Asset servicing mandates newly announced in the first quarter of 2025, totaled approximately $182 billion of AUC/A. With respect to the current asset mandates of approximately $3.06 trillion of AUC/A that are yet to be installed as of March 31, 2025, we expect the conversion will mostly occur over the coming 24 months, with approximately 50% expected to be installed in the remainder of 2025, with the balance expected to be installed throughout 2026 and 2027.

AUC/A reached $46.73T as of March 31, 2025, a 6% increase compared to March 31, 2024. This growth was primarily due to higher quarter-end market levels and client flows.

AUM reached $4.67T as of March 31, 2025, a 9% increase compared to March 31, 2024. This growth was primarily due to higher quarter-end market levels and net inflows.

Operating leverage was 7.2% points in the first quarter of 2025, primarily reflecting the absence of the previously noted prior-year notable item, which represented 5.4% points of operating leverage. Operating leverage represents the difference between the percentage change in total revenue and the percentage change in total expenses, in each case relative to the same period of the prior year.

Total headcount increased 15% as of March 31, 2025, compared to the same period of 2024, primarily reflecting the consolidation of our operations joint venture in India in the second quarter of 2024. Headcount cost associated with that joint venture was previously reflected in compensation and employee benefits expenses.

We returned a total of $320 million to our shareholders in the form of common share repurchases and common stock dividends. We declared aggregate common stock dividends of $0.76 per share, totaling $220 million in the first quarter of 2025, compared to $0.69 per share, totaling $208 million in the same period of 2024.

We have significant operations, and clients, in many markets and jurisdictions globally that can be adversely impacted, locally or more broadly, by disruptions in those or other markets or economies, including local, regional and geopolitical developments affecting those markets or economies.

We assume significant credit risk of counterparties, who may also have substantial financial dependencies on other financial institutions, and these credit exposures and concentrations could expose us to financial loss.

Our fee revenue represents a significant portion of our revenue and is subject to and may decline based on, among other factors, market and currency declines, investment activities and preferences of our clients and their business mix, as well as the timing of new business onboarding.

We are subject to intense competition, which could negatively affect our profitability.

We are subject to significant pricing pressure and variability in our financial results and our AUC/A and AUM.

Our development and completion of new products and services, including State Street Alpha® and those related to wealth servicing, alternative investment management or digital assets or incorporating artificial intelligence, may impose costs on us, involve dependencies on third parties and may expose us to increased risks.

Information systems and communications expenses increased 15% in the first quarter of 2025, compared to the same period of 2024, largely related to higher technology and infrastructure investments.

Transaction processing services expenses increased 4% in the first quarter of 2025, compared to the same period of 2024 primarily due to higher market data and sub-custody costs.

Other expenses decreased 34% in the first quarter of 2025, compared to the same period of 2024, primarily reflecting the absence of the previously noted prior-year notable item and the timing of foundation funding.

Information systems and communications expenses increased 15% in the first quarter of 2025, compared to the same period of 2024, largely related to higher technology and infrastructure investments.

Our development and completion of new products and services, including State Street Alpha® and those related to wealth servicing, alternative investment management or digital assets or incorporating artificial intelligence, may impose costs on us, involve dependencies on third parties and may expose us to increased risks.

Software and processing fees revenue increased 9% in the first quarter of 2025 compared to the same period of 2024, primarily driven by higher front office software and data revenue associated with CRD.

We returned a total of $320 million to our shareholders in the form of common share repurchases and common stock dividends. We declared aggregate common stock dividends of $0.76 per share, totaling $220 million in the first quarter of 2025, compared to $0.69 per share, totaling $208 million in the same period of 2024.

In the first quarter of 2025, we acquired an aggregate of 1 million shares of common stock at an average per share cost of $99.60 and an aggregate cost of $100 million. These purchases were all conducted under the share repurchase program

On February 6, 2025, we issued 750,000 depositary shares, each representing a 1/100th ownership interest in a share of fixed rate reset, non-cumulative perpetual preferred stock, Series K, without par value per share, with a liquidation preference of $100,000 per share (equivalent to $1,000 per depositary share), in a public offering. The net proceeds from the offering were approximately $743 million.

Our businesses may be adversely affected by increased and conflicting political, regulatory and client scrutiny of asset management, stewardship and corporate sustainability or Environmental, Social and Governance (ESG) practices

We could be adversely affected by political, geopolitical, economic and market conditions, including, for example, as a result of liquidity or capital deficiencies (actual or perceived) by other financial institutions and related market and government actions, changes in U.S. trade or other policies or those policies of other nations, the ongoing conflicts in Ukraine and in the Middle East, major political shifts domestically or internationally

We have significant operations, and clients, in many markets and jurisdictions globally that can be adversely impacted, locally or more broadly, by disruptions in those or other markets or economies, including local, regional and geopolitical developments affecting those markets or economies

We face extensive and changing government regulation and supervision in the U.S. and non-U.S. jurisdictions in which we operate, which may increase our costs and compliance risks and may affect our business activities and strategies