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Form 8-K STATE STREET CORP For: Oct 18

October 18, 2021 7:28 AM
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Exhibit 99.1
State Street Corporation
One Lincoln Street
Boston, MA 02111
NYSE: STT
         www.statestreet.com

Boston, MA… October 18, 2021 News Release

STATE STREET REPORTS THIRD QUARTER 2021 EPS OF $1.96; $2.00 EXCLUDING NOTABLE ITEMS(a)
 % changes noted below reflect year-over-year 3Q comparisons

TOTAL FEE REVENUE UP 9%
STRONG SERVICING AND MANAGEMENT FEE GROWTH OF 7% AND 10%
ACHIEVED NEW INVESTMENT SERVICING WINS OF $1.7 TRILLION
EXPENSES UP 1%; FLAT EX-NOTABLES(a)
PRE-TAX MARGIN OF 29.3%; 29.9% EX-NOTABLES(a)
ROE OF 11.6%, UP 2.7% POINTS
Ron O'Hanley, Chairman and Chief Executive Officer: "As we continued to execute against our strategic priorities, our team delivered yet another strong set of results in the third quarter across our business and made measurable progress towards our recently enhanced medium-term financial targets. Robust revenue growth, continued expense discipline and productivity management resulted in strong year-over-year pre-tax margin expansion and earnings growth. Our differentiated solutions and operational capabilities are yielding client benefits across the franchise, as evidenced by another strong quarter of AUC/A servicing wins and a record quarterly revenue performance at Global Advisors."

O'Hanley added: "We announced in the third quarter our intention to acquire BBH Investor Services, which will further strengthen our competitive positioning and market leadership in asset servicing, deepen our international reach, propel our Alpha strategy and create long-term value for our shareholders."

FINANCIAL HIGHLIGHTS
(Table presents summary results, dollars in millions, except per share amounts, or where otherwise noted)3Q212Q213Q20 % QoQ  % YoY
Income statement:
Total fee revenue$2,504 $2,514 $2,306 — %9 %
Net interest income487 467 478 4 2 
Other income(1)53 — nmnm
Total revenue2,990 3,034 2,784 (1)7 
Provision for credit losses(2)(15)— (86.7)nm
Total expenses2,116 2,111 2,103 — 1 
Net income714 763 555 (6)29 
Financial ratios and other metrics:
Diluted earnings per share (EPS)$1.96 $2.07 $1.45 (5)%35 %
Return on average common equity (ROE)11.6 %12.6 %8.9 %(100)bps270 bps
Pre-tax margin29.3 30.9 24.5 (160)480 
AUC/A ($ billions)(1)
43,337 42,597 36,643 2 %18 %
AUM ($ billions)(1)
3,862 3,897 3,148 (1)23 
(1) As of period-end.


(a) See "3Q21 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.


Investor Contact: Ilene Fiszel Bieler +1 617-664-3477          Media Contact: Carolyn Cichon +1 617-664-8672
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3Q21 HIGHLIGHTS
(all comparisons are to 3Q20, unless otherwise noted)

AUC/A and AUM
•Investment Servicing AUC/A as of quarter-end increased 18% to $43.3 trillion, primarily due to higher market levels, client flows, and net new business growth
•Investment Management AUM as of quarter-end increased 23% to $3.9 trillion, mainly reflecting higher market levels and net inflows from ETFs and cash, partially offset by institutional net outflows

New business and strategy execution
•Investment Servicing mandates announced in 3Q21 totaled $1.7 trillion, with quarter-end servicing assets to be installed in future periods of $2.7 trillion
◦Strong servicing wins across client segments and regions, with State Street AlphaSM representing a large proportion of wins in 3Q21
•Reported three new Alpha mandates in 3Q21, with seven live Alpha client mandates as of the end of 3Q21
•Charles River Development (CRD) achieved record new bookings of $28 million and attained annual recurring revenue (ARR)(a) of $239 million in 3Q21, up 12%
•Completed the acquisition of Mercatus and launched State Street Alpha for Private Markets
•Investment Management business drove record revenues with continued strong ETF net inflows
•Announced the proposed acquisition of Brown Brothers Harriman (BBH) Investor Services, which will strengthen State Street's market leadership in asset servicing, deepen international reach, and propel the Alpha strategy

Revenue
•Fee revenue increased 9%, reflecting growth in all businesses:
◦Servicing fees increased 7%
◦Management fees increased 10%
◦FX trading services increased 3%
◦Securities finance increased 26%
◦Software and processing fees increased 15%, mainly reflecting higher CRD revenues
•Net interest income (NII) increased 2%, primarily driven by higher loan balances and growth in the investment portfolio and deposits, as well as the absence of a 3Q20 true-up,(b) partially offset by lower investment portfolio yields

Expenses
•Total expenses increased 1%, primarily reflecting the impact of notable items and currency translation; total expenses were flat, excluding notable items(c)
◦Significant productivity savings have offset higher revenue-related expenses and investments to support client onboarding, operations, as well as technology and product innovation
•Generated positive operating leverage of 6.8% points; 7.4% points excluding notable items(c)




(a) See the endnotes included in the "In This News Release" section for explanations of CRD bookings and annual recurring revenue (ARR).
(b) 3Q20 NII of $478 million included a true-up of approximately $(20) million related to prior periods.
(c) Results excluding notable items and/or currency translation impact are non-GAAP measures. Please refer to the Addendum included with this news release for an explanation and reconciliation of non-GAAP measures.
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Notable items
(Dollars in millions, except EPS amounts)3Q212Q213Q20
Other income(a)
— 53 — 
Acquisition and restructuring costs(18)(11)(15)
Legal and other costs(b)
— 11 9 
Notable items (pre-tax)$(18)$53 $(6)
EPS impact$(0.04)$0.10 $— 

Capital
•In September 2021, State Street announced a temporary suspension of its share repurchase program and raised $1.9 billion of capital through a common stock issuance to finance the proposed acquisition of BBH Investor Services. State Street intends to resume its share repurchase program during 2Q22
•Standardized Common Equity Tier 1 (CET1) of 13.5% increased 1.1% points and 2.3% points compared to 3Q20 and 2Q21, respectively
•Tier 1 leverage ratio of 6.3% decreased (0.3)% compared to 3Q20, but increased 1.1% points compared to 2Q21
•ROE of 11.6% increased 2.7% points compared to 3Q20, but decreased (1.0)% points compared to 2Q21
•In 3Q21, State Street returned a total of $179 million of capital to shareholders in the form of common stock dividends paid
◦Declared a 10% increase to 3Q21 quarterly common stock dividends payable in 4Q21




































(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 and $9 million in 3Q20 included in Other expenses.
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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)3Q212Q213Q20 % QoQ % YoY
Assets under Custody and/or Administration (AUC/A)(1)(2)
$43,337 $42,597 $36,643 1.7 %18.3 %
Assets under Management (AUM)(2)
3,862 3,897 3,148 (0.9)22.7 
Market Indices:(3)
S&P 500 Daily Average4,422 4,184 3,320 5.7 33.2 
S&P 500 EOP4,308 4,298 3,363 0.2 28.1 
MSCI EAFE Daily Average2,338 2,307 1,871 1.3 25.0 
MSCI EAFE EOP2,281 2,305 1,855 (1.0)23.0 
MSCI Emerging Markets Daily Average1,295 1,351 1,084 (4.1)19.5 
MSCI Emerging Markets EOP1,253 1,375 1,082 (8.9)15.8 
Barclays Capital Global Aggregate Bond Index EOP536 541 541 (0.9)(0.9)
Foreign Exchange Volatility Indices:(3)
JPM G7 Volatility Index Daily Average6.0 6.3 8.0 (4.8)(25.0)
JPM Emerging Market Volatility Index Daily Average8.7 9.4 10.9 (7.4)(20.2)
Average Foreign Exchange Rate:
EUR vs. USD1.179 1.205 1.169 (2.2)0.9 
GBP vs. USD1.378 1.398 1.292 (1.4)6.7 
(1) Includes assets under custody of $32,364 billion, $31,947 billion, and $27,333 billion, as of EOP for 3Q21, 2Q21, and 3Q20, 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)3Q212Q211Q214Q203Q20
North America - (US Domiciled) Morningstar Direct Market Data:(1)(2)
Long Term Funds$130 $196 $165 $74 $21 
Money Market21 33 156 (82)(166)
ETF103 123 148 120 60 
Total Flows(3)
$254 $351 $470 $112 $(84)
EMEA - Morningstar Direct Market Data:(1)(4)
Long Term Funds$213 $226 $237 $250 $134 
Money Market48 (10)(91)59 60 
ETF37 51 54 48 32 
Total Flows(3)
$298 $267 $200 $357 $227 
(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) 3Q21 data for North America includes actuals for July and August 2021 and Morningstar estimates for September 2021.
(3) Line items may not sum to total due to rounding.
(4) 3Q21 data for Europe is on a rolling three month basis for June 2021 through August 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)3Q212Q213Q20 % QoQ % YoY
Assets Under Custody and/or Administration(1)(2)
By Product Classification(3):
Mutual funds$11,505 $10,873 $9,183 5.8 %25.3 %
Collective funds, including ETFs15,159 15,048 12,204 0.7 24.2 
Pension products8,497 8,291 7,317 2.5 16.1 
Insurance and other products8,176 8,385 7,939 (2.5)3.0 
Total Assets Under Custody and/or Administration$43,337 $42,597 $36,643 1.7 %18.3 %
By Financial Instrument:
Equities$25,350 $24,792 $20,094 2.3 %26.2 %
Fixed-income12,808 13,079 12,403 (2.1)3.3 
Short-term and other investments5,179 4,726 4,146 9.6 24.9 
Total Assets Under Custody and/or Administration$43,337 $42,597 $36,643 1.7 %18.3 %
(1) As of period-end.
(2) Consistent with past practice, AUC/A values for certain asset classes are based on a lag, typically one-month.
(3) Certain previously reported amounts presented have been reclassified to conform to current-period presentation.


INVESTMENT MANAGEMENT AUM
The following tables present 3Q21 activity in AUM by product category.
(Dollars in billions) EquityFixed- Income Cash Multi-Asset Class Solutions
Alternative Investments(1)
 Total
Beginning balance as of June 30, 2021
$2,461 $610 $381 $207 $238 $3,897 
Net asset flows:
Long-term institutional(2)
(10)— — 4 — (6)
ETF12 4 — — (3)13 
Cash fund— — (12)— — (12)
Total flows, net$2 $4 $(12)$4 $(3)$(5)
Market appreciation/(depreciation)(13)(1)(1)(1)4 (12)
Foreign exchange impact(10)(3)(1)(1)(3)(18)
Total market and foreign exchange impact$(23)$(4)$(2)$(2)$1 $(30)
Ending balance as of September 30, 2021
$2,440 $610 $367 $209 $236 $3,862 
(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.

(Dollars in billions)3Q212Q211Q214Q203Q20
Beginning balance$3,897 $3,591 $3,467 $3,148 $3,054 
Net asset flows:
Long-term institutional(1)
(6)55 (8)(71)(8)
ETF13 21 23 20 1 
Cash fund(12)7 24 30 (58)
Total flows, net$(5)$83 $39 $(21)$(65)
Market appreciation/(depreciation)(12)224 116 306 136 
Foreign exchange impact(18)(1)(31)34 23 
Total market and foreign exchange impact$(30)$223 $85 $340 $159 
Ending balance$3,862 $3,897 $3,591 $3,467 $3,148 
(1) Amounts represent long-term portfolios, excluding ETFs.
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REVENUE
(Dollars in millions)3Q212Q213Q20 % QoQ% YoY
Servicing fees$1,395 $1,399 $1,301 (0.3)%7.2 %
Management fees(a)
526 504 479 4.4 9.8 
Foreign exchange trading services(a)
279 286 270 (2.4)3.3 
Securities finance revenue106 109 84 (2.8)26.2 
Software and processing fees198 216 172 (8.3)15.1 
Total fee revenue$2,504 $2,514 $2,306 (0.4)%8.6 %
Net interest income487 467 478 4.3 %1.9 %
Other income(1)53 — nmnm
Total Revenue$2,990 $3,034 $2,784 (1.5)%7.4 %
Net interest margin (FTE)(b)
0.76 %0.71 %0.85 %5 bps(9)bps

Servicing fees increased 7% compared to 3Q20, primarily driven by higher average equity market levels, client activity and flows, and net new business, partially offset by normal pricing headwinds. Servicing fees were flat compared to 2Q21, mainly due to higher average equity market levels, client activity and flows, which were offset by currency translation.

Management fees(a) increased 10% compared to 3Q20, 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. Management fees were up 4% compared to 2Q21, primarily reflecting higher average equity market levels and lower money market fee waivers.

Foreign exchange trading services(a) increased 3% compared to 3Q20, reflecting higher direct sales and trading revenue and indirect volumes, partially offset by lower FX volatility. Compared to 2Q21, Foreign exchange trading services decreased (2)%, mainly due to seasonally lower client FX volumes and indirect spreads.

Securities finance increased 26% compared to 3Q20, mainly reflecting higher client securities loan balances and spreads, as well as new business wins in Enhanced Custody. Securities finance decreased (3)% compared to 2Q21, primarily driven by lower agency balances.

