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Form 8-K STATE STREET CORP For: Jul 16

July 16, 2021 7:29 AM
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Exhibit 99.1
State Street Corporation
One Lincoln Street
Boston, MA 02111
NYSE: STT
         www.statestreet.com

Boston, MA… July 16, 2021 News Release

STATE STREET REPORTS SECOND QUARTER 2021 EPS OF $2.07; $1.97 EXCLUDING NOTABLE ITEMS(a)
 % changes noted below reflect year-over-year 2Q comparisons

TOTAL FEE REVENUE UP 6%; UP 4% EX-CURRENCY(a)
STRONG SERVICING AND MANAGEMENT FEE GROWTH OF 10% AND 14%(b)
EXPENSES UP 1%; DOWN (0.4)% EX-NOTABLES AND CURRENCY(a)
PRE-TAX MARGIN OF 30.9%; 29.7% EX-NOTABLES(a)
ROE OF 12.6%, UP 0.5% POINTS
ANNOUNCED COMMON SHARE REPURCHASE PROGRAM OF UP TO $3 BILLION

Ron O'Hanley, Chairman and Chief Executive Officer: "Our second quarter results reflect the successful execution of our strategic priorities. We delivered record fee revenue with continued expense discipline, driving considerable pre-tax margin expansion and earnings growth in the second quarter thus demonstrating meaningful progress toward our medium-term targets. Our innovative client solutions and operational capabilities are yielding benefits across the franchise, as evidenced by another quarter of robust servicing mandates, including State Street AlphaSM, as well as a strong performance at Global Advisors."

O'Hanley added: "The results of the recent supervisory stress test is yet another testament to the strength and resiliency of our business model. Starting in the third quarter, we have announced an increase to our common stock dividend by 10% to $0.57 per share and our Board has authorized a common share repurchase program of up to $3 billion through 2022."

FINANCIAL HIGHLIGHTS
(Table presents summary results, dollars in millions, except per share amounts, or where otherwise noted)2Q211Q212Q20 % QoQ  % YoY
Income statement:
Total fee revenue$2,514 $2,483 $2,378 1 %6 %
Net interest income467 467 559 — (16)
Other income53 — — nmnm
Total revenue3,034 2,950 2,937 3 3 
Provision for credit losses(15)(9)52 nmnm
Total expenses2,111 2,332 2,082 (9)1 
Net income763 519 694 47 10 
Financial ratios and other metrics:
Diluted earnings per share (EPS)$2.07 $1.37 $1.86 51 %11 %
Return on average common equity (ROE)12.6 %8.4 %12.1 %420 bps50 bps
Pre-tax margin30.9 21.3 27.3 960 360 
AUC/A ($ billions)(1)
42,597 40,263 33,515 6 %27 %
AUM ($ billions)(1)
3,897 3,591 3,054 9 28 
(1) As of period-end.


(a) See "2Q21 Highlights" in this news release for a listing of notable items. Results excluding notable items and/or currency translation impact are non-GAAP measures. Please refer to the Addendum included with this news release for an explanation and reconciliation of non-GAAP measures.
(b) 2Q21 Servicing and management fees increased 7% and 11% compared to 2Q20, respectively, excluding currency translation. See footnote (a) above.


Investor Contact: Ilene Fiszel Bieler +1 617-664-3477          Media Contact: Carolyn Cichon +1 617-664-8672
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2Q21 HIGHLIGHTS
(all comparisons are to 2Q20, unless otherwise noted)

AUC/A and AUM
•Investment Servicing AUC/A as of quarter-end increased 27% to $42.6 trillion, primarily due to higher period-end market levels, net new business growth, and client flows
•Investment Management AUM as of quarter-end increased 28% to $3.9 trillion, mainly reflecting higher period-end market levels and net inflows from ETFs and cash, partially offset by institutional net outflows

New business
•Investment Servicing mandates announced in 2Q21 totaled $1.2 trillion, with quarter-end servicing assets to be installed in future periods of $1.2 trillion
◦Strong servicing wins across segments and regions
◦Reported two new Alpha deals and five Alpha client mandates live as of the end of 2Q21
•Charles River Development (CRD) achieved new bookings of $19 million and annual recurring revenue (ARR)(a) of $230 million in 2Q21, up 11%
•Investment Management experienced a second consecutive quarter of robust net inflows of $83 billion from institutional, ETFs and cash
•Announced the formation of State Street Digital, a new division focused on addressing the industry's evolving shift to digital finance

Revenue
•Fee revenue increased 6%; up 4% excluding currency translation,(b) primarily reflecting strong Servicing and Management fees, partially offset by lower FX trading services and Software and processing fees
◦Servicing fees increased 10%; up 7% excluding currency translation(b)
◦Management fees increased 14%; up 11% excluding currency translation(b)
◦Securities finance increased 18%
◦FX trading services decreased (12)%, driven by the absence of 2Q20 FX volatility associated with the COVID-19 pandemic
◦Software and processing fees decreased (12)%, mainly reflecting the absence of prior year market-related adjustments
•Net interest income (NII) decreased (16)%, primarily due to lower investment portfolio yields and a decline in average short-end market rates, partially offset by growth in deposits, the investment portfolio size, and loan balances
◦Compared to 1Q21, NII was flat, as growth in the investment portfolio size and loan balances offset lower investment portfolio yields and a decline in average short-end market rates

Expenses
•Total expenses increased 1%, primarily reflecting the impact of currency translation; total expenses decreased (0.4)%, excluding notable items and currency translation(c)
◦Productivity savings more than offset higher revenue-related expenses and planned investments to support client onboarding, operations, as well as technology and product innovation(c)


(a) See the endnotes included in the "In This News Release" section for explanations of CRD bookings and annual recurring revenue (ARR).
(b) Results excluding currency translation impact are non-GAAP measures. Please refer to the Addendum included with this news release for an explanation and reconciliation of non-GAAP measures.
(c) Total expenses presented excludes notable items and currency translation. This is a non-GAAP presentation. Please refer to the Addendum included with this news release for a reconciliation of ex-notable items/currency translation and further explanations of non-GAAP measures.
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Notable items
(Dollars in millions, except EPS amounts)Quarters
2Q211Q212Q20
Other income(a)
53 — — 
Acquisition and restructuring costs(11)(10)(12)
Legal and other costs(b)
11 (29)— 
Notable items (pre-tax)$53 $(39)$(12)
Preferred securities redemption (after-tax)(c)
— (5)— 
EPS impact$0.10 $(0.10)$(0.02)

Capital
•Standardized Common Equity Tier 1 (CET1) of 11.2% was down (1.1)% points compared to 2Q20, but increased 0.4% points compared to 1Q21
•Tier 1 leverage ratio of 5.2% was down (0.9)% points and (0.2)% points compared to 2Q20 and 1Q21, respectively
•ROE of 12.6% increased 0.5% points and 4.2% points compared to 2Q20 and 1Q21, respectively
•Preliminary Stress Capital Buffer (SCB) calculated under this year’s supervisory stress test was well below the 2.5% minimum, resulting in an SCB at that floor; G-SIB surcharge at 1% through 2023
•Capital return:
◦In 2Q21, State Street returned more than $600 million of capital to shareholders, consisting of $181 million of common stock dividends and $425 million in common share repurchases
◦In July 2021, State Street announced a 10% increase to 3Q21 quarterly common stock dividend to $0.57 per share, and a common stock repurchase program of up to $3 billion through year end 2022(d)




























(a) $53 million in 2Q21, included in Other income, reflecting a gain on sale of a majority interest in our Wealth Manager Services business.
(b) Legal and other benefits of $11 million in 2Q21 included in Other expenses. Legal and other costs of $29 million in 1Q21 included $20 million in Information systems and communications, $8 million in Transaction processing, and $1 million in Other expenses.
(c) $5 million in 1Q21 was related to the redemption of $500 million of outstanding Series F preferred stock.
(d) State Street’s $3 billion common stock repurchase authorization covers through year end 2022. Stock purchases may be made using various types of transactions, including open-market purchases, accelerated share repurchases or other transactions off the market, and may be made under Rule 10b5-1 trading programs. The timing and amount of any stock purchases and the type of transaction will depend on several factors, including investment opportunities, State Street’s capital position, its financial performance, market conditions and the amount of common stock issued as part of employee compensation programs. The common stock purchase program does not have specific price targets and may be suspended at any time.
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MARKET DATA
The following table provides a summary of selected financial information, including market indices and foreign exchange rates.
(Dollars in billions, except market indices and foreign exchange rates)2Q211Q212Q20 % QoQ % YoY
Assets under Custody and/or Administration (AUC/A)(1) (2)
$42,597 $40,263 $33,515 5.8 27.1 
Assets under Management (AUM)(2)
3,897 3,591 3,054 8.5 27.6 
Market Indices:(3)
S&P 500 daily average4,184 3,866 2,932 8.2 42.7 
S&P 500 EOP4,298 3,973 3,100 8.2 38.6 
MSCI EAFE daily average2,307 2,201 1,681 4.8 37.2 
MSCI EAFE EOP2,305 2,208 1,781 4.4 29.4 
MSCI Emerging Markets daily average1,351 1,363 930 (0.9)45.3 
MSCI Emerging Markets EOP1,375 1,316 995 4.5 38.2 
Barclays Capital Global Aggregate Bond Index EOP541 534 527 1.3 2.7 
Foreign Exchange Volatility Indices:(3)
JPM G7 Volatility Index daily average6.3 6.8 8.2 (7.4)(23.2)
JPM Emerging Market Volatility Index daily average9.4 10.4 11.1 (9.6)(15.3)
Average Foreign Exchange Rate:
EUR vs. USD1.205 1.205 1.101 — 9.4 
GBP vs. USD1.398 1.379 1.242 1.4 12.6 
(1) Includes assets under custody of $31,947 billion, $30,134 billion, and $25,399 billion, as of EOP for 2Q21, 1Q21, and 2Q20, respectively.
(2) As of period-end.
(3) The index names listed in the table are service marks of their respective owners.


INDUSTRY FLOW DATA
The following table represents industry flow data.
(Dollars in billions)2Q211Q214Q203Q202Q20
North America - (US Domiciled) Morningstar Direct Market Data:(1)(2)
Long Term Funds$167 $165 $74 $21 $56 
Money Market24 156 (82)(166)259 
ETF148 148 120 60 70 
Total Flows(3)
$340 $470 $112 $(84)$385 
EMEA-Morningstar Direct Market Data:(1)(4)
Long Term Funds$206 $237 $250 $134 $168 
Money Market7 (91)59 60 153 
ETF53 54 48 32 36 
Total Flows(3)
$266 $200 $357 $227 $357 
(1) Industry data is provided for illustrative purposes only. It is not intended to reflect State Street or its clients' activity and is indicative of only segments of the entire industry. Industry flow data presented reflects a change in data providers from previous presentations for all periods presented. See endnotes included in the "In This News Release" section.
(2) 2Q21 data for North America includes actuals for April and May 2021 and Morningstar estimates for June 2021.
(3) Line items may not sum to total due to rounding.
(4) 2Q21 data for Europe is on a rolling three month basis for March 2021 through May 2021, sourced by Morningstar.
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INVESTMENT SERVICING AUC/A
The following table presents AUC/A information by product and financial instrument.
(Dollars in billions)2Q211Q212Q20 % QoQ % YoY
Assets Under Custody and/or Administration(1)
By Product Classification(2):
Mutual funds$10,873 $10,439 $8,265 4.2 %31.6 %
Collective funds, including ETFs15,048 14,052 11,230 7.1 34.0 
Pension products8,291 7,843 6,689 5.7 23.9 
Insurance and other products8,385 7,929 7,331 5.8 14.4 
Total Assets Under Custody and/or Administration$42,597 $40,263 $33,515 5.8 %27.1 %
By Financial Instrument:
Equities$24,792 $22,825 $18,190 8.6 %36.3 %
Fixed-income13,079 13,022 11,342 0.4 15.3 
Short-term and other investments4,726 4,416 3,983 7.0 18.7 
Total Assets Under Custody and/or Administration$42,597 $40,263 $33,515 5.8 %27.1 %
(1) As of period-end.
(2) Certain previously reported amounts presented have been reclassified to conform to current-period presentation.


INVESTMENT MANAGEMENT AUM
The following tables present 2Q21 activity in AUM by product category.
(Dollars in billions) EquityFixed- Income Cash Multi-Asset Class Solutions
Alternative Investments(1)
 Total
Beginning balance as of March 31, 2021(1)
$2,282 $554 $372 $189 $194 $3,591 
Net asset flows:
Long-term institutional(2)
13 37 — 7 (2)55 
ETF15 5 — — 1 21 
Cash fund— — 7 — — 7 
Total flows, net$28 $42 $7 $7 $(1)$83 
Market appreciation/(depreciation)152 14 2 11 45 224 
Foreign exchange impact(1)— — — — (1)
Total market/foreign exchange impact$151 $14 $2 $11 $45 $223 
Ending balance as of June 30, 2021
$2,461 $610 $381 $207 $238 $3,897 
(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 reclassifications between the categories presented. There was no impact to the total level of reported AUM.
(2) Amounts represent long-term portfolios, excluding ETFs.

(Dollars in billions)2Q211Q214Q203Q202Q20
Beginning balance$3,591 $3,467 $3,148 $3,054 $2,689 
Net asset flows:
Long-term institutional(2)
55 (8)(71)(8)(31)
ETF21 23 20 1 26 
Cash fund7 24 30 (58)28 
Total flows, net$83 $39 $(21)$(65)$23 
Market appreciation/(depreciation)224 116 306 136 324 
Foreign exchange impact(1)(31)34 23 18 
Total market and foreign exchange impact$223 $85 $340 $159 $342 
0
Ending balance$3,897 $3,591 $3,467 $3,148 $3,054 
(1) 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.
(2) Amounts represent long-term portfolios, excluding ETFs.
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REVENUE
(Dollars in millions)2Q211Q212Q20 % QoQ% YoY
Servicing fees$1,399 $1,371 $1,272 2.0 %10.0 %
Management fees(a)
504 493 444 2.2 13.5 
Foreign exchange trading services(a)
286 346 325 (17.3)(12.0)
Securities finance revenue109 99 92 10.1 18.5 
Software and processing fees216 174 245 24.1 (11.8)
Total fee revenue$2,514 $2,483 $2,378 1.2 %5.7 %
Net interest income467 467 559 — (16.5)
Other income53 — — nmnm
Total Revenue$3,034 $2,950 $2,937 2.8 %3.3 %
Net interest margin (FTE)(b)
0.71 %0.75 %0.93 %(4)bps(22)bps

Servicing fees increased 10% compared to 2Q20, primarily driven by higher average equity market levels, client flows, net new business, and the impact of currency translation, partially offset by normal pricing headwinds and the absence of prior year client activity. Servicing fees were up 2% compared to 1Q21, mainly due to higher average equity market levels and net new business.

Management fees(a) increased 14% compared to 2Q20, primarily reflecting higher average equity market levels, net inflows from ETFs, and the impact of currency translation, partially offset by an idiosyncratic institutional client asset reallocation reported in 1Q21, and money market fee waivers. Management fees were up 2% compared to 1Q21, primarily reflecting higher average equity market levels and net inflows, partially offset by money market fee waivers.

Foreign exchange trading services(a) decreased (12)% compared to 2Q20, largely reflecting the absence of 2Q20 FX volatility associated with the COVID-19 pandemic, partially offset by higher client FX volumes. Compared to 1Q21, Foreign exchange trading services decreased (17)%, mainly due to lower FX volatility and client volumes.

Securities finance increased 18% and 10% compared to 2Q20 and 1Q21, respectively, primarily driven by higher client balances, partially offset by lower spreads.

Software and processing fees decreased (12)% compared to 2Q20, mainly reflecting the absence of prior year market-related adjustments. Software and processing fees increased 24% compared to 1Q21, primarily reflecting higher CRD revenues.

Net interest income (NII) decreased (16)% compared to 2Q20, primarily due to lower investment portfolio yields and a decline in average short-end market rates, partially offset by growth in deposits, the investment portfolio size, and loan balances. Compared to 1Q21, NII was flat, as growth in the investment portfolio size and loan balances offset lower investment portfolio yields and a decline in average short-end market rates.

Other income of $53 million, reflecting a gain on sale of a majority interest in our Wealth Manager Services business.

Total revenues were positively impacted by currency translation when compared to 2Q20 and 1Q21 by $64 million and $2 million, respectively.


 (a) 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.
(b) Net Interest Margin (NIM) is presented on a fully taxable-equivalent (FTE) basis. Refer to the Addendum for reconciliations of our FTE-basis presentation.
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PROVISION FOR CREDIT LOSSES
(Dollars in millions)2Q211Q212Q20 % QoQ % YoY
Allowance for credit losses:
Beginning balance$135 $148 $124 (8.8)%8.9 %
Provision for credit losses(15)(9)52 66.7nm
Charge-offs(1)— (14)nm(92.9)
Other(1)
2 (4)1 nm100.0
Ending Balance$121 $135 $163 (10.4)%(25.8)%
(1) Consists primarily of currency translation

Total provision for credit losses reflects a $15 million reserve release in 2Q21, primarily driven by improved economic conditions.

