SPY Parent State Street's Q2 Beat Overshadowed By Rising Costs, Dwindling Net Interest Income

Zinger Key PointsQ2 fee revenue rose 11% as AUM hit $5.1 trillion on strong inflows.Net interest income dipped 1%, while expenses climbed 11% on workforce cuts.PPI and Industrial Production drop Wednesday morning — see how Matt Maley is trading the reaction, live at 6 PM ET.State Street CorporationSTTshares are trading lower on Tuesdayafter reporting second-quarter results.The companyreportedadjusted earnings per share of $2.53, beating the analyst consensus estimate of $2.37. Quarterly sales of $3.448 billion (+8% year over year) outpacedthe Street view of $3.347 billion.Investment Management AUM as of quarter-end increased 17% to $5.1 trillion, mainly driven by higher quarter-end market levels and net inflows.Also Read:JPMorgan, Citi To Kick Off Bank Earnings As Wall Street Sees Profit BoomThis figure includes the Assets Under Management of the SPY ETF, one of the company's flagship offerings. The SPY ETF, which tracks the S&P 500 index, reported an AUM of $642.13 billion as of July 14, 2025. State Street serves as the trustee of the SPDR S&P 500 ETF Trust, with PDR Services LLC acting as its sponsor.Fee revenue increased 11%, reflecting broad-based strength across the franchise. Excluding notable items, fee revenue increased 12%.“In second quarter, we achieved a sixth straight quarter of positive year-over-year total operating leverage, excluding notable items, generated near-record sales in Investment Services, surpassed $5 trillion in AUM at State Street Investment Management and generated record FX trading client volumes,” said CEORon O’Hanley.Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100.Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get Started“The results of the Federal Reserve’s stress test reaffirm our financial strength, and we were pleased to announce a planned 11% increase in our per share quarterly common stock dividend,” the CEO added.Net interest income fell 1% year over year to $729 million, primarily driven by lower average short-end rates and deposit mix shift, partially offset by continued loan growth and securities portfolio repricing.Total provision for credit losses was $30 million in the second quarter, mainly due to the evolving macroeconomic environment and an increase in loan loss reserves associated with certain commercial real estate loans.Total expenses increased 11%, primarily driven by $100 million workforce rationalization and $18 million Alpha-related client rescoping notable items.Price Action:STT shares are trading lower by 3.84% to $105.65 at last check Tuesday.Loading...Loading...Read now:Bank Of America Loves These 8 Stocks For Third Quarter—And Says To Dump These 2 FastSTTState Street Corp$106.17-3.51%Stock Score Locked: Want to See it?Benzinga Rankings give you vital metrics on any stock – anytime.Reveal Full ScoreEdge RankingsMomentum83.63Growth61.92Quality8.47ValueN/APrice TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs© 2025 Benzinga.com. . .EarningsAnalyst RatingsOptionsDividendsIPOsDate▲▼ticker▲▼name▲▼Actual EPS▲▼EPS Surprise▲▼Actual Rev▲▼Rev Surprise▲▼Click to see moreEarningsupdatesEarnings CalendarNever Miss Important CatalystsSort by estimates, projected upside, profit surprises, and more to easily find new stocks to invest in or check up on your portfolio.Click to JoinPosted In:EarningsEquitiesNewsTop StoriesMarketsMoversGeneralwhy it's moving