SEC Info - State Street Corp. - ‘8-K’ for 4/16/21


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
4-YEAR SUMMARY OF RESULTS

(Dollars in millions, except per share amounts, or where otherwise noted)	2017			2018			2019			2020
Year ended December 31:
Total fee revenue	$	9,001		$	9,454		$	9,147		$	9,499
Net interest income	2,304			2,671			2,566			2,200
Other income	(39)			6			43			4
Total revenue	11,266			12,131			11,756			11,703
Provision for credit losses	2			15			10			88
Total expenses	8,269			9,015			9,034			8,716
Income before income tax expense	2,995			3,101			2,712			2,899
Income tax expense	839			508			470			479

Net income	2,156			2,593			2,242			2,420
Net income available to common shareholders	$	1,972		$	2,404		$	2,009		$	2,257
Per common share:
Diluted earnings per common share	$	5.19		$	6.39		$	5.38		$	6.32
Average diluted common shares outstanding (in thousands)	380,213			376,476			373,666			357,106
Cash dividends declared per common share	$	1.60		$	1.78		$	1.98		$	2.08
Closing price per share of common stock (at year end)	97.61			63.07			79.10			72.78
Average balance sheet:
Investment securities	$	95,779		$	88,070		$	91,768		$	109,175
Total assets	219,450			223,385			223,334			269,334
Total deposits	163,808			161,408			158,262			193,225
Ratios and other metrics:
Return on average common equity	10.5		%	12.1		%	9.4		%	10.0		%
Pre-tax margin	26.6			25.6			23.1			24.8
Pre-tax margin, excluding notable items(1)	28.7			28.8			25.8			26.3
Net interest margin, fully taxable-equivalent basis	1.29			1.47			1.42			0.97
Common equity tier 1 ratio(2)(3)(4)	11.9			11.7			11.7			12.3
Tier 1 capital ratio(2)(3)(4)	15.0			15.5			14.5			14.4
Total capital ratio(2)(3)(4)	16.0			16.3			15.6			15.3
Tier 1 leverage ratio(2)(3)	7.3			7.2			6.9			6.4
Supplementary leverage ratio(2)(3)	6.5			6.3			6.1			8.1
Assets under custody and/or administration (in trillions)	$	33.12		$	31.62		$	34.36		$	38.79
Assets under management (in trillions)	2.78			2.51			3.12			3.47

(1) Notable items include acquisition and restructuring costs, repositioning charges, and other notable items. Refer to Reconciliations of pre-tax margin excluding notable items for details.
(2) The capital ratios presented are calculated in conformity with the applicable regulatory guidance in effect as of each period end. Effective January 1, 2018, the applicable final rules are in effect and the ratios are calculated based on fully phased-in CET1, tier 1, total capital and supplementary leverage numbers. We did not revise previously-filed reported capital metrics and ratios.
(3) Under the applicable bank regulatory rules, we are not required to and, accordingly, did not revise previously-filed reported capital metrics and ratios following the change in accounting for LIHTC.
(4) The reportable ratios represent the lower of each of the risk-based capital ratios under both the Standardized Approach and the Advanced Approaches.


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED FINANCIAL HIGHLIGHTS

	Quarters															% Change
(Dollars in millions, except per share amounts, or where otherwise noted)	1Q20			2Q20			3Q20			4Q20			1Q21				1Q21 vs. 1Q20			1Q21 vs. 4Q20
Income statement
Fee revenue	$	2,399		$	2,378		$	2,306		$	2,416		$	2,483			3.5	%		2.8	%
Net interest income	664			559			478			499			467				(29.7)			(6.4)
Other income	2			—			—			2			—				nm			nm
Total revenue	3,065			2,937			2,784			2,917			2,950				(3.8)			1.1
Provision for credit losses(1)	36			52			—			—			(9)				nm			nm
Total expenses	2,255			2,082			2,103			2,276			2,332				3.4			2.5
Income before income tax expense	774			803			681			641			627				(19.0)			(2.2)
Income tax expense	140			109			126			104			108				(22.9)			3.8
Net income	634			694			555			537			519				(18.1)			(3.4)
Net income available to common shareholders	$	580		$	662		$	517		$	498		$	489			(15.7)			(1.8)
Per common share:
Diluted earnings per common share	$	1.62		$	1.86		$	1.45		$	1.39		$	1.37			(15.4)			(1.4)
Average diluted common shares outstanding (in thousands)	357,993			356,413			357,168			357,719			355,690				(0.6)			(0.6)
Cash dividends declared per common share	$	.52		$	.52		$	.52		$	.52		$	.52			—			—
Closing price per share of common stock (as of quarter end)	53.27			63.55			59.33			72.78			84.01				57.7			15.4
Average for the quarter:
Investment securities	$	97,560		$	116,626		$	110,448		$	112,018		$	107,809			10.5			(3.8)
Total assets	251,181			284,688			264,384			277,055			296,328				18.0			7.0
Total deposits	180,160			197,069			189,226			206,343			226,232				25.6			9.6
Securities on loan:
Average securities on loan	$	378,200		$	377,344		$	375,296		$	404,022		$	429,991			13.7			6.4
End-of-period securities on loan	387,580			381,232			395,075			457,985			451,913				16.6			(1.3)
Ratios and other metrics:
Return on average common equity	10.9		%	12.1		%	8.9		%	8.4		%	8.4		%		(250)		bps	—		bps
Pre-tax margin	25.3			27.3			24.5			22.0			21.3				(400)			(70)
Pre-tax margin, excluding notable items(2)	25.6			27.7			24.7			26.9			22.6				(300)			(430)
Net interest margin, fully taxable-equivalent basis	1.30			0.93			0.85			0.84			0.75				(55)			(9)
Common equity tier 1 ratio(3)(4)	10.7			12.3			12.4			12.3			10.8				10			(150)
Tier 1 capital ratio(3)(4)	12.9			14.6			14.7			14.4			12.4				(50)			(200)
Total capital ratio(3)(4)	14.1			15.7			15.7			15.3			14.0				(10)			(130)
Tier 1 leverage ratio(3)	6.1			6.1			6.6			6.4			5.4				(70)			(100)
Supplementary leverage ratio(3)	5.4			8.3			8.2			8.1			7.2				180			(90)
Assets under custody and/or administration (in billions)	$	31,864		$	33,515		$	36,643		$	38,791		$	40,263			26.4	%		3.8	%
Assets under management (in billions)	2,689			3,054			3,148			3,467			3,591				33.5			3.6


(1) In accordance with ASU 2016-13, the provision for credit losses for 1Q20, 2Q20,3Q20 and 4Q20 includes the provision on funded and unfunded commitments as well as HTM securities.
(2) Notable items include acquisition and restructuring costs, repositioning charges, and other notable items. Refer to Reconciliations of pre-tax margin excluding notable items for details.
(3) The capital ratios presented are calculated in conformity with the applicable regulatory guidance in effect as of each period end. Effective January 1, 2018, the applicable final rules are in effect and the ratios are calculated based on fully phased-in CET1, tier 1, total capital and supplementary leverage numbers. We did not revise previously-filed reported capital metrics and ratios.
(4) The reportable ratios represent the lower of each of the risk-based capital ratios under both the Standardized Approach and the Advanced Approaches. Refer to Regulatory Capital for details on Standardized and Advanced Approaches ratios.
nm Denotes not meaningful


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED RESULTS OF OPERATIONS

	Quarters											% Change
(Dollars in millions, except per share amounts, or where otherwise noted)		1Q20		2Q20		3Q20		4Q20		1Q21			1Q21 vs. 1Q20		1Q21 vs. 4Q20

Fee revenue:
Servicing fees		$	1,287	$	1,272	$	1,301	$	1,307	$	1,371		6.5	%	4.9	%
Management fees(1)		464		444		479		493		493			6.3		—
Foreign exchange trading services(1)		444		325		270		324		346			(22.1)		6.8
Securities finance		92		92		84		88		99			7.6		12.5
Software and processing fees		112		245		172		204		174			55.4		(14.7)
Total fee revenue		2,399		2,378		2,306		2,416		2,483			3.5		2.8
Net interest income:
Interest income		868		674		520		513		471			(45.7)		(8.2)
Interest expense		204		115		42		14		4			(98.0)		(71.4)
Net interest income		664		559		478		499		467			(29.7)		(6.4)
Other income:
Gains (losses) related to investment securities, net		2		—		—		2		—			nm		nm
Other income		—		—		—		—		—			—		—
Total other income		2		—		—		2		—			nm		nm
Total revenue		3,065		2,937		2,784		2,917		2,950			(3.8)		1.1
Provision for credit losses		36		52		—		—		(9)			nm		nm
Expenses:
Compensation and employee benefits		1,208		1,051		1,062		1,129		1,242			2.8		10.0
Information systems and communications		385		376		395		394		421			9.4		6.9
Transaction processing services		254		233		234		257		270			6.3		5.1
Occupancy		109		109		109		162		109			—		(32.7)
Acquisition and restructuring costs		11		12		15		12		10			(9.1)		(16.7)
Amortization of other intangible assets		58		58		59		59		58			—		(1.7)
Other		230		243		229		263		222			(3.5)		(15.6)
Total expenses		2,255		2,082		2,103		2,276		2,332			3.4		2.5
Income before income tax expense		774		803		681		641		627			(19.0)		(2.2)
Income tax expense		140		109		126		104		108			(22.9)		3.8

