STATE STREET CORP - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
EX-99.3 - EXHIBIT 99.3 - STATE STREET CORP	exhibit9931q18earningspr.htm
EX-99.1 - EXHIBIT 99.1 - STATE STREET CORP	exhibit991-1q18earningspre.htm
8-K - 8-K - STATE STREET CORP	form8-k1q18.htm

Exhibit 99.2



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
March 31, 2018

Table of Contents

GAAP-Basis Financial Information:	Page
4-Year Summary of Results	2
Consolidated Financial Highlights	3
Consolidated Results of Operations	4
Consolidated Statement of Condition	6
Average Statement of Condition - Rates Earned and Paid - Fully Taxable-Equivalent Basis	7
Assets Under Custody and Administration	8
Assets Under Management	9

Investment Portfolio:
Investment Portfolio Holdings by Asset Class	10
Investment Portfolio Non-U.S. Investments	11

Non-GAAP Financial Information:
Reconciliations of Non-GAAP Financial Information	12
Reconciliation of Pre-Tax Margin	13
Reconciliation of Constant Currency FX Impacts	14

Capital:
Reconciliation of Tangible Common Equity Ratio	15
Regulatory Capital	16
Reconciliations of Fully Phased-In Capital Ratios	17
Reconciliations of Supplementary Leverage Ratios	19


This financial information should be read in conjunction with State Street's news release dated April 20, 2018.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
4-YEAR SUMMARY OF RESULTS


(Dollars in millions, except per share amounts, or where otherwise noted)	2014			2015			2016			2017
Year ended December 31:
Total fee revenue	$	8,010		$	8,278		$	8,116		$	8,905
Net interest income	2,260			2,088			2,084			2,304
Gains (losses) from sales of available-for-sale securities, net	4			(6		)	7			(39		)
Total revenue	10,274			10,360			10,207			11,170
Provision for loan losses	10			12			10			2
Total expenses	7,827			8,050			8,077			8,269
Income before income tax expense	2,437			2,298			2,120			2,899
Income tax expense (benefit)	415			318			(22		)	722
Net income	2,022			1,980			2,143			2,177
Net income available to common shareholders	$	1,958		$	1,848		$	1,968		$	1,993
Per Common Share:
Diluted earnings per common share	$	4.53		$	4.47		$	4.97		$	5.24
Average diluted common shares outstanding	432,007			413,638			396,090			380,213
Cash dividends declared per common share	$	1.16		$	1.32		$	1.44		$	1.60
Closing price per share of common stock (at quarter end)	78.50			66.36			77.72			97.61
Balance Sheet, as of December 31:
Investment securities	$	112,636		$	100,022		$	97,167		$	97,579
Average total interest-earning assets	209,054			220,456			199,184			191,235
Total assets	274,089			245,155			242,698			238,425
Deposits	209,040			191,627			187,163			184,896
Long-term debt	10,012			11,497			11,430			11,620
Total shareholders' equity	21,328			21,103			21,219			22,317
Ratios and Other Metrics:
Return on average common equity	9.8		%	9.8		%	10.5		%	10.6		%
Pre-tax margin (GAAP-basis)	23.7			22.2			20.8			26.0
Pre-tax margin (historical Operating-basis)⁽¹⁾	30.0			29.1			27.1			31.4
Net interest margin, fully taxable-equivalent basis	1.16			1.03			1.13			1.29
Common equity tier 1 ratio⁽²⁾	12.4			12.5			11.7			12.3
Tier 1 capital ratio⁽²⁾	14.5			15.3			14.8			15.5
Total capital ratio⁽²⁾	16.4			17.4			16.0			16.5
Tier 1 leverage ratio⁽²⁾	6.3			6.9			6.5			7.3
Supplementary leverage ratio⁽²⁾	5.6			6.2			5.9			6.5
Assets under custody and administration (in trillions)	$	28.19		$	27.51		$	28.77		$	33.12
Assets under management (in trillions)	2.45			2.25			2.47			2.78
⁽¹⁾ Refer to Reconciliations of Non-GAAP Financial Information page for details on non-GAAP metrics
⁽²⁾The capital ratios presented are calculated in conformity with the applicable regulatory guidance in effect as of each period end. See Reconciliation of Fully Phased-In Capital Ratios for details of reconciliations between these ratios and our fully phased-in ratios. Effective January 1, 2018, the applicable final rules are in effect and the ratios are calculated based on fully phased-in CET1, Tier 1 and Total capital numbers.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED FINANCIAL HIGHLIGHTS

	Quarters															% Change
(Dollars in millions, except per share amounts, or where otherwise noted)	1Q17			2Q17			3Q17			4Q17			1Q18			1Q18 vs. 1Q17			1Q18 vs. 4Q17
Income Statement
Fee revenue	$	2,198		$	2,235		$	2,242		$	2,230		$	2,363		7.5	%		6.0	%
Net interest income	510			575			603			616			658			29.0			6.8
Gains (losses) from sales of available-for-sale securities, net	(40		)	—			1			—			(2		)	(95.0	)		nm
Total revenue	2,668			2,810			2,846			2,846			3,019			13.2			6.1
Provision for loan losses	(2		)	3			3			(2		)	—			nm			nm
Total expenses	2,086			2,031			2,021			2,131			2,256			8.1			5.9
Income before income tax expense	584			776			822			717			763			30.7			6.4
Income tax expense	82			156			137			347			102			24.4			(70.6	)
Net income	502			620			685			370			661			31.7			78.6
Net income available to common shareholders	$	446		$	584		$	629		$	334		$	605		35.7			81.1
Per Common Share:
Diluted earnings per common share	$	1.15		$	1.53		$	1.66		$	.89		$	1.62		40.9			82.0
Average diluted common shares outstanding (in thousands)	386,417			380,915			378,518			375,477			372,619			(3.6	)		(0.8	)
Cash dividends declared per common share	$	.38		$	.38		$	.42		$	.42		$	.42		10.5			—
Closing price per share of common stock (as of quarter end)	79.61			89.73			95.54			97.61			99.73			25.3			2.2
At quarter-end:
Total assets	$	236,802		$	238,274		$	235,986		$	238,425		$	250,286		5.7			5.0
Investment securities	94,639			95,255			93,088			97,579			85,462			(9.7	)		(12.4	)
Deposits	183,465			181,416			179,263			184,896			191,517			4.4			3.6
Long-term debt	11,394			11,737			11,716			11,620			10,944			(3.9	)		(5.8	)
Total shareholders' equity	21,294			22,068			22,497			22,317			22,399			5.2			0.4
Securities On Loan:
Average securities on loan	$	368		$	384		$	383		$	397		$	397		7.9			—
End-of-period securities on loan	378			376			385			389			405			7.1			4.1
Ratios and Other Metrics:
Return on average common equity	9.9		%	12.6		%	13.0		%	6.9		%	12.8		%	290		bps	590		bps
Pre-tax margin (GAAP-basis)	21.9			27.6			28.9			25.2			25.3			340			10
Pre-tax margin (historical Operating-basis)⁽¹⁾	26.1			33.3			32.9			33.1			27.4			130			(570	)
Net interest margin, fully taxable-equivalent basis	1.17			1.27			1.35			1.38			1.43			26			5
Common equity tier 1 ratio⁽²⁾	11.2			12.0			12.6			12.3			12.1			90			(20	)
Tier 1 capital ratio⁽²⁾	14.4			15.1			15.8			15.5			15.4			100			(10	)
Total capital ratio⁽²⁾	15.4			16.2			16.9			16.5			16.3			90			(20	)
Tier 1 leverage ratio⁽²⁾	6.8			7.0			7.4			7.3			6.9			10			(40	)
Supplementary leverage ratio⁽²⁾	6.1			6.2			6.5			6.5			6.0			(10	)		(50	)
Assets under custody and administration (in billions)	$	29,833		$	31,037		$	32,110		$	33,119		$	33,284		11.6	%		0.5	%
Assets under management (in billions)	2,561			2,606			2,673			2,782			2,729			6.6			(1.9	)
⁽¹⁾ Refer to Reconciliations of Non-GAAP Financial Information page for details on non-GAAP metrics
⁽²⁾The capital ratios presented are calculated in conformity with the applicable regulatory guidance in effect as of each period end. See Reconciliation of Fully Phased-In Capital Ratios for details of reconciliations between these ratios and our fully phased-in ratios. Effective January 1, 2018, the applicable final rules are in effect and the ratios are calculated based on fully phased-in CET1, Tier 1 and Total capital numbers.
^nm Not meaningful



