State Street Reports Third-Quarter 2012 GAAP EPS of $1.36 on Revenue of $2.36 Billion

  State Street Reports Third-Quarter 2012 GAAP EPS of $1.36 on Revenue of
  $2.36 Billion

  Reports EPS of $0.99 on an Operating Basis and Achieves Positive Operating
                                   Leverage

  Completed Acquisition of Goldman Sachs' Hedge Fund Administration Business

   Returns Capital to Shareholders in the Third Quarter by Purchasing $480
  Million of Common Stock and Declaring a Dividend of $0.24 Per Common Share

Business Wire

BOSTON -- October 16, 2012

State Street Corporation (NYSE: STT):

Third-Quarter 2012 GAAP Results

  *Earnings per common share (EPS) of $1.36, increased from $0.98 in the
    second quarter of 2012 and from $1.10 in the third quarter of 2011. The
    third quarter of 2012 includes a net after-tax benefit of $0.35 per share,
    the majority of which pertains to claims associated with the 2008 Lehman
    Brothers bankruptcy.
  *Net income available to common shareholders of $654 million increased from
    $480 million in the second quarter of 2012 and from $543 million in the
    third quarter of 2011.
  *Revenue of $2.36 billion decreased 3% from $2.42 billion and $2.43 billion
    in the second quarter of 2012 and third quarter of 2011, respectively.
  *Net interest revenue of $619 million decreased 8% from $672 million in the
    second quarter of 2012 and increased 7% from $578 million in the third
    quarter of 2011.
  *Expenses decreased 20%  to $1.42 billion from $1.77 billion in the second
    quarter of 2012 and 21% from $1.80 billion in the third quarter of 2011.
  *Return on average common shareholders' equity (ROE) of 13.3% increased
    from 10.0% in the second quarter of 2012 and 11.2% in the third quarter of
    2011.
  *GAAP results include a net pre-tax benefit of $277 million (net after-tax
    benefit of $166 million, or $0.35 per share) composed of:

       *a $362 million benefit related to claims associated with the 2008
         Lehman Brothers bankruptcy; partially offset by
       *a $60 million provision for previously disclosed litigation arising
         out of our asset management and securities lending businesses; and
       *a special $25 million contribution to fund the Company's charitable
         grant-making activities.

Third-Quarter 2012 Operating-basis (Non-GAAP) Results^(1)

  *EPS of $0.99 decreased 2% from $1.01 in the second quarter of 2012 and
    increased 3% from $0.96 in the third quarter of 2011.
  *Net income available to common shareholders of $473 million decreased 4%
    from $494 million in the second quarter of 2012 and 1% from $476 million
    in the third quarter of 2011.
  *Revenue of $2.35 billion declined 3% from $2.43 billion and $2.41 billion
    in the second quarter of 2012 and third quarter of 2011, respectively.
  *Net interest revenue on a fully taxable-equivalent basis, and excluding
    conduit-related discount accretion of $40 million, was $611 million, a
    decrease of 3% from $629 million in the second quarter of 2012, and an
    increase of 8% percent from $564 million in the third quarter of 2011.
    Average excess deposits of $16 billion for the third quarter of 2012
    increased $1 billion from $15 billion for both the second quarter of 2012
    and the third quarter of 2011.
  *Expenses of $1.66 billion decreased 4% from $1.73 billion in the second
    quarter of 2012 and 3% from $1.71 billion in the third quarter of 2011.
  *ROE of 9.6% decreased from 10.3% in the second quarter of 2012 and from
    9.8% in the third quarter of 2011.