Software and processing fees increased 15% compared to 3Q20, mainly reflecting higher CRD revenues. Software and processing fees decreased (8)% compared to 2Q21, primarily due to the absence of prior quarter CRD episodic fees and client renewals, partially offset by market-related adjustments.

Net interest income (NII) increased 2% compared to 3Q20, primarily driven by higher loan balances and growth in the investment portfolio and deposits, as well as the absence of a 3Q20 true-up,(c) partially offset by lower investment portfolio yields. Compared to 2Q21, NII increased 4%, mainly due to higher loan balances, growth in the investment portfolio, and higher short-term rates, partially offset by lower investment portfolio yields.


Total revenues were positively impacted by currency translation when compared to 3Q20 by $13 million, but adversely impacted when compared to 2Q21 by $15 million.





(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.
(c) 3Q20 NII of $478 million included a true-up of approximately $(20) million related to prior periods.
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PROVISION FOR CREDIT LOSSES
(Dollars in millions)3Q212Q213Q20 % QoQ % YoY
Allowance for credit losses:
Beginning balance$121 $135 $163 (10.4)%(25.8)%
Provision for credit losses(2)(15)— (86.7)nm
Charge-offs(1)(1)(14)nmnm
Other(1)
(1)2 4 nmnm
Ending Balance$117 $121 $153 (3.3)%(23.5)%
(1) Consists primarily of currency translation

Total provision for credit losses reflects a $2 million reserve release in 3Q21.

EXPENSES
(Dollars in millions)3Q212Q213Q20 % QoQ % YoY
Compensation and employee benefits$1,054$1,077$1,062(2.1)%(0.8)%
Information systems and communications4063983952.0 2.8 
Transaction processing services253263234(3.8)8.1 
Occupancy1021001092.0 (6.4)
Acquisition and restructuring costs18111563.6 20.0 
Amortization of other intangible assets626359(1.6)5.1 
Other22119922911.1 (3.5)
Total Expenses$2,116$2,111$2,1030.2 %0.6 %
Total expenses, excluding notable items(a)
$2,098$2,111$2,097(0.6)%— %
Effective tax rate18.5 %18.6 %18.5 %(10)bps— bps

Compensation and employee benefits decreased (1)% compared to 3Q20, primarily driven by higher salary deferrals and lower headcount, partially offset by higher medical benefits costs. Compensation and employee benefits decreased (2)% compared to 2Q21, primarily reflecting lower headcount and incentive compensation, as well as the impact of currency translation.

Information systems and communications increased 3% and 2% compared to 3Q20 and 2Q21, respectively, mainly reflecting higher technology and infrastructure investments.

Transaction processing services increased 8% compared to 3Q20, primarily due to higher revenue-related costs involving sub-custody volumes and market data. Transaction processing decreased (4)% compared to 2Q21, mainly driven by lower sub-custody volumes and broker fees.

Occupancy decreased (6)% compared to 3Q20, primarily due to footprint optimization. Occupancy increased 2% compared to 2Q21, primarily reflecting site maintenance costs.

Acquisition and restructuring costs increased compared to both 3Q20 and 2Q21, primarily due to costs associated with the proposed acquisition of BBH Investor Services.

Amortization of other intangible assets increased 5% compared to 3Q20, due to a lift-out in 1Q21.(b)






(a) See "3Q21 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) Related to a lift-out of the depository bank and fund administrator activities of Fideuram Bank Luxembourg, a subsidiary of Intesa Sanpaolo.
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Other expenses decreased (3)% compared to 3Q20, largely reflecting lower sub-advisory fees and marketing costs, partially offset by the absence of benefits from 3Q20 notable items.(a) Other expenses increased 11% compared to 2Q21, largely reflecting higher professional fees and the absence of benefits from 2Q21 notable items.(a)

Total expenses were adversely impacted by currency translation when compared to 3Q20 by $10 million, but positively impacted when compared to 2Q21 by $14 million.

TAXES
The effective tax rate in 3Q21 of 18.5% was flat compared to both 3Q20 and 2Q21.

CAPITAL AND LIQUIDITY
The following table presents preliminary estimates of regulatory capital and liquidity ratios for State Street Corporation.
(As of period end)3Q212Q213Q20
Basel III Standardized Approach:
Common Equity Tier 1 ratio13.5 %11.2 %12.4 %
Tier 1 capital ratio15.2 12.9 14.7 
Total capital ratio16.6 14.3 15.7 
Basel III Advanced Approaches:
Common Equity Tier 1 ratio13.8 11.8 12.8 
Tier 1 capital ratio15.5 13.5 15.1 
Total capital ratio16.9 14.8 16.0 
Tier 1 leverage ratio6.3 5.2 6.6 
Supplementary leverage ratio7.5 6.7 8.2 
Liquidity coverage ratio105 %104 %109 %

Standardized capital ratios were binding for all periods included above.

CET1 ratio (standardized) increased 1.1% points compared to 3Q20, largely reflecting higher retained earnings and the issuance of common stock to finance the proposed acquisition of BBH Investor Services, partially offset by higher risk-weighted assets. CET1 ratio (standardized) increased 2.3% points compared to 2Q21, largely reflecting the issuance of common stock to finance the proposed acquisition of BBH Investor Services, higher retained earnings, and the reduction in risk-weighted assets.

Tier 1 leverage ratio decreased (0.3)% points compared to 3Q20. Tier 1 leverage ratio increased 1.1% points compared to 2Q21, mainly driven by the issuance of common stock to finance the proposed acquisition of BBH Investor Services, the decrease in balance sheet size and higher retained earnings.

Liquidity coverage ratio (LCR) for State Street Corporation was approximately 105%, relatively flat to 2Q21 and down (4)% points from 3Q20. LCR for State Street Bank and Trust was approximately 127%.







(a) See "3Q21 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.
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INVESTOR CONFERENCE CALL AND QUARTERLY WEBSITE DISCLOSURE
State Street will webcast an investor conference call today, Monday, October 18, 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 7539853.

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 7539853.

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 3Q21, State Street expects to publish its updates during the period beginning today and ending on or about November 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 $43.3 trillion in assets under custody and/or administration and $3.9 trillion* in assets under management as of September 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 September 30, 2021 includes approximately $60 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. Consistent with past practice, AUC/A values for certain asset classes are based on a lag, typically one-month. 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 $213 million, $230 million, and $239 million in 3Q20, 2Q21, and 3Q21, respectively, includes annualized intercompany revenues of $15 million, $21 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 3Q21. 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.
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•"FTE" denotes fully taxable-equivalent basis; NIM is presented on an FTE-basis. Refer to the Addendum for reconciliations of our FTE-basis presentation.
•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. 3Q21 data for North America (US domiciled) includes Morningstar actuals for July and August 2021 and Morningstar estimates for September 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. 3Q21 data for Europe is on a rolling three month basis for June 2021 through August 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:
•The possibility that some or all of the anticipated business, financial, capital, staffing, operational or other benefits or synergies of the acquisition of BBH's Investor Services business will not be realized when expected or at all, including as a result of the impact of, additional costs or unanticipated negative synergies associated with, or problems arising from, the integration of the BBH Investor Services business acquisition (including challenges in transitioning clients, systems, technology or personnel), as a result of regulatory or operational challenges we may experience, as a result of disruptions from the transaction harming relationships with our clients, employees or regulators, or as a result of the strength of the economy and competitive factors in the areas where we and BBH’s Investor Services business do business;
•The failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect us or the expected benefits of the transaction, perhaps materially), to satisfy any of the other conditions to the acquisition or to arrange financing consistent with our expectations or at all, in each case, on a timely basis or at all; and, if delayed, the resulting effects, including in magnitude and timing of the expected financial benefits of the acquisition of BBH's Investor Services business, of a delayed closing of the acquisition (which expected financial effects are presented and determined assuming a closing date of December 31, 2021);
•The occurrence of any event, change or other circumstances that could give rise to the termination of the definitive purchase agreement in respect of the acquisition;
•Potential adverse reactions or changes to client, regulatory, business or employee relationships, including those resulting from the announcement or completion of the acquisition;
•Demand for the products and services of State Street and of BBH’s Investor Services business;
•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 BBH Investor Services 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;
12
                    
•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;
•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
September 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 October 18, 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)1Q202Q203Q204Q201Q212Q213Q213Q21
vs.
3Q20		3Q21
vs.
2Q21
Income statement
Fee revenue$2,399 $2,378 $2,306 $2,416 $2,483 $2,514 $2,504 8.6 %(0.4)%
Net interest income664 559 478 499 467 467 487 1.9 4.3 
Other income2 — — 2 — 53 (1)nmnm
Total revenue3,065 2,937 2,784 2,917 2,950 3,034 2,990 7.4 (1.5)
Provision for credit losses(1)
36 52 — — (9)(15)(2)nm(86.7)
Total expenses2,255 2,082 2,103 2,276 2,332 2,111 2,116 0.6 0.2 
Income before income tax expense774 803 681 641 627 938 876 28.6 (6.6)
Income tax expense140 109 126 104 108 175 162 28.6 (7.4)
Net income634 694 555 537 519 763 714 28.6 (6.4)
Net income available to common shareholders$580 $662 $517 $498 $489 $728 $693 34.0 (4.8)
Per common share:
Diluted earnings per common share$1.62 $1.86 $1.45 $1.39 $1.37 $2.07 $1.96 35.2 (5.3)
Average diluted common shares outstanding (in thousands)357,993 356,413 357,168 357,719 355,690 351,582 353,494 (1.0)0.5 
Cash dividends declared per common share$.52 $.52 $.52 $.52 $.52 $.52 $.57 9.6 9.6 
Closing price per share of common stock (as of quarter end)53.27 63.55 59.33 72.78 84.01 82.28 84.72 42.8 3.0 
Average for the quarter:
Investment securities$97,560 $116,626 $110,448 $112,018 $107,809 $111,481 $113,635 2.9 1.9 
Total assets251,181 284,688 264,384 277,055 296,328 308,195 291,459 10.2 (5.4)
Total deposits180,160 197,069 189,226 206,343 226,232 242,310 233,266 23.3 (3.7)
Securities on loan:
Average securities on loan$378,200 $377,344 $375,296 $404,022 $429,991 $457,604 $418,111 11.4 (8.6)
End-of-period securities on loan 387,580 381,232 395,075 457,985 451,913 437,094 417,142 5.6 (4.6)
Ratios and other metrics:
Return on average common equity10.9 %12.1 %8.9 %8.4 %8.4 %12.6 %11.6 %270 bps(100)bps
Pre-tax margin25.3 27.3 24.5 22.0 21.3 30.9 29.3 480 (160)
Pre-tax margin, excluding notable items(2)
25.6 27.7 24.7 26.9 22.6 29.7 29.9 520 20 
Net interest margin, fully taxable-equivalent basis1.30 0.93 0.85 0.84 0.75 0.71 0.76 (9)5 
Common equity tier 1 ratio(3)(4)
10.7 12.3 12.4 12.3 10.8 11.2 13.5 110 230 
Tier 1 capital ratio(3)(4)
12.9 14.6 14.7 14.4 12.4 12.9 15.2 50 230 
Total capital ratio(3)(4)
14.1 15.7 15.7 15.3 14.0 14.3 16.6 90 230 
Tier 1 leverage ratio(3)
6.1 6.1 6.6 6.4 5.4 5.2 6.3 (30)110 
Supplementary leverage ratio(3)
5.4 8.3 8.2 8.1 7.2 6.7 7.5 (70)80 
Assets under custody and/or administration (in billions)$31,864 $33,515 $36,643 $38,791 $40,263 $42,597 $43,337 18.3 %1.7 %
Assets under management (in billions)2,689 3,054 3,148 3,467 3,591 3,897 3,862 22.7 (0.9)
(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. Capital ratios as of September 30, 2021 are estimates.
(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)1Q202Q203Q204Q201Q212Q213Q213Q21
vs.
3Q20		3Q21
vs.
2Q21		20202021YTD2021
vs.
YTD2020
Fee revenue:
Servicing fees$1,287 $1,272 $1,301 $1,307 $1,371 $1,399 $1,395 7.2 %(0.3)%$3,860 $4,165 7.9 %
Management fees(1)
464 444 479 493 493 504 526 9.8 4.4 1,387 1,523 9.8 
Foreign exchange trading services(1)
444 325 270 324 346 286 279 3.3 (2.4)1,039 911 (12.3)
Securities finance92 92 84 88 99 109 106 26.2 (2.8)268 314 17.2 
Software and processing fees112 245 172 204 174 216 198 15.1 (8.3)529 588 11.2 
Total fee revenue2,399 2,378 2,306 2,416 2,483 2,514 2,504 8.6 (0.4)7,083 7,501 5.9 
Net interest income:
Interest income868 674 520 513 471 467 487 (6.3)4.3 2,062 1,425 (30.9)
Interest expense204 115 42 14 4 — — (100.0)—361 4 (98.9)
Net interest income664 559 478 499 467 467 487 1.9 4.3 1,701 1,421 (16.5)
Other income:
Gains (losses) related to investment securities, net2 — — 2 — — (1)——2 (1)nm
Other income— — — — — 53 — nmnm— 53 nm
Total other income2 — — 2 — 53 (1)nmnm2 52 nm
Total revenue3,065 2,937 2,784 2,917 2,950 3,034 2,990 7.4 (1.5)8,786 8,974 2.1 
Provision for credit losses36 52 — — (9)(15)(2)nm(86.7)88 (26)nm
Expenses:
Compensation and employee benefits1,208 1,051 1,062 1,129 1,242 1,077 1,054 (0.8)(2.1)3,321 3,373 1.6 
Information systems and communications385 376 395 394 421 398 406 2.8 2.0 1,156 1,225 6.0 
Transaction processing services254 233 234 257 270 263 253 8.1 (3.8)721 786 9.0 
Occupancy109 109 109 162 109 100 102 (6.4)2.0 327 311 (4.9)
Acquisition and restructuring costs11 12 15 12 10 11 18 20.0 63.6 38 39 2.6 
Amortization of other intangible assets58 58 59 59 58 63 62 5.1 (1.6)175 183 4.6 
Other230 243 229 263 222 199 221 (3.5)11.1 702 642 (8.5)
Total expenses2,255 2,082 2,103 2,276 2,332 2,111 2,116 0.6 0.2 6,440 6,559 1.8 
Income before income tax expense774 803 681 641 627 938 876 28.6 (6.6)2,258 2,441 8.1 
Income tax expense140 109 126 104 108 175 162 28.6 (7.4)375 445 18.7 
Net income$634 $694 $555 $537 $519 $763 $714 28.6 (6.4)$1,883 $1,996 6.0 






