State Street Corporation

Methodology

State Street's custody and asset management services generate relatively stable fee-based earnings, though market volatility and interest rate sensitivity create fluctuations. Asset servicing for institutional clients provides recurring revenue. Focus on normalized earnings through market cycles and the balance between custody fees, management fees, and net interest income.

Methodology

State Street typically trades at moderate PEG ratios reflecting slow-growth custody business characteristics offset by scale advantages and ETF management. Banks are better evaluated using price-to-tangible-book versus ROE. If using PEG, focus on fee income trends and normalize for market-driven asset level impacts.

Methodology

State Street offers an attractive dividend with management committed to capital returns from stable custody operations. The dividend adds meaningful value to total returns for this institutional service provider. For custody banks, dividend sustainability and operating leverage matter significantly alongside asset gathering trends.