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED RESULTS OF OPERATIONS

	Quarters													% Change
(Dollars in millions, except per share amounts, or where otherwise noted)	1Q17			2Q17		3Q17		4Q17			1Q18			1Q18 vs. 1Q17		1Q18 vs. 4Q17
Reported Results
Fee revenue:
Servicing fees	$	1,296		$	1,339	$	1,351	$	1,379		$	1,421		9.6	%	3.0	%
Management fees	382			397		419		418			472			23.6		12.9
Trading services:
Total foreign exchange trading⁽¹⁾	164			178		150		149			181			10.4		21.5
Total brokerage and other trading services	111			111		109		99			123			10.8		24.2
Total trading services	275			289		259		248			304			10.5		22.6
Securities finance	133			179		147		147			141			6.0		(4.1	)
Processing fees and other	112			31		66		38			25			(77.7	)	(34.2	)
Total fee revenue	2,198			2,235		2,242		2,230			2,363			7.5		6.0
Net interest income:
Interest income	650			700		761		797			857			31.8		7.5
Interest expense	140			125		158		181			199			42.1		9.9
Net interest income	510			575		603		616			658			29.0		6.8
Gains (losses) related to investment securities, net:
Gains (losses) from sales of available-for-sale securities, net	(40		)	—		1		—			(2		)	(95.0	)	nm
Total revenue	2,668			2,810		2,846		2,846			3,019			13.2		6.1
Provision for loan losses	(2		)	3		3		(2		)	—			nm		nm
Expenses:
Compensation and employee benefits	1,166			1,071		1,090		1,067			1,249			7.1		17.1
Information systems and communications	287			283		296		301			315			9.8		4.7
Transaction processing services	197			207		215		219			242			22.8		10.5
Occupancy	110			116		118		117			120			9.1		2.6
Acquisition and restructuring costs	29			71		33		133			—			nm		nm
Other	297			283		269		294			330			11.1		12.2
Total expenses	2,086			2,031		2,021		2,131			2,256			8.1		5.9
Income before income tax expense	584			776		822		717			763			30.7		6.4
Income tax expense	82			156		137		347			102			24.4		(70.6	)
Net income	$	502		$	620	$	685	$	370		$	661		31.7		78.6



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED RESULTS OF OPERATIONS (Continued)

	Quarters															% Change
(Dollars in millions, except per share amounts, or where otherwise noted)	1Q17			2Q17			3Q17			4Q17			1Q18			1Q18 vs. 1Q17			1Q18 vs. 4Q17
Adjustments to net income:
Dividends on preferred stock	$	(55	)	$	(36	)	$	(55	)	$	(36	)	$	(55	)	—	%		52.8	%
Earnings allocated to participating securities	(1		)	—			(1		)	—			(1		)	—			nm
Net income available to common shareholders	$	446		$	584		$	629		$	334		$	605		35.7			81.1
Earnings per common share:
Basic	$	1.17		$	1.56		$	1.69		$	.91		$	1.65		41.0			81.3
Diluted	1.15			1.53			1.66			.89			1.62			40.9			82.0
Average common shares outstanding:
Basic	381,224			375,395			372,765			369,934			367,439			(3.6	)		(0.7	)
Diluted	386,417			380,915			378,518			375,477			372,619			(3.6	)		(0.8	)
Cash dividends declared per common share	$	.38		$	.38		$	.42		$	.42		$	.42		10.5			—
Closing price per share of common stock (as of quarter end)	79.61			89.73			95.54			97.61			99.73			25.3			2.2
Financial ratios:
Return on average common equity	9.9		%	12.6		%	13.0		%	6.9		%	12.8		%	290		bps	590		bps
Return on tangible common equity⁽²⁾	16.0			17.3			18.0			16.7			20.1			410			340
Pre-tax margin (GAAP-basis)	21.9			27.6			28.9			25.2			25.3			340			10
Pre-tax margin (historical Operating-basis)⁽³⁾	26.1			33.3			32.9			33.1			27.4			130			(570	)
Effective tax rate⁽⁴⁾	14.0			20.1			16.7			48.4			13.5			(50	)		(3,490	)

⁽¹⁾ We calculate revenue for indirect foreign exchange using an attribution methodology. This methodology takes into consideration estimated effective mark-ups/downs and observed client volumes. Direct sales and trading revenue is total foreign exchange trading revenue excluding the revenue attributed to indirect foreign exchange.
⁽²⁾Return on tangible common equity is calculated by dividing year-to-date annualized net income available to common shareholders (GAAP-basis) by tangible common equity.
⁽³⁾Refer to Reconciliations of Non-GAAP Financial Information pages for details on non-GAAP basis metrics.
⁽⁴⁾As a result of the enactment of the Tax Cuts and Jobs Act, the fourth-quarter of 2017 included a one-time estimated net cost of $250 million. The GAAP-basis effective tax rate for the fourth-quarter of 2017 excluding this one-time cost was 13.2%.
^nm Not meaningful



