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	stt1q20earningspresentat.htm
EX-99.1 - EXHIBIT 99.1 - STATE STREET CORP	exhibit991-1q20earning.htm
8-K - 8-K - STATE STREET CORP	form8-k1q20.htm

Exhibit 99.2




STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
March 31, 2020


Table of Contents

GAAP-Basis Financial Information:
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/or Administration	8
Assets Under Management	9
Industry Flow Data by Asset Class	10

Investment Portfolio:
Investment Portfolio Holdings by Asset Class	11
Investment Portfolio Non-U.S. Investments	12
Allowance for Credit Losses	13

Non-GAAP Financial Information:
Reconciliations of Non-GAAP Financial Information	14
Reconciliation of Pre-tax Margin Excluding Notable Items	16
Reconciliation of Notable Items	17
Reconciliations of Constant Currency FX Impacts	18

Capital:
Reconciliation of Tangible Common Equity Ratio	19
Regulatory Capital	20
Reconciliations of Supplementary Leverage Ratios	21

This financial information should be read in conjunction with State Street's news release dated April 17, 2020.



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

(Dollars in millions, except per share amounts, or where otherwise noted)	2016			2017			2018			2019
Year ended December 31:
Total fee revenue	$	8,200		$	9,001		$	9,454		$	9,147
Net interest income	2,084			2,304			2,671			2,566
Other income	7			(39		)	6			43
Total revenue	10,291			11,266			12,131			11,756
Provision for credit losses	10			2			15			10
Total expenses	8,077			8,269			9,015			9,034
Income before income tax expense	2,204			2,995			3,101			2,712
Income tax expense	67			839			508			470
Net income from non-controlling interest	1			—			—			—
Net income	2,138			2,156			2,593			2,242
Net income available to common shareholders	$	1,963		$	1,972		$	2,404		$	2,009
Per common share:
Diluted earnings per common share	$	4.96		$	5.19		$	6.39		$	5.38
Average diluted common shares outstanding (in thousands)	396,090			380,213			376,476			373,666
Cash dividends declared per common share	$	1.44		$	1.60		$	1.78		$	1.98
Closing price per share of common stock (at year end)	77.72			97.61			63.07			79.10
Average balance sheet:
Investment securities	$	100,738		$	95,779		$	88,070		$	91,768
Total assets	229,727			219,450			223,385			223,334
Total deposits	170,485			163,808			161,408			158,262
Ratios and other metrics:
Return on average common equity	10.4		%	10.5		%	12.1		%	9.4		%
Pre-tax margin	21.4			26.6			25.6			23.1
Pre-tax margin, excluding notable items⁽¹⁾	26.2			28.7			28.8			25.8
Net interest margin, fully taxable-equivalent basis	1.13			1.29			1.47			1.42
Common equity tier 1 ratio⁽²⁾⁽³⁾	11.7			12.3			12.1			11.7
Tier 1 capital ratio⁽²⁾⁽³⁾	14.8			15.5			16.0			14.5
Total capital ratio⁽²⁾⁽³⁾	16.0			16.5			16.9			15.6
Tier 1 leverage ratio⁽²⁾⁽³⁾	6.5			7.3			7.2			6.9
Supplementary leverage ratio⁽²⁾⁽³⁾	5.9			6.5			6.3			6.1
Assets under custody and/or administration (in trillions)	$	28.77		$	33.12		$	31.62		$	34.36
Assets under management (in trillions)	2.47			2.78			2.51			3.12

⁽¹⁾ Notable items include acquisition and restructuring costs, gains on sales, and other notable items. Refer to Reconciliations of pre-tax margin excluding notable items for details.
⁽²⁾The capital ratios presented are calculated in conformity with the applicable regulatory guidance in effect as of each period end. Effective January 1, 2018, the applicable final rules are in effect and the ratios are calculated based on fully phased-in CET1, tier 1, total capital and supplementary leverage numbers. We did not revise previously-filed reported capital metrics and ratios.
⁽³⁾Under the applicable bank regulatory rules, we are not required to and, accordingly, did not revise previously-filed reported capital metrics and ratios following the change in accounting for LIHTC.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED FINANCIAL HIGHLIGHTS

