Exhibit 99.1

State Street Reports Fourth-Quarter Earnings Per Share of $1.00

Total Revenue Increases 2% Compared to Third Quarter with Servicing Fees up 6% and Management Fees up 5%

Achieves Full-Year Positive Operating Leverage Compared to 2008

BOSTON--(BUSINESS WIRE)--January 20, 2010--State Street Corporation today announced fourth-quarter 2009 earnings per common share of $1.00 on revenue of $2.280 billion compared with $0.54 per share on revenue of $2.673 billion in the fourth quarter of 2008. Expenses in the fourth quarter of 2009 are $1.565 billion, compared with $2.311 billion in the fourth quarter of 2008. For the fourth quarter of 2009, return on common shareholders’ equity was 14.0%, up from 8.4% in the fourth quarter of 2008.

Compared to the third quarter of 2009, fourth-quarter 2009 results improved from $0.66 per share on revenue of $2.236 billion. Expenses in the third quarter of 2009 were $1.733 billion. For the third quarter of 2009, return on common shareholders’ equity was 10.2%.

The 2009 results included an after-tax extraordinary loss of $(3.684) billion or $(7.77) per share related to the effect of the May 2009 consolidation of the State Street-administered asset-backed commercial paper conduits onto the Company’s balance sheet. In 2009, State Street reported full-year earnings per share of $3.46, before the extraordinary loss, on revenue of $8.640 billion compared with earnings per share of $4.30 on revenue of $10.693 billion in 2008. Including the extraordinary loss, the full-year 2009 loss per share was $(4.31). Return on common shareholders’ equity was 13.2% in 2009 before the extraordinary loss, compared with 14.8% in 2008.

In addition to presenting State Street’s financial results in conformity with U.S. generally accepted accounting principles (GAAP), management also presents results on an “operating basis” in order to highlight comparable financial trends and other characteristics with respect to State Street’s ongoing business operations from period to period. A full reconciliation of operating-basis results to GAAP results is included in the addendum at the end of this press release. Also see “Additional Information.” Net interest revenue on an operating basis for all periods is presented on a fully taxable-equivalent basis.

Operating-basis results for 2009 exclude a pre-tax provision of $(250) million or $(0.37) per share related to an increase in the reserve established in 2007 to address legal exposure related to losses incurred by investors in certain fixed-income strategies managed by State Street Global Advisors, $(106) million or $(0.22) per share related to repayment of the U.S. Treasury’s TARP Capital Purchase Program investment and $(49) million, or $(0.06) per share, of pre-tax merger and integration costs associated with the 2007 acquisition of Investors Financial Services Corp., which includes the fourth-quarter and third-quarter 2009 effects of $(9) million or $(0.01) per share and $(11) million or $(0.01) per share, respectively, for pre-tax merger and integration costs associated with that acquisition.

“Operating-basis” results for full-year 2008 exclude previously reported net pre-tax effects of $(751) million, or $(1.31) per share and for the fourth quarter of 2008 exclude previously reported net pre-tax effects of $(723) million, or $(1.04) per share. These items, including the related tax effects, are more fully described in the reconciliations of full-year and fourth-quarter 2008 operating-basis results in the addendum at the end of this press release.

The table below provides a summary of selected financial information and key ratios for the indicated periods, presented on an operating basis where noted. The tier 1 capital and tier 1 leverage ratios are capital ratios used regularly by bank regulatory authorities to evaluate the Company’s capital adequacy. The tier 1 common ratio was used by the Federal Reserve in connection with its Supervisory Capital Assessment Program. The TCE and TCE/risk-weighted assets ratios are other capital ratios management believes provide additional context for understanding and assessing the Company’s capital adequacy. Unless otherwise specified, all capital ratios referenced in this press release refer to State Street Corporation and not State Street Bank and Trust Company. See “Additional Information” for a further description of these ratios and the addendum at the end of this press release for reconciliations applicable to the TCE ratios.

Operating-basis earnings per common share in the fourth quarter of 2009 are $0.99 per share down 37.3% from $1.58 per share in the fourth quarter of 2008. Operating-basis revenue of $2.312 billion in the fourth quarter of 2009 is down 12.5% from $2.641 billion in the fourth quarter a year ago. Operating-basis expenses of $1.556 billion in the fourth quarter of 2009 are up 1.8% from $1.528 billion in the year-ago quarter. For the fourth quarter of 2009, operating-basis return on common shareholders’ equity is 13.8%, down from 24.3% for the fourth quarter of 2008.

Operating-basis results for the full-year 2009 include earnings per share of $4.11 on revenue of $8.759 billion compared with earnings per share of $5.61 on revenue of $10.477 billion in 2008. Operating basis expenses for the full-year 2009 are $5.667 billion compared with $6.780 billion in 2008.

