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State Street Reports First-Quarter 2014 GAAP-Basis EPS of $0.81, Which Reflects $0.11 Per Share of Severance Costs to Realign

  State Street Reports First-Quarter 2014 GAAP-Basis EPS of $0.81, Which
  Reflects $0.11 Per Share of Severance Costs to Realign Staffing, on Revenue
  of $2.49 Billion

On an Operating Basis^1, First-Quarter 2014 EPS Was $0.99 on Revenue of $2.56
                                   Billion

 Strong Capital Position Enables Authorization to Purchase up to $1.7 Billion
                    of Common Stock Through March 31, 2015

Business Wire

BOSTON -- April 25, 2014

In announcing today's financial results, Joseph L. Hooley, State Street's
chairman, president and chief executive officer, said, "Delivering value to
our clients and shareholders is our core mission. We remain focused on our key
priorities - increasing revenue, controlling expenses, investing in growth
opportunities, and optimizing our capital structure to create long-term value.
We are responding to the challenges presented by low interest rates and
conservative investor risk appetite by realigning our staffing to support our
goal of positive operating leverage for the full year."

"Client demand for our products, services, and solutions remains strong. New
asset servicing wins totaled $189 billion for the quarter, which included 25
new mandates in alternative investment servicing where we hold a leadership
position and see additional opportunities for growth."

"We continue to prioritize returning capital to our shareholders. During the
first quarter of 2014, we completed the final phase of our $2.1 billion common
stock purchase program announced in March 2013 with the purchase of
approximately 6.1 million shares of our common stock at an aggregate cost of
approximately $420 million. The recently completed Federal Reserve
Comprehensive Capital Analysis and Review, or CCAR, process demonstrated our
strong capital position and our Board of Directors approved a $1.7 billion
common stock purchase program effective through March31, 2015. Our 2014
capital plan also includes a proposed increase in our quarterly common stock
dividend to $0.30 per share starting in the second quarter of 2014, subject to
consideration and approval by our Board of Directors."

First-Quarter 2014 GAAP Results

  *Earnings per common share (EPS) of $0.81 decreased from $1.22 in the
    fourth quarter of 2013 and from $0.98 in the first quarter of 2013.
    First-quarter 2014 results included pre-tax severance costs of $72
    million, or $0.11 per share, related to staff reductions to realign our
    cost base to support our goal of positive operating leverage for the full
    year while continuing to invest in growth opportunities and meet evolving
    regulatory requirements. Additionally, compared to the fourth quarter of
    2013, first-quarter 2014 pre-tax expenses and EPS included an incremental
    $146 million, or $0.23 per share (up from $118 million, or $0.18 per
    share, recorded in the first quarter of 2013), primarily associated with
    the seasonal deferred incentive compensation expense for
    retirement-eligible employees and payroll taxes.
  *Net income available to common shareholders of $356 million decreased from
    $545 million in the fourth quarter of 2013 and from $455 million in the
    first quarter of 2013.
  *Revenue of $2.49 billion increased from $2.46 billion in the fourth
    quarter of 2013 and from $2.44 billion in the first quarter of 2013.
  *Net interest revenue of $555 million decreased from $585 million in the
    fourth quarter of 2013 and from $576 million in the first quarter of 2013.
  *Expenses of  $2.03 billion increased from $1.85 billion in the fourth
    quarter of 2013 and from $1.83 billion in the first quarter of 2013.
  *Return on average common shareholders' equity (ROE) of 7.2% decreased from
    10.9% in the fourth quarter of 2013 and from 9.1% in the first quarter of
    2013.