EXPENSES
(Dollars in millions)2Q211Q212Q20 % QoQ % YoY
Compensation and employee benefits$1,077$1,242$1,051(13.3)%2.5 %
Information systems and communications398421376(5.5)5.9 
Transaction processing services263270233(2.6)12.9 
Occupancy100109109(8.3)(8.3)
Acquisition and restructuring costs11101210.0 (8.3)
Amortization of other intangible assets6358588.6 8.6 
Other199222243(10.4)(18.1)
Total Expenses$2,111$2,332$2,082(9.5)%1.4 %
Total expenses, excluding notable items(a)
$2,111$2,293$2,070(7.9)%2.0 %
Effective tax rate18.6 %17.2 %13.6 %140 bps500 bps

Compensation and employee benefits increased 2% compared to 2Q20, primarily driven by the impact of currency translation, higher medical and pension costs, as well as higher contractor spend, partially offset by lower headcount in high cost locations. Compensation and employee benefits decreased (13)% compared to 1Q21, primarily due to the absence of seasonal expenses.(b)

Information systems and communications increased 6% compared to 2Q20, mainly reflecting higher technology and infrastructure investments. Information systems and communications decreased (5)% compared to 1Q21, primarily due to the absence of notable items reported in 1Q21.(a)

Transaction processing services increased 13% compared to 2Q20, primarily due to higher revenue-related costs, involving sub-custody and market data. Transaction processing decreased (3)% compared to 1Q21, primarily driven by the absence of notable items reported in 1Q21.(a)

Occupancy decreased (8)% compared to 2Q20, primarily due to footprint optimization. Occupancy decreased (8)% compared to 1Q21, primarily due to a temporary reduction in maintenance costs.

Amortization of other intangible assets increased 9% compared to both 2Q20 and 1Q21, due to the lift-out in 1Q21 of the depository bank and fund administrator activities of Fideuram Bank Luxembourg, a subsidiary of Intesa Sanpaolo.


(a) See 2Q21 Highlights in this news release for a listing of notable items. Results excluding notable items are non-GAAP measures. Please refer to the Addendum included with this news release for an explanation and reconciliation of non-GAAP measures.
(b) 1Q21 Compensation and employee benefits expenses included $176 million of seasonal expenses.
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Other expenses decreased (18)% compared to 2Q20, largely driven by lower professional fees and the impact of notable items in 2Q21.(a) Other expenses decreased (10)% compared to 1Q21, largely reflecting the impact of notable items in 2Q21.(a)

Total expenses were adversely impacted by currency translation when compared to 2Q20 and 1Q21 by $49 million and $2 million, respectively.

TAXES
The effective tax rate in 2Q21 increased to 18.6% from 13.6% in 2Q20, mainly due to higher foreign tax credits in 2Q20 and lower benefits from tax credit investments. Compared to 1Q21, the effective tax rate increased from 17.2%, primarily due to lower benefits from tax credit investments.

CAPITAL AND LIQUIDITY
The following table presents preliminary estimated regulatory capital and liquidity ratios for State Street Corporation.
(As of period end)2Q211Q212Q20
Basel III Standardized Approach:
Common Equity Tier 1 ratio11.2 %10.8 %12.3 %
Tier 1 capital ratio12.9 12.4 14.6 
Total capital ratio14.3 14.0 15.7 
Basel III Advanced Approaches:
Common Equity Tier 1 ratio11.8 11.9 12.7 
Tier 1 capital ratio13.5 13.6 15.1 
Total capital ratio14.8 15.2 16.0 
Tier 1 leverage ratio5.2 5.4 6.1 
Supplementary leverage ratio6.7 7.2 8.3 
Liquidity coverage ratio104 %107 %109 %

Standardized capital ratios were binding for all periods included above.

CET1 ratio (standardized) decreased (1.1)% points compared to 2Q20, largely reflecting higher risk-weighted assets. CET1 ratio (standardized) increased 0.4% points compared to 1Q21, largely reflecting lower risk-weighted assets.

Tier 1 leverage ratio decreased (0.9)% points and (0.2)% points compared to 2Q20 and 1Q21, respectively, primarily driven by higher client deposit levels.

Liquidity coverage ratio (LCR) for State Street Corporation was approximately 104%, lower than prior periods, primarily due to higher deposits. LCR for State Street Bank and Trust was approximately 131%.






(a) See 2Q21 Highlights in this news release for a listing of notable items. Results excluding notable items are non-GAAP measures. Please refer to the Addendum included with this news release for an explanation and reconciliation of non-GAAP measures.
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INVESTOR CONFERENCE CALL AND QUARTERLY WEBSITE DISCLOSURE
State Street will webcast an investor conference call today, Friday, July 16, 2021, at 10:00 a.m. ET, available at http://investors.statestreet.com/. The conference call will also be available via telephone, at (833) 380-0399 or (236) 714-2093. The Conference ID# is 2488549.

Recorded replays of the conference call will be available on the website and by telephone at (800) 585-8367 or (416) 621-4642 beginning approximately two hours after the call's completion. The Conference ID# is 2488549.

The telephone replay will be available for approximately two weeks following the conference call. This News Release, presentation materials referred to on the conference call and additional financial information are available on State Street's website, at http://investors.statestreet.com/ under “Investor Relations--Investor News & Events" and under the title “Events and Presentations".

State Street intends to publish updates to its public disclosure regarding regulatory capital, as required by the Basel III final rule, and the liquidity coverage ratio, on a quarterly basis on its website at
http:// investors.statestreet.com/, under "Filings & Reports." Those updates will be published each quarter, during the period beginning after State Street's public announcement of its quarterly results of operations and ending on or prior to the due date under applicable bank regulatory requirements (i.e., ordinarily, ending no later than 60 days following year-end or 45 days following each other quarter-end, as applicable). For 2Q21, State Street expects to publish its updates during the period beginning today and ending on or about August 15, 2021.

State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $42.6 trillion in assets under custody and/or administration and $3.9 trillion* in assets under management as of June 30, 2021, State Street operates globally in more than 100 geographic markets and employs approximately 39,000 worldwide. For more information, visit State Street's website at www.statestreet.com.
* Assets under management as of June 30, 2021 includes approximately $64 billion of assets with respect to SPDR® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.
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IN THIS NEWS RELEASE:
•Expenses and other measures are sometimes presented excluding notable items/effects of currency translation. This is a non-GAAP presentation. See the Addendum to this News Release for an explanation and reconciliations of our non-GAAP measures.
•New asset servicing mandates, including announced front-to-back investment servicing clients, may be subject to completion of definitive agreements, approval of applicable boards and shareholders and customary regulatory approvals. New asset servicing mandates and servicing assets remaining to be installed in future periods exclude new business which has been contracted, but for which the client has not yet provided permission to publicly disclose and is not yet installed. These excluded assets, which from time to time may be significant, will be included in new asset servicing mandates and reflected in servicing assets remaining to be installed in the period in which the client provides its permission. Servicing mandates and servicing assets remaining to be installed in future periods are presented on a gross basis and therefore also do not include the impact of clients who have notified us during the period of their intent to terminate or reduce their relationship with State Street, which from time to time may be significant.
•New business in assets to be serviced is reflected in our AUC/A after we begin servicing the assets, and new business in assets to be managed is reflected in our AUM after we begin managing the assets. As such, only a portion of any new asset servicing and asset management mandates may be reflected in our AUC/A and AUM as of any particular date specified. Generally, our servicing fee revenues are affected by several factors, including changes in market valuations, client activity and asset flows, net new business and the manner in which we price our services. We provide a range of services to our clients, including core custody services, accounting, reporting and administration and middle office services, and the nature and mix of services provided affects our servicing fees. The basis for fees will differ across regions and clients. The industry in which we operate has historically faced pricing pressure, and our servicing fee revenues are also affected by such pressures today. Consequently, no assumption should be drawn as to future revenue run rate from announced servicing wins or new servicing business yet to be installed, as the amount of revenue associated with AUC/A can vary materially. Management fees generally are affected by our level of AUM and differ based upon the nature, type and investment strategy of the investment product. Management fee revenue is more sensitive to market valuations than servicing fee revenue, as a higher proportion of the underlying services provided, and the associated management fees earned, are dependent on equity and fixed-income security valuations. Additional factors, such as the relative mix of assets managed, may have a significant effect on our management fee revenue. While certain management fees are directly determined by the values of AUM and the investment strategies employed, management fees may reflect other factors, including performance fee arrangements, as well as our relationship pricing for clients.
•CRD bookings, as presented in this News Release, represent signed annual recurring revenue contract value excluding bookings with affiliates, including SSGA. CRD revenue derived from affiliate agreements is eliminated in consolidation for financial reporting purposes.
•CRD annual recurring revenue (ARR), an operating metric, is calculated by annualizing current quarter revenue and includes annualized amount of most software-enabled revenue, including revenue generated from Software-as-a-service, maintenance and support revenue, revenue from the Charles River Network's FIX Network Service (CRN), and value-added services, which are all expected to be recognized ratably over the term of client contracts. ARR excludes software-enabled brokerage revenue. ARR of $207 million, $225 million, and $230 million in 2Q20, 1Q21, and 2Q21, respectively, includes annualized intercompany revenues of $17 million, $20 million, and $21 million, respectively.
•Revenue and pre-tax income reflects the application of ASC 606. Revenue recognition under ASC 606 results in the acceleration of a significant portion of revenues for on-premises software agreements when a client goes live or renews their contract with us. The amount of revenue recognized in any given quarter will be driven in large part by client activity, including agreements that renew or are installed in that quarter.
•Unless otherwise noted, all capital ratios referenced on this News Release and elsewhere in this presentation refer to State Street Corporation, or State Street, and not State Street Bank and Trust Company, or State Street Bank. The lower of capital ratios calculated under the Basel III advanced approaches and under the Basel III standardized approach are applied in the assessment of our capital adequacy for regulatory purposes. Standardized ratios were binding for 2Q21. Refer to the Addendum included with this News Release for additional information. All capital ratios are estimated. Liquidity Coverage Ratio (LCR) is a preliminary estimate based on a quarterly daily average.
•All earnings per share amounts represent fully diluted earnings per common share.
•Return on average common shareholders' equity is determined by dividing annualized net income available to common equity by average common shareholders' equity for the period.
•Quarter-over-quarter (QoQ) is a sequential quarter comparison. Year-on-year (YoY) is the current period compared to the same period a year ago.
•"AUC/A" denotes Assets Under Custody and/or Administration; "AUC" denotes Assets Under Custody; "AUM" denotes Assets Under Management; "nm" denotes not meaningful; "EOP" denotes end of period.
•"FTE" denotes fully taxable-equivalent basis; NIM is presented on an FTE-basis. Refer to the Addendum for reconciliations of our FTE-basis presentation.
10
                    
•Industry data is provided for illustrative purposes only. It is not intended to reflect State Street's or its clients' activity and is indicative of only selected segments of the entire industry.
◦Morningstar 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.
◦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. 2Q21 data for North America (US domiciled) includes Morningstar actuals for April and May 2021 and Morningstar estimates for June 2021.
◦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. 2Q21 data for Europe is on a rolling three month basis for March 2021 through May 2021, sourced by Morningstar.


11
                    
FORWARD LOOKING STATEMENTS
This News Release (and the conference call referenced herein) contains forward-looking statements within the meaning of United States securities laws, including statements about our goals and expectations regarding our business, financial and capital condition, results of operations, strategies, the financial and market outlook, dividend and stock purchase programs, governmental and regulatory initiatives and developments, expense reduction programs, new client business, and the business environment. Forward-looking statements are often, but not always, identified by such forward-looking terminology as “outlook,” “guidance,” “expect,” “priority,” “objective,” “intend,” “plan,” “forecast,” “believe,” “anticipate,” “estimate,” “seek,” “may,” “will,” “trend,” “target,” “strategy” and “goal,” or similar statements or variations of such terms. These statements are not guarantees of future performance, are inherently uncertain, are based on current assumptions that are difficult to predict and involve a number of risks and uncertainties. Therefore, actual outcomes and results may differ materially from what is expressed in those statements, and those statements should not be relied upon as representing our expectations or beliefs as of any time subsequent to the time this News Release is first issued.
Important factors that may affect future results and outcomes include, but are not limited to:
•We are subject to intense competition, which could negatively affect our profitability;
•We are subject to significant pricing pressure and variability in our financial results and our AUC/A and AUM;
•Our development and completion of new products and services, including State Street Alpha, may involve costs and dependencies and expose us to increased risk;
•Our business may be negatively affected by our failure to update and maintain our technology infrastructure;
•The COVID-19 pandemic continues to create significant risks and uncertainties for our business;
•Acquisitions, strategic alliances, joint ventures and divestitures, and the integration, retention and development of the benefits of our acquisitions, pose risks for our business;
•The integration of CRD may be more difficult, costly or time consuming than expected, and the anticipated benefits and cost synergies may not be fully realized;
•Competition for qualified members of our workforce is intense, and we may not be able to attract and retain the highly skilled people we need to support our business;
•We could be adversely affected by geopolitical, economic and market conditions;
•We have significant International operations, and disruptions in European and Asian economies could have an adverse effect on our consolidated results of operations or financial condition;
•Our investment securities portfolio, consolidated financial condition and consolidated results of operations could be adversely affected by changes in the financial markets;
•Our business activities expose us to interest rate risk;
•We assume significant credit risk to counterparties, who may also have substantial financial dependencies with other financial institutions, and these credit exposures and concentrations could expose us to financial loss;
•Our fee revenue represents a significant portion of our consolidated revenue and is subject to decline based on, among other factors, the investment activities of our clients;
•If we are unable to effectively manage our capital and liquidity, our consolidated financial condition, capital ratios, results of operations and business prospects could be adversely affected;
•We may need to raise additional capital or debt in the future, which may not be available to us or may only be available on unfavorable terms;
•If we experience a downgrade in our credit ratings, or an actual or perceived reduction in our financial strength, our borrowing and capital costs, liquidity and reputation could be adversely affected;
•Our business and capital-related activities, including common share repurchases, may be adversely affected by capital and liquidity standards required as a result of capital stress testing;
•We face extensive and changing government regulation in the jurisdictions in which we operate, which may increase our costs and compliance risks;
•We are subject to enhanced external oversight as a result of the resolution of prior regulatory or governmental matters;
•Our businesses may be adversely affected by government enforcement and litigation;
•Any misappropriation of the confidential information we possess could have an adverse impact on our business and could subject us to regulatory actions, litigation and other adverse effects;
12
                    
•Our calculations of risk exposures, total RWA and capital ratios depend on data inputs, formulae, models, correlations and assumptions that are subject to change, which could materially impact our risk exposures, our total RWA and our capital ratios from period to period;
•Changes in accounting standards may adversely affect our consolidated financial statements;
•Changes in tax laws, rules or regulations, challenges to our tax positions and changes in the composition of our pre-tax earnings may increase our effective tax rate;
•The transition away from LIBOR may result in additional costs and increased risk exposure;
•Our control environment may be inadequate, fail or be circumvented, and operational risks could adversely affect our consolidated results of operations;
•Cost shifting to non-U.S. jurisdictions and outsourcing may expose us to increased operational risk and reputational harm and may not result in expected cost savings;
•If we, or the third parties with which we do business, experience failures, attacks or unauthorized access to our or their respective information technology systems or facilities, or disruptions to our continuous operations, this could result in significant costs, reputational damage and limits on our business activities;
•Long-term contracts expose us to pricing and performance risk;
•Our businesses may be negatively affected by adverse publicity or other reputational harm;
•We may not be able to protect our intellectual property;
•The quantitative models we use to manage our business may contain errors that could result in material harm;
•Our reputation and business prospects may be damaged if our clients incur substantial losses or are restricted in redeeming their interests in investment pools that we sponsor or manage;
•The impacts of climate change could adversely affect our business operations;
•We may incur losses as a result of unforeseen events including terrorist attacks, natural disasters, the emergence of a new pandemic or acts of embezzlement.

Other important factors that could cause actual results to differ materially from those indicated by any forward-looking statements are set forth in our 2020 Annual Report on Form 10-K and our subsequent SEC filings. We encourage investors to read these filings, particularly the sections on risk factors, for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this News Release (and the conference call referenced herein) should not by relied on as representing our expectations or beliefs as of any time subsequent to the time this News Release is first issued, and we do not undertake efforts to revise those forward-looking statements to reflect events after that time.
13
                                
Exhibit 99.2
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
June 30, 2021
Table of Contents
GAAP-Basis Financial Information:
4-Year Summary of Results2
Consolidated Financial Highlights3
Consolidated Results of Operations4
Consolidated Statement of Condition6
Average Statement of Condition - Rates Earned and Paid - Fully Taxable-Equivalent Basis7
Average Statement of Condition - Rates Earned and Paid - Fully Taxable-Equivalent Basis - Year-to-Date8
Investment Portfolio Holdings by Asset Class9
Investment Portfolio Non-U.S. Investments11
Assets Under Custody and/or Administration12
Assets Under Management13
Industry Flow Data by Asset Class14
Line of Business Information15
Allowance for Credit Losses16
Non-GAAP Financial Information:
Reconciliations of Non-GAAP Financial Information17
Reconciliation of Pre-tax Margin Excluding Notable Items19
Reconciliation of Notable Items20
Reconciliations of Constant Currency FX Impacts21
Capital:
Reconciliation of Tangible Common Equity Ratio22
Regulatory Capital23
Reconciliations of Supplementary Leverage Ratios24
This financial information should be read in conjunction with State Street's news release dated July 16, 2021.