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED STATEMENT OF CONDITION

	Quarters															% Change
(Dollars in millions, except per share amounts)	1Q17			2Q17			3Q17			4Q17			1Q18			1Q18 vs. 1Q17		1Q18 vs. 4Q17
Assets:
Cash and due from banks	$	2,909		$	3,156		$	3,939		$	2,107		$	2,546		(12.5	)%	20.8	%
Interest-bearing deposits with banks	66,789			63,617			60,956			67,227			79,418			18.9		18.1
Securities purchased under resale agreements	2,181			3,172			3,465			3,241			5,136			135.5		58.5
Trading account assets	945			896			1,135			1,093			1,178			24.7		7.8
Investment securities:
Investment securities available-for-sale	58,810			59,025			56,238			57,121			44,304			(24.7	)	(22.4	)
Investment securities held-to-maturity⁽¹⁾	35,829			36,230			36,850			40,458			41,158			14.9		1.7
Total investment securities	94,639			95,255			93,088			97,579			85,462			(9.7	)	(12.4	)
Loans and leases, net⁽²⁾	22,486			24,307			23,581			23,240			29,528			31.3		27.1
Premises and equipment, net⁽³⁾	2,101			2,137			2,167			2,186			2,194			4.4		0.4
Accrued interest and fees receivable	2,690			2,805			3,043			3,099			3,183			18.3		2.7
Goodwill	5,855			5,945			5,997			6,022			6,068			3.6		0.8
Other intangible assets	1,710			1,693			1,658			1,613			1,578			(7.7	)	(2.2	)
Other assets	34,497			35,291			36,957			31,018			33,995			(1.5	)	9.6
Total assets	$	236,802		$	238,274		$	235,986		$	238,425		$	250,286		5.7		5.0
Liabilities:
Deposits:
Non-interest-bearing	$	56,786		$	50,957		$	49,850		$	47,175		$	57,025		0.4		20.9
Interest-bearing -- U.S.	26,746			24,438			49,394			50,139			55,094			106.0		9.9
Interest-bearing -- Non-U.S.	99,933			106,021			80,019			87,582			79,398			(20.5	)	(9.3	)
Total deposits	183,465			181,416			179,263			184,896			191,517			4.4		3.6
Securities sold under repurchase agreements	4,003			3,856			3,867			2,842			2,020			(49.5	)	(28.9	)
Other short-term borrowings	1,177			1,465			1,253			1,144			1,066			(9.4	)	(6.8	)
Accrued expenses and other liabilities	15,469			17,732			17,390			15,606			22,340			44.4		43.2
Long-term debt	11,394			11,737			11,716			11,620			10,944			(3.9	)	(5.8	)
Total liabilities	215,508			216,206			213,489			216,108			227,887			5.7		5.5
Shareholders' equity:
Preferred stock, no par, 3,500,000 shares authorized:
Series C, 5,000 shares issued and outstanding	491			491			491			491			491			—		—
Series D, 7,500 shares issued and outstanding	742			742			742			742			742			—		—
Series E, 7,500 shares issued and outstanding	728			728			728			728			728			—		—
Series F, 7,500 shares issued and outstanding	742			742			742			742			742			—		—
Series G, 5,000 shares issued and outstanding	493			493			493			493			493			—		—
Common stock, $1 par, 750,000,000 shares authorized⁽⁴⁾	504			504			504			504			504			—		—
Surplus	9,796			9,803			9,803			9,799			9,796			—		—
Retained earnings	17,762			18,202			18,675			18,856			19,311			8.7		2.4
Accumulated other comprehensive income (loss)	(1,805		)	(1,270		)	(984		)	(1,009		)	(1,074		)	(40.5	)	6.4
Treasury stock, at cost⁽⁵⁾	(8,159		)	(8,367		)	(8,697		)	(9,029		)	(9,334		)	14.4		3.4
Total shareholders' equity	21,294			22,068			22,497			22,317			22,399			5.2		0.4
Total liabilities and equity	$	236,802		$	238,274		$	235,986		$	238,425		$	250,286		5.7		5.0


	1Q17			2Q17			3Q17			4Q17			1Q18
⁽¹⁾Fair value of investment securities held-to-maturity	$	35,694		$	36,169		$	36,836		$	40,255		$	40,483
⁽²⁾ Allowance for loan losses	51			54			58			54			54
⁽³⁾ Accumulated depreciation for premises and equipment	3,463			3,611			3,750			3,881			4,005
⁽⁴⁾ Common stock shares issued	503,879,642			503,879,642			503,879,642			503,879,642			503,879,642
⁽⁵⁾ Treasury stock shares	127,520,264			129,773,003			133,038,955			136,229,784			138,472,445



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
AVERAGE STATEMENT OF CONDITION - RATES EARNED AND PAID - FULLY TAXABLE-EQUIVALENT BASIS⁽²⁾
The following table presents average rates earned and paid, on a fully taxable-equivalent basis, on consolidated average interest-earning assets and average interest-bearing liabilities for the quarters indicated. Tax-equivalent adjustments were calculated using a federal income tax rate of 35%, adjusted for applicable state income taxes, net of related federal benefit. Refer to Reconciliations of Operating-Basis (Non-GAAP) Financial Information within this package for reconciliations of GAAP-basis to fully taxable-equivalent basis net interest income for each of the periods shown below.

	Quarters																									% Change
	1Q17					2Q17					3Q17					4Q17					1Q18					1Q18 vs. 1Q17		1Q18 vs. 4Q17
(Dollars in millions; fully-taxable equivalent basis)	Average balance		Average rates			Average balance		Average rates			Average balance		Average rates			Average balance		Average rates			Average balance		Average rates			Average balance		Average balance
Assets:
Interest-bearing deposits with banks	$	48,893	0.28		%	$	53,146	0.31		%	$	45,513	0.40		%	$	42,597	0.55		%	$	51,492	0.64		%	5.3	%	20.9	%
Securities purchased under resale agreements⁽¹⁾	2,056		9.07			2,352		11.77			2,167		13.53			1,950		15.25			2,872		10.89			39.7		47.3
Trading account assets	914		—			941		—			991		—			1,194		—			1,138		—			24.5		(4.7	)
Investment securities
U.S. Treasury and federal agencies
Direct obligations	21,705		1.53			19,421		1.60			18,091		1.66			17,586		1.68			17,183		1.67			(20.8	)	(2.3	)
Mortgage-and asset-backed securities	23,710		2.18			23,013		2.27			23,160		2.27			26,441		2.31			28,307		2.59			19.4		7.1
State and political subdivisions	10,314		3.83			9,914		3.77			9,976		3.79			9,515		3.82			8,622		3.23			(16.4	)	(9.4	)
Other investments
Asset-backed securities	22,609		1.49			23,367		1.56			23,866		1.64			21,727		1.65			19,543		1.78			(13.6	)	(10.1	)
Collateralized mortgage-backed securities and obligations	3,939		2.71			3,780		2.72			3,394		2.78			2,608		2.75			2,088		2.07			(47.0	)	(19.9	)
Money market mutual funds	360		0.37			322		—			385		0.64			416		0.72			—		—			(100.0	)	(100.0	)
Other debt investments and equity securities	14,582		1.34			14,820		1.27			16,439		1.24			17,672		1.25			19,619		1.25			34.5		11.0
Total investment securities	97,219		1.94			94,637		1.97			95,311		1.99			95,965		2.01			95,362		2.03			(1.9	)	(0.6	)
Loans and leases	20,139		2.17			21,070		2.31			22,843		2.49			23,566		2.46			23,959		2.68			19.0		1.7
Other interest-earning assets	22,619		0.62			23,141		0.76			23,091		1.18			22,681		1.32			17,733		1.78			(21.6	)	(21.8	)
Total interest-earning assets	191,840		1.47			195,287		1.52			189,916		1.68			187,953		1.77			192,556		1.85			0.4		2.4
Cash and due from banks	2,608					3,833					3,098					2,848					3,081					18.1		8.2
Other assets	24,761					24,797					25,355					25,547					31,233					26.1		22.3
Total assets	$	219,209				$	223,917				$	218,369				$	216,348				$	226,870				3.5		4.9
Liabilities:
Interest-bearing deposits:
U.S.	$	25,928	0.50		%	$	25,770	0.38		%	$	25,767	0.32		%	$	44,873	0.17		%	$	48,638	0.28		%	87.6		8.4
Non-U.S.⁽³⁾	94,990		0.05			99,389		(0.04		)	96,189		0.07			77,327		0.24			78,582		0.07			(17.3	)	1.6
Total interest-bearing deposits⁽³⁾	120,918		0.15			125,159		0.05			121,956		0.13			122,200		0.22			127,220		0.15			5.2		4.1
Securities sold under repurchase agreements⁽⁴⁾	3,894		—			4,028		—			3,974		0.07			2,843		—			2,617		0.16			(32.8	)	(7.9	)
Federal funds purchased	—		—			2		—			—		—			—		—			—		—			nm		nm
Other short-term borrowings	1,341		0.63			1,322		0.80			1,277		0.81			1,311		0.96			1,255		1.09			(6.4	)	(4.3	)
Long-term debt	11,421		2.56			11,515		2.61			11,766		2.67			11,674		2.79			11,412		3.37			(0.1	)	(2.2	)
Other interest-bearing liabilities	5,240		1.63			5,355		2.44			4,063		3.70			3,791		3.10			5,260		3.87			0.4		38.7
Total interest-bearing liabilities	142,814		0.40			147,381		0.34			143,036		0.44			141,819		0.51			147,764		0.55			3.5		4.2
Non-interest bearing deposits	44,249					42,244					39,685					38,889					37,790					(14.6	)	(2.8	)
Other liabilities	10,626					12,441					13,294					13,117					18,942					78.3		44.4
Preferred shareholders' equity	3,197					3,197					3,197					3,197					3,197					—		—
Common shareholders' equity	18,323					18,654					19,157					19,326					19,177					4.7		(0.8	)
Total liabilities and shareholders' equity	$	219,209				$	223,917				$	218,369				$	216,348				$	226,870				3.5		4.9
Excess of rate earned over rate paid			1.07		%			1.18		%			1.24		%			1.26		%			1.30		%
Net interest margin			1.17		%			1.27		%			1.35		%			1.38		%			1.43		%
Net interest income, fully taxable-equivalent basis			$	553				$	617				$	645				$	656				$	679
Tax-equivalent adjustment			(43		)			(42		)			(42		)			(40		)			(21		)
Net interest income, GAAP-basis			$	510				$	575				$	603				$	616				$	658