First-Quarter 2014 Operating-Basis (Non-GAAP) Results^1

  *EPS of $0.99 decreased from $1.15 in the fourth quarter of 2013 and
    increased from $0.96 in the first quarter of 2013. Compared to the fourth
    quarter of 2013, first-quarter 2014 pre-tax expenses and EPS included an
    incremental $146 million, or $0.23 per share (up from $118 million, or
    $0.18 per share, recorded in the first quarter of 2013), primarily
    associated with the seasonal deferred incentive compensation expense for
    retirement-eligible employees and payroll taxes.
  *Net income available to common shareholders of $433 million decreased from
    $514 million in the fourth quarter of 2013 and from $443 million in the
    first quarter of 2013.
  *Revenue of $2.56 billion increased from $2.53 billion in the fourth
    quarter of 2013 and from $2.47 billion in the first quarter of 2013.
  *Net interest revenue of $572 million decreased from $596 million in the
    fourth quarter of 2013 and from $577 million in the first quarter of 2013.
    Operating-basis net interest revenue excluded discount accretion on former
    conduit securities of $27 million, $31 million and $31 million for the
    respective quarters and is presented on a fully taxable-equivalent basis.
  *Expenses of $1.92 billion increased from $1.76 billion in the fourth
    quarter of 2013 and from $1.81 billion in the first quarter of 2013.
  *ROE of 8.8% decreased from 10.3% in the fourth quarter of 2013 and from
    8.9% in the first quarter of 2013.

First-Quarter 2014 Highlights

  *First-quarter 2014 results reflected $72 million of pre-tax severance
    costs related to staff reductions to realign our expense base in response
    to the current environment. We expect these staff reductions to generate
    pre-tax savings of approximately $40 million on an annualized basis in
    2015.
  *New business^2  New asset servicing mandates  during the first quarter of
    2014 totaled $189 billion and net new assets to be managed were $4
    billion.
  *Business Operations and Information Technology Transformation program^3
    Total incremental pre-tax expense savings for full-year 2014, including
    the first quarter, are expected to be approximately $130 million.
  *Capital^4 Our tier 1 common ratio as of March31, 2014, calculated under
    currently applicable regulatory requirements, was 16.4%. Our estimated pro
    forma Basel III tier 1 common ratio as of March31, 2014 was 11.1%
    (standardized approach) and 13.2% (advanced approach), each calculated in
    conformity with the Basel III final rule.
  *Return of capital to shareholders Purchased approximately $420 million of
    our common stock at an average price of $69.14 per share, and declared a
    quarterly common stock dividend of $0.26 per share in the first quarter of
    2014.
  *Results of recently completed 2014 CCAR Demonstrated our continued strong
    capital position. After the annual CCAR process was completed in March
    2014, our Board of Directors approved a new common stock purchase program
    authorizing the purchase of up to $1.7 billion of our common stock through
    March31, 2015. Additionally, our 2014 capital plan includes a proposed
    quarterly common stock dividend of $0.30 per share starting in the second
    quarter of 2014, subject to consideration and approval by our Board of
    Directors at its regularly scheduled meeting in May.

^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 New business in assets to be serviced is reflected in our assets under
custody and administration after we begin servicing the assets, and net new
business in assets to be managed is reflected in our assets under management
after we begin managing the assets. As such, only a portion of these new asset
servicing and asset management mandates is reflected in our assets under
custody and administration and assets under management, as the case may be, as
of March31, 2014. Distribution fees from the SPDR^® Gold Exchange-Traded
Fund, or ETF, are recorded in brokerage and other fee revenue and not in
management fee revenue.

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

^4 Our estimated pro  forma Basel III tier 1 common ratios are preliminary
estimates by State Street, calculated in conformity with the advanced and
standardized approaches in the Basel III final rule. Refer to the “Capital”
section of this news release for important information about the Basel III
final rule, our calculations of our tier 1 common ratios thereunder, factors
that could influence State Street's calculations of its tier 1 common ratios
and other information about our capital ratios. 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 description of these ratios, and
for reconciliations applicable to our tier 1 common ratio.

Non-GAAP Financial Measures

In addition to presenting State Street's financial results in conformity with
U.S. generally accepted accounting principles, or GAAP, management also
presents results on a non-GAAP, or operating basis, in order to highlight
comparable financial trends with respect to State Street's business operations
from period to period. Summary results presented on a GAAP basis, descriptions
of our non-GAAP, or operating-basis, financial measures, and 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, or 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        Q1 2014         Q4 2013         % Increase     Q1 2013         % Increase
millions)                                          (Decrease)                     (Decrease)
Total              $ 2,559         $ 2,528         1.2     %      $ 2,470         3.6    %
revenue^1
Total              1,917           1,760           8.9            1,812           5.8
expenses^1
Net income
available to       433             514             (15.8   )      443             (2.3   )
common
shareholders^1
Earnings per       .99             1.15            (13.9   )      .96             3.1
common share^1
Return on
average common     8.8       %     10.3      %     (150) bps      8.9       %     (10) bps
equity^1
                                                                                         