Net income		$	634	$	694	$	555	$	537	$	519		(18.1)		(3.4)


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED RESULTS OF OPERATIONS (Continued)

	Quarters																% Change
(Dollars in millions, except per share amounts, or where otherwise noted)		1Q20			2Q20			3Q20			4Q20			1Q21				1Q21 vs. 1Q20			1Q21 vs. 4Q20
Adjustments to net income:
Dividends on preferred stock(2)(3)		$	(53)		$	(32)		$	(38)		$	(39)		$	(30)			(43.4)	%		(23.1)	%
Earnings allocated to participating securities		(1)			—			—			—			—				—			—
Net income available to common shareholders		$	580		$	662		$	517		$	498		$	489			(15.7)			(1.8)

Per common share:
Basic earnings		$	1.64		$	1.88		$	1.47		$	1.41		$	1.39			(15.2)			(1.4)
Diluted earnings		1.62			1.86			1.45			1.39			1.37				(15.4)			(1.4)
Average common shares outstanding (in thousands):
Basic		353,746			352,157			352,586			352,974			350,743				(0.8)			(0.6)
Diluted		357,993			356,413			357,168			357,719			355,690				(0.6)			(0.6)
Cash dividends declared per common share		$	.52		$	.52		$	.52		$	.52		$	.52			—			—
Closing price per share of common stock (as of quarter end)		53.27			63.55			59.33			72.78			84.01				57.7			15.4
Financial ratios:
Effective tax rate		18.1		%	13.6		%	18.5		%	16.1		%	17.2		%		(90)		bps	110		bps
Return on average common equity		10.9			12.1			8.9			8.4			8.4				(250)			—
Return on tangible common equity(4)		18.7			19.2			16.8			15.6			13.4				(530)			(220)
Pre-tax margin		25.3			27.3			24.5			22.0			21.3				(400)			(70)
Pre-tax margin, excluding notable items(5)		25.6			27.7			24.7			26.9			22.6				(300)			(430)

(1) Certain fees associated with our GLD ETFs have been reclassified from Foreign exchange trading services to Management fees to better reflect the nature of those fees. Prior periods have been reclassified to conform to current-period presentation. These fees were approximately $15 million, $19 million, $24 million and $23 million in the first, second, third and fourth quarters of 2020, respectively.
(2) We redeemed all outstanding Series C noncumulative perpetual preferred stock on March 15, 2020 at a redemption price of $500 million ($100,000 per share equivalent to $25.00 per depositary share) plus accrued and unpaid dividends. The difference between the redemption value and the net carrying value of approximately $9 million resulted in an EPS impact of approximately ($.03) per share in the first quarter of 2020.
(3) We redeemed an aggregate of $500 million, or 5,000 of the 7,500 outstanding shares of our non-cumulative perpetual preferred stock, Series F, for cash at a redemption price of $100,000 per share (equivalent to $1,000 per depositary share) plus all declared and unpaid dividends on March 15, 2021. The difference between the redemption value and the net carrying value of approximately $5 million resulted in an EPS impact of approximately ($.02) per share in the first quarter of 2021.
(4) Return on tangible common equity is calculated by dividing year-to-date annualized net income available to common shareholders (GAAP-basis) by average tangible common equity.
(5) Notable items include acquisition and restructuring costs and other notable items. Refer to Reconciliations of non-GAAP Financial Information pages for details.
nm Denotes not meaningful


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED STATEMENT OF CONDITION

	As of											% Change
(Dollars in millions, except per share amounts)		March 31, 2020		June 30, 2020		September 30, 2020		December 31, 2020		March 31, 2021			1Q21 vs. 1Q20		1Q21 vs. 4Q20
Assets:
Cash and due from banks		$	4,932	$	3,685	$	4,848	$	3,467	$	4,552		(7.7)	%	31.3	%
Interest-bearing deposits with banks		147,735		90,199		75,967		116,960		107,554			(27.2)		(8.0)
Securities purchased under resale agreements		1,037		4,026		4,499		3,106		5,238			nm		68.6
Trading account assets		872		883		840		815		786			(9.9)		(3.6)
Investment securities:
Investment securities available-for-sale		55,843		56,231		61,780		59,048		60,512			8.4		2.5
Investment securities held-to-maturity purchased under money market liquidity facility(1)		26,808		11,257		4,824		3,299		201			(99.3)		(93.9)
Investment securities held-to-maturity(2)		41,150		41,848		45,394		48,929		46,261			12.4		(5.5)
Total investment securities		123,801		109,336		111,998		111,276		106,974			(13.6)		(3.9)
Loans		32,379		26,860		27,035		27,925		31,585			(2.5)		13.1
Allowance for loan losses(3)		97		141		134		122		118			21.6		(3.3)
Loans, net		32,282		26,719		26,901		27,803		31,467			(2.5)		13.2
Premises and equipment, net(4)		2,225		2,212		2,193		2,154		2,143			(3.7)		(0.5)
Accrued interest and fees receivable		3,274		3,235		3,291		3,105		3,302			0.9		6.3
Goodwill		7,506		7,538		7,607		7,683		7,629			1.6		(0.7)
Other intangible assets		1,963		1,914		1,870		1,827		2,007			2.2		9.9
Other assets		36,900		30,495		32,061		36,510		45,233			22.6		23.9
Total assets		$	362,527	$	280,242	$	272,075	$	314,706	$	316,885		(12.6)		0.7
Liabilities:
Deposits:
Non-interest-bearing		$	69,404	$	42,132	$	41,183	$	49,439	$	57,079		(17.8)		15.5
Interest-bearing -- U.S.		110,106		87,197		85,434		102,331		108,372			(1.6)		5.9
Interest-bearing -- Non-U.S.		77,594		71,133		70,896		88,028		79,442			2.4		(9.8)
Total deposits(5)		257,104		200,462		197,513		239,798		244,893			(4.7)		2.1
Securities sold under repurchase agreements		5,373		3,513		2,430		3,413		587			(89.1)		(82.8)
Short-term borrowings under money market liquidity facility		25,665		11,261		4,819		3,302		200			(99.2)		(93.9)
Other short-term borrowings		4,835		912		5,838		685		642			(86.7)		(6.3)
Accrued expenses and other liabilities		30,151		23,634		22,064		27,503		31,722			5.2		15.3
Long-term debt		15,538		15,587		13,853		13,805		13,836			(11.0)		0.2
Total liabilities		338,666		255,369		246,517		288,506		291,880			(13.8)		1.2
Shareholders' equity:
Preferred stock, no par, 3,500,000 shares authorized:
Series D, 7,500 shares issued and outstanding		742		742		742		742		742			—		—
Series F, 2,500 shares issued and outstanding		742		742		742		742		247			(66.7)		(66.7)
Series G, 5,000 shares issued and outstanding		493		493		493		493		493			—		—
Series H, 5,000 shares issued and outstanding		494		494		494		494		494			—		—
Common stock, $1 par, 750,000,000 shares authorized(6)(7)		504		504		504		504		504			—		—
Surplus		10,155		10,179		10,192		10,205		10,227			0.7		0.2
Retained earnings		22,315		22,794		23,128		23,442		23,751			6.4		1.3
Accumulated other comprehensive income (loss)		(920)		(430)		(111)		187		(418)			(54.6)		nm
Treasury stock, at cost(8)		(10,664)		(10,645)		(10,626)		(10,609)		(11,035)			3.5		4.0
Total shareholders' equity		23,861		24,873		25,558		26,200		25,005			4.8		(4.6)
Total liabilities and equity		$	362,527	$	280,242	$	272,075	$	314,706	$	316,885		(12.6)		0.7

(1)Fair value of Investment securities held-to-maturity purchased under money market liquidity facility		$	26,808	$	11,294	$	4,841	$	3,304	$	201
(2) Fair value of investment securities held-to-maturity		42,201		43,037		46,510		50,003		46,752
(3) Total allowance for credit losses including off-balance sheet commitments		124		163		153		148		135
(4) Accumulated depreciation for premises and equipment		4,459		4,591		4,744		4,825		4,960
(5) Average total deposits		180,160		197,069		189,226		206,343		226,232
(6) Common stock shares issued		503,879,642		503,879,642		503,879,642		503,879,642		503,879,642
(7) Total common shares outstanding		351,943,858		352,383,250		352,797,695		353,156,279		348,032,982
(8) Treasury stock shares		151,935,784		151,496,392		151,081,947		150,723,363		155,846,660


