State Street reports 56% growth in second quarter profit
State Street has posted a net income of $1.08bn for the second quarter (Q2) of 2026, compared with $693m a year earlier, an increase of 56%.
Total revenue climbed 17% year on year to $4.05bn, while total expenses rose 5% to $2.6bn.
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At the end of the quarter, investment servicing assets under custody and administration stood at a record $57.9tn, up 18% from a year earlier, supported by market levels, client flows and net new business.
Investment management assets under management reached a record $6.3tn, rising 23%, propelled by strong net inflows.
During 2Q26, State Street recorded new servicing fee revenue wins of $87m, largely from back-office activity and alternatives.
New servicing AUC/A wins were $384bn, with most of the total linked to asset managers and alternatives.
Servicing fee revenue scheduled for installation in future periods was $335m at quarter-end, while AUC/A yet to be installed totalled $2.9tn.
The company also disclosed a tokenised fund servicing capability in Luxembourg.
In software services, annual recurring revenue increased by about 14%, reflecting ongoing SaaS client implementations and conversions.
Within investment management, State Street added 38 new products and solutions. It also said the SPYM ETF had been chosen as the exclusive default investment for Trump Accounts.
State Street returned $631m to common shareholders in 2Q26, made up of $400m in share repurchases and $231m in declared dividends, equal to $0.84 per share.
It also said integrated liquidity and financing operations contributed to a 25% rise in foreign exchange client trading volumes and a 24% increase in average securities on loan.
State Street chairman and CEO Ronald P. O’Hanley said: “Our strong start to 2026 continued in the second quarter, powered by the strength of our global franchises. We achieved record total revenues, along with record AUC/A and AUM in the quarter, further underscoring our continued momentum. This drove significant positive operating leverage year-over-year in 2Q and a tenth consecutive quarter of positive operating leverage excluding notable items.
“Building on this continued strong performance, we are entering our next phase of growth, defined by new medium-term financial targets. We are confident in our ability to deliver on these goals and drive sustainable growth and performance for our clients, shareholders, and employees. That confidence is grounded in our scaled global franchises, distinctive strategic growth initiatives, our ongoing technology and AI-enabled transformation, and the One State Street value proposition.”
