State Street has reported a net income of $644m for the first quarter of 2025 (Q1 2025), a 39% increase from $463m during the same period a year ago.

The US-based asset manager has posted a total revenue of $3.28bn in Q1 2025, a rise of 5% compared with $3.13bn in the prior year.

In Q1 2025, the company’s assets under management (AUM) reached $4.7tn, a 9% increase from $4.2tn in Q1 2024, while assets under custody and/or administration (AUC/A) rose to $46.73tn, up 6% from $43.9tn in Q1 2024.

Net interest income (NII) remained almost unchanged at $714m.

Total expenses fell by 3% to $2.45bn but was up 3% excluding notable items.

Servicing fees rose 4% year-on-year due to “higher average market levels”, new business, and client activity, while management fees increased 10%.

The firm returned $320m to common shareholders in Q1 2025, comprising $100m in share repurchases and $220m in declared dividends.

At the end of the quarter, State Street’s CET1 ratio was 11.0%, a drop of 0.1% points from the previous year.

Its Tier 1 leverage ratio at quarter-end rose 0.1% points to 5.5% , while liquidity coverage ratio fell 1% point to 106%.

State Street chairman and CEO Ron O’Hanley said: “Our first quarter results reflect cross-firm growth, strong financial performance and a solid start to the year.

“Through broad-based year-over-year fee revenue growth and continued expense discipline, we achieved positive fee and total operating leverage alongside healthy pre-tax margin expansion, all while continuing to return capital to our shareholders.”