Third-Quarter 2012 Operating-basis (Non-GAAP) Highlights^(1)

  *New Business: Awarded $211 billion  in asset servicing mandates and $78
    billion of net new assets to be managed by State Street Global Advisors
    (SSgA).
  *Operating Leverage: Achieved positive operating leverage of 50 basis
    points and 20 basis points compared to the second quarter of 2012 and the
    third quarter of 2011, respectively.
  *Business Operations and Information Technology Transformation program: On
    track to achieve incremental annual pre-tax operating-basis expense
    savings^(1) in the range of $90 million to $100 million in 2012. The
    estimated cumulative expense savings through the end of 2012 are expected
    to be approximately $180 million^(2).
  *Capital^(3): Estimated pro forma tier 1 common ratio  under the recent
    U.S. Basel III Notices of Proposed Rulemaking (NPRs) was 11.3% as of
    September30, 2012.
  *Dividend and share purchases: State Street declared a quarterly common
    stock dividend of $0.24 per share and purchased $480 million of its common
    stock at an average price of $42.11.
  *Goldman Sachs Administration Services (GSAS): Completed the acquisition on
    October 15, 2012, establishing State Street as the market leader in this
    fast-growing market in hedge fund administration^(4).

           Operating basis is a non-GAAP presentation. For an explanation of
   ^(1) operating-basis information, refer to the addendum included with
           this news release.
           Estimated pre-tax, run-rate operating-basis expense savings relate
           only to the Business Operations and Information Technology
      ^(2) Transformation program and are based on projected incremental
           improvement in 2012 from total 2010 operating-basis expenses of
           $6.18 billion; actual expenses of the Company may increase or
           decrease due to other factors.
           Unless otherwise specified, all capital ratios referenced in this
           news release refer to State Street Corporation and not State Street
      ^(3) Bank and Trust Company. Refer to the addendum included with this
           news release for a further discussion of these ratios and for
           reconciliations applicable to the tier 1 common ratio. Also, see
           "Capital" below.
           Based on HFMWeek Assets under Administration Survey, May 31, 2012,
      ^(4) which cited $505.5 billion and $200.6 billion of assets serviced
           for State Street and Goldman Sachs, respectively.

Chairman's Perspective

Joseph L. Hooley, State Street's chairman, president and chief executive
officer, said, “Our third-quarter results reflect continued resilience across
both asset servicing and asset management, partially offset by weakness in
trading services. In a difficult environment, we were able to achieve positive
operating leverage by controlling expenses and by continuing to implement our
Business Operations and Information Technology Transformation program.”

Hooley continued, "Although equity markets have improved, clients remain
conservative in their investment allocations which adversely affects our
revenue. We continue to see demand for our solutions as evidenced by $211
billion of new asset servicing wins, net new assets of $78 billion to be
managed by State Street Global Advisors and a strong pipeline."

"We look forward to integrating the recently closed acquisition of the Goldman
Sachs Administration Services business and introducing these clients to our
broad range of products and services. While acquisitions are consistent with
our long-term growth strategy, one of our highest priorities in the current
environment is returning capital to our shareholders. During the third
quarter, we purchased $480 million of common stock, leaving $840 million
remaining under our $1.8 billion common stock authorization, which we plan to
complete in March of 2013."

“We remain confident in the long-term growth prospects of our business and
continue to execute against our priorities of leveraging the power of our core
franchise, managing our expenses carefully, delivering value to our clients
through innovation and returning capital to our shareholders,” Hooley
concluded.

Non-GAAP Financial Measures

In addition to presenting State Street's financial results in conformity with
U.S. generally accepted accounting principles (GAAP), management also presents
results on a non-GAAP, or “operating” basis, in order to highlight comparable
financial trends and other characteristics with respect to State Street's
business operations from period to period. Descriptions of our non-GAAP, or
operating-basis financial measures, together with reconciliations of
operating-basis information to GAAP-basis information, are provided in the
addendum included with this news release.

The table below provides a summary of selected financial information and key
ratios for the indicated periods, presented on an operating (non-GAAP) basis
where noted. Amounts are presented in millions of dollars, except for
per-share amounts or where otherwise noted.