                                
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
4-YEAR SUMMARY OF RESULTS
(Dollars in millions, except per share amounts, or where otherwise noted)2017201820192020
Year ended December 31:
Total fee revenue$9,001 $9,454 $9,147 $9,499 
Net interest income2,304 2,671 2,566 2,200 
Other income(39)6 43 4 
Total revenue11,266 12,131 11,756 11,703 
Provision for credit losses2 15 10 88 
Total expenses8,269 9,015 9,034 8,716 
Income before income tax expense2,995 3,101 2,712 2,899 
Income tax expense839 508 470 479 
Net income2,156 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 assets219,450 223,385 223,334 269,334 
Total deposits163,808 161,408 158,262 193,225 
Ratios and other metrics:
Return on average common equity10.5 %12.1 %9.4 %10.0 %
Pre-tax margin26.6 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 basis1.29 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 legal 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)1Q202Q203Q204Q201Q212Q212Q21
vs.
2Q20		2Q21
vs.
1Q21
Income statement
Fee revenue$2,399 $2,378 $2,306 $2,416 $2,483 $2,514 5.7 %1.2 %
Net interest income664 559 478 499 467 467 (16.5)— 
Other income2 — — 2 — 53 nmnm
Total revenue3,065 2,937 2,784 2,917 2,950 3,034 3.3 2.8 
Provision for credit losses(1)
36 52 — — (9)(15)nm66.7
Total expenses2,255 2,082 2,103 2,276 2,332 2,111 1.4 (9.5)
Income before income tax expense774 803 681 641 627 938 16.8 49.6 
Income tax expense140 109 126 104 108 175 60.6 62.0 
Net income634 694 555 537 519 763 9.9 47.0 
Net income available to common shareholders$580 $662 $517 $498 $489 $728 10.0 48.9 
Per common share:
Diluted earnings per common share$1.62 $1.86 $1.45 $1.39 $1.37 $2.07 11.3 51.1 
Average diluted common shares outstanding (in thousands)357,993 356,413 357,168 357,719 355,690 351,582 (1.4)(1.2)
Cash dividends declared per common share$.52 $.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 82.28 29.5 (2.1)
Average for the quarter:
Investment securities$97,560 $116,626 $110,448 $112,018 $107,809 $111,481 (4.4)3.4 
Total assets251,181 284,688 264,384 277,055 296,328 308,195 8.3 4.0 
Total deposits180,160 197,069 189,226 206,343 226,232 242,310 23.0 7.1 
Securities on loan:
Average securities on loan$378,200 $377,344 $375,296 $404,022 $429,991 $457,604 21.3 6.4 
End-of-period securities on loan 387,580 381,232 395,075 457,985 451,913 437,094 14.7 (3.3)
Ratios and other metrics:
Return on average common equity10.9 %12.1 %8.9 %8.4 %8.4 %12.6 %50 bps420 bps
Pre-tax margin25.3 27.3 24.5 22.0 21.3 30.9 360 960 
Pre-tax margin, excluding notable items(2)
25.6 27.7 24.7 26.9 22.6 29.7 200 710 
Net interest margin, fully taxable-equivalent basis1.30 0.93 0.85 0.84 0.75 0.71 (22)(4)
Common equity tier 1 ratio(3)(4)
10.7 12.3 12.4 12.3 10.8 11.2 (110)40 
Tier 1 capital ratio(3)(4)
12.9 14.6 14.7 14.4 12.4 12.9 (170)50 
Total capital ratio(3)(4)
14.1 15.7 15.7 15.3 14.0 14.3 (140)30 
Tier 1 leverage ratio(3)
6.1 6.1 6.6 6.4 5.4 5.2 (90)(20)
Supplementary leverage ratio(3)
5.4 8.3 8.2 8.1 7.2 6.7 (160)(50)
Assets under custody and/or administration (in billions)$31,864 $33,515 $36,643 $38,791 $40,263 $42,597 27.1 %5.8 %
Assets under management (in billions)2,689 3,054 3,148 3,467 3,591 3,897 27.6 8.5 
(1) In accordance with ASU 2016-13, the provision for credit losses includes the provision on funded and unfunded commitments as well as HTM securities.
(2) Notable items include acquisition and restructuring costs, repositioning charges and legal 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.
(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)1Q202Q203Q204Q201Q212Q212Q21
vs.
2Q20		2Q21
vs.
1Q21		20202021YTD2021
vs.
YTD2020
Fee revenue:
Servicing fees$1,287 $1,272 $1,301 $1,307 $1,371 $1,399 10.0 %2.0 %$2,559 $2,770 8.2 %
Management fees(1)
464 444 479 493 493 504 13.5 2.2 908 997 9.8 
Foreign exchange trading services(1)
444 325 270 324 346 286 (12.0)(17.3)769 632 (17.8)
Securities finance92 92 84 88 99 109 18.5 10.1 184 208 13.0 
Software and processing fees112 245 172 204 174 216 (11.8)24.1 357 390 9.2 
Total fee revenue2,399 2,378 2,306 2,416 2,483 2,514 5.7 1.2 4,777 4,997 4.6 
Net interest income:
Interest income868 674 520 513 471 467 — (30.7)(0.8)1,542 938 (39.2)
Interest expense204 115 42 14 4 — nmnm319 4 (98.7)
Net interest income664 559 478 499 467 467 (16.5)— 1,223 934 (23.6)
Other income:
Gains (losses) related to investment securities, net2 — — 2 — — ——2 — nm
Other income— — — — — 53 nmnm— 53 nm
Total other income2 — — 2 — 53 nmnm2 53 nm
Total revenue3,065 2,937 2,784 2,917 2,950 3,034 3.3 2.8 6,002 5,984 (0.3)
Provision for credit losses36 52 — — (9)(15)nm66.788 (24)nm
Expenses:
Compensation and employee benefits1,208 1,051 1,062 1,129 1,242 1,077 2.5 (13.3)2,259 2,319 2.7 
Information systems and communications385 376 395 394 421 398 5.9 (5.5)761 819 7.6 
Transaction processing services254 233 234 257 270 263 12.9 (2.6)487 533 9.4 
Occupancy109 109 109 162 109 100 (8.3)(8.3)218 209 (4.1)
Acquisition and restructuring costs11 12 15 12 10 11 (8.3)10.0 23 21 (8.7)
Amortization of other intangible assets58 58 59 59 58 63 8.6 8.6 116 121 4.3 
Other230 243 229 263 222 199 (18.1)(10.4)473 421 (11.0)
Total expenses2,255 2,082 2,103 2,276 2,332 2,111 1.4 (9.5)4,337 4,443 2.4 
Income before income tax expense774 803 681 641 627 938 16.8 49.6 1,577 1,565 (0.8)
Income tax expense140 109 126 104 108 175 60.6 62.0 249 283 13.7 
Net income$634 $694 $555 $537 $519 $763 9.9 47.0 $1,328 $1,282 (3.5)






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)1Q202Q203Q204Q201Q212Q212Q21
vs.
2Q20		2Q21
vs.
1Q21		20202021YTD2021
vs.
YTD2020
Adjustments to net income:
Dividends on preferred stock(2)(3)
$(53)$(32)$(38)$(39)$(30)$(34)6.3 %13.3 %$(85)$(64)(24.7)%
Earnings allocated to participating securities(1)— — — — (1)nmnm(1)(1)—
Net income available to common shareholders$580 $662 $517 $498 $489 $728 10.0 48.9 $1,242 $1,217 (2.0)
Per common share:
Basic earnings$1.64 $1.88 $1.47 $1.41 $1.39 $2.11 12.2 51.8 $3.52 $3.49 (0.9)
Diluted earnings1.62 1.86 1.45 1.39 1.37 2.07 11.3 51.1 3.48 3.44 (1.1)
Average common shares outstanding (in thousands):
Basic353,746 352,157 352,586 352,974 350,743 345,889 (1.8)(1.4)352,952 348,303 (1.3)
Diluted357,993 356,413 357,168 357,719 355,690 351,582 (1.4)(1.2)357,028 353,434 (1.0)
Cash dividends declared per common share $.52 $.52 $.52 $.52 $.52 $.52 — — $1.04 $1.04 — 
Closing price per share of common stock (as of quarter end) 53.27 63.55 59.33 72.78 84.01 82.28 29.5 (2.1)63.55 82.28 29.5 
Financial ratios:
Effective tax rate18.1 %13.6 %18.5 %16.1 %17.2 %18.6 %500 bps140 bps15.8 %18.1 %230 bps
Return on average common equity10.9 12.1 8.9 8.4 8.4 12.6 50 420 11.5 10.5 (100)
Return on tangible common equity(4)
18.7 19.2 16.8 15.6 13.4 17.3(190)390 

19.617.0(260)
Pre-tax margin25.3 27.3 24.5 22.0 21.3 30.9 360 960 26.3 26.2 (10)
Pre-tax margin, excluding notable items(5)

