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State Street Corp. – ‘8-K’ for 1/19/21 – ‘EX-99.2’

On:  Tuesday, 1/19/21, at 7:27am ET   ·   For:  1/19/21   ·   Accession #:  93751-21-15   ·   File #:  1-07511

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  As Of               Filer                 Filing    For·On·As Docs:Size

 1/19/21  State Street Corp.                8-K:2,7,9   1/19/21   16:8.9M

Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                      HTML     36K 
 2: EX-99.1     Miscellaneous Exhibit                               HTML    171K 
 3: EX-99.2     Miscellaneous Exhibit                               HTML   1.06M 
 4: EX-99.3     Miscellaneous Exhibit                               HTML     72K 
11: R1          Cover page Entities                                 HTML     41K 
12: R2          Cover page Entity listing                           HTML     19K 
14: XML         IDEA XML File -- Filing Summary                      XML     15K 
10: XML         XBRL Instance -- stt-20210119_htm                    XML     31K 
13: EXCEL       IDEA Workbook of Financial Reports                  XLSX      7K 
 6: EX-101.CAL  XBRL Calculations -- stt-20210119_cal                XML     10K 
 7: EX-101.DEF  XBRL Definitions -- stt-20210119_def                 XML     25K 
 8: EX-101.LAB  XBRL Labels -- stt-20210119_lab                      XML     88K 
 9: EX-101.PRE  XBRL Presentations -- stt-20210119_pre               XML     46K 
 5: EX-101.SCH  XBRL Schema -- stt-20210119                          XSD     18K 
15: JSON        XBRL Instance as JSON Data -- MetaLinks               15±    22K 
16: ZIP         XBRL Zipped Folder -- 0000093751-21-000015-xbrl      Zip    157K

‘EX-99.2’   —   Miscellaneous Exhibit

This Exhibit is an HTML Document rendered as filed.  [ Alternative Formats ]

 <!   C:   C: 
  Document  
                                
Exhibit 99.2
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
December 31, 2020
Table of Contents
GAAP-Basis Financial Information:
5-Year Summary of Results
2
Consolidated Financial Highlights
3
Consolidated Results of Operations
4
Consolidated Statement of Condition
6
Average Statement of Condition - Rates Earned and Paid - Fully Taxable-Equivalent Basis
7
Average Statement of Condition - Rates Earned and Paid - Fully Taxable-Equivalent Basis - Year-to-Date
8
Assets Under Custody and/or Administration
9
Assets Under Management
10
Industry Flow Data by Asset Class
11
Line of Business Information12
Investment Portfolio:
Investment Portfolio Holdings by Asset Class
13
Investment Portfolio Non-U.S. Investments
14
Allowance for Credit Losses
15
Non-GAAP Financial Information:
Reconciliations of Non-GAAP Financial Information
16
Reconciliation of Pre-tax Margin Excluding Notable Items
18
Reconciliation of Notable Items
19
Reconciliations of Constant Currency FX Impacts
20
Capital:
Reconciliation of Tangible Common Equity Ratio
21
Regulatory Capital
22
Reconciliations of Supplementary Leverage Ratios
23
This financial information should be read in conjunction with State Street's news release dated January 19, 2021.

                                
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
5-YEAR SUMMARY OF RESULTS
(Dollars in millions, except per share amounts, or where otherwise noted)20162017201820192020
Year ended December 31:
Total fee revenue$8,200 $9,001 $9,454 $9,147 $9,499 
Net interest income2,084 2,304 2,671 2,566 2,200 
Other income7 (39)6 43 4 
Total revenue10,291 11,266 12,131 11,756 11,703 
Provision for credit losses10 2 15 10 88 
Total expenses8,077 8,269 9,015 9,034 8,716 
Income before income tax expense2,204 2,995 3,101 2,712 2,899 
Income tax expense67 839 508 470 479 
Net income from non-controlling interest1 — — — — 
Net income2,138 2,156 2,593 2,242 2,420 
Net income available to common shareholders$1,963 $1,972 $2,404 $2,009 $2,257 
Per common share:
Diluted earnings per common share$4.96 $5.19 $6.39 $5.38 $6.32 
Average diluted common shares outstanding (in thousands)396,090 380,213 376,476 373,666 357,106 
Cash dividends declared per common share$1.44 $1.60 $1.78 $1.98 $2.08 
Closing price per share of common stock (at year end)77.72 97.61 63.07 79.10 72.78 
Average balance sheet:
Investment securities$100,738 $95,779 $88,070 $91,768 $109,175 
Total assets229,727 219,450 223,385 223,334 269,334 
Total deposits170,485 163,808 161,408 158,262 193,225 
Ratios and other metrics:
Return on average common equity10.4 %10.5 %12.1 %9.4 %10.0 %
Pre-tax margin21.4 26.6 25.6 23.1 24.8 
Pre-tax margin, excluding notable items(1)
26.2 28.7 28.8 25.8 26.3 
Net interest margin, fully taxable-equivalent basis1.13 1.29 1.47 1.42 0.97 
Common equity tier 1 ratio(2)(3)(4)
11.6 11.9 11.7 11.7 12.3 
Tier 1 capital ratio(2)(3)(4)
14.7 15.0 15.5 14.5 14.4 
Total capital ratio(2)(3)(4)
16.0 16.0 16.3 15.6 15.3 
Tier 1 leverage ratio(2)(3)
6.5 7.3 7.2 6.9 6.4 
Supplementary leverage ratio(2)(3)
5.9 6.5 6.3 6.1 8.1 
Assets under custody and/or administration (in trillions)$28.77 $33.12 $31.62 $34.36 $38.79 
Assets under management (in trillions)2.47 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.
2    
                                
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED FINANCIAL HIGHLIGHTS
Quarters% Change
(Dollars in millions, except per share amounts, or where otherwise noted)1Q192Q193Q194Q191Q202Q203Q204Q204Q20
vs.
4Q19		4Q20
vs.
3Q20
Income statement
Fee revenue$2,260 $2,260 $2,259 $2,368 $2,399 $2,378 $2,306 $2,416 2.0 %4.8 %
Net interest income673 613 644 636 664 559 478 499 (21.5)4.4 
Other income(1)— — 44 2 — — 2 nmnm
Total revenue2,932 2,873 2,903 3,048 3,065 2,937 2,784 2,917 (4.3)4.8 
Provision for credit losses(1)
4 1 2 3 36 52 — — nm—
Total expenses2,293 2,154 2,180 2,407 2,255 2,082 2,103 2,276 (5.4)8.2 
Income before income tax expense635 718 721 638 774 803 681 641 0.5 (5.9)
Income tax expense127 131 138 74 140 109 126 104 40.5 (17.5)
Net income508 587 583 564 634 694 555 537 (4.8)(3.2)
Net income available to common shareholders$452 $537 $528 $492 $580 $662 $517 $498 1.2 (3.7)
Per common share:
Diluted earnings per common share$1.18 $1.42 $1.42 $1.35 $1.62 $1.86 $1.45 $1.39 3.0 (4.1)
Average diluted common shares outstanding (in thousands)381,703 377,577 370,595 365,851 357,993 356,413 357,168 357,719 (2.2)0.2 
Cash dividends declared per common share$.47 $.47 $.52 $.52 $.52 $.52 $.52 $.52 — — 
Closing price per share of common stock (as of quarter end)65.81 56.06 59.19 79.10 53.27 63.55 59.33 72.78 (8.0)22.7 
Average for the quarter:
Investment securities$88,273 $89,930 $93,588 $95,186 $97,560 $116,626 $110,448 $112,018 17.7 1.4 
Total assets219,560 221,514 223,273 228,886 251,181 284,688 264,384 277,055 21.0 4.8 
Total deposits155,343 156,570 157,226 163,829 180,160 197,069 189,226 206,343 26.0 9.0 
Securities on loan:
Average securities on loan$368,321 $389,367 $387,964 $375,763 $378,200 $377,344 $375,296 $404,022 7.5 7.7 
End-of-period securities on loan 397,773 395,802 397,091 379,631 387,580 381,232 395,075 457,985 20.6 15.9 
Ratios and other metrics:
Return on average common equity8.7 %10.1 %9.7 %9.0 %10.9 %12.1 %8.9 %8.4 %(60)bps(50)bps
Pre-tax margin21.7 25.0 24.8 20.9 25.3 27.3 24.5 22.0 110 (250)
Pre-tax margin, excluding notable items(2)
22.5 25.4 26.4 29.1 25.6 27.7 24.7 26.9 (220)220 
Net interest margin, fully taxable-equivalent basis1.54 1.38 1.42 1.36 1.30 0.93 0.85 0.84 (52)(1)
Common equity tier 1 ratio(3)(4)
11.5 11.5 11.3 11.7 10.7 12.3 12.4 12.3 60 (10)
Tier 1 capital ratio(3)(4)
15.0 14.9 14.6 14.5 12.9 14.6 14.7 14.4 (10)(30)
Total capital ratio(3)(4)
15.9 15.5 15.3 15.6 14.1 15.7 15.7 15.3 (30)(40)
Tier 1 leverage ratio(3
7.4 7.6 7.4 6.9 6.1 6.1 6.6 6.4 (50)(20)
Supplementary leverage ratio(3)
6.6 6.7 6.6 6.1 5.4 8.3 8.2 8.1 200 (10)
Assets under custody and/or administration (in billions)$32,643 $32,754 $32,899 $34,358 $31,864 $33,515 $36,643 $38,791 12.9 %5.9 %
Assets under management (in billions)2,805 2,918 2,953 3,116 2,689 3,054 3,148 3,467 11.3 10.1 
(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. The provision for credit losses on unfunded commitments of ($4 million), $4 million, zero and $3 million for 1Q19, 2Q19, 3Q19 and 4Q19, respectively, is included within other expenses.
(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
3    
                                
