State Street Corporation, one of the world’s largest custodians and institutional asset managers, presented a solid second quarter of 2026, driven by growth in fees linked to the investment business, higher service revenues, and a favorable environment for financial markets. The highlight of the report from this global investment giant is the fact that the results not only exceeded market expectations but also marked new all-time highs in both revenues and assets under custody and administration (AUC/A), as well as assets under management (AUM).
According to the figures, the institution reported total revenues of 4.000 billion dollars, which represented a 17% increase compared to the same period of 2025, while earnings per share (EPS) reached 3.65 dollars, compared to 2.17 dollars a year earlier. Net income also showed significant expansion, favored by double-digit growth in practically all business lines.
One of the most relevant indicators for the wealth and asset management industry was the growth of managed assets. At the close of June, assets under custody and/or administration (AUC/A) rose to a record 57.9 trillion dollars, which represents an annual increase of approximately 15%, driven by the appreciation of financial markets and new institutional mandates.
In parallel, assets under management (AUM) grew to 6.3 trillion dollars, also an all-time high for the institution and nearly 17% above the level observed a year earlier, consolidating State Street as one of the main institutional managers in the world.
Additionally, the report notes that operating performance was primarily supported by an increase in fee revenue. Fee revenues recorded one of the most important advances of the quarter, favored by factors such as: higher average assets managed; an increase in custody service revenues; growth in fund administration; higher investment management revenues and greater activity from institutional clients. In contrast, net interest income once again showed more moderate evolution, reflecting an interest rate environment that is beginning to stabilize, meaning growth came primarily from the services business, considered the strategic core of State Street.
Another highlight was profitability
State Street details in its report that the return on tangible common equity (ROTCE) continued to strengthen, while the return on equity (ROE) was situated around 16.7%, reflecting greater operating efficiency and a better utilization of revenue growth. Likewise, the company reported its tenth consecutive quarter of positive operating leverage, meaning that revenues grew at a faster pace than expenses. During the quarter, State Street also maintained an important capital return policy for its shareholders.
The institution returned approximately 631 million dollars through dividends and share repurchases, maintaining a solid regulatory capital position and sufficient financial flexibility to continue investing in technology, automation, and artificial intelligence applied to institutional financial services.
In the conference call with investors, management highlighted that the growth reflects both the recovery of market activity and the capacity to attract new institutional clients and expand its service offering. The firm also raised its outlook for the remainder of 2026, supported by the dynamism observed during the first half of the year and sustained demand for administration, custody, and investment management solutions.
State Street’s results confirm a trend that has also been observed among other large asset managers during this reporting season: the growth of managed wealth continues to be the main engine of the business, while the increase in fees derived from higher assets under management and custody continues to compensate for the structural pressure on investment product prices.