⁽¹⁾ Reflects the impact of balance sheet netting under enforceable netting agreements of approximately $31 billion, $33 billion, $30 billion and $31 billion for the first, second, third and fourth quarters of 2017, respectively, and approximately $32 billion in the first quarter of 2018. Excluding the impact of netting, the average interest rates would be approximately 0.56%, 0.79%, 0.92%, and 0.90% for the first, second, third and fourth quarters of 2017 and approximately 0.89% for the first quarter of 2018, respectively.
⁽²⁾Rates earned/paid on interest-earning assets and interest-bearing liabilities include the impact of hedge activities associated with our asset and liability management activities where applicable.
⁽³⁾ Average rate includes the impact of FX swap expense of approximately $32 million, $13 million, $39 million and $57 million for the first, second, third and fourth quarters of 2017 and $19 million for the first quarter of 2018, respectively. Average rates for total interest-bearing deposits excluding the impact of FX swap expense were 0.04%, 0.00%, 0.00% and 0.03% for the first, second, third, and fourth quarters of 2017 and 0.09% for the first quarter of 2018, respectively.
⁽⁴⁾Interest for each period shown was less than $1 million representing average interest rates of 0.03%, 0.04% and 0.06% for the first, second and fourth quarters of 2017, respectively.
^nm Not meaningful



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ASSETS UNDER CUSTODY AND ADMINISTRATION

	Quarters										% Change
(Dollars in billions)	1Q17		2Q17		3Q17		4Q17		1Q18		1Q18 vs. 1Q17		1Q18 vs. 4Q17
Assets Under Custody and Administration
By Product Classification:
Mutual funds	$	7,033	$	7,123	$	7,394	$	7,603	$	7,503	6.7	%	(1.3	)%
Collective funds, including ETFs	8,024		8,560		9,190		9,707		9,908		23.5		2.1
Pension products	5,775		5,937		6,571		6,704		6,802		17.8		1.5
Insurance and other products	9,001		9,417		8,955		9,105		9,071		0.8		(0.4	)
Total Assets Under Custody and Administration	$	29,833	$	31,037	$	32,110	$	33,119	$	33,284	11.6		0.5
By Financial Instrument⁽¹⁾:
Equities	$	17,041	$	17,859	$	18,423	$	19,214	$	19,198	12.7		(0.1	)
Fixed-income	9,300		9,560		9,883		10,070		10,186		9.5		1.2
Short-term and other investments	3,492		3,618		3,804		3,835		3,900		11.7		1.7
Total Assets Under Custody and Administration	$	29,833	$	31,037	$	32,110	$	33,119	$	33,284	11.6		0.5
By Geographic Location⁽²⁾:
North America	$	22,361	$	23,020	$	23,675	$	24,418	$	24,336	8.8		(0.3	)
Europe/Middle East/Africa	5,979		6,464		6,806		7,028		7,211		20.6		2.6
Asia/Pacific	1,493		1,553		1,629		1,673		1,737		16.3		3.8
Total Assets Under Custody and Administration	$	29,833	$	31,037	$	32,110	$	33,119	$	33,284	11.6		0.5
Assets Under Custody⁽³⁾
By Product Classification:
Mutual funds	$	6,499	$	6,577	$	6,818	$	6,998	$	6,894	6.1		(1.5	)
Collective funds, including ETFs	6,601		7,107		7,638		8,091		8,189		24.1		1.2
Pension products	5,212		5,399		5,480		5,606		5,682		9.0		1.4
Insurance and other products	4,193		4,279		4,304		4,325		4,281		2.1		(1.0	)
Total Assets Under Custody	$	22,505	$	23,362	$	24,240	$	25,020	$	25,046	11.3		0.1
By Geographic Location⁽²⁾:
North America	$	17,747	$	18,223	$	18,691	$	19,276	$	19,131	7.8		(0.8	)
Europe/Middle East/Africa	3,635		3,969		4,323		4,487		4,617		27.0		2.9
Asia/Pacific	1,123		1,170		1,226		1,257		1,298		15.6		3.3
Total Assets Under Custody	$	22,505	$	23,362	$	24,240	$	25,020	$	25,046	11.3		0.1

⁽¹⁾ Certain previously reported amounts have been reclassified to conform to current period presentation.
⁽²⁾ Geographic mix is based on the location at which the assets are serviced.
⁽³⁾ Assets under custody are a component of assets under custody and administration presented above.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ASSETS UNDER MANAGEMENT

	Quarters										% Change
(Dollars in billions)	1Q17		2Q17		3Q17		4Q17		1Q18		1Q18 vs. 1Q17		1Q18 vs. 4Q17
Assets Under Management
By Asset Class and Investment Approach:
Equity:
Active	$	77	$	82	$	95	$	95	$	94	22.1	%	(1.1	)%
Passive	1,482		1,512		1,545		1,650		1,576		6.3		(4.5	)
Total Equity	1,559		1,594		1,640		1,745		1,670		7.1		(4.3	)
Fixed-Income:
Active	69		71		73		77		79		14.5		2.6
Passive	312		327		325		337		354		13.5		5.0
Total Fixed-Income	381		398		398		414		433		13.6		4.6
Cash⁽¹⁾	335		334		347		330		336		0.3		1.8
Multi-Asset-Class Solutions:
Active	19		18		18		18		18		(5.3	)	—
Passive	113		113		117		129		128		13.3		(0.8	)
Total Multi-Asset-Class Solutions	132		131		135		147		146		10.6		(0.7	)
Alternative Investments⁽²⁾:
Active	26		27		24		23		23		(11.5	)	—
Passive	128		122		129		123		121		(5.5	)	(1.6	)
Total Alternative Investments	154		149		153		146		144		(6.5	)	(1.4	)
Total Assets Under Management	$	2,561	$	2,606	$	2,673	$	2,782	$	2,729	6.6		(1.9	)
By Geographic Location⁽³⁾:
North America	$	1,772	$	1,802	$	1,845	$	1,931	$	1,885	6.4		(2.4	)
Europe/Middle East/Africa	486		496		510		521		511		5.1		(1.9	)
Asia/Pacific	303		308		318		330		333		9.9		0.9
Total Assets Under Management	$	2,561	$	2,606	$	2,673	$	2,782	$	2,729	6.6		(1.9	)

⁽¹⁾ Includes both floating- and constant-net-asset-value portfolios held in commingled structures or separate accounts.
⁽²⁾ Includes real estate investment trusts, currency and commodities, including SPDR^® Gold Shares ETF and SPDR^® Long Dollar Gold Trust ETF. State Street is not the investment manager for SPDR^® Gold Shares ETF and SPDR^®Long Dollar Gold Trust ETF, but acts as marketing agent.
⁽³⁾ Geographic mix is based on client location or fund management location.

