Betsy Graseck's questions to State Street Corp (STT) leadership • Q1 2025
Question
Betsy Graseck of Morgan Stanley asked for details on the scenarios underpinning the Net Interest Income (NII) outlook of flat year-over-year, plus or minus low single digits, and what factors would drive results to the high or low end of that range.
Answer
Interim CFO Mark Keating detailed the NII outlook, which is framed by two potential tailwinds (loan growth, investment portfolio rollovers) and two potential headwinds (rate environment, deposit mix). He explained that upside could be driven by a slower decline in noninterest-bearing deposits, favorable deposit mix, central banks pausing rate cuts (especially non-U.S.), and elevated long-term rates. He confirmed the guidance is based on market forward curves.