Total assets
as of              $ 256,663       $ 243,291       5.5     %      $ 218,189       17.6   %
period-end
Quarterly
average total      215,569         210,915         2.2            208,265         3.5
assets
Net interest       1.24      %     1.30      %     (6) bps        1.31      %     (7) bps
margin^1
Net unrealized
gains (losses)
on investment      $ 124           $ (213    )                    $ 817
securities,
after-tax, as
of 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.

                                                                                      
Assets Under Custody and Administration and Assets Under Management
(Dollars in         Q1 2014     Q4 2013     % Increase   Q1 2013     % Increase
billions)                                         (Decrease)                   (Decrease)
Assets under
custody and           $ 27,477      $ 27,427      0.2    %       $ 25,422      8.1    %
administration^1,
2
Assets under          2,381         2,345         1.5            2,176         9.4
management^2
Market Indices:
S&P 500^® daily       1,835         1,769         3.7            1,514         21.2
average
MSCI EAFE^® daily     1,894         1,860         1.8            1,668         13.5
average
S&P 500^® average     1,838         1,804         1.9            1,527         20.4
of month-end
MSCI EAFE^®
average of            1,896         1,894         0.1            1,676         13.1
month-end


^1 Includes assets under custody of $20,996 billion, $20,411 billion and
$18,588 billion, as of March31, 2014, December31, 2013 and March31, 2013,
respectively.

^2 As of period-end.

Revenue

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

                                                                   
(Dollars in          Q1 2014       Q4 2013       % Increase     Q1 2013       % Increase
millions)                                        (Decrease)                   (Decrease)
Servicing fees       $ 1,238       $ 1,232       0.5    %       $ 1,175       5.4     %
Management fees      292           290           0.7            263           11.0
Trading services
revenue:
Foreign-exchange     134           125           7.2            146           (8.2    )
trading
Brokerage and        105          103          1.9           135          (22.2   )
other fees
Total trading        239           228           4.8            281           (14.9   )
services revenue
Securities           85            76            11.8           78            9.0
finance revenue
Processing fees
and other            127          106          19.8          94           35.1    
revenue^1, 2
Total fee            1,981         1,932         2.5            1,891         4.8
revenue
Net interest         572           596           (4.0   )       577           (0.9    )
revenue^1, 3
Gains (losses)
related to           6            —            —             2            200.0   
investment
securities, net
Total
Operating-Basis      $ 2,559      $ 2,528      1.2    %       $ 2,470      3.6     %
Revenue^1


^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.

^2 Processing fees and other revenue for the first quarter of 2014, fourth
quarter of 2013 and first quarter of 2013, presented in the table, included
tax-equivalent adjustments of $57 million, $53 million and $34 million,
respectively, related to tax credits generated by tax-advantaged investments.
GAAP-basis processing fees and other revenue for these periods was $70
million, $53 million and $60 million, respectively.

^3 Net interest revenue for the first quarter of 2014, fourth quarter of 2013
and first quarter of 2013, presented in the table, included tax-equivalent
adjustments of $44 million, $42 million and $32 million, respectively, and
excluded conduit-related discount accretion of $27 million, $31 million and
$31 million, respectively. GAAP-basis net interest revenue for these periods
was $555 million, $585 million and $576 million, respectively. The Company
expects to record aggregate pre-tax conduit-related accretion of approximately
$548 million in interest revenue from April 1, 2014 through the remaining
lives of the former conduit securities. This expectation is based on numerous
assumptions, including holding the securities to maturity, anticipated
pre-payment speeds and credit quality.

Servicing fees of $1.24 billion in the first quarter of 2014 increased 0.5%
from the fourth quarter of 2013, primarily due to stronger global equity
markets and net new business, partially offset by lower transaction-related
revenue. Compared to the first quarter of 2013, servicing fees increased 5.4%,
due to stronger global equity markets and net new business.

Management fees of $292 million in the first quarter of 2014 increased 0.7%
from the fourth quarter of 2013, primarily due to net new business and
stronger global equity markets, partially offset by lower performance fees.
Compared to the first quarter of 2013, management fees increased 11.0%,
primarily due to stronger global equity markets.