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
AVERAGE STATEMENT OF CONDITION - RATES EARNED AND PAID - FULLY TAXABLE-EQUIVALENT BASIS(1)
The following table presents average rates earned and paid, on a fully taxable-equivalent basis, on consolidated average interest-earning assets and average interest-bearing liabilities for the quarters indicated. Tax-equivalent adjustments were calculated using a federal income tax rate of 21%, adjusted for applicable state income taxes, net of related federal benefit.
	Quarters																									% Change
	1Q20					2Q20					3Q20					4Q20					1Q21						1Q21 vs. 1Q20	1Q21 vs. 4Q20
(Dollars in millions; fully-taxable equivalent basis)	Average balance		Average rates			Average balance		Average rates			Average balance		Average rates			Average balance		Average rates			Average balance		Average rates						Average balance		Average balance
Assets:
Interest-bearing deposits with banks	$	67,120	0.49		%	$	86,744	0.01		%	$	72,717	(0.03)		%	$	79,779	(0.02)		%	$	95,235	(0.04)		%				41.9	%	19.4	%
Securities purchased under resale agreements(2)	1,805		14.38			3,342		2.95			4,181		1.91			4,459		1.47			4,568		0.88						153.1		2.4
Trading account assets	915		—			877		—			900		—			820		—			800		—						(12.6)		(2.4)
Investment securities:
Investment securities available-for-sale	54,242		1.59			57,462		1.31			59,593		1.02			60,799		1.00			59,191		0.95						9.1		(2.6)
Investment securities held-to-maturity	41,273		2.62			40,127		2.32			43,367		1.77			47,007		1.60			47,356		1.54						14.7		0.7
Investment securities held-to-maturity purchased under money market liquidity facility	2,045		1.57			19,037		1.49			7,488		1.32			4,212		1.35			1,262		1.35						(38.3)		(70.0)
Total investment securities	97,560		2.03			116,626		1.69			110,448		1.33			112,018		1.27			107,809		1.21						10.5		(3.8)
Loans (3)	28,468		2.62			27,369		2.30			25,974		2.13			28,298		2.05			28,025		2.05						(1.6)		(1.0)
Other interest-earning assets	10,764		1.70			9,831		0.13			11,586		0.10			12,824		0.10			18,296		0.10						70.0		42.7
Total interest-earning assets	206,632		1.70			244,789		1.12			225,806		0.92			238,198		0.86			254,733		0.76						23.3		6.9
Cash and due from banks	3,856					3,480					3,652					4,403					4,529								17.5		2.9
Other assets	40,693					36,419					34,926					34,454					37,066								(8.9)		7.6
Total assets	$	251,181				$	284,688				$	264,384				$	277,055				$	296,328							18.0		7.0
Liabilities:
Interest-bearing deposits:
U.S.	$	80,247	0.50		%	$	91,097	0.03		%	$	85,432	0.02		%	$	92,962	0.01		%	$	100,974	0.01		%				25.8		8.6
Non-U.S.(4)	64,340		(0.20)			66,977		(0.36)			69,514		(0.37)			74,324		(0.40)			78,433		(0.37)						21.9		5.5
Total interest-bearing deposits(4)	144,587		0.19			158,074		(0.13)			154,946		(0.16)			167,286		(0.17)			179,407		(0.16)						24.1		7.2
Securities sold under repurchase agreements	1,773		0.55			3,394		0.03			2,891		0.08			2,402		0.07			1,017		0.05						(42.6)		(57.7)
Short-term borrowings under money market liquidity facility	2,187		1.11			19,036		1.23			7,449		1.24			4,209		1.23			1,264		1.21						(42.2)		(70.0)
Other short-term borrowings	2,960		1.32			3,073		0.66			1,724		0.44			1,164		0.25			764		0.14						(74.2)		(34.4)
Long-term debt	13,288		2.64			15,574		2.45			14,794		1.86			13,830		1.75			13,819		1.74						4.0		(0.1)
Other interest-bearing liabilities	3,434		3.55			3,461		1.07			2,764		1.28			3,050		1.20			4,848		0.73						41.2		59.0
Total interest-bearing liabilities	168,229		0.49			202,612		0.23			184,568		0.09			191,941		0.03			201,119		0.01						19.6		4.8
Non-interest bearing deposits	35,573					38,995					34,280					39,057					46,825								31.6		19.9
Other liabilities	23,052					18,678					20,050					20,087					22,423								(2.7)		11.6
Preferred shareholders' equity	2,861					2,472					2,472					2,472					2,378								(16.9)		(3.8)
Common shareholders' equity	21,466					21,931					23,014					23,498					23,583								9.9		0.4
Total liabilities and shareholders' equity	$	251,181				$	284,688				$	264,384				$	277,055				$	296,328							18.0		7.0
Excess of rate earned over rate paid			1.21		%			0.89		%			0.83		%			0.84		%			0.75		%
Net interest margin			1.30		%			0.93		%			0.85		%			0.84		%			0.75		%
Net interest income, fully taxable-equivalent basis			$	668				$	564				$	482				$	503				$	471
Tax-equivalent adjustment			(4)					(5)					(4)					(4)					(4)
Net interest income, GAAP-basis(4)			$	664				$	559				$	478				$	499				$	467

(1) Average rates earned and paid on interest-earning assets and interest-bearing liabilities include the impact of hedge activities associated with our asset and liability management activities where applicable.
(2) Reflects the impact of balance sheet netting under enforceable netting agreements of approximately $124 billion, $103 billion, $83 billion and $91 billion in the first, second, third and fourth quarters of 2020, respectively, and approximately $87 billion in the first quarter of 2021. Excluding the impact of netting, the average interest rates would be approximately 0.21%, 0.09%, 0.09% and 0.07% in the first, second, third and fourth quarters of 2020, respectively, and approximately 0.04% in the first quarter of 2021.
(3) Average loans are presented on a gross basis. We adopted ASU 2016-13 on January 1, 2020, Allowance for Credit Losses. Average loans net of expected credit losses of approximately $28,398 million, $27,277 million, $25,839 million and $28,168 million in the first, second, third and fourth quarters of 2020, respectively, and approximately $27,904 million in the first quarter of 2021.
(4) Average rates includes the impact of FX swap expense of approximately ($2) million, ($17) million, ($19) million and ($25) million in the first, second, third and fourth quarters of 2020, respectively, and approximately ($21) million in the first quarter of 2021. Average rates for total interest-bearing deposits excluding the impact of FX swap expense were approximately 0.19%, (0.09)%, (0.11)% and (0.11)% for the first, second, third and fourth quarters of 2020, respectively, and approximately (0.11)% for the first quarter of 2021.


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO HOLDINGS BY ASSET CLASS

	Quarters
	1Q20			2Q20			3Q20				4Q20			1Q21
(Dollars in billions, or where otherwise noted)	Average Balance		Average Rate	Average Balance		Average Rate	Average Balance		Average Rate		Average Balance		Average Rate	Average Balance		Average Rate
Available-for-sale investment securities:
Government & agency securities	$	21.6	0.8 %	$	24.9	0.6 %	$	27.5	0.5	%	$	28.7	0.5 %	$	28.5	0.4	%
Asset-backed securities	6.4		1.5	5.9		1.3	6.5		1.0		7.4		0.9	7.9		0.9
Student loans	0.5		2.6	0.4		2.3	0.4		1.3		0.3		1.2	0.3		0.9
Credit cards	0.2		1.6	0.1		1.3	0.1		1.0		0.1		0.9	0.1		0.9
Auto & equipment	1.0		0.2	0.9		0.1	0.9		0.1		1.1		—	1.1		—
Non-U.S. residential mortgage backed securities	1.8		1.2	1.7		0.9	1.8		0.8		1.9		0.8	2.0		0.8
Collateralized loan obligation	2.7		2.0	2.7		1.8	3.1		1.3		3.7		1.2	4.2		1.2
Other	0.2		0.2	0.1		0.2	0.2		0.1		0.3		—	0.2		(0.1)
Mortgage-backed securities	15.3		2.8	16.1		2.3	14.4		1.9		13.1		1.8	10.3		1.8
Agency MBS	15.3		2.8	16.1		2.3	14.4		1.9		13.1		1.8	10.3		1.8
Non-agency MBS	—		—	—		—	—		—		—		—	—		—
CMBS	2.8		2.3	2.8		1.6	3.0		1.1		3.4		0.9	3.8		0.8
Corporate bonds	4.7		1.9	4.4		1.8	5.0		1.5		5.4		1.4	5.4		1.3
Covered bonds	0.6		0.5	0.5		0.3	0.5		0.3		0.5		0.2	0.5		0.2
Municipal bonds	0.8		2.7	0.8		2.7	0.9		2.6		0.8		2.6	0.8		2.6
Clipper tax-exempt bonds	0.9		3.9	0.9		3.9	0.9		3.8		0.8		3.8	0.7		3.8
Other	1.1		1.5	1.2		1.1	0.9		0.8		0.7		1.0	1.3		0.9
Total available-for-sale portfolio	$	54.2	1.6	$	57.5	1.3	$	59.6	1.0		$	60.8	1.0	$	59.2	0.9