	Quarters															% Change
(Dollars in millions, except per share amounts, or where otherwise noted)	1Q19			2Q19			3Q19			4Q19			1Q20			1Q20 vs. 1Q19			1Q20 vs. 4Q19
Income statement
Fee revenue	$	2,260		$	2,260		$	2,259		$	2,368		$	2,399		6.2	%		1.3	%
Net interest income	673			613			644			636			664			(1.3	)		4.4
Other income	(1		)	—			—			44			2			nm			nm
Total revenue	2,932			2,873			2,903			3,048			3,065			4.5			0.6
Provision for credit losses⁽¹⁾	4			1			2			3			36			nm			nm
Total expenses⁽²⁾	2,293			2,154			2,180			2,407			2,255			(1.7	)		(6.3	)
Income before income tax expense	635			718			721			638			774			21.9			21.3
Income tax expense	127			131			138			74			140			10.2			89.2
Net income	508			587			583			564			634			24.8			12.4
Net income available to common shareholders	$	452		$	537		$	528		$	492		$	580		28.3			17.9
Per common share:
Diluted earnings per common share	$	1.18		$	1.42		$	1.42		1.35			$	1.62		37.3			20.0
Average diluted common shares outstanding (in thousands)	381,703			377,577			370,595			365,851			357,993			(6.2	)		(2.1	)
Cash dividends declared per common share	$	.47		$	.47		$	.52		$	.52		$	.52		10.6			—
Closing price per share of common stock (as of quarter end)	65.81			56.06			59.19			79.10			53.27			(19.1	)		(32.7	)
Average for the quarter:
Investment securities	$	88,273		$	89,930		$	93,588		$	95,186		$	97,560		10.5			2.5
Total assets	219,560			221,514			223,273			228,886			251,181			14.4			9.7
Total deposits	155,343			156,570			157,226			163,829			180,160			16.0			10.0
Securities on loan (dollars in billions):
Average securities on loan	$	368		$	389		$	388		$	376		$	378		2.7			0.5
End-of-period securities on loan	398			396			397			380			388			(2.5	)		2.1
Ratios and other metrics:
Return on average common equity	8.7		%	10.1		%	9.7		%	9.0		%	10.9		%	220		bps	190		bps
Pre-tax margin	21.7			25.0			24.8			20.9			25.3			360			440
Pre-tax margin, excluding notable items⁽³⁾	22.5			25.4			26.4			29.1			25.6			310			(350	)
Net interest margin, fully taxable-equivalent basis	1.54			1.38			1.42			1.36			1.30			(24	)		(6	)
Common equity tier 1 ratio⁽⁴⁾	12.1			12.3			12.2			11.7			11.1			(100	)		(60	)
Tier 1 capital ratio⁽⁴⁾	15.9			15.9			15.9			14.5			13.3			(260	)		(120	)
Total capital ratio⁽⁴⁾	16.7			16.6			16.5			15.6			14.4			(230	)		(120	)
Tier 1 leverage ratio⁽⁴⁾	7.4			7.6			7.4			6.9			6.1			(130	)		(80	)
Supplementary leverage ratio⁽⁴⁾	6.6			6.7			6.6			6.1			5.4			(120	)		(70	)
Assets under custody and/or administration (in billions)	$	32,643		$	32,754		$	32,899		$	34,358		$	31,864		(2.4	)%		(7.3	)%
Assets under management (in billions)	2,805			2,918			2,953			3,116			2,689			(4.1	)		(13.7	)

