State Street has reported net income of $747 million for the fourth quarter (Q4) of 2025, a decrease of 5% compared to the $783 million reported in the same period last year.
Total revenue for the period increased 7.5% to $3.67 billion.
The increase was due to improvements in fee-based income, net interest income and effects related to currency translation.
Net interest income increased 7% year-on-year, reaching $802 million.
Assets under management (AUM) at the end of the quarter amounted to $5.7 trillion, an increase of 20% year-over-year.
The company’s investment services assets under custody and/or administration (AUC/A) reached $53.8 trillion at the end of the quarter, representing a 16% increase year-over-year.
Higher market valuations and net inflows contributed to this growth.
Commission income increased 8% year-on-year.
This was driven by increased service and management fees, as well as higher revenues from foreign exchange trading and securities financing activities, which offset lower software and processing fees.
New service fee income commitments totaled $87 million, much of which is tied to administrative services and private markets.
At the end of the quarter, State Street reported $320 million in service fee revenue that has yet to be recognized in future periods, along with $2.5 billion in AUC/A that will be installed in the future.
During the quarter, the company introduced 37 new products during the fourth quarter and launched a total of 134 new offerings over the course of 2025.
State Street CEO and President Ron O’Hanley said: “2025 marked another year of strong performance and strategic progress for State Street. We delivered strong financial results, achieved positive operating leverage, expanded pre-tax margin and generated higher returns. Building on the strong foundation of recent years, we move forward with a clear focus on growth by delivering innovative products, executing targeted strategic investments and expanding wealth services through our partnership with Apex Fintech Solutions.
O’Hanley added: “In the fourth quarter, we achieved record fees and total revenue, reflecting consistent year-over-year growth, with continued strong performance across all investment services, investment management and our markets franchise.”
Recently, State Street agreed to acquire a 23% stake in India’s Groww AMC.
“State Street Reports 5% Decline in Q4 2025 Earnings” was created and originally published by Private Banker International, a brand owned by GlobalData.
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