	1Q20			2Q20			3Q20				4Q20			1Q21
(Dollars in billions, or where otherwise noted)	Average Balance		Average Rate	Average Balance		Average Rate	Average Balance		Average Rate		Average Balance		Average Rate	Average Balance		Average Rate
Held-to-maturity investment securities:
Government & agency securities	$	10.3	2.0 %	$	8.9	2.0 %	$	8.1	2.0 %		$	6.5	2.2 %	6.0		2.1	%
Asset-backed securities	4.2		2.7	4.4		1.8	4.5		1.3		5.0		1.3	5.0		1.3
Student loans	3.8		2.6	4.1		1.6	4.2		1.1		4.7		1.1	4.7		1.1
Non-U.S. residential mortgage backed securities	0.4		4.0	0.3		3.3	0.3		3.1		0.3		4.0	0.3		4.6
Other	—		2.7	—		1.5	—		1.2		—		1.2	—		1.1
Mortgage-backed securities	24.1		2.8	23.3		2.4	26.7		1.9		30.7		1.6	31.3		1.5
Agency MBS	24.0		2.7	23.2		2.4	26.6		1.9		30.6		1.6	31.2		1.5
Non-agency MBS	0.1		6.3	0.1		4.2	0.1		4.4		0.1		4.7	0.1		4.2
CMBS	2.7		2.3	3.5		1.9	4.1		1.7		4.8		1.6	5.0		1.5
Held-to-maturity under money market liquidity facility	2.0		1.6	19.0		1.5	7.5		1.3		4.2		1.4	1.3		1.3
Total held-for-maturity portfolio	$	43.3	2.5	$	59.1	2.0	$	50.9	1.7		$	51.2	1.6	$	48.6	1.5

Total investment securities	$	97.6	2.0	$	116.6	1.7	$	110.5	1.3		$	112.0	1.3	$	107.8	1.2


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO HOLDINGS BY ASSET CLASS (continued)

	Ratings
(Dollars in billions, or where otherwise noted)	UST/AGY			AAA			AA			A			BBB			<BBB			NR			Fair Value		% Total		Net Unrealized Pre-tax MTM Gain/(Loss) (In millions)(1)		Fixed Rate/ Floating Rate(2)
Available-for-sale investment securities:
Government & agency securities	31 %			31		%	26		%	4		%	6		%	1		%	1		%	$	29.0	47.9	%	$	141	97% / 3%
Asset-backed securities	—			94			6			—			—			—			—			8.5		14.0		23		0% / 100%
Student loans	—			37			63			—			—			—			—			0.3		3.4		4
Credit cards	—			100			—			—			—			—			—			0.1		1.1		1
Auto & equipment	—			83			17			—			—			—			—			1.2		13.9		1
Non-U.S. residential mortgage backed securities	—			96			4			—			—			—			—			2.0		24.0		11
Collateralized loan obligation	—			100			—			—			—			—			—			4.7		55.3		5
Other	—			62			38			—			—			—			—			0.2		2.3		1
Mortgage-backed securities	100			—			—			—			—			—			—			10.0		16.5		216		99% / 1%
Agency MBS	100			—			—			—			—			—			—			10.0		100.0		216
Non-agency MBS	—			—			—			—			—			—			—			—		—		—
CMBS	98			2			—			—			—			—			—			4.5		7.5		29		10% / 90%
Corporate bonds	—			—			10			36			54			—			—			5.4		8.9		69		98% / 2%
Covered bonds	—			100			—			—			—			—			—			0.4		0.7		4		16% / 84%
Municipal bonds	—			25			71			4			—			—			—			0.8		1.3		53		100% / 0%
Clipper tax-exempt bonds	—			14			61			18			7			—			—			0.7		1.1		14		0% / 100%
Other	—			8			59			33			—			—			—			1.3		2.1		(16)		88% / 12%
Total available-for-sale portfolio	39		%	30		%	17		%	6		%	8		%	—		%	—		%	$	60.5	100.0	%	$	533	75% / 25%

Fair Value	$	23.4		$	18.0		$	10.4		$	3.8		$	4.6		$	0.2		$	0.2

	UST/AGY			AAA			AA			A			BBB			<BBB			NR			Amortized Cost		% Total		Net Unrealized Pre-tax MTM Gain/(Loss) (In millions)(1)		Fixed Rate/ Floating Rate(2)
Held-to-maturity investment securities:
Government & agency securities	96		%	4		%	—		%	—		%	—		%	—		%	—		%	$	5.8	12.5	%	$	62	100% / 0%
Asset-backed securities	—			32			63			1			3			1			—			5.0		10.8		81		6% / 94%
Student loans	—			32			65			—			3			—			—			4.7		94.2		21
Non-U.S. residential mortgage backed securities	—			24			28			17			12			17			2			0.3		5.8		60
Other	—			—			—			100			—			—			—			—		—		—
Mortgage-backed securities	100			—			—			—			—			—			—			30.3		65.1		500		99% / 1%
Agency MBS	100			—			—			—			—			—			—			30.2		99.7		472
Non-agency MBS	—			1			7			9			20			42			21			0.1		0.3		28
CMBS	91			9			—			—			—			—			—			5.2		11.2		(88)		87% / 13%
Held-to-maturity under money market liquidity facility	—			—			—			—			—			—			100			0.2		0.4		—		100% / 0%
Total held-for-maturity portfolio	88		%	5		%	7		%	—		%	—		%	—		%	—		%	$	46.5	100.0	%	$	555	88% / 12%

Amortized Cost	$	40.4		$	2.3		$	3.2		$	0.1		$	0.2		$	0.1		$	0.2

Total investment securities																						$	107.0

(1) At March 31, 2021, the after-tax unrealized MTM gain/(loss) includes after-tax unrealized gain on securities available-for-sale of $394 million, after-tax unrealized gain on securities held-to-maturity of $362 million and after-tax unrealized loss primarily related to securities previously transferred from available-for-sale to held-to-maturity of $49 million.
(2) At March 31, 2021, fixed-to-floating rate securities had a book value of approximately $150 million or 0.14% of the total portfolio.


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO NON-U.S. INVESTMENTS

				Investment Securities
(Dollars in billions)	Fair Value		Average Rating	Gov't/Agency(1)(2)		ABS FRMBS		ABS All Other		Corporate Bonds		Covered Bonds		Other		MMLF
Available-for-sale:
United Kingdom	$	3.8	AAA	$	2.6	$	0.5	$	0.3	$	0.4	$	—	$	—	$	—
Canada	3.6		AA	2.8		—		—		0.2		—		0.6		—
Germany	3.2		AA	2.4		—		0.7		0.1		—		—		—
Australia	2.8		AAA	0.8		1.1		—		0.2		—		0.7		—
France	2.5		AA	1.2		—		0.8		0.3		0.2		—		—
Netherlands	1.4		AA	0.5		0.3		0.1		0.5		—		—		—
Austria	1.3		AA	1.3		—		—		—		—		—		—
Spain	1.2		BBB	1.2		—		—		—		—		—		—
Belgium	1.2		AA	1.1		—		—		—		0.1		—		—
Italy	0.9		A	0.6		0.1		0.2		—		—		—		—
Finland	0.8		AA	0.8		—		—		—		—		—		—
Ireland	0.8		A	0.8		—		—		—		—		—		—
Japan	0.5		A	0.5		—		—		—		—		—		—
Luxembourg	0.4		AA	0.3		—		—		0.1		—		—		—
Other	0.7		AA	0.4		—		—		0.2		0.1		—		—
Total Non-U.S. Investments(3)	$	25.1		$	17.3	$	2.0	$	2.1	$	2.0	$	0.4	$	1.3	$	—
U.S. Investments	35.4
Total available-for-sale	$	60.5
				Investment Securities
(Dollars in billions)	Amortized Cost		Average Rating	Gov't/Agency(1)(2)		ABS FRMBS		ABS All Other		Corporate Bonds		Covered Bonds		Other		MMLF
Held-to-maturity:
Singapore	$	0.3	AAA	$	0.3	$	—	$	—	$	—	$	—	$	—	$	—
Australia	0.1		A	—		0.1		—		—		—		—		—
United Kingdom	0.1		AA	—		0.1		—		—		—		—		—
Spain	0.1		BBB	—		0.1		—		—		—		—		—

Total Non-U.S. Investments(3)	$	0.6		$	0.3	$	0.3	$	—	$	—	$	—	$	—	$	—
U.S. Investments	45.9
Total held-for-maturity	$	46.5

Total Portfolio	$	107.0


(1) Sovereign debt is reflected in the government / agency column.
(2) As of March 31, 2021, the fair value included $10.1 billion of supranational and non-U.S. agency bonds.
(3) Country of collateral used except for corporates where country of issuer is used.