    
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED RESULTS OF OPERATIONS
Quarters% ChangeYear-to-Date% Change
(Dollars in millions, except per share amounts, or where otherwise noted)1Q192Q193Q194Q191Q202Q203Q204Q204Q20
vs.
4Q19		4Q20
vs.
3Q20		20192020YTD2020
vs.
YTD2019
Fee revenue:
Servicing fees$1,251 $1,252 $1,272 $1,299 $1,287 $1,272 $1,301 $1,307 0.6 %0.5 %$5,074 $5,167 1.8 %
Management fees(1)
432 453 459 480 464 444 479 493 2.7 2.9 1,824 1,880 3.1 
Foreign exchange trading services(1)
268 261 270 259 444 325 270 324 25.1 20.0 1,058 1,363 28.8 
Securities finance118 126 116 111 92 92 84 88 (20.7)4.8 471 356 (24.4)
Software and processing fees191 168 142 219 112 245 172 204 (6.8)18.6 720 733 1.8 
Total fee revenue2,260 2,260 2,259 2,368 2,399 2,378 2,306 2,416 2.0 4.8 9,147 9,499 3.8 
Net interest income:
Interest income1,027 1,007 1,001 906 868 674 — 520 513 (43.4)(1.3)3,941 2,575 (34.7)
Interest expense354 394 357 270 204 115 42 14 (94.8)(66.7)1,375 375 (72.7)
Net interest income673 613 644 636 664 559 478 499 (21.5)4.4 2,566 2,200 (14.3)
Other income:
Gains (losses) related to investment securities, net(1)— — — 2 — — 2 nmnm(1)4 nm
Other income— — — 44 — — — — nm— 44 — nm
Total other income(1)— — 44 2 — — 2 nmnm43 4 nm
Total revenue2,932 2,873 2,903 3,048 3,065 2,937 2,784 2,917 (4.3)4.8 11,756 11,703 (0.5)
Provision for credit losses(2)
4 1 2 3 36 52 — — nm—10 88 nm
Expenses:
Compensation and employee benefits1,229 1,084 1,083 1,145 1,208 1,051 1,062 1,129 (1.4)6.3 4,541 4,450 (2.0)
Information systems and communications362 365 376 362 385 376 395 394 8.8 (0.3)1,465 1,550 5.8 
Transaction processing services242 245 254 242 254 233 234 257 6.2 9.8 983 978 (0.5)
Occupancy116 115 113 126 109 109 109 162 28.6 48.6 470 489 4.0 
Acquisition and restructuring costs9 12 27 29 11 12 15 12 (58.6)(20.0)77 50 (35.1)
Amortization of other intangible assets60 59 59 58 58 58 59 59 1.7 — 236 234 (0.8)
Other275 274 268 445 230 243 229 263 (40.9)14.8 1,262 965 (23.5)
Total expenses2,293 2,154 2,180 2,407 2,255 2,082 2,103 2,276 (5.4)8.2 9,034 8,716 (3.5)
Income before income tax expense635 718 721 638 774 803 681 641 0.5 (5.9)2,712 2,899 6.9 
Income tax expense127 131 138 74 140 109 126 104 40.5 (17.5)470 479 1.9 
Net income$508 $587 $583 $564 $634 $694 $555 $537 (4.8)(3.2)$2,242 $2,420 7.9 







4    
                                
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED RESULTS OF OPERATIONS (Continued)
Quarters% ChangeYear-to-Date% Change
(Dollars in millions, except per share amounts, or where otherwise noted)1Q192Q193Q194Q191Q202Q203Q204Q204Q20
vs.
4Q19		4Q20
vs.
3Q20		20192020YTD2020
vs.
YTD2019
Adjustments to net income:
Dividends on preferred stock(3)(4)
$(55)$(50)$(55)$(72)$(53)$(32)$(38)$(39)(45.8)%2.6 %$(232)$(162)(30.2)%
Earnings allocated to participating securities(1)— — — (1)— — — ——(1)(1)—
Net income available to common shareholders$452 $537 $528 $492 $580 $662 $517 $498 1.2 (3.7)$2,009 $2,257 12.3 
Per common share:
Basic earnings$1.20 $1.44 $1.44 $1.36 $1.64 $1.88 $1.47 $1.41 3.7 (4.1)$5.43 $6.40 17.9 
Diluted earnings1.18 1.42 1.42 1.35 1.62 1.86 1.45 1.39 3.0 (4.1)5.38 6.32 17.5 
Average common shares outstanding (in thousands):
Basic377,915 373,773 366,732 361,439 353,746 352,157 352,586 352,974 (2.3)0.1 369,911 352,865 (4.6)
Diluted381,703 377,577 370,595 365,851 357,993 356,413 357,168 357,719 (2.2)0.2 373,666 357,106 (4.4)
Cash dividends declared per common share $.47 $.47 $.52 $.52 $.52 $.52 $.52 $.52 — — $1.98 $2.08 5.1 
Closing price per share of common stock (as of quarter end) 65.81 56.06 59.19 79.10 53.27 63.55 59.33 72.78 (8.0)22.7 79.10 72.78 (8.0)
Financial ratios:
Effective tax rate20.1 %18.1 %19.2 %11.6 %18.1 %13.6 %18.5 %16.1 %450 bps(240)bps17.3 %16.5 %(80)bps
Return on average common equity8.7 10.1 9.7 9.0 10.9 12.1 8.9 8.4 (60)(50)9.4 10.0 60 
Return on tangible common equity(5)
15.0

15.8

16.3

16.318.718.516.6 15.3 (100)(130)

16.315.3(100)
Pre-tax margin21.7 25.0 24.8 20.9 25.3 27.3 24.5 22.0 110 (250)23.1 24.8 170 
Pre-tax margin, excluding notable items(6)

22.5

25.4

26.4

29.125.6 27.7 24.7 26.9 (220)220 

25.826.350 
(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 $12 million, $12 million, $14 million and $15 million in the first, second, third and fourth quarters of 2019, respectively, and approximately $15 million, $19 million, $24 million and $23 million in the first, second, third and fourth quarters of 2020.
(2) 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. The provision for credit losses on unfunded commitments of ($4 million), $4 million, zero and $3 million for 1Q19, 2Q19, 3Q19 and 4Q19, respectively, is included within other expenses.
(3) 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.
(4) We redeemed all outstanding Series E noncumulative perpetual preferred stock on December 15, 2019 at a redemption price of $750 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 $22 million resulted in an EPS impact of approximately ($.06) per share in 2019.
(5) Return on tangible common equity is calculated by dividing year-to-date annualized net income available to common shareholders (GAAP-basis) by tangible common equity.
(6) 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

5    
                                
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED STATEMENT OF CONDITION
As of% Change
(Dollars in millions, except per share amounts)
March 31, 2019(1)
June 30, 2019(1)
September 30, 2019December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 20204Q20
vs.
4Q19		4Q20
vs.
3Q20
Assets:
Cash and due from banks$4,000 $3,110 $3,598 $3,302 $4,932 $3,685 $4,848 $3,467 5.0 %(28.5)%
Interest-bearing deposits with banks53,864 62,534 62,324 68,965 147,735 90,199 75,967 116,960 69.6 54.0 
Securities purchased under resale agreements1,522 1,732 3,041 1,487 1,037 4,026 4,499 3,106 108.9 (31.0)
Trading account assets856 894 839 914 872 883 840 815 (10.8)(3.0)
Investment securities:
Investment securities available-for-sale49,002 53,242 54,757 53,815 55,843 56,231 61,780 59,048 9.7 (4.4)
Investment securities held-to-maturity purchased under money market liquidity facility(2)
— — — — 26,808 11,257 4,824 3,299 100.0 (31.6)
Investment securities held-to-maturity(3)
41,145 39,236 39,119 41,782 41,150 41,848 45,394 48,929 17.1 7.8 
Total investment securities90,147 92,478 93,876 95,597 123,801 109,336 111,998 111,276 16.4 (0.6)
Loans23,381 25,421 27,009 26,309 32,379 26,860 27,035 27,925 6.1 3.3 
Allowance for loan losses(4)
70 72 71 74 97 141 134 122 64.9 (9.0)
Loans, net23,311 25,349 26,938 26,235 32,282 26,719 26,901 27,803 6.0 3.4 
Premises and equipment, net(5)
2,230 2,244 2,306 2,282 2,225 2,212 2,193 2,154 (5.6)(1.8)
Accrued interest and fees receivable3,277 3,202 3,258 3,231 3,274 3,235 3,291 3,105 (3.9)(5.7)
Goodwill7,549 7,565 7,500 7,556 7,506 7,538 7,607 7,683 1.7 1.0 
Other intangible assets2,208 2,155 2,077 2,030 1,963 1,914 1,870 1,827 (10.0)(2.3)
Other assets39,368 40,277 38,849 34,011 36,900 30,495 32,061 36,510 7.3 13.9 
Total assets$228,332 $241,540 $244,606 $245,610 $362,527 $280,242 $272,075 $314,706 28.1 15.7 
Liabilities:
Deposits:
   Non-interest-bearing$35,295 $34,278 $33,719 $34,031 $69,404 $42,132 $41,183 $49,439 45.3 20.0 
   Interest-bearing -- U.S.62,988 68,964 72,260 77,504 110,106 87,197 85,434 102,331 32.0 19.8 
   Interest-bearing -- Non-U.S.64,188 67,352 64,907 70,337 77,594 71,133 70,896 88,028 25.2 24.2 
Total deposits(6)
162,471 170,594 170,886 181,872 257,104 200,462 197,513 239,798 31.8 21.4 
Securities sold under repurchase agreements1,420 1,829 1,330 1,102 5,373 3,513 2,430 3,413 209.7 40.5 
Short-term borrowings under money market liquidity facility— — — — 25,665 11,261 4,819 3,302 100.0 (31.5)
Other short-term borrowings947 4,939 7,073 839 4,835 912 5,838 685 (18.4)(88.3)
Accrued expenses and other liabilities27,274 27,350 28,653 24,857 30,151 23,634 22,064 27,503 10.6 24.7 
Long-term debt11,182 11,374 11,455 12,509 15,538 15,587 13,853 13,805 10.4 (0.3)
Total liabilities203,294 216,086 219,397 221,179 338,666 255,369 246,517 288,506 30.4 17.0 
Shareholders' equity:
Preferred stock, no par, 3,500,000 shares authorized:
Series C, 5,000 shares issued and outstanding491 491 491 491 — — — — (100.0)— 
Series D, 7,500 shares issued and outstanding742 742 742 742 742 742 742 742 — — 
Series E, 7,500 shares issued and outstanding728 728 728 — — — — — — — 
Series F, 7,500 shares issued and outstanding742 742 742 742 742 742 742 742 — — 
Series G, 5,000 shares issued and outstanding493 493 493 493 493 493 493 493 — — 
Series H, 5,000 shares issued and outstanding494 494 494 494 494 494 494 494 — — 
Common stock, $1 par, 750,000,000 shares authorized(7)(8)
504 504 504 504 504 504 504 504 — — 
Surplus10,082 10,109 10,117 10,132 10,155 10,179 10,192 10,205 0.7 0.1 
Retained earnings20,911 21,274 21,612 21,918 22,315 22,794 23,128 23,442 7.0 1.4 
Accumulated other comprehensive income (loss)(1,180)(874)(985)(876)(920)(430)(111)187 nmnm
Treasury stock, at cost(9)
(8,969)(9,249)(9,729)(10,209)(10,664)(10,645)(10,626)(10,609)3.9 (0.2)
Total shareholders' equity25,038 25,454 25,209 24,431 23,861 24,873 25,558 26,200 7.2 2.5 
Total liabilities and equity$228,332 $241,540 $244,606 $245,610 $362,527 $280,242 $272,075 $314,706 28.1 15.7 
(1) Certain previously reported amounts presented in this earnings release addendum have been reclassified to conform to current-period presentation.
(2)Fair value of Investment securities held-to-maturity purchased under money market liquidity facility
$— $— $— $— $26,808 $11,294 $4,841 $3,304 
(3) Fair value of investment securities held-to-maturity
40,971 39,473 39,535 42,157 42,201 43,037 46,510 50,003 
(4) Total allowance for credit losses including off-balance sheet commitments
83 88 86 91 124 163 153 148 
(5) Accumulated depreciation for premises and equipment
3,937 4,091 4,235 4,367 4,459 4,591 4,744 4,825 
(6) Average total deposits
155,343 156,570 157,226 163,829 180,160 197,069 189,226 206,343 
(7) Common stock shares issued
503,879,642 503,879,642 503,879,642 503,879,642 503,879,642 503,879,642 503,879,642 503,879,642 
(8) Total common shares outstanding
376,720,715 372,572,622 363,623,285 357,389,416 351,943,858 352,383,250 352,797,695 353,156,279 
(9) Treasury stock shares
127,158,927 131,307,020 140,256,357 146,490,226 151,935,784 151,496,392 151,081,947 150,723,363 
6    