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)1Q202Q203Q204Q201Q212Q213Q213Q21
vs.
3Q20		3Q21
vs.
2Q21		20202021YTD2021
vs.
YTD2020
Adjustments to net income:
Dividends on preferred stock(2)(3)
$(53)$(32)$(38)$(39)$(30)$(34)$(21)(44.7)%(38.2)%$(123)$(85)(30.9)%
Earnings allocated to participating securities(1)— — — — (1)— nmnm(1)(1)—
Net income available to common shareholders$580 $662 $517 $498 $489 $728 $693 34.0 (4.8)$1,759 $1,910 8.6 
Per common share:
Basic earnings$1.64 $1.88 $1.47 $1.41 $1.39 $2.11 $1.99 35.4 (5.7)$4.99 $5.49 10.0 
Diluted earnings1.62 1.86 1.45 1.39 1.37 2.07 1.96 35.2 (5.3)4.93 5.40 9.5 
Average common shares outstanding (in thousands):
Basic353,746 352,157 352,586 352,974 350,743 345,889 347,718 (1.4)0.5 352,829 348,106 (1.3)
Diluted357,993 356,413 357,168 357,719 355,690 351,582 353,494 (1.0)0.5 356,971 353,376 (1.0)
Cash dividends declared per common share $.52 $.52 $.52 $.52 $.52 $.52 $.57 9.6 9.6 $1.56 $1.61 3.2 
Closing price per share of common stock (as of quarter end) 53.27 63.55 59.33 72.78 84.01 82.28 84.72 42.8 3.0 59.33 84.72 42.8 
Financial ratios:
Effective tax rate18.1 %13.6 %18.5 %16.1 %17.2 %18.6 %18.5 %— bps(10)bps16.6 %18.2 %160 bps
Return on average common equity10.9 12.1 8.9 8.4 8.4 12.6 11.6 270 (100)10.6 10.8 20 
Return on tangible common equity(4)
18.7 19.2 16.8 15.6 13.4 17.317.3 50 — 

17.917.6(30)
Pre-tax margin25.3 27.3 24.5 22.0 21.3 30.9 29.3 480 (160)25.7 27.2 150 
Pre-tax margin, excluding notable items(5)

