Glenn Schorr's questions to State Street Corp (STT) leadership • Q1 2025
Question
Glenn Schorr from Evercore inquired if the current sales momentum allows State Street to gain market share, how the firm expands relationships after securing back-office deals, and about the reinvestment strategy for incoming deposits.
Answer
CEO Ronald O'Hanley explained that they believe they are gaining share and that back-office wins are often bundled with FX and securities finance services. He noted that about half of new business is associated with Alpha, and they focus on front-loading back-office installations to speed up revenue recognition. Interim CFO Mark Keating added that the reinvestment strategy for new deposits will remain 'super short' in the current environment, which could pressure the net interest margin.