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
1Q192Q193Q194Q191Q202Q203Q204Q204Q20
vs.
4Q19		4Q20
vs.
3Q20
(Dollars in millions; fully-taxable equivalent basis)Average balanceAverage ratesAverage balanceAverage ratesAverage balanceAverage ratesAverage balanceAverage ratesAverage balanceAverage ratesAverage balanceAverage ratesAverage balanceAverage ratesAverage balanceAverage ratesAverage balanceAverage balance
Assets:
Interest-bearing deposits with banks$48,856 0.99 %$48,074 0.91 %$45,791 0.85 %$51,284 0.69 %$67,120 0.49 %$86,744 0.01 %$72,717 (0.03)%$79,779 (0.02)%55.6 %9.7 %
Securities purchased under resale agreements(2)
2,775 14.33 1,975 18.30 3,149 12.75 2,124 14.00 1,805 14.38 3,342 2.95 4,181 1.91 4,459 1.47 109.9 6.6 
Trading account assets866 — 892 — 880 — 897 — 915 — 877 — 900 — 820 — (8.6)(8.9)
Investment securities:
U.S. Treasury and federal agencies:
Direct obligations15,427 1.79 13,960 1.83 13,614 1.83 14,017 1.83 14,102 1.79 14,182 1.65 14,160 1.54 13,626 1.41 (2.8)(3.8)
Mortgage- and asset-backed securities39,216 3.06 41,905 2.83 44,357 2.71 44,009 2.60 43,947 2.66 44,801 2.27 47,369 1.68 51,027 1.60 15.9 7.7 
State and political subdivisions(3)
1,914 3.43 1,909 3.34 1,839 3.27 1,815 3.20 1,782 3.05 1,728 3.11 1,705 2.79 1,652 2.85 (9.0)(3.1)
Other investments:
Asset-backed securities9,078 2.47 9,335 2.54 9,913 2.39 10,593 2.28 10,645 1.94 10,353 1.50 11,004 1.03 12,370 1.05 16.8 12.4 
Collateralized mortgage-backed securities and obligations980 3.78 918 3.69 871 3.31 818 2.95 741 2.69 683 1.83 662 1.89 644 1.75 (21.3)(2.7)
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 — (43.8)
Other debt investments and equity securities(3)
21,658 1.04 21,903 1.05 22,994 1.04 23,934 1.07 24,298 1.00 25,842 0.82 28,060 0.67 28,487 0.58 19.0 1.5 
Total investment securities
88,273 2.30 89,930 2.23 93,588 2.16 95,186 2.08 97,560 2.03 116,626 1.69 110,448 1.33 112,018 1.27 17.7 1.4 
Loans (4)
23,056 3.49 23,824 3.33 23,926 3.24 25,461 2.86 28,468 2.62 27,369 2.30 25,974 2.13 28,298 2.05 11.1 8.9 
Other interest-earning assets15,286 2.89 15,104 3.02 13,990 3.02 12,295 2.13 10,764 1.70 9,831 0.13 11,586 0.10 12,824 0.10 4.3 10.7 
Total interest-earning assets179,112 2.34 179,799 2.26 181,324 2.20 187,247 1.93 206,632 1.70 244,789 1.12 225,806 0.92 238,198 0.86 27.2 5.5 
Cash and due from banks3,078 4,011 3,114 3,358 3,856 3,480 3,652 4,403 31.1 20.6 
Other assets37,370 37,704 38,835 38,281 40,693 36,419 34,926 34,454 (10.0)(1.4)
Total assets$219,560 $221,514 $223,273 $228,886 $251,181 $284,688 $264,384 $277,055 21.0 4.8 
Liabilities:
Interest-bearing deposits:
U.S.$64,531 0.83 %$66,502 0.91 %$67,170 0.83 %$71,910 0.64 %$80,247 0.50 %$91,097 0.03 %$85,432 0.02 %$92,962 0.01 %29.3 8.8 
Non-U.S.(5)
59,775 0.26 61,303 0.39 61,355 0.21 62,737 (0.04)64,340 (0.20)66,977 (0.36)69,514 (0.37)74,324 (0.40)18.5 6.9 
Total interest-bearing deposits(5)
124,306 0.56 127,805 0.66 128,525 0.53 134,647 0.32 144,587 0.19 158,074 (0.13)154,946 (0.16)167,286 (0.17)24.2 8.0 
Securities sold under repurchase agreements1,773 2.66 1,488 2.19 1,998 1.45 1,208 1.18 1,773 0.55 3,394 0.03 2,891 0.08 2,402 0.07 98.8 (16.9)
Short-term borrowings under money market liquidity facility— — — — — — — — 2,187 1.11 19,036 1.23 7,449 1.24 4,209 1.23 —(43.5)
Other short-term borrowings1,157 1.34 2,041 1.22 1,788 1.68 1,110 1.17 2,960 1.32 3,073 0.66 1,724 0.44 1,164 0.25 4.9 (32.5)
Long-term debt10,955 3.89 11,228 3.78 11,415 3.48 12,286 3.34 13,288 2.64 15,574 2.45 14,794 1.86 13,830 1.75 12.6 (6.5)
Other interest-bearing liabilities4,642 5.31 3,979 6.47 3,691 7.62 4,106 4.85 3,434 3.55 3,461 1.07 2,764 1.28 3,050 1.20 (25.7)10.3 
Total interest-bearing liabilities142,833 1.00 146,541 1.08 147,417 0.96 153,357 0.70 168,229 0.49 202,612 0.23 184,568 0.09 191,941 0.03 25.2 4.0 
Non-interest bearing deposits31,037 28,765 28,701 29,182 35,573 38,995 34,280 39,057 33.8 13.9 
Other liabilities20,921 21,188 21,935 21,140 23,052 18,678 20,050 20,087 (5.0)0.2 
Preferred shareholders' equity3,690 3,690 3,690 3,541 2,861 2,472 2,472 2,472 (30.2)— 
Common shareholders' equity21,079 21,330 21,530 21,666 21,466 21,931 23,014 23,498 8.5 2.1 
Total liabilities and shareholders' equity$219,560 $221,514 $223,273 $228,886 $251,181 $284,688 $264,384 $277,055 21.0 4.8 
Excess of rate earned over rate paid1.34 %1.18 %1.24 %1.23 %1.21 %0.89 %0.83 %0.84 %
Net interest margin1.54 %1.38 %1.42 %1.36 %1.30 %0.93 %0.85 %0.84 %
Net interest income, fully taxable-equivalent basis$678 $618 $648 $640 $668 $564 $482 $503 
Tax-equivalent adjustment(5)(5)(4)(4)(4)(5)(4)(4)
Net interest income, GAAP-basis(5)
$673 $613 $644 $636 $664 $559 $478 $499 
— 
(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 $59 billion, $75 billion, $118 billion and $94 billion in the first, second, third and fourth quarters of 2019, respectively, and approximately $124 billion, $103 billion, $83 billion and $91 billion in the first, second, third and fourth quarters of 2020. Excluding the impact of netting, the average interest rates would be approximately 0.64%, 0.47%, 0.33% and 0.31% in the first, second, third and fourth quarters of 2019, respectively, and approximately 0.21%, 0.09%, 0.09% and 0.07% in the first, second, third and fourth quarters of 2020.
(3)State and political subdivisions consists of municipal bonds and clipper tax exempt bonds.Other debt investments and equity securities consists of non-U.S. government and agency securities, corporate bonds, covered bonds and other.
(4) Average loans are presented on a gross basis. We adopted ASU 2016-13 on January 1, 2020, Allowance for Credit Losses. Prior to 2020, we recognized Allowance for loan losses. Average loans net of allowance for loan losses amount to approximately $22,989 million, $23,754 million, $23,855 million and $25,390 million in the first, second, third and fourth quarters of 2019, respectively, and 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.
(5) Average rates includes the impact of FX swap expense of approximately $39 million, $59 million, $37 million and $18 million in the first, second, third and fourth quarters of 2019, respectively, and approximately ($2) million, ($17) million, ($19) million and ($25) million in the first,second third and fourth quarters of 2020. Average rates for total interest-bearing deposits excluding the impact of FX swap expense were approximately 0.43%, 0.47%, 0.42% and 0.27% for the first, second, third and fourth quarters of 2019, respectively, and approximately 0.19%, (0.09)%, (0.11)% and (0.11)% for the first, second, third and fourth quarters of 2020.
7    

