State Street Corporation Reports Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Provides Revenue Guidance for 2014
January 24, 2014 at 05:55 pm IST
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State Street Corporation reported earnings results for the fourth quarter and full year ended December 31, 2013. For the quarter, the company reported net income available to common shareholders of $545 million, or $1.22 per share, took into account a $71 million income tax benefit. That compares with $468 million, or $1 per share, in the fourth quarter of 2012. Revenue was $2.46 billion increased from $2.45 billion in the fourth quarter of 2012, as stronger global stock markets and new business lifted its servicing fees 7.1% to $1.23 billion. Net interest revenue of $585 million decreased from $622 million in the fourth quarter of 2012. Return on average common shareholders' equity was 10.9% increased from 9.3% in the fourth quarter of 2012. Non-GAAP EPS was $1.15 increased 3.6% from $1.11 in the fourth quarter of 2012. Non-GAAP net income available to common shareholders was $514 million decreased from $521 million in the fourth quarter of 2012. Non-GAAP revenue was $2.53 billion increased from $2.46 billion in the fourth quarter of 2012. Non-GAAP net interest revenue was $596 million decreased from $600 million in the fourth quarter of 2012. Non-GAAP ROE of 10.3% was flat with the fourth quarter of 2012. Fourth quarter total revenue increased compared to the third quarter of 2013, driven by higher core servicing and management fees and higher net interest revenue, partially offset by lower trading revenue. Compared to the fourth quarter of 2012, EPS increased primarily due to higher fee revenue and a reduction in the number of its outstanding shares, partly offset by increased expenses.
For the full year, the company reported EPS of $4.62 increased 10.0% from $4.20 in 2012. Revenue increased 2.4% to $9.88 billion from $9.65 billion in 2012. ROE increased to 10.5% in 2013 from 10.3% in 2012. Non-GAAP EPS was $4.54 increased 14.9% from $3.95 in 2012. Non-GAAP revenue increased 3.3% to $10.05 billion from $9.73 billion in 2012. Non-GAAP ROE increased to 10.3% in 2013 from 9.7% in 2012. Strong full year 2013 results were driven by year-over-year fee revenue growth of 7.4% and good execution on priority to effectively manage expenses.
For 2014, the company expects total revenue growth to be in the range of 3% to 5% compared to 2013.
State Street Corporation is a financial holding company organized around 2 areas of activity:
- investment services (83.1% of net sales): services intended mainly to mutual funds, collective investment funds, corporate and public retirement plans, insurance companies and foundations. The group provides services including custody, daily pricing, record keeping and administration, shareholder services, foreign exchange, brokerage and other trading services, securities finance, loan and lease financing, investment manager and hedge fund manager operations outsourcing, performance, risk and compliance analytics;
- investment management (16.9%). State Street Corporation offers, primarily to institutional investors, investment management and investment research services for managing financial assets, including passive and active United States and non-United States equity and fixed-income.
The United States accounts for 55.1% of net sales.
STATE STREET CORPORATION 