25.6

27.7

24.7

26.922.6 29.7 29.9 520 20 

26.027.4140 
(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, 2021September 30, 20213Q21
vs.
3Q20		3Q21
vs.
2Q21
Assets:
Cash and due from banks$4,932 $3,685 $4,848 $3,467 $4,552 $4,619 $4,606 (5.0)%(0.3)%
Interest-bearing deposits with banks147,735 90,199 75,967 116,960 107,554 113,347 107,553 41.6 (5.1)
Securities purchased under resale agreements1,037 4,026 4,499 3,106 5,238 3,997 2,847 (36.7)(28.8)
Trading account assets872 883 840 815 786 721 720 (14.3)(0.1)
Investment securities:
Investment securities available-for-sale55,843 56,231 61,780 59,048 60,512 67,497 70,279 13.8 4.1 
Investment securities held-to-maturity purchased under money market liquidity facility(1)
26,808 11,257 4,824 3,299 201 — — nm—
Investment securities held-to-maturity(2)
41,150 41,848 45,394 48,929 46,261 45,182 43,346 (4.5)(4.1)
Total investment securities123,801 109,336 111,998 111,276 106,974 112,679 113,625 1.5 0.8 
Loans32,379 26,860 27,035 27,925 31,585 30,704 32,797 21.3 6.8 
Allowance for loan losses(3)
97 141 134 122 118 100 95 (29.1)(5.0)
Loans, net32,282 26,719 26,901 27,803 31,467 30,604 32,702 21.6 6.9 
Premises and equipment, net(4)
2,225 2,212 2,193 2,154 2,143 2,169 2,191 (0.1)1.0 
Accrued interest and fees receivable3,274 3,235 3,291 3,105 3,302 3,358 3,407 3.5 1.5 
Goodwill7,506 7,538 7,607 7,683 7,629 7,629 7,650 0.6 0.3 
Other intangible assets1,963 1,914 1,870 1,827 2,007 1,933 1,887 0.9 (2.4)
Other assets36,900 30,495 32,061 36,510 45,233 45,472 45,951 43.3 1.1 
Total assets$362,527 $280,242 $272,075 $314,706 $316,885 $326,528 $323,139 18.8 (1.0)
Liabilities:
Deposits:
   Non-interest-bearing$69,404 $42,132 $41,183 $49,439 $57,079 $61,742 $64,885 57.6 5.1 
   Interest-bearing - U.S.110,106 87,197 85,434 102,331 108,372 111,291 108,909 27.5 (2.1)
   Interest-bearing - Non-U.S.77,594 71,133 70,896 88,028 79,442 90,936 85,579 20.7 (5.9)
Total deposits(5)
257,104 200,462 197,513 239,798 244,893 263,969 259,373 31.3 (1.7)
Securities sold under repurchase agreements5,373 3,513 2,430 3,413 587 658 637 (73.8)(3.2)
Short-term borrowings under money market liquidity facility25,665 11,261 4,819 3,302 200 — — nm—
Other short-term borrowings4,835 912 5,838 685 642 635 549 (90.6)(13.5)
Accrued expenses and other liabilities30,151 23,634 22,064 27,503 31,722 23,067 22,288 1.0 (3.4)
Long-term debt15,538 15,587 13,853 13,805 13,836 13,032 12,978 (6.3)(0.4)
Total liabilities338,666 255,369 246,517 288,506 291,880 301,361 295,825 20.0 (1.8)
Shareholders' equity:
Preferred stock, no par, 3,500,000 shares authorized:
Series D, 7,500 shares issued and outstanding742 742 742 742 742 742 742 — — 
Series F, 2,500 shares issued and outstanding742 742 742 742 247 247 247 (66.7)— 
Series G, 5,000 shares issued and outstanding493 493 493 493 493 493 493 — — 
Series H, 5,000 shares issued and outstanding494 494 494 494 494 494 494 — — 
Common stock, $1 par, 750,000,000 shares authorized(6)(7)
504 504 504 504 504 504 504 — — 
Surplus10,155 10,179 10,192 10,205 10,227 10,246 10,763 5.6 5.0 
Retained earnings22,315 22,794 23,128 23,442 23,751 24,300 24,785 7.2 2.0 
Accumulated other comprehensive income (loss)(920)(430)(111)187 (418)(422)(682)514.461.6
Treasury stock, at cost(8)
(10,664)(10,645)(10,626)(10,609)(11,035)(11,437)(10,032)(5.6)(12.3)
Total shareholders' equity23,861 24,873 25,558 26,200 25,005 25,167 27,314 6.9 8.5 
Total liabilities and equity$362,527 $280,242 $272,075 $314,706 $316,885 $326,528 $323,139 18.8 (1.0)
(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 43,728 
(3) Total allowance for credit losses including off-balance sheet commitments
124 163 153 148 135 121 117 
(4) Accumulated depreciation for premises and equipment
4,459 4,591 4,744 4,825 4,960 5,108 5,235 
(5) Average total deposits
180,160 197,069 189,226 206,343 226,232 242,310 233,266 
(6) Common stock shares issued
503,879,642 503,879,642 503,879,642 503,879,642 503,879,642 503,879,642 503,879,642 
(7) Total common shares outstanding
351,943,858 352,383,250 352,797,695 353,156,279 348,032,982 343,503,114 365,629,173 
(8) Treasury stock shares
151,935,784 151,496,392 151,081,947 150,723,363 155,846,660 160,376,528 138,250,469 
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
1Q202Q203Q204Q201Q212Q213Q213Q21
vs.
3Q20		3Q21
vs.
2Q21
(Dollars in millions; fully-taxable equivalent basis)Average balanceAverage ratesAverage 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)%$79,375 — %9.2 %(20.2)%
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 4,061 0.65 (2.9)2.6 
Trading account assets915 — 877 — 900 — 820 — 800 — 729 — 733 0.02 (18.6)0.5 
Investment securities:
Investment securities available-for-sale54,242 1.72 57,462 1.31 59,593 1.13 60,799 1.00 59,191 0.95 66,225 0.88 69,621 0.86 16.8 5.1 
Investment securities held-to-maturity41,273 2.44 40,127 2.32 43,367 1.61 47,007 1.60 47,356 1.54 45,243 1.47 44,014 1.47 1.5 (2.7)
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 — — (100.0)(100.0)
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 1.12 113,635 1.10 2.9 1.9 
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 32,035 2.08 23.3 8.7 
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 24,662 0.08 112.9 17.8 
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 0.71 254,501 0.76 12.7 (4.3)
Cash and due from banks3,856 3,480 3,652 4,403 4,529 5,594 5,103 39.7 (8.8)
Other assets40,693 36,419 34,926 34,454 37,066 36,585 31,855 (8.8)(12.9)
Total assets$251,181 $284,688 $264,384 $277,055 $296,328 $308,195 $291,459 10.2 (5.4)
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 — %$104,575 0.02 %22.4 (5.2)
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)82,230 (0.33)18.3 (1.2)
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)186,805 (0.13)20.6 (3.5)
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)332 — (88.5)(30.4)
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 — — (100.0)(100.0)
Other short-term borrowings2,960 1.32 3,073 0.66 1,724 0.44 1,164 0.25 764 0.14 893 0.27 837 0.17 (51.5)(6.3)
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 13,021 1.59 (12.0)(3.3)
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 5,461 0.78 97.6 (3.9)
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 — 206,456 — 11.9 (3.5)
Non-interest bearing deposits35,573 38,995 34,280 39,057 46,825 48,793 46,461 35.5 (4.8)
Other liabilities23,052 18,678 20,050 20,087 22,423 20,131 12,775 (36.3)(36.5)
Preferred shareholders' equity2,861 2,472 2,472 2,472 2,378 1,976 1,976 (20.1)— 
Common shareholders' equity21,466 21,931 23,014 23,498 23,583 23,252 23,791 3.4 2.3 
Total liabilities and shareholders' equity$251,181 $284,688 $264,384 $277,055 $296,328 $308,195 $291,459 10.2 (5.4)
Excess of rate earned over rate paid1.21 %0.89 %0.83 %0.84 %0.75 %0.71 %0.76 %
Net interest margin1.30 %0.93 %0.85 %0.84 %0.75 %0.71 %0.76 %
Net interest income, fully taxable-equivalent basis$668 $564 $482 $503 $471 $470 $490 
Tax-equivalent adjustment(4)(5)(4)(4)(4)(3)(3)
Net interest income, GAAP-basis(4)
$664 $559 $478 $499 $467 $467 $487 
(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, $62 billion and $52 billion in the first, second and third quarters 2021, respectively. 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%, 0.02% and 0.05% in the first, second and third quarters of 2021, respectively.
(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, $29,352 million and $31,935 million in the first, second and third 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, ($16) million and ($16) million in the first, second and third 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)% in the first, second, third and fourth quarters of 2020, respectively, and approximately (0.11)%, (0.10)% and (0.10)% in the first, second and third quarters of 2021, respectively.
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$75,517 0.14 %$91,291 (0.02)%20.9 %
Securities purchased under resale agreements(2)
3,114 4.68 4,194 0.61 34.7 
Trading account assets897 — 754 0.01 (15.9)
Investment securities:
Investment securities available-for-sale57,109 1.42 65,051 0.89 13.9 
Investment securities held-to-maturity41,595 2.06 45,526 1.49 9.5 
Investment securities held-to-maturity purchased under money market liquidity facility9,516 1.45 420 1.35 (95.6)
Total investment securities
108,220 1.67 110,997 1.14 2.6 
Loans(3)
27,266 2.36 29,858 2.09 9.5 
Other interest-earning assets10,729 0.64 21,322 0.08 98.7 
Total interest-earning assets225,743 1.23 258,416 0.74 14.5 
Cash and due from banks3,663 5,077 38.6 
Other assets37,336 35,150 (5.9)
Total assets$266,742 $298,643 12.0 
Liabilities:
Interest-bearing deposits:
U.S.$85,592 0.17 $105,286 0.01 23.0 
Non-U.S.(4)
66,953 (0.31)81,318 (0.34)21.5 
Total interest-bearing deposits(4)
152,545 (0.04)186,604 (0.14)22.3 
Securities sold under repurchase agreements2,687 0.16 606 0.02 (77.4)
Short-term borrowings under money market liquidity facility9,550 1.22 421 1.21 (95.6)
Other short-term borrowings2,582 0.86 832 0.20 (67.8)
Long-term debt14,553 2.31 13,431 1.64 (7.7)
Other interest-bearing liabilities3,217 2.01 5,332 0.77 65.7 
Total interest-bearing liabilities185,134 0.26 207,226 — 11.9 
Non-interest bearing deposits36,276 47,358 30.5 
Other liabilities20,591 18,407 (10.6)
Preferred shareholders' equity2,601 2,110 (18.9)
Common shareholders' equity22,140 23,542 6.3 
Total liabilities and shareholders' equity$266,742 $298,643 12.0 
Excess of rate earned over rate paid0.97 %0.74 %
Net interest margin1.01 %0.74 %
Net interest income, fully taxable-equivalent basis$1,714 $1,431 
Tax-equivalent adjustment(13)(10)
Net interest income, GAAP-basis(4)
$1,701 $1,421 
(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 $103 billion and $67 billion as of September 30, 2020 and 2021, respectively. Excluding the impact of netting, the average interest rates would be approximately 0.14% and 0.04% for the nine months ended September 30, 2020 and 2021, respectively.
(3) Average loans are presented on a gross basis. Average loans net of expected credit losses as of September 30, 2020 and September 30, 2021 was approximately $27,167 million and $29,745 million, respectively.
(4) Average rates include the impact of FX swap expense of approximately ($39) million and ($53) million for the nine months ended September 30, 2020 and 2021, respectively. Average rates for total interest-bearing deposits excluding the impact of FX swap expense were (0.01)% and (0.10)% for the nine months ended September 30, 2020 and 2021, respectively.
8    
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO HOLDINGS BY ASSET CLASS
Quarters
1Q202Q203Q204Q201Q212Q213Q21
(Dollars in billions, or where otherwise noted)Average BalanceAverage RateAverage 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 %$36.1 0.59 %
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 9.4 0.88 
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 0.2 1.18 
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 0.1 0.86 
Auto & equipment1.0 0.18 0.9 0.12 0.9 0.08 1.1 — 1.1 0.03 1.3 (0.01)1.3 0.03 
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 2.1 0.74 
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 5.4 1.16 
Other0.2 0.17 0.1 0.18 0.2 0.09 0.3 (0.01)0.2 (0.12)0.1 (0.09)0.3 (0.07)
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 9.6 1.54 
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 9.6 1.54 
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 6.5 0.50 
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 5.0 1.27 
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 0.2 0.40 
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 0.8 2.62 
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 0.6 3.79 
Other1.1 1.45 1.2 1.12 0.9 0.84 0.7 1.01 1.3 0.93 1.2 0.94 1.4 0.93 
Total available-for-sale portfolio$54.2 1.72 $57.5 1.31 $59.6 1.13 $60.8 1.00 $59.2 0.95 $66.2 0.88 $69.6 0.86 
1Q202Q203Q204Q201Q212Q213Q21
(Dollars in billions, or where otherwise noted)Average BalanceAverage RateAverage 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 %$5.3 1.73 %
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 5.1 1.19 
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 4.9 1.03 
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 0.2 4.52 
Other— 2.69 — 1.51 — 1.20 — 1.17 — 1.13 — 1.11 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 28.7 1.40 
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 28.7 1.39 
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 — 4.93 
CMBS2.7 2.31 3.5 1.86 4.1 1.66 4.8 1.56 5.0 1.54 4.9 1.61 4.9 1.57 
Held-to-maturity under money market liquidity facility2.0 1.57 19.0 1.49 7.5 1.32 4.2 1.35 1.3 1.35 — 1.28 — — 
Total held-for-maturity portfolio$43.3 2.40 $59.1 1.96 $50.9 1.57 $51.2 1.60 $48.6 1.54 $45.3 1.47 $44.0 1.47 
Total investment securities$97.6 2.03 $116.6 1.69 $110.5 1.33 $112.0 1.27 $107.8 1.21 $111.5 1.12 $113.6 1.10 
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 securities39 %29 %21 %5 %4 %1 %1 %$37.2 52.9 %$73  94% / 6%
Asset-backed securities— 94 6 — — — — 9.1 13.0 19  0% / 100%
Student loans— 27 73 — — — — 0.2 2.5 3 
Credit cards— 100 — — — — — 0.1 1.0 2 
Auto & equipment— 79 21 — — — — 1.3 14.4 1 
Non-U.S. residential mortgage backed securities— 97 3 — — — — 2.1 23.5 12 
Collateralized loan obligation— 100 — — — — — 5.2 56.7 2 
Other— 70 30 — — — — 0.2 1.9 — 
Mortgage-backed securities100 — — — — — — 9.2 13.2 145  99% / 1%
Agency MBS100 — — — — — — 9.2 100.0 145 
Non-agency MBS— — — — — — — — — — 
CMBS99 1 — — — — — 7.0 10.0 28  5% / 95%
Corporate bonds— — 10 39 51 — — 4.8 6.7 55  99% / 1%
Covered bonds— 100 — — — — — 0.2 0.2 3  44% / 56%
Municipal bonds— 25 74 1 — — — 0.8 1.1 48  100% / 0%
Clipper tax-exempt bonds— 9 63 20 8 — — 0.6 0.9 13  0% / 100%
Other— 1 59 40 — — — 1.4 2.0 (12) 90% / 10%
Total available-for-sale portfolio43 %28 %15 %7 %6 %— %— %$70.3 100.0 %$372  73% / 27%
Fair Value$30.6 $19.8 $10.8 $4.7 $4.0 $0.2 $0.2 
UST/AGYAAAAAABBB<BBBNRAmortized Cost% Total
Net Unrealized Pre-tax MTM Gain/(Loss)
(In millions)(2)
Fixed Rate/
Floating Rate(2)
Held-to-maturity investment securities:
Government & agency securities64 %29 %7 %— %— %— %— %$4.2 9.7 %$31  99% / 1%
Asset-backed securities— 28 67 1 3 1 — 5.2 12.1 109  5% / 95%
Student loans— 29 69 — 2 — — 5.0 95.9 50 
Non-U.S. residential mortgage backed securities— 24 27 14 11 22 2 0.2 4.1 59 
Other— — — 100 — — — — — — 
Mortgage-backed securities100 — — — — — — 29.0 66.9 322  100% / 0%
Agency MBS100 — — — — — — 28.9 99.8 294 
Non-agency MBS— 1 4 10 21 43 21 0.1 0.2 28 
CMBS93 7 — — — — — 4.9 11.3 (24) 90% / 10%
Held-to-maturity under money market liquidity facility— — — — — — — — — —  0% / 0%
Total held-for-maturity portfolio84 %7 %9 %— %— %— %— %$43.3 100.0 %$438  87% / 13%
Amortized Cost$36.2 $3.0 $3.8 $0.1 $0.1 $0.1 $— 
Total investment securities$113.6 78% / 12%