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
AVERAGE STATEMENT OF CONDITION - RATES EARNED AND PAID - FULLY TAXABLE-EQUIVALENT BASIS - YEAR TO DATE(1)
The following table presents consolidated average interest-earning assets, average interest-bearing liabilities and related average rates earned and paid, respectively, for the years indicated, on a fully taxable-equivalent basis, which is a non-GAAP measure. Tax-equivalent adjustments were calculated using a federal income tax rate of 21% for periods ending in 2019 and 2020, adjusted for applicable state income taxes, net of related federal benefit.
Year-to-Date% Change
201920202020 vs 2019
(Dollars in millions; fully-taxable equivalent basis)Average balanceAverage ratesAverage balanceAverage ratesAverage balance
Assets:
Interest-bearing deposits with banks$48,500 0.86 %$76,588 0.10 %57.9 %
Securities purchased under resale agreements (2)
2,506 14.54 3,452 3.64 37.7 
Trading account assets884 0.11 878 — (0.7)
Investment securities:
U.S. Treasury and federal agencies:
Direct obligations14,249 1.82 14,017 1.60 (1.6)
Mortgage- and asset-backed securities42,390 2.79 46,799 2.03 10.4 
State and political subdivisions(3)
1,869 3.31 1,717 2.95 (8.1)
Other investments:
Asset-backed securities9,734 2.41 11,096 1.36 14.0 
Collateralized mortgage-backed securities and obligations896 3.46 682 2.06 (23.9)
Investment securities held-to-maturity purchased under money market liquidity facility— — 8,183 1.43 nm
Other debt investments and equity securities(3)
22,630 1.05 26,681 0.75 17.9 
Total investment securities
91,768 2.19 109,175 1.56 19.0 
Loans (4)
24,073 3.22 27,525 2.28 14.3 
Other interest-earning assets14,160 2.79 11,256 0.49 (20.5)
Total interest-earning assets181,891 2.18 228,874 1.13 25.8 
Cash and due from banks3,390 3,849 13.5 
Other assets38,053 36,611 (3.8)
Total assets$223,334 $269,334 20.6 
Liabilities:
Interest-bearing deposits:
U.S.$67,547 0.80 $87,444 0.13 29.5 
Non-U.S.(5)
61,301 0.20 68,806 (0.34)12.2 
Total interest-bearing deposits(5)
128,848 0.51 156,250 (0.07)21.3 
Securities sold under repurchase agreements1,616 1.90 2,615 0.14 61.8 
Short-term borrowings under money market liquidity facility— — 8,207 1.22 nm
Other short-term borrowings1,524 1.37 2,226 0.78 46.1 
Long-term debt11,474 3.61 14,371 2.17 25.2 
Other interest-bearing liabilities4,103 6.00 3,176 1.82 (22.6)
Total interest-bearing liabilities147,565 0.93 186,845 0.20 26.6 
Non-interest bearing deposits29,414 36,975 25.7 
Other liabilities21,299 20,464 (3.9)
Preferred shareholders' equity3,653 2,569 (29.7)
Common shareholders' equity21,403 22,481 5.0 
Total liabilities and shareholders' equity$223,334 $269,334 20.6 
Excess of rate earned over rate paid1.25 %0.93 %
Net interest margin1.42 %0.97 %
Net interest income, fully taxable-equivalent basis$2,585 $2,217 
Tax-equivalent adjustment(19)(17)
Net interest income, GAAP-basis (5)
$2,566 $2,200 
(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 $87 billion and $100 billion as of December 31, 2019 and 2020, respectively. Excluding the impact of netting, the average interest rates would be approximately 0.41% and 0.12% for the year ended December 31, 2019 and 2020, respectively.
(3)State and political subdivisions consists of municipal bonds and clipper tax exempt bonds.Other debt investments and equity securities consists of non-U.S. government and agency securities, corporate bonds, covered bonds and other.
(4) Average loans are presented on a gross basis. We adopted ASU 2016-13 on January 1, 2020, Allowance for Credit Losses. Prior to 2020, we recognized Allowance for loan losses. Average loans net of allowance for loan losses amount to approximately $24,003 million as of December 31,2019 and net of expected credit losses of approximately $27,418 million as of December 31,2020.
(5) Average rates include the impact of FX swap expense of approximately $153 million and ($63) million for the year ended December 31, 2019 and 2020, respectively. Average rates for total interest-bearing deposits excluding the impact of FX swap expense were 0.40% and (0.03)% for the year ended December 31, 2019 and 2020, respectively.
8    

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ASSETS UNDER CUSTODY AND/OR ADMINISTRATION
Quarters% Change
(Dollars in billions)1Q192Q193Q194Q191Q202Q203Q204Q204Q20
vs.
4Q19		4Q20
vs.
3Q20
Assets Under Custody and/or Administration
By Product Classification:
Mutual funds$8,586 $8,645 $8,687 $9,221 $8,056 $9,155 $10,143 $10,882 18.0 %7.3 %
Collective funds, including ETFs9,436 9,272 9,224 9,796 8,662 9,111 9,960 10,878 11.0 9.2 
Pension products6,513 6,542 6,817 6,924 6,730 6,694 7,322 7,599 9.7 3.8 
Insurance and other products8,108 8,295 8,171 8,417 8,416 8,555 9,218 9,432 12.1 2.3 
Total Assets Under Custody and/or Administration$32,643 $32,754 $32,899 $34,358 $31,864 $33,515 $36,643 $38,791 12.9 5.9 
By Financial Instrument:
Equities
$18,924 $18,504 $18,243 $19,301 $16,267 $18,190 $20,094 $21,626 12.0 7.6 
Fixed-income
9,831 10,089 10,413 10,766 11,096 11,342 12,403 12,834 19.2 3.5 
Short-term and other investments
3,888 4,161 4,243 4,291 4,501 3,983 4,146 4,331 0.9 4.5 
Total Assets Under Custody and/or Administration$32,643 $32,754 $32,899 $34,358 $31,864 $33,515 $36,643 $38,791 12.9 5.9 
By Geographic Location(1):
Americas$23,979 $23,989 $23,888 $25,018 $22,787 $24,375 $26,666 $28,245 12.9 5.9 
Europe/Middle East/Africa6,875 6,937 7,091 7,325 7,112 7,155 7,675 8,101 10.6 5.6 
Asia/Pacific1,789 1,828 1,920 2,015 1,965 1,985 2,302 2,445 21.3 6.2 
Total Assets Under Custody and/or Administration$32,643 $32,754 $32,899 $34,358 $31,864 $33,515 $36,643 $38,791 12.9 5.9 
Assets Under Custody(2)
By Product Classification:
Mutual funds$7,966 $8,012 $8,060 $8,447 $7,416 $8,421 $8,798 $9,483 12.3 7.8 
Collective funds, including ETFs7,445 7,614 7,668 8,216 7,191 7,639 8,283 9,077 10.5 9.6 
Pension products5,307 5,236 5,457 5,554 5,395 5,363 5,860 6,093 9.7 4.0 
Insurance and other products3,851 3,909 3,893 3,978 3,810 3,976 4,392 4,399 10.6 0.2 
Total Assets Under Custody$24,569 $24,771 $25,078 $26,195 $23,812 $25,399 $27,333 $29,052 10.9 6.3 
By Geographic Location(1):
Americas$18,784 $18,911 $19,048 $19,838 $17,701 $19,226 $20,450 $21,822 10.0 6.7 
Europe/Middle East/Africa4,462 4,515 4,615 4,858 4,666 4,714 5,212 5,465 12.5 4.9 
Asia/Pacific1,323 1,345 1,415 1,499 1,445 1,459 1,671 1,765 17.7 5.6 
Total Assets Under Custody$24,569 $24,771 $25,078 $26,195 $23,812 $25,399 $27,333 $29,052 10.9 6.3 
(1) Geographic mix is generally based on the domicile of the entity servicing the funds and is not necessarily representative of the underlying asset mix.
(2) Assets under custody are a component of assets under custody and/or administration presented above.
9    

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ASSETS UNDER MANAGEMENT
Quarters% Change
(Dollars in billions)1Q192Q193Q194Q191Q202Q203Q204Q204Q20
vs.
4Q19		4Q20
vs.
3Q20
Assets Under Management
By Asset Class and Investment Approach:
Equity:
   Active$85 $86 $84 $88 $68 $75 $81 $83 (5.7)%2.5 %
Passive(1)
1,694 1,757 1,747 1,903 1,493 1,770 1,879 2,089 9.8 11.2 
Total Equity1,779 1,843 1,831 1,991 1,561 1,845 1,960 2,172 9.1 10.8 
Fixed-Income:
   Active88 93 92 89 89 91 87 92 3.4 5.7 
Passive341 357 367 379 369 385 405 441 16.4 8.9 
Total Fixed-Income429 450 459 468 458 476 492 533 13.9 8.3 
Cash(2)
314 319 336 324 364 390 333 359 10.8 7.8 
Multi-Asset-Class Solutions:
   Active22 23 23 24 21 23 24 26 8.3 8.3 
Passive125 132 134 133 120 135 142 164 23.3 15.5 
Total Multi-Asset-Class Solutions147 155 157 157 141 158 166 190 21.0 14.5 
Alternative Investments(3):
   Active21 21 22 21 20 19 20 23 9.5 15.0 
Passive(1)
115 130 148 155 145 166 177 190 22.6 7.3 
Total Alternative Investments136 151 170 176 165 185 197 213 21.0 8.1 
Total Assets Under Management$2,805 $2,918 $2,953 $3,116 $2,689 $3,054 $3,148 $3,467 11.3 10.1 
By Geographic Location:
North America$1,899 $1,965 $1,999 $2,115 $1,847 $2,104 $2,169 $2,414 14.1 11.3 
Europe/Middle East/Africa447 471 476 493 416 462 478 509 3.2 6.5 
Asia/Pacific459 482 478 508 426 488 501 544 7.1 8.6 
Total Assets Under Management$2,805 $2,918 $2,953 $3,116 $2,689 $3,054 $3,148 $3,467 11.3 10.1 
(1) 1Q19 and 2Q19 have been revised to reflect a reclassification of $14 billion in assets from Passive Equity to Passive Alternative Assets.
(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, for which we are not the investment manager but act as the marketing agent.
Exchange-Traded Funds(1)
By Asset Class:
Alternative Investments$45 $48 $56 $56 $59 $77 $88 $83 48.2 %(5.7)%
Cash8 9 9 9 18 16 14 14 55.6 — 
Equity535 548 553 618 474 571 605 706 14.2 16.7 
Fixed-Income73 77 80 85 78 90 94 102 20.0 8.5 
Multi-Asset— — — — — — — 1 nmnm
Total Exchange-Traded Funds$661 $682 $698 $768 $629 $754 $801 $906 18.0 13.1 
(1) Exchange-traded funds are a component of assets under management presented above.
10    