25.6

27.7

24.7

26.922.6 29.7 200 710 

26.726.2(50)
(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, repositioning charges and legal 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, 2020June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 20212Q21
vs.
2Q20		2Q21
vs.
1Q21
Assets:
Cash and due from banks$4,932 $3,685 $4,848 $3,467 $4,552 $4,619 25.3 %1.5 %
Interest-bearing deposits with banks147,735 90,199 75,967 116,960 107,554 113,347 25.7 5.4 
Securities purchased under resale agreements1,037 4,026 4,499 3,106 5,238 3,997 (0.7)(23.7)
Trading account assets872 883 840 815 786 721 (18.3)(8.3)
Investment securities:
Investment securities available-for-sale55,843 56,231 61,780 59,048 60,512 67,497 20.0 11.5 
Investment securities held-to-maturity purchased under money market liquidity facility(1)
26,808 11,257 4,824 3,299 201 — nmnm
Investment securities held-to-maturity(2)
41,150 41,848 45,394 48,929 46,261 45,182 8.0 (2.3)
Total investment securities123,801 109,336 111,998 111,276 106,974 112,679 3.1 5.3 
Loans32,379 26,860 27,035 27,925 31,585 30,704 14.3 (2.8)
Allowance for loan losses(3)
97 141 134 122 118 100 (29.1)(15.3)
Loans, net32,282 26,719 26,901 27,803 31,467 30,604 14.5 (2.7)
Premises and equipment, net(4)
2,225 2,212 2,193 2,154 2,143 2,169 (1.9)1.2 
Accrued interest and fees receivable3,274 3,235 3,291 3,105 3,302 3,358 3.8 1.7 
Goodwill7,506 7,538 7,607 7,683 7,629 7,629 1.2 — 
Other intangible assets1,963 1,914 1,870 1,827 2,007 1,933 1.0 (3.7)
Other assets36,900 30,495 32,061 36,510 45,233 45,472 49.1 0.5 
Total assets$362,527 $280,242 $272,075 $314,706 $316,885 $326,528 16.5 3.0 
Liabilities:
Deposits:
   Non-interest-bearing$69,404 $42,132 $41,183 $49,439 $57,079 $61,742 46.5 8.2 
   Interest-bearing - U.S.110,106 87,197 85,434 102,331 108,372 111,291 27.6 2.7 
   Interest-bearing - Non-U.S.77,594 71,133 70,896 88,028 79,442 90,936 27.8 14.5 
Total deposits(5)
257,104 200,462 197,513 239,798 244,893 263,969 31.7 7.8 
Securities sold under repurchase agreements5,373 3,513 2,430 3,413 587 658 (81.3)12.1 
Short-term borrowings under money market liquidity facility25,665 11,261 4,819 3,302 200 — nmnm
Other short-term borrowings4,835 912 5,838 685 642 635 (30.4)(1.1)
Accrued expenses and other liabilities30,151 23,634 22,064 27,503 31,722 23,067 (2.4)(27.3)
Long-term debt15,538 15,587 13,853 13,805 13,836 13,032 (16.4)(5.8)
Total liabilities338,666 255,369 246,517 288,506 291,880 301,361 18.0 3.2 
Shareholders' equity:
Preferred stock, no par, 3,500,000 shares authorized:
Series D, 7,500 shares issued and outstanding742 742 742 742 742 742 — — 
Series F, 2,500 shares issued and outstanding742 742 742 742 247 247 (66.7)— 
Series G, 5,000 shares issued and outstanding493 493 493 493 493 493 — — 
Series H, 5,000 shares issued and outstanding494 494 494 494 494 494 — — 
Common stock, $1 par, 750,000,000 shares authorized(6)(7)
504 504 504 504 504 504 — — 
Surplus10,155 10,179 10,192 10,205 10,227 10,246 0.7 0.2 
Retained earnings22,315 22,794 23,128 23,442 23,751 24,300 6.6 2.3 
Accumulated other comprehensive income (loss)(920)(430)(111)187 (418)(422)(1.9)1.0
Treasury stock, at cost(8)
(10,664)(10,645)(10,626)(10,609)(11,035)(11,437)7.4 3.6 
Total shareholders' equity23,861 24,873 25,558 26,200 25,005 25,167 1.2 0.6 
Total liabilities and equity$362,527 $280,242 $272,075 $314,706 $316,885 $326,528 16.5 3.0 
(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 45,685 
(3) Total allowance for credit losses including off-balance sheet commitments
124 163 153 148 135 121 
(4) Accumulated depreciation for premises and equipment
4,459 4,591 4,744 4,825 4,960 5,108 
(5) Average total deposits
180,160 197,069 189,226 206,343 226,232 242,310 
(6) Common stock shares issued
503,879,642 503,879,642 503,879,642 503,879,642 503,879,642 503,879,642 
(7) Total common shares outstanding
351,943,858 352,383,250 352,797,695 353,156,279 348,032,982 343,503,114 
(8) Treasury stock shares
151,935,784 151,496,392 151,081,947 150,723,363 155,846,660 160,376,528 
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
1Q202Q203Q204Q201Q212Q212Q21
vs.
2Q20		2Q21
vs.
1Q21
(Dollars in millions; fully-taxable equivalent basis)Average balanceAverage ratesAverage balanceAverage ratesAverage balanceAverage ratesAverage balanceAverage ratesAverage balanceAverage ratesAverage balanceAverage ratesAverage balanceAverage 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)%$99,438 (0.02)%14.6 %4.4 %
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 3,958 0.28 18.4 (13.4)
Trading account assets915 — 877 — 900 — 820 — 800 — 729 — (16.9)(8.9)
Investment securities:
Investment securities available-for-sale54,242 1.59 57,462 1.31 59,593 1.02 60,799 1.00 59,191 0.95 66,225 0.88 15.3 11.9 
Investment securities held-to-maturity41,273 2.62 40,127 2.32 43,367 1.77 47,007 1.60 47,356 1.54 45,243 1.47 12.7 (4.5)
Investment securities held-to-maturity purchased under money market liquidity facility2,045 1.57 19,037 1.49 7,488 1.32 4,212 1.35 1,262 1.35 13 1.28 (99.9)(99.0)
Total investment securities
97,560 2.03 116,626 1.69 110,448 1.33 112,018 1.27 107,809 1.21 111,481 1.12 (4.4)3.4 
Loans(3)
28,468 2.62 27,369 2.30 25,974 2.13 28,298 2.05 28,025 2.05 29,471 2.14 7.7 5.2 
Other interest-earning assets10,764 1.70 9,831 0.13 11,586 0.10 12,824 0.10 18,296 0.10 20,939 0.07 113.0 14.4 
Total interest-earning assets206,632 1.70 244,789 1.12 225,806 0.92 238,198 0.86 254,733 0.76 266,016 0.71 8.7 4.4 
Cash and due from banks3,856 3,480 3,652 4,403 4,529 5,594 60.7 23.5 
Other assets40,693 36,419 34,926 34,454 37,066 36,585 0.5 (1.3)
Total assets$251,181 $284,688 $264,384 $277,055 $296,328 $308,195 8.3 4.0 
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 %$110,269 — %21.0 9.2 
Non-U.S.(4)
64,340 (0.20)66,977 (0.36)69,514 (0.37)74,324 (0.40)78,433 (0.37)83,248 (0.32)24.3 6.1 
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)193,517 (0.14)22.4 7.9 
Securities sold under repurchase agreements1,773 0.55 3,394 0.03 2,891 0.08 2,402 0.07 1,017 0.05 477 (0.02)(85.9)(53.1)
Short-term borrowings under money market liquidity facility2,187 1.11 19,036 1.23 7,449 1.24 4,209 1.23 1,264 1.21 13 1.25 (99.9)(99.0)
Other short-term borrowings2,960 1.32 3,073 0.66 1,724 0.44 1,164 0.25 764 0.14 893 0.27 (70.9)16.9 
Long-term debt13,288 2.64 15,574 2.45 14,794 1.86 13,830 1.75 13,819 1.74 13,461 1.60 (13.6)(2.6)
Other interest-bearing liabilities3,434 3.55 3,461 1.07 2,764 1.28 3,050 1.20 4,848 0.73 5,682 0.80 64.2 17.2 
Total interest-bearing liabilities168,229 0.49 202,612 0.23 184,568 0.09 191,941 0.03 201,119 0.01 214,043 — 5.6 6.4 
Non-interest bearing deposits35,573 38,995 34,280 39,057 46,825 48,793 25.1 4.2 
Other liabilities23,052 18,678 20,050 20,087 22,423 20,131 7.8 (10.2)
Preferred shareholders' equity2,861 2,472 2,472 2,472 2,378 1,976 (20.1)(16.9)
Common shareholders' equity21,466 21,931 23,014 23,498 23,583 23,252 6.0 (1.4)
Total liabilities and shareholders' equity$251,181 $284,688 $264,384 $277,055 $296,328 $308,195 8.3 4.0 
Excess of rate earned over rate paid1.21 %0.89 %0.83 %0.84 %0.75 %0.71 %
Net interest margin1.30 %0.93 %0.85 %0.84 %0.75 %0.71 %
Net interest income, fully taxable-equivalent basis$668 $564 $482 $503 $471 $470 
Tax-equivalent adjustment(4)(5)(4)(4)(4)(3)
Net interest income, GAAP-basis(4)
$664 $559 $478 $499 $467 $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 and $62 billion in the first and second quarters 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% and 0.02% in the first and second quarters 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 and $29,352 million in the first and second quarters 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 and ($16) million in the first and second quarters 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)% and (0.10)% for the first and second quarters 2021.
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 2020 and 2021, adjusted for applicable state income taxes, net of related federal benefit.
Year-to-Date% Change
20202021YTD2021 vs YTD2020
(Dollars in millions; fully-taxable equivalent basis)Average balanceAverage ratesAverage balanceAverage ratesAverage balance
Assets:
Interest-bearing deposits with banks$76,931 0.22 %$97,348 (0.03)%26.5 %
Securities purchased under resale agreements(2)
2,574 6.96 4,261 0.60 65.5 
Trading account assets896 — 764 — (14.7)
Investment securities:
Investment securities available-for-sale55,852 1.45 62,728 0.91 12.3 
Investment securities held-to-maturity40,700 2.47 46,294 1.51 13.7 
Investment securities held-to-maturity purchased under money market liquidity facility10,541 1.49 634 1.35 (94.0)
Total investment securities
107,093 1.84 109,656 1.17 2.4 
Loans(3)
27,919 2.46 28,752 2.10 3.0 
Other interest-earning assets10,298 0.95 19,625 0.09 90.6 
Total interest-earning assets225,711 1.38 260,406 0.73 15.4 
Cash and due from banks3,668 5,065 38.1 
Other assets38,556 36,823 (4.5)
Total assets$267,935 $302,294 12.8 
Liabilities:
Interest-bearing deposits:
U.S.$85,672 0.25 $105,647 0.01 23.3 
Non-U.S.(4)
65,658 (0.28)80,854 (0.34)23.1 
Total interest-bearing deposits(4)
151,330 0.02 186,501 (0.15)23.2 
Securities sold under repurchase agreements2,584 0.21 745 0.02 (71.2)
Short-term borrowings under money market liquidity facility10,612 1.22 635 1.21 (94.0)
Other short-term borrowings3,017 0.98 829 0.21 (72.5)
Long-term debt14,431 2.53 13,639 1.67 (5.5)
Other interest-bearing liabilities3,446 2.31 5,268 0.77 52.9 
Total interest-bearing liabilities185,420 0.34 207,617 — 12.0 
Non-interest bearing deposits37,284 47,815 28.2 
Other liabilities20,867 21,269 1.9 
Preferred shareholders' equity2,666 2,177 (18.3)
Common shareholders' equity21,698 23,416 7.9 
Total liabilities and shareholders' equity$267,935 $302,294 12.8 
Excess of rate earned over rate paid1.04 %0.73 %
Net interest margin1.10 %0.73 %
Net interest income, fully taxable-equivalent basis$1,232 $941 
Tax-equivalent adjustment(9)(7)
Net interest income, GAAP-basis(4)
$1,223 $934 
(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 $114 billion and $74 billion as of June 30, 2020 and 2021, respectively. Excluding the impact of netting, the average interest rates would be approximately 0.15% and 0.03% for the six months ended June 30, 2020 and 2021, respectively.
(3) Average loans are presented on a gross basis. Average loans net of expected credit losses as of June 30, 2021 and June 30, 2020 was approximately $28,632 million and $27,838 million, respectively.
(4) Average rates include the impact of FX swap expense of approximately ($19) million and ($37) million for the six months ended June 30, 2020 and 2021, respectively. Average rates for total interest-bearing deposits excluding the impact of FX swap expense were 0.04% and (0.10)% for the six months ended June 30, 2020 and 2021, respectively.
8    
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO HOLDINGS BY ASSET CLASS
Quarters
1Q202Q203Q204Q201Q212Q21
(Dollars in billions, or where otherwise noted)Average BalanceAverage RateAverage BalanceAverage RateAverage BalanceAverage RateAverage BalanceAverage RateAverage BalanceAverage RateAverage BalanceAverage Rate
Available-for-sale investment securities:
Government & agency securities$21.6 0.78 %$24.9 0.57 %$27.5 0.49 %$28.7 0.46 %$28.5 0.44 %$32.5 0.53 %
Asset-backed securities6.4 1.48 5.9 1.30 6.5 0.95 7.4 0.89 7.9 0.86 9.1 0.84 
Student loans0.5 2.61 0.4 2.32 0.4 1.26 0.3 1.18 0.3 0.94 0.3 1.19 
Credit cards0.2 1.61 0.1 1.29 0.1 0.96 0.1 0.94 0.1 0.88 0.1 0.87 
Auto & equipment1.0 0.18 0.9 0.12 0.9 0.08 1.1 — 1.1 0.03 1.3 (0.01)
Non-U.S. residential mortgage backed securities1.8 1.17 1.7 0.89 1.8 0.83 1.9 0.82 2.0 0.80 2.1 0.77 
Collateralized loan obligation2.7 1.98 2.7 1.84 3.1 1.26 3.7 1.21 4.2 1.16 5.2 1.10 
Other0.2 0.17 0.1 0.18 0.2 0.09 0.3 (0.01)0.2 (0.12)0.1 (0.09)
Mortgage-backed securities15.3 2.76 16.1 2.25 14.4 1.91 13.1 1.76 10.3 1.77 10.7 1.53 
Agency MBS15.3 2.76 16.1 2.25 14.4 1.91 13.1 1.76 10.3 1.77 10.7 1.53 
Non-agency MBS— — — — — — — — — — — — 
CMBS2.8 2.29 2.8 1.64 3.0 1.05 3.4 0.94 3.8 0.78 5.6 0.53 
Corporate bonds4.7 1.94 4.4 1.81 5.0 1.54 5.4 1.38 5.4 1.33 5.3 1.29 
Covered bonds0.6 0.48 0.5 0.32 0.5 0.25 0.5 0.23 0.5 0.22 0.3 0.30 
Municipal bonds0.8 2.67 0.8 2.65 0.9 2.56 0.8 2.59 0.8 2.59 0.8 2.61 
Clipper tax-exempt bonds0.9 3.91 0.9 3.87 0.9 3.81 0.8 3.81 0.7 3.76 0.7 3.80 
Other1.1 1.45 1.2 1.12 0.9 0.84 0.7 1.01 1.3 0.93 1.2 0.94 
Total available-for-sale portfolio$54.2 1.70 $57.5 1.35 $59.6 1.08 $60.8 0.98 $59.2 0.91 $66.2 0.88 
1Q202Q203Q204Q201Q212Q21
(Dollars in billions, or where otherwise noted)Average BalanceAverage RateAverage BalanceAverage RateAverage BalanceAverage RateAverage BalanceAverage RateAverage BalanceAverage RateAverage BalanceAverage Rate
Held-to-maturity investment securities:
Government & agency securities$10.3 1.97 %$8.9 2.01 %$8.1 2.04 %$6.5 2.15 %6.0 2.10 %5.8 1.97 %
Asset-backed securities4.2 2.67 4.4 1.75 4.5 1.26 5.0 1.30 5.0 1.31 5.1 1.22 
Student loans3.8 2.58 4.1 1.62 4.2 1.12 4.7 1.13 4.7 1.11 4.8 1.05 
Non-U.S. residential mortgage backed securities0.4 3.96 0.3 3.34 0.3 3.05 0.3 3.95 0.3 4.56 0.3 4.14 
Other— 2.69 — 1.51 — 1.20 — 1.17 — 1.13 — 1.11 
Mortgage-backed securities24.1 2.75 23.3 2.39 26.7 1.86 30.7 1.56 31.3 1.51 29.5 1.38 
Agency MBS24.0 2.74 23.2 2.38 26.6 1.85 30.6 1.55 31.2 1.51 29.4 1.37 
Non-agency MBS0.1 6.25 0.1 4.22 0.1 4.40 0.1 4.68 0.1 4.21 0.1 4.44 
CMBS2.7 2.31 3.5 1.86 4.1 1.66 4.8 1.56 5.0 1.54 4.9 1.61 
Held-to-maturity under money market liquidity facility2.0 1.60 19.0 1.48 7.5 1.33 4.2 1.35 1.3 1.33 — 1.28 
Total held-for-maturity portfolio$43.3 2.51 $59.1 1.96 $50.9 1.74 $51.2 1.60 $48.6 1.54 $45.3 1.47 
Total investment securities$97.6 2.06 $116.6 1.66 $110.5 1.39 $112.0 1.26 $107.8 1.20 $111.5 1.12 
9    
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO HOLDINGS BY ASSET CLASS (continued)
Ratings
(Dollars in billions, or where otherwise noted)UST/AGYAAAAAABBB<BBBNRFair Value% Total
Net Unrealized Pre-tax MTM Gain/(Loss)
(In millions)(1)
Fixed Rate/
Floating Rate(2)
Available-for-sale investment securities:
Government & agency securities38 %26 %23 %6 %5 %1 %1 %$33.6 49.8 %$140 95% / 5%
Asset-backed securities— 95 5 — — — — 9.5 14.1 23 0% / 100%
Student loans— 32 68 — — — — 0.3 2.7 4 
Credit cards— 100 — — — — — 0.1 1.0 2 
Auto & equipment— 85 15 — — — — 1.4 14.3 1 
Non-U.S. residential mortgage backed securities— 96 4 — — — — 2.0 21.1 13 
Collateralized loan obligation— 100 — — — — — 5.6 59.0 2 
Other— 67 33 — — — — 0.2 1.9 1 
Mortgage-backed securities100 — — — — — — 10.2 15.1 170 99% / 1%
Agency MBS100 — — — — — — 10.2 100.0 170 
Non-agency MBS— — — — — — — — — — 
CMBS99 1 — — — — — 6.1 9.0 26 6% / 94%
Corporate bonds— — 10 37 53 — — 5.1 7.6 70  98% / 2%
Covered bonds— 100 — — — — — 0.3 0.4 3  26% / 74%
Municipal bonds— 25 74 1 — — — 0.8 1.2 53  100% / 0%
Clipper tax-exempt bonds— 14 62 17 7 — — 0.7 1.0 14  0% / 100%
Other— 2 57 41 — — — 1.2 1.8 (11) 88% / 12%
Total available-for-sale portfolio43 %27 %16 %7 %7 %— %— %$67.5 100.0 %$488  73% / 27%
Fair Value$29.1 $18.4 $10.5 $4.7 $4.4 $0.2 $0.2 
UST/AGYAAAAAABBB<BBBNRAmortized Cost% Total
Net Unrealized Pre-tax MTM Gain/(Loss)
(In millions)(2)
Fixed Rate/
Floating Rate(3)
Held-to-maturity investment securities:
Government & agency securities75 %20 %5 %— %— %— %— %$6.3 13.9 %$51  100% / 0%
Asset-backed securities— 30 65 1 3 1 — 5.1 11.3 99  6% / 94%
Student loans— 31 67 — 2 — — 4.9 95.3 39 
Non-U.S. residential mortgage backed securities— 24 28 12 14 20 2 0.2 4.7 60 
Other— — — 100 — — — — — — 
Mortgage-backed securities100 — — — — — — 28.9 63.9 397  100% / 0%
Agency MBS100 — — — — — — 28.8 99.7 369 
Non-agency MBS— 1 7 8 19 43 22 0.1 0.3 28 
CMBS93 7 — — — — — 4.9 10.9 22  89% / 11%
Held-to-maturity under money market liquidity facility— — — — — — — — — —  0% / 0%
Total held-for-maturity portfolio84 %8 %8 %— %— %— %— %$45.2 100.0 %$569  88% / 12%
Amortized Cost$38.0 $3.2 $3.6 $0.1 $0.2 $0.1 $— 
Total investment securities$112.7 79% / 21%
(1) At June 30, 2021, the after-tax unrealized MTM gain/(loss) includes after-tax unrealized gain on securities available-for-sale of $361 million, after-tax unrealized gain on securities held-to-maturity of $371 million and after-tax unrealized loss primarily related to securities previously transferred from available-for-sale to held-to-maturity of $50 million.
(2) At June 30, 2021, fixed-to-floating rate securities had a book value of approximately $127 million or 0.11% of the total portfolio.
10    
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 BondsOther
Available-for-sale:
Canada$4.0  AA $3.0 $— $— $0.3 $— $0.7 
France2.5  AA 1.2 — 0.9 0.2 0.2 — 
Australia2.3  AAA 0.5 1.1 — 0.2 — 0.5 
Germany2.1  AA 1.2 — 0.8 0.1 — — 
United Kingdom1.4  AA 0.2 0.5 0.2 0.5 — — 
Japan1.4  A 1.4 — — — — — 
Austria1.3  AA 1.3 — — — — — 
Netherlands1.3  AA 0.4 0.4 0.1 0.4 — — 
Spain1.3  BBB 1.2 — 0.1 — — — 
Belgium1.1  AA 1.1 — — — — — 
Finland0.9  AA 0.8 — 0.1 — — — 
Italy0.9  A 0.6 0.1 0.2 — — — 
Ireland0.8  A 0.8 — — — — — 
Brazil0.2  BB 0.2 — — — — — 
Other7.1 AAA6.7 — 0.1 0.2 0.1 — 
Total Non-U.S. Investments(3)
$28.6 $20.6 $2.1 $2.5 $1.9 $0.3 $1.2 
U.S. Investments38.9 
Total available-for-sale$67.5 
Investment Securities
(Dollars in billions)Amortized CostAverage Rating
Gov't/Agency(1)(2)
ABS
FRMBS		ABS
All Other		Corporate BondsCovered BondsOther
Held-to-maturity:
Singapore$0.2 AAA$0.2 $— $— $— $— $— 
Australia0.1 A— 0.1 — — — — 
Spain0.1 A— 0.1 — — — — 
Other1.4 AAA1.4 — — — — — 
Total Non-U.S. Investments(3)
$1.8 $1.6 $0.2 $— $— $— $— 
U.S. Investments43.4 
Total held-for-maturity$45.2 
Total Investment Portfolio$112.7 
(1) Sovereign debt is reflected in the government / agency column.
(2) As of June 30, 2021, other non-U.S. investments include $6.4 billion supranational bonds in AFS securities and $1.4 billion supranational bonds in HTM securities.
(3) Country of collateral used except for corporates where country of issuer is used.