(1) At September 30, 2021, the after-tax unrealized MTM gain/(loss) includes after-tax unrealized gain on securities available-for-sale of $275 million, after-tax unrealized gain on securities held-to-maturity of $281 million and after-tax unrealized loss primarily related to securities previously transferred from available-for-sale to held-to-maturity of $43 million.
(2) At September 30, 2021, fixed-to-floating rate securities had a book value of approximately $106 million or 0.09% 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$6.4 AAA$5.3 $— $— $0.2 $— $0.9 
Germany2.3 AA1.5 — 0.7 0.1 — — 
France2.3 AA1.1 — 0.8 0.3 0.1 — 
Australia2.1 AAA0.2 1.2 — 0.2 — 0.5 
Austria1.4 AA1.3 — — 0.1 — — 
Japan1.4 A1.4 — — — — — 
Spain1.3 BBB1.1 — 0.2 — — — 
Netherlands1.2 AA0.5 0.3 0.1 0.3 — — 
United Kingdom1.2 AA— 0.6 0.2 0.4 — — 
Belgium1.1 AA1.1 — — — — — 
Italy0.9 A0.6 0.1 0.2 — — — 
Finland0.9 AA0.8 — 0.1 — — — 
Ireland0.8 A0.8 — — — — — 
Luxembourg0.1 A— — — 0.1 — — 
Other7.3 AAA7.0 — — 0.2 0.1 — 
Total Non-U.S. Investments(3)
$30.7 $22.7 $2.2 $2.3 $1.9 $0.2 $1.4 
U.S. Investments39.6 
Total available-for-sale$70.3 
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$0.1 AAA$0.1 $— $— $— $— $— 
Australia0.1 A— 0.1 — — — — 
Spain0.1 A— 0.1 — — — — 
Other1.4 AAA1.4 — — — — — 
Total Non-U.S. Investments(3)
$1.7 $1.5 $0.2 $— $— $— $— 
U.S. Investments41.6 
Total held-for-maturity$43.3 
Total Investment Portfolio$113.6 
(1) Sovereign debt is reflected in the government / agency column.
(2) As of September 30, 2021, other non-U.S. investments include $6.8 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)1Q202Q203Q204Q201Q212Q213Q213Q21
vs.
3Q20		3Q21
vs.
2Q21
Assets Under Custody and/or Administration(1)
By Product Classification(2):
Mutual funds$7,301 $8,265 $9,183 $9,810 $10,439 $10,873 $11,505 25.3 %5.8 %
Collective funds, including ETFs10,529 11,230 12,204 13,387 14,052 15,048 15,159 24.2 0.7 
Pension products6,723 6,689 7,317 7,594 7,843 8,291 8,497 16.1 2.5 
Insurance and other products7,311 7,331 7,939 8,000 7,929 8,385 8,176 3.0 (2.5)
Total Assets Under Custody and/or Administration$31,864 $33,515 $36,643 $38,791 $40,263 $42,597 $43,337 18.3 1.7 
By Financial Instrument:
Equities
$16,267 $18,190 $20,094 $21,626 $22,825 $24,792 $25,350 26.2 2.3 
Fixed-income
11,096 11,342 12,403 12,834 13,022 13,079 12,808 3.3 (2.1)
Short-term and other investments
4,501 3,983 4,146 4,331 4,416 4,726 5,179 24.9 9.6 
Total Assets Under Custody and/or Administration$31,864 $33,515 $36,643 $38,791 $40,263 $42,597 $43,337 18.3 1.7 
By Geographic Location(3):
Americas$22,787 $24,375 $26,666 $28,245 $29,530 $31,280 $31,934 19.8 2.1 
Europe/Middle East/Africa7,112 7,155 7,675 8,101 8,256 8,716 8,748 14.0 0.4 
Asia/Pacific1,965 1,985 2,302 2,445 2,477 2,601 2,655 15.3 2.1 
Total Assets Under Custody and/or Administration$31,864 $33,515 $36,643 $38,791 $40,263 $42,597 $43,337 18.3 1.7 
Assets Under Custody(4)
By Product Classification(2):
Mutual funds$6,659 $7,532 $7,838 $8,410 $8,811 $9,188 $9,369 19.5 2.0 
Collective funds, including ETFs8,784 9,460 10,210 11,230 11,895 12,785 12,881 26.2 0.8 
Pension products5,386 5,354 5,852 6,085 6,283 6,671 6,798 16.2 1.9 
Insurance and other products2,983 3,053 3,433 3,327 3,145 3,303 3,316 (3.4)0.4 
Total Assets Under Custody$23,812 $25,399 $27,333 $29,052 $30,134 $31,947 $32,364 18.4 1.3 
By Geographic Location(3):
Americas$17,701 $19,226 $20,450 $21,822 $22,715 $24,015 $24,380 19.2 1.5 
Europe/Middle East/Africa4,666 4,714 5,212 5,465 5,564 5,957 5,994 15.0 0.6 
Asia/Pacific1,445 1,459 1,671 1,765 1,855 1,975 1,990 19.1 0.8 
Total Assets Under Custody$23,812 $25,399 $27,333 $29,052 $30,134 $31,947 $32,364 18.4 1.3 
(1) Consistent with past practice, AUC/A values for certain asset classes are based on a lag, typically one-month.
(2) Certain previously reported amounts presented have been reclassified to conform to current-period presentation.
(3) Geographic mix is generally based on the domicile of the entity servicing the funds and is not necessarily representative of the underlying asset mix.
(4) 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)1Q202Q203Q204Q201Q212Q213Q213Q21
vs.
3Q20		3Q21
vs.
2Q21
Assets Under Management
By Asset Class and Investment Approach:
Equity:
Active$69 $77 $82 $85 $84 $83 $79 (3.7)%(4.8)%
Passive1,492 1,768 1,876 2,086 2,198 2,378 2,361 25.9 (0.7)
Total Equity(1)
1,561 1,845 1,958 2,171 2,282 2,461 2,440 24.6 (0.9)
Fixed-Income:
Active86 88 85 90 91 100 101 18.8 1.0 
Passive392 405 424 459 463 510 509 20.0 (0.2)
Total Fixed-Income(1)
478 493 509 549 554 610 610 19.8 — 
Cash(1)(2)
348 376 321 349 372 381 367 14.3 (3.7)
Multi-Asset-Class Solutions:
Active39 41 40 40 34 35 35 (12.5)— 
Passive101 116 124 146 155 172 174 40.3 1.2 
Total Multi-Asset-Class Solutions(1)
140 157 164 186 189 207 209 27.4 1.0 
Alternative Investments(3):
Active28 28 28 39 27 63 58 107.1 (7.9)
Passive134 155 168 173 167 175 178 6.0 1.7 
Total Alternative Investments(1)
162 183 196 212 194 238 236 20.4 (0.8)
Total Assets Under Management$2,689 $3,054 $3,148 $3,467 $3,591 $3,897 $3,862 22.7 (0.9)
By Geographic Location:
North America$1,843 $2,102 $2,163 $2,411 $2,512 $2,749 $2,732 26.3 (0.6)
Europe/Middle East/Africa418 464 483 512 530 570 558 15.5 (2.1)
Asia/Pacific428 488 502 544 549 578 572 13.9 (1.0)
Total Assets Under Management$2,689 $3,054 $3,148 $3,467 $3,591 $3,897 $3,862 22.7 (0.9)
(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 $69 (21.6)%(5.5)%
Equity(3)
473 570 605 708 777 844 849 40.3 0.6 
Fixed-Income(3)
98 107 108 115 122 128 131 21.3 2.3 
Multi-Asset(3)
— — — — — 1 1 nmnm
Total Exchange-Traded Funds$629 $754 $801 $906 $968 $1,046 $1,050 31.1 0.4 
(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
1Q202Q203Q204Q201Q212Q213Q21
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 $195.7 $130.0 
Money Market664.8 259.4 (165.8)(82.3)156.4 33.1 20.8 
ETF22.1 69.6 60.1 119.7 148.4 122.6 103.2 
Total Flows$446.8 $385.3 $(84.3)$111.5 $470.0 $351.4 $254.0 
EMEA-Morningstar Direct Market Data(1)(2)(5)
Long Term Funds(4)
$(137.6)$167.6 $134.4 $249.9 $237.0 $225.8 $213.4 
Money Market11.6 152.8 60.0 58.6 (91.0)(9.8)47.9 
ETF(2.9)36.2 32.4 48.0 54.2 51.1 36.7 
Total Flows$(128.9)$356.6 $226.8 $356.5 $200.2 $267.1 $298.0 
(1) Data providers for North America and EMEA industry flows were changed to Morningstar from other providers in 3Q20 for consistency across regions and other efficiency considerations. Data collection and tabulation methodologies among data providers differ. All periods presented reflect data sourced from Morningstar. Prior period data therefore differs from data previously presented, which was sourced from other data providers. Industry data is provided for illustrative purposes only. It is not intended to reflect State Street’s activity or its clients’ activity and is indicative of only segments of the entire industry.
(2) Source: Morningstar Direct. The data includes long-term mutual funds, ETF’s and Money Market funds. Mutual fund data represents estimates of net new cash flow, which is new sales minus redemptions combined with net exchanges, while ETF data represents net issuance, which is gross issuance less gross redemptions. Data for Fund of Funds, Feeder funds and Obsolete funds were excluded from the series to prevent double counting. Data is from the Morningstar Direct Asset Flows database.
(3) The third quarter of 2021 data for North America (US domiciled) includes Morningstar actuals July and August 2021 and Morningstar estimates for September 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 third quarter of 2021 data for Europe is on a rolling three month basis for June 2021 through August 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)3Q202Q213Q213Q21
 vs.
3Q20		3Q21
 vs.
2Q21		3Q202Q213Q213Q21
 vs.
3Q20		3Q21
 vs.
2Q21		3Q202Q213Q213Q21
 vs.
3Q20		3Q21
 vs.
2Q21		3Q202Q213Q213Q21
 vs.
3Q20		3Q21
 vs.
2Q21
Servicing fees$1,301 $1,399 $1,395 7.2 %(0.3)%$— $— $— — %— %$— $— $— — %— %$1,301 $1,399 $1,395 7.2 %(0.3)%
Management fees— — — — — 479 504 526 9.8 4.4 — — — — — 479 504 526 9.8 4.4 
Foreign exchange trading services252 270 266 5.6 (1.5)18 16 13 (27.8)(18.8)— — — — — 270 286 279 3.3 (2.4)
Securities finance81 106 103 27.2 (2.8)3 3 3 — — — — — — — 84 109 106 26.2 (2.8)
Software and processing fees162 209 204 25.9 (2.4)10 7 (6)nmnm— — — — — 172 216 198 15.1 (8.3)
Total fee revenue1,796 1,984 1,968 9.6 (0.8)510 530 536 5.1 1.1 — — — — — 2,306 2,514 2,504 8.6 (0.4)
Net interest income482 468 491 1.9 4.9 (4)(1)(4)—nm— — — — — 478 467 487 1.9 4.3 
Total other income— — (1)nmnm— — — — — — 53 — nmnm— 53 (1)nmnm
Total revenue2,278 2,452 2,458 7.9 0.2 506 529 532 5.1 0.6 — 53 — —nm2,784 3,034 2,990 7.4 (1.5)
Provision for loan losses— (15)(2)—(86.7)— — — — — — — — — — — (15)(2)—(86.7)
Total expenses1,739 1,755 1,755 0.9 — 358 346 339 (5.3)(2.0)6 10 22 nmnm2,103 2,111 2,116 0.6 0.2 
Income before income tax expense$539 $712 $705 30.8 (1.0)$148 $183 $193 30.4 5.5 $(6)$43 $(22)nmnm$681 $938 $876 28.6 (6.6)
Pre-tax margin23.7 %29.0 %28.7 %500 (30)bps29.2 %34.6 %36.3 %710 170 bps24.5 %30.9 %29.3 %480 (160)bps
Nine Months Ended September 30,
Investment Servicing% ChangeInvestment Management% Change
Other(1)
% ChangeTotal% Change
(Dollars in millions)20202021YTD2021
vs.
YTD2020		20202021YTD2021
vs.
YTD2020		20202021YTD2021
vs.
YTD2020		20202021YTD2021
vs.
YTD2020
Servicing fees$3,860 $4,165 7.9 %$— $— — %$— $— — %$3,860 $4,165 7.9 %
Management fees— — — 1,387 1,523 9.8 — — — 1,387 1,523 9.8 
Foreign exchange trading services998 869 (12.9)41 42 2.4 — — — 1,039 911 (12.3)
Securities finance258 304 17.8 10 10 — — — — 268 314 17.2 
Software and processing fees528 585 10.8 1 3 nm— — — 529 588 11.2 
Total fee revenue5,644 5,923 4.9 1,439 1,578 9.7 — — — 7,083 7,501 5.9 
Net interest income1,716 1,432 (16.6)(15)(11)(26.7)— — — 1,701 1,421 (16.5)
Total other income2 (1)nm— — — — 53 nm2 52 nm
Total revenue7,362 7,354 (0.1)1,424 1,567 10.0 — 53 — 8,786 8,974 2.1 
Provision for loan losses88 (26)nm— — — — — — 88 (26)nm
Total expenses5,315 5,389 1.4 1,096 1,082 (1.3)29 88 nm6,440 6,559 1.8 
Income before income tax expense$1,959 $1,991 1.6 $328 $485 47.9 $(29)$(35)20.7 $2,258 $2,441 8.1 
Pre-tax margin26.6 %27.1 %50 bps23.0 %31.0 %800 bps25.7 %27.2 %150 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)1Q202Q203Q204Q201Q212Q213Q213Q21
vs.
3Q20		3Q21
vs.
2Q21
Allowance for credit losses:
Beginning balance$93 $124 $163 $153 $148 $135 $121 (25.8)%(10.4)%
Provision for credit losses (funded commitments)
29 57 3 (6)— (19)(3)nmnm
Provision for credit losses (unfunded commitments)
3 (4)(2)6 (7)4 1 nmnm
Provision for credit losses (held-to-maturity securities and all other)
4 (1)(1)— (2)— — nmnm
Total provision36 52 — — (9)(15)(2)nm(86.7)
Charge-offs(5)(14)(14)(8)— (1)(1)nmnm
Other(1)
— 1 4 3 (4)2 (1)nmnm
Ending balance(2)
$124 $163 $153 $148 $135 $121 $117 (23.5)(3.3)
Allowance for credit losses:
Loans$97 $141 $134 $122 $118 $100 $95 (29.1)(5.0)
Held-to-maturity securities4 4 3 3 2 2 2 (33.3)—
Unfunded (off-balance sheet) commitments22 18 15 22 15 19 20 33.3 5.3 
All other1 — 1 1 — — — nm—
Ending balance(2)
$124 $163 $153 $148 $135 $121 $117 (23.5)(3.3)
(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)1Q202Q203Q204Q201Q212Q213Q213Q21
vs.
3Q20		3Q21
vs.
2Q21		20202021YTD2021
vs.
YTD2020
Fee Revenue:
Total fee revenue, GAAP-basis$2,399 $2,378 $2,306 $2,416 $2,483 $2,514 $2,504 8.6 %(0.4)%$7,083 $7,501 5.9 %
Total fee revenue, excluding notable items$2,399 $2,378 $2,306 $2,416 $2,483 $2,514 $2,504 8.6 (0.4)$7,083 $7,501 5.9 
Total Revenue:
Total revenue, GAAP-basis$3,065 $2,937 $2,784 $2,917 $2,950 $3,034 $2,990 7.4 %(1.5)%$8,786 $8,974 2.1 %
Less: other income— — — — — (53)— nmnm— (53)nm
Total revenue, excluding notable items$3,065 $2,937 $2,784 $2,917 $2,950 $2,981 $2,990 7.4 0.3 $8,786 $8,921 1.5 
Expenses:
Total expenses, GAAP-basis$2,255 $2,082 $2,103 $2,276 $2,332 $2,111 $2,116 0.6 %0.2 %$6,440 $6,559 1.8 %
Less: Notable expense items:
Acquisition and restructuring costs(1)
(11)(12)(15)(12)(10)(11)(18)20.0 63.6 (38)(39)2.6 
Repositioning charges— — — (133)— — — — —— — — 
Legal and other— — 9 — (29)11 — nmnm9 (18)nm
Total expenses, excluding notable items$2,244 $2,070 $2,097 $2,131 $2,293 $2,111 $2,098 — (0.6)$6,411 $6,502 1.4 
Fee Operating Leverage, GAAP-Basis:
Total fee revenue, GAAP-basis$2,399$2,378$2,306$2,416$2,483$2,514$2,5048.6 %(0.4)%$7,083 $7,501 5.9 %
Total expenses, GAAP-basis2,2552,0822,1032,2762,3322,1112,1160.6 0.2 6,440 6,559 1.8 
Fee operating leverage, GAAP-basis800 bps(60)bps410 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$2,514$2,5048.6 %(0.4)%$7,083 $7,501 5.9 %
Total expenses, excluding notable items (as reconciled above)2,2442,0702,0972,1312,2932,1112,098— (0.6)6,411 6,502 1.4 
Fee operating leverage, excluding notable items860 bps20 bps450 bps
Operating Leverage, GAAP-Basis:
Total revenue, GAAP-basis$3,065$2,937$2,784$2,917$2,950$3,034$2,9907.4 %(1.5)%$8,786 $8,974 2.1 %
Total expenses, GAAP-basis2,2552,0822,1032,2762,3322,1112,1160.6 0.2 6,440 6,559 1.8 
Operating leverage, GAAP-basis680 bps(170)bps30 bps
Operating Leverage, excluding notable items:
Total revenue, excluding notable items (as reconciled above)$3,065$2,937$2,784$2,917$2,950$2,981$2,9907.4 %0.3 %$8,786 $8,921 1.5 %
Total expenses, excluding notable items (as reconciled above)2,2442,0702,0972,1312,2932,1112,098— (0.6)6,411 6,502 1.4 
Operating leverage, excluding notable items740 bps90 bps10 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)1Q202Q203Q204Q201Q212Q213Q213Q21
vs.
3Q20		3Q21
vs.
2Q21		20202021YTD2021
vs.
YTD2020
Net Income Available to Common Shareholders:
Net Income Available to Common Shareholders, GAAP-basis$580$662$517$498$489$728$69334.0 %(4.8)%$1,759$1,9108.6 %
Less: Notable items
Other income—————(53)-53000000——(53)
Acquisition and restructuring costs(1)
111215121011183839
Repositioning charges———133—————
Legal and other——(9)—29(11)—(9)18
Preferred securities redemption(2)(3)
9———5——95
Tax impact of notable items(3)(3)(4)(37)(10)16(5)(10)1
Net Income Available to Common Shareholders, excluding notable items$597$671$519$606$523$691$70636.0 2.2 $1,787$1,9207.4 
Diluted Earnings per Share:
Diluted earnings per share, GAAP-basis$1.62$1.86$1.45$1.39$1.37$2.07$1.9635.2 %(5.3)%$4.93$5.409.5 %
Less: Notable items
Other income—————(0.10)——(0.10)
Acquisition and restructuring costs(1)
0.020.020.030.030.020.020.040.070.08
Repositioning charges———0.27—————
Legal and other——(0.03)—0.06(0.02)—(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$1.97$2.0037.9 1.5 $5.01$5.438.4 
Pre-tax Margin:
Pre-tax margin, GAAP-basis25.3 %27.3 %24.5 %22.0 %21.3%30.9%29.3 %480 bps(160)bps25.7%27.2%150 bps
Less: Notable items
Other income— — — —— (1.2)——(0.4)
Acquisition and restructuring costs(1)
0.3 0.4 0.5 0.40.3 0.40.60.40.4
Repositioning charges———4.5—————
Legal and other—