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ASSETS UNDER CUSTODY AND/OR ADMINISTRATION

	Quarters										% Change
(Dollars in billions)	1Q20		2Q20		3Q20		4Q20		1Q21			1Q21 vs. 1Q20		1Q21 vs. 4Q20
Assets Under Custody and/or Administration
By Product Classification(1):
Mutual funds	$	7,301	$	8,265	$	9,183	$	9,810	$	10,439		43.0	%	6.4	%
Collective funds, including ETFs	10,529		11,230		12,204		13,387		14,052			33.5		5.0
Pension products	6,723		6,689		7,317		7,594		7,843			16.7		3.3
Insurance and other products	7,311		7,331		7,939		8,000		7,929			8.5		(0.9)
Total Assets Under Custody and/or Administration	$	31,864	$	33,515	$	36,643	$	38,791	$	40,263		26.4		3.8
By Financial Instrument:
Equities	$	16,267	$	18,190	$	20,094	$	21,626	$	22,825		40.3		5.5
Fixed-income	11,096		11,342		12,403		12,834		13,022			17.4		1.5
Short-term and other investments	4,501		3,983		4,146		4,331		4,416			(1.9)		2.0
Total Assets Under Custody and/or Administration	$	31,864	$	33,515	$	36,643	$	38,791	$	40,263		26.4		3.8
By Geographic Location(2):
Americas	$	22,787	$	24,375	$	26,666	$	28,245	$	29,530		29.6		4.5
Europe/Middle East/Africa	7,112		7,155		7,675		8,101		8,256			16.1		1.9
Asia/Pacific	1,965		1,985		2,302		2,445		2,477			26.1		1.3
Total Assets Under Custody and/or Administration	$	31,864	$	33,515	$	36,643	$	38,791	$	40,263		26.4		3.8
Assets Under Custody(3)
By Product Classification(1):
Mutual funds	$	6,659	$	7,532	$	7,838	$	8,410	$	8,811		32.3		4.8
Collective funds, including ETFs	8,784		9,460		10,210		11,230		11,895			35.4		5.9
Pension products	5,386		5,354		5,852		6,085		6,283			16.7		3.3
Insurance and other products	2,983		3,053		3,433		3,327		3,145			5.4		(5.5)
Total Assets Under Custody	$	23,812	$	25,399	$	27,333	$	29,052	$	30,134		26.5		3.7
By Geographic Location(2):
Americas	$	17,701	$	19,226	$	20,450	$	21,822	$	22,715		28.3		4.1
Europe/Middle East/Africa	4,666		4,714		5,212		5,465		5,564			19.2		1.8
Asia/Pacific	1,445		1,459		1,671		1,765		1,855			28.4		5.1
Total Assets Under Custody	$	23,812	$	25,399	$	27,333	$	29,052	$	30,134		26.5		3.7

(1) Certain previously reported amounts presented have been reclassified to conform to current-period presentation.
(2) Geographic mix is generally based on the domicile of the entity servicing the funds and is not necessarily representative of the underlying asset mix.
(3) Assets under custody are a component of assets under custody and/or administration presented above.


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ASSETS UNDER MANAGEMENT

	Quarters										% Change
(Dollars in billions)	1Q20		2Q20		3Q20		4Q20		1Q21			1Q21 vs. 1Q20		1Q21 vs. 4Q20
Assets Under Management
By Asset Class and Investment Approach:
Equity:
Active	$	69	$	77	$	82	$	85	$	84		21.7	%	(1.2)	%
Passive	1,492		1,768		1,876		2,086		2,198			47.3		5.4
Total Equity(1)	1,561		1,845		1,958		2,171		2,282			46.2		5.1
Fixed-Income:
Active	86		88		85		90		91			5.8		1.1
Passive	392		405		424		459		463			18.1		0.9
Total Fixed-Income(1)	478		493		509		549		554			15.9		0.9
Cash(1)(2)	348		376		321		349		372			6.9		6.6
Multi-Asset-Class Solutions:
Active	39		41		40		40		34			(12.8)		(15.0)
Passive	101		116		124		146		155			53.5		6.2
Total Multi-Asset-Class Solutions(1)	140		157		164		186		189			35.0		1.6
Alternative Investments(3):
Active	28		28		28		39		27			(3.6)		(30.8)
Passive	134		155		168		173		167			24.6		(3.5)
Total Alternative Investments(1)	162		183		196		212		194			19.8		(8.5)
Total Assets Under Management	$	2,689	$	3,054	$	3,148	$	3,467	$	3,591		33.5		3.6
By Geographic Location:
North America	$	1,843	$	2,102	$	2,163	$	2,411	$	2,512		36.3		4.2
Europe/Middle East/Africa	418		464		483		512		530			26.8		3.5
Asia/Pacific	428		488		502		544		549			28.3		0.9
Total Assets Under Management	$	2,689	$	3,054	$	3,148	$	3,467	$	3,591		33.5		3.6


(1) As a result of the implementation of an improved internal data management system for product level data in the first quarter of 2021, asset class categorizations were reassessed resulting in some AUM reclasses between the categories presented. There was no impact to the total level of reported AUM.
(2) Includes both floating- and constant-net-asset-value portfolios held in commingled structures or separate accounts.
(3) Includes real estate investment trusts, currency and commodities, including SPDR® Gold Shares and SPDR® Gold MiniSharesSM Trust, We are not the investment manager for the SPDR® Gold Shares and SPDR®Gold MiniSharesSM Trust, but act as the marketing agent.

Exchange-Traded Funds(1)
By Asset Class:
Alternative Investments(2)	$	58	$	77	$	88	$	83	$	69		19.0	%	(16.9)	%

Equity(2)	473		570		605		708		777			64.3		9.7
Fixed-Income(2)	98		107		108		115		122			24.5		6.1

Total Exchange-Traded Funds	$	629	$	754	$	801	$	906	$	968		53.9		6.8

(1) Exchange-traded funds are a component of assets under management presented above.
(2) As a result of the implementation of an improved internal data management system for product level data in the first quarter of 2021, asset class categorizations were reassessed resulting in some AUM reclasses between the categories presented. There was no impact to the total level of reported AUM.


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INDUSTRY FLOW DATA BY ASSET CLASS

(Dollars in billions)			Quarters
			1Q20		2Q20		3Q20		4Q20		1Q21
North America - (US Domiciled) Morningstar Direct Market Data(1)(2)(3)
	Long Term Funds(4)		$	(240.1)	$	56.3	$	21.4	$	74.1	$	142.0
	Money Market		664.8		259.4		(165.8)		(82.3)		176.2
	ETF		22.1		69.6		60.1		119.7		180.3
		Total Flows	$	446.8	$	385.3	$	(84.3)	$	111.5	$	498.5

EMEA-Morningstar Direct Market Data(1)(2)(5)
	Long Term Funds(4)		$	(137.6)	$	167.6	$	134.4	$	249.9	$	290.1
	Money Market		11.6		152.8		60.0		58.6		(52.8)
	ETF		(2.9)		36.2		32.4		48.0		61.7
		Total Flows	$	(128.9)	$	356.6	$	226.8	$	356.5	$	299.0

(1) Data providers for North America and EMEA industry flows were changed to Morningstar from other providers in 3Q20 for consistency across regions and other efficiency considerations. Data collection and tabulation methodologies among data providers differ. All periods presented reflect data sourced from Morningstar. Prior period data therefore differs from data previously presented, which was sourced from other data providers. Industry data is provided for illustrative purposes only. It is not intended to reflect State Street’s activity or its clients’ activity and is indicative of only segments of the entire industry.
(2) Source: Morningstar Direct. The data includes long-term mutual funds, ETF’s and Money Market funds. Mutual fund data represents estimates of net new cash flow, which is new sales minus redemptions combined with net exchanges, while ETF data represents net issuance, which is gross issuance less gross redemptions. Data for Fund of Funds, Feeder funds and Obsolete funds were excluded from the series to prevent double counting. Data is from the Morningstar Direct Asset Flows database.
(3) The first quarter of 2021 data for North America (US domiciled) includes Morningstar actuals January and February 2021 and Morningstar estimates for March 2021.
(4) The long-term fund flows reported by Morningstar in North America are composed of US domiciled Market flows mainly in Equities, Allocation and Fixed Income asset classes. The long-term funds flows reported by Morningstar direct in EMEA are composed of the European market flows mainly in Equities, Allocation and Fixed Incomes asset classes.
(5) The first quarter of 2021 data for Europe is on a rolling three month basis for December 2020 through February 2021, sourced by Morningstar.


