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Line of Business Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Line of Business Information Line of Business Information
Our operations are organized into two lines of business, which represent our reportable segments: Investment Servicing and Investment Management, which are defined based on products and services provided. The results of operations for these lines of business are not necessarily comparable with those of other companies, including companies in the financial services industry.
Investment Servicing provides a broad range of services and market and financing solutions to institutional clients, including mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, investment managers, foundations and endowments worldwide.
Through State Street Investment Services, State Street Global Markets® and State Street Alpha®, we offer a full range of back- and middle-office solutions,
including custody, accounting and fund administration services for traditional and alternative assets, as well as multi-asset class investments; recordkeeping, client reporting and investment book of record, transaction management, loans, cash, derivatives and collateral services; investor services operations outsourcing; performance, risk and compliance analytics; financial data management to support institutional investors; foreign exchange, brokerage and other trading services; securities finance, including prime services products; and deposit and short-term investment facilities.
Together with our middle- and back-office services, CRD’s front- and middle-office technology offerings form the foundation of State Street Alpha®. Our State Street Alpha platform combines portfolio management, trading and execution, analytics and compliance tools, and advanced data aggregation and integration with other industry platforms and providers. Included in CRD’s technology offerings are Charles River Investment Management Solution, a front-office technology offering that automates and simplifies the institutional investment process across asset classes, from portfolio management and risk analytics through trading and post-trade settlement, with integrated compliance and managed data throughout; Charles River for Private Markets, an investment management solution for institutions investing in Private Credit, Private Equity, Real Estate, Infrastructure, and Funds; and Charles River Wealth Management Solution, which provides portfolio management, trading compliance and manager/sponsor communication capabilities to wealth managers, private banks and financial advisors.
As the digital asset space continues to mature, we are building solutions to service, tokenize and safekeep digital assets. Our vision is to enable core digital asset infrastructure as a trusted provider of end-to-end solutions on a secure, interoperable blockchain.
Investment Management provides a comprehensive range of investment management solutions and products for our clients through State Street Global Advisors. Our investment management solutions include strategies across equity, fixed income, cash, multi-asset and alternatives; products such as SPDR® ETFs and index funds; and services including defined benefit, defined contribution, and Outsourced Chief Investment Officer.
Our investment servicing strategy is to focus on total client relationships and the full integration of our products and services across our client base through cross-selling opportunities. In general, our clients will use a combination of services, depending on their needs, rather than one product or service. For instance, a custody client may purchase securities finance and cash management services from different business units. Products and services that we provide to our clients are parts of an integrated offering to these clients. We price our products and services on the basis of overall client relationships and other factors; as a result, revenue may not necessarily reflect the stand-alone market price of these products and services within the business lines in the same way it would for separate business entities.
Our servicing and management fee revenue from the Investment Servicing and Investment Management business lines, including foreign exchange trading services and securities finance activities, represents approximately 70% of our consolidated total revenue. The remaining 30% is composed of software and processing fees, including front office software and data and lending related and other fees, as well as NII, which is largely generated by our investment of client deposits, short-term borrowings and long-term debt in a variety of assets, and net gains (losses) related to investment securities. These other revenue types are generally fully allocated to, or reside in, Investment Servicing and Investment Management.
Revenue and expenses are directly charged or allocated to our lines of business through management information systems. Our CODM is the chief executive officer. The line of business results are regularly provided to the CODM to evaluate the performance of each line of business and to inform how resources are allocated between those lines of business to best achieve management’s strategic and tactical goals. Capital is allocated based on the relative risks and capital requirements inherent in each business line, along with management judgment. Capital allocations may not be representative of the capital that might be required if these lines of business were separate business entities.
The following is a summary of our line of business results for the periods indicated.
