State Street Corporation : State Street Corporation Reports Fourth-Quarter and Full Year 2012 Results

State Street Corporation : State Street Corporation Reports Fourth-Quarter and
                            Full Year 2012 Results



STATE STREET REPORTS FOURTH-QUARTER 2012 GAAP EPS OF $1.00 ON REVENUE OF $2.45
   BILLION; FULL-YEAR 2012 GAAP EPS OF $4.20, UP 10.8% COMPARED TO 2011 ON
                           REVENUE OF $9.65 BILLION

FOURTH-QUARTER OPERATING-BASIS EPS OF $1.11; FULL-YEAR OPERATING-BASIS EPS OF
                                    $3.95

                  ACHIEVES POSITIVE OPERATING LEVERAGE^(2)

Boston, MA ...January18, 2013

In announcing today's financial results, Joseph L. Hooley, State Street's
chairman, president and chief executive officer, said, "The fourth-quarter and
full-year 2012 results reflect continued resilience across our asset servicing
and asset management businesses. We achieved these results in a constrained
revenue environment, generating positive operating leverage and continuing to
invest in key markets that position us for further growth.

"While equity markets improved in the fourth quarter, our clients remained
cautious for most of the quarter given the uncertainty surrounding the global
economic environment and the U.S. fiscal cliff. We experienced strong demand
for our solutions as evidenced by $649 billion in asset servicing wins and a
continued strong pipeline.

"We remain focused on executing our Business Operations and Information
Technology Transformation program. Additionally, to capture further
efficiencies and cost savings, today we announced a separate reduction in
force to align our expenses with our business outlook for 2013.

"We purchased approximately 11 million shares this quarter for $480 million
under our $1.8 billion common stock purchase plan and declared a $0.24 per
share common stock dividend. Earlier this month, we submitted our 2013 capital
plan to the Federal Reserve Bank. We continue to prioritize the return of
capital to our shareholders.

"As we look ahead, we are encouraged by the recent market strength and early
signs of client re-risking. We remain confident in the long-term growth
prospects of our business and are focused on servicing clients, growing
revenues organically, managing expenses prudently, and returning capital to
shareholders," Hooley concluded.

Fourth-Quarter 2012 GAAP Results

  *Earnings per common share (EPS) of $1.00 decreased from $1.36 in the third
    quarter of 2012 and increased from $0.76 in the fourth quarter of 2011. 
    
  *Net income available to common shareholders of $468 million decreased from
    $654 million in the third quarter of 2012 and increased from $371 million
    in the fourth quarter of 2011.
    
  *Revenue of $2.45 billion increased 4% from the third quarter of 2012 and
    increased 6% from the fourth quarter of 2011.
    
  *Net interest revenue of $622 million increased slightly from $619 million
    in the third quarter of 2012 and increased 3% from the fourth quarter of
    2011.
    
  *Expenses of $1.86 billion increased from $1.42 billion in the third
    quarter of 2012, primarily the result of a non-recurring benefit in the
    third quarter, and increased 4% from the fourth quarter of 2011.
    
  *Return on average common shareholders' equity (ROE) of 9.3% decreased from
    13.3% in the third quarter of 2012 and increased from 7.8% in the fourth
    quarter of 2011.
    
  *Recorded pre-tax acquisition and restructuring costs of $139 million,
    primarily related to severance and benefits costs for targeted staff
    reductions expected to be substantially completed during 2013. This
    additional expense control measure was taken to better align the Company's
    expenses to its business outlook for 2013 and will involve the reduction
    of approximately 630 positions worldwide.

Full-Year 2012 GAAP Results

  *EPS of $4.20, increased 10.8% from $3.79 in 2011. Revenue increased 0.6%
    to $9.65 billion from $9.59 billion in 2011. Expenses decreased 2.4% to
    $6.89 billion from $7.06 billion in 2011. ROE rose to 10.3% in 2012 from
    10.0% in 2011.

Fourth-Quarter 2012 Operating-Basis (Non-GAAP) Results^(1)

  *EPS of $1.11 increased 12% from $0.99 in the third quarter of 2012 and
    increased 19% from $0.93 in the fourth quarter of 2011.
    