Financial Highlights^(1)
(Dollars in       Q3 2012      Q2 2012      % Increase  Q3 2011      % Increase
millions)                                      (Decrease)                 (Decrease)
Total              $ 2,348       $ 2,426       (3.2   )%    $ 2,413       (2.7   )%
revenue^(1)
Total              $ 1,664       $ 1,728       (3.7   )%    $ 1,713       (2.9   )%
expenses^(1)
Net income
available to       $ 473         $ 494         (4.3   )%    $ 476         (0.6   )%
common
shareholders^(1)
Earnings per       $ 0.99        $ 1.01        (2.0   )%    $ 0.96        3.1    %
common share^(1)
Return on
average common     9.6       %   10.3      %   (70) bps     9.8       %   (20) bps
equity^(1)
                                                                          
Total assets at    $ 204,522     $ 200,777     1.9    %     $ 208,795     (2.0   )%
period end
Quarterly
average total      $ 195,805     $ 189,095     3.5    %     $ 180,994     8.2    %
assets
Net interest       1.44      %   1.54      %   (10) bps     1.44      %   0 bps
margin
Net unrealized
gain (loss) on
investment         $ 577         $ (54     )                $ (259    )
portfolio,
after-tax
at period end

           Presented on an operating basis, a non-GAAP presentation. Refer to
   ^(1) the addendum included with this news release for explanations of
           our non-GAAP financial measures and for reconciliations of our
           operating-basis financial information.
           

Assets Under Custody and Administration and Assets Under Management
(Dollars in         Q3 2012    Q2 2012    % Increase  Q3 2011    % Increase
billions)                                    (Decrease)               (Decrease)
Assets under
custody and          $ 23,441    $ 22,423    4.5    %     $ 21,510    9.0    %
administration^(1)
(2)
Assets under         $ 2,065     $ 1,908     8.2    %     $ 1,855     11.3   %
management^(2)
                                                                      
Market Indices
S&P 500^® daily      1,401       1,350       3.8    %     1,225       14.4   %
average
MSCI EAFE^® daily    1,468       1,427       2.9    %     1,531       (4.1   )%
average
S&P 500^® average    1,409       1,357       3.8    %     1,214       16.1   %
of month end
MSCI EAFE^®
average of month     1,474       1,424       3.5    %     1,526       (3.4   )%
end

           Includes assets under custody of $17.287 trillion, $16.387
   ^(1) trillion, and $15.714 trillion, as of period-end Q3 2012, Q2 2012
           and Q3 2011, respectively.
      ^(2) At period end.
           

The following table provides the components of operating-basis (non-GAAP)
revenue^(1) for the periods noted:

(Dollars in         Q3 2012    Q2 2012    % Increase  Q3 2011    % Increase
millions)                                    (Decrease)               (Decrease)
Servicing fees       $ 1,100     $ 1,086     1.3    %     $ 1,106     (0.5   )%
Investment           251         246         2.0          229         9.6
management fees
Trading services
revenue:
Foreign exchange     115         129         (10.9  )     204         (43.6  )
trading
Brokerage and        117        126        (7.1   )     130        (10.0  )
other fees
Total trading        232         255         (9.0   )     334         (30.5  )
services revenue
Securities finance   91          143         (36.4  )     85          7.1
revenue
Processing fees      45          48          (6.3   )     90          (50.0  )
and other revenue
Net interest
revenue, fully       611         629         (2.9   )     564         8.3
taxable-equivalent
basis^(1) (2)
Gains (Losses)
related to
investment           18         19         (5.3   )     5          260.0  
securities,
net^(1)
Total
Operating-Basis      $ 2,348    $ 2,426    (3.2   )%    $ 2,413    (2.7   )%
Revenue^(1)

           Refer to the addendum included with this news release for
   ^(1) explanations of our non-GAAP financial measures and for
           reconciliations of our operating-basis financial information.
           Net interest revenue for the third and second quarters of 2012 and
           third quarter of 2011, presented in the table, included $32
           million, $31 million and $32 million, respectively, of
           tax-equivalent adjustments, and excluded $40 million, $74 million
           and $46 million, respectively, of conduit-related discount
           accretion. GAAP-basis net interest revenue for these periods was
      ^(2) $619 million, $672 million and $578 million, respectively. The
           Company continues to expect to record aggregate pre-tax
           conduit-related accretion of approximately $850 million in interest
           revenue from October 1, 2012 through the remaining terms of the
           former conduit securities. This expectation is based on numerous
           assumptions, including holding the securities to maturity,
           anticipated pre-payment speeds, credit quality and sales.
           