Foreign-exchange trading revenue increased 7.2% from the fourth quarter of
2013 due to higher volumes and volatility. Compared to the first quarter of
2013, foreign exchange trading revenue decreased 8.2% due to lower volatility,
partially offset by higher volumes. Brokerage and other fees increased 1.9%
from the fourth quarter of 2013 to $105 million. Compared to the first quarter
of 2013, brokerage and other fees decreased 22.2%, primarily due to lower
electronic trading and lower distribution fees associated with the SPDR^® Gold
ETF.

Securities finance revenue of $85 million in the first quarter of 2014
increased 11.8% from the fourth quarter of 2013, primarily due to higher
spreads and volumes. Compared to the first quarter of 2013, securities finance
revenue increased 9.0%, primarily due to new business in enhanced custody.

Processing fees and other revenue of $127 million in the first quarter of 2014
increased 19.8% from the fourth quarter of 2013, primarily due to an increase
in revenue from joint ventures, tax-advantaged investments and certain
portfolio transition services. Compared to the first quarter of 2013,
processing fees and other revenue increased 35.1%, primarily due to higher fee
revenue associated with our investment in bank-owned life insurance, a more
favorable counterparty valuation adjustment in the first quarter of 2014, and
higher revenue from tax-advantaged investments. See notes (1) and (2) to the
table above for a description of the presentation of operating-basis
processing fees and other revenue.

Net interest revenue of $572 million in the first quarter of 2014 decreased
4.0% from the fourth quarter of 2013, primarily due to $19 million of interest
revenue recorded in the fourth quarter of 2013 associated with a municipal
security that had been previously impaired and lower yields on
interest-earning assets. Compared to the first quarter of 2013, net interest
revenue decreased 0.9%, primarily due to lower yields on interest-earning
assets, partially offset by lower interest expense. See notes (1) and (3) to
the table above for a description of the presentation of operating-basis net
interest revenue.

Net interest margin, including balances held at the Federal Reserve and other
central banks, decreased to 124 basis points in the first quarter of 2014 from
130 basis points in the fourth quarter of 2013 and 131 basis points in the
first quarter of 2013. Refer to the addendum included with this news release
for reconciliations of our net interest margin.

Expenses

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

                                                                  
(Dollars in         Q1 2014       Q4 2013       % Increase     Q1 2013       % Increase
millions)                                       (Decrease)                   (Decrease)
Compensation
and employee        $ 1,085       $ 934         16.2   %       $ 1,035       4.8    %
benefits^1, 2
Information
systems and         244           228           7.0            237           3.0
communications
Transaction
processing          191           182           4.9            180           6.1
services
Occupancy           114           124           (8.1   )       116           (1.7   )
Other^1, 3          283          292          (3.1   )       244          16.0   
Total
Operating-Basis     $ 1,917      $ 1,760      8.9    %       $ 1,812      5.8    %
Expenses^1


^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.

^2 Compensation and employee benefits expenses for the first quarter of 2014
and the fourth quarter of 2013, presented in the table, excluded severance
costs of $72 million and $11 million, respectively, related to staff
realignment and the reorganization of certain non-U.S. operations,
respectively. GAAP-basis compensation and employee benefits expenses for the
first quarter of 2014, fourth quarter of 2013 and first quarter of 2013 were
$1,157 million, $945 million and $1,035 million, respectively.

^3 GAAP-basis other expenses for the first quarter of 2014, fourth quarter of
2013 and first quarter of 2013 were $289 million, $337 million and $244
million, respectively.

Compensation and employee benefits expenses increased 16.2% in the first
quarter of 2014 from the fourth quarter of 2013, primarily due to an
incremental $146 million, or $0.23 per share, primarily associated with the
seasonal deferred incentive compensation expense for retirement-eligible
employees and payroll taxes. Compared to the first quarter of 2013,
compensation and employee benefits expenses increased 4.8%, primarily due to
higher incentive compensation and increased costs associated with installing
new business, implementing additional regulatory and compliance requirements,
and investing in growth opportunities. See notes (1) and (2) to the table
above for a description of the presentation of operating-basis compensation
and employee benefits expenses for the relevant periods.