⁽¹⁾ In accordance with ASU 2016-13, the provision for credit losses for 1Q20 includes the provision on funded and unfunded commitments as well as HTM securities. The provision for credit losses on unfunded commitments of ($4 million), $4 million, zero and $3 million for 1Q19, 2Q19, 3Q19 and 4Q19, respectively, is included within other expenses.
⁽²⁾ 4Q19 expenses include legal and related charges of approximately $140 million, repositioning charges of approximately $110 million, including approximately $98 million within compensation and employee benefits expense and $12 million within occupancy expense.
⁽³⁾ Notable items include acquisition and restructuring costs, gains on sales and other notable items. Refer to Reconciliations of non-GAAP Financial Information pages for details.
⁽⁴⁾The capital ratios presented are calculated in conformity with the applicable regulatory guidance in effect as of each period end. Effective January 1, 2018, the applicable final rules are in effect and the ratios are calculated based on fully phased-in CET1, tier 1, total capital and supplementary leverage numbers. We did not revise previously-filed reported capital metrics and ratios.
^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)		1Q19			2Q19		3Q19		4Q19		1Q20		1Q20 vs. 1Q19		1Q20 vs. 4Q19
Fee revenue:
Servicing fees		$	1,251		$	1,252	$	1,272	$	1,299	$	1,287	2.9	%	(0.9	)%
Management fees		420			441		445		465		449		6.9		(3.4	)
Foreign exchange trading services		280			273		284		274		459		63.9		67.5
Securities finance		118			126		116		111		92		(22.0	)	(17.1	)
Software and processing fees		191			168		142		219		112		(41.4	)	(48.9	)
Total fee revenue		2,260			2,260		2,259		2,368		2,399		6.2		1.3
Net interest income:
Interest income		1,027			1,007		1,001		906		868		(15.5	)	(4.2	)
Interest expense		354			394		357		270		204		(42.4	)	(24.4	)
Net interest income		673			613		644		636		664		(1.3	)	4.4
Other income:
Gains (losses) related to investment securities, net		(1		)	—		—		—		2		nm		—
Other income		—			—		—		44		—		—		(100.0	)
Total other income		(1		)	—		—		44		2		nm		nm
Total revenue		2,932			2,873		2,903		3,048		3,065		4.5		0.6
Provision for credit losses⁽¹⁾		4			1		2		3		36		nm		nm
Expenses:
Compensation and employee benefits		1,229			1,084		1,083		1,145		1,208		(1.7	)	5.5
Information systems and communications		362			365		376		362		385		6.4		6.4
Transaction processing services		242			245		254		242		254		5.0		5.0
Occupancy		116			115		113		126		109		(6.0	)	(13.5	)
Acquisition and restructuring costs		9			12		27		29		11		22.2		(62.1	)
Amortization of other intangible assets		60			59		59		58		58		(3.3	)	—
Other		275			274		268		445		230		(16.4	)	(48.3	)
Total expenses		2,293			2,154		2,180		2,407		2,255		(1.7	)	(6.3	)
Income before income tax expense		635			718		721		638		774		21.9		21.3
Income tax expense		127			131		138		74		140		10.2		89.2
Net income		$	508		$	587	$	583	$	564	$	634	24.8		12.4



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

	Quarters																% Change
(Dollars in millions, except per share amounts, or where otherwise noted)		1Q19			2Q19			3Q19			4Q19			1Q20			1Q20 vs. 1Q19			1Q20 vs. 4Q19
Adjustments to net income:
Dividends on preferred stock⁽²⁾⁽³⁾		$	(55	)	$	(50	)	$	(55	)	$	(72	)	$	(53	)	(3.6	)%		(26.4	)%
Earnings allocated to participating securities		(1		)	—			—			—			(1		)	—			nm
Net income available to common shareholders		$	452		$	537		$	528		$	492		$	580		28.3			17.9

Per common share:
Basic earnings		$	1.20		$	1.44		$	1.44		$	1.36		$	1.64		36.7			20.6
Diluted earnings		1.18			1.42			1.42			1.35			1.62			37.3			20.0
Average common shares outstanding (in thousands):
Basic		377,915			373,773			366,732			361,439			353,746			(6.4	)		(2.1	)
Diluted		381,703			377,577			370,595			365,851			357,993			(6.2	)		(2.1	)
Cash dividends declared per common share		$	.47		$	.47		$	.52		$	.52		$	.52		10.6			—
Closing price per share of common stock (as of quarter end)		65.81			56.06			59.19			79.10			53.27			(19.1	)		(32.7	)
Financial ratios:
Effective tax rate		20.1		%	18.1		%	19.2		%	11.6		%	18.1		%	(200	)	bps	650		bps
Return on average common equity		8.7			10.1			9.7			9.0			10.9			220			190
Return on tangible common equity⁽⁴⁾		15.0			15.8			16.3			16.3			18.7			370			240
Pre-tax margin		21.7			25.0			24.8			20.9			25.3			360			440
Pre-tax margin, excluding notable items⁽⁵⁾		22.5			25.4			26.4			29.1			25.6			310			(350	)