Exchange-Traded Funds⁽¹⁾
By Asset Class:
Alternative Investments	$	46	$	46	$	48	$	48	$	48	4.3	%	—	%
Cash	2		2		2		2		3		50.0		50.0
Equity	457		460		478		531		513		12.3		(3.4	)
Fixed-Income	53		58		61		63		65		22.6		3.2
Total Exchange-Traded Funds	$	558	$	566	$	589	$	644	$	629	12.7		(2.3	)

⁽¹⁾ Exchange-traded funds are a component of assets under management presented above.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO HOLDINGS BY ASSET CLASS

March 31, 2018	Ratings
(Dollars in billions, or where otherwise noted)	UST/AGY			AAA			AA			A			BBB			<BBB			NR			Book Value⁽¹⁾		Book Value (% Total)		Net Unrealized After-tax MTM Gain/(Loss) (In millions)⁽²⁾			Fixed Rate/ Floating Rate
Government & agency securities	59		%	12		%	15		%	8		%	6		%	—		%	—		%	$	28.7	33.5	%	$	(161	)	99% / 1%
Asset-backed securities	—			69			26			2			2			1			—			13.4		15.7		74			6% / 94%
Student loans	—			39			54			1			5			1			—			4.7		35.3		28
Credit cards	—			100			—			—			—			—			—			2.6		19.5		(20		)
Auto & equipment	—			75			24			1			—			—			—			0.9		6.8		1
Non-U.S. residential mortgage backed securities	—			77			14			5			2			2			—			3.7		27.8		61
Collateralized loan obligation	—			100						—			—			—			—			1.1		8.3		4
Other	—			28			72			—			—			—			—			0.3		2.3		1
Mortgage-backed securities	98			1			—			—			—			1			—			26.6		31.1		(562		)	97% / 3%
Agency MBS	100			—			—			—			—			—			—			26.2		98.5		(579		)
Non-agency MBS	—			36			1			1			14			41			7			0.4		1.5		17
CMBS	65			35			—			—			—			—			—			3.4		4.0		(40		)	58% / 42%
Corporate bonds	—			—			16			53			31			—			—			4.0		4.7		(24		)	93% / 7%
Covered bonds	—			100			—			—			—			—			—			2.2		2.6		7			11% / 89%
Municipal bonds	—			30			65			5			—			—			—			5.7		6.6		65			99% / 1%
Clipper tax-exempt bonds/other	—			14			60			19			7			—			—			1.6		1.8		17			4% / 96%
Total Portfolio	53		%	22		%	15		%	6		%	4		%	—		%	—		%	$	85.6	100.0	%	$	(624	)	78% / 22%

Book Value	$	45.4		$	18.1		$	13.2		$	5.1		$	3.5		$	0.3		$	—		$	85.6

⁽¹⁾ Portfolio amounts are expressed at book value; book value includes the amortized cost of transferred securities at the time they were transferred.
⁽²⁾ At March 31, 2018 the after-tax unrealized MTM gain/(loss) includes after-tax unrealized loss on securities available-for-sale of $100 million, after-tax unrealized loss on securities held-to-maturity of $499 million and after-tax unrealized loss primarily related to securities previously transferred from available-for-sale to held-to-maturity of $25 million.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO NON-U.S. INVESTMENTS

March 31, 2018				Book Value
(In billions)	Book Value		Average Rating	Gov't/Agency⁽¹⁾		ABS FRMBS		ABS All Other		Corporate Bonds		Covered Bonds		Other
United Kingdom	$	4.1	AAA	$	0.8	$	1.7	$	0.8	$	0.3	$	0.5	$	—
Australia	3.0		AAA	1.1		0.9		0.1		0.3		0.4		0.2
Canada	2.5		AAA	1.9		—		—		0.2		0.4		—
France	2.2		AA	1.4		—		0.3		0.3		0.2		—
Italy	1.5		A	0.8		0.5		0.2		—		—		—
Japan	1.4		A	1.4		—		—		—		—		—
Spain	1.3		BBB	1.0		0.1		0.2		—		—		—
Belgium	1.1		AA	0.9		—		—		—		0.2		—
Netherlands	1.0		AA	—		0.5		0.1		0.3		0.1		—
Ireland	0.7		A	0.7		—		—		—		—		—
Hong Kong	0.7		AA	0.7		—		—		—		—		—
Germany	0.5		AAA	0.2		—		0.3		—		—		—
Sweden	0.4		AA	—		—		—		0.2		0.2		—
Singapore	0.3		AAA	0.3		—		—		—		—		—
Other	0.8		AA	0.4		—		—		0.1		0.3		—
Total Non-U.S. Investments⁽²⁾	$	21.5		$	11.6	$	3.7	$	2.0	$	1.7	$	2.3	$	0.2
U.S. Investments	64.1
Total Portfolio	$	85.6

⁽¹⁾ Sovereign debt is reflected in the government / agency column.
⁽²⁾Country of collateral used except for corporates where country of issuer is used.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF NON-GAAP FINANCIAL INFORMATION
In addition to presenting State Street's financial results in conformity with U.S. generally accepted accounting principles, or GAAP, management also presents certain financial information on a non-GAAP basis. In general, our non-GAAP financial results adjust selected GAAP-basis financial results to exclude the impact of revenue and expenses outside of State Street’s normal course of business, such as acquisition and restructuring charges. Management believes that this presentation of financial information facilitates an investor's further understanding and analysis of State Street's financial performance and trends with respect to State Street’s business operations from period to period, including providing additional insight into our underlying margin and profitability, in addition to financial information prepared and reported in conformity with GAAP.
Management may also provide additional non-GAAP measures. For example, we present capital ratios, calculated under regulatory standards scheduled to be effective in the future or other standards, that management uses in evaluating State Street’s business and activities and believes may similarly be useful to investors. Additionally, we may present revenue and expense measures on a constant currency basis to identify the significance of changes in foreign currency exchange rates (which often are variable) in period-to-period comparisons. This presentation represents the effects of applying prior period weighted average foreign currency exchange rates to current period results.
Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in conformity with GAAP.

		Quarters														% Change
(Dollars in millions)		1Q17			2Q17			3Q17			4Q17			1Q18		1Q18 vs. 1Q17			1Q18 vs. 4Q17
Fee Revenue⁽¹⁾:
Total fee revenue, GAAP-basis		$	2,198		$	2,235		$	2,242		$	2,230		$	2,363	7.5	%		6.0	%
	Less: Gain on sale	(30		)	—			(26		)	—			—
Total fee revenue, Adjusted-GAAP basis		$	2,168		$	2,235		$	2,216		$	2,230		$	2,363	9.0			6.0

Total Revenue⁽¹⁾:
Total revenue, GAAP-basis		$	2,668		$	2,810		$	2,846		$	2,846		$	3,019	13.2			6.1
	Less: Gain on sale	(30		)	—			(26		)	—			—
Total revenue, Adjusted-GAAP basis		$	2,638		$	2,810		$	2,820		$	2,846		$	3,019	14.4			6.1

Expenses⁽¹⁾⁽²⁾:
Total expenses, GAAP-basis		$	2,086		$	2,031		$	2,021		$	2,131		$	2,256	8.1			5.9
	Less: Acquisition and restructuring costs	(29		)	(71		)	(33		)	(133		)	—
Total expenses, Adjusted-GAAP basis		$	2,057		$	1,960		$	1,988		$	1,998		$	2,256	9.7			12.9

