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Line of Business Information
 12 Months Ended
Dec. 31, 2025
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 investment servicing 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, wealth managers, investment managers, foundations and endowments worldwide.
Through State Street Investment Services and State Street Markets, we offer a full range of back-, middle- and front-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 back- and middle-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, along with 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.
Investment Management provides a comprehensive range of investment management solutions and products for our clients through State Street Investment Management (previously State Street Global Advisors). Our investment management solutions span across equity, fixed income, liquidity and cash, multi-asset and alternatives strategies, delivered through products such as ETFs, custom indexed, and actively managed funds and mandates.
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)202520242023202520242023202520242023202520242023
Revenue:
Servicing fees$5,324 $5,016 $4,922 $— $— $— $— $— $— $5,324 $5,016 $4,922 
Management fees— — — 2,398 2,124 1,876 — — — 2,398 2,124 1,876 
Foreign exchange trading services1,441 1,248 1,140 170 138 125 3 15 — 1,614 1,401 1,265 
Securities finance481 415 402 24 23 24 — — — 505 438 426 
Software and processing fees927 888 811 — — — (24)— — 903 888 811 
Other fee revenue
209 188 145 27 35 35 — 66 — 236 289 180 
Total fee revenue8,382 7,755 7,420 2,619 2,320 2,060 (21)81 — 10,980 10,156 9,480 
Net interest income2,945 2,899 2,740 15 24 19 — — — 2,960 2,923 2,759 
Total other income4 2 — — — — — (81)(294)4 (79)(294)
Total revenue11,331 10,656 10,160 2,634 2,344 2,079 (21)— (294)13,944 13,000 11,945 
Provision for credit losses59 75 46 — — — — — — 59 75 46 
Expenses:
Compensation and employee benefits4,220 4,078 4,033 604 555 520 211 64 191 5,035 4,697 4,744 
Information systems and communications1,960 1,743 1,568 92 86 94 42 — 41 2,094 1,829 1,703 
Transaction processing services875 825 777 175 173 180 — — — 1,050 998 957 
Other
1,001 1,041 1,035 904 841 746 70 124 398 1,975 2,006 2,179 
Total expenses8,056 7,687 7,413 1,775 1,655 1,540 323 188 630 10,154 9,530 9,583 
Income before income tax expense$3,216 $2,894 $2,701 $859 $689 $539 $(344)$(188)$(924)$3,731 $3,395 $2,316 
Pre-tax margin28 %27 %27 %33 %29 %26 %27 %26 %19 %
Average assets (in billions)$339.9 $308.5 $271.5 $3.6 $3.2 $3.2 $343.5 $311.7 $274.7 
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)202520242023
Foreign exchange trading services(1)
$3 $15 $— 
Client rescoping (revenue impact)(2)
(24)— — 
Other fee revenue(3)
— 66 — 
Gains (losses) related to investment securities, net(4)
— (81)(294)
Deferred incentive compensation expense acceleration(5)
— (79)— 
Net repositioning (charges) release(6)
(326)2 (203)
Client rescoping (expense impact)(2)
(18)— — 
Other notable items(7)
21 (111)(427)
Total$(344)$(188)$(924)
(1) Amount consists of a 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) Amount related to a client rescoping which decreased income before income taxes by $42 million, of which $24 million is reflected in front office software and data revenue and $18 million is reflected in information systems and communications expenses.
(3) Amount consists of a $66 million gain on sale of equity investment, which is reflected in other fee revenue.
(4) 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.
(5) 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.
(6) Amount in 2025 includes a charge of $211 million, reflected in compensation and employee benefits primarily from workforce rationalization, a $69 million charge reflected in occupancy costs associated with real estate footprint optimization and other repositioning charges of $24 million and $22 million, reflected in information systems and communications and other expenses, respectively, relating to operating model changes. The amount in 2024 includes a $15 million release related to compensation and employee benefits, partially offset by $13 million related to occupancy costs associated with real estate footprint, and 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.
(7) Amount in 2025 primarily includes an FDIC special assessment release of $60 million and legal and related costs of $40 million reflected in other expenses. Amounts in 2024 and 2023 are primarily related to the FDIC special assessment of $99 million and $387 million, respectively, reflected in other expenses. Other notable items also include 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.