⁽¹⁾ In accordance with ASU 2016-13, the provision for credit losses for 1Q20 includes the provision on funded and unfunded commitments as well as HTM securities. The provision for credit losses on unfunded commitments of ($4 million), $4 million, zero and $3 million for 1Q19, 2Q19, 3Q19 and 4Q19, respectively, is included within other expenses.
⁽²⁾We redeemed all outstanding Series C noncumulative perpetual preferred stock on March 16, 2020 at a redemption price of $500 million ($100,000 per share equivalent to $25.00 per depositary share) plus accrued and unpaid dividends. The difference between the redemption value and the net carrying value of approximately $9 million resulted in an EPS impact of approximately ($.03) per share in 2020.
⁽³⁾We redeemed all outstanding Series E noncumulative perpetual preferred stock on December 15, 2019 at a redemption price of $750 million ($100,000 per share equivalent to $25.00 per depositary share) plus accrued and unpaid dividends. The difference between the redemption value and the net carrying value of approximately $22 million resulted in an EPS impact of approximately ($.06) per share in 2019.
⁽⁴⁾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.
⁽⁵⁾Notable items include acquisition and restructuring costs and other notable items. Refer to Reconciliations of non-GAAP Financial Information pages for details.
^nm Denotes not meaningful



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED STATEMENT OF CONDITION

	As of																% Change
(Dollars in millions, except per share amounts)		March 31, 2019⁽¹⁾			June 30, 2019⁽¹⁾			September 30, 2019			December 31, 2019			March 31, 2020			1Q20 vs. 1Q19		1Q20 vs. 4Q19
Assets:
Cash and due from banks		$	4,000		$	3,110		$	3,598		$	3,302		$	4,932		23.3	%	49.4	%
Interest-bearing deposits with banks		53,864			62,534			62,324			68,965			147,735			174.3		114.2
Securities purchased under resale agreements		1,522			1,732			3,041			1,487			1,037			(31.9	)	(30.3	)
Trading account assets		856			894			839			914			872			1.9		(4.6	)
Investment securities:
Investment securities available-for-sale		49,002			53,242			54,757			53,815			55,843			14.0		3.8
Investment securities held-to-maturity purchased under money market liquidity facility⁽²⁾		—			—			—			—			26,808			100.0		100.0
Investment securities held-to-maturity⁽³⁾		41,145			39,236			39,119			41,782			41,150			—		(1.5	)
Total investment securities		90,147			92,478			93,876			95,597			123,801			37.3		29.5
Loans		23,381			25,421			27,009			26,309			32,379			38.5		23.1
Allowance for loan losses⁽⁴⁾		70			72			71			74			97			38.6		31.1
Loans, net		23,311			25,349			26,938			26,235			32,282			38.5		23.0
Premises and equipment, net⁽⁵⁾		2,230			2,244			2,306			2,282			2,225			(0.2	)	(2.5	)
Accrued interest and fees receivable		3,277			3,202			3,258			3,231			3,274			(0.1	)	1.3
Goodwill		7,549			7,565			7,500			7,556			7,506			(0.6	)	(0.7	)
Other intangible assets		2,208			2,155			2,077			2,030			1,963			(11.1	)	(3.3	)
Other assets		39,368			40,277			38,849			34,011			36,900			(6.3	)	8.5
Total assets		$	228,332		$	241,540		$	244,606		$	245,610		$	362,527		58.8		47.6
Liabilities:
Deposits:
Non-interest-bearing		$	35,295		$	34,278		$	33,719		$	34,031		$	69,404		96.6		103.9
Interest-bearing -- U.S.		62,988			68,964			72,260			77,504			110,106			74.8		42.1
Interest-bearing -- Non-U.S.		64,188			67,352			64,907			70,337			77,594			20.9		10.3
Total deposits⁽⁶⁾		162,471			170,594			170,886			181,872			257,104			58.2		41.4
Securities sold under repurchase agreements		1,420			1,829			1,330			1,102			5,373			278.4		387.6
Short-term borrowings under money market liquidity facility		—			—			—			—			25,665			100.0		100.0
Other short-term borrowings		947			4,939			7,073			839			4,835			410.6		476.3
Accrued expenses and other liabilities		27,274			27,350			28,653			24,857			30,151			10.5		21.3
Long-term debt		11,182			11,374			11,455			12,509			15,538			39.0		24.2
Total liabilities		203,294			216,086			219,397			221,179			338,666			66.6		53.1
Shareholders' equity:
Preferred stock, no par, 3,500,000 shares authorized:
Series C, 5,000 shares issued and outstanding		491			491			491			491			—			(100.0	)	(100.0	)
Series D, 7,500 shares issued and outstanding		742			742			742			742			742			—		—
Series E, 7,500 shares issued and outstanding		728			728			728			—			—			(100.0	)	—
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			—		—
Series H, 5,000 shares issued and outstanding		494			494			494			494			494			—		—
Common stock, $1 par, 750,000,000 shares authorized⁽⁷⁾⁽⁸⁾		504			504			504			504			504			—		—
Surplus		10,082			10,109			10,117			10,132			10,155			0.7		0.2
Retained earnings		20,911			21,274			21,612			21,918			22,315			6.7		1.8
Accumulated other comprehensive income (loss)		(1,180		)	(874		)	(985		)	(876		)	(920		)	(22.0	)	5.0
Treasury stock, at cost⁽⁹⁾		(8,969		)	(9,249		)	(9,729		)	(10,209		)	(10,664		)	18.9		4.5
Total shareholders' equity		25,038			25,454			25,209			24,431			23,861			(4.7	)	(2.3	)
Total liabilities and equity		$	228,332		$	241,540		$	244,606		$	245,610		$	362,527		58.8		47.6