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INDUSTRY FLOW DATA BY ASSET CLASS
(Dollars in billions)Quarters
1Q192Q193Q194Q191Q202Q203Q204Q20
North America - (US Domiciled) Morningstar Direct Market Data(1)(2)(3)
Long Term Funds(4)
$109.0 $62.4 $34.9 $50.2 $(240.1)$56.3 $21.4 $58.7 
Money Market34.1 101.7 198.9 181.5 664.8 259.4 (165.8)(80.8)
ETF34.3 53.0 28.5 88.4 22.1 69.6 60.1 128.4 
Total Flows$177.4 $217.1 $262.3 $320.1 $446.8 $385.3 $(84.3)$106.3 
EMEA-Morningstar Direct Market Data(1)(2)(5)
Long Term Funds(4)
$25.8 $89.8 $97.6 $160.0 $(137.6)$167.6 $134.4 $170.1 
Money Market16.0 16.0 83.2 (9.4)11.6 152.8 60.0 13.9 
ETF30.4 10.2 30.1 48.1 (2.9)36.2 32.4 29.8 
Total Flows$72.2 $116.0 $210.9 $198.7 $(128.9)$356.6 $226.8 $213.8 
(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 fourth quarter of 2020 data for North America (US domiciled) includes Morningstar actuals October and November and Morningstar estimates for December 2020.
(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 fourth quarter of 2020 data for Europe is on a rolling three month basis for September 2020 through November 2020, sourced by Morningstar.
11    

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
LINE OF BUSINESS INFORMATION
Three Months Ended
Investment Servicing% ChangeInvestment Management% Change
Other(1)
% ChangeTotal% Change
(Dollars in millions)4Q203Q204Q194Q20
vs.
3Q20		4Q20
vs.
4Q19		4Q203Q204Q194Q20
vs.
3Q20		4Q20
vs.
4Q19		4Q203Q204Q194Q20
vs.
3Q20		4Q20
vs.
4Q19		4Q203Q204Q194Q20
vs.
3Q20		4Q20
vs.
4Q19
Servicing fees$1,307 $1,301 $1,299 0.5 %0.6 %$— $— $— — %— %$— $— $— — %— %$1,307 $1,301 $1,299 0.5 %0.6 %
Management fees— — — — — 493 479 480 2.9 2.7 — — — — — 493 479 480 2.9 2.7 
Foreign exchange trading services301 252 239 19.4 25.9 23 18 20 27.8 15.0 — — — — — 324 270 259 20.0 25.1 
Securities finance84 81 109 3.7 (22.9)4 3 2 33.3 100.0 — — — — — 88 84 111 4.8 (20.7)
Software and processing fees178 162 208 9.9 (14.4)26 10 11 160.0 nm— — — — — 204 172 219 18.6 (6.8)
Total fee revenue1,870 1,796 1,855 4.1 0.8 546 510 513 7.1 6.4 — — — — — 2,416 2,306 2,368 4.8 2.0 
Net interest income495 482 639 2.7 (22.5)4 (4)(3)(200.0)(233.3)— — — — — 499 478 636 4.4 (21.5)
Total other income2 — 44 — (95.5)— — — — — — — — — — 2 — 44 — (95.5)
Total revenue2,367 2,278 2,538 3.9 (6.7)550 506 510 8.7 7.8 — — — — — 2,917 2,784 3,048 4.8 (4.3)
Provision for loan losses— — 3 —(100.0)— — — — — — — — — — — — 3 —(100.0)
Total expenses1,756 1,739 1,749 1.0 0.4 375 358 379 4.7 (1.1)145 6 279 nm(48.0)2,276 2,103 2,407 8.2 (5.4)
Income before income tax expense$611 $539 $786 13.4 (22.3)$175 $148 $131 18.2 33.6 $(145)$(6)$(279)nm(48.0)$641 $681 $638 (5.9)0.5 
Pre-tax margin25.8 %23.7 %31.0 %210 (520)bps31.8 %29.2 %25.7 %260 610 bps22.0 %24.5 %20.9 %(250)110 bps
Years Ended December 31,
Investment Servicing% ChangeInvestment Management% Change
Other(1)
% ChangeTotal% Change
(Dollars in millions)20202019YTD2020
vs.
YTD2019		20202019YTD2020
vs.
YTD2019		20202019YTD2020
vs.
YTD2019		20202019YTD2020
vs.
YTD2019
Servicing fees$5,167 $5,074 1.8 %$— $— — %$— $— — %$5,167 $5,074 1.8 %
Management fees— — — 1,880 1,824 3.1 — — — 1,880 1,824 3.1 
Foreign exchange trading services1,299 974 33.4 64 84 (23.8)— — — 1,363 1,058 28.8 
Securities finance342 462 (26.0)14 9 55.6 — — — 356 471 (24.4)
Software and processing fees706 691 2.2 27 29 nm— — — 733 720 1.8 
Total fee revenue7,514 7,201 4.3 1,985 1,946 2.0 — — — 9,499 9,147 3.8 
Net interest income2,211 2,590 (14.6)(11)(24)(54.2)— — — 2,200 2,566 (14.3)
Total other income4 43 nm— — — — — — 4 43 nm
Total revenue9,729 9,834 (1.1)1,974 1,922 2.7 — — — 11,703 11,756 (0.5)
Provision for loan losses88 10 nm— — — — — — 88 10 nm
Total expenses7,071 7,140 (1.0)1,471 1,535 (4.2)174 359 (51.5)8,716 9,034 (3.5)
Income before income tax expense$2,570 $2,684 (4.2)$503 $387 30.0 $(174)$(359)(51.5)$2,899 $2,712 6.9 
Pre-tax margin26.4 %27.3 %(90)bps25.5 %20.1 %540 bps— 24.8 %23.1 %170 bps
(1)Represents costs incurred that are not allocated to a specific line of business, including certain severance and restructuring costs, acquisition costs and certain provisions for legal contingencies.
DM Denotes not meaningful
12    

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO HOLDINGS BY ASSET CLASS
Ratings
(Dollars in billions, or where otherwise noted)UST/AGYAAAAAABBB<BBBNRFair Value% Total
Spot Rate(1)
Net Unrealized Pre-tax MTM Gain/(Loss)
(In millions)(2)
Fixed Rate/
Floating Rate(3)
Available-for-sale investment securities:
Government & agency securities23 %32 %31 %6 %7 %— %1 %$28.7 48.5 %0.4 %$441 100% / 0%
Asset-backed securities— 92 8 — — — — 7.6 13.0 0.9 (3)0% / 100%
Student loans— 42 58 — — — — 0.3 4.1 1.0 1 
Credit cards— 100 — — — — — 0.1 1.2 0.9 — 
Auto & equipment— 78 22 — — — — 1.1 14.6 0.1 — 
Non-U.S. residential mortgage backed securities— 96 4 — — — — 2.0 26.1 0.8 2 
Collateralized loan obligation— 100 — — — — — 3.9 51.3 1.3 (6)
Other— 58 42 — — — — 0.2 2.7 — — 
Mortgage-backed securities100 — — — — — — 11.1 18.7 3.0 369 99% / 1%
Agency MBS100 — — — — — — 11.1 100.0 3.0 369 
Non-agency MBS— — — — — — — — — — — 
CMBS98 2 — — — — — 3.3 5.6 1.0 47 20% / 80%
Corporate bonds— — 10 38 52 — — 5.3 9.0 1.4 111 98% / 2%
Covered bonds— 100 — — — — — 0.5 0.9 0.2 5 15% / 85%
Municipal bonds— 24 72 4 — — — 0.8 1.4 2.8 64 100% / 0%
Clipper tax-exempt bonds— 14 61 17 7 — — 0.7 1.2 4.1 14 0% / 100%
Other— 12 77 10 — — — 1.0 1.7 1.0 13 81% / 19%
Total available-for-sale portfolio36 %29 %20 %7 %8 %— %— %$59.0 100.0 %1.1 %$1,061 80% / 20%
Fair Value$20.9 $17.1 $11.9 $4.0 $4.8 $0.1 $0.2 
UST/AGYAAAAAABBB<BBBNRAmortized Cost% Total
Spot Rate(1)
Net Unrealized Pre-tax MTM Gain/(Loss)
(In millions)(2)
Fixed Rate/
Floating Rate(3)
Held-to-maturity investment securities:
Government & agency securities95 %5 %— %— %— %— %— %$6.4 12.3 %2.0 %$83 100% / 0%
Asset-backed securities— 32 62 2 3 1 — 5.1 9.8 1.1 71 6% / 94%
Student loans— 33 64 — 3 — — 4.8 93.9 1.1 7 
Non-U.S. residential mortgage backed securities— 24 21 26 11 16 2 0.3 6.1 1.8 64 
Other— — — 100 — — — — — 1.1 — 
Mortgage-backed securities100 — — — — — — 32.5 62.2 2.4 777 99% / 1%
Agency MBS100 — — — — — — 32.4 99.7 2.4 748 
Non-agency MBS— — 6 8 19 50 17 0.1 30.0 2.1 28 
CMBS90 10 — — — — — 4.9 9.4 1.6 140 86% / 14%
Held-to-maturity under money market liquidity facility— — — — — — 100 3.3 6.3 1.3 4 100% / 0%
Total held-for-maturity portfolio83 %5 %6 %— %— %— %6 %$52.2 100.0 %2.1 %$1,075 89% / 11%
Amortized Cost$42.9 $2.5 $3.1 $0.1 $0.2 $0.1 $3.3 
(1) The spot rate for asset-backed securities, mortgage-backed securities and CMBS assumes premiums/discounts are amortized on a straight-line basis to the final maturity of the security.
(2) At December 31, 2020, the after-tax unrealized MTM gain/(loss) includes after-tax unrealized gain on securities available-for-sale of $785 million, after-tax unrealized gain on securities held-to-maturity of $796 million and after-tax unrealized loss primarily related to securities previously transferred from available-for-sale to held-to-maturity of $58 million.
(3) At December 31, 2020, fixed-to-floating rate securities had a book value of approximately $175 million or .16% of the total portfolio.
13    