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
LINE OF BUSINESS INFORMATION

	Three Months Ended
	Investment Servicing									% Change					Investment Management									% Change					Other(1)						% Change				Total									% Change
(Dollars in millions)	1Q21			4Q20			1Q20			1Q21 vs. 4Q20		1Q21 vs. 1Q20			1Q21			4Q20			1Q20			1Q21 vs. 4Q20		1Q21 vs. 1Q20			1Q21		4Q20		1Q20		1Q21 vs. 4Q20		1Q21 vs. 1Q20		1Q21			4Q20			1Q20			1Q21 vs. 4Q20		1Q21 vs. 1Q20
Servicing fees	$	1,371		$	1,307		$	1,287		4.9	%	6.5	%		$	—		$	—		$	—		—	%	—	%		$	—	$	—	$	—	—	%	—	%	$	1,371		$	1,307		$	1,287		4.9	%	6.5	%
Management fees	—			—			—			—		—			493			493			464			—		6.3			—		—		—		—		—		493			493			464			—		6.3
Foreign exchange trading services	333			301			434			10.6		(23.3)			13			23			10			(43.5)		30.0			—		—		—		—		—		346			324			444			6.8		(22.1)
Securities finance	95			84			89			13.1		6.7			4			4			3			—		33.3			—		—		—		—		—		99			88			92			12.5		7.6
Software and processing fees	172			178			137			(3.4)		25.5			2			26			(25)			(92.3)		nm			—		—		—		—		—		174			204			112			(14.7)		55.4
Total fee revenue	1,971			1,870			1,947			5.4		1.2			512			546			452			(6.2)		13.3			—		—		—		—		—		2,483			2,416			2,399			2.8		3.5
Net interest income	473			495			663			(4.4)		(28.7)			(6)			4			1			nm		nm			—		—		—		—		—		467			499			664			(6.4)		(29.7)
Total other income	—			2			2			nm		nm			—			—			—			—		—			—		—		—		—		—		—			2			2			nm		nm
Total revenue	2,444			2,367			2,612			3.3		(6.4)			506			550			453			(8.0)		11.7			—		—		—		—		—		2,950			2,917			3,065			1.1		(3.8)
Provision for loan losses	(9)			—			36			nm		nm			—			—			—			—		—			—		—		—		—		—		(9)			—			36			—		nm
Total expenses	1,879			1,756			1,859			7.0		1.1			397			375			385			5.9		3.1			56		145		11		(61.4)		nm		2,332			2,276			2,255			2.5		3.4
Income before income tax expense	$	574		$	611		$	717		(6.1)		(19.9)			$	109		$	175		$	68		(37.7)		60.3			$	(56)	$	(145)	$	(11)	(61.4)		nm		$	627		$	641		$	774		(2.2)		(19.0)
Pre-tax margin	23.5		%	25.8		%	27.5		%	(230)		(400)		bps	21.5		%	31.8		%	15.0		%	(1,030)		650		bps											21.3		%	22.0		%	25.3		%	(70)		(400)		bps



















(1) Represents costs incurred that are not allocated to a specific line of business, including certain severance and restructuring costs, employee costs, acquisition costs and certain provisions for legal contingencies.
DM Denotes not meaningful


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ALLOWANCE FOR CREDIT LOSSES

	Quarters											% Change
(Dollars in millions)		1Q20		2Q20		3Q20		4Q20		1Q21			1Q21 vs. 1Q20		1Q21 vs. 4Q20
Allowance for credit losses:
Beginning balance		$	93	$	124	$	163	$	153	$	148		59.1	%	(3.3)	%
Provision for credit losses (funded commitments)		29		57		3		(6)		—			nm		nm
Provision for credit losses (unfunded commitments)		3		(4)		(2)		6		(7)			nm		nm
Provision for credit losses (held-to-maturity securities and all other)		4		(1)		(1)		—		(2)			nm		nm
Total provision		36		52		—		—		(9)			nm		nm
Charge-offs		(5)		(14)		(14)		(8)		—			nm		nm
Other(1)		—		1		4		3		(4)			—		nm
Ending balance(2)		$	124	$	163	$	153	$	148	$	135		8.9		(8.8)

Allowance for credit losses:
Loans		$	97	$	141	$	134	$	122	$	118		21.6		(3.3)
Held-to-maturity securities		4		4		3		3		2			(50.0)		(33.3)
Unfunded (off-balance sheet) commitments		22		18		15		22		15			(31.8)		(31.8)
All other		1		—		1		1		—			nm		nm
Ending balance(2)		$	124	$	163	$	153	$	148	$	135		8.9		(8.8)

(1) Consists primarily of FX translation.
(2) The allowance for credit losses on unfunded commitments is included within Other liabilities in the Consolidated Statement of Condition.
nm Not meaningful


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF NON-GAAP FINANCIAL INFORMATION
In addition to presenting State Street's financial results in conformity with U.S. generally accepted accounting principles, or GAAP, management also presents certain financial information on a basis that excludes or adjusts one or more items from GAAP. This latter basis is a non-GAAP presentation. In general, our non-GAAP financial results adjust selected GAAP-basis financial results to exclude the impact of revenue and expenses outside of State Street’s normal course of business or other notable items, such as acquisition and restructuring charges, repositioning charges, gains/losses on sales, as well as, for selected comparisons, seasonal items. For example, we sometimes present expenses on a basis we may refer to as "expenses ex-notable items", which exclude notable items and, to provide additional perspective on both prior year quarter and sequential quarter comparisons, also exclude seasonal items. Management believes that this presentation of financial information facilitates an investor's further understanding and analysis of State Street's financial performance and trends with respect to State Street’s business operations from period-to-period, including providing additional insight into our underlying margin and profitability. In addition, Management may also provide additional non-GAAP measures. For example, we present capital ratios, calculated under regulatory standards scheduled to be effective in the future or other standards, that management uses in evaluating State Street’s business and activities and believes may similarly be useful to investors. Additionally, we may present revenue and expense measures on a constant currency basis to identify the significance of changes in foreign currency exchange rates (which often are variable) in period-to-period comparisons. This presentation represents the effects of applying prior period weighted average foreign currency exchange rates to current period results.
Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in conformity with GAAP.

	Quarters											% Change
(Dollars in millions)		1Q20		2Q20		3Q20		4Q20		1Q21			1Q21 vs. 1Q20			1Q21 vs. 4Q20
Fee Revenue:
Total fee revenue, GAAP-basis		$	2,399	$	2,378	$	2,306	$	2,416	$	2,483		3.5	%		2.8	%

Total fee revenue, excluding notable items		$	2,399	$	2,378	$	2,306	$	2,416	$	2,483		3.5			2.8

Total Revenue:
Total revenue, GAAP-basis		$	3,065	$	2,937	$	2,784	$	2,917	$	2,950		(3.8)	%		1.1	%


Total revenue, excluding notable items		$	3,065	$	2,937	$	2,784	$	2,917	$	2,950		(3.8)			1.1

Expenses:
Total expenses, GAAP-basis		$	2,255	$	2,082	$	2,103	$	2,276	$	2,332		3.4	%		2.5	%
Less: Notable expense items:
Acquisition and restructuring costs(1)		(11)		(12)		(15)		(12)		(10)			(9.1)			(16.7)
Repositioning charges		—		—		—		(133)		—			—			nm
Legal and other		—		—		9		—		(29)			nm			nm
Total expenses, excluding notable items		$	2,244	$	2,070	$	2,097	$	2,131	$	2,293		2.2			7.6

Fee Operating Leverage, GAAP-Basis:
Total fee revenue, GAAP-basis		$	2,399	$	2,378	$	2,306	$	2,416	$	2,483		3.5	%		2.8	%
Total expenses, GAAP-basis		2,255		2,082		2,103		2,276		2,332			3.4			2.5
Fee operating leverage, GAAP-basis													10		bps	30		bps

Fee Operating Leverage, excluding notable items:
Total fee revenue, excluding notable items (as reconciled above)		$	2,399	$	2,378	$	2,306	$	2,416	$	2,483		3.5	%		2.8	%
Total expenses, excluding notable items (as reconciled above)		2,244		2,070		2,097		2,131		2,293			2.2			7.6
Fee operating leverage, excluding notable items													130		bps	(480)		bps

Operating Leverage, GAAP-Basis:
Total revenue, GAAP-basis		$	3,065	$	2,937	$	2,784	$	2,917	$	2,950		(3.8)	%		1.1	%
Total expenses, GAAP-basis		2,255		2,082		2,103		2,276		2,332			3.4			2.5
Operating leverage, GAAP-basis													(720)		bps	(140)		bps

Operating Leverage, excluding notable items:
Total revenue, excluding notable items (as reconciled above)		$	3,065	$	2,937	$	2,784	$	2,917	$	2,950		(3.8)	%		1.1	%
Total expenses, excluding notable items (as reconciled above)		2,244		2,070		2,097		2,131		2,293			2.2			7.6
Operating leverage, excluding notable items													(600)		bps	(650)		bps



