent public statements by U.S. banking officials indicate that the 2023 Basel III Endgame Proposal and 2023 G-SIB Surcharge Proposal are under reconsideration. However, the timing and content of any potential re-proposal, and the effects of any re-proposal on us, remain uncertain at this stage.
On April 17, 2025, the Fed issued a proposed rule to reduce volatility in the stress capital buffer requirement, primarily through the averaging of the decline in a firm’s CET1 capital over a two-year horizon (current and prior year). The proposal would also extend the annual effective date of each firm’s stress capital buffer requirement by one quarter, from October 1 to January 1. The proposal was intended to be effective as of the 2025 stress testing cycle, but has yet to be finalized. We do not expect the proposal to materially impact our stress capital buffer requirement, which is currently at the 2.5% floor.
On June 25, 2025, the U.S Agencies jointly issued a proposed rule to recalibrate the eSLR buffer requirements applicable to G-SIBs and their depository institution subsidiaries. The proposal would apply an eSLR buffer at the Bank Holding Company and subsidiary depository institution level equal to 50% of the G-SIB’s Method 1 surcharge. The proposal would also make conforming changes to the requirements for TLAC and LTD.
Changes to the eSLR are not expected to materially impact our total leverage-based capital, which already benefits from the custody bank exemption for central bank placements in the SLR denominator from Section 402 of the Economic Growth Act (January 2020). Changes to the TLAC and LTD requirement may have limited implications for us, but, are not expected to change our management of TLAC or LTD.
For additional information about our regulatory capital, refer to pages 109 to 115 included under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, in our 2024 Form 10-K.
State Street Corporation | 37
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The following table presents the regulatory capital structure and related regulatory capital ratios for us and State Street Bank as of the dates indicated. We are subject to the more stringent of the risk-based capital ratios calculated under the standardized approach and those calculated under the advanced approaches in the assessment of our capital adequacy under applicable bank regulatory standards.
| TABLE 29: REGULATORY CAPITAL STRUCTURE AND RELATED REGULATORY CAPITAL RATIOS | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| State Street Corporation | State Street Bank | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | Basel III Advanced Approaches September 30, 2025 | Basel III Standardized Approach September 30, 2025 | Basel III Advanced Approaches December 31, 2024 | Basel III Standardized Approach December 31, 2024 | Basel III Advanced Approaches September 30, 2025 | Basel III Standardized Approach September 30, 2025 | Basel III Advanced Approaches December 31, 2024 | Basel III Standardized Approach December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||
| Common shareholders' equity: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock and related surplus | $ | 11,208 | $ | 11,208 | $ | 11,226 | $ | 11,226 | $ | 13,333 | $ | 13,333 | $ | 13,333 | $ | 13,333 | |||||||||||||||||||||||||||||||||||||
| Retained earnings | 30,938 | 30,938 | 29,582 | 29,582 | 16,509 | 16,509 | 15,977 | 15,977 | |||||||||||||||||||||||||||||||||||||||||||||
| Accumulated other comprehensive income (loss) | (1,172) | (1,172) | (2,100) | (2,100) | (946) | (946) | (1,805) | (1,805) | |||||||||||||||||||||||||||||||||||||||||||||
| Treasury stock, at cost | (16,891) | (16,891) | (16,198) | (16,198) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Total | 24,083 | 24,083 | 22,510 | 22,510 | 28,896 | 28,896 | 27,505 | 27,505 | |||||||||||||||||||||||||||||||||||||||||||||
| Regulatory capital adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and other intangible assets, net of associated deferred tax liabilities | (8,401) | (8,401) | (8,320) | (8,320) | (8,128) | (8,128) | (8,054) | (8,054) | |||||||||||||||||||||||||||||||||||||||||||||
|
Other adjustments
(1)
|
(526) | (526) | (391) | (391) | (416) | (416) | (278) | (278) | |||||||||||||||||||||||||||||||||||||||||||||
| Common equity tier 1 capital | 15,156 | 15,156 | 13,799 | 13,799 | 20,352 | 20,352 | 19,173 | 19,173 | |||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock | 3,559 | 3,559 | 2,816 | 2,816 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Tier 1 capital | 18,715 | 18,715 | 16,615 | 16,615 | 20,352 | 20,352 | 19,173 | 19,173 | |||||||||||||||||||||||||||||||||||||||||||||
| Qualifying subordinated long-term debt | 1,876 | 1,876 | 1,861 | 1,861 | 526 | 526 | 530 | 530 | |||||||||||||||||||||||||||||||||||||||||||||
| Adjusted allowance for credit losses | 17 | 201 | — | 183 | 18 | 201 | — | 183 | |||||||||||||||||||||||||||||||||||||||||||||
| Total capital | $ | 20,608 | $ | 20,792 | $ | 18,476 | $ | 18,659 | $ | 20,896 | $ | 21,079 | $ | 19,703 | $ | 19,886 | |||||||||||||||||||||||||||||||||||||
| Risk-weighted assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Credit risk
(2)
|
$ | 62,768 | $ | 132,268 | $ | 63,252 | $ | 124,281 | $ | 58,880 | $ | 129,216 | $ | 57,883 | $ | 121,785 | |||||||||||||||||||||||||||||||||||||
|
Operational risk
(3)
|
51,063 | NA | 49,350 | NA | 49,438 | NA | 47,538 | NA | |||||||||||||||||||||||||||||||||||||||||||||
| Market risk | 1,900 | 1,900 | 2,000 | 2,000 | 1,900 | 1,900 | 2,000 | 2,000 | |||||||||||||||||||||||||||||||||||||||||||||
| Total risk-weighted assets | $ | 115,731 | $ | 134,168 | $ | 114,602 | $ | 126,281 | $ | 110,218 | $ | 131,116 | $ | 107,421 | $ | 123,785 | |||||||||||||||||||||||||||||||||||||
| Capital Ratios: |
2025 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge
(4)
|
2024 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge
(4)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Common equity tier 1 capital | 8.0 | % | 8.0 | % | 13.1 | % | 11.3 | % | 12.0 | % | 10.9 | % | 18.5 | % | 15.5 | % | 17.8 | % | 15.5 | % | |||||||||||||||||||||||||||||||||
| Tier 1 capital | 9.5 | 9.5 | 16.2 | 13.9 | 14.5 | 13.2 | 18.5 | 15.5 | 17.8 | 15.5 | |||||||||||||||||||||||||||||||||||||||||||
| Total capital | 11.5 | 11.5 | 17.8 | 15.5 | 16.1 | 14.8 | 19.0 | 16.1 | 18.3 | 16.1 | |||||||||||||||||||||||||||||||||||||||||||
(1)
Other adjustments within CET1 capital primarily include disallowed deferred tax assets, cash flow hedges that are not recognized at fair value on the balance sheet, and the overfunded portion of our defined benefit pension plan obligation net of associated deferred tax liabilities.
(2)
Under the advanced approaches, credit risk RWA includes a CVA which reflects the risk of potential fair value adjustments for credit risk reflected in our valuation of over-the-counter derivative contracts. We used a simple CVA approach in conformity with the Basel III advanced approaches.
(3)
Under the current advanced approaches rules and regulatory guidance concerning operational risk models, RWA attributable to operational risk can vary substantially from period-to-period, without direct correlation to the effects of a particular loss event on our results of operations and financial condition and impacting dates and periods that may differ from the dates and periods as of and during which the loss event is reflected in our financial statements, with the timing and categorization dependent on the processes for model updates and, if applicable, model revalidation and regulatory review and related supervisory processes. An individual loss event can have a significant effect on the output of our operational RWA under the advanced approaches depending on the severity of the loss event and its categorization among the seven Basel-defined UOMs.
(4)
Minimum requirements include a CCB of 2.5% and a SCB of 2.5% for the advanced approaches and the standardized approach, respectively, a G-SIB surcharge of 1.0% and a countercyclical buffer of 0%. Our SCB requirement remains at 2.5% for the period from October 1, 2025, through September 30, 2026, based on the results of the 2025 supervisory stress test.
NA
Not applicable
Our CET1 capital increased $1.36 billion as of September 30, 2025, compared to December 31, 2024, under both the advanced approaches and standardized approach, primarily due to an increase in net income and improved AOCI, partially offset by dividends declared and common share repurchases.
Our Tier 1 capital increased $2.10 billion as of September 30, 2025, compared to December 31, 2024, under both the advanced approaches and standardized approach, due to the increase in CET1 capital and net issuance of preferred stock in the first quarter of 2025.
Our Tier 2 capital remained flat as of September 30, 2025, compared to December 31, 2024, under both the advanced approaches and standardized approach.
State Street Corporation | 38
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Our total capital increased $2.13 billion as of September 30, 2025, compared to December 31, 2024, under both the advanced approaches and standardized approach, primarily due to the increase in CET1 capital and net issuance of preferred stock in the first quarter of 2025.
The table below presents a roll-forward of CET1 capital, Tier 1 capital and total capital for the nine months ended September 30, 2025 and for the year ended December 31, 2024.
| TABLE 30: CAPITAL ROLL-FORWARD | |||||||||||||||||||||||
| (In millions) | Basel III Advanced Approaches September 30, 2025 | Basel III Standardized Approach September 30, 2025 | Basel III Advanced Approaches December 31, 2024 | Basel III Standardized Approach December 31, 2024 | |||||||||||||||||||
| Common equity tier 1 capital: | |||||||||||||||||||||||
| Common equity tier 1 capital balance, beginning of period | $ | 13,799 | $ | 13,799 | $ | 12,971 | $ | 12,971 | |||||||||||||||
| Net income | 2,198 | 2,198 | 2,687 | 2,687 | |||||||||||||||||||
| Changes in treasury stock, at cost | (693) | (693) | (1,173) | (1,173) | |||||||||||||||||||
| Dividends declared | (841) | (841) | (1,062) | (1,062) | |||||||||||||||||||
| Goodwill and other intangible assets, net of associated deferred tax liabilities | (81) | (81) | 150 | 150 | |||||||||||||||||||
|
Accumulated other comprehensive income
(1)
|
928 | 928 | 254 | 254 | |||||||||||||||||||
|
Other adjustments
(1)
|
(154) | (154) | (28) | (28) | |||||||||||||||||||
| Changes in common equity tier 1 capital | 1,357 | 1,357 | 828 | 828 | |||||||||||||||||||
| Common equity tier 1 capital balance, end of period | 15,156 | 15,156 | 13,799 | 13,799 | |||||||||||||||||||
| Additional tier 1 capital: | |||||||||||||||||||||||
| Tier 1 capital balance, beginning of period | 16,615 | 16,615 | 14,947 | 14,947 | |||||||||||||||||||
| Changes in common equity tier 1 capital | 1,357 | 1,357 | 828 | 828 | |||||||||||||||||||
| Net issuance (redemption) of preferred stock | 743 | 743 | 840 | 840 | |||||||||||||||||||
| Changes in tier 1 capital | 2,100 | 2,100 | 1,668 | 1,668 | |||||||||||||||||||
| Tier 1 capital balance, end of period | 18,715 | 18,715 | 16,615 | 16,615 | |||||||||||||||||||
| Tier 2 capital: | |||||||||||||||||||||||
| Tier 2 capital balance, beginning of period | 1,861 | 2,044 | 1,870 | 2,020 | |||||||||||||||||||
|
Net issuance and changes in long-term debt qualifying as tier 2 capital
|
15 | 15 | (9) | (9) | |||||||||||||||||||
| Changes in adjusted allowance for credit losses | 17 | 18 | — | 33 | |||||||||||||||||||
| Changes in tier 2 capital | 32 | 33 | (9) | 24 | |||||||||||||||||||
| Tier 2 capital balance, end of period | 1,893 | 2,077 | 1,861 | 2,044 | |||||||||||||||||||
| Total capital: | |||||||||||||||||||||||
| Total capital balance, beginning of period | 18,476 | 18,659 | 16,817 | 16,967 | |||||||||||||||||||
| Changes in tier 1 capital | 2,100 | 2,100 | 1,668 | 1,668 | |||||||||||||||||||
| Changes in tier 2 capital | 32 | 33 | (9) | 24 | |||||||||||||||||||
| Total capital balance, end of period | $ | 20,608 | $ | 20,792 | $ | 18,476 | $ | 18,659 | |||||||||||||||
(1)
Accumulated other comprehensive income includes losses on cash flow hedges where the hedged exposures are not recognized at fair value on the balance sheet, which, under the Capital Rule, must be excluded from CET1 capital. This adjustment is captured in the Other Adjustments line.
The following table presents a roll-forward of the Basel III advanced and standardized approaches RWA for the nine months ended September 30, 2025 and for the year ended December 31, 2024.
| TABLE 31: ADVANCED & STANDARDIZED APPROACHES RISK-WEIGHTED ASSETS ROLL-FORWARD | |||||||||||||||||||||||
| (In millions) | Basel III Advanced Approaches September 30, 2025 | Basel III Advanced Approaches December 31, 2024 | Basel III Standardized Approach September 30, 2025 | Basel III Standardized Approach December 31, 2024 | |||||||||||||||||||
| Total risk-weighted assets, beginning of period | $ | 114,602 | $ | 107,453 | $ | 126,281 | $ | 111,703 | |||||||||||||||
| Changes in credit risk-weighted assets: | |||||||||||||||||||||||
| Net increase (decrease) in investment securities-wholesale | 177 | (585) | 390 | (1,000) | |||||||||||||||||||
| Net increase (decrease) in loans and overdrafts | 216 | 919 | 2,300 | 2,241 | |||||||||||||||||||
| Net increase (decrease) in securitization exposures | 608 | 628 | 574 | 592 | |||||||||||||||||||
| Net increase (decrease) in repo-style transaction exposures | 341 | (558) | 7,919 | 2,968 | |||||||||||||||||||
|
Net increase (decrease) in over-the-counter derivatives exposures
(1)
|
(1,524) | 2,595 | (6,240) | 10,778 | |||||||||||||||||||
|
Net increase (decrease) in all other
(2)
|
(302) | (957) | 3,044 | (526) | |||||||||||||||||||
| Net increase (decrease) in credit risk-weighted assets | (484) | 2,042 | 7,987 | 15,053 | |||||||||||||||||||
| Net increase (decrease) in market risk-weighted assets | (100) | (475) | (100) | (475) | |||||||||||||||||||
| Net increase (decrease) in operational risk-weighted assets | 1,713 | 5,582 | NA | NA | |||||||||||||||||||
| Total risk-weighted assets, end of period | $ | 115,731 | $ | 114,602 | $ | 134,168 | $ | 126,281 | |||||||||||||||
(1)
Under the advanced approaches, includes CVA RWA.
(2)
Includes assets not in a definable category, non-material portfolio, cleared transactions, other wholesale, cash and due from banks, interest-bearing deposits with banks, and equity exposures.
NA
Not applicable
State Street Corporation | 39
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
As of September 30, 2025, total advanced approaches RWA increased $1.13 billion compared to December 31, 2024, mainly due to higher operational risk RWA, higher securitization RWA driven by higher balances, and higher repo-style transaction RWA driven by increased volumes, partially offset by lower derivatives RWA driven by lower market volatility.
As of September 30, 2025, total standardized approach RWA increased $7.89 billion compared to December 31, 2024, mainly reflecting higher repo-style transaction RWA driven by increased volumes, higher other RWA driven by increased cash balances, and higher loans and overdrafts RWA driven by increased balances, partially offset by lower derivatives RWA driven by lower market volatility.
The regulatory capital ratios as of September 30, 2025, presented in Table 29: Regulatory Capital Structure and Related Regulatory Capital Ratios, are calculated under the advanced approaches and standardized approach in conformity with the Basel III final rule. The advanced approaches-based ratios reflect calculations and determinations with respect to our capital and related matters as of September 30, 2025, based on our internal and external data, quantitative formulae, statistical models, historical correlations and assumptions, collectively referred to as “advanced systems,” in effect and used by us for those purposes as of the time we first reported such ratios in a quarterly report on Form 10-Q or an annual report on Form 10-K. Significant components of these advanced systems involve the exercise of judgment by us and our regulators, and our advanced systems may not, individually or collectively, precisely represent or calculate the scenarios, circumstances, outputs or other results for which they are designed or intended.
Our advanced systems are subject to update and periodic revalidation in response to changes in our business activities and our historical experiences, forces and events experienced by the market broadly or by individual financial institutions, changes in regulations and regulatory interpretations and other factors, and are also subject to continuing regulatory review and approval. For example, a significant operational loss experienced by another financial institution, even if we do not experience a related loss, could result in a material change in the output of our advanced systems and a corresponding material change in our risk exposures, our total RWA and our capital ratios compared to prior periods. An operational loss that we experience could also result in a material change in our capital requirements for operational risk under the advanced approaches, depending on the severity of the loss event, its characterization among the seven Basel-defined UOM, and the stability of the distributional approach
for a particular UOM, and without direct correlation to the effects of the loss event, or the timing of such effects, on our results of operations.
Due to the influence of changes in these advanced systems, whether resulting from changes in data inputs, regulation or regulatory supervision or interpretation, specific to us or market activities or experiences or other updates or factors, we expect that our advanced systems and our capital ratios calculated in conformity with the Basel III final rule will change and may be volatile over time, and that those latter changes or volatility could be material as calculated and measured from period to period. The full effects of the Basel III final rule on us and State Street Bank are therefore subject to further evaluation and also to further regulatory guidance, action or rule-making.
Tier 1 and Supplementary Leverage Ratios
We are subject to a minimum Tier 1 leverage ratio and a SLR. The Tier 1 leverage ratio is based on Tier 1 capital and adjusted quarterly average on-balance sheet assets. The SLR is based on total leverage exposure and, includes certain off-balance sheet exposures not used in the calculation of the minimum Tier 1 leverage ratio.
We must maintain a minimum Tier 1 leverage ratio of 4%. Our Tier 1 leverage increased to 5.6% as of September 30, 2025, compared to 5.2% as of December 31, 2024, mainly driven by capital generated from earnings and higher preferred equity, partially offset by higher average balance sheet levels and continued capital return.
As a U.S. G-SIB, we are subject to a minimum SLR of 3%, and are also subject to enhanced supplementary leverage (eSLR) standards, comprising a 2% SLR buffer at the holding company (in order to avoid limitations on distributions to shareholders and discretionary bonus payments to certain executives) and a 3% SLR buffer at State Street Bank (in order to be considered "well capitalized" under the Federal Reserve's prompt corrective action framework). If we do not maintain the 2% buffer at the holding company, limitations on these distributions and discretionary bonus payments would be increasingly stringent based upon the extent of the shortfall.
On June 25, 2025, the U.S. Agencies jointly issued a proposed rule to amend the calibration of the eSLR for U.S. G-SIBs and their IDI subsidiaries. The proposed rule would replace the current eSLR buffer of 2% at the holding company and 3% at State Street Bank (for State Street Bank to be considered "well capitalized"), with an eSLR buffer for both bank holding companies and IDI subsidiaries calibrated at 50% of a G-SIBs Method 1 capital surcharge, while
State Street Corporation | 40
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
also making conforming changes to the TLAC and LTD requirements.
Changes to the eSLR are not expected to materially impact our total leverage-based capital, which already benefits from the custody bank exemption for central bank placements in the SLR denominator from Section 402 of the Economic Growth Act (January 2020). Changes to the TLAC and LTD requirement may have limited implications for us, but, are not expected to change our management of TLAC or LTD.
| TABLE 32: TIER 1 AND SUPPLEMENTARY LEVERAGE RATIOS | |||||||||||
| (Dollars in millions) | September 30, 2025 | December 31, 2024 | |||||||||
| State Street: | |||||||||||
| Tier 1 capital | $ | 18,715 | $ | 16,615 | |||||||
| Average assets | 340,480 | 327,181 | |||||||||
| Less: adjustments for deductions from tier 1 capital and other | (8,927) | (8,711) | |||||||||
| Adjusted average assets for tier 1 leverage ratio | 331,553 | 318,470 | |||||||||
| Additional SLR exposure | 44,873 | 38,659 | |||||||||
| Adjustments for deductions of qualifying central bank deposits | (84,965) | (87,496) | |||||||||
| Total assets for SLR | $ | 291,461 | $ | 269,633 | |||||||
|
Tier 1 leverage ratio
(1)
|
5.6 | % | 5.2 | % | |||||||
| Supplementary leverage ratio | 6.4 | 6.2 | |||||||||
|
State Street Bank
(2)
:
|
|||||||||||
| Tier 1 capital | $ | 20,352 | $ | 19,173 | |||||||
| Average assets | 335,558 | 323,086 | |||||||||
| Less: adjustments for deductions from tier 1 capital and other | (8,544) | (8,332) | |||||||||
| Adjusted average assets for tier 1 leverage ratio | 327,014 | 314,754 | |||||||||
| Additional SLR exposure | 45,300 | 40,299 | |||||||||
| Adjustments for deductions of qualifying central bank deposits | (84,965) | (87,496) | |||||||||
| Total assets for SLR | $ | 287,349 | $ | 267,557 | |||||||
|
Tier 1 leverage ratio
(1)
|
6.2 | % | 6.1 | % | |||||||
| Supplementary leverage ratio | 7.1 | 7.2 | |||||||||
(1)
Tier 1 leverage ratios were calculated in conformity with the Basel III final rule.
(2)
The SLR rule requires that, as of January 1, 2018, (i) State Street Bank maintains an SLR of at least 6.0% to be well capitalized under the U.S. banking regulators’ Prompt Corrective Action Framework and (ii) we maintain an SLR of at least 5.0% to avoid limitations on capital distributions and discretionary bonus payments. In addition to the SLR, State Street Bank is subject to a well capitalized Tier 1 leverage ratio requirement of 5.0%.