—

(0.3)

—1.0(0.4)—(0.1)0.2
Pre-tax margin, excluding notable items25.6%27.7%24.7%26.9%22.6%29.7%29.9%5202026.0%27.4%140 
Return on Average Common Equity:
Return on average common equity, GAAP-basis10.9 %12.1 %8.9 %8.4 %8.4 %12.6%11.6%270 bps(100)bps10.6%10.8%20 bps
Less: Notable items
Other income—————(1.0)——(0.3)
Acquisition and restructuring costs(1)
0.20.20.20.20.20.20.30.20.3
Repositioning charges———2.4—————
Legal and other——(0.1)—0.5(0.2)—(0.1)0.1
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)——
Return on average common equity, excluding notable items11.2%12.3%9.0%10.3%9.0%11.9%11.8%280 (10)10.8%10.9%10 
(1) Acquisition and restructuring costs of approximately $18 million in 3Q21, of which $11 million related to our acquisition of CRD and $7 million to our announced acquisition of BBH Investor Services.
(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)1Q202Q203Q204Q201Q212Q213Q213Q21
vs.
3Q20		3Q21
vs.
2Q21		YTD 2020YTD 2021YTD2021
 vs.
YTD2020
Total revenue:
Total revenue, GAAP-basis$3,065 $2,937 $2,784 $2,917 $2,950 $3,034 $2,990 7.4 %(1.5)%$8,786 $8,974 2.1 %
Less: other income— — — — — (53)— nmnm— (53)nm
Total revenue, excluding notable items$3,065 $2,937 $2,784 $2,917 $2,950 $2,981 $2,990 7.4 0.3 $8,786 $8,921 1.5 
Total expenses:
Total expenses, GAAP basis$2,255 $2,082 $2,103 $2,276 $2,332 $2,111 $2,116 0.6 0.2 $6,440 $6,559 1.8 
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)(18)20.0 63.6 (38)(39)2.6 
Legal and other— — 9 — (29)11 — nmnm9 (18)nm
Total expenses, excluding notable items(1)
2,244 2,070 2,097 2,131 2,293 2,111 2,098 — (0.6)6,411 6,502 1.4 
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 2,098 — (0.6)6,260 6,326 1.1 
CRD expenses(58)(61)(62)(67)(67)(70)(73)17.7 4.3 (181)(210)16.0 
CRD related expenses: intangible asset amortization costs(17)(16)(17)(16)(17)(16)(17)— 6.3 (50)(50)— 
Total expenses, excluding notable items, seasonal items, CRD and CRD related expenses$2,018 $1,993 $2,018 $2,048 $2,033 $2,025 $2,008 (0.5)(0.8)$6,029 $6,066 0.6 
Net Income Available to Common Shareholders, GAAP-basis$580$662$517$498$489$728$693 34.0 (4.8)$1,759 $1,910 8.6 
Notable items as reconciled above: pre-tax11 12 6 145 39 (53)18 29 4 
Tax impact on notable items as reconciled above(3)(3)(4)(37)(10)16(5)(10)1 
Preferred security cost9———5—— 9 5 
Net Income Available to Common Shareholders, excluding notable items$597 $671 $519 $606 $523 $691 $706 36.0 2.2 $1,787 $1,920 7.4 
(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)3Q202Q213Q213Q21
vs.
3Q20		3Q21
vs.
2Q21		3Q21
vs.
3Q20		3Q21
vs.
2Q21		3Q21
vs.
3Q20		3Q21
vs.
2Q21
GAAP-Basis Results:
Fee revenue:
Servicing fees$1,301 $1,399 $1,395 $8 $(9)$1,387 $1,404 6.6 %0.4 %
Management fees479 504 526 2 (2)524 528 9.4 4.8 
Foreign exchange trading services270 286 279 — — 279 279 3.3 (2.4)
Securities finance84 109 106 — — 106 106 26.2 (2.8)
Software and processing fees172 216 198 — (1)198 199 15.1 (7.9)
Total fee revenue2,306 2,514 2,504 10 (12)2,494 2,516 8.2 0.1 
Net interest income478 467 487 3 (3)484 490 1.3 4.9 
Total other income— 53 (1)— — (1)(1)nmnm
Total revenue$2,784 $3,034 $2,990 $13 $(15)$2,977 $3,005 6.9 (1.0)
Expenses:
Compensation and employee benefits$1,062 $1,077 $1,054 $5 $(10)$1,049 $1,064 (1.2)(1.2)
Information systems and communications395 398 406 1 (1)405 407 2.5 2.3 
Transaction processing services234 263 253 1 (1)252 254 7.7 (3.4)
Occupancy109 100 102 1 (1)101 103 (7.3)3.0 
Acquisition and restructuring costs15 11 18 — — 18 18 20.0 63.6 
Amortization of other intangible assets59 63 62 — (1)62 63 5.1 — 
Other229 199 221 2 — 219 221 (4.4)11.1 
Total expenses$2,103 $2,111 $2,116 $10 $(14)$2,106 $2,130 0.1 0.9 
Total expenses, excluding notable items - Non-GAAP$2,097 $2,111 $2,098 $10 $(14)$2,088 $2,112 (0.4)— 
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$3,860 $4,165 $79 $4,086 5.9 %
Management fees1,387 1,523 20 1,503 8.4 
Foreign exchange trading services1,039 911 — 911 (12.3)
Securities finance268 314 2 312 16.4 
Software and processing fees529 588 2 586 10.8 
Total fee revenue7,083 7,501 103 7,398 4.4 
Net interest income1,701 1,421 33 1,388 (18.4)
Total other income2 52 — 52 nm
Total revenue$8,786 $8,974 $136 $8,838 0.6 
Expenses:
Compensation and employee benefits$3,321 $3,373 $58 $3,315 (0.2)
Information systems and communications1,156 1,225 7 1,218 5.4 
Transaction processing services721 786 13 773 7.2 
Occupancy327 311 7 304 (7.0)
Acquisition and restructuring costs38 39 — 39 2.6 
Amortization of other intangible assets175 183 3 180 2.9 
Other702 642 12 630 (10.3)
Total expenses$6,440 $6,559 $100 $6,459 0.3 
Total expenses, excluding notable items - Non-GAAP$6,411 $6,502 $100 $6,402 (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)1Q202Q203Q204Q201Q212Q213Q21
Average consolidated total assets$251,181 $284,688 $264,383 $277,055 $296,328 $308,195 $291,459 
Less:
   Average goodwill7,522 7,512 7,603 7,637 7,662 7,652 7,621 
   Average other intangible assets1,996 1,938 1,902 1,849 1,798 1,987 1,901 
Average cash balances held at central banks in excess of required reserves64,383 83,801 69,072 76,086 92,207 97,257 77,207 
   Plus related deferred tax liabilities476 478 483 489 489 490 495 
Average tangible assetsA$177,756 $191,915 $186,289 $191,972 $195,150 $201,789 $205,225 
Consolidated average common shareholders' equity$21,466 $21,931 $23,014 $23,498 $23,583 $23,252 $23,790 
Less:
   Average goodwill7,522 7,512 7,603 7,637 7,662 7,652 7,621 
   Average other intangible assets1,996 1,938 1,902 1,849 1,798 1,987 1,901 
Adjusted average equity11,948 12,481 13,509 14,012 14,123 13,613 14,268 
   Plus related deferred tax liabilities476 478 483 489 489 490 495 
Average tangible common equityB$12,424 $12,959 $13,992 $14,501 $14,612 $14,103 $14,763 
Average tangible common equity ratioB/A7.0 %6.8 %7.5 %7.6 %7.5 %7.0 %7.2 %
GAAP-basis:
Net income available to common shareholders$580 $662 $517 $498 $489 $728 $693 
Return on tangible common equity - Non-GAAP18.7 %19.2 %16.8 %15.6 %13.4 %17.3 %17.3 %
22    
        
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
REGULATORY CAPITAL
Basel III Advanced Approaches(1)
Basel III Standardized Approach(2)
(Dollars in millions)1Q202Q203Q204Q201Q212Q213Q211Q202Q203Q204Q201Q212Q213Q21
RATIOS:
Common equity tier 1 capital11.1 %12.7 %12.8 %13.1 %11.9 %11.8 %13.8 %10.7 %12.3 %12.4 %12.3 %10.8 %11.2 %13.5 %
Tier 1 capital13.4 15.1 15.1 15.4 13.6 13.5 15.5 12.9 14.6 14.7 14.4 12.4 12.9 15.2 
Total capital14.5 16.0 16.0 16.2 15.2 14.8 16.9 14.1 15.7 15.7 15.3 14.0 14.3 16.6 
Tier 1 leverage6.1 6.1 6.6 6.4 5.4 5.2 6.3 6.1 6.1 6.6 6.4 5.4 5.2 6.3 
Supporting Calculations:
Common equity tier 1 capital$12,115 $13,168 $13,825 $14,377 $13,443 $13,691 $15,831 $12,115 $13,168 $13,825 $14,377 $13,443 $13,691 $15,831 
Total risk-weighted assets109,056 103,763 108,112 109,705 113,051 116,458 114,934 112,763 106,839 111,159 117,080 124,324 121,922 117,229 
Common equity tier 1 risk-based capital ratio11.1 %12.7 %12.8 %13.1 %11.9 %11.8 %13.8 %10.7 %12.3 %12.4 %12.3 %10.8 %11.2 %13.5 %
Tier 1 capital$14,586 $15,639 $16,296 $16,848 $15,419 $15,667 $17,807 $14,586 $15,639 $16,296 $16,848 $15,419 $15,667 $17,807 
Total risk-weighted assets109,056 103,763 108,112 109,705 113,051 116,458 114,934 112,763 106,839 111,159 117,080 124,324 121,922 117,229 
Tier 1 risk-based capital ratio13.4 %15.1 %15.1 %15.4 %13.6 %13.5 %15.5 %12.9 %14.6 %14.7 %14.4 %12.4 %12.9 %15.2 %
Total capital$15,771 $16,650 $17,290 $17,810 $17,220 $17,259 $19,397 $15,877 $16,766 $17,413 $17,957 $17,355 $17,379 $19,513 
Total risk-weighted assets109,056 103,763 108,112 109,705 113,051 116,458 114,934 112,763 106,839 111,159 117,080 124,324 121,922 117,229 
Total risk-based capital ratio14.5 %16.0 %16.0 %16.2 %15.2 %14.8 %16.9 %14.1 %15.7 %15.7 %15.3 %14.0 %14.3 %16.6 %
Tier 1 capital$14,586 $15,639 $16,296 $16,848 $15,419 $15,667 $17,807 $14,586 $15,639 $16,296 $16,848 $15,419 $15,667 $17,807 
Leverage exposure(3)
239,861 256,418 247,762 263,490 285,480 298,682 281,952 239,861 256,418 247,762 263,490 285,480 298,682 281,952 
Tier 1 leverage ratio6.1 %6.1 %6.6 %6.4 %5.4 %5.2 %6.3 %6.1 %6.1 %6.6 %6.4 %5.4 %5.2 %6.3 %
(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. Capital ratios as of September 30, 2021 are estimates.
(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. Capital ratios as of September 30, 2021 are estimates.
(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.
(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		As of
September 30, 2021
Tier 1 CapitalA$14,586 $15,639 $16,296 $16,848 $15,419 $15,667 $17,807 
On-and off-balance sheet leverage exposure279,537 198,266 206,985 216,900 223,451 241,743 246,609 
Less: regulatory deductions(9,275)(9,234)(9,261)(9,353)(9,586)(9,500)(9,507)
Total leverage exposure for SLRB$270,262 $189,032 $197,724 $207,547 $213,865 $232,243 $237,102 
Supplementary Leverage RatioA/B5.4 %8.3 %8.2 %8.1 %7.2 %6.7 %7.5 %
24    
October 18, 2021 (NYSE: STT) 3Q 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 third 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 and those tables, which are available on State Street’s website, at http://investors.statestreet.com, and are 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 3Q21 highlights All comparisons are to corresponding prior year periods unless noted otherwise • Total average assets of $291B, up 10% YoY and down (5)% QoQ • ROE of 11.6%, CET1 ratio of 13.5%5 • Returned $179M to shareholders in 3Q21 in the form of common stock dividends paid; declared a 10% increase to 3Q21 quarterly common stock dividend payable in 4Q21 • In September 2021, State Street raised $1.9B of capital through a common stock issuance to finance the proposed acquisition of BBH Investor Services Balance sheet and capital • EPS of $1.96, up 35%; $2.00 ex-notable items, up 38%A • Total revenue of $3.0B ‒ Fee revenue of $2.5B, up 9%, reflecting growth in all businesses ‒ Net interest income of $0.5B, up 2% • Total expenses of $2.1B, up 1%; flat ex-notable itemsA ‒ Pre-tax margin of 29.3%, up 4.8%pts; 29.9% ex-notable items, up 5.2%ptsA ‒ Generated positive operating leverage of 6.8%pts; 7.4%pts ex-notable itemsA Financial performance • Announced proposed acquisition of BBH Investor Services, which will strengthen State Street’s market leadership in asset servicing, deepen international reach, and propel the State Street AlphaSM strategy ‒ Transaction expected to be accretive in year 1 post-closing and to increase earnings and margin growth1 • AUC/A of $43.3T; and servicing wins of $1.7T with new business yet to be installed of $2.7T2 • Reported 3 new Alpha mandates in 3Q21, with 7 of 18 total mandates live as of the end of 3Q212 • Continued momentum in CRD; record bookings of $28M3 and attained annual recurring revenue (ARR) of $239M, up 12%4 • AUM of $3.9T with strong ETF net inflows, particularly from equity and fixed income products2 Business momentum A Financial metrics ex-notable items 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 18.