  *Net income available to common shareholders of $521 million increased 10%
    from $473 million in the third quarter of 2012 and increased 15% from $454
    million in the fourth quarter of 2011.
    
  *Revenue of $2.46 billion increased 3.2% from the third quarter of 2012 and
    increased 7.0% from the fourth quarter of 2011.
    
  *Net interest revenue on a fully taxable-equivalent basis, and excluding
    conduit-related discount accretion of $52 million, was $600 million, a
    slight decrease from $611 million in the third quarter of 2012, and a 4%
    percent increase from $577 million in the fourth quarter of 2011
    
  *Expenses of $1.71 billion increased 3.0% from the third quarter of 2012
    and increased 4.8% from the fourth quarter of 2011.
    
  *ROE of 10.3% increased from 9.6% in the third quarter of 2012 and
    increased from 9.5% in the fourth quarter of 2011.

Full-Year 2012 Operating-Basis (Non-GAAP) Results^(1)

  *EPS increased 5.9% to $3.95 from $3.73 in 2011. Revenue of $9.73 billion
    increased 1.74% from $9.56 billion in 2011, and expenses of $6.91 billion
    increased 1.71% from $6.79 billion in 2011. ROE decreased to 9.7% in 2012
    from 9.9% in 2011.

Fourth-Quarter 2012 and Full-Year 2012 Operating-Basis (Non-GAAP)
Highlights^(1)

  *New Business: Awarded $649 billion in asset servicing mandates and $24
    billion in net new assets to be managed at SSgA, excluding net outflows in
    the securities lending cash collateral pools.
    
  *Operating Leverage^(2): Achieved positive operating leverage of 20 basis
    points and 220 basis points compared to the third quarter of 2012 and the
    fourth quarter of 2011, respectively. For full-year 2012, the Company
    achieved 3 basis points of positive operating leverage.
    
  *Business Operations and Information Technology Transformation program^(3):
    Achieved incremental pre-tax expense savings of $112 million in 2012,
    resulting in cumulative pre-tax expense savings of $198 million since the
    program's inception in 2010 through the end of 2012. The incremental
    pre-tax expense savings in 2013 are forecasted to be approximately $220
    million.
    
  *Capital^(4): Estimated pro forma tier 1 common ratio under the June 2012
    U.S. Basel III Notices of Proposed Rulemaking (NPRs) was 10.8% as of
    December31, 2012.
    
  *Dividend and stock purchases: Purchased $480 million of our common stock
    at an average price of $43.99 and declared a quarterly common stock
    dividend of $0.24 per share.
    
  *The acquired Goldman Sachs Administration Services (GSAS) business
    contributed $24 million to revenues and $13 million to expenses subsequent
    to October 15, 2012, when the acquisition was completed.

^(1) Operating basis is a non-GAAP presentation. For an explanation of
operating-basis information and related reconciliations, refer to the addendum
included with this news release.

^(2) 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.

^(3) Estimated pre-tax expense savings relate only to the Business Operations
and Information Technology Transformation program and are based on projected
improvement from total 2010 operating-basis expenses of $6.18 billion; actual
total expenses of the Company have increased since 2010, and may in the future
increase or decrease, due to other factors.

^(4) Unless otherwise specified, all capital ratios referenced 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
discussion of these ratios and for reconciliations applicable to the tier 1
common ratio. Also, see "Capital" below.

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                                % Increase               % Increase
millions)          Q4 2012      Q3 2012    (Decrease)    Q4 2011    (Decrease)
Total            $   2,463    $   2,387         3.2 %  $   2,301         7.0 %
revenue^(1)
Total            $   1,714    $   1,664         3.0 %  $   1,636         4.8 %
expenses^(1)
Net income
available to     $     521    $     473        10.1 %  $     454        14.8 %
common
shareholders^(1)
Earnings per     $    1.11    $    0.99        12.1 %  $    0.93        19.4 %
common share^(1)
Return on
average common        10.3 %        9.6 %    70bps          9.5 %    80bps
equity^(1)
Total assets at  $ 222,582    $ 204,522         8.8 %  $ 216,827         2.7 %
period-end
Quarterly
average total    $ 202,051    $ 195,805         3.2 %  $ 194,708         3.8 %
assets
Net interest          1.36 %       1.44 %   (8)bps         1.40 %   (4)bps
margin^(1)
Net unrealized
gain (loss) on
investment       $     698    $     577                $    (374 )
portfolio,
after-tax at
period-end
^(1)Presented on an operating basis, a non-GAAP presentation. Refer to the
addendum included with this news release for explanations of our non-GAAP
financial measures and for reconciliations of our operating-basis financial
information. Total revenue for the third quarter of 2012 and fourth quarter of
2011, presented in the table, has been adjusted for comparative purposes from
amounts previously reported to include tax-equivalent adjustments to
processing fees and other revenue related to tax credits generated by
tax-advantaged investments.