Total Loss-Absorbing Capacity
The Federal Reserve's final rule on TLAC, LTD and clean holding company requirements for U.S. domiciled G-SIBs, such as us, is intended to improve the resiliency and resolvability of certain U.S. banking organizations through enhanced prudential standards, and requires us, among other things, to comply with minimum requirements for external TLAC (combined eligible tier 1 regulatory capital and LTD) and LTD. Specifically, we must hold:
| Amount equal to: | |||||
| External TLAC |
Greater of:
•
21.5% of total RWA (18.0% minimum plus 2.5% plus a G-SIB surcharge calculated for these purposes under Method 1 of 1.0% plus any applicable countercyclical buffer, which is currently 0%); and
•
9.5% of total leverage exposure (7.5% minimum plus the SLR buffer of 2.0%), as defined by the SLR final rule.
|
||||
| Qualifying external LTD |
Greater of:
•
7.0% of RWA (6.0% minimum plus a G-SIB surcharge calculated for these purposes under method 2 of 1.0%); and
•
4.5% of total leverage exposure, as defined by the SLR final rule.
|
||||
The following table presents external TLAC and external LTD as of September 30, 2025:
| TABLE 33: TOTAL LOSS-ABSORBING CAPACITY | ||||||||||||||||||||||||||
| As of September 30, 2025 | ||||||||||||||||||||||||||
|
(Dollars in millions)
|
Actual | Requirement | ||||||||||||||||||||||||
| Total loss-absorbing capacity: | ||||||||||||||||||||||||||
| Risk-weighted assets | $ | 38,668 | 28.8 | % | $ | 28,846 | 21.5 | % | ||||||||||||||||||
| Total leverage exposure | 38,668 | 13.3 | 27,689 | 9.5 | ||||||||||||||||||||||
| Long-term debt: | ||||||||||||||||||||||||||
| Risk-weighted assets | 19,203 | 14.3 | 9,392 | 7.0 | ||||||||||||||||||||||
| Total leverage exposure | 19,203 | 6.6 | 13,116 | 4.5 | ||||||||||||||||||||||
State Street Corporation | 41
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Capital Actions
Preferred Stock
The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of September 30, 2025:
| TABLE 34: PREFERRED STOCK ISSUED AND OUTSTANDING | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Preferred Stock
(1)
:
|
Issuance Date | Depositary Shares Issued | Amount outstanding (In millions) | Ownership Interest Per Depositary Share | Liquidation Preference Per Share | Liquidation Preference Per Depositary Share | Per Annum Dividend Rate | Dividend Payment Frequency |
Carrying Value as of September 30, 2025
(In millions) |
Redemption Date
(2)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Series G | April 2016 | 20,000,000 | $ | 500 | 1/4,000th | 100,000 | 25 |
5.35%
(3)
|
Quarterly: March, June, September and December | $ | 493 | March 15, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Series I | January 2024 | 1,500,000 | 1,500 | 1/100th | 100,000 | 1,000 | 6.700% through March 14, 2029; resets March 15, 2029 and every subsequent five year anniversary at the five- year U.S. Treasury rate plus 2.613% | Quarterly: March, June, September and December | 1,481 | March 15, 2029 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Series J | July 2024 | 850,000 | 850 | 1/100th | 100,000 | 1,000 | 6.700% through September 14, 2029; resets September 15, 2029 and every subsequent five year anniversary at the five-year U.S. Treasury rate plus 2.628% | Quarterly: March, June, September and December | 842 | September 15, 2029 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Series K | February 2025 | 750,000 | 750 | 1/100th | 100,000 | 1,000 | 6.450% through September 14, 2030; resets September 15, 2030 and every subsequent five year anniversary at the five- year U.S. Treasury rate plus 2.135% | Quarterly: March, June, September and December | 743 | September 15, 2030 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(1)
The preferred stock and corresponding depositary shares may be redeemed at our option in whole, but not in part, prior to the redemption date upon the occurrence of a regulatory capital treatment event, as defined in the certificate of designation, at a redemption price equal to the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends.
(2)
On the redemption date, or any dividend payment date thereafter, the preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends.
(3)
The dividend rate for the floating rate period of the Series G preferred stock that begins on March 15, 2026 and all subsequent floating rate periods will remain at the current fixed rate in accordance with the London Interbank Offered Rate (LIBOR) Act and the contractual terms of the Series G preferred stock.
On February 6, 2025, we issued 750,000 depositary shares, each representing a 1/100th ownership interest in a share of fixed rate reset, non-cumulative perpetual preferred stock, Series K, without par value per share, with a liquidation preference of $100,000 per share (equivalent to $1,000 per depositary share), in a public offering. The aggregate proceeds, net of underwriting discounts, commissions and other issuance costs, were approximately $743 million.
State Street Corporation | 42
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The following table presents the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated:
| TABLE 35: PREFERRED STOCK DIVIDENDS | |||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| (Dollars in millions, except per share amounts) | Dividends Declared per Share | Dividends Declared per Depositary Share | Total | Dividends Declared per Share | Dividends Declared per Depositary Share | Total | |||||||||||||||||||||||||||||
| Preferred Stock: | |||||||||||||||||||||||||||||||||||
| Series G | $ | 1,338 | $ | 0.33 | $ | 7 | $ | 1,338 | $ | 0.33 | $ | 7 | |||||||||||||||||||||||
| Series H | — | — | — | 2,036 | 20.36 | 10 | |||||||||||||||||||||||||||||
| Series I | 1,675 | 16.75 | 25 | 1,675 | 16.75 | 25 | |||||||||||||||||||||||||||||
| Series J | 1,675 | 16.75 | 14 | — | — | — | |||||||||||||||||||||||||||||
| Series K | 1,613 | 16.13 | 12 | — | — | — | |||||||||||||||||||||||||||||
| Total | $ | 58 | $ | 42 | |||||||||||||||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| (Dollars in millions, except per share amounts) | Dividends Declared per Share | Dividends Declared per Depositary Share | Total | Dividends Declared per Share | Dividends Declared per Depositary Share | Total | |||||||||||||||||||||||||||||
| Preferred Stock: | |||||||||||||||||||||||||||||||||||
| Series D | $ | — | $ | — | $ | — | $ | 1,475 | $ | 0.37 | $ | 11 | |||||||||||||||||||||||
| Series F | — | — | — | 2,336 | 23.36 | 6 | |||||||||||||||||||||||||||||
| Series G | 4,013 | 1.00 | 20 | 4,013 | 1.00 | 20 | |||||||||||||||||||||||||||||
| Series H | — | — | — | 6,251 | 62.51 | 31 | |||||||||||||||||||||||||||||
| Series I | 5,025 | 50.25 | 75 | 4,188 | 41.88 | 63 | |||||||||||||||||||||||||||||
| Series J | 5,025 | 50.25 | 43 | — | — | — | |||||||||||||||||||||||||||||
| Series K | 3,924 | 39.24 | 29 | — | — | — | |||||||||||||||||||||||||||||
| Total | $ | 167 | $ | 131 | |||||||||||||||||||||||||||||||
In October 2025, we declared dividends on our Series G, I, J and K preferred stock of approximately $1,338, $1,675, $1,675 and $1,613, respectively, per share, or approximately $0.33, $16.75, $16.75 and $16.13, respectively, per depositary share. These dividends total approximately $7 million, $25 million, $14 million and $12 million on our Series G, I, J and K preferred stock, respectively, which will be paid in December 2025.
Common Stock
On January 19, 2024, we announced a common share repurchase program, approved by the Board and superseding all prior programs, authorizing the purchase of up to $5.0 billion of our common stock beginning in the first quarter of 2024 (the 2024 Program). This program has no set expiration date and is not expected to be executed in full during 2025. We repurchased $400 million of our common stock in the third quarter of 2025 under our 2024 share repurchase authorization. Since its inception, we repurchased an aggregate of $2.1 billion of our common stock under the 2024 program through September 30, 2025.
The table below presents the activity under our common share repurchase program for the periods indicated:
| TABLE 36: SHARES REPURCHASED | |||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
|
Shares Acquired
(In millions) |
Average Cost per Share |
Total Acquired
(In millions) |
Shares Acquired
(In millions) |
Average Cost per Share |
Total Acquired
(In millions) |
||||||||||||||||||||||||||||||
| 2024 Program | 3.6 | $ | 110.34 | $ | 400 | 5.4 | $ | 84.00 | $ | 450 | |||||||||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
|
Shares Acquired
(In millions) |
Average Cost per Share |
Total Acquired
(In millions) |
Shares Acquired
(In millions) |
Average Cost per Share |
Total Acquired
(In millions) |
||||||||||||||||||||||||||||||
| 2024 Program | 8.1 | $ | 98.45 | $ | 800 | 9.4 | $ | 79.73 | $ | 750 | |||||||||||||||||||||||||
State Street Corporation | 43
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The table below presents the dividends declared on common stock for the periods indicated:
| TABLE 37: COMMON STOCK DIVIDENDS | |||||||||||||||||||||||
| Three Months Ended September 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Dividends Declared per Share | Total (In millions) | Dividends Declared per Share | Total (In millions) | ||||||||||||||||||||
| Common Stock | $ | 0.84 | $ | 237 | $ | 0.76 | $ | 224 | |||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Dividends Declared per Share | Total (In millions) | Dividends Declared per Share | Total (In millions) | ||||||||||||||||||||
| Common Stock | $ | 2.36 | $ | 674 | $ | 2.14 | $ | 639 | |||||||||||||||
Federal and state banking regulations place certain restrictions on dividends paid by subsidiary banks to the parent holding company. In addition, banking regulators have the authority to prohibit bank holding companies from paying dividends. For information concerning limitations on dividends from our subsidiary banks, refer to pages 55 to 57 in "Related Stockholder Matters" included under Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities, and pages 161 to 163 in Note 15 to the consolidated financial statements in the 2024 Form 10-K. Our common stock and preferred stock dividends, including the declaration, timing and amount thereof, are subject to consideration and approval by the Board at the relevant times.
Stock purchases under our common share repurchase program may be made using various types of transactions, including open market purchases, accelerated share repurchases or other transactions off the market, and may be made under Rule 10b5-1 trading programs. The timing and amount of any stock purchases and the type of transaction may not be ratable over the duration of the program, may vary from reporting period to reporting period and will depend on several factors, including our capital position and our financial performance, investment opportunities, market conditions, the nature and timing of implementation of revisions to the Basel III framework and the amount of common stock issued as part of employee compensation programs. The common share repurchase program does not have specific price targets and may be suspended at any time.
OFF-BALANCE SHEET ARRANGEMENTS
On behalf of clients enrolled in our securities lending program, we lend securities to banks, broker/dealers and other institutions. In most circumstances, we indemnify our clients for the fair market value of those securities against a failure of the borrower to return such securities. Though these transactions are collateralized, the substantial volume of these activities necessitates detailed credit-based underwriting and monitoring processes. The aggregate amount of indemnified securities on loan totaled $382.57 billion and $310.81 billion as of September 30, 2025 and December 31, 2024, respectively. We require the borrower to provide collateral in an amount in excess of 100% of the fair market value of the securities borrowed. We hold the collateral received in connection with these securities lending services as agent, and the collateral is not recorded in our consolidated statement of condition. We revalue the securities on loan and the collateral daily to determine if additional collateral is necessary or if excess collateral is required to be returned to the borrower. We held, as agent, cash and securities totaling $402.35 billion and $325.61 billion as collateral for indemnified securities on loan as of September 30, 2025 and December 31, 2024, respectively.
The cash collateral held by us as agent is invested on behalf of our clients. In certain cases, the cash collateral is invested in third-party repurchase agreements, for which we indemnify the client against loss of the principal invested. We require the counterparty to the indemnified repurchase agreement to provide collateral in an amount in excess of 100% of the amount of the repurchase agreement. In our role as agent, the indemnified repurchase agreements and the related collateral held by us are not recorded in our consolidated statement of condition. Of the collateral of $402.35 billion and $325.61 billion, referenced above, $55.52 billion and $63.66 billion was invested in indemnified repurchase agreements as of September 30, 2025 and December 31, 2024, respectively. We or our agents held $59.62 billion and $68.51 billion as collateral for indemnified investments in repurchase agreements as of September 30, 2025 and December 31, 2024, respectively.
Additional information about our securities finance activities and other off-balance sheet arrangements is provided in Notes 7, 9 and 11 to the consolidated financial statements in this Form 10-Q.
RECENT ACCOUNTING DEVELOPMENTS
Information with respect to recent accounting developments is provided in Note 1 to the consolidated financial statements in this Form 10-Q.
State Street Corporation | 44
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The information provided under “Market Risk Management” in "Financial Condition" in our Management's Discussion and Analysis in this Form 10-Q, is incorporated by reference herein.
For more information on our market risk refer to pages 99 to 106 included under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, in our 2024 Form 10-K.
CONTROLS AND PROCEDURES
We have established and maintain disclosure controls and procedures that are designed to ensure that information related to us and our subsidiaries on a consolidated basis required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. For the quarter ended September 30, 2025, our management carried out an evaluation, with the participation of the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the evaluation of these disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of September 30, 2025.
We have established and maintain internal control over financial reporting as a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in conformity with U.S. GAAP. In the ordinary course of business, we routinely enhance our internal controls and procedures for financial reporting by either upgrading our current systems or implementing new systems. Changes have been made and may be made to our internal controls and procedures for financial reporting as a result of these efforts. During the quarter ended September 30, 2025, no change occurred in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
State Street Corporation | 45
STATE STREET CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (Dollars in millions, except per share amounts) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Fee revenue: | |||||||||||||||||||||||
| Servicing fees | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Management fees |
|
|
|
|
|||||||||||||||||||
| Foreign exchange trading services |
|
|
|
|
|||||||||||||||||||
| Securities finance |
|
|
|
|
|||||||||||||||||||
| Software and processing fees |
|
|
|
|
|||||||||||||||||||
| Other fee revenue |
|
|
|
|
|||||||||||||||||||
| Total fee revenue |
|
|
|
|
|||||||||||||||||||
| Net interest income: | |||||||||||||||||||||||
| Interest income |
|
|
|
|
|||||||||||||||||||
| Interest expense |
|
|
|
|
|||||||||||||||||||
| Net interest income |
|
|
|
|
|||||||||||||||||||
| Other income: | |||||||||||||||||||||||
| Gains (losses) from sales of available-for-sale securities, net |
|
(
|
|
(
|
|||||||||||||||||||
| Total other income (loss) |
|
(
|
|
(
|
|||||||||||||||||||
| Total revenue |
|
|
|
|
|||||||||||||||||||
| Provision for credit losses |
|
|
|
|
|||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Compensation and employee benefits |
|
|
|
|
|||||||||||||||||||
| Information systems and communications |
|
|
|
|
|||||||||||||||||||
| Transaction processing services |
|
|
|
|
|||||||||||||||||||
| Occupancy |
|
|
|
|
|||||||||||||||||||
| Amortization of other intangible assets |
|
|
|
|
|||||||||||||||||||
| Other |
|
|
|
|
|||||||||||||||||||
| Total expenses |
|
|
|
|
|||||||||||||||||||
| Income before income tax expense |
|
|
|
|
|||||||||||||||||||
| Income tax expense |
|
|
|
|
|||||||||||||||||||
| Net income | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Net income available to common shareholders | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Earnings per common share: | |||||||||||||||||||||||
| Basic | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Diluted |
|
|
|
|
|||||||||||||||||||
| Average common shares outstanding (in thousands): | |||||||||||||||||||||||
| Basic |
|
|
$ |
|
|
||||||||||||||||||
| Diluted |
|
|
|
|
|||||||||||||||||||
| Cash dividends declared per common share | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
The accompanying condensed notes are an integral part of these consolidated financial statements.
State Street Corporation | 46
STATE STREET CORPORATION
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(UNAUDITED)
| Three Months Ended September 30, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| Net income | $ |
|
$ |
|
|||||||
| Other comprehensive income (loss), net of related taxes: | |||||||||||
|
Foreign currency translation, net of related taxes of $
|
|
|
|||||||||
|
Net unrealized gains on available-for-sale securities, net of reclassification adjustment and net of related taxes of $
|
|
|
|||||||||
|
Net unrealized gains on cash flow hedges, net of related taxes of $
|
|
|
|||||||||
|
Net unrealized gains on retirement plans, net of related taxes of
|
|
|
|||||||||
|
Other comprehensive income
|
|
|
|||||||||
| Total comprehensive income | $ |
|
$ |
|
|||||||
| Nine Months Ended September 30, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| Net income | $ |
|
$ |
|
|||||||
| Other comprehensive income (loss), net of related taxes: | |||||||||||
|
Foreign currency translation, net of related taxes of ($
|
|
|
|||||||||
|
Net unrealized gains on investment securities, net of reclassification adjustment and net of related taxes of $
|
|
|
|||||||||
|
Net unrealized gains (losses) on cash flow hedges, net of related taxes of $
|
|
(
|
|||||||||
|
Net unrealized gains on retirement plans, net of related taxes of $
|
|
|
|||||||||
|
Other comprehensive income
|
|
|
|||||||||
|
Total comprehensive income
|
$ |
|
$ |
|
|||||||
The accompanying condensed notes are an integral part of these consolidated financial statements.
State Street Corporation | 47
STATE STREET CORPORATION
CONSOLIDATED STATEMENT OF CONDITION
| September 30, 2025 | December 31, 2024 | ||||||||||
| (Dollars in millions, except per share amounts) | (UNAUDITED) | ||||||||||
| Assets: | |||||||||||
| Cash and due from banks | $ |
|
$ |
|
|||||||
| Interest-bearing deposits with banks |
|
|
|||||||||
| Securities purchased under resale agreements |
|
|
|||||||||
| Trading account assets |
|
|
|||||||||
|
Investment securities available-for-sale
|
|
|
|||||||||
|
Investment securitie
s held-to-maturity (less allowance for
credit losses of $
|
|
|
|||||||||
|
Loans (less allowance for credit losses on l
oans of $
|
|
|
|||||||||
|
Premises and equipment (net of accumulated depreciation of
$
|
|
|
|||||||||
| Accrued interest and fees receivable |
|
|
|||||||||
| Goodwill |
|
|
|||||||||
| Other intangible assets |
|
|
|||||||||
| Other assets |
|
|
|||||||||
| Total assets | $ |
|
$ |
|
|||||||
| Liabilities: | |||||||||||
| Deposits: | |||||||||||
| Non-interest-bearing | $ |
|
$ |
|
|||||||
| Interest-bearing - U.S. |
|
|
|||||||||
| Interest-bearing - non-U.S. |
|
|
|||||||||
| Total deposits |
|
|
|||||||||
| Securities sold under repurchase agreements |
|
|
|||||||||
| Other short-term borrowings |
|
|
|||||||||
| Accrued expenses and other liabilities |
|
|
|||||||||
| Long-term debt |
|
|
|||||||||
| Total liabilities |
|
|
|||||||||
| Commitments, guarantees and contingencies (Notes 9 and 10) |
|
|
|||||||||
| Shareholders’ equity: | |||||||||||
|
Preferred stock, no par,
|
|||||||||||
|
Series G,
|
|
|
|||||||||
|
Series I,
|
|
|
|||||||||
|
Series J,
|
|
|
|||||||||
|
Series K,
|
|
|
|||||||||
|
Common stock, $
|
|||||||||||
|
|
|
|
|||||||||
| Surplus |
|
|
|||||||||
| Retained earnings |
|
|
|||||||||
| Accumulated other comprehensive income (loss) |
(
|
(
|
|||||||||
|
Treasury s
tock, at cost (
|
(
|
(
|
|||||||||
| Total shareholders’ equity |
|
|
|||||||||
| Total liabilities and shareholders' equity | $ |
|
$ |
|
|||||||
The accompanying condensed notes are an integral part of these consolidated financial statements.
State Street Corporation | 48
STATE STREET CORPORATION
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)
| (Dollars in millions, except per share amounts, shares in thousands) |
Preferred
Stock
|
Common Stock | Surplus |
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Treasury Stock | Total | ||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ |
|
|
$ |
|
$ |
|
$ |
|
$ |
(
|
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||||||||||||||
| Net income |
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) |
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock issued |
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock redeemed |
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends declared: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Common stock - $
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock |
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock acquired |
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock awards exercised |
(
|
(
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Other |
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at March 31, 2024 | $ |
|
|
$ |
|
$ |
|
$ |
|
$ |
(
|
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||||||||||||||
| Net income |
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Other comprehensive income
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends declared: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Common stock -$
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock |
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock acquired |
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock awards exercised |
(
|
(
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Other |
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2024 | $ |
|
|
$ |
|
$ |
|
$ |
|
$ |
(
|
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||||||||||||||
| Net income |
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income |
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock issued |
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock redeemed |
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends declared: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Common stock - $
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock |
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock acquired |
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock awards exercised |
|
(
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Other |
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2024 | $ |
|
|
$ |
|
$ |
|
$ |
|
$ |
(
|
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||||||||||||||
|
Balance at December 31, 2024
|
$ |
|
|
$ |
|
$ |
|
$ |
|
$ |
(
|
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||||||||||||||
| Net income |
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Other comprehensive income
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock issued |
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends declared: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Common stock - $
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock |
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock acquired |
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock awards exercised |
(
|
(
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Other |
(
|
(
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Balance at March 31, 2025
|
$ |
|
|
$ |
|
$ |
|
$ |
|
$ |
(
|
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||||||||||||||
| Net income |
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Other comprehensive income
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends declared: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Common stock - $
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock |
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock acquired |
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock awards exercised |
|
(
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Other |
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ |
|
|
$ |
|
$ |
|
$ |
|
$ |
(
|
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||||||||||||||
| Net income |
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Other comprehensive income
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends declared: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Common stock - $
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock |
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock acquired |
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock awards exercised |
|
(
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Other |
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2025 | $ |
|
|
$ |
|
$ |
|
$ |
|
$ |
(
|
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||||||||||||||
The accompanying condensed notes are an integral part of these consolidated financial statements.