11    
        
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ASSETS UNDER CUSTODY AND/OR ADMINISTRATION
Quarters% Change
(Dollars in billions)1Q202Q203Q204Q201Q212Q212Q21
vs.
2Q20		2Q21
vs.
1Q21
Assets Under Custody and/or Administration
By Product Classification(1):
Mutual funds$7,301 $8,265 $9,183 $9,810 $10,439 $10,873 31.6 %4.2 %
Collective funds, including ETFs10,529 11,230 12,204 13,387 14,052 15,048 34.0 7.1 
Pension products6,723 6,689 7,317 7,594 7,843 8,291 23.9 5.7 
Insurance and other products7,311 7,331 7,939 8,000 7,929 8,385 14.4 5.8 
Total Assets Under Custody and/or Administration$31,864 $33,515 $36,643 $38,791 $40,263 $42,597 27.1 5.8 
By Financial Instrument:
Equities
$16,267 $18,190 $20,094 $21,626 $22,825 $24,792 36.3 8.6 
Fixed-income
11,096 11,342 12,403 12,834 13,022 13,079 15.3 0.4 
Short-term and other investments
4,501 3,983 4,146 4,331 4,416 4,726 18.7 7.0 
Total Assets Under Custody and/or Administration$31,864 $33,515 $36,643 $38,791 $40,263 $42,597 27.1 5.8 
By Geographic Location(2):
Americas$22,787 $24,375 $26,666 $28,245 $29,530 $31,280 28.3 5.9 
Europe/Middle East/Africa7,112 7,155 7,675 8,101 8,256 8,716 21.8 5.6 
Asia/Pacific1,965 1,985 2,302 2,445 2,477 2,601 31.0 5.0 
Total Assets Under Custody and/or Administration$31,864 $33,515 $36,643 $38,791 $40,263 $42,597 27.1 5.8 
Assets Under Custody(3)
By Product Classification(1):
Mutual funds$6,659 $7,532 $7,838 $8,410 $8,811 $9,188 22.0 4.3 
Collective funds, including ETFs8,784 9,460 10,210 11,230 11,895 12,785 35.1 7.5 
Pension products5,386 5,354 5,852 6,085 6,283 6,671 24.6 6.2 
Insurance and other products2,983 3,053 3,433 3,327 3,145 3,303 8.2 5.0 
Total Assets Under Custody$23,812 $25,399 $27,333 $29,052 $30,134 $31,947 25.8 6.0 
By Geographic Location(2):
Americas$17,701 $19,226 $20,450 $21,822 $22,715 $24,015 24.9 5.7 
Europe/Middle East/Africa4,666 4,714 5,212 5,465 5,564 5,957 26.4 7.1 
Asia/Pacific1,445 1,459 1,671 1,765 1,855 1,975 35.4 6.5 
Total Assets Under Custody$23,812 $25,399 $27,333 $29,052 $30,134 $31,947 25.8 6.0 
(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.
12    
        
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ASSETS UNDER MANAGEMENT
Quarters% Change
(Dollars in billions)1Q202Q203Q204Q201Q212Q212Q21
vs.
2Q20		2Q21
vs.
1Q21
Assets Under Management
By Asset Class and Investment Approach:
Equity:
Active$69 $77 $82 $85 $84 $83 7.8 %(1.2)%
Passive1,492 1,768 1,876 2,086 2,198 2,378 34.5 8.2 
Total Equity(1)
1,561 1,845 1,958 2,171 2,282 2,461 33.4 7.8 
Fixed-Income:
Active86 88 85 90 91 100 13.6 9.9 
Passive392 405 424 459 463 510 25.9 10.2 
Total Fixed-Income(1)
478 493 509 549 554 610 23.7 10.1 
Cash(1)(2)
348 376 321 349 372 381 1.3 2.4 
Multi-Asset-Class Solutions:
Active39 41 40 40 34 35 (14.6)2.9 
Passive101 116 124 146 155 172 48.3 11.0 
Total Multi-Asset-Class Solutions(1)
140 157 164 186 189 207 31.8 9.5 
Alternative Investments(3):
Active28 28 28 39 27 63 125.0 133.3 
Passive134 155 168 173 167 175 12.9 4.8 
Total Alternative Investments(1)
162 183 196 212 194 238 30.1 22.7 
Total Assets Under Management$2,689 $3,054 $3,148 $3,467 $3,591 $3,897 27.6 8.5 
By Geographic Location:
North America$1,843 $2,102 $2,163 $2,411 $2,512 $2,749 30.8 9.4 
Europe/Middle East/Africa418 464 483 512 530 570 22.8 7.5 
Asia/Pacific428 488 502 544 549 578 18.4 5.3 
Total Assets Under Management$2,689 $3,054 $3,148 $3,467 $3,591 $3,897 27.6 8.5 
(1) The implementation of an improved internal data management system for product level data in the first quarter of 2021 resulted in some AUM reclassifications between the categories presented for prior periods to align with the current presentation. 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)(3)
$58 $77 $88 $83 $69 $73 (5.2)%5.8 %
Equity(3)
473 570 605 708 777 844 48.1 8.6 
Fixed-Income(3)
98 107 108 115 122 128 19.6 4.9 
Multi-Asset(3)
— — — — — 1 nmnm
Total Exchange-Traded Funds$629 $754 $801 $906 $968 $1,046 38.7 8.1 
(1) Exchange-traded funds are a component of assets under management presented above.
(2) 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.
(3) The implementation of an improved internal data management system for product level data in the first quarter of 2021 resulted in some AUM reclassifications between the categories presented for prior periods to align with the current presentation. There was no impact to the total level of reported AUM.
nm Denotes not meaningful
13    
        
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INDUSTRY FLOW DATA BY ASSET CLASS
(Dollars in billions)Quarters
1Q202Q203Q204Q201Q212Q21
North America - (US Domiciled) Morningstar Direct Market Data(1)(2)(3)
Long Term Funds(4)
$(240.1)$56.3 $21.4 $74.1 $165.2 $167.4 
Money Market664.8 259.4 (165.8)(82.3)156.4 24.2 
ETF22.1 69.6 60.1 119.7 148.4 148.1 
Total Flows$446.8 $385.3 $(84.3)$111.5 $470.0 $339.7 
EMEA-Morningstar Direct Market Data(1)(2)(5)
Long Term Funds(4)
$(137.6)$167.6 $134.4 $249.9 $237.0 $206.0 
Money Market11.6 152.8 60.0 58.6 (91.0)6.9 
ETF(2.9)36.2 32.4 48.0 54.2 53.0 
Total Flows$(128.9)$356.6 $226.8 $356.5 $200.2 $265.9 
(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 second quarter of 2021 data for North America (US domiciled) includes Morningstar actuals April and May 2021 and Morningstar estimates for June 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 second quarter of 2021 data for Europe is on a rolling three month basis for March 2021 through May 2021, sourced by Morningstar.
14    
        
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)2Q211Q212Q202Q21
vs.
1Q21		2Q21
vs.
2Q20		2Q211Q212Q202Q21
vs.
1Q21		2Q21
vs.
2Q20		2Q211Q212Q202Q21
vs.
1Q21		2Q21
vs.
2Q20		2Q211Q212Q202Q21
vs.
1Q21		2Q21
vs.
2Q20
Servicing fees$1,399 $1,371 $1,272 2.0 %10.0 %$— $— $— — %— %$— $— $— — %— %$1,399 $1,371 $1,272 2.0 %10.0 %
Management fees— — — — — 504 493 444 2.2 13.5 — — — — — 504 493 444 2.2 13.5 
Foreign exchange trading services270 333 312 (18.9)(13.5)16 13 13 23.1 23.1 — — — — — 286 346 325 (17.3)(12.0)
Securities finance106 95 88 11.6 20.5 3 4 4 (25.0)(25.0)— — — — — 109 99 92 10.1 18.5 
Software and processing fees209 172 229 21.5 (8.7)7 2 16 nm(56.3)— — — — — 216 174 245 24.1 (11.8)
Total fee revenue1,984 1,971 1,901 0.7 4.4 530 512 477 3.5 11.1 — — — — — 2,514 2,483 2,378 1.2 5.7 
Net interest income468 473 571 (1.1)(18.0)(1)(6)(12)(83.3)(91.7)— — — — — 467 467 559 — (16.5)
Total other income— — — ——— — — — — 53 — — nmnm53 — — nmnm
Total revenue2,452 2,444 2,472 0.3 (0.8)529 506 465 4.5 13.8 53 — — nmnm3,034 2,950 2,937 2.8 3.3 
Provision for loan losses(15)(9)52 66.7nm— — — — — — — — — — (15)(9)52 66.7nm
Total expenses1,755 1,879 1,717 (6.6)2.2 346 397 353 (12.8)(2.0)10 56 12 (82.1)(16.7)2,111 2,332 2,082 (9.5)1.4 
Income before income tax expense$712 $574 $703 24.0 1.3 $183 $109 $112 67.9 63.4 $43 $(56)$(12)nmnm$938 $627 $803 49.6 16.8 
Pre-tax margin29.0 %23.5 %28.4 %550 60 bps34.6 %21.5 %24.1 %1,310 1,050 bps30.9 %21.3 %27.3 %960 360 bps
Six Months Ended June 30,
Investment Servicing% ChangeInvestment Management% Change
Other(1)
% ChangeTotal% Change
(Dollars in millions)20212020YTD2021
vs.
YTD2020		20212020YTD2021
vs.
YTD2020		20212020YTD2021
vs.
YTD2020		20212020YTD2021
vs.
YTD2020
Servicing fees$2,770 $2,559 8.2 %$— $— — %$— $— — %$2,770 $2,559 8.2 %
Management fees— — — 997 908 9.8 — — — 997 908 9.8 
Foreign exchange trading services603 746 (19.2)29 23 26.1 — — — 632 769 (17.8)
Securities finance201 177 13.6 7 7 — — — — 208 184 13.0 
Software and processing fees381 366 4.1 9 (9)nm— — — 390 357 9.2 
Total fee revenue3,955 3,848 2.8 1,042 929 12.2 — — — 4,997 4,777 4.6 
Net interest income941 1,234 (23.7)(7)(11)(36.4)— — — 934 1,223 (23.6)
Total other income— 2 nm— — — 53 — — 53 2 nm
Total revenue4,896 5,084 (3.7)1,035 918 12.7 53 — — 5,984 6,002 (0.3)
Provision for loan losses(24)88 nm— — — — — — (24)88 nm
Total expenses3,634 3,576 1.6 743 738 0.7 66 23 187.0 4,443 4,337 2.4 
Income before income tax expense$1,286 $1,420 (9.4)$292 $180 62.2 $(13)$(23)(43.5)$1,565 $1,577 (0.8)
Pre-tax margin26.3 %27.9 %(160)bps28.2 %19.6 %860 bps26.2 %26.3 %(10)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.
nm Denotes not meaningful
15    
        
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ALLOWANCE FOR CREDIT LOSSES
Quarters% Change
(Dollars in millions)1Q202Q203Q204Q201Q212Q212Q21
vs.
2Q20		2Q21
vs.
1Q21
Allowance for credit losses:
Beginning balance$93 $124 $163 $153 $148 $135 8.9 %(8.8)%
Provision for credit losses (funded commitments)
29 57 3 (6)— (19)nmnm
Provision for credit losses (unfunded commitments)
3 (4)(2)6 (7)4 nmnm
Provision for credit losses (held-to-maturity securities and all other)
4 (1)(1)— (2)— nmnm
Total provision36 52 — — (9)(15)nm66.7
Charge-offs(5)(14)(14)(8)— (1)(92.9)nm
Other(1)
— 1 4 3 (4)2 100.0nm
Ending balance(2)
$124 $163 $153 $148 $135 $121 (25.8)(10.4)
Allowance for credit losses:
Loans$97 $141 $134 $122 $118 $100 (29.1)(15.3)
Held-to-maturity securities4 4 3 3 2 2 (50.0)—
Unfunded (off-balance sheet) commitments22 18 15 22 15 19 5.6 26.7 
All other1 — 1 1 — — ——
Ending balance(2)
$124 $163 $153 $148 $135 $121 (25.8)(10.4)
(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

16    
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)1Q202Q203Q204Q201Q212Q212Q21
vs.
2Q20		2Q21
vs.
1Q21		20202021YTD2021
vs.
YTD2020
Fee Revenue:
Total fee revenue, GAAP-basis$2,399 $2,378 $2,306 $2,416 $2,483 $2,514 5.7 %1.2 %$4,777 $4,997 4.6 %
Total fee revenue, excluding notable items$2,399 $2,378 $2,306 $2,416 $2,483 $2,514 5.7 1.2 $4,777 $4,997 4.6 
Total Revenue:
Total revenue, GAAP-basis$3,065 $2,937 $2,784 $2,917 $2,950 $3,034 3.3 %2.8 %$6,002 $5,984 (0.3)%
Less: other income— — — — — (53)nmnm— (53)nm
Total revenue, excluding notable items$3,065 $2,937 $2,784 $2,917 $2,950 $2,981 1.5 1.1 $6,002 $5,931 (1.2)
Expenses:
Total expenses, GAAP-basis$2,255 $2,082 $2,103 $2,276 $2,332 $2,111 1.4 %(9.5)%$4,337 $4,443 2.4 %
Less: Notable expense items:
Acquisition and restructuring costs(1)
(11)(12)(15)(12)(10)(11)(8.3)10.0 (23)(21)(8.7)
Repositioning charges— — — (133)— — — —— — — 
Legal and other— — 9 — (29)11 nmnm— (18)nm
Total expenses, excluding notable items$2,244 $2,070 $2,097 $2,131 $2,293 $2,111 2.0 (7.9)$4,314 $4,404 2.1 
Fee Operating Leverage, GAAP-Basis:
Total fee revenue, GAAP-basis
$2,399$2,378$2,306$2,416$2,483$2,5145.7 %1.2 %$4,777 $4,997 4.6 %
Total expenses, GAAP-basis
2,2552,0822,1032,2762,3322,1111.4 (9.5)4,337 4,443 2.4 
Fee operating leverage, GAAP-basis430 bps1,070 bps220 
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$2,5145.7 %1.2 %$4,777 $4,997 4.6 %
Total expenses, excluding notable items (as reconciled above)2,2442,0702,0972,1312,2932,1112.0 (7.9)4,314 4,404 2.1 
Fee operating leverage, excluding notable items370 bps910 bps250 bps
Operating Leverage, GAAP-Basis:
Total revenue, GAAP-basis
$3,065$2,937$2,784$2,917$2,950$3,0343.3 %2.8 %$6,002 $5,984 (0.3)%
Total expenses, GAAP-basis
2,2552,0822,1032,2762,3322,1111.4 (9.5)4,337 4,443 2.4 
Operating leverage, GAAP-basis190 bps1,230 bps(270)
bps
Operating Leverage, excluding notable items:
Total revenue, excluding notable items (as reconciled above)$3,065$2,937$2,784$2,917$2,950$2,9811.5 %1.1 %$6,002 $5,931 (1.2)%
Total expenses, excluding notable items (as reconciled above)2,2442,0702,0972,1312,2932,1112.0 (7.9)4,314 4,404 2.1 
Operating leverage, excluding notable items(50)bps900 bps(330)bps
17    
        
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)1Q202Q203Q204Q201Q212Q212Q21
vs.
2Q20		2Q21
vs.
1Q21		20202021YTD2021
vs.
YTD2020
Net Income Available to Common Shareholders:
Net Income Available to Common Shareholders, GAAP-basis
$580$662$517$498$489$72810.0 %48.9 %$1,242$1,217(2.0)%
Less: Notable items
Other income—————(53)—(53)
Acquisition and restructuring costs(1)
1112151210112321
Repositioning charges
———133————
Legal and other——(9)—29(11)—18
Preferred securities redemption(2)(3)
9———5—95
Tax impact of notable items
(3)(3)(4)(37)(10)16(6)6
Net Income Available to Common Shareholders, excluding notable items
$597$671$519$606$523$6913.0 32.1 $1,268$1,214(4.3)
Diluted Earnings per Share:
Diluted earnings per share, GAAP-basis$1.62$1.86$1.45$1.39$1.37$2.0711.3 %51.1 %$3.48$3.44(1.1)%
Less: Notable items
Other income—————(0.10)—(0.10)
Acquisition and restructuring costs(1)
0.020.020.030.030.020.020.040.04
Repositioning charges
———0.27————
Legal and other——(0.03)—0.06(0.02)—0.04
Preferred securities redemption(2)(3)
0.03———0.02—0.030.01
Diluted earnings per share, excluding notable items
$1.67$1.88$1.45$1.69$1.47$1.974.8 34.0 $3.55$3.43(3.4)
Pre-tax Margin:
Pre-tax margin, GAAP-basis25.3 %27.3 %24.5 %22.0 %21.3%30.9%360 bps960 bps26.3%26.2%(10)bps
Less: Notable items
Other income— — — —— (1.2)—(0.7)
Acquisition and restructuring costs(1)
0.3 0.4 0.5 0.40.3 0.40.40.4
Repositioning charges
———4.5————
Legal and other—

—

(0.3)

—1.0(0.4)—0.3
Pre-tax margin, excluding notable items
25.6%27.7%24.7%26.9%22.6%29.7%20071026.7%26.2%(50)
Return on Average Common Equity:
Return on average common equity, GAAP-basis10.9 %12.1 %8.9 %8.4 %8.4 %12.6%50 bps420 bps11.5%10.5%(100)bps
Less: Notable items
Other income—————(1.0)—(0.5)
Acquisition and restructuring costs(1)
0.20.20.20.20.20.20.30.2
Repositioning charges
———2.4————
Legal and other——(0.1)—0.5(0.2)—0.2
Preferred securities redemption(2)(3)
0.2———0.1—0.1—
Tax impact of notable items
(0.1)——(0.7)(0.2)0.3(0.1)0.1
Return on average common equity, excluding notable items
11.2%12.3%9.0%10.3%9.0%11.9%(40)290 11.8%10.5%(130)
(1) Acquisition and restructuring costs of approximately $11 million in 2Q21, 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.
18    
        
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF PRE-TAX MARGIN EXCLUDING NOTABLE ITEMS
(Dollars in millions)2017
2018(1)
20192020
Total revenue:
Total revenue, GAAP-basis$11,266 $12,131 $11,756 $11,703 
Less: Gain on sale(56)— — — 
Add: Impact of tax legislation20 — — — 
Add: Legal and other— 8 — — 
Less: Other income— — (44)— 
Total revenue, excluding notable items11,230 12,139 11,712 11,703 
Provision for credit losses2 15 10 88 
Total expenses:
Total expenses, GAAP-basis8,269 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 items8,003 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 items28.7 %28.8 %25.8 %26.3 %
Pre-tax margin, GAAP-basis26.6 25.6 23.1 24.8 
(1) Includes charges in 2018 that were previously disclosed as "Business exit: Channel Islands".