Fee Operating Leverage, GAAP-Basis:
Total fee revenue, GAAP-basis		$	2,198		$	2,235		$	2,242		$	2,230		$	2,363	7.51	%		5.96	%
Total expenses, GAAP-basis		2,086			2,031			2,021			2,131			2,256		8.15			5.87
Fee operating leverage, GAAP-basis																(64	)	bps	9		bps

Fee Operating Leverage, Adjusted-GAAP Basis:
Total fee revenue, Adjusted-GAAP basis (as reconciled above)		$	2,168		$	2,235		$	2,216		$	2,230		$	2,363	8.99	%		5.96	%
Total expenses, Adjusted-GAAP basis (as reconciled above)		2,057			1,960			1,988			1,998			2,256		9.67			12.91
Fee operating leverage, Adjusted-GAAP Basis																(68	)	bps	(695	)	bps

Operating Leverage, GAAP-Basis:
Total revenue, GAAP-basis		$	2,668		$	2,810		$	2,846		$	2,846		$	3,019	13.16	%		6.08	%
Total expenses, GAAP-basis		2,086			2,031			2,021			2,131			2,256		8.15			5.87
Operating leverage, GAAP-basis																501		bps	21		bps

Operating Leverage, Adjusted-GAAP Basis:
Total revenue, Adjusted-GAAP basis (as reconciled above)		$	2,638		$	2,810		$	2,820		$	2,846		$	3,019	14.44	%		6.08	%
Total expenses, Adjusted-GAAP basis (as reconciled above)		2,057			1,960			1,988			1,998			2,256		9.67			12.91
Operating leverage, Adjusted-GAAP basis																477		bps	(683	)	bps


⁽¹⁾ The impact of acquired operations on total revenue and fee revenue contributed approximately $71 million, and $72 million for the first and second quarters of 2017, respectively. The impact of acquired operations on expenses contributed approximately $51 million, and $51 million for the first and second quarters of 2017, respectively, excluding merger and integration charges and financing costs.
⁽²⁾Excluding the impact of foreign currency translation of $54 million relative to 1Q17, and the impact of the new revenue recognition accounting standard of $65 million, adjusted-GAAP expenses grew 4% over 1Q17.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF PRE-TAX MARGIN
Prior to 1Q18, management presented results on an operating-basis to both: (1) exclude the impact of revenue and expenses outside of State Street’s normal course of business, such as restructuring charges; and (2) present revenue from non-taxable sources, such as interest income from tax-exempt investment securities and processing fees and other revenue associated with tax-advantaged investments, on a fully-taxable equivalent basis.
Beginning in 1Q18 State Street presents results only on a GAAP basis, along with certain non-GAAP measures that management believes may be useful to investors. As management has previously communicated the expected impact of State Street Beacon on pre-tax margin based on historical operating-basis results, pre-tax margin has been provided on that historical operating-basis to allow investors to assess performance with respect to State Street Beacon on a consistent basis.

	Quarters															% Change
	1Q17			2Q17			3Q17			4Q17			1Q18			1Q18 vs. 1Q17			1Q18 vs. 4Q17
Total revenue, GAAP-basis	$	2,668		$	2,810		$	2,846		$	2,846		$	3,019		13.2	%		6.1	%
Tax-equivalent adjustment associated with tax advantaged investments	70			89			79			78			66			(5.7	)		(15.4	)
Tax-equivalent adjustment associated with tax exempt investments	43			42			42			40			21			(51.2	)		(47.5	)
Impact of tax legislation	—			—			—			20			—			nm			nm
Total revenue, historical Operating-basis	2,781			2,941			2,967			2,984			3,106			11.7			4.1

Provision for loan losses	(2		)	3			3			(2		)	—			(100.0	)		(100.0	)

Total expenses, GAAP-basis	2,086			2,031			2,021			2,131			2,256			8.1			5.9
Acquisition and restructuring costs	(29		)	(71		)	(33		)	(133		)	—			(100.0	)		(100.0	)
Total expenses, historical Operating-basis	2,057			1,960			1,988			1,998			2,256			9.7			12.9

Income before taxes, historical Operating-basis	$	726		$	978		$	976		$	988		$	850		17.1			(14.0	)

Pre-tax margin, historical Operating-basis⁽¹⁾	26.1		%	33.3		%	32.9		%	33.1		%	27.4		%	130		bps	(570	)	bps
⁽¹⁾Pre-tax margin is calculated by dividing income before taxes by total revenue
^nm Not meaningful



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF CONSTANT CURRENCY FX IMPACTS

GAAP-Basis Quarter Comparison	Reported								Currency Translation Impact				Excluding Currency Impact						% Change Constant Currency
(Dollars in millions)	1Q17			4Q17		1Q18			1Q18 vs. 1Q17		1Q18 vs. 4Q17		1Q18 vs. 1Q17			1Q18 vs. 4Q17			1Q18 vs. 1Q17		1Q18 vs. 4Q17
Fee revenue:
Servicing fees	$	1,296		$	1,379	$	1,421		$	44	$	19	$	1,377		$	1,402		6.3	%	1.7	%
Management fees	382			418		472			9		5		463			467			21.2		11.7
Trading services	275			248		304			7		3		297			301			8.0		21.4
Securities finance	133			147		141			1		—		140			141			5.3		(4.1	)
Processing fees and other	112			38		25			1		—		24			25			(78.6	)	(34.2	)
Total fee revenue	2,198			2,230		2,363			62		27		2,301			2,336			4.7		4.8
Net interest income	510			616		658			10		5		648			653			27.1		6.0
Gains (losses) related to investment securities, net	(40		)	—		(2		)	—		—		(2		)	(2		)	nm		nm
Total revenue	$	2,668		$	2,846	$	3,019		$	72	$	32	$	2,947		$	2,987		10.5		5.0

Expenses:
Compensation and employee benefits	$	1,166		$	1,067	$	1,249		$	31	$	14	$	1,218		$	1,235		4.5		15.7
Information systems and communications	287			301		315			4		1		311			314			8.4		4.3
Transaction processing services	197			219		242			5		2		237			240			20.3		9.6
Occupancy	110			117		120			5		2		115			118			4.5		0.9
Acquisition and restructuring costs	29			133		—			—		—		—			—			(100.0	)	(100.0	)
Other	297			294		330			9		3		321			327			8.1		11.2
Total expenses	$	2,086		$	2,131	$	2,256		$	54	$	22	$	2,202		$	2,234		5.6		4.8
^nm Not meaningful



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF TANGIBLE COMMON EQUITY RATIO