Information systems and communications expenses increased 7.0% and 3.0% from
the fourth quarter of 2013 and first quarter of 2013, respectively. The
increase over both periods primarily reflects the planned transition of
certain functions to external service providers as well as higher maintenance
costs associated with the new technology implemented as part of the Business
Operations and Information Technology Transformation program.

Transaction processing services expenses increased 4.9% and 6.1% from the
fourth quarter of 2013 and the first quarter of 2013, respectively. The
increase over both periods primarily reflects higher volumes and higher equity
values in the investment servicing business.

Occupancy expenses of $114 million in the first quarter of 2014 decreased 8.1%
from the fourth quarter of 2013 primarily due to the effect of a sublease
renegotiation recorded in the fourth quarter of 2013. Occupancy expenses
decreased 1.7% from the first quarter of 2013.

Other expenses decreased 3.1% to $283 million in the first quarter of 2014
from $292 million in the fourth quarter of 2013, primarily due to lower
securities processing, sales promotion, and professional services costs.
Fourth-quarter 2013 other expenses included $28 million of Lehman
Brothers-related gains and recoveries. Compared to the first quarter of 2013,
other expenses increased 16.0%, primarily due to higher professional services
associated with regulatory compliance costs and sales promotion costs. See
notes (1) and (3) to the table above for a description of GAAP-basis other
expenses for the relevant periods.

Income Taxes

Our first-quarter 2014 GAAP-basis effective tax rate was 20.3%, up from 9.7%
in the fourth quarter of 2013, due to the $71 million out-of-period income tax
benefit recorded in the fourth quarter of 2013 to adjust deferred taxes, and
down from 23.8% in the first quarter of 2013, due primarily to an increase in
tax-advantaged investments. Our first-quarter 2014 operating-basis tax rate
was 31.2%, compared with 31.6% and 31.3%, respectively, in the fourth and
first quarters of 2013.

Beginning with the first quarter of 2014, we are presenting our
operating-basis effective tax rate to reflect the tax-equivalent adjustments
associated with our investments in tax-exempt securities, low-income housing
and alternative energy (“tax-advantaged investments”). Accordingly, the
operating-basis effective tax rate includes the amount of the tax-equivalent
adjustment for tax-advantaged investments as revenue and as additional income
tax expense. This change has no effect on operating-basis revenue, pre-tax
income, or after-tax earnings, and affects only the stated operating-basis
effective tax rate. It will result in a more informative presentation of the
ordinary rate of tax generated by State Street’s business activity. Refer to
the addendum that accompanies this news release for a presentation of this new
calculation.

Capital

The following table presents our capital ratios as of March31, 2014,
December31, 2013 and March31, 2013.

                                                          
Capital           March      December     bps            March      bps
ratios^1          31,        31,          Increase       31,        Increase
                  2014       2013         (Decrease)     2013       (Decrease)
Total capital     20.9 %     19.7  %      120 bps        19.2 %     170 bps
ratio
Tier 1            18.2       17.3         90             18.0       20
capital ratio
Tier 1
leverage          7.4        6.9          50             6.9        50
ratio
Tier 1 common     16.4       15.5         90             16.1       30
ratio
Estimated pro
forma Basel
III tier 1
common
ratios^2,3:
Advanced          13.2       11.8         140            10.6       NA
Standardized      11.1       10.1         100            NA        NA
TCE ratio         6.7        6.6          10             7.1        (40)
                                         

NA: Not applicable.

^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 State Street's tier 1 common and tangible common
equity, or TCE, ratios presented in the table.

