Exhibit 99.1

State Street Reports Second-Quarter Earnings Per Share of $0.87, Down from $0.99 in the First Quarter of 2010 Due Primarily to Second-Quarter Charge

Operating-Basis Earnings Per Share of $0.93 Increase 24% from $0.75 in the First Quarter of 2010

Fee Revenue Increases 10% Compared to First Quarter of 2010 with Servicing Fees up 9% and Trading Services Fees up 35%

BOSTON--(BUSINESS WIRE)--July 20, 2010--State Street Corporation today announced second-quarter 2010 earnings per common share of $0.87, an increase of 10% compared to $0.79 in the second quarter of 2009 before the conduit-related extraordinary loss. Revenue in the second quarter of 2010 was $2.304 billion, up 9% from $2.122 billion in the second quarter of 2009. Expenses of $1.944 billion in the second quarter increased from $1.364 billion in the second quarter of 2009 due primarily to a securities lending charge described below. Return on shareholders’ equity was 11.0%, down from 13.0%, before the extraordinary loss, in the second quarter of 2009.

Compared to the first quarter of 2010, second quarter 2010 earnings per share were down 12% from $0.99 per share and revenue was up slightly from $2.296 billion. Expenses in the first quarter of 2010 were $1.579 billion. For the first quarter of 2010, return on shareholders’ equity was 13.4%.

State Street’s second-quarter 2010 GAAP-basis results included: a pre-tax charge of $414 million, or $251 million after-tax, separately announced on July 7, 2010, related to certain common and collective trust funds managed by State Street Global Advisors that engage in securities lending, and the agency lending program. GAAP-basis results for the period also included merger and integration costs of $41 million, primarily associated with the acquisitions of Intesa Sanpaolo’s securities services business and Mourant International Finance Administration (“Mourant”); a tax of $21 million on bonus payments to employees in the United Kingdom; a one-time tax benefit of $180 million related to the restructuring of former non-U.S. conduit assets; and discount accretion of $172 million which resulted from the May 2009 consolidation of the asset-backed commercial paper conduits onto State Street’s balance sheet.

State Street’s second-quarter 2009 GAAP-basis results included an after-tax extraordinary loss of $3.684 billion related to the effect of the conduit consolidation. GAAP-basis results for that period also included a prepayment of preferred stock discount of $106 million related to our redemption of the U.S. Treasury’s TARP CPP investment; discount accretion of $112 million resulting from the conduit consolidation; and merger and integration costs of $12 million associated with the 2007 acquisition of Investors Financial Services Corp.

First-quarter 2010 GAAP-basis results included discount accretion of $212 million and merger and integration costs of $13 million.

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. Operating-basis results for the second quarter of 2010 and 2009 and for the first quarter of 2010 therefore exclude the items identified in the three paragraphs above. Reconciliations of GAAP-basis results to operating-basis results are provided in the addendum at the end of this news release. Also see “Additional Information.” Operating-basis net interest revenue for all periods is presented on a fully taxable-equivalent basis and excludes discount accretion related to former conduit assets.

Operating-basis earnings per share in the second quarter of 2010 were $0.93 compared to $0.89 in the second quarter of 2009 and $0.75 in the first quarter of 2010. Operating-basis revenue in the second quarter of 2010 was $2.163 billion, up 6% from $2.041 billion in the second quarter of 2009. On an operating basis, return on equity of 11.8% in the second quarter of 2010 compared with 14.7% in the second quarter of 2009 and 10.0% in the first quarter of 2010.

Joseph L. Hooley, State Street's president and chief executive officer, said, "I am pleased with the clear signs that our business in the second quarter strengthened compared with the first quarter and overall confirmed our full-year outlook for 2010. The 10% increase in total fee revenue demonstrates momentum in our servicing fees as well as the strength in our trading businesses, including foreign exchange, electronic trading and transition management. In the quarter, we added $1.11 trillion in assets to be serviced, including $686 billion from Intesa Sanpaolo’s Securities Services business and Mourant. Our capital levels remain strong and are well in excess of the regulatory “well capitalized” requirements. On an operating basis, we achieved 850 basis points of positive operating leverage compared to the first quarter of 2010 and continued to manage expenses very carefully.”