The accompanying materials present capital ratios in addition to, or adjusted from, those calculated in conformity with applicable regulatory requirements. These include capital ratios based on tangible common equity, as well as capital ratios adjusted to reflect our estimate of the impact of the relevant Basel III requirements, as specified in the July 2013 final rule issued by the Board of Governors of the Federal Reserve System, referred to as the Basel III final rule. These non-regulatory and adjusted capital measures are non-GAAP financial measures. Management currently calculates the non-GAAP capital ratios presented in the news release to aid in its understanding of State Street’s capital position under a variety of standards, including currently applicable and transitioning regulatory requirements. Management believes that the use of the non-GAAP capital ratios presented in the accompanying materials similarly aids in an investor's understanding of State Street's capital position and therefore is of interest to investors.
The common equity tier 1 risk-based capital, or CET1, tier 1 risk-based capital, total risk-based capital and tier 1 leverage ratios have each been calculated in conformity with applicable regulatory requirements as of the dates that each was first publicly disclosed. The capital component, or numerator, of these ratios was calculated in conformity with the provisions of the Basel III final rule. For the periods below the total risk-weighted assets component, or denominator, used in the calculation of the CET1, tier 1 risk-based capital and total risk-based capital ratios were each calculated in conformity with the advanced approaches and standardized approach provisions of Basel III, as the case may be.
The advanced approaches-based ratios (actual and estimated) included in this presentation reflect calculations and determinations with respect to our capital and related matters, based on State Street and external data, quantitative formula, 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 ratio’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, individually or collectively, precisely 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 that 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.
The tangible common equity, or TCE, ratio is an additional capital ratio that management believes provides context useful in understanding and assessing State Street's capital adequacy. The 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 banking 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 or other applicable requirements. Reconciliations with respect to the calculation of the TCE ratios are provided within the Reconciliation of Tangible Common Equity Ratio within this package.
The following table presents the calculation of State Street's ratios of tangible common equity to total tangible assets.
		Quarters
(Dollars in millions)		1Q17			2Q17			3Q17			4Q17			1Q18
Consolidated total assets		$	236,802		$	238,274		$	235,986		$	238,425		$	250,286
Less:
Goodwill		5,855			5,945			5,997			6,022			6,068
Other intangible assets		1,710			1,693			1,658			1,613			1,578
Cash balances held at central banks in excess of required reserves		59,780			56,326			51,965			56,712			62,901
Adjusted assets		169,457			174,310			176,366			174,078			179,739
Plus related deferred tax liabilities		649			651			647			479			477
Total tangible assets	A	$	170,106		$	174,961		$	177,013		$	174,557		$	180,216
Consolidated total common shareholders' equity		$	18,098		$	18,872		$	19,301		$	19,121		$	19,203
Less:
Goodwill		5,855			5,945			5,997			6,022			6,068
Other intangible assets		1,710			1,693			1,658			1,613			1,578
Adjusted equity		10,533			11,234			11,646			11,486			11,557
Plus related deferred tax liabilities		649			651			647			479			477
Total tangible common equity	B	$	11,182		$	11,885		$	12,293		$	11,965		$	12,034
Tangible common equity ratio	B/A	6.6		%	6.8		%	6.9		%	6.9		%	6.7		%

GAAP Basis:
Net income available to common shareholders		$	446		$	584		$	629		$	334		$	605
Return on tangible common equity		16.0		%	17.3		%	18.0		%	16.7		%	20.1		%

STATE STREET CORPORATION

EARNINGS RELEASE ADDENDUM

REGULATORY CAPITAL



	Quarters
	1Q17						2Q17						3Q17						4Q17						1Q18
(Dollars in millions)	Basel III Advanced Approaches⁽¹⁾			Basel III Standardized Approach⁽²⁾			Basel III Advanced Approaches⁽¹⁾			Basel III Standardized Approach⁽²⁾			Basel III Advanced Approaches⁽¹⁾			Basel III Standardized Approach⁽²⁾			Basel III Advanced Approaches⁽¹⁾			Basel III Standardized Approach⁽²⁾			Basel III Advanced Approaches⁽¹⁾			Basel III Standardized Approach⁽²⁾
RATIOS:
Common equity tier 1 capital	11.2		%	11.5		%	12.0		%	11.2		%	12.6		%	11.6		%	12.3		%	11.9		%	12.1		%	10.8		%
Tier 1 capital	14.4			14.7			15.1			14.2			15.8			14.5			15.5			15.0			15.4			13.7
Total capital	15.4			15.9			16.2			15.2			16.9			15.6			16.5			16.0			16.3			14.6
Tier 1 leverage	6.8			6.8			7.0			7.0			7.4			7.4			7.3			7.3			6.9			6.9

Supporting Calculations:
Common equity tier 1 capital	$	11,319		$	11,319		$	12,007		$	12,007		$	12,439		$	12,439		$	12,204		$	12,204		$	11,947		$	11,947
Total risk-weighted assets	100,843			98,494			100,265			107,069			98,997			107,580			99,156			102,683			98,512			110,477
Common equity tier 1 risk-based capital ratio	11.2		%	11.5		%	12.0		%	11.2		%	12.6		%	11.6		%	12.3		%	11.9		%	12.1		%	10.8		%

Tier 1 capital	$	14,475		$	14,475		$	15,165		$	15,165		$	15,606		$	15,606		$	15,382		$	15,382		$	15,143		$	15,143
Total risk-weighted assets	100,843			98,494			100,265			107,069			98,997			107,580			99,156			102,683			98,512			110,477
Tier 1 risk-based capital ratio	14.4		%	14.7		%	15.1		%	14.2		%	15.8		%	14.5		%	15.5		%	15.0		%	15.4		%	13.7		%

Total capital	$	15,542		$	15,617		$	16,243		$	16,314		$	16,684		$	16,758		$	16,367		$	16,435		$	16,104		$	16,173
Total risk-weighted assets	100,843			98,494			100,265			107,069			98,997			107,580			99,156			102,683			98,512			110,477
Total risk-based capital ratio	15.4		%	15.9		%	16.2		%	15.2		%	16.9		%	15.6		%	16.5		%	16.0		%	16.3		%	14.6		%

Tier 1 capital	$	14,475		$	14,475		$	15,165		$	15,165		$	15,606		$	15,606		$	15,382		$	15,382		$	15,143		$	15,143
Adjusted quarterly average assets	212,361			212,361			216,940			216,940			211,396			211,396			209,328			209,328			219,580			219,580
Tier 1 leverage ratio	6.8		%	6.8		%	7.0		%	7.0		%	7.4		%	7.4		%	7.3		%	7.3		%	6.9		%	6.9		%
⁽¹⁾CET1, tier 1 capital, total capital, and tier 1 leverage ratios for each period above were calculated in conformity with the advanced approaches provisions of the Basel III final rule.
⁽²⁾ CET1, tier 1 capital, total capital, and tier 1 leverage ratios for each period above were calculated in conformity with the standardized approach provisions of the Basel III final rule.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF FULLY PHASED-IN CAPITAL RATIOS

Fully phased-in pro-forma estimates of common equity tier 1 capital include 100% of the accumulated other comprehensive income component of common shareholder’s equity, including accumulated other comprehensive income attributable to available-for-sale securities, cash flow hedges and defined benefit pension plans, as well as 100% of applicable deductions, including but not limited to, intangible assets net of deferred tax liabilities. Fully phased-in pro-forma estimates of tier 1 and total capital both reflect the transition of trust preferred capital securities from tier 1 capital to total capital. For both Basel III advanced and standardized approaches, fully phased-in pro-forma estimates of risk-weighted assets reflect the exclusion of intangible assets, offset by additions related to non-significant equity exposures and deferred tax assets related to temporary differences. All fully phased-in ratios are preliminary estimates, based on our interpretations of the Basel III final rule as of the date each such ratio was first announced publicly and as applied to our businesses and operations as of the date of such ratio.
The following tables reconcile our fully phased-in estimated pro-forma common equity tier 1 capital, tier 1 capital, total capital and tier 1 leverage ratios, calculated in conformity with the Basel III final rule, as of the dates indicated, to those same ratios calculated in conformity with the applicable regulatory requirements as of such dates. Effective January 1, 2018, the applicable final rules are in effect and the ratios are calculated based on fully phased-in CET1, Tier 1 and Total capital numbers. As such, beginning with 1Q18, reconciliations of ratios calculated in conformity with applicable regulatory requirements equal fully phased-in ratios and a reconcilation is no longer needed. Reconciliations of prior period ratios continue to be provided to allow for better comparison of trends.