19    
        
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF NOTABLE ITEMS
Quarters% ChangeYear-to-Date% Change
(Dollars in millions)1Q202Q203Q204Q201Q212Q212Q21
vs.
2Q20		2Q21
vs.
1Q21		YTD 2020YTD 2021YTD2021
 vs.
YTD2020
Total revenue:
Total revenue, GAAP-basis$3,065 $2,937 $2,784 $2,917 $2,950 $3,034 3.3 %2.8 %$6,002 $5,984 (0.3)%
Less: other income— — — — — (53)nmnm— (53)nm
Total revenue, excluding notable items3,065 2,937 2,784 2,917 2,950 2,981 1.5 1.1 $6,002 $5,931 (1.2)
Total expenses:
Total expenses, GAAP basis$2,255 $2,082 $2,103 $2,276 $2,332 $2,111 1.4 (9.5)$4,337 $4,443 2.4 
Less: Notable expense items:
Repositioning charges:
Compensation and employee benefits— — — (82)— — — —— — — 
Occupancy— — — (51)— — — —— — —
Repositioning charges— — — (133)— — — —— — — 
Acquisition and restructuring costs(11)(12)(15)(12)(10)(11)(8.3)10.0 (23)(21)(8.7)
Legal and other— — 9 — (29)11 nmnm— (18)nm
Total expenses, excluding notable items(1)
2,244 2,070 2,097 2,131 2,293 2,111 2.0 (7.9)4,314 4,404 2.1 
Seasonal expenses(151)— — — (176)— —nm(151)(176)16.6 
Total expenses excluding notable items and seasonal expenses(1)
2,093 2,070 2,097 2,131 2,117 2,111 2.0 (0.3)4,163 4,228 1.6 
CRD expenses(58)(61)(62)(67)(67)(70)14.8 4.5 (119)(137)15.1 
CRD related expenses: intangible asset amortization costs(17)(16)(17)(16)(17)(16)— (5.9)(33)(33)— 
Total expenses, excluding notable items, seasonal items, CRD and CRD related expenses$2,018 $1,993 $2,018 $2,048 $2,033 $2,025 1.6 (0.4)$4,011 $4,058 1.2 
Net Income Available to Common Shareholders, GAAP-basis$580$662$517$498$489$72810.0 48.9 $1,242 $1,217 (2.0)
Notable items as reconciled above: pre-tax11 12 6 145 39 (53)23 (14)
Tax impact on notable items as reconciled above(3)(3)(4)(37)(10)16(6)6 
Preferred security cost9———5—9 5 
Net Income Available to Common Shareholders, excluding notable items$597 $671 $519 $606 $523 $691 3.0 32.1 $1,268 $1,214 (4.3)
(1) Please refer to Reconciliations of Constant Currency FX Impact within this addendum for FX impact on this line item.
nm Denotes not meaningful
20    
        
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF CONSTANT CURRENCY FX IMPACTS
ReportedCurrency Translation ImpactExcluding Currency Impact% Change Constant Currency
(Dollars in millions)2Q201Q212Q212Q21
vs.
2Q20		2Q21
vs.
1Q21		2Q21
vs.
2Q20		2Q21
vs.
1Q21		2Q21
vs.
2Q20		2Q21
vs.
1Q21
GAAP-Basis Results:
Fee revenue:
Servicing fees$1,272 $1,371 $1,399 $39 $1 $1,360 $1,398 6.9 %2.0 %
Management fees444 493 504 9 — 495 504 11.5 2.2 
Foreign exchange trading services325 346 286 — — 286 286 (12.0)(17.3)
Securities finance92 99 109 1 — 108 109 17.4 10.1 
Software and processing fees245 174 216 1 — 215 216 (12.2)24.1 
Total fee revenue2,378 2,483 2,514 50 1 2,464 2,513 3.6 1.2 
Net interest income559 467 467 14 1 453 466 (19.0)(0.2)
Total other income— — 53 — — 53 53 nmnm
Total revenue$2,937 $2,950 $3,034 $64 $2 $2,970 $3,032 1.1 2.8 
Expenses:
Compensation and employee benefits$1,051 $1,242 $1,077 $30 $1 $1,047 $1,076 (0.4)(13.4)
Information systems and communications376 421 398 3 — 395 398 5.1 (5.5)
Transaction processing services233 270 263 6 — 257 263 10.3 (2.6)
Occupancy109 109 100 5 — 95 100 (12.8)(8.3)
Acquisition and restructuring costs12 10 11 — — 11 11 (8.3)10.0 
Amortization of other intangible assets58 58 63 1 — 62 63 6.9 8.6 
Other243 222 199 4 1 195 198 (19.8)(10.8)
Total expenses$2,082 $2,332 $2,111 $49 $2 $2,062 $2,109 (1.0)(9.6)
Total expenses, excluding notable items - Non-GAAP$2,070 $2,293 $2,111 49 2 $2,062 $2,109 (0.4)(8.0)
GAAP-Basis YTD ComparisonReportedCurrency Translation ImpactExcluding Currency Impact% Change Constant Currency
(Dollars in millions)20202021YTD2021
vs.
YTD2020		2021YTD2021
vs.
YTD2020
GAAP-Basis Results:
Fee revenue:
Servicing fees$2,559 $2,770 $73 $2,697 5.4 %
Management fees908 997 18 979 7.8 
Foreign exchange trading services769 632 — 632 (17.8)
Securities finance184 208 1 207 12.5 
Software and processing fees357 390 4 386 8.1 
Total fee revenue4,777 4,997 96 4,901 2.6 
Net interest income1,223 934 31 903 (26.2)
Total other income2 53 — 53 nm
Total revenue$6,002 $5,984 $127 $5,857 (2.4)
Expenses:
Compensation and employee benefits$2,259 $2,319 $54 $2,265 0.3 
Information systems and communications761 819 6 813 6.8 
Transaction processing services487 533 12 521 7.0 
Occupancy218 209 7 202 (7.3)
Acquisition and restructuring costs23 21 — 21 (8.7)
Amortization of other intangible assets116 121 3 118 1.7 
Other473 421 12 409 (13.5)
Total expenses$4,337 $4,443 $94 $4,349 0.3 
Total expenses, excluding notable items - Non-GAAP$4,314 $4,404 $94 $4,310 (0.1)%
nm Denotes not meaningful
21    
        
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)1Q202Q203Q204Q201Q212Q21
Average consolidated total assets$251,181 $284,688 $264,383 $277,055 $296,328 $308,195 
Less:
   Average goodwill7,522 7,512 7,603 7,637 7,662 7,652 
   Average other intangible assets1,996 1,938 1,902 1,849 1,798 1,987 
Average cash balances held at central banks in excess of required reserves64,383 83,801 69,072 76,086 92,207 97,257 
   Plus related deferred tax liabilities476 478 483 489 489 490 
Average tangible assetsA$177,756 $191,915 $186,289 $191,972 $195,150 $201,789 
Consolidated average common shareholders' equity$21,466 $21,931 $23,014 $23,498 $23,583 $23,252 
Less:
   Average goodwill7,522 7,512 7,603 7,637 7,662 7,652 
   Average other intangible assets1,996 1,938 1,902 1,849 1,798 1,987 
Adjusted average equity11,948 12,481 13,509 14,012 14,123 13,613 
   Plus related deferred tax liabilities476 478 483 489 489 490 
Average tangible common equityB$12,424 $12,959 $13,992 $14,501 $14,612 $14,103 
Average tangible common equity ratioB/A7.0 %6.8 %7.5 %7.6 %7.5 %7.0 %
GAAP-basis:
Net income available to common shareholders$580 $662 $517 $498 $489 $728 
Return on tangible common equity - Non-GAAP18.7 %19.2 %16.8 %15.6 %13.4 %17.3 %
22    
        
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
REGULATORY CAPITAL
Basel III Advanced Approaches(1)
Basel III Standardized Approach(2)
(Dollars in millions)1Q202Q203Q204Q201Q212Q211Q202Q203Q204Q201Q212Q21
RATIOS:
Common equity tier 1 capital11.1 %12.7 %12.8 %13.1 %11.9 %11.8 %10.7 %12.3 %12.4 %12.3 %10.8 %11.2 %
Tier 1 capital13.4 15.1 15.1 15.4 13.6 13.5 12.9 14.6 14.7 14.4 12.4 12.9 
Total capital14.5 16.0 16.0 16.2 15.2 14.8 14.1 15.7 15.7 15.3 14.0 14.3 
Tier 1 leverage6.1 6.1 6.6 6.4 5.4 5.2 6.1 6.1 6.6 6.4 5.4 5.2 
Supporting Calculations:
Common equity tier 1 capital$12,115 $13,168 $13,825 $14,377 $13,443 $13,696 $12,115 $13,168 $13,825 $14,377 $13,443 $13,696 
Total risk-weighted assets109,056 103,763 108,112 109,705 113,051 116,473 112,763 106,839 111,159 117,080 124,324 121,932 
Common equity tier 1 risk-based capital ratio11.1 %12.7 %12.8 %13.1 %11.9 %11.8 %10.7 %12.3 %12.4 %12.3 %10.8 %11.2 %
Tier 1 capital$14,586 $15,639 $16,296 $16,848 $15,419 $15,672 $14,586 $15,639 $16,296 $16,848 $15,419 $15,672 
Total risk-weighted assets109,056 103,763 108,112 109,705 113,051 116,473 112,763 106,839 111,159 117,080 124,324 121,932 
Tier 1 risk-based capital ratio13.4 %15.1 %15.1 %15.4 %13.6 %13.5 %12.9 %14.6 %14.7 %14.4 %12.4 %12.9 %
Total capital$15,771 $16,650 $17,290 $17,810 $17,220 $17,264 $15,877 $16,766 $17,413 $17,957 $17,355 $17,384 
Total risk-weighted assets109,056 103,763 108,112 109,705 113,051 116,473 112,763 106,839 111,159 117,080 124,324 121,932 
Total risk-based capital ratio14.5 %16.0 %16.0 %16.2 %15.2 %14.8 %14.1 %15.7 %15.7 %15.3 %14.0 %14.3 %
Tier 1 capital$14,586 $15,639 $16,296 $16,848 $15,419 $15,672 $14,586 $15,639 $16,296 $16,848 $15,419 $15,672 
Leverage exposure(3)
239,861 256,418 247,762 263,490 285,480 298,687 239,861 256,418 247,762 263,490 285,480 298,687 
Tier 1 leverage ratio6.1 %6.1 %6.6 %6.4 %5.4 %5.2 %6.1 %6.1 %6.6 %6.4 %5.4 %5.2 %
(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.
23    

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		As of
June 30, 2021
Tier 1 CapitalA$14,586 $15,639 $16,296 $16,848 $15,419 $15,672 
On-and off-balance sheet leverage exposure279,537 198,266 206,985 216,900 223,451 241,743 
Less: regulatory deductions(9,275)(9,234)(9,261)(9,353)(9,586)(9,495)
Total leverage exposure for SLRB$270,262 $189,032 $197,724 $207,547 $213,865 $232,248 
Supplementary Leverage RatioA/B5.4 %8.3 %8.2 %8.1 %7.2 %6.7 %
24    
July 16, 2021 (NYSE: STT) 2Q 2021 Financial Highlights

 
2 Preface and forward-looking statements This presentation includes certain highlights of, and also material supplemental to, State Street Corporation’s news release announcing its second quarter 2021 financial results. That news release contains a more detailed discussion of many of the matters described in this presentation and is accompanied by detailed financial tables. This presentation is designed to be reviewed together with that news release, which is available on State Street’s website, at http://investors.statestreet.com, and is incorporated herein by reference. This presentation (and the conference call accompanying it) contains forward-looking statements as defined by United States securities laws. These statements are not guarantees of future performance, are inherently uncertain, are based on assumptions that are difficult to predict and have a number of risks and uncertainties. The forward-looking statements in this presentation speak only as of the time this presentation is first furnished to the SEC on a Current Report on Form 8-K, and State Street does not undertake efforts to revise forward-looking statements. See “Forward-looking statements” in the Appendix for more information, including a description of certain factors that could affect future results and outcomes. Certain financial information in this presentation is presented on both a GAAP basis and on a basis that excludes or adjusts one or more items from GAAP. The latter basis is a non-GAAP presentation. Refer to the Appendix for explanations of our non-GAAP financial measures and to the Addendum for reconciliations of our non-GAAP financial information.

 
3 2Q21 highlights All comparisons are to corresponding prior year periods unless noted otherwise • Total average assets of $308B, up 8%, as average client deposit levels remain elevated • ROE of 12.6%, CET1 ratio of 11.2%4 • Returned more than $600M to shareholders in 2Q21, consisting of $425M of common share repurchases and $181M in common stock dividends • In July 2021, announced a 10% increase to 3Q21 quarterly common stock dividend to $0.57 per share, and a common stock repurchase program of up to $3B through year end 20225 Balance sheet and capital strength • EPS of $2.07, up 11%; $1.97 ex-notable items, up 5%A • Total revenue of $3.0B, up 3%; up 1.5% ex-notable itemsA ‒ Record fee revenue of $2.5B, up 6% (4% ex-currency translationA) primarily reflecting strong servicing and management fee growth of 10% and 14%, respectively ‒ Net interest income of $0.5B, down (16)% primarily driven by lower global interest rates • Total Expenses of $2.1B, up 1%; down (0.4)% ex-notable items and currency translationA ‒ Pre-tax margin of 30.9%, up 3.6%pts; 29.7% ex-notable items, up 2.0%ptsA Financial performance • AUC/A of $42.6T, with servicing wins of $1.2T and new business yet to be installed of $1.2T at quarter end1 ‒ Reported 2 new State Street AlphaSM clients in 2Q21 ‒ Alpha recognized as Front-to-Back partnership of the year by Global Custodian2 • Record AUM of $3.9T at quarter end, with quarterly net inflows of $83B1 • Continued momentum in CRD; strong bookings of $19M and an annual recurring revenue (ARR) of $230M, up 11%3 Business momentum A Financial metrics ex-notable items/currency translation are non-GAAP measures; refer to the Appendix for explanations and reconciliations of our non-GAAP measures. Refer to the Appendix included with this presentation for endnotes 1 to 19.

 
4 2Q20 1Q21 2Q21 1Q21 2Q20 Revenue: Servicing fees $1,272 $1,371 $1,399 2% 10% 7% Management fees 444 493 504 2 14 11 Foreign exchange trading services 325 346 286 (17) (12) (12) Securities finance 92 99 109 10 18 17 Software and processing fees 245 174 216 24 (12) (12) Total fee revenue 2,378 2,483 2,514 1.2 5.7 3.6 Net interest income 559 467 467 - (16) (19) Other income - - 53 nm nm nm Total revenue $2,937 $2,950 $3,034 2.8% 3.3% 1.1% Provision for credit losses6 $52 ($9) ($15) nm nm nm Total expenses $2,082 $2,332 $2,111 (9.5)% 1.4% (1.0)% Net income $694 $519 $763 47.0% 9.9% Diluted earnings per share $1.86 $1.37 $2.07 51.1% 11.3% Return on average common equity 12.1% 8.4% 12.6% 4.2%pts 0.5%pts Pre-tax margin 27.3% 21.3% 30.9% 9.6%pts 3.6%pts Tax rate 13.6% 17.2% 18.6% 1.4%pts 5.0%pts Ex-notable items, non-GAAP A: Total revenue $2,937 $2,950 $2,981 1.1% 1.5% (0.7)% Total expenses $2,070 $2,293 $2,111 (7.9)% 2.0% (0.4)% EPS $1.88 $1.47 $1.97 34.0% 4.8% Pre-tax margin 27.7% 22.6% 29.7% 7.1%pts 2.0%pts (GAAP, $M, except EPS data, or where otherwise noted) Quarters %∆ 2Q20 %∆ ex-currency translationA Summary of 2Q21 financial results A This is a non-GAAP presentation; ex-currency translation percentage changes are in reference to the YoY quarterly comparison between 2Q21 and 2Q20 which excludes the impact of foreign currency translation; refer to the Appendix for a reconciliation of ex-notable items/currency translation and further explanations of non-GAAP measures. B Refer to the Addendum for further details on notable items. C Gain on sale of $53M included in Other income reflecting a gain on sale of a majority interest in our Wealth Manager Services business. D Legal and other benefits of $11M in 2Q21 included in Other expenses. Legal and other costs of $29M in 1Q21 included $20M in Information systems and communications, $8M in Transaction processing and $1M in Other expenses. Refer to the Appendix included with this presentation for endnotes 1 to 19. Notable Items 2Q20 1Q21 2Q21 Gain on saleC - - 53 Acquisition and restructuring costs (12) (10) (11) Legal and otherD - (29) 11 Total Notable items (pre-tax) ($12) ($39) $53 Preferred securities redemption (after-tax) - (5) - EPS Impact ($0.02) ($0.10) $0.10 ($M, except EPS data) QuartersB