⁽¹⁾Certain previously reported amounts presented in this earnings release addendum have been reclassified to conform to current-period presentation.
⁽²⁾Fair value of Investment securities held-to-maturity purchased under money market liquidity facility		$	—		$	—		$	—		$	—		$	26,808
⁽³⁾Fair value of investment securities held-to-maturity		40,971			39,473			39,535			42,157			42,201
⁽⁴⁾Total allowance for credit losses including off-balance sheet commitments		83			88			86			91			124
⁽⁵⁾ Accumulated depreciation for premises and equipment		3,937			4,091			4,235			4,367			4,459
⁽⁶⁾ Average total deposits		155,343			156,570			157,226			163,829			180,160
⁽⁷⁾ Common stock shares issued		503,879,642			503,879,642			503,879,642			503,879,642			503,879,642
⁽⁸⁾ Total common shares outstanding		376,720,715			372,572,622			363,623,285			357,389,416			351,943,858



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
AVERAGE STATEMENT OF CONDITION - RATES EARNED AND PAID - FULLY TAXABLE-EQUIVALENT BASIS⁽¹⁾
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 21%, adjusted for applicable state income taxes, net of related federal benefit.
	Quarters																									% Change
	1Q19					2Q19					3Q19					4Q19					1Q20					1Q20 vs. 1Q19		1Q20 vs. 4Q19
(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	$	48,856	0.99		%	$	48,074	0.91		%	$	45,791	0.85		%	$	51,284	0.69		%	$	67,120	0.49		%	37.4	%	30.9	%
Securities purchased under resale agreements⁽²⁾	2,775		14.33			1,975		18.30			3,149		12.75			2,124		14.00			1,805		14.38			(35.0	)	(15.0	)
Trading account assets	866		—			892		—			880		—			897		—			915		—			5.7		2.0
Investment securities:
U.S. Treasury and federal agencies:
Direct obligations	15,427		1.79			13,960		1.83			13,614		1.83			14,017		1.83			14,102		1.79			(8.6	)	0.6
Mortgage-and asset-backed securities	39,216		3.06			41,905		2.83			44,357		2.71			44,009		2.60			43,947		2.66			12.1		(0.1	)
State and political subdivisions⁽³⁾	1,914		3.43			1,909		3.34			1,839		3.27			1,815		3.20			1,782		3.05			(6.9	)	(1.8	)
Other investments:
Asset-backed securities	9,078		2.47			9,335		2.54			9,913		2.39			10,593		2.28			10,645		1.94			17.3		0.5
Collateralized mortgage-backed securities and obligations	980		3.78			918		3.69			871		3.31			818		2.95			741		2.69			(24.4	)	(9.4	)
Investment securities held-to-maturity purchased under money market liquidity facility	—		—			—		—			—		—			—		—			2,111		1.52			100.0		100.0
Other debt investments and equity securities⁽³⁾	21,658		1.04			21,903		1.05			22,994		1.04			23,934		1.07			24,232		1.00			11.9		1.2
Total investment securities	88,273		2.30			89,930		2.23			93,588		2.16			95,186		2.08			97,560		2.03			10.5		2.5
Loans⁽⁴⁾	23,056		3.49			23,824		3.33			23,926		3.24			25,461		2.86			28,468		2.62			23.5		11.8
Other interest-earning assets	15,286		2.89			15,104		3.02			13,990		3.02			12,295		2.13			10,764		1.70			(29.6	)	(12.5	)
Total interest-earning assets	179,112		2.34			179,799		2.26			181,324		2.20			187,247		1.93			206,632		1.70			15.4		10.4
Cash and due from banks	3,078					4,011					3,114					3,358					3,856					25.3		14.8
Other assets	37,370					37,704					38,835					38,281					40,693					8.9		6.3
Total assets	$	219,560				$	221,514				$	223,273				$	228,886				$	251,181				14.4		9.7
Liabilities:
Interest-bearing deposits:
U.S.	$	64,531	0.83		%	$	66,502	0.91		%	$	67,170	0.83		%	$	71,910	0.64		%	$	80,247	0.50		%	24.4		11.6
Non-U.S.⁽⁵⁾	59,775		0.26			61,303		0.39			61,355		0.21			62,737		(0.04		)	64,340		(0.20		)	7.6		2.6