Total assets are $158 billion at December 31, 2009, compared with $163 billion at September 30, 2009 and $174 billion at December 31, 2008. Excluding $22 billion in excess deposits held at the Federal Reserve and other central banks at December 31, 2009, $22 billion at September 30, 2009, and $52 billion at December 31, 2008, the normalized balance sheet was $136 billion at December 31, 2009, compared to a normalized balance sheet of $141 billion at September 30, 2009 and $122 billion as of December 31, 2008. State Street’s regulatory capital ratios continue to be strong as of December 31, 2009, with the Company’s tier 1 capital ratio at 17.5% and leverage ratio at 8.5%. In addition, the Company’s tier 1 common ratio is 15.3%, its TCE to risk-weighted assets ratio is 12.6%, and its TCE ratio is 6.6%, well ahead of the projected TCE ratio of 4.91% the Company targeted in February 2009 at its Investor and Analyst Forum, which had been adjusted for consolidation of the asset-backed commercial paper conduits. This performance is due to organic capital generation, the successful equity raise in May, and the improvement in unrealized losses in the investment portfolio.

At December 31, 2009, the after-tax, unrealized mark-to-market losses in the investment portfolio are $2.29 billion, down from $2.98 billion at September 30, 2009, and down about 65% from $6.32 billion as of December 31, 2008.

Ronald E. Logue, State Street's chairman and chief executive officer, said, "In 2009 we focused on strengthening our capital, servicing our clients, and controlling expenses. For the full year, we added $1.13 trillion in assets to be serviced as well as $248 billion in net new business in asset management. Also, on an operating basis, we achieved full-year positive operating leverage compared to 2008. In particular, investment manager operations outsourcing, alternative investment servicing, as well as passive management and ETF strategies generated new business and, based on the current pipeline, that trend is continuing. Our core business momentum also continues; on a quarter-over-quarter basis, we grew our servicing fee and management fee revenue, and in the fourth quarter we announced two proposed cash acquisitions, that of the securities services business of Intesa Sanpaolo, a premier provider of investment services in Italy and Luxembourg and that of Mourant International Finance Administration, a leading servicer of alternative investment servicing.”

Joseph L. Hooley, president and chief operating officer added, “Given the past year’s quarterly momentum in servicing fee and management fee revenue, we are increasingly confident in our ability to grow revenue during 2010. However, we continue to face headwinds from the impact of market-driven revenue and expect the transition in market-driven revenue that began in 2009 to continue into 2010. Including discount accretion associated with the former conduit assets, we expect operating-basis earnings per share in 2010 to be modestly below the lower end of our 10 to 15 percent range. However, to create more transparency and to underscore our confidence in our core businesses, going forward, we will report our operating-basis financial results excluding both merger and integration costs as well as the impact of conduit discount accretion. On this basis, 2009 operating-basis revenue would have been $8.138 billion and operating-basis earnings per share would have been $3.32. We expect our 2010 operating-basis earnings per share, excluding merger and integration costs and conduit discount accretion, to be only slightly above the level of 2009, reflecting in part increased outstanding average shares.”

Hooley concluded, “We begin 2010 from a position of strength. We believe we are well positioned globally and that, over economic and market cycles, we will maintain our long-term financial goals of operating-basis revenue growth of 8 percent to 12 percent, growth in operating-basis earnings per share of 10 percent to 15 percent, and operating-basis return on equity of between 14 percent and 17 percent.”

In 2009, discount accretion of $621 million, or $0.79 per share, contributed to State Street’s capital strength, and the Company expects about $900 million, or $1.08 per share, in 2010, and expects about $5.3 billion in total on a pre-tax basis to accrete into revenue over the life of the assets, based on anticipated pre-payment speeds, credit quality and assuming the company holds the securities to maturity.

FOURTH-QUARTER 2009 RESULTS VS. YEAR-AGO FOURTH QUARTER

Servicing fees are up 5% to $882 million from $842 million in last year’s fourth quarter. The increase is attributable primarily to the increase in daily average equity valuations and new business. Total assets under custody and administration are $18.795 trillion at December 31, 2009, up 18%, compared with $15.907 trillion at December 31, 2008. Daily average values for the S&P 500 Index are up 19% and the MSCI^® EAFE Index^SM increased approximately 28% from the fourth quarter of 2008.