State Street Corporation | 49
STATE STREET CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
| Nine Months Ended September 30, | |||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| Operating Activities: | |||||||||||
| Net income | $ |
|
$ |
|
|||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Deferred income tax |
(
|
|
|||||||||
| Amortization of other intangible assets |
|
|
|||||||||
| Other non-cash adjustments for depreciation, amortization and accretion, net |
|
|
|||||||||
|
(Gains) losses related to investment securities, net
|
(
|
|
|||||||||
| Provision for credit losses |
|
|
|||||||||
| Change in trading account assets, net |
(
|
(
|
|||||||||
| Change in accrued interest and fees receivable, net |
(
|
(
|
|||||||||
| Change in collateral deposits, net |
(
|
(
|
|||||||||
|
Change in unrealized losses on foreign exchange derivatives, net
|
|
|
|||||||||
| Change in other assets, net |
(
|
|
|||||||||
| Change in accrued expenses and other liabilities, net |
(
|
|
|||||||||
| Other, net |
|
|
|||||||||
|
Net cash provided by (used in) operating activities
|
|
(
|
|||||||||
| Investing Activities: | |||||||||||
|
Net increase in interest-bearing deposits with banks
|
(
|
(
|
|||||||||
|
Net increase in securities purchased under resale agreements
|
(
|
(
|
|||||||||
| Proceeds from sales of available-for-sale securities |
|
|
|||||||||
| Proceeds from maturities of available-for-sale securities |
|
|
|||||||||
| Purchases of available-for-sale securities |
(
|
(
|
|||||||||
| Proceeds from maturities of held-to-maturity securities |
|
|
|||||||||
| Purchases of held-to-maturity securities |
|
(
|
|||||||||
| Sale of loans |
|
|
|||||||||
| Net increase in loans |
(
|
(
|
|||||||||
| Business acquisitions, net of cash acquired |
|
(
|
|||||||||
| Purchases of equity investments and other long-term assets |
(
|
(
|
|||||||||
| Purchases of premises and equipment, net |
(
|
(
|
|||||||||
| Other, net |
|
(
|
|||||||||
|
Net cash used in investing activities
|
(
|
(
|
|||||||||
| Financing Activities: | |||||||||||
|
Net decrease in time deposits
|
(
|
(
|
|||||||||
|
Net increase in all other deposits
|
|
|
|||||||||
|
Net (decrease) increase in securities sold under repurchase agreements
|
(
|
|
|||||||||
|
Net (decrease) increase in other short-term borrowings
|
(
|
|
|||||||||
| Proceeds from issuance of long-term debt, net of issuance costs |
|
|
|||||||||
| Payments for long-term debt and obligations under finance leases |
(
|
(
|
|||||||||
| Payments for redemption of preferred stock |
|
(
|
|||||||||
| Proceeds from issuance of preferred stock, net of issuance costs |
|
|
|||||||||
| Repurchases of common stock |
(
|
(
|
|||||||||
| Repurchases of common stock for employee tax withholding |
(
|
(
|
|||||||||
| Payments for cash dividends |
(
|
(
|
|||||||||
| Other, net |
(
|
(
|
|||||||||
|
Net cash provided by financing activities
|
|
|
|||||||||
|
Net increase in cash and due from banks
|
|
|
|||||||||
| Cash and due from banks at beginning of period |
|
|
|||||||||
| Cash and due from banks at end of period | $ |
|
$ |
|
|||||||
| Supplemental disclosure: | |||||||||||
| Interest paid | $ |
|
$ |
|
|||||||
| Income taxes paid, net |
|
|
|||||||||
The accompanying condensed notes are an integral part of these consolidated financial statements.
State Street Corporation | 50
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note 1.
Summary of Significant Accounting Policies
Basis of Presentation
The accounting and financial reporting policies of State Street Corporation conform to U.S. GAAP. State Street Corporation, the Parent Company, is a financial holding company headquartered in Boston, Massachusetts. Unless otherwise indicated or unless the context requires otherwise, all references in these notes to consolidated financial statements to “State Street,” “we,” “us,” “our” or similar references mean State Street Corporation and its subsidiaries on a consolidated basis, including our principal banking subsidiary, State Street Bank.
The accompanying consolidated financial statements should be read in conjunction with the financial and risk factor information included in our 2024 Form 10-K, which we previously filed with the SEC.
The consolidated financial statements accompanying these condensed notes are unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the consolidated results of operations in these financial statements, have been made. Certain previously reported amounts presented in this Form 10-Q have been reclassified to conform to current-period presentation. Events occurring subsequent to the date of our consolidated statement of condition were evaluated for potential recognition or disclosure in our consolidated financial statements through the date we filed this Form 10-Q with the SEC.
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue and expenses. As a result of unanticipated events or circumstances, actual results could differ from those estimates.
Our consolidated statement of condition as of December 31, 2024 included in the accompanying consolidated financial statements was derived from the audited financial statements as of that date, but does not include all notes required by U.S. GAAP for a complete set of consolidated financial statements.
Cash and Cash Equivalents
Sanctions programs or government intervention may inhibit our ability to access cash and due from banks in certain accounts. For example, as of September 30, 2025 and December 31, 2024, we held accounts in Russia that were subject to sanctions restrictions, inclusive
of $
1.4
billion and $
0.8
billion, respectively, with our subcustodian, which is an affiliate of a large multinational bank, and with western European-based clearing agencies, for a total of approximately
$
2.1
billion and $
1.3
billion, respectively.
Cash and due from banks is evaluated as part of our allowance for credit losses.
Recent Accounting Developments
Relevant standards that were recently issued but not yet adopted as of September 30, 2025:
| Standard | Description | Effective Date |
Effects on the financial statements or other significant matters
|
||||||||
|
ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software
|
The amendments remove all references to prescriptive and
sequential software development stages (referred to as “project stages”) throughout Subtopic 350-40. Capitalizing software costs commences when both of the following occur (1) management has authorized and committed to funding the software project, and (2) it is probable that the project will be completed and the software will be used to perform the function intended (“probable-to-complete recognition threshold”).
|
Annual and interim reporting for the year ending December 31, 2028
|
We are currently evaluating the impact to our financial statements.
|
||||||||
|
ASU 2024-03, Income Statement (Subtopic 220-40): Reporting Comprehensive Income - Expense Disaggregation Disclosures
|
The amendments require disclosure of information about certain costs and expenses in both interim and annual reporting periods. Specified information includes expense amounts relating to purchases of inventory, employee compensation, depreciation, intangible asset amortization, and selling expenses with the definition thereof.
|
Annual reporting for period ending December 31, 2027 and for interim reporting in 2028
|
We are currently evaluating the disclosure impact of the new standard. | ||||||||
| ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures | The amendments related to the rate reconciliation and income taxes paid disclosures and require disclosures of (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. Additional amendments require (1) disclosures of pretax income (or loss) and income tax expense (or benefit) to be consistent with U.S. Securities and Exchange Commission regulations, and (2) remove disclosures that no longer are considered cost beneficial or relevant. | Annual reporting for period ending December 31, 2025 |
We will adopt the new disclosure requirements for the year-end December 31, 2025 and will provide additional disaggregated income tax disclosures.
|
||||||||
Additionally, we continue to evaluate other accounting standards that were recently issued, but not yet adopted as of September 30, 2025; none are expected to have a material impact to our financial statements.
State Street Corporation | 51
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note 2.
Fair Value
Fair Value Measurements
We carry trading account assets and liabilities, AFS debt securities, certain equity securities and various types of derivative financial instruments, at fair value in our consolidated statement of condition on a recurring basis. Changes in the fair values of these financial assets and liabilities are recorded either as components of our consolidated statement of income or as components of AOCI within shareholders' equity in our consolidated statement of condition.
We measure fair value for the above-described financial assets and liabilities in conformity with U.S. GAAP that governs the measurement of the fair value of financial instruments. Management believes that its valuation techniques and underlying assumptions used to measure fair value conform to the provisions of U.S. GAAP. We categorize the financial assets and liabilities that we carry at fair value based on a prescribed three-level valuation hierarchy. For information about our valuation techniques for financial assets and financial liabilities measured at fair value and the fair value hierarchy, refer to pages 130 to 135 in Note 2 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
The following tables present information with respect to our financial assets and liabilities carried at fair value in our consolidated statement of condition on a recurring basis as of the dates indicated:
| Fair Value Measurements on a Recurring Basis | |||||||||||||||||||||||||||||
| As of September 30, 2025 | |||||||||||||||||||||||||||||
| (In millions) |
Quoted Market
Prices in Active Markets (Level 1) |
Pricing Methods
with Significant Observable Market Inputs (Level 2) |
Pricing Methods
with Significant Unobservable Market Inputs (Level 3) |
Impact of Netting
(1)
|
Total Net
Carrying Value in Consolidated Statement of Condition |
||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||
| Trading account assets: | |||||||||||||||||||||||||||||
| U.S. government securities | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||
| Non-U.S. government securities |
|
|
|
|
|||||||||||||||||||||||||
| Other |
|
|
|
|
|||||||||||||||||||||||||
| Total trading account assets | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||
| Available-for-sale investment securities: | |||||||||||||||||||||||||||||
| U.S. Treasury and federal agencies: | |||||||||||||||||||||||||||||
| Direct obligations | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||
| Mortgage-backed securities |
|
|
|
|
|||||||||||||||||||||||||
| Total U.S. Treasury and federal agencies |
|
|
|
|
|||||||||||||||||||||||||
| Non-U.S. debt securities: | |||||||||||||||||||||||||||||
| Mortgage-backed securities |
|
|
|
|
|||||||||||||||||||||||||
| Asset-backed securities |
|
|
|
|
|||||||||||||||||||||||||
| Non-U.S. sovereign, supranational and non-U.S. agency |
|
|
|
|
|||||||||||||||||||||||||
| Other |
|
|
|
|
|||||||||||||||||||||||||
| Total non-U.S. debt securities |
|
|
|
|
|||||||||||||||||||||||||
| Asset-backed securities: | |||||||||||||||||||||||||||||
| Student loans |
|
|
|
|
|||||||||||||||||||||||||
| Collateralized loan obligations |
|
|
|
|
|||||||||||||||||||||||||
|
Non-agency CMBS and RMBS
(2)
|
|
|
|
|
|||||||||||||||||||||||||
| Other |
|
|
|
|
|||||||||||||||||||||||||
| Total asset-backed securities |
|
|
|
|
|||||||||||||||||||||||||
| State and political subdivisions |
|
|
|
|
|||||||||||||||||||||||||
| Other U.S. debt securities |
|
|
|
|
|||||||||||||||||||||||||
| Total available-for-sale investment securities | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||
| Other assets: | |||||||||||||||||||||||||||||
| Derivative instruments: | |||||||||||||||||||||||||||||
| Foreign exchange contracts | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||
| Interest rate contracts |
|
|
|
(
|
|
||||||||||||||||||||||||
| Total derivative instruments |
|
|
|
(
|
|
||||||||||||||||||||||||
| Other |
|
|
|
|
|
||||||||||||||||||||||||
| Total assets carried at fair value | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||
| Accrued expenses and other liabilities: | |||||||||||||||||||||||||||||
| Derivative instruments: | |||||||||||||||||||||||||||||
| Foreign exchange contracts | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||
| Interest rate contracts |
|
|
|
(
|
|
||||||||||||||||||||||||
| Other derivative contracts |
|
|
|
|
|
||||||||||||||||||||||||
| Total derivative instruments |
|
|
|
(
|
|
||||||||||||||||||||||||
| Total liabilities carried at fair value | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||
(1)
Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between us and the counterparty. Netting also reflects asset and liability reductions of $
0.80
billion and $
1.21
billion, respectively, for cash collateral received from and provided to derivative counterparties.
(2)
Consists entirely of non-agency CMBS.
State Street Corporation | 52
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
| Fair Value Measurements on a Recurring Basis | |||||||||||||||||||||||||||||
| As of December 31, 2024 | |||||||||||||||||||||||||||||
| (In millions) |
Quoted Market
Prices in Active Markets (Level 1) |
Pricing Methods
with Significant Observable Market Inputs (Level 2) |
Pricing Methods
with Significant Unobservable Market Inputs (Level 3) |
Impact of Netting
(1)
|
Total Net
Carrying Value in Consolidated Statement of Condition |
||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||
| Trading account assets: | |||||||||||||||||||||||||||||
| U.S. government securities | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||
| Non-U.S. government securities |
|
|
|
|
|||||||||||||||||||||||||
| Other |
|
|
|
|
|||||||||||||||||||||||||
| Total trading account assets | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||
| Available-for-sale investment securities: | |||||||||||||||||||||||||||||
| U.S. Treasury and federal agencies: | |||||||||||||||||||||||||||||
| Direct obligations | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||
| Mortgage-backed securities |
|
|
|
|
|||||||||||||||||||||||||
| Total U.S. Treasury and federal agencies |
|
|
|
|
|||||||||||||||||||||||||
| Non-U.S. debt securities: | |||||||||||||||||||||||||||||
| Mortgage-backed securities |
|
|
|
|
|||||||||||||||||||||||||
| Asset-backed securities |
|
|
|
|
|||||||||||||||||||||||||
| Non-U.S. sovereign, supranational and non-U.S. agency |
|
|
|
|
|||||||||||||||||||||||||
| Other |
|
|
|
|
|||||||||||||||||||||||||
| Total non-U.S. debt securities |
|
|
|
|
|||||||||||||||||||||||||
| Asset-backed securities: | |||||||||||||||||||||||||||||
| Student loans |
|
|
|
|
|||||||||||||||||||||||||
| Collateralized loan obligations |
|
|
|
|
|||||||||||||||||||||||||
|
Non-agency CMBS and RMBS
(2)
|
|
|
|
|
|||||||||||||||||||||||||
| Other |
|
|
|
|
|||||||||||||||||||||||||
| Total asset-backed securities |
|
|
|
|
|||||||||||||||||||||||||
| State and political subdivisions |
|
|
|
|
|||||||||||||||||||||||||
| Other U.S. debt securities |
|
|
|
|
|||||||||||||||||||||||||
| Total available-for-sale investment securities | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||
| Other assets: | |||||||||||||||||||||||||||||
| Derivative instruments: | |||||||||||||||||||||||||||||
| Foreign exchange contracts | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||
| Interest rate contracts |
|
|
|
(
|
|
||||||||||||||||||||||||
| Other derivative contracts |
|
|
|
|
|
||||||||||||||||||||||||
| Total derivative instruments |
|
|
|
(
|
|
||||||||||||||||||||||||
| Other |
|
|
|
|
|
||||||||||||||||||||||||
| Total assets carried at fair value | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||
| Accrued expenses and other liabilities: | |||||||||||||||||||||||||||||
| Trading account liabilities: | |||||||||||||||||||||||||||||
| Derivative instruments: | |||||||||||||||||||||||||||||
| Foreign exchange contracts | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||
| Interest rate contracts |
|
|
|
(
|
|
||||||||||||||||||||||||
| Other derivative contracts |
|
|
|
|
|
||||||||||||||||||||||||
| Total derivative instruments |
|
|
|
(
|
|
||||||||||||||||||||||||
| Total liabilities carried at fair value | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||
(1)
Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between us and the counterparty. Netting also reflects asset and liability reductions of $
1.86
billion and $
6.10
billion, respectively, for cash collateral received from and provided to derivative counterparties.
(2)
Consists entirely of non-agency CMBS.
State Street Corporation | 53
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Fair Value Estimates
Estimates of fair value for financial instruments not carried at fair value in our consolidated statement of condition are generally subjective in nature, and are determined as of a specific point in time based on the characteristics of the financial instruments and relevant market information.
The following tables present the reported amounts and estimated fair values of the financial assets and liabilities not carried at fair value, as they would be categorized within the fair value hierarchy, as of the dates indicated:
| Fair Value Hierarchy | |||||||||||||||||||||||||||||
| (In millions) | Reported Amount | Estimated Fair Value | Quoted Market Prices in Active Markets (Level 1) | Pricing Methods with Significant Observable Market Inputs (Level 2) | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | ||||||||||||||||||||||||
| September 30, 2025 | |||||||||||||||||||||||||||||
| Financial Assets: | |||||||||||||||||||||||||||||
| Cash and due from banks | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||
| Interest-bearing deposits with banks |
|
|
|
|
|
||||||||||||||||||||||||
| Securities purchased under resale agreements |
|
|
|
|
|
||||||||||||||||||||||||
| Investment securities held-to-maturity |
|
|
|
|
|
||||||||||||||||||||||||
|
Net loans
(1)
|
|
|
|
|
|
||||||||||||||||||||||||
|
Other
(2)
|
|
|
|
|
|
||||||||||||||||||||||||
| Financial Liabilities: | |||||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||
| Non-interest-bearing | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||
| Interest-bearing - U.S. |
|
|
|
|
|
||||||||||||||||||||||||
| Interest-bearing - non-U.S. |
|
|
|
|
|
||||||||||||||||||||||||
| Securities sold under repurchase agreements |
|
|
|
|
|
||||||||||||||||||||||||
| Other short-term borrowings |
|
|
|
|
|
||||||||||||||||||||||||
| Long-term debt |
|
|
|
|
|
||||||||||||||||||||||||
|
Other
(2)
|
|
|
|
|
|
||||||||||||||||||||||||
(1)
Includes $
15
million of loans classified as held-for-sale that were measured at fair value in level 2 as of September 30, 2025.
(2)
Represents a portion of underlying client assets related to our prime services business, which clients have allowed us to transfer and re-pledge.
| Fair Value Hierarchy | |||||||||||||||||||||||||||||
| (In millions) | Reported Amount | Estimated Fair Value | Quoted Market Prices in Active Markets (Level 1) | Pricing Methods with Significant Observable Market Inputs (Level 2) | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | ||||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||
| Financial Assets: | |||||||||||||||||||||||||||||
| Cash and due from banks | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||
| Interest-bearing deposits with banks |
|
|
|
|
|
||||||||||||||||||||||||
| Securities purchased under resale agreements |
|
|
|
|
|
||||||||||||||||||||||||
| Investment securities held-to-maturity |
|
|
|
|
|
||||||||||||||||||||||||
|
Net loans
(1)
|
|
|
|
|
|
||||||||||||||||||||||||
|
Other
(2)
|
|
|
|
|
|
||||||||||||||||||||||||
| Financial Liabilities: | |||||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||
| Non-interest-bearing | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||
| Interest-bearing - U.S. |
|
|
|
|
|
||||||||||||||||||||||||
| Interest-bearing - non-U.S. |
|
|
|
|
|
||||||||||||||||||||||||
| Securities sold under repurchase agreements |
|
|
|
|
|
||||||||||||||||||||||||
| Other short-term borrowings |
|
|
|
|
|
||||||||||||||||||||||||
| Long-term debt |
|
|
|
|
|
||||||||||||||||||||||||
|
Other
(2)
|
|
|
|
|
|
||||||||||||||||||||||||
(1)
Includes $
14
million of loans classified as held-for-sale that were measured at fair value in level 2 as of December 31, 2024.
(2)
Represents a portion of underlying client assets related to our prime services business, which clients have allowed us to transfer and re-pledge.
Note 3.
Investment Securities
Investment securities held by us are classified as either trading account assets, AFS, HTM or equity securities held at fair value at the time of purchase and reassessed periodically, based on management’s intent. For additional
State Street Corporation | 54
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
information on our accounting for investment securities, refer to page 136 in Note 3 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
Trading assets are carried at fair value. Both realized and unrealized gains and losses on trading assets are recorded in other fee revenue in our consolidated statement of income. AFS securities are carried at fair value, with any allowance for credit losses recorded through the consolidated statement of income and after-tax net unrealized gains and losses are recorded in AOCI. Gains or losses realized on sales of AFS investment securities are computed using the specific identification method and are recorded in gains (losses) from sales of available-for-sale securities, net, in our consolidated statement of income. HTM investment securities are carried at cost, adjusted for amortization of premiums and accretion of discounts, with any allowance for credit losses recorded through the consolidated statement of income.