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO NON-U.S. INVESTMENTS
Investment Securities
(Dollars in billions)Fair ValueAverage Rating
Gov't/Agency(1)(2)
ABS
FRMBS		ABS
All Other		Corporate BondsCovered BondsOtherMMLF
Available-for-sale:
Germany$3.8 AA$3.0 $— $0.7 $0.1 $— $— $— 
United Kingdom3.6 AAA2.7 0.4 0.2 0.3 — — — 
Canada3.2 AAA2.8 — — 0.2 — 0.2 — 
Australia3.1 AAA0.9 1.2 — 0.2 — 0.8 — 
France2.9 AA1.5 — 0.9 0.3 0.2 — — 
Spain1.7 BBB1.6 — 0.1 — — — — 
Belgium1.6 AA1.5 — — — 0.1 — — 
Austria1.5 AA1.5 — — — — — — 
Netherlands1.5 AA0.6 0.3 0.1 0.5 — — — 
Ireland1.2 A1.2 — — — — — — 
Finland1.2 AA1.2 — — — — — — 
Italy1.1 A0.7 0.1 0.3 — — — — 
Japan0.6 A0.6 — — — — — — 
Luxembourg0.5 AA0.5 — — — — — — 
Other0.5 AA0.2 — — 0.2 0.1 — — 
Total Non-U.S. Investments(3)
$28.0 $20.5 $2.0 $2.3 $1.8 $0.4 $1.0 $— 
U.S. Investments31.0 
Total available-for-sale$59.0 
Investment Securities
(Dollars in billions)Amortized CostAverage Rating
Gov't/Agency(1)(2)
ABS
FRMBS		ABS
All Other		Corporate BondsCovered BondsOtherMMLF
Held-to-maturity:
Singapore$0.4 AAA$0.4 $— $— $— $— $— $— 
United Kingdom0.1 AA— 0.1 — — — — — 
Australia0.1 A— 0.1 — — — — — 
Spain0.1 BBB— 0.1 — — — — — 
Total Non-U.S. Investments(3)
$0.7 $0.4 $0.3 $— $— $— $— $— 
U.S. Investments51.5 
Total held-for-maturity$52.2 
Total Portfolio$111.2 
(1) Sovereign debt is reflected in the government / agency column.
(2) As of December 31, 2020, the fair value included $9.5 billion of supranational and non-U.S. agency bonds.
(3) Country of collateral used except for corporates where country of issuer is used.

14    

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ALLOWANCE FOR CREDIT LOSSES
Quarters% Change
(Dollars in millions)1Q192Q193Q194Q191Q202Q203Q204Q204Q20
vs.
4Q19		4Q20
vs.
3Q20
Allowance for credit losses:
Beginning balance(1)
$83 $83 $88 $86 $93 $124 $163 $153 77.9 %(6.1)%
Provision for credit losses (funded commitments)
4 1 2 3 29 57 3 (6)nmnm
Provision for credit losses (unfunded commitments)(2)
(4)4 — 3 3 (4)(2)6 100.0nm
Provision for credit losses (held-to-maturity securities and all other)
— — — — 4 (1)(1)— nm(100.0)
Total provision— 5 2 6 36 52 — — (100.0)nm
Charge-offs— — (2)(1)(5)(14)(14)(8)nm(42.9)
Other(3)
— — (2)— — 1 4 3 nm(25.0)
Ending balance(4)
$83 $88 $86 $91 $124 $163 $153 $148 62.6(3.3)
Allowance for credit losses:
Loans$70 $72 $71 $74 $97 $141 $134 $122 64.9 (9.0)
Held-to-maturity securities— — — — 4 4 3 3 nm—
Unfunded (off-balance sheet) commitments13 16 15 17 22 18 15 22 29.4 46.7 
All other— — — — 1 — 1 1 nm—
Ending balance(4)
$83 $88 $86 $91 $124 $163 $153 $148 62.6 (3.3)
(1) We adopted ASU 2016-13 on January 1, 2020, Allowance for Credit Losses. Prior to 2020, we recognized allowance for loan losses under an incurred loss model. Upon adoption, we increased the allowance and reduced retained earnings by approximately $2.6 million. As such, the ending balance for 4Q19 will not agree to the opening balance for 1Q20.
(2) Prior to the adoption of ASU 2016-13, the provision for unfunded commitments was recorded within Other expenses in the consolidated statement of income. Upon adoption of ASU 2016-13 in 1Q20, the provision for all assets within scope is recorded within Provision for credit losses in the consolidated statement of income.
(3) Consists primarily of FX translation.
(4) The allowance for credit losses on unfunded commitments is included within Other liabilities in the Consolidated Statement of Condition.
nm Not meaningful

15    

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% ChangeYear-to-Date% Change
(Dollars in millions)1Q192Q193Q194Q191Q202Q203Q204Q204Q20
vs.
4Q19		4Q20
vs.
3Q20		20192020YTD2020
vs.
YTD2019
Fee Revenue:
Total fee revenue, GAAP-basis$2,260 $2,260 $2,259 $2,368 $2,399 $2,378 $2,306 $2,416 2.0 %4.8 %$9,147 $9,499 3.8 %
Total fee revenue, excluding notable items$2,260 $2,260 $2,259 $2,368 $2,399 $2,378 $2,306 $2,416 2.0 4.8 $9,147 $9,499 3.8 
Total Revenue:
Total revenue, GAAP-basis$2,932 $2,873 $2,903 $3,048 $3,065 $2,937 $2,784 $2,917 (4.3)%4.8 %$11,756 $11,703 (0.5)%
Less: other income— — — (44)— — — — — — (44)— nm
Total revenue, excluding notable items$2,932 $2,873 $2,903 $3,004 $3,065 $2,937 $2,784 $2,917 (2.9)4.8 $11,712 $11,703 (0.1)
Expenses:
Total expenses, GAAP-basis$2,293 $2,154 $2,180 $2,407 $2,255 $2,082 $2,103 $2,276 (5.4)%8.2 %$9,034 $8,716 (3.5)%
Less: Notable expense items:
Acquisition and restructuring costs(1)
(9)(12)(27)(29)(11)(12)(15)(12)(58.6)(20.0)(77)(50)(35.1)
Repositioning charges— — — (110)— — — (133)20.9 nm(110)(133)20.9 
Legal and related(14)— (18)(140)— — 9 — nmnm(172)9 nm
Total expenses, excluding notable items$2,270 $2,142 $2,135 $2,128 $2,244 $2,070 $2,097 $2,131 0.1 1.6 $8,675 $8,542 (1.5)
Fee Operating Leverage, GAAP-Basis:
Total fee revenue, GAAP-basis
$2,260$2,260$2,259$2,368$2,399$2,378$2,306$2,416 2.0 %4.8 %$9,147 $9,499 3.8 %
Total expenses, GAAP-basis
2,2932,1542,1802,4072,2552,0822,1032,276 (5.4)8.2 9,034 8,716 (3.5)
Fee operating leverage, GAAP-basis
740 
bps
(340)
bps
730 
bps
Fee Operating Leverage, excluding notable items:
Total fee revenue, excluding notable items (as reconciled above)$2,260$2,260$2,259$2,368$2,399$2,378$2,306$2,416 2.0 %4.8 %$9,147 $9,499 3.8 %
Total expenses, excluding notable items (as reconciled above)2,2702,1422,1352,1282,2442,0702,0972,131 0.1 1.6 8,675 8,542 (1.5)
Fee operating leverage, excluding notable items
190 
bps
320 
bps
530 bps
Operating Leverage, GAAP-Basis:
Total revenue, GAAP-basis
$2,932$2,873$2,903$3,048$3,065$2,937$2,784$2,917 (4.3)%4.8 %$11,756 $11,703 (0.5)%
Total expenses, GAAP-basis
2,2932,1542,1802,4072,2552,0822,1032,276 (5.4)8.2 9,034 8,716 (3.5)
Operating leverage, GAAP-basis
110 bps(340)bps300 
bps
Operating Leverage, excluding notable items:
Total revenue, excluding notable items (as reconciled above)$2,932$2,873$2,903$3,004$3,065$2,937$2,784$2,917 (2.9)%4.8 %$11,712 $11,703 (0.1)%
Total expenses, excluding notable items (as reconciled above)2,2702,1422,1352,1282,2442,0702,0972,131 0.1 1.6 8,675 8,542 (1.5)
Operating leverage, excluding notable items
(300)
bps
320 
bps
140 bps
16    