Total interest-bearing deposits⁽⁵⁾	124,306		0.56			127,805		0.66			128,525		0.53			134,647		0.32			144,587		0.19			16.3		7.4
Securities sold under repurchase agreements	1,773		2.66			1,488		2.19			1,998		1.45			1,208		1.18			1,773		0.55			—		46.8
Short-term borrowings under money market liquidity facility	—		—			—		—			—		—			—		—			2,187		1.11			100.0		100.0
Other short-term borrowings	1,157		1.34			2,041		1.22			1,788		1.68			1,110		1.17			2,960		1.32			155.8		166.7
Long-term debt	10,955		3.89			11,228		3.78			11,415		3.48			12,286		3.34			13,288		2.64			21.3		8.2
Other interest-bearing liabilities	4,642		5.31			3,979		6.47			3,691		7.62			4,106		4.85			3,434		3.55			(26.0	)	(16.4	)
Total interest-bearing liabilities	142,833		1.00			146,541		1.08			147,417		0.96			153,357		0.70			168,229		0.49			17.8		9.7
Non-interest bearing deposits	31,037					28,765					28,701					29,182					35,573					14.6		21.9
Other liabilities	20,921					21,188					21,935					21,140					23,052					10.2		9.0
Preferred shareholders' equity	3,690					3,690					3,690					3,541					2,861					(22.5	)	(19.2	)
Common shareholders' equity	21,079					21,330					21,530					21,666					21,466					1.8		(0.9	)
Total liabilities and shareholders' equity	$	219,560				$	221,514				$	223,273				$	228,886				$	251,181				14.4		9.7
Excess of rate earned over rate paid			1.34		%			1.18		%			1.24		%			1.23		%			1.21		%
Net interest margin			1.54		%			1.38		%			1.42		%			1.36		%			1.30		%
Net interest income, fully taxable-equivalent basis			$	678				$	618				$	648				$	640				$	668
Tax-equivalent adjustment			(5		)			(5		)			(4		)			(4		)			(4		)
Net interest income, GAAP-basis⁽⁵⁾			$	673				$	613				$	644				$	636				$	664

⁽¹⁾ Average rates earned and 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.
⁽²⁾Reflects the impact of balance sheet netting under enforceable netting agreements of approximately $59 billion, $75 billion, $118 billion and $94 billion in the first, second, third and fourth quarters of 2019, respectively, and approximately $124 billion in the first quarter of 2020. Excluding the impact of netting, the average interest rates would be approximately 0.64%, 0.47%, 0.33% and 0.31% in the first, second, third and fourth quarters of 2019, respectively, and approximately 0.21% in the first quarter of 2020.
⁽³⁾State and political subdivisions consists of municipal bonds and clipper tax exempt bonds.Other debt investments and equity securities consists of non-U.S. government and agency securities, corporate bonds, covered bonds and other.
(4) Average loans are presented on a gross basis. We adopted ASU 2016-13 on January 1, 2020, Allowance for Credit Losses. Prior to 2020, we recognized Allowance for loan losses. Average loans net of allowance for loan losses amount to approximately $23.0 million, $23.8 million, $23.9 million and $25.4 million in the first, second, third and fourth quarters of 2019, respectively, and net of ECL of approximately $28.4 million in the first quarter of 2020.
⁽⁵⁾ Average rates includes the impact of FX swap expense of approximately $39 million, $59 million, $37 million and $18 million in the first, second, third and fourth quarters of 2019, respectively, and approximately ($2) million in the first quarter of 2020. Average rates for total interest-bearing deposits excluding the impact of FX swap expense were approximately 0.43%, 0.47%, 0.42% and 0.27% for the first, second, third and fourth quarters of 2019, respectively, and approximately 0.19% for the first quarter of 2020.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ASSETS UNDER CUSTODY AND/OR ADMINISTRATION