Servicing fees increased 1.3% to $1.1 billion in the third quarter of 2012
from the second quarter of 2012, reflecting strength in global equity markets
and net new business. Compared to the third quarter of 2011, servicing fees
decreased 0.5%, primarily due to the impact of a weaker Euro and business mix
partially offset by market impact.

Investment management fees were $251 million, up 2.0% in the third quarter of
2012 from the second quarter of 2012, primarily due to stronger global equity
markets. Compared to third quarter of 2011, management fees were up 9.6%,
primarily due to stronger equity markets and net new business.

Trading services revenue, which includes foreign-exchange trading revenue and
brokerage and other fees, was $232 million, down 9.0% from the second quarter
of 2012 due to weakness in foreign-exchange and transition management. Trading
services revenue decreased 30.5% from the third quarter of 2011, primarily due
to weakness in foreign-exchange trading. Foreign-exchange trading revenue
decreased 10.9% from the second quarter of 2012 and 43.6% from the third
quarter of 2011, primarily due to lower volatility, partially offset by
increased volumes. Brokerage and other fees decreased 7.1% to $117 million
from the second quarter of 2012 due to weakness in transition management.
Compared to the third quarter of 2011, brokerage and other fees decreased
10.0% due to weaker revenue from electronic foreign-exchange trading.

Securities finance revenue was $91 million, a decline of 36.4% from the second
quarter of 2012, due primarily to second-quarter seasonality. Compared to the
third quarter of 2011, securities finance revenue increased 7.1% due to higher
spreads, offset partially by lower volumes.

Processing fees and other revenue declined 50.0% from the third quarter of
2011, primarily due to gains related to real estate and certain leases
recorded in the third quarter of 2011 and amortization expenses related to
tax-advantaged investments in renewable energy in the third quarter of 2012.

Fully taxable-equivalent net interest revenue was $611 million, a decrease of
2.9% from $629 million in the second quarter of 2012, primarily due to lower
yields on earning assets. Compared to the third quarter of 2011, fully
taxable-equivalent net interest revenue was up 8.3% from $564 million, largely
driven by higher earning assets and lower funding costs, partially offset by
lower asset yields.

Net interest margin, including excess deposits held at the Federal Reserve and
other central banks, was 144 basis points in the third quarter of 2012
compared to 154 basis points in the second quarter of 2012 and 144 basis
points in the third quarter of 2011.

Net gains from sales of available-for-sale securities of $24 million were
recorded in the third quarter of 2012, and separately, $6 million of net
losses from other-than-temporary impairment were recorded, resulting in $18
million of net gains related to investment securities.

The following table provides the components of operating-basis (non-GAAP)^(1)
expenses ^ for the periods noted:

(Dollars in       Q3 2012    Q2 2012    % Increase  Q3 2011    % Increase
millions)                                  (Decrease)               (Decrease)
Compensation and
employee           $ 916       $ 942       (2.8   )%    $ 965       (5.1   )%
benefits
Information
systems and        211         208         1.4          191         10.5
communications
Transaction
processing         170         172         (1.2   )     180         (5.6   )
services
Occupancy          115         115         —            119         (3.4   )
Other              252        291        (13.4  )     258        (2.3   )
Total
Operating-Basis    $ 1,664    $ 1,728    (3.7   )%    $ 1,713    (2.9   )%
Expenses^(1)

           Refer to the addendum included with this news release for
   ^(1) explanations of our non-GAAP financial measures and for
           reconciliations of our operating-basis financial information.
           

Compensation and employee benefits decreased 2.8% from the second quarter of
2012 to $916 million and decreased 5.1% from third quarter of 2011. The
decrease from both periods is primarily due to lower compensation and employee
benefit costs associated with the continued implementation of the Business
Operations and Information Technology Transformation program.

Information systems and communications were $211 million in the third quarter
of 2012, up 10.5% from the third quarter of 2011, primarily due to costs
related to activities transitioned in connection with the Business Operations
and Information Technology Transformation program.

Transaction processing services declined 5.6% to $170 million in the third
quarter of 2012 from the third quarter of 2011, primarily due to lower volumes
in the investment servicing business.