Assets Under Custody and Administration and Assets Under Management
(Dollars in billions)                        % Increase             % Increase
                        Q4 2012   Q3 2012    (Decrease)  Q4 2011    (Decrease)
Assets under custody
and administration^(1) $ 24,371   $ 23,441      4.0 %    $ 21,807     11.8 %
(2)
Assets under           $  2,089   $  2,065      1.2 %    $  1,845     13.2 %
management^(2)
Market Indices
S&P 500^® daily           1,418      1,401      1.2 %       1,226     15.7 %
average
MSCI EAFE^®daily         1,544      1,468      5.2 %       1,420      8.7 %
average
S&P 500^®average of      1,418      1,409      0.6 %       1,253     13.2 %
month end
MSCI EAFE^®average of    1,561      1,474      5.9 %       1,448      7.8 %
month end

^(1) Includes assets under custody of $17.806 trillion, $17.287 trillion and
$15.863 trillion, as of period-end Q4 2012, Q3 2012 and Q4 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                                   % Increase            % Increase
millions)              Q4 2012     Q3 2012    (Decrease)  Q4 2011   (Decrease)
Servicing fees       $   1,150    $   1,100      4.5 %   $ 1,057      8.8 %
Investment                 260          251      3.6          202     28.7
management fees
Trading services
revenue:
Foreign exchange        118          115      2.6          150    (21.3 )
trading
Brokerage and           125          117      6.8          123      1.6
other fees
Total trading           243          232      4.7          273    (11.0 )
services revenue
Securities finance          74           91    (18.7 )         90    (17.8 )
revenue
Processing fees and
other revenue^(1)          115           84     36.9           60     91.7
(2)
Net interest
revenue, fully             600          611     (1.8 )        577      4.0
taxable-equivalent
basis^(1) (3)
Gains (Losses)
related to                  21           18     16.7           42    (50.0 )
investment
securities, net
Total
Operating-Basis      $   2,463    $   2,387      3.2 %   $ 2,301      7.0 %
Revenue^(1)
^(1)Refer to the addendum included with this news release for explanations of
our non-GAAP financial measures and for reconciliations of our operating-basis
financial information.
^(2)Processing fees and other revenue for the fourth and third quarters of
2012 and fourth quarter of 2011, presented in the table, included
tax-equivalent adjustments of $36 million, $39 million and $15 million,
respectively, related to tax credits generated by tax-advantaged investments.
GAAP-basis processing fees and other revenue for these periods was $79
million, $45 million and $45 million, respectively. Amounts previously
reported for the third quarter of 2012 and fourth quarter of 2011 have been
adjusted for comparative purposes.
^(3)Net interest revenue for the fourth and third quarters of 2012 and fourth
quarter of 2011, presented in the table, included tax-equivalent adjustments
of $30 million, $32 million and $32 million, respectively, and excluded
conduit related discount accretion of $52 million, $40 million and $61
million, respectively. GAAP-basis net interest revenue for these periods was
$622 million, $619 million and $606 million, respectively. The Company
continues to expect to record aggregate pre-tax conduit-related accretion of
approximately $770 million in interest revenue from January 1, 2013 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 4.5% to $1.2 billion in the fourth quarter of 2012
from the third quarter of 2012, due to revenue contributions from the acquired
GSAS business, net new business, and stronger global equity markets. Compared
to the fourth quarter of 2011, servicing fees increased 8.8%, due to stronger
global equity markets, the impact of net new business, and revenue
contributions from acquisitions.