^2 The estimated pro forma Basel III tier 1 common ratios as of March31,
2014, December31, 2013 and March31, 2013, calculated in conformity with the
advanced approach in the Basel III final rule (or, with respect to the
March31, 2013 estimate, in the June 2012 NPRs described below), reflect
calculations and determinations with respect to our capital and related
matters as of March31, 2014, December31, 2013 and March31, 2013,
respectively, based on State Street and external data, quantitative formulae,
statistical models, historical correlations and assumptions, collectively
referred to as “advanced systems”, in effect and used by us for those purposes
as of the respective date of each estimate’s first public announcement.
Significant components of these advanced systems involve the exercise of
judgment by us and our regulators, and these advanced systems may not
accurately represent or calculate the scenarios, circumstances, outputs or
other results for which they are designed or intended. Due to the influence of
changes in these advanced systems, whether resulting from changes in data
inputs, regulation or regulatory supervision or interpretation, State
Street-specific or market activities or experiences or other updates or
factors, we expect our advanced systems and our capital ratios calculated in
conformity with the Basel III framework will change and may be volatile over
time, and that those latter changes or volatility could be material as
calculated and measured from period to period. Refer to the addendum included
with this news release for information concerning the specified capital ratios
and for reconciliations of our estimated pro forma Basel III tier 1 common
ratios to our tier 1 common ratio calculated under currently applicable
regulatory requirements.

^3 The increases in the estimated pro forma Basel III tier 1 common ratios
calculated under both the advanced and standardized approaches as of March 31,
2014, compared to December 31, 2013, resulted primarily from an increase in
tier 1 common equity as of March 31, 2014. This increase was due, in principal
part, to a temporary reduction in the deduction of other intangible assets,
net of related deferred tax liabilities permitted under the Basel III final
rule. Under the Basel III final rule, the deduction is phased in at 20% per
year beginning on January 1, 2014 through full implementation of the final
rule on January 1, 2018. Tier 1 common equity calculated as of March 31, 2014
reflected a 20% deduction of other intangible assets, net of related deferred
tax liabilities. Tier 1 common equity calculated as of December 31, 2013
reflected the full deduction.

In July 2013, the Federal Reserve issued a final rule intended to implement
the Basel III framework in the U.S, referred to as the Basel III final rule.
The Basel III final rule consolidated, with revisions, three separate Notices
of Proposed Rulemaking, or NPRs, originally issued by the Federal Reserve in
June 2012. Provisions of the Basel III final rule become effective under a
transition timetable which began on January 1, 2014.

On February 21, 2014, we were notified by the Federal Reserve that we have
completed our parallel run period and will be required to begin using the
advanced approaches framework as provided in the Basel III final rule in the
determination of our risk-based capital requirements. Pursuant to this
notification, we will use the advanced approaches framework to calculate and
publicly disclose our risk-based capital ratios beginning with the second
quarter of 2014. Once the provisions of the Basel III final rule affecting
capital are fully implemented effective January 1, 2015, the lower of the
Basel III tier I common ratio calculated by us under the Basel III advanced
approach or standardized approach will apply in the assessment of our capital
adequacy for regulatory purposes.

The estimated pro forma Basel III tier 1 common ratios presented in the table
above as of March31, 2014 and December31, 2013 are preliminary estimates by
State Street, calculated in conformity with the advanced and standardized
approaches in the Basel III final rule. Each of these calculations is based on
State Street's present interpretations of the Basel III final rule as of the
respective date of each estimate’s first public announcement. The estimated
pro forma Basel III tier 1 common ratio presented in the table as of March31,
2013 was a preliminary estimate by State Street, calculated in conformity with
the advanced approach in the June 2012 NPRs, and has not been restated to
conform to the Basel III final rule. We did not announce our estimated pro
forma Basel III tier 1 common ratio calculated in conformity with the
standardized approach as of March31, 2013.

Additional Information

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. 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, Friday, April25,
2014, 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
inside the U.S. or at +1 706/679-5594 outside of the U.S. The Conference ID is
# 18206022.

Recorded replays of the conference call will be available on the website, 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 # 18206022.

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 $27.48
trillion in assets under custody and administration and $2.38 trillion* in
assets under management as of March31, 2014, State Street operates globally
in more than 100 geographic markets and employs 29,530 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.

* Assets under management include the assets of the SPDR^® Gold ETF
(approximately $34 billion as of March31, 2014), for which State Street
Global Markets, LLC, an affiliate of SSgA, serves as the distribution agent.

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, results
of operations, investment portfolio performance and strategies, the financial
and market outlook, dividend and stock purchase programs, 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 “expect,” “objective,” “intend,” “plan,”
“forecast,” “outlook,” “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 date subsequent to
April25, 2014.