Other expenses decreased 13.4% to $252 million in the third quarter of 2012
from the second quarter of 2012, primarily due to lower securities processing
costs and professional fees.

Income Taxes

The effective tax rate on third-quarter 2012 GAAP earnings increased to 28.3%
from 24.9% in the second quarter of 2012 due to the benefits associated with
the 2008 Lehman Brothers bankruptcy. The effective tax rate on operating-basis
earnings for the third quarter of 2012 was 24.5%, largely in line with 24.7%
in the second quarter of 2012 and down from 27.0% in the third quarter of
2011, primarily due to the impact of an increase in tax-advantaged investments
in renewable energy in 2012. The effective tax rate on operating-basis
earnings for full-year 2012 is expected to be approximately 25.5%.

Capital

Capital           September   June 30,   bps Increase   September   bps
ratios^(1):      30,        2012      (Decrease)    30,        Increase
                  2012                                  2011        (Decrease)
Total capital     21.3   %    21.5  %    (20  )  bps    19.5   %    180    bps
ratio
Tier 1 capital    19.8   %    19.9  %    (10  )  bps    17.9   %    190    bps
ratio
Tier 1 leverage   7.6    %    7.7   %    (10  )  bps    7.8    %    (20  ) bps
ratio
Tier 1 common     17.8   %    17.9  %    (10  )  bps    16.0   %    180    bps
ratio
Estimated pro
forma tier 1
common ratio
under Basel III   11.3   %    11.0  %    30      bps    N/A         N/A
NPRs, including
impact of
SSFA^(2)
TCE ratio         7.6    %    7.2   %    40      bps    7.0    %    60     bps

           Unless otherwise specified, all capital ratios referenced in the
           table above and elsewhere in this news release refer to State
           Street Corporation and not State Street Bank and Trust Company.
           Refer to the addendum included with this news release for a further
           description of these ratios, and for reconciliations applicable to
   ^(1) the tier 1 common and tangible common equity, or TCE, ratios
           presented in this table. All ratios are presented at period end.
           Total capital, tier 1 capital and tier 1 leverage ratios as of
           September 30, 2012 presented in the table above were down modestly
           from June 30, 2012, primarily due to slightly higher total
           risk-weighted assets (slightly higher average assets for the
           leverage ratio) partially offset by higher capital levels.
           Basel III capital ratios reflect the impact estimated by State
           Street of the Notices of proposed rulemaking (NPRs) issued by
           federal banking regulators in June 2012 regarding capital,
           primarily the application of the Simplified Supervisory Formula
           Approach (SSFA). The Capital rules in the NPR are not final. This
      ^(2) estimate is subject to change based on regulatory clarifications,
           further analysis, the results of industry comment on the NPRs and
           other factors. Refer to the addendum included with this news
           release for information concerning the specified capital ratios and
           for reconciliations of the Basel III tier 1 common ratio to the
           tier 1 common ratio calculated under currently applicable
           regulatory guidelines.
      ^N/A Not applicable.

The estimated pro forma Basel III tier 1 common ratio as of September30, 2012
was 11.3%. As noted above, this includes the estimated impact of the NPRs on
the investment portfolio. This estimate would be 11.9% as of September30,
2012, if adjusted on a pro forma basis (i) to hypothetically give effect as of
that date to all of the projected run-off and reinvestment through January 1,
2015 of our investment portfolio assets affected by the SSFA, and (ii)
assuming the acquisition of GSAS occurred on September30, 2012. Refer to the
addendum included with this news release for a reconciliation of this ratio.

Common Stock Dividend and Share Repurchase Program

The Company purchased approximately 11.4 million shares of its common stock at
a total cost of $480 million in the third quarter of 2012 and declared a
quarterly common stock dividend of $0.24 per share. The Company has $840
million remaining under its $1.8 billion stock purchase program authorization,
effective through March 2013.