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF NON-GAAP FINANCIAL INFORMATION (Continued)

	Quarters																% Change
(Dollars in millions, except Earnings per share, or where otherwise noted)		1Q20			2Q20			3Q20			4Q20			1Q21				1Q21 vs. 1Q20			1Q21 vs. 4Q20
Net Income Available to Common Shareholders:
Net Income Available to Common Shareholders, GAAP-basis		$	580		$	662		$	517		$	498		$	489			(15.7)	%		(1.8)	%
Less: Notable items
Acquisition and restructuring costs(1)		11			12			15			12			10
Repositioning charges		—			—			—			133			—
Legal and other		—			—			(9)			—			29
Preferred securities redemption(2)(3)		9			—			—			—			5
Tax impact of notable items		(3)			(3)			(4)			(37)			(10)
Net Income Available to Common Shareholders, excluding notable items		$	597		$	671		$	519		$	606		$	523			(12.4)			(13.7)

Diluted Earnings per Share:
Diluted earnings per share, GAAP-basis		$	1.62		$	1.86		$	1.45		$	1.39		$	1.37			(15.4)	%		(1.4)	%
Less: Notable items
Acquisition and restructuring costs(1)		0.02			0.02			0.03			0.03			0.02
Repositioning charges		—			—			—			0.27			—
Legal and other		—			—			(0.03)			—			0.06
Preferred securities redemption(2)(3)		0.03			—			—			—			0.02
Diluted earnings per share, excluding notable items		$	1.67		$	1.88		$	1.45		$	1.69		$	1.47			(12.0)			(13.0)

Pre-tax Margin:
Pre-tax margin, GAAP-basis		25.3		%	27.3		%	24.5		%	22.0		%	21.3%				(400)		bps	(70)		bps
Less: Notable items
Acquisition and restructuring costs(1)		0.3			0.4			0.5			0.4			0.3
Repositioning charges		—			—			—			4.5			—
Legal and other		—			—			(0.3)			—			1.0
Pre-tax margin, excluding notable items		25.6%			27.7%			24.7%			26.9%			22.6%				(300)			(430)

Return on Average Common Equity:
Return on average common equity, GAAP-basis		10.9		%	12.1		%	8.9		%	8.4		%	8.4		%		(250)		bps	—		bps
Less: Notable items
Acquisition and restructuring costs(1)		0.2			0.2			0.2			0.2			0.2
Repositioning charges		—			—			—			2.4			—
Legal and other		—			—			(0.1)			—			0.5
Preferred securities redemption(2)(3)		0.2			—			—			—			0.1
Tax impact of notable items		(0.1)			—			—			(0.7)			(0.2)
Return on average common equity, excluding notable items		11.2%			12.3%			9.0%			10.3%			9.0%				(220)			(130)

(1) Acquisition and restructuring costs of approximately $10 million in 1Q21, consisting of acquisition costs primarily related to CRD.
(2) We redeemed all outstanding Series C noncumulative perpetual preferred stock on March 15, 2020 at a redemption price of $500 million ($100,000 per share equivalent to $25.00 per depositary share) plus accrued and unpaid dividends. The difference between the redemption value and the net carrying value of approximately $9 million resulted in an EPS impact of approximately ($.03) per share in the first quarter of 2020.
(3) We redeemed an aggregate of $500 million, or 5,000 of the 7,500 outstanding shares of our non-cumulative perpetual preferred stock, Series F, for cash at a redemption price of $100,000 per share (equivalent to $1,000 per depositary share) plus all declared and unpaid dividends on March 15, 2021.The difference between the redemption value and the net carrying value of approximately $5 million resulted in an EPS impact of approximately ($.02) per share in the first quarter of 2021.


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF PRE-TAX MARGIN EXCLUDING NOTABLE ITEMS

(Dollars in millions)			2017			2018(1)			2019			2020
Total revenue:
Total revenue, GAAP-basis			$	11,266		$	12,131		$	11,756		$	11,703
		Less: Gain on sale	(56)			—			—			—
		Add: Impact of tax legislation	20			—			—			—
		Add: Legal and other	—			8			—			—
		Less: Other income	—			—			(44)			—
Total revenue, excluding notable items			11,230			12,139			11,712			11,703

Provision for credit losses			2			15			10			88
Total expenses:
Total expenses, GAAP-basis			8,269			9,015			9,034			8,716
	Less:
		Acquisition and restructuring costs	(266)			(24)			(77)			(50)
		Legal and other	—			(42)			(172)			9
		Repositioning charges(1)	—			(324)			(110)			(133)
Total expenses, excluding notable items			8,003			8,625			8,675			8,542
Income before income tax expense, excluding notable items			$	3,225		$	3,499		$	3,027		$	3,073

Income before income tax expense, GAAP-basis			$	2,995		$	3,101		$	2,712		$	2,899

Pre-tax margin, excluding notable items			28.7		%	28.8		%	25.8		%	26.3		%
Pre-tax margin, GAAP-basis			26.6			25.6			23.1			24.8

(1) Includes charges in 2018 that were previously disclosed as "Business exit: Channel Islands".


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF NOTABLE ITEMS

											% Change
(Dollars in millions)	1Q20		2Q20		3Q20		4Q20		1Q21			1Q21 vs. 1Q20		1Q21 vs. 4Q20
Total revenue:
Total revenue, GAAP-basis	$	3,065	$	2,937	$	2,784	$	2,917	$	2,950		(3.8)	%	1.1	%


Total revenue, excluding notable items	3,065		2,937		2,784		2,917		2,950			(3.8)		1.1

Total expenses:
Total expenses, GAAP basis	$	2,255	$	2,082	$	2,103	$	2,276	$	2,332		3.4		2.5
Less: Notable expense items:
Repositioning charges:
Compensation and employee benefits	—		—		—		(82)		—			—		nm
Occupancy	—		—		—		(51)		—			—		nm
Repositioning charges	—		—		—		(133)		—			—		nm
Acquisition and restructuring costs	(11)		(12)		(15)		(12)		(10)			(9.1)		(16.7)
Legal and other	—		—		9		—		(29)			nm		nm
Total expenses, excluding notable items(1)	2,244		2,070		2,097		2,131		2,293			2.2		7.6
Seasonal expenses	(151)		—		—		—		(176)			16.6		nm
Total expenses excluding notable items and seasonal expenses(1)	2,093		2,070		2,097		2,131		2,117			1.1		(0.7)
CRD expenses	(58)		(61)		(62)		(67)		(67)			15.5		—
CRD related expenses: intangible asset amortization costs	(17)		(16)		(17)		(16)		(17)			—		6.3
Total expenses, excluding notable items, seasonal items, CRD and CRD related expenses	2,018		1,993		2,018		2,048		2,033			0.7		(0.7)

Net Income Available to Common Shareholders, GAAP-basis	$	580	$	662	$	517	$	498	$	489		(15.7)		(1.8)
Notable items as reconciled above: pre-tax	11		12		6		145		39
Tax impact on notable items as reconciled above	(3)		(3)		(4)		(37)		(10)
Preferred security cost	9		—		—		—		5
Net Income Available to Common Shareholders, excluding notable items	$	597	$	671	$	519	$	606	$	523		(12.4)		(13.7)

(1)Please refer to Reconciliations of Constant Currency FX Impact within this addendum for FX impact on this line item.
nm Denotes not meaningful


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF CONSTANT CURRENCY FX IMPACTS

	Reported						Currency Translation Impact				Excluding Currency Impact				% Change Constant Currency
(Dollars in millions)	1Q20		4Q20		1Q21		1Q21 vs. 1Q20		1Q21 vs. 4Q20		1Q21 vs. 1Q20		1Q21 vs. 4Q20		1Q21 vs. 1Q20		1Q21 vs. 4Q20
GAAP-Basis Results:
Fee revenue:
Servicing fees	$	1,287	$	1,307	$	1,371	$	32	$	8	$	1,339	$	1,363	4.0	%	4.3	%
Management fees	464		493		493		9		3		484		490		4.3		(0.6)
Foreign exchange trading services	444		324		346		—		—		346		346		(22.1)		6.8
Securities finance	92		88		99		—		—		99		99		7.6		12.5
Software and processing fees	112		204		174		2		1		172		173		53.6		(15.2)
Total fee revenue	2,399		2,416		2,483		43		12		2,440		2,471		1.7		2.3
Net interest income	664		499		467		16		2		451		465		(32.1)		(6.8)
Total other income	2		2		—		—		—		—		—		—		—
Total revenue	$	3,065	$	2,917	$	2,950	$	59	$	14	$	2,891	$	2,936	(5.7)		0.7