	Quarters										% Change
(Dollars in billions)	1Q19		2Q19		3Q19		4Q19		1Q20		1Q20 vs. 1Q19		1Q20 vs. 4Q19
Assets Under Custody and/or Administration
By Product Classification:
Mutual funds	$	8,586	$	8,645	$	8,687	$	9,221	$	8,056	(6.2	)%	(12.6	)%
Collective funds, including ETFs	9,436		9,272		9,224		9,796		8,662		(8.2	)	(11.6	)
Pension products	6,513		6,542		6,817		6,924		6,730		3.3		(2.8	)
Insurance and other products	8,108		8,295		8,171		8,417		8,416		3.8		—
Total Assets Under Custody and/or Administration	$	32,643	$	32,754	$	32,899	$	34,358	$	31,864	(2.4	)	(7.3	)
By Financial Instrument:
Equities	$	18,924	$	18,504	$	18,243	$	19,301	$	16,267	(14.0	)	(15.7	)
Fixed-income	9,831		10,089		10,413		10,766		11,096		12.9		3.1
Short-term and other investments	3,888		4,161		4,243		4,291		4,501		15.8		4.9
Total Assets Under Custody and/or Administration	$	32,643	$	32,754	$	32,899	$	34,358	$	31,864	(2.4	)	(7.3	)
By Geographic Location⁽¹⁾:
Americas	$	23,979	$	23,989	$	23,888	$	25,018	$	22,787	(5.0	)	(8.9	)
Europe/Middle East/Africa	6,875		6,937		7,091		7,325		7,112		3.4		(2.9	)
Asia/Pacific	1,789		1,828		1,920		2,015		1,965		9.8		(2.5	)
Total Assets Under Custody and/or Administration	$	32,643	$	32,754	$	32,899	$	34,358	$	31,864	(2.4	)	(7.3	)
Assets Under Custody⁽²⁾
By Product Classification:
Mutual funds	$	7,966	$	8,012	$	8,060	$	8,447	$	7,416	(6.9	)	(12.2	)
Collective funds, including ETFs	7,445		7,614		7,668		8,216		7,191		(3.4	)	(12.5	)
Pension products	5,307		5,236		5,457		5,554		5,395		1.7		(2.9	)
Insurance and other products	3,851		3,909		3,893		3,978		3,810		(1.1	)	(4.2	)
Total Assets Under Custody	$	24,569	$	24,771	$	25,078	$	26,195	$	23,812	(3.1	)	(9.1	)
By Geographic Location⁽¹⁾:
Americas	$	18,784	$	18,911	$	19,048	$	19,838	$	17,701	(5.8	)	(10.8	)
Europe/Middle East/Africa	4,462		4,515		4,615		4,858		4,666		4.6		(4.0	)
Asia/Pacific	1,323		1,345		1,415		1,499		1,445		9.2		(3.6	)
Total Assets Under Custody	$	24,569	$	24,771	$	25,078	$	26,195	$	23,812	(3.1	)	(9.1	)

⁽¹⁾ Geographic mix is generally based on the domicile of the entity servicing the funds and is not necessarily representative of the underlying asset mix.
⁽²⁾ Assets under custody are a component of assets under custody and/or administration presented above.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ASSETS UNDER MANAGEMENT