Hooley continued, “We’re progressing as planned through this transition year, taking advantage of opportunities in the markets through the Intesa acquisition in mid-May and the Mourant acquisition in early April, both of which are contributing to our results this year. With the strength of our fee revenue in the second quarter, including the contribution from these two acquisitions, we continue to expect that our operating-basis earnings per share, which exclude discount accretion, will be slightly higher than the operating-basis $3.32 per share reported last year.”

Hooley concluded, “We are well positioned to take advantage of global growth opportunities and, as the economy normalizes, we are committed to our long-term financial goals for operating-basis revenue, earnings per share and return on equity.”

The table below provides a summary of selected financial information and key ratios for the indicated periods, presented on an operating basis where noted. Unless otherwise specified, all capital ratios referenced in this news 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 news release for reconciliations applicable to the tier 1 common and TCE ratios.

⁽¹⁾ Presented on an operating basis. Operating-basis results for the second quarter of 2009 presented in this news release have been adjusted to reflect the 2010 basis of presentation and therefore exclude discount accretion from the May 2009 consolidation of the former asset-backed commercial paper conduits. Consequently, these operating-basis results may differ from previously disclosed operating-basis results for the same period.

⁽²⁾ Includes assets under custody of $13,999 billion, $14,058 billion, and $12,337 billion, respectively, as of period end Q2 2010, Q1 2010, and Q2 2009.

Total assets were $162 billion at June 30, 2010, compared with $154 billion at March 31, 2010 and $153 billion at June 30, 2009. Excluding $15 billion of excess deposits held at the Federal Reserve and other central banks at June 30, 2010, $19 billion at March 31, 2010, and $20 billion at June 30, 2009, the normalized balance sheet was $147 billion at June 30, 2010, compared to a normalized balance sheet of $135 billion at March 31, 2010 and $133 billion at June 30, 2009. State Street’s regulatory capital ratios continue to be strong as of June 30, 2010, with the Company’s tier 1 capital ratio at 15.1% and its leverage ratio at 7.7%. In addition, at that date, the Company’s tier 1 common ratio was 13.2%, its TCE to risk-weighted assets ratio was 11.9%, and its TCE ratio was 6.3%. The change in ratios reflects the impact of the acquisitions completed in the second quarter, partially offset by internal generation of capital during the period.

At June 30, 2010, the after-tax, unrealized mark-to-market losses in the investment portfolio were $994 million, down 31% from $1.44 billion at March 31, 2010, and down about 79% from $4.75 billion as of June 30, 2009.

In the second quarter of 2010, discount accretion related to the former conduit assets of $172 million, or $0.21 per share, contributed to State Street’s capital strength, and the Company expects a total of about $750 million of accretion in 2010, slightly reduced from our earlier expectation due primarily to lower prepayment speeds. As of June 30, 2010, the Company expects about $3.9 billion in total on a pre-tax basis to accrete into interest revenue over the remaining lives of the assets. These expectations are based on anticipated pre-payment speeds, credit quality, sales-to-date, and assuming the Company holds the securities to maturity.

The following tables provide the components of operating-basis revenue and operating-basis expenses for the noted periods:

⁽¹⁾ Operating-basis information for the second quarter of 2010, the first quarter of 2010, and the second quarter of 2009 included $31 million, $32 million, and $31 million, respectively, of tax-equivalent adjustments, and excluded $172 million, $212 million, and $112 million, respectively, of discount accretion. GAAP-basis net interest revenue for those periods was $658 million, $661 million and $580 million, respectively.