Expenses:
Compensation and employee benefits	$	1,208	$	1,129	$	1,242	$	24	$	6	$	1,218	$	1,236	0.8		9.5
Information systems and communications	385		394		421		3		1		418		420		8.6		6.6
Transaction processing services	254		257		270		6		1		264		269		3.9		4.7
Occupancy	109		162		109		2		—		107		109		(1.8)		(32.7)
Acquisition and restructuring costs	11		12		10		—		—		10		10		(9.1)		(16.7)
Amortization of other intangible assets	58		59		58		1		—		57		58		(1.7)		(1.7)
Other	230		263		222		4		3		218		219		(5.2)		(16.7)
Total expenses	$	2,255	$	2,276	$	2,332	$	40	$	11	$	2,292	$	2,321	1.6		2.0

Total expenses, excluding notable items - Non-GAAP	$	2,244	$	2,131	$	2,293	$	40	$	11	$	2,253	$	2,282	0.4	%	7.1	%


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF TANGIBLE COMMON EQUITY RATIO

The tangible common equity, or TCE, ratio is a capital ratio that management believes provides context useful in understanding and assessing State Street's capital adequacy. The TCE ratio is calculated by dividing consolidated average common shareholders’ equity by average consolidated total assets, after reducing both amounts by average goodwill and average other intangible assets net of related deferred taxes. Total assets reflected in the TCE ratio also exclude average cash balances on deposit at the Federal Reserve Bank and other central banks in excess of required reserves. The TCE ratio is not required by GAAP or by banking regulations, but is a metric used by management to evaluate the adequacy of State Street’s capital levels. Since there is no authoritative requirement to calculate the TCE ratio, our TCE ratio is not necessarily comparable to similar capital measures disclosed or used by other companies in the financial services industry. Average tangible common equity and adjusted average tangible assets are non-GAAP financial measures and should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP or other applicable requirements. Reconciliations with respect to the calculation of the TCE ratios are provided within the Reconciliation of Tangible Common Equity Ratio within this package.
The following table presents the calculation of State Street's ratios of tangible common equity to total tangible assets.
		Quarters
(Dollars in millions)		1Q20			2Q20			3Q20			4Q20			1Q21
Average consolidated total assets		$	251,181		$	284,688		$	264,383		$	277,055		$	296,328
Less:
Average goodwill		7,522			7,512			7,603			7,637			7,662
Average other intangible assets		1,996			1,938			1,902			1,849			1,798
Average cash balances held at central banks in excess of required reserves		64,383			83,801			69,072			76,086			92,207
Plus related deferred tax liabilities		476			478			483			489			489
Average tangible assets	A	$	177,756		$	191,915		$	186,289		$	191,972		$	195,150
Consolidated average common shareholders' equity		$	21,466		$	21,931		$	23,014		$	23,498		$	23,583
Less:
Average goodwill		7,522			7,512			7,603			7,637			7,662
Average other intangible assets		1,996			1,938			1,902			1,849			1,798
Adjusted average equity		11,948			12,481			13,509			14,012			14,123
Plus related deferred tax liabilities		476			478			483			489			489
Average tangible common equity	B	$	12,424		$	12,959		$	13,992		$	14,501		$	14,612
Average tangible common equity ratio	B/A	7.0		%	6.8		%	7.5		%	7.6		%	7.5		%

GAAP-basis:
Net income available to common shareholders		$	580		$	662		$	517		$	498		$	489
Return on tangible common equity - Non-GAAP		18.7		%	19.2		%	16.8		%	15.6		%	13.4		%


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
REGULATORY CAPITAL

	Quarters
	1Q20						2Q20						3Q20						4Q20						1Q21
(Dollars in millions)	Basel III Advanced Approaches(1)			Basel III Standardized Approach(2)			Basel III Advanced Approaches(1)			Basel III Standardized Approach(2)			Basel III Advanced Approaches(1)			Basel III Standardized Approach(2)			Basel III Advanced Approaches(1)			Basel III Standardized Approach(2)			Basel III Advanced Approaches(1)			Basel III Standardized Approach(2)
RATIOS:
Common equity tier 1 capital	11.1		%	10.7		%	12.7		%	12.3		%	12.8		%	12.4		%	13.1		%	12.3		%	11.9		%	10.8		%
Tier 1 capital	13.4			12.9			15.1			14.6			15.1			14.7			15.4			14.4			13.6			12.4
Total capital	14.5			14.1			16.0			15.7			16.0			15.7			16.2			15.3			15.2			14.0
Tier 1 leverage	6.1			6.1			6.1			6.1			6.6			6.6			6.4			6.4			5.4			5.4

Supporting Calculations:
Common equity tier 1 capital	$	12,115		$	12,115		$	13,168		$	13,168		$	13,825		$	13,825		$	14,377		$	14,377		$	13,443		$	13,443
Total risk-weighted assets	109,056			112,763			103,763			106,839			108,112			111,159			109,705			117,080			113,025			124,174
Common equity tier 1 risk-based capital ratio	11.1		%	10.7		%	12.7		%	12.3		%	12.8		%	12.4		%	13.1		%	12.3		%	11.9		%	10.8		%

Tier 1 capital	$	14,586		$	14,586		$	15,639		$	15,639		$	16,296		$	16,296		$	16,848		$	16,848		$	15,419		$	15,419
Total risk-weighted assets	109,056			112,763			103,763			106,839			108,112			111,159			109,705			117,080			113,025			124,174
Tier 1 risk-based capital ratio	13.4		%	12.9		%	15.1		%	14.6		%	15.1		%	14.7		%	15.4		%	14.4		%	13.6		%	12.4		%

Total capital	$	15,771		$	15,877		$	16,650		$	16,766		$	17,290		$	17,413		$	17,810		$	17,957		$	17,220		$	17,355
Total risk-weighted assets	109,056			112,763			103,763			106,839			108,112			111,159			109,705			117,080			113,025			124,174
Total risk-based capital ratio	14.5		%	14.1		%	16.0		%	15.7		%	16.0		%	15.7		%	16.2		%	15.3		%	15.2		%	14.0		%

Tier 1 capital	$	14,586		$	14,586		$	15,639		$	15,639		$	16,296		$	16,296		$	16,848		$	16,848		$	15,419		$	15,419
Leverage exposure(3)	239,861			239,861			256,418			256,418			247,762			247,762			263,490			263,490			285,480			285,480
Tier 1 leverage ratio	6.1		%	6.1		%	6.1		%	6.1		%	6.6		%	6.6		%	6.4		%	6.4		%	5.4		%	5.4		%

(1) CET1, tier 1 capital, total capital and tier 1 leverage ratios for each period above were calculated in conformity with the advanced approaches provisions of the Basel III final rule.
(2) CET1, tier 1 capital, total capital and tier 1 leverage ratios for each period above were calculated in conformity with the standardized approach provisions of the Basel III final rule.
(3) Leverage exposure is equal to average consolidated total assets less applicable Tier 1 capital deductions.


STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF SUPPLEMENTARY LEVERAGE RATIOS

We are subject to a minimum Supplementary Leverage Ratio or SLR of 3%, and as a U.S. G-SIB, we must maintain a 2% SLR buffer in order to avoid any limitations on distributions to shareholders and discretionary bonus payments to certain executives.
The following table reconciles our estimated pro forma fully-phased in SLR ratios in conformity with the SLR final rule, as described, to our SLR ratios calculated in conformity with applicable regulatory requirements as of the dates indicated.

(Dollars in millions)		As of March 31, 2020			As of June 30, 2020			As of September 30, 2020			As of December 31, 2020			As of March 31, 2021
Tier 1 Capital	A	$	14,586		$	15,639		$	16,296		$	16,848		$	15,419
On-and off-balance sheet leverage exposure		279,537			198,266			206,985			216,900			223,451
Less: regulatory deductions		(9,275)			(9,234)			(9,261)			(9,353)			(9,586)
Total leverage exposure for SLR	B	270,262			189,032			197,724			207,547			213,865
Supplementary Leverage Ratio	A/B	5.4		%	8.3		%	8.2		%	8.1		%	7.2		%

This ‘8-K’ Filing	Date	Other Filings

Filed on / For Period end:	4/16/21
	3/31/21	10-Q, 13F-HR, 13F-HR/A
	3/15/21
	12/31/20	10-K, 11-K, 13F-HR
	9/30/20	10-Q, 13F-HR, EFFECT
	6/30/20	10-Q, 13F-HR, 3
	3/31/20	10-Q, 13F-HR, 13F-HR/A
	3/15/20
	1/1/20
	1/1/18
		List all Filings

State Street Corp. – ‘8-K’ for 4/16/21 – ‘EX-99.2’

On: Friday, 4/16/21, at 7:27am ET · For: 4/16/21 · Accession #: 93751-21-534 · File #: 1-07511

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State Street Corp. – ‘8-K’ for 4/16/21 – ‘EX-99.2’

On: Friday, 4/16/21, at 7:27am ET · For: 4/16/21 · Accession #: 93751-21-534 · File #: 1-07511

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