State Street faces risks from intense competition, pricing pressure, market volatility (interest rates, equity, debt, currency), credit risk of counterparties, operational failures, cyberattacks, regulatory changes, and potential losses from investment securities and loans, especially commercial real estate and leveraged loans. Economic downturns, geopolitical events, and climate change also pose risks. Capital adequacy and liquidity are also subject to regulatory scrutiny and potential downgrades.
Financial Upside
State Street's fee revenue, net interest income, and assets under custody/administration are increasing. Management fees and foreign exchange trading services are growing. New business mandates and share repurchases are positive developments. The company is actively managing its capital and liquidity, maintaining or exceeding regulatory requirements. Debt issuances and redemptions are also positive.