The following table presents the amortized cost, fair value and associated unrealized gains and losses of AFS and HTM investment securities as of the dates indicated:
| September 30, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
|
Amortized
Cost |
Gross
Unrealized |
Fair
Value |
Amortized
Cost |
Gross
Unrealized |
Fair
Value |
||||||||||||||||||||||||||||||||||||||||||
| (In millions) | Gains | Losses | Gains | Losses | |||||||||||||||||||||||||||||||||||||||||||
| Available-for-sale: | |||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Treasury and federal agencies: | |||||||||||||||||||||||||||||||||||||||||||||||
| Direct obligations | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
|
Mortgage-backed securities
(1)
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Total U.S. Treasury and federal agencies |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Non-U.S. debt securities: | |||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage-backed securities |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Asset-backed securities
(2)
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Non-U.S. sovereign, supranational and non-U.S. agency |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Other
(3)
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Total non-U.S. debt securities |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Asset-backed securities: | |||||||||||||||||||||||||||||||||||||||||||||||
|
Student loans
(4)
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Collateralized loan obligations
(5)
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Non-agency CMBS and RMBS
(6)
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Other |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Total asset-backed securities |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| State and political subdivisions |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Other U.S. debt securities
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Total available-for-sale securities
(7)
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
| Held-to-maturity: | |||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Treasury and federal agencies: | |||||||||||||||||||||||||||||||||||||||||||||||
| Direct obligations | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
|
Mortgage-backed securities
(8)
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Total U.S. Treasury and federal agencies |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Non-U.S. debt securities: | |||||||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. sovereign, supranational and non-U.S. agency |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Total non-U.S. debt securities |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Asset-backed securities: | |||||||||||||||||||||||||||||||||||||||||||||||
|
Student loans
(4)
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Total asset-backed securities |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Total held-to-maturity securities
(7)
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
(1)
As of September 30, 2025 and December 31, 2024, the total fair value included $
3.29
billion and $
4.36
billion, respectively, of agency CMBS and $
12.26
billion and $
6.20
billion, respectively, of agency MBS.
(2)
As of September 30, 2025 and December 31, 2024, the fair value includes non-U.S. collateralized loan obligations of $
0.89
billion and $
0.70
billion, respectively.
(3)
As of September 30, 2025 and December 31, 2024, the fair value includes non-U.S. corporate bonds of $
2.41
billion and $
2.54
billion, respectively.
(4)
Primarily comprises securities guaranteed by the federal government with respect to at least
97
% of defaulted principal and accrued interest on the underlying loans.
(5)
Excludes collateralized loan obligations in loan form. Refer to Note 4 for additional information.
(6)
Consists entirely of non-agency RMBS as of both September 30, 2025 and December 31, 2024.
(7)
An immaterial amount of accrued interest related to HTM and AFS investment securities was excluded from the amortized cost basis for the periods ended September 30, 2025 and December 31, 2024.
State Street Corporation | 55
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Aggregate investment securities with carrying values of approximately $
81.14
billion and $
86.70
billion as of September 30, 2025 and December 31, 2024, respectively, were designated as pledged for public and trust deposits, short-term borrowings and for other purposes as provided by law.
In the three and nine months ended September 30, 2025, proceeds from sales of AFS securities were approximately $
2.39
billion and $
9.91
billion, respectively, primarily from sales of U.S. Treasury, agency MBS, non-U.S. agency and supranational securities. We recognized a pre-tax gain of $
1
million from these sales in both the three and nine months ended September 30, 2025.
The following tables present the aggregate fair values of AFS investment securities that have been in a continuous unrealized loss position for less than 12 months, and those that have been in a continuous unrealized loss position for 12 months or longer, as of the dates indicated:
| September 30, 2025 | |||||||||||||||||||||||||||||||||||
| Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||
| (In millions) |
Fair
Value |
Gross
Unrealized Losses |
Fair
Value |
Gross
Unrealized Losses |
Fair
Value |
Gross
Unrealized Losses |
|||||||||||||||||||||||||||||
| Available-for-sale: | |||||||||||||||||||||||||||||||||||
| U.S. Treasury and federal agencies: | |||||||||||||||||||||||||||||||||||
| Direct obligations | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Mortgage-backed securities |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total U.S. Treasury and federal agencies |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Non-U.S. debt securities: | |||||||||||||||||||||||||||||||||||
| Mortgage-backed securities |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Asset-backed securities |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Non-U.S. sovereign, supranational and non-U.S. agency |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Other |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total non-U.S. debt securities |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Asset-backed securities: | |||||||||||||||||||||||||||||||||||
| Student loans |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Collateralized loan obligations |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total asset-backed securities |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||
| (In millions) |
Fair
Value |
Gross
Unrealized Losses |
Fair
Value |
Gross
Unrealized Losses |
Fair
Value |
Gross
Unrealized Losses |
|||||||||||||||||||||||||||||
| Available-for-sale: | |||||||||||||||||||||||||||||||||||
| U.S. Treasury and federal agencies: | |||||||||||||||||||||||||||||||||||
| Direct obligations | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Mortgage-backed securities |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total U.S. Treasury and federal agencies |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Non-U.S. debt securities: | |||||||||||||||||||||||||||||||||||
| Mortgage-backed securities |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Asset-backed securities |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Non-U.S. sovereign, supranational and non-U.S. agency |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Other |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total non-U.S. debt securities |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Asset-backed securities: | |||||||||||||||||||||||||||||||||||
| Student loans |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Collateralized loan obligations |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total asset-backed securities |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| State and political subdivisions |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Other U.S. debt securities |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
State Street Corporation | 56
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
The following table presents the amortized cost and the fair value of contractual maturities of debt investment securities as of September 30, 2025. The maturities of certain ABS, MBS and collateralized mortgage obligations are based on expected principal payments. Actual maturities may differ from these expected maturities since certain borrowers have the right to prepay obligations with or without prepayment penalties.
| September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions) | Under 1 Year | 1 to 5 Years | 6 to 10 Years | Over 10 Years | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Available-for-sale: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Treasury and federal agencies: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Direct obligations | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||
| Mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total U.S. Treasury and federal agencies |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. debt securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Asset-backed securities |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. sovereign, supranational and non-U.S. agency |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Other |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total non-U.S. debt securities |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Asset-backed securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Student loans |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Collateralized loan obligations |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Non-agency CMBS and RMBS |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Other |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total asset-backed securities |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| State and political subdivisions |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Other U.S. debt securities |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||
| Held-to-maturity: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Treasury and federal agencies: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Direct obligations | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||
| Mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total U.S. Treasury and federal agencies |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. debt securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. sovereign, supranational and non-U.S. agency |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total non-U.S. debt securities |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Asset-backed securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Student loans |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total asset-backed securities |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||
Interest income related to debt securities is recognized in our consolidated statement of income using the effective interest method, or on a basis approximating a level rate of return over the contractual or estimated life of the security. The level rate of return considers any non-refundable fees or costs, as well as purchase premiums or discounts, adjusted as prepayments occur, resulting in amortization or accretion, accordingly.
State Street Corporation | 57
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Allowance for Credit Losses on Debt Securities and Impairment of AFS Securities
We conduct quarterly reviews of HTM and AFS securities on a collective (pool) basis when similar risk characteristics exist to determine whether an allowance for credit losses should be recognized. We review individual AFS securities periodically to assess if additional impairment is required. For additional information about the Current Expected Credit Loss methodology and the review of investment securities for expected credit losses or impairment, refer to pages 140 to 141 in Note 3 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
We monitor the credit quality of the HTM and AFS investment securities using a variety of methods, including both external and internal credit ratings. As of September 30, 2025, over
99
% of our HTM and AFS investment portfolio is publicly rated investment grade.
As of both September 30, 2025 and December 31, 2024, we had
no
allowance for credit losses on HTM and AFS investment securities. In the third quarter of 2025, we recorded
no
provision for credit losses and
no
charge-offs on HTM and AFS investment securities.
We have elected to not record an allowance on accrued interest for HTM and AFS securities. Accrued interest on these securities is reversed against interest income when payment on a security is delinquent for greater than 90 days from the date of payment.
After a review of the investment portfolio, taking into consideration then-current economic conditions, adverse situations that might affect our ability to fully collect principal and interest, the timing of future payments, the credit quality and performance of the collateral underlying MBS and ABS and other relevant factors, management considered the aggregate decline in fair value of the investment securities portfolio and the resulting gross pre-tax unrealized losses of $
4.44
billion related to
1,347
sec
urities as of September 30, 2025 to be primarily related to changes in interest rates, and not the result of any mate
rial changes in the credit characteristics of the securities. The unrealized loss has not been recognized as of September 30, 2025, as management did not have the intent to sell, nor was it more likely than not that we would be required to sell these securities before the expected recovery of their amortized cost basis.
Note 4.
Loans and Allowance for Credit Losses
We segregate our loans into
two
segments: commercial and financial loans and commercial real
estate loans. We further classify commercial and financial loans as fund finance loans, leveraged loans, collateralized loan obligations, overdrafts and other loans. These classifications reflect their risk characteristics, their initial measurement attributes and the methods we use to monitor and assess credit risk. For additional information on our loans, including our internal risk-rating system used to assess our risk of credit loss for each loan, refer to pages 141 to 146 in Note 4 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
The following table presents our recorded investment in loans, by segment, as of the dates indicated:
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||
|
Domestic
(1)
:
|
|||||||||||
| Commercial and financial: | |||||||||||
|
Fund finance
(2)
|
$ |
|
$ |
|
|||||||
| Leveraged loans |
|
|
|||||||||
| Overdrafts |
|
|
|||||||||
|
Collateralized loan obligations
|
|
|
|||||||||
|
Other
(3)
|
|
|
|||||||||
| Commercial real estate |
|
|
|||||||||
| Total domestic | $ |
|
$ |
|
|||||||
|
Foreign
(1)
:
|
|||||||||||
| Commercial and financial: | |||||||||||
|
Fund finance
(2)
|
$ |
|
$ |
|
|||||||
| Leveraged loans |
|
|
|||||||||
| Overdrafts |
|
|
|||||||||
|
Collateralized loan obligations
|
|
|
|||||||||
| Total foreign |
|
|
|||||||||
|
Total loans
(4)
|
|
|
|||||||||
| Allowance for credit losses |
(
|
(
|
|||||||||
| Loans, net of allowance | $ |
|
$ |
|
|||||||
(2)
Fund finance loans include primarily $
12.75
billion private equity capital call finance loans, $
7.48
billion loans to real money funds and $
1.62
billion loans to business development companies as of September 30, 2025, compared to $
11.54
billion private equity capital call finance loans, $
8.09
billion loans to real money funds and $
1.44
billion loans to business development companies as of December 31, 2024.
(3)
Includes $
2.39
billion securities finance loans and $
170
million loans to municipalities as of September 30, 2025 and $
3.01
billion securities finance loans and $
214
million loans to municipalities as of December 31, 2024.
(4)
As of September 30, 2025, excluding overdrafts, floating rate loans totaled $
41.20
billion and fixed rate loans totaled $
2.57
billion. We have entered into interest rate swap agreements to hedge the forecasted cash flows associated with EURIBOR indexed floating-rate loans. See Note 10 to the consolidated financial statements in our 2024 Form 10-K for additional details.
The commercial and financial segment is composed of primarily fund finance loans, purchased leveraged loans, collateralized loan obligations, overdrafts and other loans. Fund finance loans are composed of revolving credit lines providing liquidity and leverage to mutual fund and private equity fund clients. These classifications reflect their risk characteristics, their initial measurement attributes
State Street Corporation | 58
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
and the methods we use to monitor and assess credit risk.
Certain loans are pledged as collateral for access to the Federal Reserve's discount window. As of September 30, 2025 and December 31, 2024, the loans pledged as collateral totaled $
14.98
billion and $
13.90
billion, respectively.
As of September 30, 2025, we had
five
loans totaling $
232
million on non-accrual status, of which
two
loans totaling $
38
million were more than 90 days contractually past due. As of December 31, 2024, we had
two
loans totaling $
191
million, on non-accrual status, of which
one
loan totaling $
101
million was more than 90 days contractually past due.
In the third quarter of 2025, we originated $
0.54
billion of collateralized loan obligations, which were all investment grade.
We sold $
35
million of leveraged loans in the third quarter of 2025, of which $
15
million remained unsettled and was held-for-sale and carried at the lower of cost or market as of September 30, 2025. We recorded a charge-off against the allowance for these loans of $
1
million in the third quarter of 2025.
Allowance for Credit Losses
We recognize an allowance for credit losses in accordance with ASC 326 for financial assets held at amortized cost and off-balance sheet commitments. The allowance for credit losses is reviewed on a regular basis, and any provision for credit losses is recorded to reflect the amount necessary to maintain the allowance for expected credit losses at a level which represents what management does not expect to recover due to expected credit losses. For additional discussion on the allowance for credit losses for investment securities, please refer to Note 3 to the consolidated financial statements in this Form 10-Q.
When the allowance is recorded, a provision for credit loss expense is recognized in net income. The allowance for credit losses for financial assets (excluding investment securities, as discussed in Note 3) represents the portion of the amortized cost basis, including accrued interest for financial assets held at amortized cost, which management does not expect to recover due to expected credit losses and is presented on the statement of condition as an offset to the amortized cost basis. The accrued interest balance is presented separately on the statement of condition within accrued interest and fees receivable. The allowance for off-balance sheet commitments is presented within accrued expenses and other liabilities. Loans are charged off to the allowance for credit losses in the reporting period in which either an event occurs that confirms the existence of a loss on a loan, including a sale of a loan below its carrying
value, or a portion of a loan is determined to be uncollectible.
The allowance for credit losses may be determined using various methods, including discounted cash flow methods, loss-rate methods, probability-of-default methods, and other quantitative or qualitative methods as determined by us. The method used to estimate expected credit losses may vary depending on the type of financial asset, our ability to predict the timing of cash flows, and the information available to us.
The allowance for credit losses as reported in our consolidated statement of condition is adjusted by the provision for credit losses, which is reported in earnings, and reduced by the charge-off of principal amounts, net of recoveries.
We measure expected credit losses of financial assets on a collective (pool) basis when similar risk characteristics exist. Each reporting period, we assess whether the assets in the pool continue to display similar risk characteristics.
For a financial asset that does not share risk characteristics with other assets, expected credit losses are measured separately using one or more of the methods noted above. As of September 30, 2025, we had
four
loans totaling $
72
million in the commercial and financial segment and
five
loans totaling $
365
million in the commercial real estate segment that no longer met the similar risk characteristics of their collective pool. As of September 30, 2025, $
104
million of our allowance for credit losses was related to these loans.
When the asset is collateral-dependent, which means when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral, the allowance for credit losses are determined based on the fair value of the collateral, adjusted for the estimated costs to sell.
Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods, factors and forecasts then prevailing may result in significant changes in the allowance for credit losses in those future periods.
We estimate credit losses over the contractual life of the financial asset, while factoring in prepayment activity, where supported by data, over a three year reasonable and supportable forecast period. We utilize a baseline, upside and downside scenario which are applied based on a probability weighting, in order to better reflect management’s expectation of expected credit losses given existing market conditions and the changes in the economic environment. The multiple scenarios are based on a
State Street Corporation | 59
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
three-year horizon (or less depending on contractual maturity) and then revert linearly over a two-year period to a ten-year historical average thereafter. The contractual term excludes expected extensions, renewals and modifications, but includes prepayment assumptions where applicable.
As part of our allowance methodology, we establish qualitative reserves to address any risks inherent in our portfolio that are not addressed through our quantitative reserve assessment. These factors may relate to, among other things, legislation changes or new regulation, credit concentration, loan markets, scenario weighting and overall model limitations. The qualitative adjustments are applied to our portfolio of financial instruments under the existing governance structure and are inherently judgmental.
For additional information on the allowance for credit losses, refer to pages 141 to 146 in Note 4 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
Credit Quality
Credit quality for financial assets held at amortized cost is continuously monitored by management and is reflected within the allowance for credit losses.
We use an internal risk-rating system to assess our risk of credit loss for each loan. This risk-rating process incorporates the use of risk-rating tools in conjunction with management judgment. Qualitative and quantitative inputs are captured in a systematic manner, and following a formal review and approval process, an internal credit rating based on our credit scale is assigned.
When computing allowance levels, credit loss assumptions are estimated using models that categorize asset pools based on loss history, delinquency status and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall asset portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and credit loss expense in those future periods.
Credit quality is assessed and monitored by evaluating various attributes in order to enable timely detection of any concerns with the customer’s credit rating. The results of those evaluations are utilized in underwriting new loans and transactions with
counterparties and in our process for estimation of expected credit losses.
In assessing the risk rating assigned to each individual loan, among the factors considered are the borrower's debt capacity, collateral coverage, payment history and delinquency experience, financial flexibility and earnings strength, the expected amounts and source of repayment, the level and nature of contingencies, if any, and the industry and geography in which the borrower operates. These factors are based on an evaluation of historical and current information, and involve subjective assessment and interpretation. Credit counterparties are evaluated and risk-rated on an individual basis at least annually. Management considers the ratings to be current as of September 30, 2025.
Our internal risk rating methodology assigns risk ratings to counterparties ranging from Investment Grade, Sub-Investment Grade, Special Mention, Substandard, Doubtful and Loss.
•
Investment Grade: Counterparties with strong credit quality and low expected credit risk and probability of default. Approximately
88
% of our loans were rated as investment grade as of September 30, 2025 with external credit ratings, or equivalent, of "BBB-" or better.
•
Sub-Investment Grade (previously referred to as Speculative): Counterparties that have the ability to repay but face significant uncertainties, such as adverse business or financial circumstances that could affect credit risk or economic downturns. Loans to counterparties rated as sub-investment grade account for approximately
11
% of our loans as of September 30, 2025, and are concentrated in leveraged loans. Approximately
86
% of those leveraged loans have an external credit rating, or equivalent, of "BB" or "B" as of September 30, 2025.
•
Special Mention: Counterparties with potential weaknesses that, if uncorrected, may result in deterioration of repayment prospects.
•
Substandard: Counterparties with well-defined weakness that jeopardizes repayment with the possibility we will sustain some loss.
•
Doubtful: Counterparties with well-defined weakness which make collection or liquidation in full highly questionable and improbable.
•
Loss: Counterparties which are uncollectible or have little value.
State Street Corporation | 60
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
The following tables present our recorded investment in loans to counterparties by risk rating, as noted above, as of the dates indicated:
| September 30, 2025 | Commercial and Financial | Commercial Real Estate | Total Loans | ||||||||||||||
| (In millions) | |||||||||||||||||
| Investment grade | $ |
|
$ |
|
$ |
|
|||||||||||
|
Sub-investment grade
|
|
|
|
||||||||||||||
| Special mention |
|
|
|
||||||||||||||
| Substandard |
|
|
|
||||||||||||||
| Doubtful |
|
|
|
||||||||||||||
|
Total
(1)(2)
|
$ |
|
$ |
|
$ |
|
|||||||||||
| December 31, 2024 | Commercial and Financial | Commercial Real Estate | Total Loans | ||||||||||||||
| (In millions) | |||||||||||||||||
| Investment grade | $ |
|
$ |
|
$ |
|
|||||||||||
|
Sub-investment grade
|
|
|
|
||||||||||||||
| Special mention |
|
|
|
||||||||||||||
| Substandard |
|
|
|
||||||||||||||
| Doubtful |
|
|
|
||||||||||||||
|
Total
(1)(2)
|
$ |
|
$ |
|
$ |
|
|||||||||||
(1)
Loans include $
2.89
billion and $
1.98
billion of overdrafts as of September 30, 2025 and December 31, 2024, respectively. Overdrafts are short-term in nature and do not present a significant credit risk to us. As of September 30, 2025, $
2.76
billion overdrafts were investment grade and $
0.13
billion overdrafts were sub-investment grade.
(2)
Total does not include $
15
million and $
14
million of loans classified as held-for-sale as of September 30, 2025 and December 31, 2024, respectively.
For additional information about credit quality, refer to pages 142 to 146 in Note 4 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
The following table presents the amortized cost basis, by year of origination and credit quality indicator, as of September 30, 2025. For origination years before the fifth annual period, we present the aggregate amortized cost basis of loans. For purchased loans, the date of issuance is used to determine the year of origination, not the date of acquisition. For modified, extended or renewed lending arrangements, we evaluate whether a credit event has occurred which would consider the loan to be a new arrangement.
| (In millions) | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Revolving Loans |
Total
(1)
|
|||||||||||||||||||||||||||||||||||||||
| Domestic loans: | |||||||||||||||||||||||||||||||||||||||||||||||
| Commercial and financial: | |||||||||||||||||||||||||||||||||||||||||||||||
| Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||
| Investment grade | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
|
Sub-investment grade
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Special mention |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Substandard |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Total commercial and financing | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
| Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||||||||
| Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||
| Investment grade | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
|
Sub-investment grade
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Special mention |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Substandard |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Doubtful |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Total commercial real estate | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
| Non-U.S. loans: | |||||||||||||||||||||||||||||||||||||||||||||||
| Commercial and financial: | |||||||||||||||||||||||||||||||||||||||||||||||
| Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||
| Investment grade | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
|
Sub-investment grade
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Special mention |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Substandard |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Doubtful |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Total commercial and financing | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
|
Total loans
(2)
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
(1)
Any reserve associated with accrued interest is not material.
As of September 30, 2025, accrued interest receivable of $
334
million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.
(2)
Total does not include $
15
million of loans classified as held-for-sale as of September 30, 2025.
State Street Corporation | 61
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
The following table presents the amortized cost basis, by year of origination and credit quality indicator as of December 31, 2024:
| (In millions) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Loans |
Total
(1)
|
|||||||||||||||||||||||||||||||||||||||
| Domestic loans: | |||||||||||||||||||||||||||||||||||||||||||||||
| Commercial and financial: | |||||||||||||||||||||||||||||||||||||||||||||||
| Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||
| Investment grade | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
|
Sub-investment grade
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Special mention |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Substandard |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Total commercial and financing | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
| Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||||||||
| Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||
| Investment grade | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
|
Sub-investment grade
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Special mention |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Substandard |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Doubtful |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Total commercial real estate | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
| Non-U.S. loans: | |||||||||||||||||||||||||||||||||||||||||||||||
| Commercial and financial: | |||||||||||||||||||||||||||||||||||||||||||||||
| Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||
| Investment grade | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
|
Sub-investment grade
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Special mention |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Substandard |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Total commercial and financing | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
|
Total loans
(2)
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
(1)
Any reserve associated with accrued interest is not material. As of December 31, 2024, accrued interest receivable of $
327
million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.