Years Ended December 31,
Investment
Servicing		Investment
Management		OtherTotal
(Dollars in millions)202420232022202420232022202420232022202420232022
Revenue:
Servicing fees$5,016 $4,922 $5,087 $— $— $— $— $— $— $5,016 $4,922 $5,087 
Management fees— — — 2,124 1,876 1,939 — — — 2,124 1,876 1,939 
Foreign exchange trading services1,248 1,140 1,271 138 125 82 15 — 23 1,401 1,265 1,376 
Securities finance415 402 397 23 24 19 — — — 438 426 416 
Software and processing fees888 811 789 — — — — — — 888 811 789 
Other fee revenue(1)
188 145 46 35 35 (47)66 — — 289 180 (1)
Total fee revenue7,755 7,420 7,590 2,320 2,060 1,993 81 — 23 10,156 9,480 9,606 
Net interest income2,899 2,740 2,551 24 19 (7)— — — 2,923 2,759 2,544 
Total other income2 — (2)— — — (81)(294)— (79)(294)(2)
Total revenue10,656 10,160 10,139 2,344 2,079 1,986 — (294)23 13,000 11,945 12,148 
Provision for credit losses75 46 20 — — — — — — 75 46 20 
Expenses:
Compensation and employee benefits4,078 4,033 3,896 555 520 478 64 191 54 4,697 4,744 4,428 
Information systems and communications1,743 1,568 1,535 86 94 95 — 41 — 1,829 1,703 1,630 
Transaction processing services825 777 809 173 180 162 — — — 998 957 971 
Other
1,041 1,035 1,020 841 746 661 124 398 91 2,006 2,179 1,772 
Total expenses7,687 7,413 7,260 1,655 1,540 1,396 188 630 145 9,530 9,583 8,801 
Income before income tax expense$2,894 $2,701 $2,859 $689 $539 $590 $(188)$(924)$(122)$3,395 $2,316 $3,327 
Pre-tax margin27 %27 %28 %29 %26 %30 %26 %19 %27 %
Average assets (in billions)$308.5 $271.5 $283.2 $3.2 $3.2 $3.2 $311.7 $274.7 $286.4 
(1) Investment Management includes other revenue items that are primarily driven by equity market movements.
The “Other” columns presented in the previous table, represent amounts that are not allocated to our two lines of business. The following provides additional information about the items included in the line of business results “Other” column for the periods indicated.
Years Ended December 31,
Other
(Dollars in millions)202420232022
Fee revenue(1)
$81 $— $23 
Other Income(2)
(81)(294)— 
Deferred incentive compensation expense acceleration(3)
(79)— — 
Net repositioning charges(4)
2 (203)(70)
Net acquisition and restructuring costs(5)
— 15 (65)
FDIC special assessment and other(6)
(111)(442)(10)
Total$(188)$(924)$(122)
(1) Includes a $66 million gain on sale of equity investment and a $15 million revenue-related recovery associated with the proceeds from a 2018 foreign exchange benchmark litigation resolution, which is reflected in foreign exchange trading services revenue.
(2) Includes the loss on the sale of investment securities of $81 million and $294 million in 2024 and 2023, respectively, related to the repositioning of the investment portfolio.
(3) Deferred compensation expense acceleration of $79 million in 2024 reflected in compensation and employee benefits, associated with an amendment of certain outstanding deferred cash incentive compensation awards to align our deferred pay mix with peers.
(4) Net repositioning charges in 2024 includes a $15 million release reflected in compensation and employee benefits, partially offset by $13 million of occupancy charges related to footprint optimization. Net repositioning charges in 2023 includes $182 million reflected in compensation and employee benefits expenses related to workforce rationalization and $21 million of occupancy costs related to real estate footprint optimization.
(5) Acquisition and restructuring costs related to the Brown Brother Harriman Investor Services acquisition transaction that State Street is no longer pursuing.
(6) Includes an FDIC special assessment of $99 million and $387 million in 2024 and 2023, respectively, related to FDIC’s recovery of estimated losses to the Deposit Insurance Fund associated with the closures of Silicon Valley Bank and Signature Bank reflected in other expenses. Other includes a $12 million charge in 2024 reflected in other expenses and $41 million in 2023 reflected in information systems and communications, primarily related to operating model changes.