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Understanding State Street’s Balance Sheet

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State Street’s total assets in 4Q17

State Street’s (STT) total assets stood at $238.4 billion at the end of 4Q17, compared with $242.6 billion in 4Q16. The company witnessed a marginal rise in total investment securities in 4Q17, from $97.16 billion in 4Q16 to $97.57 billion, which represented a 0.4% YoY (year-over-year) rise.

State Street saw a decline in interest-bearing deposits with banks, from ~$70.9 billion in 4Q16 to ~$67.2 billion in 4Q17, which represents a 5.2% YoY fall. However, the company witnessed a rise in trading account assets, from $1.02 billion in 4Q16 to $1.09 billion in 4Q17, which reflected a 6.7% YoY rise.

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STT’s total liabilities, excluding equity

As of December 31, 2017, State Street’s total liabilities (excluding equity) stood at $216.1 billion, compared with $221.4 billion as of December 31, 2016, which represented a 2.4% YoY fall. The company’s total deposits stood at $184.8 billion in 4Q17, compared with $187.1 billion in 4Q16, which reflected a 1.2% YoY fall.

State Street saw a marginal rise in its long-term debt, from $11.4 billion in 4Q16 to $11.6 billion in 4Q17. However, the company saw a substantial decline in other short-term borrowings, from $1.58 billion in 4Q16 to $1.14 billion in 4Q17, which represented a 27.8% YoY decline.

State Street’s enterprise-value-to-revenue ratio stood at ~20.1x during the past 12 months. By comparison, peers (XLF) SEI Investments (SEIC), PNC Financial Services (PNC), and Invesco Limited (IVZ) had enterprise-value-to-revenue ratios of ~7.7x, ~10.0x, and ~4.1x, respectively, during the same period.

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