Investment management fees, generated by State Street Global Advisors, are $231 million, up 11% from $209 million in the year-ago quarter. The increase in management fees is attributable primarily to the increase in average month-end equity valuations, as well as net new business, with the increase in assets partly offset by a change in asset mix. Average month-end equity valuations are up about 17% as measured by the S & P 500 and are up 28% as measured by the MSCI EAFE index^SM. Total assets under management at December 31, 2009, are $1.911 trillion, up 32% compared to $1.444 trillion at December 31, 2008.

Trading services revenue, which includes foreign exchange trading revenue and brokerage and other fees, is $270 million for the fourth quarter of 2009, down 35% from $418 million in the fourth quarter a year-ago. The 57% decrease in foreign exchange revenue is primarily due to lower volatility and lower volumes. Brokerage and other fees increased 47% due primarily to strength in transition management and increases in electronic trading.

Securities finance revenue is $83 million in the quarter, down 75% from $329 million in the year-ago fourth quarter due primarily to compressed spreads as well as lower volumes.

Processing fees and other is $60 million, down 28% from $83 million in the fourth quarter of 2008 due to several factors, none of which is material.

Net interest revenue on an operating basis is $729 million, a decrease of 10% from $811 million in the year-ago fourth quarter due primarily to the impact of the continuing low interest-rate environment, and the decline in customer balances from the abnormally high levels in the fourth quarter of 2008, offset partially by the impact of discount accretion from the consolidated conduit assets. Net interest margin of 235 basis points in the fourth quarter was up slightly from the fourth quarter of 2008; excluding discount accretion, the net interest margin would have been 161 basis points. The net interest margin for the full year is 220 basis points including discount accretion and would have been 169 basis points excluding discount accretion.

In the quarter, due to the improving markets, we recorded $108 million of net gains from sales of securities, partially offset by $51 million of other-than-temporary impairment related to credit, resulting in $57 million of net gains related to investment securities. In addition, we recorded a $35 million provision for loan losses, primarily related to commercial real estate exposures.

Operating-basis expenses in the fourth quarter of 2009 increased to $1.556 billion, up 1.8% from $1.528 billion in the year-ago quarter, primarily as a result of a 13% increase in salaries and benefits. In the fourth quarter of 2008, we reversed approximately 50% of previously accrued full-year incentive compensation, resulting in a low level of salaries and benefits expense for the quarter. Transaction processing expense of $158 million increased 9% attributable to higher volumes in the investment servicing business, offset partially by a 7% reduction in occupancy expense, from $124 million to $115 million. Other expenses declined 17%, from $398 million to $329 million partially due to a lower level of governmental fees paid in 2009 compared to 2008.

The effective tax rate on operating-basis earnings for the fourth quarter of 2009 is 28.5%, down from 35.3% on the same basis for the fourth quarter of 2008. The decrease in the rate is the result of an increase in the proportion of earnings from non-U.S. subsidiaries where the intention is to reinvest the earnings indefinitely overseas, as well as to certain adjustments in prior year tax accruals. The effective tax rate on operating-basis earnings for the full year 2010 is expected to be approximately 30%.

FOURTH-QUARTER 2009 RESULTS VS. THIRD QUARTER 2009

The following information is presented on an operating basis. Earnings per common share in the fourth quarter of 2009 are $0.99, a decrease of 5.7% compared with $1.05 in the third quarter of 2009. Total revenue in the fourth quarter of $2.312 billion, is up 2.0% from $2.267 billion in the third quarter of 2009. Total expenses for the fourth quarter of 2009 are $1.556, up 5.7% from $1.472 billion in the third quarter of 2009. Return on common shareholders’ equity of 13.8% in the fourth quarter compares with 16.2% in the third quarter.

The table below provides the components of operating-basis revenue:

(1) The fourth quarter of 2009 and the third quarter of 2009 include $32 million and $31 million tax-equivalent adjustments, which increased GAAP-basis net interest revenue of $697 million and $723 million, respectively, for the periods.

Servicing fees are $882 million, up 6% from $833 million in the third quarter due primarily to new business as well as the increase in daily average equity valuations. Management fees are $231 million up 5% from $219 million primarily due to the increase in the average month-end equity valuations, and net new business. Trading services revenue is $270 million, compared to $269 million. Securities finance revenue is $83 million, down 21% from $105 million in the prior quarter primarily due to compressed spreads, partially offset by slightly increased volumes. Processing fees and other revenue increased from $45 million to $60 million. Net interest revenue on a fully taxable-equivalent basis is $729 million, down 3% from $754 million due to a lower level of discount accretion ($230 million versus $279 million) caused by the absence of one-time pay-downs and slower prepayment rates, offset partially by the impact of the investment strategy which we began to execute in the third quarter.