 
5 AUC/A and AUM levels, markets and flows performance AUC/A and AUM A Market indices7 • 27% and 6% increase from 2Q20 and 1Q21, respectively, largely driven by: – Higher period-end market levels, net new business growth, and client flows • 28% increase from 2Q20 reflecting: – Higher period-end market levels and net inflows from ETFs and cash, partially offset by institutional net outflows • 9% increase from 1Q21 due to: – Higher period-end market levels and net inflows AUC/A ($T, as of period-end) AUM ($B, as of period-end) Select industry flows8 +9% +6% $33.5 $40.3 $42.6 2Q212Q20 1Q21 1Q212Q20 2Q21 $3,591 $3,054 $3,897 +27% +28% A Changes to AUC/A and AUM also reflect currency translation. B Line items may not sum to total due to rounding. Refer to the Appendix included with this presentation for endnotes 1 to 19. 1Q21 2Q20 EOP 8% 39% Daily Avg 8 43 EOP 4 29 Daily Avg 5 37 EOP 4 38 Daily Avg (1) 45 (% change) 2Q21 vs S&P 500 MSCI EAFE MSCI EM Barclays Global Agg EOP 1 3 2Q20 1Q21 2Q21 Long Term Funds $56 $165 $167 Money Market 259 156 24 ETF 70 148 148 North America Total 385 470 340 EMEA Total 357 200 266 ($B) Total flowsB

 
6 Servicing fees of $1,399M up 10% YoY and up 2% QoQ; ex-FX, up 7% YoY A • Up 10% YoY (7% ex-FX) primarily driven by higher average equity market levels, client flows and net new business, partially offset by normal pricing headwinds and the absence of prior year client activity • Up 2% QoQ mainly due to higher average equity market levels and net new business Revenue: Servicing fees Servicing fees ($M) 2Q21 performance $1,272 $1,301 $1,307 $1,371 $1,399 1Q214Q202Q20 3Q20 2Q21 $2,937 $2,784 $2,917 $2,950 $3,034 YoY +3% QoQ +3% Total revenue +10% +7% ex-FX A AUC/A wins $162 $249 $205 $343 $1,187 1,037 486 436 463 1,236 AUC/A to be installed AUC/A sales performance indicators ($B) 1 • Servicing fees were positively impacted by currency translation when compared to 2Q20 by $39M Investment Services business momentum • Reigniting business growth: – Robust 2Q21 business wins reflecting mandates across segments and regions, and continued Alpha momentum – Particular strength in EMEA with solid onshore and offshore revenue wins and flows, as well as a strong pipeline in key strategic regions – Growth in Asset Managers, Asset Owners, and Alternatives client segments driven by flows, new mandates, and expanded relationships • Increasing assets to be installed: – New assets to be installed driven by large Alpha mandates, which are generally implemented in phases over a 12-24 month period A This is a non-GAAP presentation; refer to the Appendix for a reconciliation of ex-notable items/currency translation and further explanations of non-GAAP measures. Refer to the Appendix included with this presentation for endnotes 1 to 19. +2%

 
7 Revenue: Management fees Management fees ($M) 2Q21 performance $2,937 $2,784 $2,917 $2,950 $3,034 YoY +3% QoQ +3% Total revenue Management fees of $504M up 14% YoY and 2% QoQ; ex-FX, up 11% YoY A • Up 14% YoY primarily reflecting higher average equity market levels and net inflows from ETFs, partially offset by a previously reported idiosyncratic institutional client asset reallocation and money market fee waivers • Up 2% QoQ primarily reflecting higher average equity market levels and net inflows, partially offset by money market fee waivers • Generated strong annualized net new Management fee revenue, with record AUM of $3.9T in 2Q21 • Investment Management business pre-tax margin of 34.6% in 2Q21B +14% +11% ex-FX A AUM $3,054 $3,148 $3,467 $3,591 $3,897 23 (65) (21) 39 83Net flows Performance indicators ($B) 1 • Management fees were positively impacted by currency translation when compared to 2Q20 by $9M A This is a non-GAAP presentation; refer to the Appendix for a reconciliation of ex-notable items/currency translation and further explanations of non-GAAP measures. B Refer to the Addendum for line of business information. Refer to the Appendix included with this presentation for endnotes 1 to 19. +2% 2Q211Q212Q20 4Q20 $504 3Q20 $479 $444 $493 $493 Management fee business momentum Building on our leading ETF and Long-Term Institutional franchises • ETF: Continue to build on our strengths in SPY, Sectors, and GLD® to drive growth and greater market share – Global SPDR® AUM surpassed $1T with $21B in net flows in 2Q21 • Institutional: Focused sales execution in indexing, ESG, and multi-asset solutions to drive revenue growth – $55B of Long-Term Institutional net flows in 2Q21

 
8 Revenue: Markets, Software and processing fees Markets, Software & processing fees ($M) 2Q21 performance 245 172 204 174 216 92 84 88 99 109 325 270 324 346 286 2Q20 $526 1Q213Q20 4Q20 2Q21 $611$616 $662 $619 FX trading Securities finance Software & processing $2,937 $2,784 $2,917 $2,950 $3,034 Total revenue YoY +3% QoQ +3% -12% +18% -12% YoY % • FX trading services of $286M – Down (12)% YoY reflecting lower FX volatility, partially offset by higher client FX volumes – Down (17)% QoQ mainly due to lower FX volatility and client volumes • Securities finance of $109M – Up 18% YoY and 10% QoQ primarily driven by higher client balances, partially offset by lower spreads • Software and processing fees of $216M – Down (12)% YoY mainly reflecting the absence of prior year market- related adjustments – Up 24% QoQ primarily reflecting higher CRD revenues

 
9 57 57 59 60 64 26 22 20 27 27 63 20 36 17 63$115 $145 $154 2Q212Q20 $104 3Q20 4Q20 1Q21 $99 Professional services Software- enabled (including SaaS) 9 On-prem 9 CRD and Alpha mandates +6% 10% YoY growth CRD financial performance (Standalone basis, $M)A CRD 2Q21 highlights • 2Q21 revenue of $154MA – Up 6% YoY primarily due to higher software-enabled revenue – Up 48% QoQ largely driven by episodic fees and higher client renewals • Continued business momentum with strong quarterly bookings of $19M11 • Total number of SaaS clients increased ~10% YoY12 Alpha highlights • Reported 2 new Alpha clients in 2Q211 • 15 total Alpha clients signed since inception1 • 5 Alpha client mandates live as of the end of 2Q21 • Alpha mandate benefits: – Contract lengths up to 10 years for front and middle office services – Enterprise relationships with multi-product installations +48% Pre-tax income 10 $84 $37 $48 $37 $84 3 17 5 4 19 207 213 223 225 230 77 92 98 103 93 New bookings 11 ARR 3 Uninstalled revenue backlog A For 2Q21, CRD standalone results include revenue of $154M and pre-tax income of $84M, which includes $14M of revenue associated with affiliates, including SSGA, that is eliminated in consolidation for financial reporting purposes. On a consolidated basis, CRD revenue contributed $140M, including $136M in Software and processing fees and $3M in FX trading services; revenue line items may not sum to total due to rounding. Refer to the Appendix included with this presentation for endnotes 1 to 19.

 
10 0.93% 0.75% 0.71% Revenue: Net interest income NII and NIM ($M)13 Average balance sheet highlights ($B)A $467 2Q21 $467 $559 2Q20 1Q21 Total average assets of $308B up 8% YoY and 4% QoQ • Up 8% YoY and 4% QoQ largely driven by higher total average deposits, which remain elevated due to U.S. monetary policy, partially offset by the absence of MMLF balances A Line items are rounded. B Average MMLF balances contributed ~$13M to the average investment portfolio in 2Q21. Refer to the Appendix included with this presentation for endnotes 1 to 19. -16% NIM 13 (FTE, %) $2,937 $2,950 $3,034 Total revenue NII of $467M down (16)% YoY and flat QoQ • Down (16)% YoY primarily due to lower investment portfolio yields and a decline in average short-end market rates, partially offset by growth in deposits, the investment portfolio size and loan balances • Flat QoQ as growth in the investment portfolio size and loan balances offset lower investment portfolio yields and a decline in average short-end market rates 2Q20 1Q21 2Q21 Total assets $285 $296 $308 Interest-earning assets 245 255 266 Loans 27 28 29 Investment portfolio (ex. MMLF) B 98 107 111 HTM % (ex. MMLF) 41% 44% 41% Duration 14 2.4 3.1 3.1 Total deposits $197 $226 $242 YoY +3% QoQ +3% Flat

 
11 Expenses Expenses (Ex-notable items, non-GAAP, $M) A 2Q21 performance (Ex-notable items, non-GAAP)A $2,082 $2,332 $2,111 39,068 39,318 39,146 GAAP Expense Head- count $301 $279 $273 $233 $262 $263 $376 $401 $398 $1,051 $1,242 $1,077 $2,293 2Q20 1Q21 2Q21 $2,070 $2,111 -8% +2% -0.4% ex-FX A A This is a non-GAAP presentation; refer to the Appendix for a reconciliation of ex-notable items/currency translation and further explanations of non-GAAP measures. B 1Q21 includes $176M of seasonal expenses. C Total expenses presented excludes notable items and currency translation. This is a non-GAAP presentation; refer to the Appendix for a reconciliation of ex-notable items/currency translation and further explanations of non-GAAP measures. Refer to the Appendix included with this presentation for endnotes 1 to 19. Comp. & benefitsB Info. sys. Tran. processing Other 15 Occupancy • Total GAAP expenses were adversely impacted by currency translation when compared to 2Q20 by $49M • Headcount relatively flat YoY and QoQ Expenses of $2,111M up 2% YoY and down (8)% QoQ; ex-FX, down (0.4)% YoY A • Compensation and employee benefits of $1,077M – Up 2% YoY (flat ex-FX) primarily driven by higher medical and pension costs, as well as contractor spend, partially offset by lower headcount in high cost locations – Down (13)% QoQ mainly due to the absence of seasonal expensesB • Information systems and communications of $398M16 – Up 6% YoY (5% ex-FX) mainly reflecting higher technology and infrastructure investments; down (1)% QoQ • Transaction processing services of $263M16 – Up 13% YoY (10% ex-FX) primarily due to higher revenue-related costs in sub-custody and market data; flat QoQ • Occupancy of $100M – Down (8)% YoY ((13)% ex-FX) due to footprint optimization – Down (8)% QoQ reflecting a temporary reduction in maintenance costs • Other of $273M16 – Down (9)% YoY ((11)% ex-FX) largely driven by lower professional fees; down (2)% QoQ $100$109$109 YoY +1% QoQ -9% Productivity savings more than offset higher revenue-related expenses and planned investments C

 
12 Capital ratios Capital ratios 4 (%, as of period-end) Capital highlights Capital ($B, capital metrics as of period-end) 2Q20 1Q21 2Q21 Standardized CET1 CET1 capital $13.2 $13.4 $13.7 Risk weighted assets 106.8 124.3 121.9 Tier 1 leverage Tier 1 capital 15.6 15.4 15.7 Leverage exposure 19 256.4 285.5 298.7 Refer to the Appendix included with this presentation for endnotes 1 to 19. CET1 (Standardized) Tier 1 Leverage SCB 18 Minimum ratio 12.3% 10.8% 4.5% 2.5% 1Q21 11.2% 2Q20 2Q21 8.0% 1.0% Target state 10-11% G-SIB surcharge 17 6.1% 5.4% 2Q20 2Q211Q21 5.2% Target state Minimum ratio4.0% STT Target5.25-5.75% STT Target • 2Q21 standardized CET1 ratio of 11.2% increased 0.4%pts QoQ primarily reflecting lower risk-weighted assets • 2Q21 Tier 1 leverage ratio of 5.2% decreased (0.2)%pts QoQ mainly driven by higher client deposits • Preliminary SCB calculated under this year’s supervisory stress test was well below the 2.5% minimum, resulting in an SCB at that floor; G-SIB surcharge at 1% through 2023 • Capital return: – Returned more than $600M to shareholders in 2Q21, consisting of $425M of common share repurchases and $181M in common stock dividends – In July 2021, announced a 10% increase to 3Q21 quarterly common stock dividend to $0.57 per share, and a common stock repurchase program of up to $3B through year end 2022 5

 
13 Summary 2Q21 financial review • EPS of $2.07, up 11%; pre-tax margin of 30.9%, up 3.6%pts; ROE of 12.6% • EPS ex-notable items of $1.97, up 5%A – Fee revenue of $2.5B, up 6% (4% ex-currency translationA), primarily driven by strong servicing and management fee growth of 10% and 14%, respectively, and higher securities finance revenue, partially offset by lower FX trading revenue and software and processing fees – NII of $0.5B, down (16)%, largely reflecting lower global interest rates; NII flat QoQ – Expenses ex-notable items of $2.1B, up 2%; down (0.4)% ex-notable items and currency translation, as productivity savings and footprint optimization more than offset higher revenue related expenses including transaction processing and information systems investmentsA • Business momentum:1 – Strong sales momentum in Investment Servicing and Alpha mandates, with $1.2T of servicing wins – 2 new Alpha clients in 2Q21; 15 total Alpha clients signed since inception; 5 Alpha client mandates live as of the end of 2Q21 – Quarterly net inflows of $83B in Global Advisors, with record AUM of $3.9T in 2Q21 • Capital return: – Returned more than $600M to shareholders in 2Q21, consisting of $425M of common share repurchases and $181M in common stock dividends – In July 2021, announced a 10% increase to 3Q21 quarterly common stock dividend to $0.57 per share, and a common stock repurchase program of up to $3B through year end 2022 5 A Financial metrics ex-notable items/currency translation are non-GAAP measures; refer to the Appendix for explanations and reconciliations of our non-GAAP measures. Refer to the Appendix included with this presentation for endnotes 1 to 19. All comparisons are to corresponding prior year periods unless noted otherwise

 
14 Appendix 2Q21 line of business performance 15 Reconciliation of notable items 16 Reconciliation of constant currency impacts 17 Endnotes 18 Forward-looking statements 19 Non-GAAP measures 20 Definitions 21

 
15 $2,937M 1,984 State StreetA 2Q21 line of business performance Investment Servicing Total revenue 571 468 1,901 2Q20 2Q21 $2,452M$2,472M Pre-tax income Fee revenue NII Pre-tax margin 28.4% 29.0% +0.6%pts $712M 2Q20 2Q21 $703M YoY % ∆ +4.4% -18.0% -0.8% +1.3% Investment Management Total revenue 2Q20 2Q21 $465M $529M Pre-tax income Pre-tax margin 24.1% 34.6% +10.5%pts 2Q20 2Q21 $112M $183M YoY % ∆ +13.8% +63.4% Total revenue ex-notable itemsB 559 467 2,378 2,514 2Q20 2Q21 $2,981M Pre-tax income ex-notable itemsB Fee revenue NII Pre-tax margin ex-notable itemsB 27.7% 29.7% +2.0%pts 2Q20 $885M $815M 2Q21 YoY % ∆ +5.7% -16.5% +1.5% +8.6% A State Street includes line of business results from Investment Servicing, Investment Management, and Other. Refer to the Addendum for further line of business information. B This is a non-GAAP presentation; refer to the Appendix for a reconciliation of ex-notable items/currency translation and further explanations of non-GAAP measures.