 
4 3Q20 2Q21 3Q21 2Q21 3Q20 Revenue: Servicing fees $1,301 $1,399 $1,395 (0)% 7% 7% Management fees 479 504 526 4 10 9 Foreign exchange trading services 270 286 279 (2) 3 3 Securities finance 84 109 106 (3) 26 26 Software and processing fees 172 216 198 (8) 15 15 Total fee revenue 2,306 2,514 2,504 (0.4) 8.6 8.2 Net interest income 478 467 487 4 2 1 Other income - 53 (1) nm nm nm Total revenue $2,784 $3,034 $2,990 (1.5)% 7.4% 6.9% Provision for credit losses6 - ($15) ($2) nm nm nm Total expenses $2,103 $2,111 $2,116 0.2% 0.6% 0.1% Net income $555 $763 $714 (6.4)% 28.6% Diluted earnings per share $1.45 $2.07 $1.96 (5.3)% 35.2% Return on average common equity 8.9% 12.6% 11.6% (1.0)%pts 2.7%pts Pre-tax margin 24.5% 30.9% 29.3% (1.6)%pts 4.8%pts Tax rate 18.5% 18.6% 18.5% (0.1)%pts - Ex-notable items, non-GAAP A: Total revenue $2,784 $2,981 $2,990 0.3% 7.4% 6.9% Total expenses $2,097 $2,111 $2,098 (0.6)% 0.0% (0.4)% EPS $1.45 $1.97 $2.00 1.5% 37.9% Pre-tax margin 24.7% 29.7% 29.9% 0.2%pts 5.2%pts (GAAP, $M, except EPS data, or where otherwise noted) Quarters %∆ 3Q20 %∆ ex-currency translationA Summary of 3Q21 financial results A This is a non-GAAP presentation; ex-currency translation percentage changes are in reference to the YoY quarterly comparison between 3Q21 and 3Q20 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 Gain on sale of $53M in 2Q21 included in Other income reflecting a gain on sale of a majority interest in our Wealth Manager Services business. C Legal and other benefits of $11M in 2Q21 and $9M in 3Q20 included in Other expenses. Refer to the Appendix included with this presentation for endnotes 1 to 18. Notable Items 3Q20 2Q21 3Q21 Gain on saleB - 53 - Acquisition and restructuring costs (15) (11) (18) Legal and otherC 9 11 - Total Notable items (pre-tax) ($6) $53 ($18) EPS Impact - $0.10 ($0.04) ($M, except EPS data) Quarters

 
5 AUC/A and AUM levels, markets and flows performance AUC/A and AUM A Market indices7 • 18% increase from 3Q20 largely driven by: – Higher market levels, client flows, and net new business growth • 2% increase from 2Q21 due to: – Higher market levels, net new business growth, and client flows • 23% increase from 3Q20 reflecting: – Higher market levels and net inflows from ETFs and cash, partially offset by institutional net outflows • (1)% decrease from 2Q21 due to: – Net outflows from cash and institutional, and lower market levels, partially offset by ETF net inflows AUC/A ($T, as of period-end)2 AUM ($B, as of period-end) Select industry flows8 -1% +2% $36.6 $42.6 $43.3 3Q20 2Q21 3Q21 3Q20 $3,897 3Q212Q21 $3,862 $3,148 +18% +23% 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 18. 2Q21 3Q20 EOP 0% 28% Daily Avg 6 33 EOP (1) 23 Daily Avg 1 25 EOP (9) 16 Daily Avg (4) 19 (% change) 3Q21 vs S&P 500 MSCI EAFE MSCI EM Barclays Global Agg EOP (1) (1) 3Q20 2Q21 3Q21 Long Term Funds $21 $196 $130 Money Market (166) 33 21 ETF 60 123 103 North America Total (84) 351 254 EMEA Total 227 267 298 ($B) Total flowsB

 
6 Servicing fees of $1,395M up 7% YoY and flat QoQ • Up 7% YoY primarily driven by higher average equity market levels, client activity and flows, and net new business, partially offset by normal pricing headwinds • Flat QoQ mainly due to higher average equity market levels, client activity and flows, which were offset by currency translation Revenue: Servicing fees Servicing fees ($M) 3Q21 performance $1,301 $1,307 $1,371 $1,399 $1,395 3Q20 3Q214Q20 1Q21 2Q21 $2,784 $2,917 $2,950 $3,034 $2,990 YoY +7% QoQ -1% Total revenue AUC/A wins $249 $205 $343 $1,187 $1,657 486 436 463 1,236 2,733 AUC/A to be installed AUC/A sales performance indicators ($B) 2 • Servicing fees were positively impacted by currency translation when compared to 3Q20 by $8M, but adversely impacted compared to 2Q21 by $9M Investment Services business momentum • Continued revenue momentum YoY across all client segments, including Asset Managers, Asset Owners, and Alternatives • Strongest YTD AUC/A wins on record, driven by both EMEA and North America sales2 • Continued Alpha momentum, with Alpha representing a large proportion of wins in 3Q212 • Announced proposed acquisition of BBH Investor Services, which will create the world’s #1 asset servicer,9 further enhance State Street’s global footprint and expand the prospective client base for Alpha Refer to the Appendix included with this presentation for endnotes 1 to 18. Flat +7%

 
7 Revenue: Management fees Management fees ($M) 3Q21 performance $2,784 $2,917 $2,950 $3,034 $2,990 YoY +7% QoQ -1% Total revenue Record Management fees of $526M up 10% YoY and 4% QoQ • Up 10% 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 4% QoQ primarily reflecting higher average equity market levels and lower money market fee waivers +10% +9% ex-FX A AUM $3,148 $3,467 $3,591 $3,897 $3,862 (65) (21) 39 83 (5)Net flows Performance indicators ($B) 2 • Management fees were positively impacted by currency translation when compared to 3Q20 by $2M, but adversely impacted compared to 2Q21 by $2M 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 18. +4% 3Q20 $493 3Q211Q21 $493 4Q20 2Q21 $479 $504 $526 Management fee business momentum • ETFs: Continued strength in equity ETFs; strong momentum in fixed income supported by net inflows in active fixed income ETFs • Institutional: Strong momentum in our Target Date franchise with record flows YTD • Pre-tax margin: Record management fees and disciplined expenses resulted in Investment Management business pre-tax margin of 36%B

 
8 Revenue: Markets, Software and processing fees Markets, Software & processing fees ($M) 3Q21 performance 172 204 174 216 198 84 88 99 109 106 270 324 346 286 279 3Q20 4Q20 1Q21 2Q21 $619 3Q21 $616 $526 $611 $583 FX trading Securities finance Software & processing $2,784 $2,917 $2,950 $3,034 $2,990 Total revenue YoY +7% QoQ -1% +3% +26% +15% YoY % • FX trading services of $279M – Up 3% YoY reflecting higher direct sales and trading revenue and indirect volumes, partially offset by lower FX volatility – Down (2)% QoQ mainly due to seasonally lower client FX volumes and indirect spreads • Securities finance of $106M – Up 26% YoY mainly reflecting higher client securities loan balances and spreads, as well as new business wins in Enhanced Custody – Down (3)% QoQ primarily driven by lower agency balances • Software and processing fees of $198M – Up 15% YoY mainly reflecting higher CRD revenues – Down (8)% QoQ primarily due to the absence of prior quarter CRD episodic fees and client renewals, partially offset by market-related adjustments

 
9 57 59 60 64 62 22 20 27 27 31 20 36 17 63 28 3Q20 2Q211Q214Q20 3Q21 $99 $154 $115 $104 $121 Professional services Software- enabled (including SaaS) 10 On-prem 10 CRD and Alpha mandates +22% 18% YoY growth CRD financial performance (Standalone basis, $M)A CRD 3Q21 highlights • 3Q21 revenue of $121MA – Up 22% YoY primarily due to higher client renewals, professional services, and software-enabled revenue – Down (21)% QoQ largely driven by the absence of prior quarter episodic fees and client renewals • Continued business momentum with record quarterly bookings of $28M3 • Total number of SaaS clients at quarter-end increased by ~13% YoY Alpha highlights • Reported 3 new Alpha mandates in 3Q212 – 18 total Alpha clients signed since inception – 7 of 18 total Alpha client mandates live as of the end of 3Q21 • Completed acquisition of Mercatus and launched Alpha for Private Markets Pre-tax income 11 $37 $48 $37 $84 $48 17 5 4 19 28 213 223 225 230 239 92 98 103 93 105 New bookings 3 ARR 4 Uninstalled revenue backlog A For 3Q21, CRD standalone results include revenue of $121M and pre-tax income of $48M, which includes $15M of revenue associated with affiliates, including SSGA, that is eliminated in consolidation for financial reporting purposes. On a consolidated basis, CRD revenue contributed $106M, including $104M 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 18.

 
10 0.85% 0.71% 0.76% Revenue: Net interest income NII and NIM ($M)12 Average balance sheet highlights ($B)B 3Q20 2Q21 $487 3Q21 $478 $467 Total average assets of $291B up 10% YoY and down (5)% QoQ • Up 10% YoY largely driven by higher total average deposits, partially offset by the absence of MMLF balances • Down (5)% QoQ primarily reflecting the active reduction of excess deposits A 3Q20 NII of $478M included a true-up of ~$(20)M related to prior periods. B Line items are rounded. Refer to the Appendix included with this presentation for endnotes 1 to 18. +2% NIM 12 (FTE, %) $2,784 $3,034 $2,990 Total revenue NII of $487M up 2% YoY and up 4% QoQ • Up 2% YoY primarily driven by higher loan balances and growth in the investment portfolio and deposits, as well as the absence of a 3Q20 true- up,A partially offset by lower investment portfolio yields • Up 4% QoQ mainly due to higher loan balances, growth in the investment portfolio, and higher short-term rates, partially offset by lower investment portfolio yields 3Q20 2Q21 3Q21 Total assets $264 $308 $291 Interest-earning assets 226 266 255 Loans 26 29 32 Investment portfolio (ex. MMLF) 103 111 114 HTM % (ex. MMLF) 42% 41% 39% Duration 13 2.9 3.1 3.1 Total deposits $189 $242 $233 YoY +7% QoQ -1% +4%

 
11 Expenses Expenses (Ex-notable items, non-GAAP, $M) A 3Q21 performance (Ex-notable items, non-GAAP)A $2,103 $2,111 $2,116 38,979 39,146 38,932 GAAP Expense Head- count 297 273 283 234 263 253 395 398 406 1,062 1,077 1,054 2Q213Q20 $2,111 3Q21 $2,097 $2,098 -1% Flat -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. Refer to the Appendix included with this presentation for endnotes 1 to 18. Comp. & benefits Info. sys. Tran. processing Other 14 Occupancy • Total GAAP expenses were adversely impacted by currency translation when compared to 3Q20 by $10M, but positively impacted compared to 2Q21 by $14M • Headcount slightly down YoY and (1)% QoQ Expenses of $2,098M flat YoY and down (1)% QoQ; ex-FX, down (0.4)% YoY A • Compensation and employee benefits of $1,054M – Down (1)% YoY primarily driven by higher salary deferrals and lower headcount, partially offset by higher medical benefits costs – Down (2)% QoQ mainly due to lower headcount and incentive compensation • Information systems and communications of $406M – Up 3% YoY and 2% QoQ mainly reflecting higher technology and infrastructure investments • Transaction processing services of $253M – Up 8% YoY primarily due to higher revenue-related costs involving sub- custody volumes and market data – Down (4)% QoQ driven by lower sub-custody volumes and broker fees • Occupancy of $102M – Down (6)% YoY due to footprint optimization – Up 2% QoQ primarily reflecting site maintenance costs • Other of $283M15 – Down (5)% YoY largely driven by lower sub-advisory fees and marketing costs – Up 4% QoQ primarily due to higher professional fees 102100109 YoY +1% QoQ flat

 
12 Capital ratios Capital ratios 5 (%, as of period-end) Capital highlights Capital ($B, capital metrics as of period-end) 3Q20 2Q21 3Q21 Standardized CET1 CET1 capital $13.8 $13.7 $15.8 Risk weighted assets 111.2 121.9 117.2 Tier 1 leverage Tier 1 capital 16.3 15.7 17.8 Leverage exposure 18 247.8 298.7 282.0 CET1 (Standardized) Tier 1 Leverage SCB 17 Minimum ratio 8.0% Target state 10-11% G-SIB surcharge 16 6.6% 5.2% 6.3% 3Q213Q20 2Q21 Target state Minimum ratio4.0% STT Target5.25-5.75% STT Target • 3Q21 standardized CET1 ratio of 13.5% increased 2.3%pts QoQ primarily reflecting the $1.9B common stock issuance to finance the proposed acquisition of BBH Investor Services, higher retained earnings, and a reduction in RWA • 3Q21 Tier 1 leverage ratio of 6.3% increased 1.1%pts QoQ mainly driven by the common stock issuance to finance the proposed acquisition of BBH Investor Services, a decrease in balance sheet size, and higher retained earnings • Returned $179M to shareholders in 3Q21 in the form of common stock dividends paid and announced a temporary suspension of share repurchases. State Street intends to resume its share repurchase program during 2Q22 12.4% 11.2% 13.5% 4.5% 2.5% 3Q20 3Q212Q21 1.0% Refer to the Appendix included with this presentation for endnotes 1 to 18.

