State Street Corporation (NYSE:STT) Q1 2024 Earnings Call Transcript

Eric Aboaf: And Ken, it’s Eric. I would just add that we’ve had these client activity headwinds that we described, which is a mix of risk-off sentiment, which has led to lower transactions through the custodial accounts. And then we’ve described this shift towards a cash mix, right? We don’t see those just continuing at the same pace. We see that as somewhat cyclical. You’d expect — I don’t think we generally expect much more cash to be on hand with clients. There are — I think there’s a case to be made that cash levels of client should actually start to get deployed over the next year and could even be neutral or a possible tailwind. So I think we’ve been going through a bit of a cyclical phase here on those environmental and activity type and mix headwinds. And I think without those, you could then see through to some of what Ron described around sales, installation and the underlying growth of the franchise.

Ken Usdin: Okay. And one follow-up then is also we can see the wins and what you put on and the yet to be installed to Ron’s point. Can you just talk about just the pipeline, is the pipeline continuing to strengthen? Is it consistent? Have you now put more of that pipeline through? Where do we stand on that?

Ron O’Hanley: Yes. Ken, I mean, I think what you should have heard from us today is that we have a sales target that we talked about in January, we’re standing by that sales target. That’s significantly up from last year, which was significantly up from the year before. So I mean you get there because of the pipeline. So we’re encouraged by our pipeline.

Ken Usdin: Okay, great. Thank you.

Operator: Thank you. And at this time, I would like to turn the call back over to Ron for closing remarks.

Ron O’Hanley: Well, thanks to all of you on the call for joining us.

Operator: Thank you. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we do ask that you please disconnect your lines.