The table below provides the components of operating-basis expenses:

Compared to the third quarter of 2009, salaries and employee benefits expense decreased 3% to $791 million from $819 million primarily due to a $50 million decrease in discretionary cash incentive compensation accruals recorded in the fourth quarter. Transaction processing expenses increased 7% due to higher volumes in the investment servicing business and other expenses increased 48% to $329 million due primarily to an adverse judgment of $60 million rendered by a Netherlands court in connection with SSgA’s appointment of Lehman Brothers as prime broker for certain investment funds, and other securities processing costs. All other lines were approximately flat on a quarter-to-quarter basis.

ADDITIONAL INFORMATION

All per share amounts represent fully diluted earnings per common share. Return on common shareholders’ equity is determined by dividing annualized net income available to common shareholders by average common shareholders’ equity for the period. Positive operating leverage is defined as the excess rate of growth of total revenue over the rate of growth of total expenses, each determined on an operating basis.

This press release includes financial information presented on a GAAP basis as well as on an operating basis. Management measures and compares certain financial information on an operating basis, as it believes that this presentation supports meaningful comparisons from period to period and the analysis of comparable financial trends with respect to State Street’s normal ongoing business operations. Management believes that operating-basis financial information, which reports revenue from non-taxable sources on a fully taxable-equivalent basis and excludes the impact of revenue and expenses outside of the normal course of business, facilitates an investor’s understanding and analysis of State Street’s underlying financial performance and trends in addition to financial information prepared in accordance with GAAP. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. A full reconciliation of operating-basis results to GAAP results is included in the addendum at the end of this press release.

Management believes that the use of other non-GAAP financial measures in the calculation of identified capital ratios is useful to understanding State Street’s capital position and of interest to investors. Below is a description of, and other information with respect to, the capital ratios referenced in this press release.

• The tier 1 risk-based capital, or tier 1 capital, and tier 1 leverage ratios, as applicable, are each calculated in accordance with applicable bank regulatory requirements and, as permitted, exclude the impact of commercial paper purchased under the Federal Reserve Bank of Boston’s AMLF.
• The tier 1 risk-based common, or tier 1 common, ratio is calculated by dividing (a) tier 1 capital less non-common elements including qualifying perpetual preferred stock, qualifying minority interest in subsidiaries and qualifying trust preferred securities, by (b) risk-weighted assets, which assets are calculated in accordance with applicable bank regulatory requirements. The tier 1 common ratio is not required by GAAP or on a recurring basis by bank regulations. However, this ratio was used by the Federal Reserve in connection with its stress test administered to the 19 largest U.S. bank holding companies under the Supervisory Capital Assessment Program, the results of which were announced on May 7, 2009. Although we understand that the Federal Reserve does not intend to prospectively require calculation of the tier 1 common ratio, due to the recent timing of the Supervisory Capital Assessment Program, management is currently monitoring this ratio, along with the other capital ratios described in this press release, in evaluating State Street’s capital levels and believes that, at this time, the ratio may be of interest to investors.

Reconciliations with respect to unaudited tier 1 common capital as of December 31, 2009, September 30, 2009 and December 31, 2008 are provided in the addendum at the end of this press release.

• The ratio of tangible common equity to adjusted tangible assets, or TCE ratio, is calculated by dividing consolidated total common shareholders’ equity by consolidated total assets, after reducing both amounts by goodwill and other intangible assets net of related deferred taxes. Total assets reflected in the TCE ratio also exclude commercial paper purchased under the AMLF and cash balances on deposit at the Federal Reserve Bank and other central banks in excess of required reserves. The TCE ratio is not required by GAAP or by bank regulations, but is a metric used by management to evaluate the adequacy of State Street’s capital levels. Since there is no authoritative requirement to calculate the TCE ratio, our TCE ratio is not necessarily comparable to similar capital measures disclosed or used by other companies in the financial services industry. Tangible common equity and adjusted tangible assets are non-GAAP financial measures and should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. Reconciliations with respect to the calculation of the unaudited TCE ratio as of December 31, 2009, September 30, 2009, and December 31, 2008 are provided in the addendum at the end of this press release.
• The ratio of tangible common equity to risk-weighted assets, or TCE/RWA ratio, is calculated by dividing total consolidated common shareholders’ equity (reduced by goodwill and other intangible assets net of related deferred taxes) by total risk-weighted assets (determined in accordance with applicable bank regulatory requirements). As permitted by bank regulations, total risk-weighted assets exclude commercial paper purchased under the AMLF. The TCE/RWA ratio is not required by GAAP or by bank regulations, but is a metric used by management to evaluate the adequacy of State Street’s capital levels. Since there is no authoritative requirement to calculate the TCE/RWA ratio, our TCE/RWA ratio is not necessarily comparable to similar capital measures disclosed or used by other companies in the financial services industry. Tangible common equity is a non-GAAP financial measure and should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. Reconciliations with respect to the calculation of the unaudited TCE/RWA ratio as of December 31, 2009, September 30, 2009, and December 31, 2008 are included in the addendum at the end of this press release.

