State Street Corp (NYSE:STT) Q1 2019 Earnings Conference Call Transcript

Apr 23, 2019 • 10:00 am ET

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State Street Corp (NYSE:STT) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning and welcome to the State Street Corporation's First Quarter of 2019 Earnings Conference Call and Webcast. Today's discussion is being broadcasted live on State Street's webcast at investors.statestreet.com. This conference call is also being recorded for replay. State Street's conference call is copyrighted and all rights are reserved. This call may not be recorded for rebroadcast or distribution in whole or in part without the expressed written authorization from State Street Corporation. The only authorized broadcast of this call will be housed on the State Street website.

Now, I would like to introduce Ms. Ilene Fiszel Bieler, Global Head of Investor Relations at State Street.

Executive
Ilene Fiszel Bieler

Good morning, and thank you all for joining us. On our call today, our CEO, Ron O'Hanley, will speak first. Then Eric Aboaf, our CFO, will take you through our first quarter 2019 earnings slide presentation, which is available for download in the Investor Relations section of our website, investors.statestreet.com. Afterwards, we'll be happy to take questions. (Operator Instructions)

Before we get started, I would like to remind you that today's presentation will include results presented on a basis that excludes or adjust one or more items from GAAP. Reconciliations of these non-GAAP measures to the most directly comparable GAAP or regulatory measure are available in the appendix to our slide presentation. In addition, today's presentation will contain forward-looking statements. Actual results may differ materially from those statements due to a variety of important factors such as those factors referenced in our discussion today. Our forward-looking statements speak only as of today and we disclaim any obligation to update them even if our views change.

Now let me turn it over to Ron.

Executive
Ronald O'Hanley

Thanks, Ilene, and good morning, everyone. Turning to slide three, you will see, we announced our first quarter financial results this morning. Our results reflect challenging industry conditions, including lower average equity market levels relative to 1Q'18, continued pricing pressure and lower global industry flows that were somewhat improved from 4Q'18, but muted compared to the last few years. In light of the current environment, we are driving a culture of execution and productivity, as evidenced by the early accomplishments of our expense management program, which I will discuss further shortly.

Assets under custody and administration increased 3% relative to the end of fourth quarter of 2018 to $32.6 trillion, with new wins in the quarter of $120 billion and assets yet to be installed of $309 billion. At Global Advisors, assets under management increased by 12% relative to the end of the fourth quarter of 2018 to $2.8 trillion, supported by higher period end equity market values and net new inflows of over $70 billion.

Turning to slide four and before diving a bit deeper on the quarter, I would remind you that our vision is to be the leading asset servicer, asset manager and data insight provider to the owners and managers of the world's capital. Let me provide a check-in on the progress against the strategic execution priorities