(2)
Total does not include $
14
million of loans classified as held-for-sale as of December 31, 2024.
The following tables present the activity in the allowance for credit losses by portfolio and class for the periods indicated:
| Three Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||
| Commercial and Financial | |||||||||||||||||||||||||||||||||||
| (In millions) | Leveraged Loans |
Other Loans
(1)
|
Commercial Real Estate | Off-Balance Sheet Commitments | All Other | Total | |||||||||||||||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||||||||||||||||||||
| Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Provision |
|
(
|
|
(
|
(
|
|
|||||||||||||||||||||||||||||
| Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Nine Months Ended September 30, 2025 | |||||||||||||||||||||||||||||
| Commercial and Financial | |||||||||||||||||||||||||||||
| (In millions) | Leveraged Loans |
Other Loans
(1)
|
Commercial Real Estate | Off-Balance Sheet Commitments | Total | ||||||||||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||||||||||||||
| Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||
| Provision |
|
|
|
|
|
||||||||||||||||||||||||
|
Charge-offs
(2)
|
(
|
|
(
|
|
(
|
||||||||||||||||||||||||
| Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||
(1)
Includes $
4
million allowance for credit losses on fund finance loans and $
1
million on other loans.
(2)
Related to the restructuring of a commercial real estate loan and the sale of certain leveraged loans in the nine months ended September 30, 2025.
State Street Corporation | 62
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
| Three Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||
| Commercial and Financial | |||||||||||||||||||||||||||||||||||
| (In millions) | Leveraged Loans |
Other Loans
(1)
|
Commercial Real Estate | Held-to-Maturity Securities | Off-Balance Sheet Commitments | Total | |||||||||||||||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||||||||||||||||||||
| Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
|
Provision
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
(1)
Includes $
3
million allowance for credit losses on fund finance loans and $
1
million on other loans.
| Nine Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||
| Commercial and Financial | |||||||||||||||||||||||||||||||||||
| (In millions) | Leveraged Loans |
Other Loans
(1)
|
Commercial Real Estate | Held-to-Maturity Securities | Off-Balance Sheet Commitments | Total | |||||||||||||||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||||||||||||||||||||
| Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
||||||||||||||||||||||||
| Provision |
|
|
|
|
(
|
|
|||||||||||||||||||||||||||||
|
Charge-offs
(2)
|
(
|
|
(
|
|
|
(
|
|||||||||||||||||||||||||||||
| Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
(1)
Includes $
3
million allowance for credit losses on fund finance loans and $
1
million on other loans.
(2)
Related to the sale of commercial real estate and leveraged loans in the nine months ended September 30, 2024.
Loans are reviewed on a regular basis, and any provisions for credit losses that are recorded reflect management's estimate of the amount necessary to maintain the allowance for loan losses at a level considered appropriate to absorb expected credit losses in the loan portfolio. In the third quarter of 2025, we recorded a $
9
million provision for credit losses, compared to $
26
million in the same period of 2024, primarily reflecting the evolving macroeconomic environment and an increase in loan loss reserves associated with leveraged and commercial real estate loans.
Allowance estimates remain subject to continued model and economic uncertainty and management may use qualitative adjustments in the allowance estimates. If future data and forecasts deviate relative to the forecasts utilized to determine our allowance for credit losses as of September 30, 2025, or if credit risk migration is higher or lower than forecasted for reasons independent of the economic forecast, our allowance for credit losses will also change.
Note 5.
Goodwill and Other Intangible Assets
The following table presents changes in the carrying amount of goodwill during the periods indicated:
| (In millions) |
Investment
Servicing |
Investment
Management |
Total | ||||||||||||||
| Goodwill: | |||||||||||||||||
|
Ending balance December 31, 2023
|
$ |
|
$ |
|
$ |
|
|||||||||||
| Acquisitions |
|
|
|
||||||||||||||
| Foreign currency translation |
(
|
(
|
(
|
||||||||||||||
|
Ending balance December 31, 2024
|
|
|
|
||||||||||||||
|
Foreign currency translation and other, net
|
|
|
|
||||||||||||||
| Ending balance September 30, 2025 | $ |
|
$ |
|
$ |
|
|||||||||||
State Street Corporation | 63
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
The following table presents changes in the net carrying amount of other intangible assets during the periods indicated:
| (In millions) |
Investment
Servicing |
Investment
Management |
Total | ||||||||||||||
| Other intangible assets: | |||||||||||||||||
|
Ending balance December 31, 2023
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Acquisitions
|
|
|
|
||||||||||||||
| Amortization |
(
|
(
|
(
|
||||||||||||||
| Foreign currency translation |
(
|
|
(
|
||||||||||||||
|
Ending balance December 31, 2024
|
|
|
|
||||||||||||||
| Amortization |
(
|
(
|
(
|
||||||||||||||
| Foreign currency translation |
|
|
|
||||||||||||||
| Ending balance September 30, 2025 | $ |
|
$ |
|
$ |
|
|||||||||||
The following tables present the gross carrying amount, accumulated amortization and net carrying amount of other intangible assets by type as of the dates indicated:
| September 30, 2025 | |||||||||||||||||
|
Gross
Carrying Amount |
Accumulated
Amortization |
Net
Carrying Amount |
|||||||||||||||
| (In millions) | |||||||||||||||||
| Other intangible assets: | |||||||||||||||||
| Client relationships | $ |
|
$ |
(
|
$ |
|
|||||||||||
| Technology |
|
(
|
|
||||||||||||||
| Core deposits |
|
(
|
|
||||||||||||||
| Other |
|
(
|
|
||||||||||||||
| Total | $ |
|
$ |
(
|
$ |
|
|||||||||||
| December 31, 2024 | |||||||||||||||||
|
Gross
Carrying Amount |
Accumulated
Amortization |
Net
Carrying Amount |
|||||||||||||||
| (In millions) | |||||||||||||||||
| Other intangible assets: | |||||||||||||||||
| Client relationships | $ |
|
$ |
(
|
$ |
|
|||||||||||
| Technology |
|
(
|
|
||||||||||||||
| Core deposits |
|
(
|
|
||||||||||||||
| Other |
|
(
|
|
||||||||||||||
| Total | $ |
|
$ |
(
|
$ |
|
|||||||||||
Note 6.
Other Assets
The following table presents the components of other assets as of the dates indicated:
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||
|
Securities borrowed
(1)
|
$ |
|
$ |
|
|||||||
| Bank-owned life insurance |
|
|
|||||||||
| Derivative instruments, net |
|
|
|||||||||
|
Investments in joint ventures and other unconsolidated entities
(2)
|
|
|
|||||||||
| Collateral, net |
|
|
|||||||||
| Prepaid expenses |
|
|
|||||||||
| Right-of-use assets |
|
|
|||||||||
|
Deferred tax assets, net of valuation allowance
(3)
|
|
|
|||||||||
| Accounts receivable |
|
|
|||||||||
| Receivable for securities settlement |
|
|
|||||||||
| Income taxes receivable |
|
|
|||||||||
|
Other
(4)
|
|
|
|||||||||
| Total | $ |
|
$ |
|
|||||||
(1)
Refer to Note 8, for further information on the impact of collateral on our financial statement presentation of securities borrowing and securities lending transactions.
(2)
Includes equity securities without readily determinable fair values that are accounted for under the ASC 321 measurement alternative
of $
479
million a
nd $
341
million as of September 30, 2025 and December 31, 2024, respectively. For the
nine months ended September 30, 2025,
no
impairments were recognized in other fee
revenue related to such equity securities.
(3)
Deferred tax assets and liabilities recorded in our consolidated statement of condition are netted within the same tax jurisdiction.
(4)
Includes advances
of $
1.66
billion and
$
1.04
billion as of September 30, 2025 and December 31, 2024, respectively.
State Street Corporation | 64
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note 7.
Derivative Financial Instruments
We use derivative financial instruments to support our clients' needs and to manage our interest rate, currency and other market risks. These financial instruments consist of FX contracts such as forwards, futures and options contracts; interest rate contracts such as interest rate swaps (cross currency and single currency) and futures; and other derivative contracts. Derivative instruments used for risk management purposes that are highly effective in offsetting the risk being hedged are generally designated as hedging instruments in hedge accounting relationships, while others are economic hedges and not designated in hedge accounting relationships. For additional information on our use and accounting policies on derivative financial instruments, including derivatives not designated as hedging instruments, refer to page 150 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
Derivatives Designated as Hedging Instruments
For additional information on our derivatives designated as hedging instruments, including our risk management objectives and hedging documentation methodologies, refer to pages 150 and 151 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
Fair Value Hedges
Derivatives designated as fair value hedges are utilized to mitigate the risk of changes in the fair values of recognized assets and liabilities, including long-term debt and AFS securities. We use interest rate and FX contracts in this manner to manage our exposure to changes in the fair value of hedged items caused by changes in interest rates and FX rates, respectively.
Changes in the fair value of the derivative and changes in fair value of the hedged item due to changes in the hedged risk are recognized in earnings in the same line item. If a hedge is terminated, but the hedged item was not derecognized, all remaining adjustments to the carrying amount of the hedged item are amortized over a period that is consistent with the amortization of other discounts or premiums associated with the hedged item
.
Cash Flow Hedges
Derivatives designated as cash flow hedges are utilized to offset the variability of cash flows of recognized assets, liabilities or forecasted transactions. We have entered into FX contracts to hedge the change in cash flows attributable to FX movements in foreign currency denominated investment securities. Additionally, we have entered into interest rate swap agreements to hedge the forecasted cash flows associated with EURIBOR indexed floating-rate loans and Deposit Facility Interest Rate (DFR) indexed ECB deposits. The interest rate swaps synthetically convert the interest receipts from a variable-rate to a fixed-rate, thereby mitigating the risk attributable to changes in the EURIBOR and DFR.
Changes in fair value of the derivatives designated as cash flow hedges are initially recorded in AOCI and then reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings and are presented in the same income statement line item as the earnings effect of the hedged item. If the hedge relationship is terminated, the change in fair value on the derivative recorded in AOCI is reclassified into earnings consistent with the timing of the hedged item. During the third quarter of 2025 approximately $
37
million of net losses associated with terminated cash flow hedges were reclassified from AOCI, and we expect net losses of approximately $
31
million to be reclassified from AOCI in the fourth quarter of 2025. The
net loss associated with all cash flow hedges expected to be reclassified from AOCI within 12 months of
September 30, 2025
is approximately
$
71
million, which includes a net loss of approximately $
80
million related to terminated hedges. These losses could differ from amounts recognized in future periods due to changes in interest rates, hedge de-designations or the addition of other hedges after September 30, 2025. For hedge relationships that are discontinued because a forecasted transaction is not expected to occur according to the original hedge terms, any related derivative values recorded in AOCI are immediately recognized in earnings. The maximum length of time over which forecasted cash flows are hedge
d is
five
years
.
Net Investment Hedges
Derivatives categorized as net investment hedges are entered into to protect the net investment in our foreign operations against adverse changes in exchange rates. We use FX forward contracts to convert the foreign currency risk to U.S. dollars to mitigate our exposure to fluctuations in FX rates. The changes in fair value of the FX forward contracts are recorded, net of taxes, in the foreign currency translation component of other comprehensive income (OCI).
State Street Corporation | 65
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments, including those entered into for trading and asset and liability management activities as of the dates indicated:
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||
| Derivatives not designated as hedging instruments: | |||||||||||
| Interest rate contracts: | |||||||||||
| Futures | $ |
|
$ |
|
|||||||
| Foreign exchange contracts: | |||||||||||
| Forward, swap and spot |
|
|
|||||||||
| Options purchased |
|
|
|||||||||
| Options written |
|
|
|||||||||
| Futures |
|
|
|||||||||
| Other: | |||||||||||
| Futures |
|
|
|||||||||
|
Stable value contracts
(1)
|
|
|
|||||||||
|
Deferred value awards
(2)
|
|
|
|||||||||
| Derivatives designated as hedging instruments: | |||||||||||
| Interest rate contracts: | |||||||||||
| Swap agreements |
|
|
|||||||||
| Foreign exchange contracts: | |||||||||||
| Forward and swap |
|
|
|||||||||
(1)
The notional value of the stable value contracts represents our maximum exposure. However, exposure to various stable value contracts is generally contractually limited to substantially lower amounts than the notional values.
(2)
Represents grants of deferred value awards to employees; refer to page 151 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
Notional amounts are provided here as an indication of the volume of our derivative activity and serve as a reference to calculate the fair values of the derivative.
The following table presents the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is provided in Note 8.
|
Derivative Assets
(1)
|
Derivative Liabilities
(2)
|
||||||||||||||||||||||
| (In millions) | September 30, 2025 | December 31, 2024 | September 30, 2025 | December 31, 2024 | |||||||||||||||||||
| Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
| Foreign exchange contracts | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Other derivative contracts |
|
|
|
|
|||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Derivatives designated as hedging instruments: | |||||||||||||||||||||||
| Foreign exchange contracts | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Interest rate contracts |
|
|
|
|
|||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
(1)
Derivative assets are included within other assets in our consolidated statement of condition.
(2)
Derivative liabilities are included within accrued expenses and other liabilities in our consolidated statement of condition.
The following table presents the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||
| (In millions) | Location of Gain (Loss) on Derivative in Consolidated Statement of Income | Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income | |||||||||||||||||||||||||||
| Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||
| Foreign exchange contracts | Foreign exchange trading services revenue | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||
| Foreign exchange contracts | Interest expense |
|
|
|
|
||||||||||||||||||||||||
| Interest rate contracts | Foreign exchange trading services revenue |
(
|
|
|
|
||||||||||||||||||||||||
| Other derivative contracts | Other fee revenue |
(
|
(
|
(
|
(
|
||||||||||||||||||||||||
| Other derivative contracts | Compensation and employee benefits |
(
|
(
|
(
|
(
|
||||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||
State Street Corporation | 66
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
The following table shows the carrying amount and associated cumulative basis adjustments related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships:
| September 30, 2025 | |||||||||||||||||
| Cumulative Fair Value Hedging Adjustment Increasing (Decreasing) the Carrying Amount | |||||||||||||||||
| (In millions) | Carrying Amount of Hedged Assets/Liabilities | Active |
De-designated
(1)
|
||||||||||||||
| Long-term debt | $ |
|
$ |
(
|
$ |
|
|||||||||||
|
Available-for-sale securities
(2)(3)
|
|
|
|
||||||||||||||
| December 31, 2024 | |||||||||||||||||
| Cumulative Fair Value Hedging Adjustment Increasing (Decreasing) the Carrying Amount | |||||||||||||||||
| (In millions) | Carrying Amount of Hedged Assets/Liabilities | Active |
De-designated
(1)
|
||||||||||||||
| Long-term debt | $ |
|
$ |
(
|
$ |
|
|||||||||||
|
Available-for-sale securities
(2)(3)
|
|
(
|
|
||||||||||||||
(1)
Represents hedged items no longer designated in qualifying fair value hedging relationships for which an associated basis adjustment exists at the balance sheet date.
(2)
Included in these amounts is the amortized cost of the financial assets designated under the portfolio layer hedging relationships (hedged item is the hedged layer of a closed portfolio of financial assets expected to remain outstanding at the end of the hedging relationship). At September 30, 2025 and December 31, 2024, the amortized cost of the closed portfolios used in these hedging relationships was $
3.59
billion and $
3.32
billion, respectively, of which $
1.82
billion and $
1.82
billion, respectively, was designated under the portfolio layer hedging relationship for both periods. At September 30, 2025 and December 31, 2024, the cumulative adjustment associated with these hedging relationships was $
29
million and ($
26
) million, respectively.
(3)
Carrying amount represents amortized cost.
As of September 30, 2025 and December 31, 2024, the total notional amount of the interest rate swaps of fair value hedges was $
34.15
billion and $
31.12
billion, respectively.
The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated:
| Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||
| (In millions) | Location of Gain (Loss) on Derivative in Consolidated Statement of Income |
Amount of Gain
(Loss) on Derivative Recognized in Consolidated Statement of Income |
Hedged Item in Fair Value Hedging Relationship | Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income |
Amount of Gain
(Loss) on Hedged Item Recognized in Consolidated Statement of Income |
||||||||||||||||||||||||||||||||||||
| Derivatives designated as fair value hedges: | |||||||||||||||||||||||||||||||||||||||||
| Interest rate contracts | Net interest income | $ |
(
|
$ |
(
|
Available-for-sale securities
(1)
|
Net interest income
|
$ |
|
$ |
|
||||||||||||||||||||||||||||||
| Interest rate contracts | Net interest income |
|
|
Long-term debt | Net interest income |
(
|
(
|
||||||||||||||||||||||||||||||||||
| Foreign exchange contracts | Other fee revenue |
(
|
|
Available-for-sale securities
|
Other fee revenue |
|
(
|
||||||||||||||||||||||||||||||||||
| Total | $ |
(
|
$ |
(
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||
| (In millions) | Location of Gain (Loss) on Derivative in Consolidated Statement of Income |
Amount of Gain
(Loss) on Derivative Recognized in Consolidated Statement of Income |
Hedged Item in Fair Value Hedging Relationship | Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income |
Amount of Gain
(Loss) on Hedged Item Recognized in Consolidated Statement of Income |
||||||||||||||||||||||||||||||||||||
| Derivatives designated as fair value hedges: | |||||||||||||||||||||||||||||||||||||||||
| Interest rate contracts | Net interest income | $ |
(
|
$ |
(
|
Available-for-sale securities
(2)
|
Net interest income | $ |
|
$ |
|
||||||||||||||||||||||||||||||
| Interest rate contracts | Net interest income |
|
|
Long-term debt | Net interest income |
(
|
(
|
||||||||||||||||||||||||||||||||||
| Foreign exchange contracts | Other fee revenue |
(
|
|
Available-for-sale securities
|
Other fee revenue |
|
(
|
||||||||||||||||||||||||||||||||||
| Total | $ |
(
|
$ |
(
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||
(1
)
In the three months ended September 30, 2025, approximately $
31
million of net unrealized losses on AFS investment securities designated in fair value hedges were recognized in OCI compared to $
436
million of net unrealized losses in the same period of 2024.
(2
)
In the nine months ended September 30, 2025, approximately $
351
million of net unrealized losses on AFS investment securities designated in fair value hedges were recognized in OCI compared to $
404
million of net unrealized losses in the same period of 2024.
State Street Corporation | 67
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
| Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||||||||
| 2025 | 2024 | Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 2025 | 2024 | |||||||||||||||||||||||||
| (In millions) | Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative | Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | |||||||||||||||||||||||||||
| Derivatives designated as cash flow hedges: | |||||||||||||||||||||||||||||
|
Interest rate contracts
(1)
|
$ |
(
|
$ |
|
Net interest income | $ |
(
|
$ |
(
|
||||||||||||||||||||
| Total derivatives designated as cash flow hedges | $ |
(
|
$ |
|
$ |
(
|
$ |
(
|
|||||||||||||||||||||
| Derivatives designated as net investment hedges: | |||||||||||||||||||||||||||||
| Foreign exchange contracts | $ |
|
$ |
(
|
$ |
|
$ |
|
|||||||||||||||||||||
| Total derivatives designated as net investment hedges |
|
(
|
|
|
|||||||||||||||||||||||||
| Total | $ |
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||||||||||||||||
| Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||
| (In millions) | Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative | Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | ||||||||||||||||||||||||||
| Derivatives designated as cash flow hedges: | |||||||||||||||||||||||||||||
|
Interest rate contracts
(1)
|
$ |
(
|
$ |
(
|
Net interest income | $ |
(
|
$ |
(
|
||||||||||||||||||||
| Foreign exchange contracts |
|
|
Net interest income |
|
|
||||||||||||||||||||||||
| Total derivatives designated as cash flow hedges | $ |
(
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||||
| Derivatives designated as net investment hedges: | |||||||||||||||||||||||||||||
| Foreign exchange contracts | $ |
(
|
$ |
(
|
$ |
|
$ |
|
|||||||||||||||||||||
| Total derivatives designated as net investment hedges |
(
|
(
|
|
|
|||||||||||||||||||||||||
| Total | $ |
(
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||||
(1)
As of September 30, 2025, the maximum maturity date of the underlying hedged items is approximately
5.0
years.
Derivatives Netting and Credit Contingencies
Netting
Derivatives receivable and payable as well as cash collateral from the same counterparty are netted in the consolidated statement of condition for those counterparties with whom we have legally binding master netting agreements in place. In addition to cash collateral received and transferred presented on a net basis, we also receive and transfer collateral in the form of securities, which mitigate credit risk but are not eligible for netting. Additional information on netting is provided in Note 8.
Credit Contingencies
Certain of our derivatives are subject to master netting agreements with our derivative counterparties containing credit risk-related contingent features, which requires us to maintain an investment grade credit rating with the various credit rating agencies. If our rating falls below investment grade, we would be in violation of the provisions, and counterparties to the derivatives could request immediate payment or demand full overnight collateralization on derivative instruments in liability positions. The aggregate fair value of all derivatives with credit contingent features and in a net liability position as of September 30, 2025 totaled approximately $
2.61
billion, against which we provided $
1.08
billion of collateral in the normal course of business. If our credit related contingent features underlying these agreements were triggered as of September 30, 2025, the maximum additional collateral we would be required to post to our counterparties is approximately $
1.53
billion.
Note 8.