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF NON-GAAP FINANCIAL INFORMATION (Continued)
Quarters% ChangeYear-to-Date% Change
(Dollars in millions, except Earnings per share, or where otherwise noted)1Q192Q193Q194Q191Q202Q203Q204Q204Q20
vs.
4Q19		4Q20
vs.
3Q20		20192020YTD2020
vs.
YTD2019
Net Income Available to Common Shareholders:
Net Income Available to Common Shareholders, GAAP-basis
$452$537$528$492$580$662$517$4981.2 %(3.7)%$2,009 $2,257 12.3 %
Less: Notable items
Acquisition and restructuring costs(1)
91227291112151277 50 
Repositioning charges
———110———133110 133 
Legal and related
14—18140——(9)—172 (9)
Other income
———(44)————(44)— 
Preferred securities redemption(2)
———229———22 9 
Tax impact of notable items
(2)(3)(12)(25)(3)(3)(4)(37)(42)(47)
Net Income Available to Common Shareholders, excluding notable items
$473$546$561$724$597$671$519$606(16.3)16.8 $2,304 $2,393 3.9 
Diluted Earnings per Share:
Diluted earnings per share, GAAP-basis$1.18$1.42$1.42$1.35$1.62$1.86$1.45$1.393.0 %(4.1)%$5.38$6.3217.5 %
Less: Notable items
Acquisition and restructuring costs(1)
0.020.030.060.060.020.020.030.030.160.10
Repositioning charges
———0.22———0.270.220.27
Legal and related
0.04—0.030.38——(0.03)—0.44(0.02)
Other income
———(0.09)————(0.09)—
Preferred securities redemption(2)(3)
———0.060.03———0.060.03
Diluted earnings per share, excluding notable items
$1.24$1.45$1.51$1.98$1.67$1.88$1.45$1.69(14.6)%16.6 $6.17$6.708.6 
Pre-tax Margin:
Pre-tax margin, GAAP-basis21.7 %25.0 %24.8 %20.9 %25.3%27.3 %24.5 %22.0%110 bps(250)bps23.1 %24.8 %170 bps
Less: Notable items
Acquisition and restructuring costs(1)
0.3 0.4 1.0 1.00.3 0.40.50.40.7 0.4 
Repositioning charges
———3.6———4.50.9 1.2 
Legal and related
0.5

—

0.6

4.7——(0.3)—1.5 (0.1)
Other income
———(1.1)————(0.4)—
Pre-tax margin, excluding notable items
22.5%25.4%26.4%29.1%25.6%27.7%24.7%26.9%(220)22025.8%26.3%50 
Return on Average Common Equity:
Return on average common equity, GAAP-basis8.7 %10.1 %9.7 %9.0 %10.9 %12.1%8.9%8.4%(60)bps(50)bps9.4%10.0%60 bps
Less: Notable items
Acquisition and restructuring costs(1)
0.20.20.50.50.20.20.20.20.40.2
Repositioning charges
———2.0———2.40.50.6
Legal and related
0.2—0.32.6——(0.1)—0.7—
Other income
———(0.8)————(0.2)—
Preferred securities redemption(2)(3)
———0.40.2———0.1—
Tax impact of notable items
——(0.2)(0.4)(0.1)——(0.7)(0.1)(0.2)
Return on average common equity, excluding notable items
9.1%10.3%10.3%13.3%11.2%12.3%9.0%10.3%(300)130 10.8%10.6%(20)
(1) Acquisition and restructuring costs of approximately $12 million in 4Q20, 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 all outstanding Series E noncumulative perpetual preferred stock on December 15, 2019 at a redemption price of $750 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 $22 million resulted in an EPS impact of approximately ($.06) per share in 2019.
17    

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF PRE-TAX MARGIN EXCLUDING NOTABLE ITEMS
(Dollars in millions)
2016(1)
2017
2018(1)
20192020
Total revenue:
Total revenue, GAAP-basis$10,291 $11,266 $12,131 $11,756 $11,703 
Less: Gain on sale(53)(56)— — — 
Add: Impact of tax legislation— 20 — — — 
Add: Legal and related43 — 8 — — 
Less: Other income— — — (44)— 
Total revenue, excluding notable items10,281 11,230 12,139 11,712 11,703 
Provision for credit losses10 2 15 10 88 
Total expenses:
Total expenses, GAAP-basis8,077 8,269 9,015 9,034 8,716 
Less:
Acquisition and restructuring costs(209)(266)(24)(77)(50)
Legal and related(56)— (42)(172)9 
Repositioning charges(1)
11 — (324)(110)(133)
Acceleration of deferred cash awards(249)— — — — 
Total expenses, excluding notable items7,574 8,003 8,625 8,675 8,542 
Income before income tax expense, excluding notable items$2,697 $3,225 $3,499 $3,027 $3,073 
Income before income tax expense, GAAP-basis$2,204 $2,995 $3,101 $2,712 $2,899 
Pre-tax margin, excluding notable items26.2 %28.7 %28.8 %25.8 %26.3 %
Pre-tax margin, GAAP-basis21.4 26.6 25.6 23.1 24.8 
(1) Includes charges in 2016 that were previously disclosed as "severance costs associated with staffing realignment" and charges in 2018 that were previously disclosed as "Business exit: Channel Islands."


18    

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF NOTABLE ITEMS
Quarters% ChangeYear-to-Date% Change
(Dollars in millions)1Q192Q193Q194Q191Q202Q203Q204Q204Q20
vs.
4Q19		4Q20
vs.
3Q20		YTD 2019YTD 2020YTD2020
vs.
YTD2019
Total revenue:
Total revenue, GAAP-basis$2,932 $2,873 $2,903 $3,048 $3,065 $2,937 $2,784 $2,917 (4.3)%4.8 %$11,756 $11,703 (0.5)%
Less: other income— — — (44)— — — — nmnm(44)— nm
Total revenue, excluding notable items2,932 2,873 2,903 3,004 3,065 2,937 2,784 2,917 (2.9)4.8 $11,712 $11,703 (0.1)
Total expenses:
Total expenses, GAAP basis$2,293 $2,154 $2,180 $2,407 $2,255 $2,082 $2,103 $2,276 (5.4)8.2 $9,034 $8,716 (3.5)
Less: Notable expense items:
Repositioning charges:
Compensation and employee benefits— — — (98)— — — (82)(16.3)— (98)(82)(16.3)
Occupancy— — — (12)— — — (51)nm— (12)(51)nm
Repositioning charges— — — (110)— — — (133)20.9 — (110)(133)20.9 
Acquisition and restructuring costs(9)(12)(27)(29)(11)(12)(15)(12)(58.6)(20.0)(77)(50)(35.1)
Legal and related(14)— (18)(140)— — 9 — nm(100.0)(172)9 nm
Total expenses, excluding notable items2,270 2,142 2,135 2,128 2,244 2,070 2,097 2,131 0.1 1.6 8,675 8,542 (1.5)
Seasonal expenses(137)— — — (151)— — — —— (137)(151)10.2 
Total expenses excluding notable items and seasonal expenses2,133 2,142 2,135 2,128 2,093 2,070 2,097 2,131 0.1 1.6 8,538 8,391 (1.7)
CRD expenses(41)(46)(56)(58)(58)(61)(62)(67)15.5 8.1 (201)(248)23.4 
CRD related expenses: intangible asset amortization costs(15)(17)(17)(16)(17)(16)(17)(16)— (5.9)(65)(66)1.5 
Total expenses, excluding notable items, seasonal items, CRD and CRD related expenses2,077 2,079 2,062 2,054 2,018 1,993 2,018 2,048 (0.3)1.5 8,272 8,077 (2.4)
Net Income Available to Common Shareholders, GAAP-basis$452$537$528$492$580$662$517 $4981.2 (3.7)$2,009 $2,257 12.3 
Notable items as reconciled above: pre-tax23 12 45 235 11 12 6 145 315 174 
Tax impact on notable items as reconciled above(2)(3)(12)(25)(3)(3)(4)(37)(42)(47)
Preferred security cost———229—— —22 9 
Net Income Available to Common Shareholders, excluding notable items$473 $546 $561 $724 $597 $671 $519 606 (16.3)16.8 $2,304 $2,393 3.9 
nm Denotes not meaningful
19    

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF CONSTANT CURRENCY FX IMPACTS
GAAP-Basis Quarter ComparisonReportedCurrency Translation ImpactExcluding Currency Impact% Change Constant Currency
(Dollars in millions)4Q193Q204Q204Q20
vs.
4Q19		4Q20
vs.
3Q20		4Q20
vs.
4Q19		4Q20
vs.
3Q20		4Q20
vs.
4Q19		4Q20
vs.
3Q20
GAAP-Basis Results:
Fee revenue:
Servicing fees$1,299 $1,301 $1,307 $24 $7 $1,283 $1,300 (1.2)%(0.1)%
Management fees480 479 493 5 2 488 491 1.7 2.5 
Foreign exchange trading services259 270 324 — — 324 324 25.1 20.0 
Securities finance111 84 88 — — 88 88 (20.7)4.8 
Software and processing fees219 172 204 — 1 204 203 (6.8)18.0 
Total fee revenue2,368 2,306 2,416 29 10 2,387 2,406 0.8 4.3 
Net interest income636 478 499 9 2 490 497 (23.0)4.0 
Total other income44 — 2 — — 2 2 ——
Total revenue$3,048 $2,784 $2,917 $38 $12 $2,879 $2,905 (5.5)4.3 
Expenses:
Compensation and employee benefits$1,145 $1,062 $1,129 $13 $7 $1,116 $1,122 (2.5)5.6 
Information systems and communications362 395 394 1 — 393 394 8.6 (0.3)
Transaction processing services242 234 257 3 1 254 256 5.0 9.4 
Occupancy126 109 162 2 1 160 161 27.0 47.7 
Acquisition and restructuring costs29 15 12 — — 12 12 (58.6)(20.0)
Amortization of other intangible assets58 59 59 1 — 58 59 — — 
Other445 229 263 4 3 259 260 (41.8)13.5 
Total expenses$2,407 $2,103 $2,276 $24 $12 $2,252 $2,264 (6.4)7.7 
GAAP-Basis YTD ComparisonReportedCurrency Translation ImpactExcluding Currency Impact% Change Constant Currency
(Dollars in millions)20192020YTD2020
vs.
YTD2019		2020YTD2020
vs.
YTD2019
GAAP-Basis Results:
Fee revenue:
Servicing fees$5,074 $5,167 $21 $5,146 1.4 %
Management fees1,824 1,880 8 1,872 2.6 
Foreign exchange trading services1,058 1,363 — 1,363 28.8 
Securities finance471 356 — 356 (24.4)
Software and processing fees720 733 — 733 1.8 
Total fee revenue9,147 9,499 29 9,470 3.5 
Net interest income2,566 2,200 7 2,193 (14.5)
Total other income43 4 — 4 nm
Total revenue$11,756 $11,703 $36 $11,667 (0.8)
Expenses:
Compensation and employee benefits$4,541 $4,450 $4 $4,446 (2.1)
Information systems and communications1,465 1,550 1 1,549 5.7 
Transaction processing services983 978 3 975 (0.8)
Occupancy470 489 — 489 4.0 
Acquisition and restructuring costs77 50 — 50 (35.1)
Amortization of other intangible assets236 234 1 233 (1.3)
Other1,262 965 2 963 (23.7)
Total expenses$9,034 $8,716 $11 $8,705 (3.6)
nm Denotes not meaningful
20    