SECOND-QUARTER 2010 RESULTS VS. YEAR-AGO SECOND QUARTER

Servicing fees were up 20% to $957 million from $795 million in last year’s second quarter. The increase was attributable primarily to new business, increases in daily average equity valuations, and the impact of the two acquisitions. Total assets under custody and administration were $19.03 trillion at June 30, 2010, up 16%, compared with $16.39 trillion at June 30, 2009. Daily average values for the S&P 500 Index were up 27% and the MSCI^® EAFE Index^ES increased approximately 18% from the second quarter of 2009.

Investment management fees, generated by State Street Global Advisors, were $217 million, up 12% from $193 million in the year-ago quarter. The increase in management fees was attributable primarily to increases in average month-end equity valuations and net new business. Average month-end equity valuations were up about 22% as measured by the S & P 500 and were up 12% as measured by the MSCI EAFE index^ES. Total assets under management at June 30, 2010, were $1.78 trillion, up 14% compared to $1.56 trillion at June 30, 2009.

Trading services revenue, which includes foreign exchange trading revenue and brokerage and other fees, was $326 million for the second quarter of 2010, an increase of 5% from $310 million in the second quarter a year ago. Foreign exchange revenue decreased 3% primarily due to lower volatility, partially offset by higher volumes. Brokerage and other fees increased 18% due primarily to strength in electronic trading and transition management.

Securities finance revenue was $109 million in the quarter, down 46% from $201 million in the year-ago second quarter due primarily to compressed spreads, despite a slight increase in volumes. Processing fees and other revenue was $87 million compared to $17 million in the second quarter of 2009 due primarily to higher net revenue from structured products, tax-advantaged investments, and other fees in the second quarter of 2010.

Net interest revenue on a fully-taxable equivalent basis, which includes discount accretion, was $689 million. On an operating basis, which excludes discount accretion, net interest revenue was $517 million, an increase of 4% from $499 million in the year-ago second quarter due primarily to the impact of deposits from the Intesa acquisition as well as a modest decrease in funding costs. Net interest margin, including the discount accretion, was 221 basis points in the second quarter of 2010 compared to 193 basis points in the second quarter of 2009. Operating-basis net interest margin was 166 basis points in the second quarter of 2010.

In the quarter, we recorded $3 million of net gains from sales of available-for-sale securities, offset by $(53) million of other-than-temporary impairment, resulting in $(50) million of net losses related to investment securities. In addition, we recorded a $10 million provision for loan losses related to commercial real estate exposures.

Operating-basis expenses of $1.468 billion in the second quarter of 2010 increased 9% compared to $1.352 billion in the year-ago quarter primarily due to increases in salaries and benefits expenses, offset partially by a lower level of other expenses. Salaries and benefits expenses increased 19% to $828 million, because in the second quarter of 2009, we did not accrue discretionary cash incentive compensation in order to support our TCE improvement plan. In addition, the Intesa and Mourant acquisitions in the second quarter of 2010 contributed to salaries and benefits expenses. Transaction processing services increased 12% to $164 million due to higher volumes in the investment servicing business including the impact of the two acquisitions. Other expenses decreased 16% to $186 million due to lower securities processing costs and an $11 million recovery associated with Lehman Brothers.

The effective tax rate on second-quarter 2010 GAAP-basis earnings was (23.4) %, compared to 32.6% in the second quarter of 2009. The reduction of the rate is primarily attributable to a one-time benefit from the restructuring of former non-US conduit assets. The effective tax rate on operating-basis earnings for the second quarter of 2010 was 29.1%, down from 31.5% on the same basis for the second quarter of 2009 due to a change in the geographic mix of earnings. The effective tax rate on operating-basis earnings for the full year 2010 is expected to be between 28% and 29%.