Offsetting Arrangements
For additional information on our offsetting arrangements, refer to page 154 in Note 11 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
As of September 30, 2025 and December 31, 2024, the value of securities received as collateral from third parties where we are permitted to transfer or re-pledge the securities totaled $
15.35
billion and $
11.41
billion, respectively, and the fair value of the portion that had been transferred or re-pledged as of the same dates was $
10.39
billion and $
2.76
billion, respectively
.
State Street Corporation | 68
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
The following tables present information about the offsetting of assets related to derivative contracts and secured financing transactions, as of the dates indicated:
| Assets: | September 30, 2025 | ||||||||||||||||||||||||||||
|
Gross Amounts of Recognized
Assets
(1)(2)
|
Gross Amounts Offset in Statement of Condition
(3)
|
Net Amounts of Assets Presented in Statement of Condition | Gross Amounts Not Offset in Statement of Condition | ||||||||||||||||||||||||||
| (In millions) |
Cash and Securities Received
(4)
|
Net Amount
(5)
|
|||||||||||||||||||||||||||
| Derivatives: | |||||||||||||||||||||||||||||
| Foreign exchange contracts | $ |
|
$ |
(
|
$ |
|
$ | — | $ |
|
|||||||||||||||||||
|
Interest rate contracts
(6)
|
|
(
|
|
— |
|
||||||||||||||||||||||||
| Cash collateral and securities netting | NA |
(
|
(
|
(
|
(
|
||||||||||||||||||||||||
| Total derivatives |
|
(
|
|
(
|
|
||||||||||||||||||||||||
| Other financial instruments: | |||||||||||||||||||||||||||||
|
Resale agreements and securities borrowing
(7)(8)
|
|
(
|
|
(
|
|
||||||||||||||||||||||||
| Total derivatives and other financial instruments | $ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||
| Assets: | December 31, 2024 | ||||||||||||||||||||||||||||
|
Gross Amounts of Recognized
Assets
(1)(2)
|
Gross Amounts Offset in Statement of Condition
(3)
|
Net Amounts of Assets Presented in Statement of Condition | Gross Amounts Not Offset in Statement of Condition | ||||||||||||||||||||||||||
| (In millions) |
Cash and Securities Received
(4)
|
Net Amount
(5)
|
|||||||||||||||||||||||||||
| Derivatives: | |||||||||||||||||||||||||||||
| Foreign exchange contracts | $ |
|
$ |
(
|
$ |
|
$ | — | $ |
|
|||||||||||||||||||
|
Interest rate contracts
(6)
|
|
(
|
|
— |
|
||||||||||||||||||||||||
| Other derivative contracts |
|
|
|
— |
|
||||||||||||||||||||||||
| Cash collateral and securities netting | NA |
(
|
(
|
(
|
(
|
||||||||||||||||||||||||
| Total derivatives |
|
(
|
|
(
|
|
||||||||||||||||||||||||
| Other financial instruments: | |||||||||||||||||||||||||||||
|
Resale agreements and securities borrowing
(7)(8)
|
|
(
|
|
(
|
|
||||||||||||||||||||||||
| Total derivatives and other financial instruments | $ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||
(1)
Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement.
(2)
Refer to Note 1 and Note 2 for additional information about the measurement basis of derivative instruments.
(3)
Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition.
(4)
Includes securities in connection with our securities borrowing transactions.
(5)
Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements.
(6)
Variation margin payments presented as settlements rather than collateral.
(7)
Included in the $
49.79
billion as of September 30, 2025 were $
7.73
billion of resale agreements and $
42.06
billion of collateral provided related to securities borrowing. Included in the $
44.13
billion as of December 31, 2024 were $
6.68
billion of resale agreements and $
37.45
billion of collateral provided related to securities borrowing. Resale agreements and collateral provided related to securities borrowing were recorded in securities purchased under resale agreements and other assets, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions.
(8)
Offsetting of resale agreements primarily relates to our involvement in FICC, where we settle transactions on a net basis for payment and delivery through the Fedwire system.
NA
Not applicable
The following tables present information about the offsetting of liabilities related to derivative contracts and secured financing transactions, as of the dates indicated:
| Liabilities: | September 30, 2025 | ||||||||||||||||||||||||||||
|
Gross Amounts of Recognized Liabilities
(1)(2)
|
Gross Amounts Offset in Statement of Condition
(3)
|
Net Amounts of Liabilities Presented in Statement of Condition | Gross Amounts Not Offset in Statement of Condition | ||||||||||||||||||||||||||
| (In millions) |
Cash and Securities Received
(4)
|
Net Amount
(5)
|
|||||||||||||||||||||||||||
| Derivatives: | |||||||||||||||||||||||||||||
| Foreign exchange contracts | $ |
|
$ |
(
|
$ |
|
$ | — | $ |
|
|||||||||||||||||||
|
Interest rate contracts
(6)
|
|
(
|
|
— |
|
||||||||||||||||||||||||
| Other derivative contracts |
|
|
|
— |
|
||||||||||||||||||||||||
| Cash collateral and securities netting | NA |
(
|
(
|
(
|
(
|
||||||||||||||||||||||||
| Total derivatives |
|
(
|
|
(
|
|
||||||||||||||||||||||||
| Other financial instruments: | |||||||||||||||||||||||||||||
|
Repurchase agreements and securities lending
(7)(8)
|
|
(
|
|
(
|
|
||||||||||||||||||||||||
| Total derivatives and other financial instruments | $ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||
State Street Corporation | 69
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
| Liabilities: | December 31, 2024 | ||||||||||||||||||||||||||||
|
Gross Amounts of Recognized Liabilities
(1)(2)
|
Gross Amounts Offset in Statement of Condition
(3)
|
Net Amounts of Liabilities Presented in Statement of Condition | Gross Amounts Not Offset in Statement of Condition | ||||||||||||||||||||||||||
| (In millions) |
Cash and Securities Received
(4)
|
Net Amount
(5)
|
|||||||||||||||||||||||||||
| Derivatives: | |||||||||||||||||||||||||||||
| Foreign exchange contracts | $ |
|
$ |
(
|
$ |
|
$ | — | $ |
|
|||||||||||||||||||
|
Interest rate contracts
(6)
|
|
(
|
|
— |
|
||||||||||||||||||||||||
| Other derivative contracts |
|
|
|
— |
|
||||||||||||||||||||||||
| Cash collateral and securities netting | NA |
(
|
(
|
(
|
(
|
||||||||||||||||||||||||
| Total derivatives |
|
(
|
|
(
|
|
||||||||||||||||||||||||
| Other financial instruments: | |||||||||||||||||||||||||||||
|
Repurchase agreements and securities lending
(7)(8)
|
|
(
|
|
(
|
|
||||||||||||||||||||||||
| Total derivatives and other financial instruments | $ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||
(1)
Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement.
(2)
Refer to Note 1 and Note 2 for additional information about the measurement basis of derivative instruments.
(3)
Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition.
(4)
Includes securities provided in connection with our securities lending transactions.
(5)
Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements.
(6)
Variation margin payments presented as settlements rather than collateral.
(7)
Included in the $
16.59
billion as of September 30, 2025 were $
0.21
billion of repurchase agreements and $
16.38
billion of collateral received related to securities lending transactions. Included in the $
18.01
billion as of December 31, 2024 were $
3.68
billion of repurchase agreements and $
14.33
billion of collateral received related to securities lending transactions. Repurchase agreements and collateral received related to securities lending were recorded in securities sold under repurchase agreements and accrued expenses and other liabilities, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions.
(8)
Offsetting of repurchase agreements primarily relates to our involvement in FICC, where we settle transactions on a net basis for payment and delivery through the Fedwire system.
NA
Not applicable
The securities transferred under resale and repurchase agreements typically are U.S. Treasury, agency and agency MBS. In our principal securities borrowing and lending arrangements, the securities transferred are predominantly equity securities and some corporate debt securities. The fair value of the securities transferred may increase in value to an amount greater than the amount received under our repurchase and securities lending arrangements, which exposes us to counterparty risk. We require the review of the price of the underlying securities in relation to the carrying value of the repurchase agreements and securities lending arrangements on a daily basis and when appropriate, adjust the cash or security to be obtained or returned to counterparties that is reflective of the required collateral levels.
The following table summarizes our repurchase agreements and securities lending transactions by category of collateral pledged and remaining maturity of these agreements, as of the periods indicated:
| As of September 30, 2025 | As of December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions) | Overnight and Continuous | Up to 30 Days | 30-90 days | Greater than 90 Days | Total | Overnight and Continuous | Up to 30 Days | 30-90 days | Greater than 90 Days | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
| Repurchase agreements: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Treasury and agency securities | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||
| Total |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Securities lending transactions: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| US Treasury and agency securities |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate debt securities |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Equity securities |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Other
(1)
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Gross amount of recognized liabilities for repurchase agreements and securities lending | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||
(1)
Represents a security interest in underlying client assets related to our prime services business, which clients have allowed us to transfer and re-pledge.
State Street Corporation | 70
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note 9.
Commitments and Guarantees
For additional information on the nature of the obligations and related business activities for our commitments and guarantees, refer to page 157 in Note 12 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
The following table presents the aggregate gross contractual amounts of our off-balance sheet commitments and guarantees, as of the dates indicated:
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||
| Commitments: | |||||||||||
| Unfunded credit facilities | $ |
|
$ |
|
|||||||
|
Guarantees
(1)
:
|
|||||||||||
| Indemnified securities financing | $ |
|
$ |
|
|||||||
| Standby letters of credit |
|
|
|||||||||
(1)
The potential losses associated with these guarantees equal the gross contractual amounts and do not consider the value of any collateral or reflect any participations to independent third parties.
Approximately
70
% and
75
% of our unfunded commitments to extend credit expire within
one year
as of September 30, 2025 and December 31, 2024, respectively.
Indemnified Securities Financing
For additional information on our indemnified securities financing, refer to page 157 in Note 12 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
The following table summarizes the aggregate fair values of indemnified securities financing and related collateral, as well as collateral invested in indemnified repurchase agreements, as of the dates indicated:
| (In millions) | September 30, 2025 | December 31, 2024 | |||||||||
| Fair value of indemnified securities financing | $ |
|
$ |
|
|||||||
| Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing |
|
|
|||||||||
| Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements |
|
|
|||||||||
| Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements |
|
|
|||||||||
In certain cases, we participate in securities finance transactions as a principal. As a principal, we borrow securities from the lending client and then lend such securities to the subsequent borrower, either our client or a broker/dealer. Our right to receive and obligation to return collateral in connection with our securities lending transactions are recorded in other assets and accrued expenses and other liabilities, respectively, in our consolidated statement of condition. As of September 30, 2025 and
December 31, 2024, we had approximately $
42.06
billion and $
37.45
billion, respectively, of collateral provided and approximately $
16.38
billion and $
14.33
billion, respectively, of collateral received from clients in connection with our participation in principal securities finance transactions.
FICC Guarantee
As a sponsoring member in the FICC member program, we provide a guarantee to FICC in the event a customer fails to perform its obligations under a transaction. In order to minimize the risk associated with this guarantee, sponsored members acting as buyers generally grant a security interest in the subject securities received under and held on their behalf by State Street.
Additionally, as a member of certain industry clearing and settlement exchanges, we may be required to pay a pro rata share of the losses incurred by the organization and provide liquidity support in the event of the default of another member to the extent that the defaulting member’s clearing fund obligation and the prescribed loss allocation is depleted. It is difficult to estimate our maximum possible exposure under the membership agreements, since this would require an assessment of future claims that may be made against us that have not yet occurred. At both September 30, 2025 and December 31, 2024, we did not record any liabilities under these arrangements.
For additional information on our repurchase and reverse repurchase agreements, please refer to Note 8 to the consolidated financial statements in this Form 10-Q.
Note 10.
Contingencies
Legal and Regulatory Matters
In the ordinary course of business, we and our subsidiaries are involved in disputes, litigation, and governmental or regulatory inquiries and investigations, both pending and threatened. These matters, if resolved adversely against us or settled, may result in monetary awards or payments, fines and penalties or require changes in our business practices. The resolution or settlement of these matters is inherently difficult to predict. Based on our assessment of these pending matters, we do not believe that the amount of any judgment, settlement or other action arising from any pending matter is likely to have a material adverse effect on our consolidated financial condition. However, an adverse outcome or development in certain of the matters described below could have a material adverse effect on our consolidated results of operations for the period in which such matter is resolved, or an accrual is determined to be required, on our consolidated financial condition, or on our reputation.
State Street Corporation | 71
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
We evaluate our needs for accruals of loss contingencies related to legal and regulatory proceedings on a case-by-case basis. When we have a liability that we deem probable, and we deem the amount of such liability can be reasonably estimated as of the date of our consolidated financial statements, we accrue our estimate of the amount of loss. We also consider a loss probable and establish an accrual when we make, or intend to make, an offer of settlement. Once established, an accrual is subject to subsequent adjustment as a result of additional information. The resolution of legal and regulatory proceedings and the amount of reasonably estimable loss (or range thereof) are inherently difficult to predict, especially in the early stages of proceedings. Even if a loss is probable, an amount (or range) of loss might not be reasonably estimated until the later stages of the proceeding due to many factors such as the presence of complex or novel legal theories, the discretion of governmental authorities in seeking sanctions or negotiating resolutions in civil and criminal matters, the pace and timing of discovery and other assessments of facts and the procedural posture of the matter (collectively, "factors influencing reasonable estimates").
As of September 30, 2025, our aggregate accruals for loss contingencies for legal, regulatory and related matters totaled approximately $
5
million, including potential fines by government agencies and civil litigation with respect to the matters specifically discussed below. To the extent that we have established accruals in our consolidated statement of condition for probable loss contingencies, such accruals may not be sufficient to cover our ultimate financial exposure associated with any settlements or judgments. Any such ultimate financial exposure, or proceedings to which we may become subject in the future, could have a material adverse effect on our businesses, on our future consolidated financial statements or on our reputation.
As of September 30, 2025, for those matters for which we have accrued probable loss contingencies and for other matters for which loss is reasonably possible (but not probable) in future periods, and for which we are able to estimate a range of reasonably possible loss, our estimate of the aggregate reasonably possible loss (in excess of any accrued amounts) ranges up to approximately $
40
million. Our estimate with respect to the aggregate reasonably possible loss is based upon currently available information and is subject to significant judgment and a variety of assumptions and known and unknown uncertainties, which may change quickly and significantly from time to time, particularly if and as we engage with applicable governmental agencies or plaintiffs in connection with a proceeding. Also, the matters underlying the reasonably possible loss will
change from time to time. As a result, actual results may vary significantly from the current estimate.
In certain pending matters, it is not currently feasible to reasonably estimate the amount or a range of reasonably possible loss, and such losses, which may be significant, are not included in the estimate of reasonably possible loss discussed above. This is due to, among other factors, the factors influencing reasonable estimates described above. An adverse outcome in one or more of the matters for which we have not estimated the amount or a range of reasonably possible loss, individually or in the aggregate, could have a material adverse effect on our businesses, on our future consolidated financial statements or on our reputation. Given that our actual losses from any legal or regulatory proceeding for which we have provided an estimate of the reasonably possible loss could significantly exceed such estimate, and given that we cannot estimate reasonably possible loss for all legal and regulatory proceedings as to which we may be subject now or in the future, no conclusion as to our ultimate exposure from current pending or potential legal or regulatory proceedings should be drawn from the current estimate of reasonably possible loss.
The following discussion provides information with respect to significant legal, governmental and regulatory matters.
Edmar Financial Company, LLC et al v. Currenex, Inc. et al
In August 2021,
two
former Currenex clients filed a putative civil class action lawsuit in the Southern District of New York alleging antitrust violations, fraud and a civil Racketeer Influenced and Corrupt Organization Act violation against Currenex, State Street and others.
Pension Risk Transfer Litigation
State Street Global Advisors Trust Company (Trust Co) is named as a defendant in a series of purported class action complaints filed by participants in pension plans where, in each case, Trust Co was hired as independent fiduciary on behalf of the pension plan to conduct an ERISA-compliant due diligence review of potential insurers who could assume the plan’s liabilities and satisfy its payment obligations through the purchase of a group annuity contract, consistent with DOL guidance. The complaints, collectively, allege violations of ERISA’s fiduciary and prohibited transaction rules against Trust Co, the plan sponsors, and others.
German Tax Matter
In connection with a routine audit including the period 2013-2015, German tax authorities have determined that State Street should have withheld, and is secondarily liable for, certain taxes on
State Street Corporation | 72
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
dividends paid on securities of German issuers held as collateral over dividend record dates in client lending transactions with counterparties outside of Germany. This determination is subject to review in proceedings in which State Street will in due course contest these conclusions, in addition to separately seeking relief from those determined to be primarily liable.
State of Texas et al v. Blackrock, Inc. et al
In November 2024,
eleven
state Attorneys General filed a complaint in Federal Court in the Eastern District of Texas against State Street, BlackRock and Vanguard, alleging antitrust violations on the theory that the
three
companies conspired to artificially suppress coal supply, resulting in harm to American consumers in the form of higher electricity costs.
Income Taxes
In determining our provision for income taxes, we make certain judgments and interpretations with respect to tax laws in jurisdictions in which we have business operations. Because of the complex nature of these laws, in the normal course of our business, we are subject to challenges from U.S. and non-U.S. income tax authorities regarding the amount of income taxes due. These challenges may result in adjustments to the timing or amount of taxable income or deductions or the allocation of taxable income among tax jurisdictions. We recognize a tax benefit when it is more likely than not that our position will result in a tax deduction or credit. Unrecognized tax benefits were approximately $
239
million and $
237
million as of September 30, 2025 and December 31, 2024, respectively.
We are presently under audit by a number of tax authorities.
The earliest tax year open to examination in jurisdictions where we have material operations is 2017. Management believes that we have sufficiently accrued liabilities as of September 30, 2025 for potential tax exposures.
Note 11.
Variable Interest Entities
For additional information on our accounting policy and our use of variable interest entities (VIEs), refer to pages 159 to 161 in Note 14 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, "Variable Interest Entities", in our 2024 Form 10-K.
Interests in Investment Funds
As of both September 30, 2025 and December 31, 2024, we had
no
c
onsolidated funds. As of both
September 30, 2025
and
December 31, 2024, we managed certain funds, considered VIEs, in which we held a variable interest, but for which we were not deemed to be the primary beneficiary. Our potential maximum loss exposure related to these unconsolidated funds totaled $
22
million and $
19
million as of September 30, 2025 and December 31, 2024, respectively, and represented the carrying value of our investments, which are recorded in other assets in our consolidated statement of condition. The amount of loss we may recognize during any period is limited to the carrying amount of our investments in the unconsolidated funds.
We also held investments in low-income housing, production and investment tax credit entities, considered VIEs for which we were not deemed to be the primary beneficiary. As of September 30, 2025 and December 31, 2024, our potential maximum loss exposure related to these unconsolidated entities totaled $
0.96
billion
and $
1.10
billion, respectively, most of which represented the carrying value of our investments which are recorded in other assets in our consolidated statement of condition.
We account for our low-income housing tax credit investments (LIHTC) and production tax credit investments under the proportional amortization method. Under the proportional amortization method, the initial cost of the investment is amortized based on a percentage of the actual income tax credits and other income tax benefits allocated in the current period versus the total estimated income tax credits and other income tax benefits expected to be received over the life of the investment. The net benefit, representing the difference between amortization of the investment balance, recognition of the income tax credits and recognition of other income tax benefits from the investment is recognized as a component of income tax expense.
As of September 30, 2025, we had investments in LIHTC and production tax credit investments of $
629
million and $
238
million, respectively, which are included in other assets in our consolidated statement of condition. Contingent contributions related to the renewable energy production tax credit investments were $
39
million at September 30, 2025. These contributions are contingent on production and expected to be paid through 2034. Deferred contributions related to LIHTC investments were $
86
million at September 30, 2025. These deferred contributions are payable in accordance with the respective agreements and are expected to be paid through 2042.
State Street Corporation | 73
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
The following table presents the impact of our tax credit programs for which we have elected to apply proportional amortization accounting on our consolidated statement of income for the periods indicated:
| (In millions) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
|
Income recorded on investments within other fee revenue
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Income recorded in total revenue |
|
|
|
|
|||||||||||||||||||
| Tax credits and benefits recognized in income tax expense |
|
|
|
|
|||||||||||||||||||
| Proportional amortization recognized in income tax expense |
(
|
(
|
(
|
(
|
|||||||||||||||||||
| Net benefits included in income tax expense |
|
|
|
|
|||||||||||||||||||
|
Net benefit attributable to tax-advantaged investments included in the consolidated statement of income for which proportional amortization has been elected
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
Note 12.
Shareholders' Equity
Preferred Stock
The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of September 30, 2025:
|
Preferred Stock
(1)
:
|
Issuance Date | Depositary Shares Issued | Amount outstanding (In millions) | Ownership Interest Per Depositary Share | Liquidation Preference Per Share | Liquidation Preference Per Depositary Share | Per Annum Dividend Rate | Dividend Payment Frequency |
Carrying Value as of September 30, 2025
(In millions) |
Redemption Date
(2)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Series G | April 2016 |
|
$ |
|
1/4,000th |
|
|
|
Quarterly | $ |
|
March 15, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Series I | January 2024 |
|
|
1/100th |
|
|
|
Quarterly |
|
March 15, 2029 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Series J | July 2024 |
|
|
1/100th |
|
|
|
Quarterly |
|
September 15, 2029 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Series K | February 2025 |
|
|
1/100th |
|
|
|
Quarterly |
|
September 15, 2030 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(1)
The preferred stock and corresponding depositary shares may be redeemed at our option in whole, but not in part, prior to the redemption date upon the occurrence of a regulatory capital treatment event, as defined in the certificate of designation, at a redemption price equal to the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends.