 
13 Summary 3Q21 financial review • EPS of $1.96, up 35%; pre-tax margin of 29.3%, up 4.8%pts; ROE of 11.6%; generated positive operating leverage of 6.8%pts • EPS ex-notable items of $2.00, up 38%A – Fee revenue of $2.5B, up 9%, reflecting growth in all businesses – NII of $0.5B, up 2% YoY and up 4% QoQ – Expenses ex-notable items of $2.1B, flat YoY as significant productivity savings and footprint optimization offset higher revenue related expenses including transaction processing and information systems investmentsA • Business momentum: – Announced proposed acquisition of BBH Investor Services, which will create the world’s #1 asset servicer,9 further enhance State Street’s global footprint, and expand the prospective client base for Alpha – Strong sales momentum in Investment Servicing, with $1.7T of servicing wins, and Alpha mandates2 – 3 new Alpha mandates in 3Q21; 18 total Alpha clients signed since inception; 7 of 18 total Alpha client mandates live as of the end of 3Q212 – AUM of $3.9T in 3Q21 with strong ETF net inflows, particularly from equity and fixed income products2 • Capital: – Returned $179M to shareholders in 3Q21 in the form of common stock dividends paid – In September 2021, State Street raised $1.9B of capital through a common stock issuance to finance the proposed acquisition of BBH Investor Services A Financial metrics ex-notable items 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 18. All comparisons are to corresponding prior year periods unless noted otherwise

 
14 Appendix 3Q21 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 1,968 State StreetB 3Q21 line of business performance Investment Servicing Total revenueA 482 491 1,796 , 3Q20 $2,458M $2,278M 3Q21 Pre-tax income Fee revenue NII Pre-tax margin 23.7% 28.7% +5.0%pts 3Q20 3Q21 $539M $705M YoY % ∆ +9.6% +1.9% +7.9% +30.8% Investment Management Total revenue $506M 3Q20 3Q21 $532M Pre-tax income Pre-tax margin 29.2% 36.3% +7.1%pts $193M 3Q213Q20 $148M YoY % ∆ +5.1% +30.4% Total revenue ex-notable itemsA, C 478 487 2,306 2,504 3Q20 3Q21 $2,784M $2,990M Pre-tax income ex-notable itemsC Fee revenue NII Pre-tax margin ex-notable itemsC 24.7% 29.9% +5.2%pts 3Q213Q20 $687M $894M YoY % ∆ +8.6% +1.9% +7.4% +30.1% A Total revenue also includes Other income of $(1)M in 3Q21. B State Street includes line of business results from Investment Servicing, Investment Management, and Other. Refer to the Addendum for further line of business information. C 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 3Q21 2020 2021 Total revenue, GAAP-basis 3,065 2,937 2,784 2,917 2,950 3,034 2,990 8,786 8,974 Less: Other income - - - - - (53) - - (53) Total revenue, excluding notable items 3,065 2,937 2,784 2,917 2,950 2,981 2,990 8,786 8,921 Total expenses, GAAP basis 2,255 2,082 2,103 2,276 2,332 2,111 2,116 6,440 6,559 Less: Notable expense items: Repositioning charges: Compensation and employee benefits - - - (82) - - - - - Occupancy - - - (51) - - - - - Repositioning charges - - - (133) - - - - - 0 Acquisition and restructuring costs (11) (12) (15) (12) (10) (11) (18) (38) (39) Legal and other: Information systems and communications - - - - (20) - - - (20) Transaction processing services - - - - (8) - - - (8) Other - - 9 - (1) 11 - 9 10 Legal and other - - 9 - (29) 11 - 9 (18) Total expenses, excluding notable items 2,244 2,070 2,097 2,131 2,293 2,111 2,098 6,411 6,502 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 2,098 6,260 6,326 Operating leverage, GAAP-basis (%pts)A 680 bps (170) bps bps 30 bps Operating leverage, excluding notable items (%pts)B 740 90 10 Pre-tax margin, GAAP-basis (%) 25.3% 27.3% 24.5% 22.0% 21.3% 30.9% 29.3% 480 (160) 25.7% 27.2% 150 Notable items as reconciled above (%) 0.3% 0.4% 0.2% 4.9% 1.3% (1.2%) 0.6% 0.3% 0.2% Pre-tax margin, excluding notable items (%) 25.6% 27.7% 24.7% 26.9% 22.6% 29.7% 29.9% 520 20 26.0% 27.4% 140 Net income available to common shareholders, GAAP-basis 580 662 517 498 489 728 693 1,759 1,910 Notable items as reconciled above: pre-tax 11 12 6 145 39 (53) 18 29 4 Tax impact on notable items as reconciled above (3) (3) (4) (37) (10) 16 (5) (10) 1 Preferred securities cost 9 - - - 5 - - 9 5 Net income available to common shareholders, excluding notable items 597 671 519 606 523 691 706 1,787 1,920 Diluted EPS, GAAP-basis 1.62 1.86 1.45 1.39 1.37 2.07 1.96 4.93 5.40 Notable items as reconciled above 0.05 0.02 - 0.30 0.10 (0.10) 0.04 0.08 0.03 Diluted EPS, excluding notable items 1.67 1.88 1.45 1.69 1.47 1.97 2.00 5.01 5.43 Year-to-Date 3Q21 vs. 3Q20 3Q21 vs. 2Q21 7.4% (1.5)% 7.4% 0.3% % Change 0.6% 0.2% 34.0% (4.8)% - (0.6)% - (0.6)% 36.0% 2.2% 35.2% (5.3)% 37.9% 1.5% % Change YTD2021 vs. YTD2020 2.1% 1.5% 1.8% 8.4% 1.4% 1.1% 8.6% 7.4% 9.5%

 
17 Reconciliation of constant currency impacts Reconciliation of Constant Currency FX Impacts (Dollars in millions) 3Q20 2Q21 3Q21 3Q21 vs. 3Q20 3Q21 vs. 2Q21 3Q21 vs. 3Q20 3Q21 vs. 2Q21 3Q21 vs. 3Q20 3Q21 vs. 2Q21 Non-GAAP basis Total revenue, excluding notable items $ 2,784 $ 2,981 $ 2,990 $ 13 $ (15) $ 2,977 $ 3,005 6.9% 0.8% Compensation and employee benefits, excluding notable items $ 1,062 $ 1,077 $ 1,054 $ 5 $ (10) $ 1,049 $ 1,064 (1.2)% (1.2)% Information systems and communications, excluding notable items 395 398 406 1 (1) 405 407 2.5% 2.3% Transaction processing services, excluding notable items 234 263 253 1 (1) 252 254 7.7% (3.4)% Occupancy, excluding notable items 109 100 102 1 (1) 101 103 (7.3)% 3.0% Other expenses, excluding notable itemsA 297 273 283 2 (1) 281 284 (5.4)% 4.0% Total expenses excluding notable items $ 2,097 $ 2,111 $ 2,098 $ 10 $ (14) $ 2,088 $ 2,112 (0.4)% 0.0% Reported Currency Translation Impact Excluding Currency Impact % Change Constant Currency A Other includes Other expenses and Amortization of intangible assets.

 
18 Endnotes 1. Accretion assumes ~$35M of incremental NII, ~$40M of net revenue synergies, ~$260M in total cost synergies, and $100M of amortization expense; does not reflect acquisition and restructuring costs. Gross cost synergies represent the reduction in pre-tax expenses achieved in a given year relative to 2020. Cost synergies are on an EBIT basis and do not reflect acquisition and restructuring costs. Revenue synergies primarily represent opportunities to provide access to State Street’s broader range of FX products and platforms, expand share of wallet with clients and to redirect cash and deposits onto State Street’s balance sheet. Revenue synergies are on an EBIT basis and are net of associated incremental operating costs. State Street EPS is based on GAAP EPS excluding notable items. This is a non-GAAP presentation; refer to slide 20 of the Appendix for additional information on non-GAAP measures. 2. 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. Consistent with past practice, AUC/A values for certain asset classes are based on a lag, typically one-month. 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. 3. 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. 4. CRD 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 $213M, $230M and $239M in 3Q20, 2Q21 and 3Q21, respectively, include annualized intercompany revenue of $15M, $21M and $21M, respectively. 5. 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 3Q21, 2Q21 and 3Q20. Refer to the Addendum for descriptions of these ratios. September 30, 2021 capital ratios are presented as of quarter-end and are estimates. 6. In accordance with ASU 2016-13, the Provision for credit losses for 3Q20, 2Q21, and 3Q21 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. 3Q21 data for North America (U.S. domiciled) includes Morningstar actuals for July and August 2021 and Morningstar estimates for September 2021. 3Q21 data for EMEA is on a rolling three month basis for June 2021 through August 2021. 9. World’s #1 provider of asset servicing based on AUC. Source: Global Custodian, State Street, and BBH Investor Services internal analysis as of quarter-end 2Q21 excluding central securities depositories. AUC for BBH and certain peers based on internal analysis. State Street as reported based on Global Custodian. 10. 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. 11. 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. 12. 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. 13. Duration as of period end and based on total investment portfolio, including MMLF. 14. Other includes Other expenses and Amortization of intangible assets. 15. GAAP Other expenses in 3Q21, 2Q21 and 3Q20 included notable items related to acquisition and restructuring costs of $18M, $11M, and $15M, respectively. GAAP Other expenses in 2Q21 and 3Q20 also included notable items from legal and other benefits of $11M and $9M, respectively. Excluding all these notable items, 3Q21 adjusted Other expenses of $283M was down (5)% compared to 3Q20 adjusted Other expenses of $297M and up 4% compared to 2Q21 adjusted Other expenses of $273M. 16. Based on a calculation date of December 31, 2019, our G-SIB surcharge for 2021 is 1.0%. 17. The preliminary SCB of 2.5% effective on October 1, 2021 is calculated based upon the results of the CCAR 2021 exam. 18. 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: The possibility that some or all of the anticipated business, financial, capital, staffing, operational or other benefits or synergies of the acquisition will not be realized when expected or at all, including as a result of the impact of, additional costs or unanticipated negative synergies associated with, or problems arising from, the integration of the BBH Investor Services business acquisition (including challenges in transitioning clients, systems, technology or personnel), as a result of regulatory or operational challenges we may experience, as a result of disruptions from the transaction harming relationships with our clients, employees or regulators, or as a result of the strength of the economy and competitive factors in the areas where we and BBH’s Investor Services business do business; the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect us or the expected benefits of the transaction, perhaps materially), to satisfy any of the other conditions to the acquisition or to arrange financing consistent with our expectations or at all, in each case, on a timely basis or at all; and, if delayed, the resulting effects, including in magnitude and timing of the expected financial benefits of the acquisition of BBH's Investor Services business, of a delayed closing of the acquisition (which expected financial effects are presented and determined assuming a closing date as of December 31, 2021); the occurrence of any event, change or other circumstances that could give rise to the termination of the definitive purchase agreement in respect of the acquisition; potential adverse reactions or changes to client, regulatory, business or employee relationships, including those resulting from the announcement or completion of the acquisition; demand for the products and services of State Street and of BBH’s Investor Services business; 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 BBH Investor Services 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; 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 Presentation (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 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 BBH Brown Brothers Harriman 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 ETF Exchange-traded fund FTE Fully taxable equivalent FX Foreign exchange GAAP Generally accepted accounting principles in the United States 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 RWA Risk weighted assets SaaS Software as a service SCB Stress capital buffer Seasonal expenses Seasonal deferred incentive compensation expenses for retirement-eligible employees and payroll taxes SSGA State Street Global Advisors Year-over-year (YoY) Current period compared to the same period a year ago YTD Year-to-date

 

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