Investment management fees increased 3.6% to $260 million in the fourth
quarter of 2012 from the third quarter of 2012, due to higher performance fees
and stronger global equity markets. Compared to the fourth quarter of 2011,
investment management fees increased 28.7%, primarily due to stronger equity
markets, net new business, and higher performance fees.

Trading services revenue, which includes foreign-exchange trading revenue and
brokerage and other fees, was $243 million in the fourth quarter of 2012, up
4.7% from the third quarter of 2012 due to strength in both brokerage and
other fee revenue and foreign-exchange trading. Trading services revenue
decreased 11.0% from the fourth quarter of 2011, primarily due to weakness in
foreign-exchange trading, partially offset by stronger brokerage and other
fees. Foreign-exchange revenue increased 2.6% from the third quarter of 2012
due to higher revenue from direct foreign exchange trading, partially offset
by lower volatility. Foreign-exchange revenue decreased 21.3% from the fourth
quarter of 2011 due to lower volatility. Brokerage and other fees increased
6.8% to $125 million from the third quarter of 2012 due to growth in
transition management.

Securities finance revenue was $74 million in the fourth quarter of 2012, a
decline of 18.7% and 17.8% from the third quarter of 2012 and fourth quarter
of 2011, respectively. The decrease from both periods reflects lower spreads
and volumes.

Processing fees and other revenue in the fourth quarter of 2012 increased
36.9% from the third quarter of 2012, primarily due to higher revenue from
joint ventures as well as a gain of $10 million from the sale of a Lehman
Brothers-related asset. Processing fees and other revenue reflects a
tax-equivalent adjustment of $36 million related to tax credits generated by
tax-advantaged investments. This non-GAAP presentation is similar to
adjustments to net interest revenue generated by tax-exempt investment
securities. These adjustments enable management to compare revenue from all
investments on an equivalent (pre-tax) basis. Processing fees and other
revenue presented for all prior periods has been adjusted to conform to this
new presentation.

Processing fees and other revenue in the fourth quarter of 2012 increased
91.7% from the fourth quarter of 2011, primarily due to a $25 million negative
fair-value adjustment in the fourth quarter of 2011 related to positions in
the fixed-income trading initiative, a business State Street exited in the
fourth quarter of 2011, as well as an increase in revenue associated with
tax-advantaged investments.

Fully taxable-equivalent net interest revenue in the fourth quarter of 2012
was $600 million, a decrease of 1.8% from $611 million in the third quarter of
2012, primarily due to lower yields on earning assets. Compared to the fourth
quarter of 2011, fully taxable-equivalent net interest revenue was up 4.0%
from $577 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 136 basis points in the fourth quarter of 2012
compared to 144 basis points in the third quarter of 2012 and 140 basis points
in the fourth quarter of 2011.

Net gains from sales of available-for-sale securities of $26 million were
recorded in the fourth quarter of 2012, and separately, $5 million of net
losses from other-than-temporary impairment were recorded, resulting in $21
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 millions)                         % Increase            % Increase
                          Q4 2012   Q3 2012   (Decrease)  Q4 2011   (Decrease)
Compensation and employee $   915   $   916     (0.1 )%   $   872      4.9 %
benefits
Information systems and       234       211     10.9          195     20.0
communications
Transaction processing        179       170      5.3          179        -
services
Occupancy                     121       115      5.2          116      4.3
Other                         265       252      5.2          274     (3.3 )
Total Operating-Basis     $ 1,714   $ 1,664      3.0 %   $ 1,636      4.8 %
Expenses^(1)

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

Compensation and employee benefits expenses in the fourth quarter of 2012 were
essentially flat compared to the third quarter of 2012. Additional costs from
the acquired GSAS business were offset by savings associated with the
execution of the Business Operations and Information Technology Transformation
program. Compensation and employee benefits increased 4.9% from the fourth
quarter of 2011, primarily due to higher benefit and incentive compensation
costs, merit increases, and acquisitions, partially offset by the savings
associated with the execution of the Business Operations and Information
Technology Transformation program.

