State Street reports 5% decline in Q4 2025 profit

State Street has reported a net income of $747m for the fourth quarter (Q4) of 2025, a 5% decrease compared to the $783m recorded in the same period last year.

Total revenue for the period rose by 7.5% to $3.67bn.

The increase came from improvements in fee-based revenue, net interest income, and effects related to currency translation.

Net interest income climbed 7% year-on-year, reaching $802m.

Assets under management (AUM) at the end of the quarter stood at $5.7tn, a 20% increase from the prior year.

The company’s investment servicing assets under custody and/or administration (AUC/A) reached $53.8tn by the end of the quarter, representing a 16% increase from the previous year.

Higher market valuations and net inflows contributed to this growth.

Fee revenue rose by 8% year-on-year.

This was driven by increase in servicing and management fees, as well as higher revenues from foreign exchange trading and securities finance activities, which outweighed lower software and processing fees.

New servicing fee revenue commitments amounted to $87m, with much of this linked to back-office services and private markets.

At the end of the quarter, State Street reported $320m in servicing fee revenue yet to be recognised in future periods, along with $2.5tn in AUC/A to be installed going forward.

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 chairman Ron O’Hanley said: “2025 marked another year of strong performance and strategic progress for State Street. We delivered robust financial results, achieving positive operating leverage, expanding pre-tax margin, and generating higher returns. Building on the strong foundation of recent years, we moved 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 fee and total revenue, reflecting consistent year-over-year growth, with continued strong performance across Investment Services, Investment Management, and our Markets franchise.”

Recently, State Street agreed to take a 23% stake in India’s Groww AMC.

“State Street reports 5% decline in Q4 2025 profit ” was originally created and published by Private Banker International, a GlobalData owned brand.

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