As of December 31, 2017 (Dollars in millions)	Basel III Advanced Approaches			Phase-In Provisions			Basel III Advanced Approaches Fully Phased-In Pro-Forma Estimate			Basel III Standardized Approach			Phase-In Provisions			Basel III Standardized Approach Fully Phased-In Pro-Forma Estimate
Common equity tier 1 capital	$	12,204		$	(320	)	$	11,884		$	12,204		$	(320	)	$	11,884
Tier 1 capital	15,382			(302		)	15,080			15,382			(302		)	15,080
Total capital	16,367			(302		)	16,065			16,435			(302		)	16,133
Risk weighted assets	99,156			(42		)	99,114			102,683			(40		)	102,643
Adjusted quarterly average assets	209,328			(220		)	209,108			209,328			(220		)	209,108

Capital ratios:
Common equity tier 1 capital	12.3		%				12.0		%	11.9		%				11.6		%
Tier 1 capital	15.5						15.2			15.0						14.7
Total capital	16.5						16.2			16.0						15.7
Tier 1 leverage	7.3						7.2			7.3						7.2

As of September 30, 2017 (Dollars in millions)	Basel III Advanced Approaches			Phase-In Provisions			Basel III Advanced Approaches Fully Phased-In Pro-Forma Estimate			Basel III Standardized Approach			Phase-In Provisions			Basel III Standardized Approach Fully Phased-In Pro-Forma Estimate
Common equity tier 1 capital	$	12,439		$	(297	)	$	12,142		$	12,439		$	(297	)	$	12,142
Tier 1 capital	15,606			(268		)	15,338			15,606			(268		)	15,338
Total capital	16,684			(267		)	16,417			16,758			(268		)	16,490
Risk weighted assets	98,997			(57		)	98,940			107,580			(54		)	107,526
Adjusted quarterly average assets	211,396			(184		)	211,212			211,396			(184		)	211,212

Capital ratios:
Common equity tier 1 capital	12.6		%				12.3		%	11.6		%				11.3		%
Tier 1 capital	15.8						15.5			14.5						14.3
Total capital	16.9						16.6			15.6						15.3
Tier 1 leverage	7.4						7.3			7.4						7.3



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF FULLY PHASED-IN CAPITAL RATIOS (Continued)
As of June 30, 2017 (Dollars in millions)	Basel III Advanced Approaches			Phase-In Provisions			Basel III Advanced Approaches Fully Phased-In Pro-Forma Estimate			Basel III Standardized Approach			Phase-In Provisions			Basel III Standardized Approach Fully Phased-In Pro-Forma Estimate
Common equity tier 1 capital	$	12,007		$	(315	)	$	11,692		$	12,007		$	(315	)	$	11,692
Tier 1 capital	15,165			(277		)	14,888			15,165			(277		)	14,888
Total capital	16,243			(277		)	15,966			16,314			(277		)	16,037
Risk weighted assets	100,265			66			100,331			107,069			62			107,131
Adjusted quarterly average assets	216,940			(205		)	216,735			216,940			(205		)	216,735

Capital ratios:
Common equity tier 1 capital	12.0		%				11.7		%	11.2		%				10.9		%
Tier 1 capital	15.1						14.8			14.2						13.9
Total capital	16.2						15.9			15.2						15.0
Tier 1 leverage	7.0						6.9			7.0						6.9


As of March 31, 2017 (Dollars in millions)	Basel III Advanced Approaches			Phase-In Provisions			Basel III Advanced Approaches Fully Phased-In Pro-Forma Estimate			Basel III Standardized Approach			Phase-In Provisions			Basel III Standardized Approach Fully Phased-In Pro-Forma Estimate
Common equity tier 1 capital	$	11,319		$	(339	)	$	10,980		$	11,319		$	(339	)	$	10,980
Tier 1 capital	14,475			(299		)	14,176			14,475			(299		)	14,176
Total capital	15,542			(299		)	15,243			15,617			(299		)	15,318
Risk weighted assets	100,843			134			100,977			98,494			127			98,621
Adjusted quarterly average assets	212,361			(270		)	212,091			212,361			(270		)	212,091

Capital ratios:
Common equity tier 1 capital	11.2		%				10.9		%	11.5		%				11.1		%
Tier 1 capital	14.4						14.0			14.7						14.4
Total capital	15.4						15.1			15.9						15.5
Tier 1 leverage	6.8						6.7			6.8						6.7



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF SUPPLEMENTARY LEVERAGE RATIOS

In 2014, U.S. banking regulators issued final rules implementing a supplementary leverage ratio, or SLR, for certain bank holding companies, like State Street, and their insured depository institution subsidiaries, like State Street Bank. We refer to these final rules as the SLR final rule. Under the SLR final rule, which was implemented as of January 1, 2018, (i) State Street Bank must maintain an SLR of at least 6% to be well capitalized under the U.S. banking regulators’ Prompt Corrective Action framework and (ii) if State Street maintains an SLR of at least 5%, it is not subject to limitations on distribution and discretionary bonus payments under the SLR final rule. Beginning with reporting for March 31, 2015, State Street was required to include SLR disclosures with its other Basel disclosures.
Estimated pro forma fully phased-in SLR ratios for the periods below are preliminary estimates by State Street (in each case, fully phased-in as of January 1, 2018, as per the phase-in requirements of the SLR final rule), calculated based on our interpretations of the SLR final rule as of October 23, 2017 and as applied to our businesses and operations for the periods below.
The following tables reconcile our estimated pro forma fully-phased in SLR ratios in conformity with the SLR final rule, as described, to our SLR ratios calculated in conformity with applicable regulatory requirements as of the dates indicated for periods prior to January 1, 2018.

	State Street							State Street Bank
As of December 31, 2017 (Dollars in millions)	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	15,382		A	$	15,080		$	16,531		$	16,240
On-and off-balance sheet leverage exposure	243,958				243,958			240,373			240,373
Less: regulatory deductions	(6,972		)		(7,250		)	(6,583		)	(6,854		)
Total assets for SLR	236,986			B	236,708			233,790			233,519
Supplementary Leverage Ratio	6.5		%	A/B	6.4		%	7.1		%	7.0		%

	State Street							State Street Bank
As of September 30, 2017 (Dollars in millions)	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	15,606		C	$	15,338		$	16,323		$	16,067
On-and off-balance sheet leverage exposure	247,527				247,527			244,114			244,114
Less: regulatory deductions	(6,891		)		(7,161		)	(6,535		)	(6,795		)
Total assets for SLR	240,636			D	240,366			237,579			237,319
Supplementary Leverage Ratio	6.5		%	C/D	6.4		%	6.9		%	6.8		%

	State Street							State Street Bank
As of June 30, 2017 (Dollars in millions)	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	15,165		E	$	14,888		$	16,002		$	15,738
On-and off-balance sheet leverage exposure	250,543				250,543			247,156			247,156
Less: regulatory deductions	(6,633		)		(6,838		)	(6,237		)	(6,434		)
Total assets for SLR	243,910			F	243,705			240,919			240,722
Supplementary Leverage Ratio	6.2		%	E/F	6.1		%	6.6		%	6.5		%

	State Street							State Street Bank
As of March 31, 2017 (Dollars in millions)	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	14,475		G	$	14,176		$	15,492		$	15,206
On-and off-balance sheet leverage exposure	244,964				244,964			241,563			241,563
Less: regulatory deductions	(6,818		)		(7,087		)	(6,422		)	(6,683		)
Total assets for SLR	238,146			H	237,877			235,141			234,880
Supplementary Leverage Ratio	6.1		%	G/H	6.0		%	6.6		%	6.5		%

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STATE STREET CORP - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - April 20, 2018

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