(2)
On the redemption date, or any dividend payment date thereafter, the preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends.
On February 6, 2025, we issued
750,000
depositary shares, each representing a 1/100th ownership interest in a share of fixed rate reset, non-cumulative perpetual preferred stock, Series K, without par value per share, with a liquidation preference of $
100,000
per share (equivalent to $
1,000
per depositary share), in a public offering. The aggregate proceeds, net of underwriting discounts, commissions and other issuance costs, were approximately $
743
million.
State Street Corporation | 74
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
The following table presents the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated:
| Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| (Dollars in millions, except per share amounts) | Dividends Declared per Share | Dividends Declared per Depositary Share | Total | Dividends Declared per Share | Dividends Declared per Depositary Share | Total | |||||||||||||||||||||||||||||
| Preferred Stock: | |||||||||||||||||||||||||||||||||||
| Series G | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Series H |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Series I |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Series J
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Series K
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
|||||||||||||||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| (Dollars in millions, except per share amounts) | Dividends Declared per Share | Dividends Declared per Depositary Share | Total | Dividends Declared per Share | Dividends Declared per Depositary Share | Total | |||||||||||||||||||||||||||||
| Preferred Stock: | |||||||||||||||||||||||||||||||||||
| Series D | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Series F |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Series G |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Series H |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Series I |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Series J |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Series K |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
|||||||||||||||||||||||||||||||
In October 2025, we declared dividends on our Series G, I, J and K preferred stock of approximately $
1,338
, $
1,675
, $
1,675
and $
1,613
, respectively, per share, or approximately $
0.33
, $
16.75
, $
16.75
and $
16.13
, respectively, per depositary share. These dividends total approximately $
7
million, $
25
million, $
14
million and $
12
million on our Series G, I, J and K preferred stock, respectively, which will be paid in December 2025.
Common Stock
On January 19, 2024, we announced a common share repurchase program, approved by the Board and superseding all prior programs, authorizing the purchase of up to $
5.0
billion of our common stock beginning in the first quarter of 2024. This program has no set expiration date and is not expected to be executed in full during 2025. We repurchased $
400
million of our common stock in the third quarter of 2025 under our 2024 share repurchase authorization.
The table below presents the activity under our common share repurchase program for the periods indicated:
| Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||||||||
|
Shares Acquired
(In millions) |
Average Cost per Share |
Total Acquired
(In millions) |
Shares Acquired (In millions) | Average Cost per Share | Total Acquired (In millions) | |||||||||||||||||||||||||||||||||
|
2024 Program
|
|
$ |
|
$ |
|
|
$ |
|
$ |
|
||||||||||||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||||||||
|
Shares Acquired
(In millions) |
Average Cost per Share |
Total Acquired
(In millions) |
Shares Acquired (In millions) | Average Cost per Share | Total Acquired (In millions) | |||||||||||||||||||||||||||||||||
| 2024 Program |
|
$ |
|
$ |
|
|
$ |
|
$ |
|
||||||||||||||||||||||||||||
The table below presents the dividends declared on common stock for the periods indicated:
| Three Months Ended September 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Dividends Declared per Share | Total (In millions) | Dividends Declared per Share | Total (In millions) | ||||||||||||||||||||
| Common Stock | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Dividends Declared per Share | Total (In millions) | Dividends Declared per Share | Total (In millions) | ||||||||||||||||||||
| Common Stock | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
State Street Corporation | 75
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Accumulated Other Comprehensive Income (Loss)
The following table presents the after-tax components of AOCI and changes for the periods indicated, net of related taxes:
| (In millions) | Net Unrealized Gains (Losses) on Cash Flow Hedges |
Net Unrealized Gains (Losses) on Investment Securities
(1)
|
Net Unrealized Gains (Losses) on Retirement Plans
|
Foreign Currency Translation | Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries | Total | |||||||||||||||||||||||||||||
|
Balance as of December 31, 2023
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
|||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications |
|
|
|
|
(
|
|
|||||||||||||||||||||||||||||
| Increase (decrease) due to amounts reclassified from accumulated other comprehensive income |
(
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Other comprehensive income (loss) |
(
|
|
|
|
(
|
|
|||||||||||||||||||||||||||||
| Balance as of September 30, 2024 | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
|||||||||||||||||||||||
|
Balance as of December 31, 2024
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
|||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications |
(
|
|
|
|
(
|
|
|||||||||||||||||||||||||||||
| Increase (decrease) due to amounts reclassified from accumulated other comprehensive income |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Other comprehensive income (loss) |
|
|
|
|
(
|
|
|||||||||||||||||||||||||||||
| Balance as of September 30, 2025 | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||||||||||||||||||
(1)
Includes after-tax net unamortized unrealized gains (losses) of ($
287
) million and ($
374
) million as of September 30, 2025 and December 31, 2024, respectively, related to AFS investment securities previously transferred to HTM.
The following tables present after-tax reclassifications into earnings for the periods indicated:
| Three Months Ended September 30, | |||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
| (In millions) | Amounts Reclassified into Earnings | Affected Line Item in Consolidated Statement of Income | |||||||||||||||
| Investment securities: | |||||||||||||||||
|
Net realized (gains) losses from sales of available-for-sale securities, net of related taxes of
|
$ |
(
|
$ |
|
Net gains (losses) from sales of available-for-sale securities | ||||||||||||
|
Losses reclassified from accumulated other comprehensive
income into income, net of related taxes of $
|
|
|
Net interest income | ||||||||||||||
| Cash flow hedges: | |||||||||||||||||
|
Losses (gains) reclassified from accumulated other comprehensive income into income, net of related taxes of $
|
|
|
Net interest income | ||||||||||||||
| Total amounts reclassified from accumulated other comprehensive income | $ |
|
$ |
|
|||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
| (In millions) | Amounts Reclassified into Earnings | Affected Line Item in Consolidated Statement of Income | |||||||||||||||
| Investment securities: | |||||||||||||||||
|
Net realized (gains) losses from sales of available-for-sale securities, net of related taxes of
|
$ |
(
|
$ |
|
Net gains (losses) from sales of available-for-sale securities | ||||||||||||
|
Losses reclassified from accumulated other comprehensive
income into income, net of related taxes of $
|
|
|
Net interest income | ||||||||||||||
| Cash flow hedges: | |||||||||||||||||
|
Losses (gains) reclassified from accumulated other comprehensive income into income, net of related taxes of $
|
|
(
|
Net interest income | ||||||||||||||
| Retirement plans: | |||||||||||||||||
|
Amortization of actuarial losses, net of related taxes of
|
|
|
Compensation and employee benefits expenses | ||||||||||||||
| Total amounts reclassified from accumulated other comprehensive income | $ |
|
$ |
|
|||||||||||||
State Street Corporation | 76
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note 13.
Regulatory Capital
For additional information on our regulatory capital, including the regulatory capital requirements administered by federal banking agencies, which we are subject to, refer to pages 163 to 164 in Note 16 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
As of September 30, 2025, we and State Street Bank exceeded all regulatory capital adequacy requirements to which we were subject to. As of September 30, 2025, State Street Bank was categorized as “well capitalized” under the applicable regulatory capital adequacy framework, and exceeded all “well capitalized” ratio guidelines to which it was subject. Management believes that no conditions or events have occurred since September 30, 2025 that have changed the capital categorization of State Street Bank.
The following table presents the regulatory capital structure, total RWA, related regulatory capital ratios and the minimum required regulatory capital ratios for us and State Street Bank as of the dates indicated.
| State Street Corporation | State Street Bank | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | Basel III Advanced Approaches September 30, 2025 | Basel III Standardized Approach September 30, 2025 | Basel III Advanced Approaches December 31, 2024 | Basel III Standardized Approach December 31, 2024 | Basel III Advanced Approaches September 30, 2025 | Basel III Standardized Approach September 30, 2025 | Basel III Advanced Approaches December 31, 2024 | Basel III Standardized Approach December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||
| Common shareholders' equity: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock and related surplus | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||
| Retained earnings |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
| Accumulated other comprehensive income (loss) |
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||
| Treasury stock, at cost |
(
|
(
|
(
|
(
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
| Total |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
| Regulatory capital adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and other intangible assets, net of associated deferred tax liabilities |
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Other adjustments
(1)
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||
| Common equity tier 1 capital |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
| Tier 1 capital |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
| Qualifying subordinated long-term debt |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
| Total capital | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||
| Risk-weighted assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Credit risk
(2)
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||
|
Operational risk
(3)
|
|
NA |
|
NA |
|
NA |
|
NA | |||||||||||||||||||||||||||||||||||||||||||||
| Market risk |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
| Total risk-weighted assets | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||
| Adjusted quarterly average assets | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||
| Capital Ratios: |
2025 Minimum Requirements
(4)
|
2024 Minimum Requirements
(4)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
| Common equity tier 1 capital |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||||||||||||
| Tier 1 capital |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||
| Total capital |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||
|
Tier 1 leverage
(5)
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||
(1)
Other adjustments within CET1 capital primarily include disallowed deferred tax assets, cash flow hedges that are not recognized at fair value on the balance sheet, and the overfunded portion of our defined benefit pension plan obligation net of associated deferred tax liabilities.
(2)
Under the advanced approaches, credit risk RWA includes a CVA which reflects the risk of potential fair value adjustments for credit risk reflected in our valuation of over-the-counter derivative contracts. We used a simple CVA approach in conformity with the Basel III advanced approaches.
(3)
Under the current advanced approaches rules and regulatory guidance concerning operational risk models, RWA attributable to operational risk can vary substantially from period-to-period, without direct correlation to the effects of a particular loss event on our results of operations and financial condition and impacting dates and periods that may differ from the dates and periods as of and during which the loss event is reflected in our financial statements, with the timing and categorization dependent on the processes for model updates and, if applicable, model revalidation and regulatory review and related supervisory processes. An individual loss event can have a significant effect on the output of our operational RWA under the advanced approaches depending on the severity of the loss event and its categorization among the seven Basel-defined UOMs.
(4)
Minimum requirements include a CCB of 2.5% and a SCB of 2.5% for the advanced approaches and the standardized approach, respectively, a G-SIB surcharge of 1.0% and a countercyclical buffer of 0%. Our SCB requirement remains at 2.5% for the period from October 1, 2025, through September 30, 2026, based on the results of the 2025 supervisory stress test.
(5)
State Street Bank is required to maintain a minimum Tier 1 leverage ratio of
5
% as it is the insured depository institution subsidiary of State Street Corporation, a U.S. G-SIB.
State Street Corporation | 77
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note 14.
Net Interest Income
The following table presents the components of interest income and interest expense, and related NII, for the periods indicated:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Interest income: | |||||||||||||||||||||||
| Interest-bearing deposits with banks | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Investment securities: | |||||||||||||||||||||||
| Investment securities available-for-sale |
|
|
|
|
|||||||||||||||||||
| Investment securities held-to-maturity |
|
|
|
|
|||||||||||||||||||
| Total investment securities |
|
|
|
|
|||||||||||||||||||
| Securities purchased under resale agreements |
|
|
|
|
|||||||||||||||||||
| Trading account assets |
|
|
|
|
|||||||||||||||||||
| Loans |
|
|
|
|
|||||||||||||||||||
| Other interest-earning assets |
|
|
|
|
|||||||||||||||||||
| Total interest income |
|
|
|
|
|||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||
| Interest-bearing deposits |
|
|
|
|
|||||||||||||||||||
| Securities sold under repurchase agreements |
|
|
|
|
|||||||||||||||||||
|
Other short-term borrowings
|
|
|
|
|
|||||||||||||||||||
| Long-term debt |
|
|
|
|
|||||||||||||||||||
| Other interest-bearing liabilities |
|
|
|
|
|||||||||||||||||||
| Total interest expense |
|
|
|
|
|||||||||||||||||||
| Net interest income | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
State Street Corporation | 78
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note 15.
Expenses
The following table presents the components of other expenses for the periods indicated:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Professional services | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Sales advertising and public relations |
|
|
|
|
|||||||||||||||||||
| Securities processing |
|
|
|
|
|||||||||||||||||||
|
Regulatory fees and assessments
(1)
|
|
|
|
|
|||||||||||||||||||
| Bank operations |
|
|
|
|
|||||||||||||||||||
| Donations |
|
|
|
|
|||||||||||||||||||
| Other |
|
|
|
|
|||||||||||||||||||
| Total other expenses | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
(1)
First quarter of 2024 other expenses included a $
130
million increase to the FDIC special assessment recorded in the fourth quarter of 2023, primarily related to the increase to the FDIC’s estimate of losses to the DIF associated with the closures of SVB and Signature Bank.
Repositioning Charges
In the second quarter of 2025, we recorded a repositioning charge of $
100
million related to compensation and employee benefits primarily from workforce rationalization.
The following table presents aggregate activity for repositioning charges for the periods indicated:
| (In millions) |
Employee
Related Costs |
Real Estate
Actions |
Total | ||||||||||||||
| Accrual Balance at December 31, 2023 | $ |
|
$ |
|
$ |
|
|||||||||||
| Payments and other adjustments |
(
|
|
(
|
||||||||||||||
| Accrual Balance at March 31, 2024 |
|
|
|
||||||||||||||
| Payments and other adjustments |
(
|
|
(
|
||||||||||||||
| Accrual Balance at June 30, 2024 |
|
|
|
||||||||||||||
| Payments and Other Adjustments |
(
|
|
(
|
||||||||||||||
| Accrual Balance at September 30, 2024 | $ |
|
$ |
|
$ |
|
|||||||||||
|
Accrual Balance at December 31, 2024
|
$ |
|
$ |
|
$ |
|
|||||||||||
| Payments and other adjustments |
(
|
|
(
|
||||||||||||||
| Accrual Balance at March 31, 2025 |
|
|
|
||||||||||||||
|
Accruals for repositioning charges
|
|
|
|
||||||||||||||
| Payments and other adjustments |
(
|
|
(
|
||||||||||||||
| Accrual Balance at June 30, 2025 |
|
|
|
||||||||||||||
| Payments and other adjustments |
(
|
|
(
|
||||||||||||||
| Accrual Balance at September 30, 2025 | $ |
|
$ |
|
$ |
|
|||||||||||
State Street Corporation | 79
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note 16.
Earnings Per Common Share
For additional information on our EPS calculation methodologies, refer to pages 170 to 171 in Note 23 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
The following table presents the computation of basic and diluted earnings per common share for the periods indicated:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| (Dollars in millions, except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
| Net income | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Preferred stock dividends |
(
|
(
|
(
|
(
|
||||||||||||||||||||||
|
Dividends and undistributed earnings allocated to participating securities
(1)
|
(
|
|
(
|
(
|
||||||||||||||||||||||
| Net income available to common shareholders | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
| Average common shares outstanding (In thousands): | ||||||||||||||||||||||||||
| Basic average common shares |
|
|
|
|
||||||||||||||||||||||
| Effect of dilutive securities: equity-based awards |
|
|
|
|
||||||||||||||||||||||
| Diluted average common shares |
|
|
|
|
||||||||||||||||||||||
|
Anti-dilutive securities
(2)
|
|
|
|
|
||||||||||||||||||||||
| Earnings per common share: | ||||||||||||||||||||||||||
| Basic | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
|
Diluted
(3)
|
|
|
|
|
||||||||||||||||||||||
(1)
Represents the portion of net income available to common equity allocated to participating securities, composed of unvested and fully vested SERP shares and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings.
(2)
Represents equity-based awards outstanding, but not included in the computation of diluted average common shares because their effect was anti-dilutive. Additional information about equity-based awards is provided on pages 165 to 167 in Note 18 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
(3)
Calculations reflect allocation of earnings to participating securities using the two-class method, as this computation is more dilutive than the treasury stock method.
Note 17.
Line of Business Information
Our operations are organized into
two
lines of business, which represent our reportable segments: Investment Servicing and Investment Management, which are defined based on products and services provided. The results of operations for these lines of business are not necessarily comparable with those of other companies, including companies in the financial services industry. For information about our
two
lines of business, as well as revenues, expenses and capital allocation methodologies associated with them, refer to pages 171 to 173 in Note 24 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
Revenue and expenses are directly charged or allocated to our lines of business through management information systems. Our Chief Operating Decision Maker (CODM) is the Chief Executive Officer. The line of business results are regularly provided to the CODM to evaluate the performance of each line of business and to inform how resources are allocated between those lines of business to best achieve management’s strategic and tactical goals. Capital is allocated based on the relative risks and capital requirements inherent in each business line, along with management judgment. Capital allocations may not be representative of the capital that might be required if these lines of business were separate business entities.
State Street Corporation | 80
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
The following table summarizes our line of business results for the periods indicated. The “Other” columns presented in the below tables, represent amounts that are not allocated to our
two
lines of business.
| Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
|
Investment
Servicing |
Investment
Management |
Other | Total | ||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
| Servicing fees | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
| Management fees |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Foreign exchange trading services |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Securities finance |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Software and processing fees |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Other fee revenue
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Total fee revenue |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Net interest income |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Total other income |
|
|
|
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||||||||||||
| Total revenue |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Provision for credit losses |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
| Compensation and employee benefits |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Information systems and communications |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Transaction processing services |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Other |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Total expenses |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Income before income tax expense | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
| Pre-tax margin |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||||||||||||||
| Average assets (in billions) | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
|
Investment
Servicing |
Investment
Management |
Other | Total | ||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
| Servicing fees | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
| Management fees |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Foreign exchange trading services |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Securities finance |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Software and processing fees
|
|
|
|
|
(
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Other fee revenue |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Total fee revenue |
|
|
|
|
(
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Net interest income |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Total other income |
|
|
|
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||||||||||||
| Total revenue |
|
|
|
|
(
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Provision for credit losses |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
| Compensation and employee benefits |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Information systems and communications |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Transaction processing services |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Other |
|
|
|
|
(
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Total expenses |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Income before income tax expense | $ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
| Pre-tax margin |
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||||||||||||||
| Average assets (in billions) | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||
State Street Corporation | 81
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
The following table provides additional information about the items included in the line of business results “Other” column for the periods indicated.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| Other | Other | |||||||||||||||||||||||||
| (Dollars in millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
|
Foreign exchange trading services
(1)
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
|
Client rescoping (revenue impact)
(2)
|
|
|
(
|
|
||||||||||||||||||||||
|
Other fee revenue
(3)
|
|
|
|
|
||||||||||||||||||||||
|
(Gains) losses related to investment securities, net
(4)
|
|
(
|
|
(
|
||||||||||||||||||||||
|
Repositioning charges
(5)
|
|
|
(
|
|
||||||||||||||||||||||
|
Client rescoping (expense impact)
(2)
|
|
|
(
|
|
||||||||||||||||||||||
|
FDIC special assessment
(6)
|
|
|
|
(
|
||||||||||||||||||||||
|
Other
|
|
|
|
(
|
||||||||||||||||||||||
|
Total
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
||||||||||||||||||
(1)
Amount consists of a revenue-related recovery associated with the proceeds from a 2018 foreign exchange benchmark litigation resolution, which is reflected in foreign exchange trading services revenue.
(2)
Amount related to a client rescoping which decreased income before income taxes by $
42
million, of which $
24
million is reflected in front office software and data revenue and $
18
million is reflected in information systems and communications expenses.
(3)
Amount consists of a $
66
million gain on sale of equity investment, which is reflected in other fee revenue.
(4)
Amount consists of a $
81
million loss on the sale of investment securities, which is related to the repositioning of the investment portfolio reflected in other income.
(5)
Amount includes $
100
million of compensation and benefits expenses related to workforce rationalization consistent with the strategic focus on operating model transformation to drive further operating efficiency and productivity gains over time.
(6)
First quarter of 2024 other expenses included a $
130
million increase to the FDIC special assessment recorded in the fourth quarter of 2023, primarily related to the increase to the FDIC’s estimate of losses to the DIF associated with the closures of SVB and Signature Bank.
Note 18.
Revenue from Contracts with Customers
For additional information on the nature of services and our revenue from contracts with customers, including revenues associated with both our Investment Servicing and Investment Management lines of business, refer to pages 173 to 176 in Note 25 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
Revenue by category
In the following table, revenue is disaggregated by our
two
lines of business and by revenue stream for which the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The amounts in the “Other” columns were not allocated to our business lines.
State Street Corporation | 82
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
| Three Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment Servicing | Investment Management | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | Topic 606 revenue | All other revenue | Total | Topic 606 revenue | All other revenue | Total | Topic 606 revenue | All other revenue | Total | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Servicing fees | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||
| Management fees |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign exchange trading services |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Securities finance |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Software and processing fees |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Other fee revenue |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total fee revenue |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total other income |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment Servicing | Investment Management | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | Topic 606 revenue | All other revenue | Total | Topic 606 revenue | All other revenue | Total | Topic 606 revenue | All other revenue | Total | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Servicing fees | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||
| Management fees |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign exchange trading services |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Securities finance |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Software and processing fees |
|
|
|
|
|
|
(
|
|
(
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Other fee revenue |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total fee revenue |
|
|
|
|
|
|
(
|
|
(
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total other income |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment Servicing | Investment Management | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | Topic 606 revenue | All other revenue | Total | Topic 606 revenue | All other revenue | Total | Topic 606 revenue | All other revenue | Total | 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Servicing fees | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||
| Management fees |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign exchange trading services |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Securities finance |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Software and processing fees |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Other fee revenue |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total fee revenue |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total other income |
|
|
|
|
|
|
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment Servicing | Investment Management | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | Topic 606 revenue | All other revenue | Total | Topic 606 revenue | All other revenue | Total | Topic 606 revenue | All other revenue | Total | 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Servicing fees | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||
| Management fees |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign exchange trading services |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Securities finance |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Software and processing fees |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Other fee revenue |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total fee revenue |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total other income |
|
|
|
|
|
|
|
(
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||
State Street Corporation | 83
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Contract balances and contract costs
As of September 30, 2025 and December 31, 2024, net receivables of $
3.52
billion and $
3.08
billion, respectively, are included in accrued interest and fees receivable and other assets, representing amounts billed or currently billable related to revenue from contracts with customers. As performance obligations are satisfied, generally, we have an unconditional right to payment and billing is performed monthly or quarterly; therefore, we do not have significant contract assets.