INVESTOR CONFERENCE CALL

State Street will webcast an investor conference call today, Wednesday, January 20, 2010, at 9:00 a.m. EDT, available at www.statestreet.com/stockholder. The conference call will also be available via telephone, at +1 706/679-5594 or +1 888/391-4233 (Conference ID #49105957). Recorded replays of the conference call will be available on the web site, and by telephone at +1 706/645-9291 or +1 800/642-1687 (Conference ID#49105957) , beginning approximately two hours after the call’s completion. The telephone replay will be available for two weeks following the conference call. This press release, presentation materials referred to on the conference call, and additional financial information are available on State Street’s website, at www.statestreet.com/stockholder under “Investor Information--Latest News, Annual Reports and Financial Trends—Financial Trends,” and “Investor 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 $18.795 trillion in assets under custody and administration and $1.911 trillion in assets under management at December 31, 2009, State Street operates in 25 countries and more than 100 geographic markets and employs 27,310 worldwide. For more information, visit State Street’s web site 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 press release contains forward-looking statements as defined by United States securities laws, including statements about our about our goals and expectations regarding our business, financial condition, results of operations and strategies, the financial and market outlook, governmental and regulatory initiatives and developments, and the business environment. 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 the date of this press release.

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

• financial market disruptions and the economic recession, whether in the U.S. or internationally, and monetary and other governmental actions, including regulation, taxes and fees, designed to address or otherwise be responsive to such disruptions and recession, including actions taken in the U.S. and internationally to address the financial and economic disruptions that began in 2007;
• increases in the potential volatility of, or declines in the levels of, our net interest revenue, changes in the composition of the assets on our consolidated balance sheet and the possibility that we may be required to change the manner in which we fund those assets;
• the financial strength and continuing viability of the counterparties with which we or our customers do business and to which we have investment, credit or financial exposure;
• the liquidity of the U.S. and international securities markets, particularly the markets for fixed-income securities, and the liquidity requirements of our customers;
• 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 income statement recognition of an impairment loss;
• the maintenance of credit agency ratings for our debt and depository obligations as well as the level of credibility of credit agency ratings;
• the ability to complete our announced and pending acquisitions, including the ability to obtain regulatory approvals in multiple jurisdictions and the satisfaction of other closing conditions;
• the risks that acquired businesses will not be integrated successfully, or will take longer than anticipated, that expected synergies will not be achieved or unexpected disynergies will be experienced, that customer 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 customers, employees or regulators;
• the possibility of our customers incurring substantial losses in investment pools where we act as agent, and the possibility of further general reductions in the valuation of assets;
• our ability to attract deposits and other low-cost, short-term funding;
• potential changes to the competitive environment, including changes due to the effects of consolidation, extensive and changing government regulation and perceptions of State Street as a suitable service provider or counterparty;
• 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;
• our ability to measure the fair value of the investment securities on our consolidated balance sheet;
• the results of litigation, government investigations and similar disputes and, in particular, the effect of current or potential proceedings concerning State Street Global Advisors’, or SSgA’s, active fixed-income strategies and other investment products;
• the enactment of legislation and changes in regulation and enforcement that impact us and our customers;
• adverse publicity or other reputational harm;
• our ability to pursue acquisitions, strategic alliances and divestures, finance future business acquisitions and obtain regulatory approvals and consents for acquisitions;
• the performance and demand for the products and services we offer, including the level and timing of withdrawals from our collective investment products;
• 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;
• our ability to control operating risks, information technology systems risks and outsourcing risks, the possibility of errors in the quantitative models we use to manage our business and the possibility that our controls will fail or be circumvented;
• the potential for new products and services to impose additional costs on us and expose us to increased operational risk, and our ability to protect our intellectual property rights;
• changes in government regulation or new legislation, which may increase our costs, expose us to risk related to compliance or impact our customers;
• 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 impact 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 2008 Annual Report on Form 10-K, our Current Report on Form 8-K dated May 18, 2009, 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 press release speak only as of the date hereof, January 20, 2010, and we do not undertake efforts to revise those forward-looking statements to reflect events after this date.

CONTACT:
State Street Corporation
Edward J. Resch, +1 617-664-1110
or
Investors:
Kelley MacDonald, +1 617-664-3477
or
Media:
Hannah Grove, +1 617-664-3377