State Street Corporation (STT) reported servicing fees of $1,492 million in the third quarter of 2026, up 10% from a year earlier, as assets under custody and/or administration rose to a record $59.2 trillion, up 15% year over year. The company said the fee increase was driven by organic growth and higher average market levels.

Net interest income was $864 million, up 21% from a year earlier, with the fully taxable-equivalent net interest margin at 1.12% after a 16 bps year-over-year expansion. Versus the second quarter, NII was essentially flat as a higher day count offset a 1 bp NIM decline and a modest drop in average interest-earning assets.

Management fees were $797 million, up 20% year over year and 3% sequentially, on higher average market levels and $69 billion of quarterly long-term net inflows, partially offset by $62 billion of cash net outflows. Assets under management stood at $6.31 trillion.

Foreign exchange trading services revenue was $427 million, down 14% from $494 million in the second quarter, largely reflecting a lower mix of emerging-markets revenue. Client volumes still hit a record and rose 31% year over year. Other fee revenue was $98 million, down 29% sequentially, primarily due to market-related adjustments. Total fee revenue was $3,140 million, down 2% from $3,188 million in the second quarter. Total revenue was $4,004 million.

Total expenses were $2,620 million. Compensation and employee benefits fell 3% sequentially on lower performance-based incentive compensation. Information systems and communications rose 1% sequentially on technology and infrastructure investments. The pre-tax margin expanded to 34.6% from 34.3% in the second quarter. The company reported an eleventh consecutive quarter of year-over-year positive operating leverage excluding notable items.

The provision for credit losses was a $4 million reserve release associated with commercial loan sales and repayments. The allowance ended at $166 million.

Preliminary estimates put the standardized CET1 ratio at 11.0% at quarter-end, up 0.2 percentage points from 10.8% in the second quarter, primarily from earnings and lower risk-weighted assets, partially offset by continued capital return and a reduction in AOCI. State Street returned $651 million of capital to common shareholders, including $400 million of share repurchases and $251 million, or $0.92 a share, of declared dividends.

The company said it won its first Wealth Services mandate with one of the largest registered investment advisors in the United States, building on an existing Charles River relationship. New servicing fee revenue wins were $68 million, primarily from back office and Alternatives, with new servicing AUC/A wins of $429 billion. Quarter-end servicing fee revenue of $332 million and AUC/A of $2.98 trillion remained to be installed. Chairman and Chief Executive Officer Ron O’Hanley said the firm enters the final quarter of the year with momentum and confidence in delivering against medium-term targets.