Information systems and communications expenses were $234 million in the
fourth quarter of 2012, up 10.9% from the third quarter of 2012 and up 20.0%
from the fourth quarter of 2011. The increase in both periods is primarily due
to costs related to transition activities in connection with the Business
Operations and Information Technology Transformation program.

Transaction processing services expenses increased 5.3% to $179 million in the
fourth quarter of 2012 from the third quarter of 2012, primarily due to higher
volumes in the asset servicing business.

Other expenses increased 5.2% to $265 million in the fourth quarter of 2012
from $252 million in the third quarter of 2012; the increase was primarily due
to higher legal and regulatory costs.

Income Taxes

The effective tax rate on fourth-quarter 2012 GAAP earnings is 19.9%, down
from 28.3% in the third quarter of 2012, due to the net tax impact of settling
Italian tax audits and recoveries associated with the 2008 Lehman Brothers
bankruptcy. The effective tax rate on operating-basis earnings for the fourth
quarter of 2012 was 23.5%, down from 24.5% in the third quarter of 2012, due
to deferred tax liability adjustments, and down from 25.0% in the fourth
quarter of 2011 due to additional investments in renewable energy projects in
2012.

Capital

Capital                                      bps                       bps
ratios^(1):  December31,  September30,   Increase   December31,   Increase
                 2012          2012       (Decrease)      2011      (Decrease)
Total
capital         20.6 %         21.3 %      (70)  bps     20.5 %         10 bps
ratio
Tier 1
capital         19.1 %         19.8 %      (70)  bps     18.8 %         30 bps
ratio
Tier 1
leverage         7.1 %          7.6 %      (50)  bps      7.3 %       (20) bps
ratio
Tier 1          17.1 %         17.8 %      (70)  bps     16.8 %         30 bps
common ratio
Estimated
pro
formatier 1
common ratio
under Basel     10.8 %         11.3 %      (50)  bps      N/A              N/A
III NPRs,
including
impact of
SSFA^(2)
TCE ratio        7.2 %          7.6 %      (40)  bps      7.2 %              -

^(1) 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 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 December31,
2012 presented in the table above were down from September 30, 2012, primarily
due to slightly lower capital.

^(2) 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) to the investment portfolio. The capital
rules in the NPR are not final. This 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 December31, 2012
was 10.8%. As noted above, this includes the estimated impact of the NPRs on
the risk-weightings of the investment portfolio. This estimate would be 11.9%
as of December31, 2012, if adjusted on a pro forma basis 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. 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 10.9 million shares of its common stock at
a total cost of $480 million at an average price of $43.99 per share in the
fourth quarter of 2012 and declared a quarterly common stock dividend of $0.24
per share. For full-year 2012, the Company purchased a total of 33.4 million
shares of its common stock at an average price of $43.11 per share for
approximately $1.4 billion. Approximately $360 million remains available for
purchase under its $1.8 billion stock purchase program authorization,
effective through March 2013. The Company has submitted its 2013 capital
distribution plan to the Federal Reserve and expects a response from the
Federal Reserve in mid- to late-March.

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.

Investor Conference Call
State Street will webcast an investor conference call today, Friday,
January18, 2013, at 9:00 a.m. EST, 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 #80960325. 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 #80960325. 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 $24.37
trillion in assets under custody and administration and $2.09 trillion in
assets under management at December31, 2012, State Street operates in 29
countries and more than 100 geographic markets and employs 29,660 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 January18, 2013.

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 to 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 recorded in 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 legislation with respect to banking
    and financial activities and other regulatory initiatives in the U.S. and
    internationally, including regulatory developments that result in changes
    to our structure or operating model, increased costs 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 for which 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 needs of clients 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
    recorded in 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, January18,
2013, and we do not undertake efforts to revise those forward-looking
statements to reflect events after that date.



Investor Relations Contact: Valerie Haertel
Telephone:                  +1 617/664-3477
Media Contact:              Hannah Grove
Telephone:                  +1 617/664-3377


Q4 2012 Financial HIghlights Presentation
Press Release Addendum

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This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
the
information contained therein.

Source: State Street Corporation via Thomson Reuters ONE
HUG#1671364
 
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