 
16 Reconciliation of notable items A Calculated as the period-over-period change in total revenue less the period-over-period change in total expenses. B Calculated as the period-over-period change in total revenue, excluding notable items less the period-over-period change in total expenses, excluding notable items. Quarterly reconciliation (Dollars in millions, unless noted otherwise) 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 2020 2021 Total revenue, GAAP-basis 3,065 2,937 2,784 2,917 2,950 3,034 # 6,002 5,984 Less: Other income (53) 0 (53) Total revenue, excluding notable items 3,065 2,937 2,784 2,917 2,950 2,981 # 6,002 5,931 Total expenses, GAAP basis 2,255 2,082 2,103 2,276 2,332 2,111 # 4,337 4,443 Less: Notable expense items: Repositioning charges: 0 Compensation and employee benefits (82) # 0 0 Occupancy (51) # 0 0 Repositioning charges (133) # 0 00 Acquisition and restructuring costs (11) (12) (15) (12) (10) (11) 0 (23) (21) Legal and other: Information systems and communications (20) 0 (20) Transaction processing services (8) 0 (8) Other 9 (1) 11 0 10 Legal and other 9 (29) 11 0 0 (18) Total expenses, excluding notable items 2,244 2,070 2,097 2,131 2,293 2,111 # 4,314 4,404 Seasonal expenses (151) (176) (151) (176) Total expenses, excluding notable items and seasonal expense items 2,093 2,070 2,097 2,131 2,117 2,111 4,163 4,228 Operating leverage, GAAP-basis (%pts)A 190 bps 1,230 bps bps (270) bps Operating leverage, excluding notable items (%pts)B (50) 900 (330) Pre-tax margin, GAAP-basis (%) 25.3% 27.3% 24.5% 22.0% 21.3% 30.9% 360 960 26.3% 26.2% (10) Notable items as reconciled above (%) 0.3% 0.4% 0.2% 4.9% 1.3% (1.2%) 0.4% - Pre-tax margin, excluding notable items (%) 25.6% 27.7% 24.7% 26.9% 22.6% 29.7% 200 710 26.7% 26.2% (50) Net income available to common shareholders, GAAP-basis 580 662 517 498 489 728 1,242 1,217 (2.0)% Notable items as reconciled above: pre-tax 11 12 6 145 39 (53) 23 (14) Tax impact on notable items as reconciled above (3) (3) (4) (37) (10) 16 (6) 6 Preferred securities cost 9 5 9 5 Net income available to common shareholders, excluding notable items 597 671 519 606 523 691 1,268 1,214 (4.3)% Diluted EPS, GAAP-basis 1.62 1.86 1.45 1.39 1.37 2.07 3.48 3.44 (1.1)% Notable items as reconciled above 0.05 0.02 0.00 0.30 0.10 (0.10) 0.07 (0.01) Diluted EPS, excluding notable items 1.67 1.88 1.45 1.69 1.47 1.97 3.55 3.43 (3.4)% 2.1% 1.6% % Change YTD2021 vs. YTD2020 (0.3)% (1.2)% 2.4% 3.0% 32.1% 51.1%11.3% 4.8% 34.0% 2.0% (7.9)% (0.3)%2.0% 10.0% 48.9% 3.3% 1.5% 1.4% 2.8% 1.1% (9.5)% Year-to-Date 2Q21 vs. 2Q20 2Q21 vs. 1Q21 % Change

 
17 Reconciliation of constant currency impacts Reconciliation of Constant Currency FX Impacts (Dollars in millions) 2Q20 1Q21 2Q21 2Q21 vs. 2Q20 2Q21 vs. 1Q21 2Q21 vs. 2Q20 2Q21 vs. 1Q21 2Q21 vs. 2Q20 2Q21 vs. 1Q21 Non-GAAP basis Total revenue, excluding notable items $ 2,937 $ 2,950 $ 2,981 $ 64 $ 2 $ 2,917 $ 2,979 (0.7)% 1.0% Compensation and employee benefits, excluding notable items $ 1,051 $ 1,242 $ 1,077 $ 30 $ 1 $ 1,047 $ 1,076 (0.4)% (13.4)% Information systems and communications, excluding notable items 376 401 398 3 - 395 398 5.1% (0.7)% Transaction processing services, excluding notable items 233 262 263 6 - 257 263 10.3% 0.4% Occupancy, excluding notable items 109 109 100 5 - 95 100 (12.8)% (8.3)% Other expenses, excluding notable items 301 279 273 5 1 268 272 (11.0)% (2.5)% Total expenses excluding notable items $ 2,070 $ 2,293 $ 2,111 $ 49 $ 2 $ 2,062 $ 2,109 (0.4)% (8.0)% Reported Currency Translation Impact % Change Constant Currency Excluding Currency Impact

 
18 Endnotes 1. New asset servicing mandates, including announced front-to-back investment servicing clients, may be subject to completion of definitive agreements, approval of applicable boards and shareholders and customary regulatory approvals. New asset servicing mandates and servicing assets remaining to be installed in future periods exclude new business which has been contracted, but for which the client has not yet provided permission to publicly disclose and is not yet installed. These excluded assets, which from time to time may be significant, will be included in new asset servicing mandates and reflected in servicing assets remaining to be installed in the period in which the client provides its permission. Servicing mandates and servicing assets remaining to be installed in future periods are presented on a gross basis and therefore also do not include the impact of clients who have notified us during the period of their intent to terminate or reduce their relationship with State Street, which from time to time may be significant. New business in assets to be serviced is reflected in our AUC/A after we begin servicing the assets, and new business in assets to be managed is reflected in our AUM after we begin managing the assets. As such, only a portion of any new asset servicing and asset management mandates may be reflected in our AUC/A and AUM as of any particular date specified. Generally, our servicing fee revenues are affected by several factors including changes in market valuations, client activity and asset flows, net new business and the manner in which we price our services. We provide a range of services to our clients, including core custody services, accounting, reporting and administration and middle office services, and the nature and mix of services provided affects our servicing fees. The basis for fees will differ across regions and clients. The industry in which we operate has historically faced pricing pressure, and our servicing fee revenues are also affected by such pressures today. Consequently, no assumption should be drawn as to future revenue run rate from announced servicing wins or new servicing business yet to be installed, as the amount of revenue associated with AUC/A can vary materially. Management fees generally are affected by our level of AUM and differ based upon the nature, type and investment strategy of the investment product. Management fee revenue is more sensitive to market valuations than servicing fee revenue, as a higher proportion of the underlying services provided, and the associated management fees earned, are dependent on equity and fixed-income security valuations. Additional factors, such as the relative mix of assets managed, may have a significant effect on our management fee revenue. While certain management fees are directly determined by the values of AUM and the investment strategies employed, management fees may reflect other factors, including performance fee arrangements, as well as our relationship pricing for clients. 2. Alpha recognized as Front-to-Back Partnership of the year for Global Custodian’s Leaders in Custody Awards. 3. CRD ARR, an operating metric, is calculated by annualizing current quarter revenue and includes annualized amount of most sof tware-enabled revenue, including revenue generated from Software-as-a-service, maintenance and support revenue, revenue from the Charles River Network’s FIX Network Service (CRN), and value-added services, which are all expected to be recognized ratably over the term of client contracts. ARR excludes software-enabled brokerage revenue. ARR of $207M, $225M and $230M in 2Q20, 1Q21 and 2Q21, respectively, include annualized intercompany revenue of $17M, $20M and $21M, respectively. 4. Unless otherwise noted, all capital ratios referenced on this slide and elsewhere in this presentation refer to State Street Corporation, or State Street, and not State Street Bank and Trust Company, or State Street Bank. All capital ratios are as of quarter end. The lower of capital ratios calculated under the Basel III advanced approaches and under the Basel III standardized approach are applied in the assessment of our capital adequacy for regulatory purposes. Standardized approach ratios were binding for 2Q21, 1Q21 and 2Q20. Refer to the Addendum included with description of these ratios. June 30, 2021 capital ratios are presented as of quarter-end and are estimates. 5. State Street’s $3 billion common stock repurchase authorization covers through year end 2022. Stock purchases may be made using various types of transactions, including open-market purchases, accelerated share repurchases or other transactions off the market, and may be made under Rule 10b5-1 trading programs. The timing and amount of any stock purchases and the type of transaction will depend on several factors, including investment opportunities, State Street’s capital position, its financial performance, market conditions and the amount of common stock issued as part of employee compensation programs. The common stock purchase program does not have specific price targets and may be suspended at any time. 6. In accordance with ASU 2016-13, the Provision for credit losses for 2Q20, 1Q21, and 2Q21 includes the provision on funded and unfunded commitments as well as HTM securities. 7. The index names listed are service marks of their respective owners. 8. Morningstar 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. The long-term fund flows reported by Morningstar in North America are composed of U.S. domiciled Market flows mainly in Equities, Allocation and Fixed Income asset classes. 2Q21 data for North America (U.S. domiciled) includes Morningstar actuals for April and May 2021 and Morningstar estimates for June 2021. 2Q21 data for EMEA is on a rolling three month basis for March 2020 through May 2021. 9. On-prem revenue is revenue derived from locally installed software. Software-enabled revenue includes software as a service, maintenance and support revenue, FIX, brokerage, and value-add services. Revenue recognition pattern for on-prem installations differs from software-enabled revenue. 10. Revenue and pre-tax income reflects the application of ASC 606. Revenue recognition under ASC 606 results in the acceleration of a significant portion of revenues for on-prem software agreements when a client goes live or renews their contract with us. The amount of revenue recognized in any given quarter will be driven in large part by client activity, including agreements that renew or are installed in that quarter. 11. CRD bookings, as presented in this presentation, represent signed annual recurring revenue contract value excluding bookings with affiliates, including SSGA. CRD revenue derived from affiliate agreements is eliminated in consolidation for financial reporting purposes. 12. Total number of SaaS clients comparison based on the number of SaaS clients at June 30, 2021 as compared to June 30, 2020. 13. NII is presented on a GAAP-basis. NIM is presented on an FTE-basis. Refer to the Addendum for reconciliations of NII FTE-basis to NII GAAP-basis on the Average Statement of Condition. 14. Duration as of period end and based on total investment portfolio, including MMLF. 15. Other includes Other expenses and Amortization of intangible assets. 16. Information systems and communications expenses in 1Q21 included a notable item from legal and other costs of $20M. Excluding this notable item, 2Q21 Information systems and communications of $398M was down (1)% compared to 1Q21 adjusted Information systems and communications of $401M. Transaction processing services expenses in 1Q21 included a notable item from legal and other costs of $8M. Excluding this notable item, 2Q21 Transaction processing services of $263M was flat compared to 1Q21 adjusted Transaction processing services of $262M. Other expenses in 2Q21, 1Q21 and 2Q20 included notable items related to acquisition and restructuring costs of $11M, $10M, and $12M, respectively. Other expenses in 2Q21 also included a notable item from legal and other benefits of $11M. Other expenses in 1Q21 also included a notable item from legal and other costs of $1M. Excluding all these notable items, 2Q21 adjusted Other expenses of $273M was down (9)% compared to 2Q20 adjusted Other expenses of $301M and down (2)% compared to 1Q21 adjusted Other expenses of $279M. 17. Based on a calculation date of December 31, 2019, our G-SIB surcharge for 2021 is 1.0%. 18. The preliminary SCB of 2.5% effective on October 1, 2021 is calculated based upon the results of the CCAR 2021 exam. 19. Leverage exposure is equal to average consolidated assets less applicable Tier 1 leverage capital reductions.

 
19 Forward-looking statements This presentation (and the conference call referenced herein) contains forward-looking statements within the meaning of United States securities laws, including statements about our goals and expectations regarding our business, financial and capital condition, results of operations, strategies, the financial and market outlook, dividend and stock purchase programs, governmental and regulatory initiatives and developments, expense reduction programs, new client business, and the business environment. Forward-looking statements are often, but not always, identified by such forward-looking terminology as “outlook,” “guidance,” “expect,” “priority,” “objective,” “intend,” “plan,” “forecast,” “believe,” “anticipate,” “estimate,” “seek,” “may,” “will,” “trend,” “target,” “strategy” and “goal,” or similar statements or variations of such terms. These statements are not guarantees of future performance, are inherently uncertain, are based on current assumptions that are difficult to predict and involve a number of risks and uncertainties. Therefore, actual outcomes and results may differ materially from what is expressed in those statements, and those statements should not be relied upon as representing our expectations or beliefs as of any time subsequent to the time this presentation is first issued. Important factors that may affect future results and outcomes include, but are not limited to: We are subject to intense competition, which could negatively affect our profitability; We are subject to significant pricing pressure and variability in our financial results and our AUC/A and AUM; Our development and completion of new products and services, including State Street Alpha, and our enhancement of the capabilities of our existing products and services in light of changed client needs and competitive pressures, may involve costs and dependencies and expose us to increased risk; Our business may be negatively affected by our failure to update and maintain our technology infrastructure; The COVID-19 pandemic continues to create and exacerbate significant risks and uncertainties for our business; Acquisitions, strategic alliances, joint ventures and divestitures, and the integration, retention and development of the benefits of our acquisitions, pose risks for our business; Competition for qualified members of our workforce is intense, and we may not be able to attract and retain the highly skilled people we need to support our business; We could be adversely affected by geopolitical, economic and market conditions; We have significant International operations, and disruptions in European and Asian economies could have an adverse effect on our consolidated results of operations or financial condition; Our investment securities portfolio, consolidated financial condition and consolidated results of operations could be adversely affected by changes in the financial markets; Our business activities expose us to interest rate risk; We assume significant credit risk to counterparties, who may also have substantial financial dependencies with other financial institutions, and these credit exposures and concentrations could expose us to financial loss; Our fee revenue represents a significant portion of our consolidated revenue and is subject to decline based on, among other factors, the investment activities of our clients; If we are unable to effectively manage our capital and liquidity, our consolidated financial condition, capital ratios, results of operations and business prospects could be adversely affected; We may need to raise additional capital or debt in the future, which may not be available to us or may only be available on unfavorable terms; If we experience a downgrade in our credit ratings, or an actual or perceived reduction in our financial strength, our borrowing and capital costs, liquidity and reputation could be adversely affected; Our business and capital-related activities, including common share repurchases, may be adversely affected by capital and liquidity standards required as a result of capital stress testing; We face extensive and changing government regulation in the jurisdictions in which we operate, which may increase our costs and compliance risks; We are subject to enhanced external oversight as a result of the resolution of prior regulatory or governmental matters; Our businesses may be adversely affected by government enforcement and litigation; Any misappropriation of the confidential information we possess could have an adverse impact on our business and could subject us to regulatory actions, litigation and other adverse effects; Our calculations of risk exposures, total RWA and capital ratios depend on data inputs, formulae, models, correlations and assumptions that are subject to change, which could materially impact our risk exposures, our total RWA and our capital ratios from period to period; Changes in accounting standards may adversely affect our consolidated financial statements; Changes in tax laws, rules or regulations, challenges to our tax positions and changes in the composition of our pre-tax earnings may increase our effective tax rate; The transition away from LIBOR may result in additional costs and increased risk exposure; Our control environment may be inadequate, fail or be circumvented, and operational risks could adversely affect our consolidated results of operations; Cost shifting to non-U.S. jurisdictions and outsourcing may expose us to increased operational risk and reputational harm and may not result in expected cost savings; Attacks or unauthorized access to our information technology systems or facilities, or those of the third parties with which we do business, or disruptions to our or their continuous operations, could result in significant costs, reputational damage and limits on our business activities; Long-term contracts expose us to pricing and performance risk; Our businesses may be negatively affected by adverse publicity or other reputational harm; We may not be able to protect our intellectual property; The quantitative models we use to manage our business may contain errors that could result in material harm; Our reputation and business prospects may be damaged if our clients incur substantial losses or are restricted in redeeming their interests in investment pools that we sponsor or manage; The impacts of climate change could adversely affect our business operations; and We may incur losses as a result of unforeseen events including terrorist attacks, natural disasters, the emergence of a new pandemic or acts of embezzlement. Other important factors that could cause actual results to differ materially from those indicated by any forward-looking statements are set forth in our 2020 Annual Report on Form 10-K and our subsequent SEC filings. We encourage investors to read these filings, particularly the sections on risk factors, for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this presentation should not by relied on as representing our expectations or beliefs as of any time subsequent to the time this presentation is first issued, and we do not undertake efforts to revise those forward-looking statements to reflect events after that time.

 
20 Non-GAAP measures 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, may 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 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. Refer to the Addendum for reconciliations of our non-GAAP financial information. To access the Addendum go to http://investors.statestreet.com and click on “Filings & Reports – Quarterly Earnings”.

 
21 Definitions ARR Annual recurring revenue AUC/A Assets under custody and/or administration AUM Assets under management Barclays Global Agg Barclays Global Agg represents Barclays Global Aggregate Bond Index Bps Basis points, with one basis point representing one hundredth of one percent CET1 ratio Common equity tier 1 ratio CRD Charles River Development CRD uninstalled revenue backlog Uninstalled revenue backlog to be recognized from signed client contracts that are scheduled to be installed on a rolling 24-month period. It reflects terms currently in effect. It includes SaaS and on-prem license revenue, as well as maintenance and support revenue, and excludes revenue generated from FIX, value-add services, brokerage, and professional services. Diluted earnings per share (EPS) Net income available to common shareholders divided by diluted average common shares outstanding for the noted period EM Emerging markets EMEA Europe, Middle East and Africa EOP End of period EPS Earnings per share ESG Environmental, Social, and Governance ETF Exchange-traded fund FTE Fully taxable equivalent FX Foreign exchange GAAP Generally accepted accounting principles in the United States GLD® SPDR® Gold Shares ETF G-SIB Global systemically important bank HTM Held-to-maturity MMLF Money Market Mutual Fund Liquidity Facility Net interest income (NII) Income earned on interest bearing assets less interest paid on interest bearing liabilities Net interest margin (NIM) Net interest income divided by average interest-earning assets nm Not meaningful On-prem On-premises revenue as recognized in the CRD business Operating leverage Rate of growth of total revenue less the rate of growth of total expenses, relative to the successive prior year period, as applicable Pre-tax margin Income before income tax expense divided by total revenue %Pts Percentage points is the difference from one percentage value subtracted from another Quarter-over-quarter (QoQ) Sequential quarter comparison Return on equity (ROE) Net income less dividends on preferred stock divided by average common equity SaaS Software as a service SCB Stress capital buffer Seasonal expenses Seasonal deferred incentive compensation expenses for retirement-eligible employees and payroll taxes SPY SPDR® S&P 500® ETF Trust SSGA State Street Global Advisors Year-over-year (YoY) Current period compared to the same period a year ago

 

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