We had $
131
million and $
144
million of deferred revenue as of September 30, 2025 and December 31, 2024, respectively. Deferred revenue is a contract liability which represents payments received and accounts receivable recorded in advance of providing services and is included in accrued expenses and other liabilities in the consolidated statement of condition. In the three months ended September 30, 2025, we recognized revenue of $
69
million relating to deferred revenue of $
163
million as of June 30, 2025. In the nine months ended September 30, 2025, we recognized revenue of $
117
million relating to deferred revenue of $
144
million as of December 31, 2024.
Transaction price allocated to the remaining performance obligations represents future, non-cancelable contracted revenue that has not yet been recognized, inclusive of deferred revenue that has been invoiced and non-cancellable amounts that will be invoiced and recognized as revenue in future periods. As of September 30, 2025
, total remaining non-cancellable performance obligations for services and products not yet delivered, primarily comprised of software license sales and SaaS, were approximately
$
2.11
billion
. We expect to recognize approximately half of this amount in revenue over the next
three years
, with the remainder to be recognized thereafter.
No adjustments are made to the promised amount of consideration for the effects of a significant financing component as the period between when we transfer a promised service to a customer and when the customer pays for that service is expected to be one year or less.
Note 19.
Non-U.S. Activities
We define our non-U.S. activities as those revenue-producing business activities that arise from clients that are generally serviced or managed outside the U.S. Due to the integrated nature of our business, precise segregation of our U.S. and non-U.S. activities is not possible.
Subjective estimates, assumptions and other judgments are applied to quantify the financial results and assets related to our non-U.S. activities, including our application of funds transfer pricing, our asset and liability management policies and our allocation of certain indirect corporate expenses. Management periodically reviews and updates its processes for quantifying the financial results and assets related to our non-U.S. activities.
The following table presents our U.S. and non-U.S. financial results for the periods indicated:
| Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| (In millions) |
Non-U.S.
(1)
|
U.S. | Total |
Non-U.S.
(1)
|
U.S. | Total | |||||||||||||||||||||||||||||
| Total revenue | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Income before income tax expense |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| (In millions) |
Non-U.S.
(1)
|
U.S. | Total |
Non-U.S.
(1)
|
U.S. | Total | |||||||||||||||||||||||||||||
| Total revenue | $ |
|
$ |
|
|
$ |
|
$ |
|
|
|||||||||||||||||||||||||
| Income before income tax expense |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
(1)
Geographic mix is generally based on the domicile of the entity servicing the funds and is not necessari
ly representative of the underlying asset mix.
Servicing fees generated outside the U.S. were approximat
ely
48
% of total servicing fees in both the three and nine months ended September 30, 2025, compared to approximately
47
% in both the three and nine months ended September 30, 2024.
Management fees generated outside the U.S. were approximately
25
% of total management fees in both the three and nine months ended September 30, 2025, compared to approximately
24
% and
25
% in the three and nine months ended September 30, 2024, respectively.
Non-U.S. assets were $
94.35
billion and $
95.26
billion as of September 30, 2025 and 2024, respectively.
State Street Corporation | 84
STATE STREET CORPORATION
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note 20.
Subsequent Events
On October 23, 2025, we issued $
1
billion aggregate principal amount of
4.784
% fixed-to-floating rate senior notes due 2036.
On October 29, 2025, we notified the holders of our $
500
million aggregate principal amount of
5.751
% fixed-to-floating rate senior notes due 2026, that we will redeem all of the notes on November 4, 2025.
State Street Corporation | 85
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of State Street Corporation
Results of Review of Interim Financial Statements
We have reviewed the accompanying consolidated statement of condition of State Street Corporation (the “Corporation”) as of September 30, 2025, the related consolidated statements of income, comprehensive income and changes in shareholders' equity for the three- and nine-month periods ended September 30, 2025 and 2024, cash flows for the nine-month periods ended September 30, 2025 and 2024, and the related condensed notes (collectively referred to as the “condensed consolidated interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the condensed consolidated interim financial statements for them to be in conformity with U.S. generally accepted accounting principles.
We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated statement of condition of the Corporation as of December 31, 2024, the related consolidated statements of income, comprehensive income, changes in shareholders' equity and cash flows for the year then ended, and the related notes (not presented herein); and in our report dated February 13, 2025, we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated statement of condition as of December 31, 2024, is fairly stated, in all material respects, in relation to the consolidated statement of condition from which it has been derived.
Basis for Review Results
These financial statements are the responsibility of the Corporation’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Corporation in accordance with the U.S. federal securities laws and the applicable rules and regulations of the SEC and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
/s/ Ernst & Young LLP
Boston, Massachusetts
October 30, 2025
State Street Corporation | 86
| ACRONYMS | |||||||||||
| ABS | Asset-backed securities |
HQLA
(1)
|
High-quality liquid assets | ||||||||
| AFS | Available-for-sale | HTM | Held-to-maturity | ||||||||
| AOCI | Accumulated other comprehensive income (loss) | IDI | Insured Depository Institution | ||||||||
| AUC/A | Assets under custody and/or administration |
LCR
(1)
|
Liquidity coverage ratio | ||||||||
| AUM | Assets under management | LTD | Long-term debt | ||||||||
| bps | Basis points | MBS | Mortgage-backed securities | ||||||||
| CAD | Canadian Dollar | NII | Net interest income | ||||||||
| CCB | Capital Conservation Buffer | NIM | Net interest margin | ||||||||
| CMBS | Commercial Mortgage backed Security |
NSFR
(1)
|
Net stable funding ratio | ||||||||
| CRD | Charles River Development | RMBS | Residential mortgage-backed securities | ||||||||
|
CET1
(1)
|
Common equity tier 1 |
RWA
(1)
|
Risk-weighted assets | ||||||||
| CVA | Credit valuation adjustment | SaaS | Software as a service | ||||||||
| DIF | Deposit Insurance Fund | SCB | Stress Capital Buffer | ||||||||
| ECB | European Central Bank | SEC | Securities and Exchange Commission | ||||||||
| ERISA | Employee Retirement Income Security Act of 1974 |
SLR
(1)
|
Supplementary leverage ratio | ||||||||
|
eSLR
(1)
|
Enhanced supplementary leverage ratio
|
SPDR | Spider; Standard and Poor's depository receipt | ||||||||
| ETF | Exchange-Traded Fund | SPOE Strategy | Single Point of Entry Strategy | ||||||||
| EUR | Euro | SSIF | State Street Intermediate Funding, LLC | ||||||||
| EURIBOR | Euro Interbank Offered Rate |
SVB
|
Silicon Valley Bank | ||||||||
| FDIC | Federal Deposit Insurance Corporation |
TLAC
(1)
|
Total loss-absorbing capacity | ||||||||
| FHLB | Federal Home Loan Bank of Boston | UOM | Unit of measure | ||||||||
| FICC | Fixed Income Clearing Corporation | USD | U.S. Dollar | ||||||||
| FX | Foreign exchange | VaR | Value-at-Risk | ||||||||
| GAAP | Generally accepted accounting principles | ||||||||||
| GBP | British Pound Sterling | ||||||||||
| G-SIB | Global systemically important bank | ||||||||||
(1)
As defined by the applicable U.S. regulations.
State Street Corporation | 87
| GLOSSARY | |||||
|
Asset-backed securities:
A financial security backed by collateralized assets, other than real estate or mortgage backed securities.
Assets under custody and/or administration: Assets that we hold directly or indirectly on behalf of clients under a safekeeping or custody arrangement or for which we provide administrative services for clients. To the extent that we provide more than one AUC/A service (including back and middle office services) for a client’s assets, the value of the asset is only counted once in the total amount of AUC/A. Assets under management: The total market value of client assets for which we provide investment management strategy services, advisory services and/or distribution services generating management fees based on a percentage of the assets’ market values. These client assets are not included on our balance sheet. Assets under management include managed assets lost but not liquidated. Lost business occurs from time to time and it is difficult to predict the timing of client behavior in transitioning these assets as the timing can vary significantly. Certificates of deposit (CD): A savings certificate with a fixed maturity date, specified fixed interest rate and can be issued in any denomination aside from minimum investment requirements. A CD restricts access to the funds until the maturity date of the investment. Collateralized loan obligations: A loan or security backed by a pool of debt, primarily senior secured leveraged loans. Collateralized loan obligations are similar to collateralized mortgage obligations, except for the different type of underlying loan. With a collateralized loan obligation, the investor receives scheduled loan or debt payments from the underlying loans, assuming most of the risk in the event borrowers default, but is offered greater diversity and the potential for higher-than-average returns. Commercial real estate (CRE): Property intended to generate profit from capital gains or rental income. CRE loans are term loans secured by commercial and multifamily properties. We seek CRE loans with strong competitive positions in major domestic markets, stable cash flows, modest leverage and experienced institutional ownership. Deposit beta: A measure of how much of an interest rate increase is expected to be passed on to client interest-bearing accounts, on average. Depot bank: A German term, specified by the country's law on investment companies, which essentially corresponds to 'custodian'. Doubtful: Doubtful loans meet the same definition of substandard loans (i.e., well-defined weaknesses that jeopardize repayment with the possibility that we will sustain some loss) with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable. Economic value of equity: A measure designed to estimate the fair value of assets, liabilities and off-balance sheet instruments based on a discounted cash flow model. Exchange-Traded Fund: A type of exchange-traded investment product that offer investors a way to pool their money in a fund that makes investments in stocks, bonds, or other assets and, in return, to receive an interest in that investment pool. ETF shares are traded on a national stock exchange and at market prices that may or may not be the same as the net asset value. Exposure-at-default: A measure used in the calculation of regulatory capital under Basel III final rule. It can be defined as the expected amount of loss a bank may be exposed to upon default of an obligor. Fee operating leverage: Represents the difference between the percentage change in total fee revenue a nd the percentage change in total expenses, in each case relative to the same period of the prior year.
Global systemically important bank:
A financial institution whose distress or disorderly failure, because of its size, complexity and systemic interconnectedness, would cause significant disruption to the wider financial system and economic activity, which will be subject to additional capital requirements.
Held-to-maturity investment securities: We classify investments in debt securities as held-to-maturity only if we have the positive intent and ability to hold those securities to maturity. Investments in debt securities classified as held-to-maturity are measured subsequently at amortized cost in the statement of financial position. |
High-quality liquid assets:
Cash or assets that can be converted into cash at little or no loss of value in private markets and are considered unencumbered.
Investment grade: A rating of loans to counterparties with strong credit quality and low expected credit risk and probability of default. It applies to counterparties with a strong capacity to support the timely repayment of any financial commitment. Liquidity coverage ratio: The ratio of high-quality liquid assets divided by expected total net cash outflows over a 30-day stress period. A Basel III framework requirement for banks and bank holding companies to measure liquidity, it is designed to ensure that certain banking institutions, including us, maintain a minimum amount of unencumbered HQLA sufficient to withstand the net cash outflow under a hypothetical standardized acute liquidity stress scenario for a 30-day stress period. Net asset value: The amount of net assets attributable to each share/unit of the fund at a specific date or time. Net stable funding ratio: The ratio of the amount of available stable funding relative to the amount of required stable funding. This ratio should be equal to at least 100% on an ongoing basis.
Operating leverage:
Represents the difference between the percentage change in total revenue and the percentage change in total expenses, in each case relative to the same period of the prior year
Prime services:
The securities lending business previously referred to as enhanced custody.
Probability of default: A measure of the likelihood that a credit obligor will enter into default status. Qualified financial contracts: Securities contracts, commodity contracts, forward contracts, repurchase agreements, swap agreements and any other contract determined by the FDIC to be a qualified financial contract. Risk-weighted assets: A measurement used to quantify risk inherent in our on and off-balance sheet assets by adjusting the asset value for risk. RWA is used in the calculation of our risk-based capital ratios. Software-enabled revenue: Includes SaaS, maintenance and support revenue, FIX, brokerage, and value-add services.
Special mention:
Loans that consist of counterparties with potential weaknesses that, if uncorrected, may result in deterioration of repayment prospects.
Sub-investment grade (previously referred to as Speculative): Loans that consist of counterparties that face ongoing uncertainties or exposure to business, financial, or economic downturns. However, these counterparties may have financial flexibility or access to financial alternatives, which allow for financial commitments to be met. Substandard: Loans that consist of counterparties with well-defined weakness that jeopardizes repayment with the possibility we will sustain some loss. Supplementary leverage ratio: The ratio of our tier 1 capital to our total leverage exposure, which measures our capital adequacy relative to our on and off-balance sheet assets. Total loss-absorbing capacity: The sum of our tier 1 regulatory capital plus eligible external long-term debt issued by us. Value-at-Risk: Statistical model used to measure the potential loss in value of a portfolio that could occur in normal markets condition, over a defined holding period, within a certain confidence level. Variable interest entity: An entity that: (1) lacks enough equity investment at risk to permit the entity to finance its activities without additional financial support from other parties; (2) has equity owners that lack the right to make significant decisions affecting the entity’s operations; and/or (3) has equity owners that do not have an obligation to absorb or the right to receive the entity’s losses or return. |
||||
State Street Corporation | 88
PART 2. OTHER INFORMATION
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
On January 19, 2024, we announced a common share repurchase program, approved by the Board and superseding all prior programs, authorizing the purchase of up to $5.0 billion of our common stock beginning in the first quarter of 2024. This program has no set expiration date and is not expected to be executed in full during 2025. We repurchased $400 million of our common stock in the third quarter of 2025 under our 2024 share repurchase authorization.
The following table presents the activity under our common share repurchase program for each of the months in the quarter ended September 30, 2025.
| (Dollars in millions except per share amounts; shares in thousands) | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced program | Approximate dollar value of shares that may yet be purchased under publicly announced program | |||||||||||||||||||
| Period: | |||||||||||||||||||||||
| July 1 - July 31, 2025 | 1,867 | $ | 107.13 | 1,867 | $ | 3,100 | |||||||||||||||||
| August 1 - August 31, 2025 | 1,758 | 113.76 | 1,758 | 2,900 | |||||||||||||||||||
| September 1 - September 30, 2025 | — | — | — | 2,900 | |||||||||||||||||||
| Total | 3,625 | $ | 110.34 | 3,625 | $ | 2,900 | |||||||||||||||||
Stock purchases under our common share repurchase program may be made using various types of transactions, including open market purchases, accelerated share repurchases or other transactions off the market, and may be made under Rule 10b5-1 trading programs. The timing and amount of any stock purchases and the type of transaction may not be ratable over the duration of the program, may vary from reporting period to reporting period and will depend on several factors, including our capital position and our financial performance, investment opportunities, market conditions, the nature and timing of implementation of revisions to the Basel III framework and the amount of common stock issued as part of employee compensation programs. The common share repurchase program does not have specific price targets and may be suspended at any time.
ITEM 5. OTHER INFORMATION
On October 29, 2025, State Street entered into agreements with Joerg Ambrosius, Executive Vice President and President of Investment Services, to clarify the fixed and incentive compensation attributable to each of his global and Continental Europe-specific responsibilities. Pursuant to the terms of the agreements, Mr. Ambrosius’s target total compensation for 2025 remains set at its previously disclosed level of €7,000,000, consisting of a base salary of €650,000, fixed allowance of €2,500,000, and target incentive compensation of €3,850,000. Pursuant to the terms of the European agreement, Mr. Ambrosius will continue to receive additional benefits, including a small meal allowance and capital-forming benefit provided as customary benefits to all German employees, personal use of a company car, accident insurance coverage, and continuation of his pension benefit. The above description of Mr. Ambrosius’s agreements with State Street is qualified in its entirety by the terms and provisions of the agreements themselves, which are filed as Exhibits 10.1, 10.2, and 10.3 hereto and are incorporated herein by reference.
Securities Trading Plans of Directors and Executive Officers
A significant portion of the compensation of our executive officers is delivered in the form of deferred equity awards, including deferred stock and performance-based restricted stock unit awards. This compensation design is intended to align executive compensation with the performance experienced by our shareholders. Following the delivery of shares of our common stock under those equity awards, once any applicable service-, time- or performance-based vesting standards have been satisfied, our executive officers from time to time engage in the open-market sale of some of those shares. Our executive officers may also engage from time to time in other transactions involving our securities.
Transactions in our securities by our executive officers are required to be made in accordance with our Securities Trading Policy, which, among other things, requires that the transactions be in accordance with applicable U.S. federal securities laws that prohibit trading while in possession of material nonpublic information. Rule 10b5-1 under the Exchange Act provides an affirmative defense that enables prearranged transactions in securities in a manner that avoids concerns about initiating transactions at a future date while possibly in possession of material nonpublic information. Our Securities Trading Policy permits our executive officers to enter into trading plans designed to comply with Rule 10b5-1.
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The following table describes contracts, instructions or written plans for the sale or purchase of our securities adopted by executive officers during the third quarter of 2025, which are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c), referred to as a Rule 10b5-1 trading plan.
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Name and Title
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Date of Adoption of Rule 10b5-1 Trading Plan
|
Scheduled Expiration Date of Rule 10b5-1 Trading Plan
(1)
|
Aggregate Number of Securities to Be Purchased or Sold
|
|||||||||||||||||
|
|
|
|
Sale of up to
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|||||||||||||||||
(1)
A trading plan may also expire on such earlier date as all transactions under the trading plan are completed.
During the third quarter of 2025, none of our other executive officers or directors
adopted
Rule 10b5-1 trading plans and none of our directors or executive officers
terminated
a Rule 10b5-1 trading plan or adopted or
terminated
a non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K).
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ITEM 6. EXHIBITS
| Exhibit No. | Exhibit Description | ||||||||||
| Note: None of the instruments defining the rights of holders of State Street’s outstanding long-term debt are in respect of indebtedness in excess of 10% of the total assets of State Street and its subsidiaries on a consolidated basis. State Street hereby agrees to furnish to the SEC upon request a copy of any other instrument with respect to long-term debt of State Street and its subsidiaries. | |||||||||||
| 101.INS | The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document | ||||||||||
| * | 101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||||
| * | 101.CAL | Inline XBRL Taxonomy Calculation Linkbase Document | |||||||||
| * | 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||||
| * | 101.LAB | Inline XBRL Taxonomy Label Linkbase Document | |||||||||
| * | 101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document | |||||||||
| * | 104 | Cover Page Interactive Data File (formatted as Inline XBRL and included within the Exhibit 101 attachments) | |||||||||
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†
|
Denotes management contract or compensatory plan or arrangement
|
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| * | Submitted electronically herewith | |||||||
Attached as Exhibit 101 to this report are the following formatted in Inline XBRL (Extensible Business Reporting Language): (i) consolidated statement of income for the three and nine months ended September 30, 2025 and 2024, (ii) consolidated statement of comprehensive income for the three and nine months ended September 30, 2025 and 2024, (iii) consolidated statement of condition as of September 30, 2025 and December 31, 2024, (iv) consolidated statement of changes in shareholders' equity for the three and nine months ended September 30, 2025 and 2024, (v) consolidated statement of cash flows for the three and nine months ended September 30, 2025 and 2024, and (vi) condensed notes to consolidated financial statements.
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SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| STATE STREET CORPORATION | |||||||||||||||||
| (Registrant) | |||||||||||||||||
| Date: | October 30, 2025 | By: | /s/ JOHN F. WOODS | ||||||||||||||
| John F. Woods, | |||||||||||||||||
| Executive Vice President and Chief Financial Officer (Principal Financial Officer) | |||||||||||||||||
| Date: | October 30, 2025 | By: | /s/ ELIZABETH M. SCHAEFER | ||||||||||||||
| Elizabeth M. Schaefer, | |||||||||||||||||
|
Senior Vice President, Chief Accounting Officer and Interim Controller
(Principal Accounting Officer)
|
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TABLE OF CONTENTS
Part I. Financial InformationNote 1. Summary Of Significant Accounting PoliciesNote 2. Fair ValueNote 3. Investment SecuritiesNote 4. Loans and Allowance For Credit LossesNote 5. Goodwill and Other Intangible AssetsNote 6. Other AssetsNote 7. Derivative Financial InstrumentsNote 8. Offsetting ArrangementsNote 9. Commitments and GuaranteesNote 10. ContingenciesNote 11. Variable Interest EntitiesNote 12. Shareholders' EquityNote 13. Regulatory CapitalNote 14. Net Interest IncomeNote 15. ExpensesNote 16. Earnings Per Common ShareNote 17. Line Of Business InformationNote 18. Revenue From Contracts with CustomersNote 19. Non-u.s. ActivitiesNote 20. Subsequent EventsPart 2. Other InformationItem 2. Unregistered Sales Of Equity Securities and Use Of ProceedsItem 5. Other InformationItem 6. Exhibits