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 total common shareholders’ equity by consolidated total assets, after reducing both amounts by goodwill and other intangible assets net of related deferred taxes. Total assets reflected in the TCE ratio also exclude 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. Tangible common equity and adjusted 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)1Q192Q193Q194Q191Q202Q203Q204Q20
Consolidated total assets$228,332 $241,540 $244,606 $245,610 $362,527 $280,242 $272,075 $314,706 
Less:
   Goodwill7,549 7,565 7,500 7,556 7,506 7,538 7,607 7,683 
   Other intangible assets2,208 2,155 2,077 2,030 1,963 1,914 1,870 1,827 
Cash balances held at central banks in excess of required reserves44,294 52,847 57,330 65,812 144,955 87,585 72,210 113,422 
Adjusted assets174,281 178,973 177,699 170,212 208,103 183,205 190,388 191,774 
   Plus related deferred tax liabilities464 464 462 475 476 479 486 492 
Total tangible assetsA$174,745 $179,437 $178,161 $170,687 $208,579 $183,684 $190,874 $192,266 
Consolidated total common shareholders' equity$21,348 $21,764 $21,519 $21,469 $21,390 $22,402 $23,087 $23,729 
Less:
   Goodwill7,549 7,565 7,500 7,556 7,506 7,538 7,607 7,683 
   Other intangible assets2,208 2,155 2,077 2,030 1,963 1,914 1,870 1,827 
Adjusted equity11,591 12,044 11,942 11,883 11,921 12,950 13,610 14,219 
   Plus related deferred tax liabilities464 464 462 475 476 479 486 492 
Total tangible common equityB$12,055 $12,508 $12,404 $12,358 $12,397 $13,429 $14,096 $14,711 
Tangible common equity ratioB/A6.9 %7.0 %7.0 %7.2 %5.9 %7.3 %7.4 %7.7 %
GAAP-basis:
Net income available to common shareholders$452 $537 $528 $492 $580 $662 $517 $498 
Return on tangible common equity15.0 %15.8 %16.3 %16.3 %18.7 %18.5 %16.6 %15.3 %
21    

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
REGULATORY CAPITAL
Quarters
1Q192Q193Q194Q191Q202Q203Q204Q20
(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)
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 capital12.1 %11.5 %12.3 %11.5 %12.2 %11.3 %11.7 %11.7 %11.1 %10.7 %12.7 %12.3 %12.8 %12.4 %13.1 %12.3 %
Tier 1 capital15.9 15.0 15.9 14.9 15.9 14.6 14.5 14.6 13.4 12.9 15.1 14.6 15.1 14.7 15.4 14.4 
Total capital16.7 15.9 16.6 15.5 16.5 15.3 15.6 15.7 14.5 14.1 16.0 15.7 16.0 15.7 16.2 15.3 
Tier 1 leverage7.4 7.4 7.6 7.6 7.4 7.4 6.9 6.9 6.1 6.1 6.1 6.1 6.6 6.6 6.4 6.4 
Supporting Calculations:
Common equity tier 1 capital$11,899 $11,899 $12,367 $12,367 $12,229 $12,229 $12,213 $12,213 $12,115 $12,115 $13,168 $13,168 $13,825 $13,825 $14,377 $14,377 
Total risk-weighted assets98,023 103,643 100,699 107,972 100,327 108,701 104,364 104,005 109,056 112,763 103,762 106,839 108,112 111,159 109,641 117,286 
Common equity tier 1 risk-based capital ratio12.1 %11.5 %12.3 %11.5 %12.2 %11.3 %11.7 %11.7 %11.1 %10.7 %12.7 %12.3 %12.8 %12.4 %13.1 %12.3 %
Tier 1 capital$15,589 $— $16,058 $16,058 $15,919 $15,919 $15,175 $15,175 $14,586 $14,586 $15,639 $15,639 $16,296 $16,296 $16,848 $16,848 
Total risk-weighted assets98,023 — 100,699 107,972 100,327 108,701 104,364 104,005 109,056 112,763 103,762 106,839 108,112 111,159 109,641 117,286 
Tier 1 risk-based capital ratio15.9 %15.0 %15.9 %14.9 %15.9 %14.6 %14.5 %14.6 %13.4 %12.9 %15.1 %14.6 %15.1 %14.7 %15.4 %14.4 %
Total capital$16,386 $16,460 $16,672 $16,748 $16,530 $16,612 $16,275 $16,360 $15,771 $15,877 $16,650 $16,766 $17,290 $17,413 $17,809 $17,957 
Total risk-weighted assets98,023 103,643 100,699 107,972 100,327 108,701 104,364 104,005 109,056 112,763 103,762 106,839 108,112 111,159 109,641 117,286 
Total risk-based capital ratio16.7 %15.9 %16.6 %15.5 %16.5 %15.3 %15.6 %15.7 %14.5 %14.1 %16.0 %15.7 %16.0 %15.7 %16.2 %15.3 %
Tier 1 capital$15,589 $15,589 $16,058 $16,058 $15,919 $15,919 $15,175 $15,175 $14,586 $14,586 $15,639 $15,639 $16,296 $16,296 $16,848 $16,848 
Adjusted quarterly average assets210,099 210,099 212,127 212,127 213,997 213,997 219,624 219,624 239,861 239,861 256,418 256,418 247,762 247,762 263,490 263,490 
Tier 1 leverage ratio7.4 %7.4 %7.6 %7.6 %7.4 %7.4 %6.9 %6.9 %6.1 %6.1 %6.1 %6.1 %6.6 %6.6 %6.4 %6.4 %
(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.
22    

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF SUPPLEMENTARY LEVERAGE RATIOS
In 2014, U.S. banking regulators issued final rules implementing a supplementary leverage ratio, or SLR, for certain bank holding companies, like State Street, and their insured depository institution subsidiaries, like State Street Bank. We refer to these final rules as the SLR final rule. Under the SLR final rule, which was implemented as of January 1, 2018, (i) State Street Bank must maintain an SLR of at least 6% to be well capitalized under the U.S. banking regulators’ Prompt Corrective Action framework and (ii) if State Street maintains an SLR of at least 5%, it is not subject to limitations on distribution and discretionary bonus payments under the SLR final rule. Beginning with reporting for March 31, 2015, State Street was required to include SLR disclosures with its other Basel disclosures.
The following tables reconcile 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.
As of December 31, 2020 (Dollars in millions)State Street CorporationState Street Bank
Tier 1 CapitalA$16,848 $17,306 
On-and off-balance sheet leverage exposure217,039 227,182 
Less: regulatory deductions(9,353)(8,897)
Total assets for SLRB207,686 218,285 
Supplementary Leverage RatioA/B8.1 %7.9 %
As of September 30, 2020 (Dollars in millions)State Street CorporationState Street Bank
Tier 1 CapitalC$16,296 $17,578 
On-and off-balance sheet leverage exposure206,985 217,362 
Less: regulatory deductions(9,261)(8,828)
Total assets for SLRD197,724 208,534 
Supplementary Leverage RatioC/D8.2 %8.4 %
As of June 30, 2020 (Dollars in millions)State Street CorporationState Street Bank
Tier 1 CapitalE$15,639 $16,998 
On-and off-balance sheet leverage exposure198,266 208,344 
Less: regulatory deductions(9,234)(8,824)
Total assets for SLRF189,032 199,520 
Supplementary Leverage RatioE/F8.3 %8.5 %
As of March 31, 2020 (Dollars in millions)State Street CorporationState Street Bank
Tier 1 CapitalG$14,586 $17,342 
On-and off-balance sheet leverage exposure279,537 275,700 
Less: regulatory deductions(9,275)(8,837)
Total assets for SLRH270,262 266,863 
Supplementary Leverage RatioG/H5.4 %6.5 %
As of December 31, 2019 (Dollars in millions)State Street CorporationState Street Bank
Tier 1 CapitalI$15,175 $16,617 
On-and off-balance sheet leverage exposure257,124 253,500 
Less: regulatory deductions(9,262)(8,837)
Total assets for SLRJ247,862 244,663 
Supplementary Leverage RatioI/J6.1 %6.8 %
As of September 30, 2019 (Dollars in millions)State Street CorporationState Street Bank
Tier 1 CapitalK$15,919 $17,466 
On-and off-balance sheet leverage exposure251,304 247,529 
Less: regulatory deductions(9,276)(8,845)
Total assets for SLRL242,028 238,684 
Supplementary Leverage RatioK/L6.6 %7.3 %
As of June 30, 2019 (Dollars in millions)State Street CorporationState Street Bank
Tier 1 CapitalM$16,058 $17,611 
On-and off-balance sheet leverage exposure248,690 245,118 
Less: regulatory deductions(9,387)(8,980)
Total assets for SLRN239,303 236,138 
Supplementary Leverage RatioM/N6.7 %7.5 %
As of March 31, 2019 (Dollars in millions)State Street CorporationState Street Bank
Tier 1 CapitalO$15,589 17,196 
On-and off-balance sheet leverage exposure245,449 242,506 
Less: regulatory deductions(9,461)(9,017)
Total assets for SLRP235,988 233,489 
Supplementary Leverage RatioO/P6.6 %7.4 %
23    

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘8-K’ Filing    Date    Other Filings
Filed on / For Period end:1/19/21SC 13G/A
12/31/2010-K,  11-K,  13F-HR
9/30/2010-Q,  13F-HR,  EFFECT
6/30/2010-Q,  13F-HR,  3
3/31/2010-Q,  13F-HR,  13F-HR/A
3/15/20
1/1/20
12/31/1910-K,  11-K,  13F-HR
12/15/19
9/30/1910-Q,  13F-HR,  13F-HR/A
6/30/1910-Q,  13F-HR
3/31/1910-Q,  13F-HR
1/1/18
3/31/1510-Q,  13F-HR
 List all Filings 
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