Preferred Stock Dividends

In the third quarter, the Company issued fixed-rate perpetual preferred stock
and redeemed its floating-rate preferred stock to take advantage of the low
interest-rate environment. As a result, for the third quarter of 2012, the
Company recorded preferred stock dividends composed of approximately $7
million on its floating-rate Series A perpetual preferred stock, which was
redeemed on October 4, 2012, and approximately $8 million on the new Series C
fixed-rate perpetual preferred stock, issued on August 21, 2012. The dividend
on the new Series C perpetual preferred stock covers the first dividend period
which runs from the date of issuance through December 15, 2012. As a result,
the Company will not accrue a Series C perpetual preferred stock dividend in
the fourth quarter of 2012.

Additional Information

All 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. Operating-basis return on average common
equity utilizes annualized operating-basis net income available to common
equity in the calculation. Operating leverage is defined as the rate of growth
of total revenue less the rate of growth of total expenses, each as determined
on an operating basis.

Investor Conference Call

State Street will webcast an investor conference call today, Tuesday, October
16, 2012, at 9:30 a.m. EDT, available at www.statestreet.com/stockholder. The
conference call will also be available via telephone, at +1 888/391-4233 in
the U.S. or at +1 706/679-5594 outside of the U.S. The Conference ID is
#32878361. Recorded replays of the conference call will be available on the
web site, and by telephone at +1 855/859-2056 inside the U.S. or at +1
404/537-3406 outside the U.S. beginning approximately two hours after the
call's completion. The Conference ID is 32878361. 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 (including
those concerning our investment portfolio), and additional financial
information are available on State Street's website, at
www.statestreet.com/stockholder under “Investor Relations--Investor News &
Events" and under the title “Events and Presentations.”

State Street Corporation (NYSE: STT) is the world's leading provider of
financial services to institutional investors including investment servicing,
investment management and investment research and trading. With $23.441
trillion in assets under custody and administration and $2.065 trillion in
assets under management at September30, 2012, State Street operates in 29
countries and more than 100 geographic markets and employs 29,650 worldwide.
For more information, visit State Street's website at www.statestreet.com or
call +1 877/639-7788 [NEWS STT] toll-free in the United States and Canada, or
+1 678/999-4577 outside those countries.

Forward-Looking Statements

This news release contains forward-looking statements as defined by United
States securities laws, including statements relating to our goals and
expectations regarding our business, financial and capital condition
(including without limitation, our capital ratios under Basel III), results of
operations, investment portfolio performance and strategies, the financial and
market outlook, governmental and regulatory initiatives and developments, and
the business environment. Forward-looking statements are often, but not
always, identified by such forward-looking terminology as "plan," "expect,"
"look," "believe," "anticipate," "estimate," "seek," "may," "will," "trend,"
"target,” 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 date subsequent to October16, 2012.

Important factors that may affect future results and outcomes include, but are
not limited to:

  *the financial strength and continuing viability of the counterparties with
    which we or our clients do business and to which we have investment,
    credit or financial exposure including, for example, the direct and
    indirect effects on counterparties of the current sovereign debt risks in
    Europe and other regions;
  *financial market disruptions or economic recession, whether in the U.S.,
    Europe or other regions internationally;
  *increases in the volatility of, or declines in the level of, our net
    interest revenue, changes in the composition of the assets on our
    consolidated statement of condition and the possibility that we may be
    required to change the manner in which we fund those assets;
  *the liquidity of the U.S. and international securities markets,
    particularly the markets for fixed-income securities and inter-bank
    credits, and the liquidity requirements of our clients;
  *the level and volatility of interest rates and the performance and
    volatility of securities, credit, currency and other markets in the U.S.
    and internationally;
  *the credit quality, credit agency ratings, and fair values of the
    securities in our investment securities portfolio, a deterioration or
    downgrade of which could lead to other-than-temporary impairment of the
    respective securities and the recognition of an impairment loss in our
    consolidated statement of income;
  *our ability to attract deposits and other low-cost, short-term funding,
    and our ability to deploy deposits in a profitable manner consistent with
    our liquidity requirements and risk profile;
  *the manner in which the Federal Reserve and other regulators implement the
    Dodd-Frank Act, Basel III, European directives with respect to banking and
    financial instruments and other regulatory initiatives in the U.S. and
    internationally, including regulatory developments that result in changes
    to our operating model or other changes to the provision of our services;
  *adverse changes in required regulatory capital ratios, whether arising
    under the Dodd-Frank Act, Basel II or Basel III, or due to changes in
    regulatory positions or regulations in jurisdictions in which we engage in
    banking activities;
  *increasing requirements to obtain necessary approvals of the Federal
    Reserve and our other regulators for the use, allocation or distribution
    of our capital or for other specific capital actions or programs,
    including acquisitions, dividends and equity repurchases, without which
    our growth plans, distributions to shareholders, equity purchase programs
    or other capital initiatives may be restricted;
  *changes in law or regulation that may adversely affect our, our clients'
    or our counterparties' business activities and the products or services
    that we sell, including additional or increased taxes or assessments
    thereon, capital adequacy requirements and changes that expose us to risks
    related to compliance;
  *the maintenance of credit agency ratings for our debt and depository
    obligations as well as the level of credibility of credit agency ratings;
  *delays or difficulties in the execution of our previously announced
    business operations and information technology transformation program,
    which could lead to changes in our estimates of the charges, expenses or
    savings associated with the planned program, resulting in increased
    volatility of our earnings;
  *the results of, and costs associated with, government investigations,
    litigation, and similar claims, disputes, or proceedings;
  *the possibility that our clients will incur substantial losses in
    investment pools where we act as agent, and the possibility of significant
    reductions in the valuation of assets;
  *adverse publicity or other reputational harm;
  *dependencies on information technology, complexities and costs of
    protecting the security of our systems and difficulties with protecting
    our intellectual property rights;
  *our ability to grow revenue, attract and/or retain and compensate highly
    skilled people, control expenses and attract the capital necessary to
    achieve our business goals and comply with regulatory requirements;
  *potential changes to the competitive environment, including changes due to
    regulatory and technological changes, the effects of consolidation, and
    perceptions of State Street as a suitable service provider or
    counterparty;
  *potential changes in how clients compensate us for our services, and the
    mix of services that clients choose from us;
  *the risks that acquired businesses and joint ventures will not achieve
    their anticipated financial and operational benefits or will not be
    integrated successfully, or that the integration will take longer than
    anticipated, that expected synergies will not be achieved or unexpected
    disynergies will be experienced, that client and deposit retention goals
    will not be met, that other regulatory or operational challenges will be
    experienced and that disruptions from the transaction will harm
    relationships with clients, employees or regulators;
  *the ability to complete acquisitions, divestitures and joint ventures,
    including the ability to obtain regulatory approvals, the ability to
    arrange financing as required and the ability to satisfy closing
    conditions;
  *our ability to recognize emerging clients' needs and to develop products
    that are responsive to such trends and profitable to the company; the
    performance of and demand for the products and services we offer,
    including the level and timing of redemptions and withdrawals from our
    collateral pools and other collective investment products; and the
    potential for new products and services to impose additional costs on us
    and expose us to increased operational risk;
  *our ability to measure the fair value of the investment securities on our
    consolidated statement of condition;
  *our ability to control operating risks, data security breach risks,
    information technology systems risks and outsourcing risks, and our
    ability to protect our intellectual property rights, the possibility of
    errors in the quantitative models we use to manage our business and the
    possibility that our controls will prove insufficient, fail or be
    circumvented;
  *changes in accounting standards and practices; and
  *changes in tax legislation and in the interpretation of existing tax laws
    by U.S. and non-U.S. tax authorities that affect the amount of taxes due.

Other important factors that could cause actual results to differ materially
from those indicated by any forward-looking statements are set forth in our
2011 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 speak only as of the date hereof, October16,
2012, and we do not undertake efforts to revise those forward-looking
statements to reflect events after that date.

Photos/Multimedia Gallery Available:
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50442368&lang=en

Multimedia
Available:http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50442368&lang=en

Contact:

State Street Corporation
Investor Contact:
Valerie Haertel, +1 617-664-3477
OR
Media Contact:
Hannah Grove, +1 617-664-3377
 
Press spacebar to pause and continue. Press esc to stop.