State Street Stock Draws Eyeballs After Q4 Profit Beat: Retails Remains Bullish

State Street gained retail attention on Friday after the firm topped Wall Street estimates for fourth-quarter earnings, helped by a rise in servicing revenue.

On an adjusted basis, the custodian bank reported earnings of $2.60 per share for the quarter, compared to the market estimate of $2.44 per share, according to FinChat data.

The company’s total revenue of $3.41 billion also exceeded the average analyst estimate of $3.34 billion.

Its net interest income (NII) for the fourth quarter rose 10% to $749 million, fueled by higher investment securities yields and double-digit loan growth. However, a shift in the deposit mix partially offset this.

State Street’s total assets under custody and administration jumped 11% compared to last year to $46.56 trillion, while assets under management rose 15% to $4.7 trillion.

The company said its fee revenue grew 13%, helped by robust growth in management fees and forex trading services fees.

Earlier this week, the world’s largest asset manager, BlackRock, also topped estimates, partly helped by higher fee revenue.

State Street’s provision for credit losses fell 40% to $12 million compared with the year-ago quarter.

For 2025, the company forecasted a flat growth in NII, impacted by a continued decline in non-interest-bearing deposits.

It also expects a 2% to 3% rise in annual expenses due to incremental business investments.

State Street’s shares were down 2.8% on Friday.

Retail sentiment on Stocktwits remained ‘bullish’ (62/100), albeit with a lower score from a day ago. While retail chatter was ‘extremely high.’

Over the past year, the stock has gained 30.7%.

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