BOSTON - State Street Corporation (NYSE:STT), a leading financial services provider, announced today the appointment of Patricia Halliday to its Board of Directors. Halliday, 58, brings over thirty years of experience in the financial sector, with a background that spans investment, corporate, and retail banking in the UK, Europe, and the US.
Her career has been marked by significant roles in risk management, including positions as chief risk officer at Santander (BME:SAN) in the UK and at GE Capital International. At Santander, she led the enterprise risk organization, and at GE Capital, she managed over 1,000 employees while implementing a comprehensive risk framework and governance standards. Halliday's experience also includes senior credit risk roles at Deutsche Bank (ETR:DBKGn) and Barclays (LON:BARC) Capital.
Ron O’Hanley, chairman and chief executive officer of State Street Corporation, expressed confidence in Halliday's appointment, citing her extensive risk management expertise and understanding of the regulatory environment. He noted that her insights and expertise would be valuable additions to the Board.
Amelia Fawcett, independent lead director at State Street, also praised Halliday's proven track record in managing risk across various markets and her collaborative approach to global organizational challenges.
Halliday earned her Bachelor of Arts degree from the University of Liverpool in the UK.
State Street Corporation is one of the world's foremost providers of financial services to institutional investors, including investment servicing, management, research, and trading. As of September 30, 2024, the company has $46.8 trillion in assets under custody and/or administration and $4.7 trillion in assets under management. State Street operates in over 100 geographic markets and employs roughly 53,000 people globally.
This announcement is based on a press release statement from State Street Corporation.
In other recent news, a study by zeb Consulting revealed a decline in profitability among asset managers, including BlackRock (NYSE:BLK), State Street, JPMorgan, and Goldman Sachs. The study predicts a continued decrease in profitability through 2028, partly due to investor preferences shifting towards lower-fee products like ETFs. Meanwhile, State Street has seen mixed reviews from analysts. While JPMorgan maintained its Underweight rating due to pricing pressures and slower revenue growth, Keefe, Bruyette & Woods raised its price target following a solid earnings report.
State Street's third-quarter earnings per share (EPS) of $2.26 exceeded expectations, leading to a 7% growth in fee revenues and a 9% increase in total revenues. The company also secured $466 billion in assets under custody/administration and achieved record quarterly net flows of $100 billion in its Global Advisors division. Despite these positive results, BofA Securities maintained an Underperform rating, suggesting other stocks may offer more attractive risk/reward opportunities. Deutsche Bank also maintained a Hold rating, citing potential volatility in Net Interest Income and the upcoming departure of CFO Eric Aboaf in 2025.
In terms of future expectations, State Street aims for total fee revenue growth of 4% to 5% and net interest income growth of 4% to 5%. The company also plans to generate $1 billion in software revenue over the next five years and is on track to win 6 to 8 new Alpha clients this year. Other recent developments include a partnership with Apollo Global Management (NYSE:APO) for private market opportunities and the launch of 20 new ETFs.
InvestingPro Insights
State Street Corporation's appointment of Patricia Halliday to its Board of Directors comes at a time when the company is experiencing strong financial performance. According to InvestingPro data, State Street has a market capitalization of $27.9 billion and has shown impressive revenue growth of 20.14% in the most recent quarter. This growth trajectory aligns well with Halliday's extensive risk management experience, which could prove valuable in maintaining the company's financial stability and growth.
InvestingPro Tips highlight State Street's commitment to shareholder value. The company has maintained dividend payments for 54 consecutive years and has raised its dividend for 13 consecutive years. This demonstrates a strong track record of financial stability and shareholder returns, which may be further enhanced by Halliday's expertise in risk management and regulatory compliance.
The company's P/E ratio of 14.97 suggests that it may be reasonably valued compared to its peers in the financial services sector. Additionally, State Street's strong return over the last three months, as noted in the InvestingPro Tips, indicates positive market sentiment that could be further bolstered by this strategic board appointment.
For investors seeking more comprehensive insights, InvestingPro offers 8 additional tips for State Street Corporation, providing a deeper understanding of the company's financial health and market position.
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