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 sovereign-debt risks in the
    U.S., Europe and other regions;
  *increases in the volatility of, or declines in the level of, our net
    interest revenue, changes in the composition or valuation of the assets
    recorded in our consolidated statement of condition (and our ability to
    measure the fair value of investment securities) and the possibility that
    we may 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 and timing with which the Federal Reserve and other U.S. and
    foreign regulators implement the Dodd-Frank Act changes to the Basel III
    capital framework and European legislation, such as the Alternative
    Investment Fund Managers Directive and Undertakings for Collective
    Investment in Transferable Securities Directives, with respect to the
    levels of regulatory capital we must maintain, our credit exposure to
    third parties, margin requirements applicable to derivatives, 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
    how we provide services;
  *adverse changes in the regulatory capital ratios that we are required or
    will be required to meet, whether arising under the Dodd-Frank Act or the
    Basel III capital and liquidity standards, or due to changes in regulatory
    positions, practices or regulations in jurisdictions in which we engage in
    banking activities, including changes in internal or external data,
    formulae, models, assumptions or other advanced systems used in the
    calculation of our capital ratios that cause changes in those ratios as
    they are measured from period to period;
  *increasing requirements to obtain the prior approval of the Federal
    Reserve or our other regulators for the use, allocation or distribution of
    our capital or other specific capital actions or programs, including
    acquisitions, dividends and equity purchases, without which our growth
    plans, distributions to shareholders, equity purchase programs or other
    capital initiatives may be restricted;
  *changes in law or regulation, or the enforcement of law or regulation,
    that may adversely affect our business activities or those of our clients
    or our counterparties, and the products or services that we sell,
    including additional or increased taxes or assessments thereon, capital
    adequacy requirements, margin requirements and changes that expose us to
    risks related to the adequacy of our controls or compliance programs;
  *financial market disruptions or economic recession, whether in the U.S.,
    Europe, Asia or other regions;
  *our ability to promote a strong culture of risk management, operating
    controls, compliance oversight and governance that meet our expectations
    and those of our clients and our regulators;
  *the results of, and costs associated with, government investigations,
    litigation and similar claims, disputes, or proceedings;
  *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 and may cause volatility of
    our earnings;
  *the potential for losses arising from our investments in sponsored
    investment funds;
  *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 liquidity or valuation of assets underlying
    those pools;
  *our ability to anticipate and manage the level and timing of redemptions
    and withdrawals from our collateral pools and other collective investment
    products;
  *the credit agency ratings of our debt and depository obligations and
    investor and client perceptions of our financial strength;
  *adverse publicity, whether specific to State Street or regarding other
    industry participants or industry-wide factors, or other reputational
    harm;
  *our ability to control operational risks, data security breach 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;
  *dependencies on information technology and our ability to control related
    risks, including cyber-crime and other threats to our information
    technology infrastructure and systems and their effective operation both
    independently and with external systems, and complexities and costs of
    protecting the security of our systems and data;
  *our ability to grow revenue, control expenses, attract and retain highly
    skilled people and raise the capital necessary to achieve our business
    goals and comply with regulatory requirements;
  *changes or potential changes to the competitive environment, including
    changes due to regulatory and technological changes, the effects of
    industry consolidation and perceptions of State Street as a suitable
    service provider or counterparty;
  *changes or potential changes in how and in what amounts clients compensate
    us for our services, and the mix of services provided by us that clients
    choose;
  *our ability to complete acquisitions, joint ventures and divestitures,
    including the ability to obtain regulatory approvals, the ability to
    arrange financing as required and the ability to satisfy closing
    conditions;
  *the risks that our 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
    negative synergies 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
    our relationships with our clients, our employees or regulators;
  *our ability to recognize emerging needs of our clients and to develop
    products that are responsive to such trends and profitable to us, the
    performance of and demand for the products and services we offer, and the
    potential for new products and services to impose additional costs on us
    and expose us to increased operational risk;
  *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
2013 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, April25,
2014, and we do not undertake efforts to revise those forward-looking
statements to reflect events after that date.

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http://www.businesswire.com/multimedia/home/20140425005292/en/

Multimedia
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Contact:

State Street Corporation
Investor Contact:
Valerie Haertel, +1 617-664-3477
or
Media Contact:
Hannah Grove, +1 617-664-3377
 
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