SECOND-QUARTER 2010 RESULTS VS. FIRST QUARTER 2010

The following information is presented on an operating basis. Earnings per common share in the second quarter of 2010 were $0.93, up 24% from $0.75 in the first quarter of 2010. Total revenue in the second quarter of $2.163 billion was up 2.2% compared with first-quarter revenue of $2.116 billion. Total expenses for the second quarter of 2010 were $1.468 billion, down 6.3% compared with $1.566 billion in the first quarter. As a result, we achieved 850 basis points of positive operating leverage comparing the results of the second quarter of 2010 with those of the first quarter of 2010. Return on common shareholders’ equity of 11.8% compared with 10.0% in the first quarter of 2010.

Servicing fees were $957 million, up 9% from $880 million in the first quarter due primarily to the impact of the two acquisitions and new business. Management fees were $217 million, down 4% from $226 million, including lower equity market valuations. Trading services revenue was $326 million, up 35% compared to $242 million due to higher volatility and volumes in foreign exchange as well as stronger fees from transition management and electronic trading in brokerage and other fees. Securities finance revenue was $109 million, up 51% from $72 million in the prior quarter primarily due to higher spreads and volumes associated with the traditional second-quarter seasonality. Processing fees and other revenue decreased from $120 million to $87 million due primarily to the impact of a gain from an early buyout of a legacy leasing transaction in the first quarter of 2010. Fully taxable-equivalent net interest revenue in the second quarter of 2010 totaled $689 million, including discount accretion. On an operating basis, net interest revenue in the second quarter of 2010 was $517 million, up from $481 million in the first quarter of 2010 due to favorable yields in our investment portfolio as well as the impact of the Intesa acquisition.

Compared to the first quarter of 2010, salaries and employee benefits expense decreased 6% to $828 million from $883 million primarily due to lower incentive compensation costs as a result of the charge recorded in the quarter related to our securities lending program, partially offset by the impact of the acquisitions of Intesa and Mourant. Transaction processing expenses increased 7% to $164 million due to higher volumes in the investment servicing business including the impact of the two acquisitions. Other expenses drove overall lower operating-basis expenses, declining 24% to $186 million due to lower securities processing costs and an $11 million recovery associated with Lehman Brothers.

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. Operating-basis return on common equity utilizes annualized operating-basis net income in the calculation. 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 news 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 news release.

Management believes that the use of other non-GAAP financial measures in the calculation of 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 news release.

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 2009 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.

• 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.
• 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. Management is currently monitoring this ratio, along with the other capital ratios described in this news 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 June 30, 2010, March 31, 2010, and June 30, 2009 are provided in the addendum at the end of this news 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 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, nor 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 June 30, 2010, March 31, 2010, and June 30, 2009 are provided in the addendum at the end of this news release.
• The ratio of tangible common equity to risk-weighted assets, or TCE/RWA ratio, is calculated by dividing consolidated total 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). 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 June 30, 2010, March 31, 2010, and June 30, 2009 are included in the addendum at the end of this news release.

INVESTOR CONFERENCE CALL

State Street will webcast an investor conference call today, Tuesday, July 20, 2010, at 9:30 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 #62660494). 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#62660494), beginning approximately two hours after the call’s completion. The telephone replay will be available for approximately two weeks following the conference call. This news release, presentation materials referred to on the conference call, and additional financial information are available on State Street’s website, at 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 $19.03 trillion in assets under custody and administration and $1.78 trillion in assets under management at June 30, 2010, State Street operates in 25 countries and more than 100 geographic markets and employs 28,925 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 news release contains forward-looking statements as defined by United States securities laws, including statements 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. 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 the date of this news release.

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

• 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, the requirement that additional capital be maintained and changes that expose us to risks related to compliance;
• 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 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 clients 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 clients;
• 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;
• the maintenance of credit agency ratings for our debt and depository obligations as well as the level of credibility of credit agency ratings;
• the performance 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;
• the risks that acquired businesses 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 other closing conditions;
• the possibility of our clients 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 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 or proceedings;
• adverse publicity or other reputational harm;
• 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, 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 fail or be circumvented;
• 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 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 2009 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, July 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