	Quarters										% Change
(Dollars in billions)	1Q19		2Q19		3Q19		4Q19		1Q20		1Q20 vs. 1Q19		1Q20 vs. 4Q19
Assets Under Management
By Asset Class and Investment Approach:
Equity:
Active	$	85	$	86	$	84	$	88	$	68	(20.0	)%	(22.7	)%
Passive⁽¹⁾	1,694		1,757		1,747		1,903		1,493		(11.9	)	(21.5	)
Total Equity	1,779		1,843		1,831		1,991		1,561		(12.3	)	(21.6	)
Fixed-Income:
Active	88		93		92		89		89		1.1		—
Passive	341		357		367		379		369		8.2		(2.6	)
Total Fixed-Income	429		450		459		468		458		6.8		(2.1	)
Cash⁽²⁾	314		319		336		324		364		15.9		12.3
Multi-Asset-Class Solutions:
Active	22		23		23		24		21		(4.5	)	(12.5	)
Passive	125		132		134		133		120		(4.0	)	(9.8	)
Total Multi-Asset-Class Solutions	147		155		157		157		141		(4.1	)	(10.2	)
Alternative Investments⁽³⁾:
Active	21		21		22		21		20		(4.8	)	(4.8	)
Passive⁽¹⁾	115		130		148		155		145		26.1		(6.5	)
Total Alternative Investments	136		151		170		176		165		21.3		(6.3	)
Total Assets Under Management	$	2,805	$	2,918	$	2,953	$	3,116	$	2,689	(4.1	)	(13.7	)
By Geographic Location:
North America	$	1,899	$	1,965	$	1,999	$	2,115	$	1,847	(2.7	)	(12.7	)
Europe/Middle East/Africa	447		471		476		493		416		(6.9	)	(15.6	)
Asia/Pacific	459		482		478		508		426		(7.2	)	(16.1	)
Total Assets Under Management	$	2,805	$	2,918	$	2,953	$	3,116	$	2,689	(4.1	)	(13.7	)

⁽¹⁾1Q19 and 2Q19 have been revised to reflect a reclassification of $14 billion in assets from Passive equity to Passive alternative assets.
⁽²⁾ Includes both floating- and constant-net-asset-value portfolios held in commingled structures or separate accounts.
⁽³⁾ Includes real estate investment trusts, currency and commodities, including SPDR® Gold Shares and SPDR® Gold MiniSharesSM Trust, for which we are not the investment manager but act as the marketing agent.

Exchange-Traded Funds⁽¹⁾
By Asset Class:
Alternative Investments	$	45	$	48	$	56	$	56	$	59	31.1	%	5.4	%
Cash	8		9		9		9		18		125.0		100.0
Equity	535		548		553		618		474		(11.4	)	(23.3	)
Fixed-Income	73		77		80		85		78		6.8		(8.2	)
Total Exchange-Traded Funds	$	661	$	682	$	698	$	768	$	629	(4.8	)	(18.1	)

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



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INDUSTRY FLOW DATA BY ASSET CLASS

(Dollars in billions)			Quarters
(Dollars in billions)			1Q19			2Q19			3Q19			4Q19			1Q20
North America - ICI Market Data^(1)(2)(3)
	Long Term Funds⁽²⁾		$	41.8		$	(38.2	)	$	(51.6	)	$	(51.2	)	$	(347.1	)
	Money Market		54.0			137.0			224.5			168.7			765.4
	ETF		45.7			65.4			84.8			126.5			58.3
		Total ICI Flows	$	141.5		$	164.2		$	257.7		$	244.0		$	476.6

Europe - Broadridge Market Data^(1)(4)(5)
	Long Term Funds⁽⁴⁾		$	5.7		$	27.5		$	49.4		$	143.9		$	130.7
	Money Market		(9.0		)	1.6			78.9			(12.1		)	30.8
		Total Broadridge Flows	$	(3.3	)	$	29.1		$	128.3		$	131.8		$	161.5

⁽¹⁾ Industry data is provided for illustrative purposes only. It is not intended to reflect State Street’s or its clients' activity and is indicative of only selected segments of the entire industry.
⁽²⁾Source: Investment Company Institute (ICI). ICI data includes long term funds, ETFs and money market funds, as well as funds not registered under the Investment Company Act of 1940. Mutual fund data represents estimates of net new cash flow, which is new sales minus redemptions combined with net exchanges, while exchange-traded fund (ETF) data represents net issuance, which is gross issuance less gross redemptions. Data for mutual funds that invest primarily in other mutual funds and ETFs that invest primarily in other ETFs were excluded from the series. ICI classifies mutual funds and ETFs based on language in the fund prospectus. The long term fund flows reported by ICI are composed of North America Market flows mainly in Equities, Hybrids and Fixed Income Asset Classes.
⁽³⁾1Q20 represents the three month period from January 2020 through March 2020, the last date for which information is available with March 2020 estimates.
⁽⁴⁾Source: © Copyright 2020, Broadridge Financial Solutions, Inc. Funds of funds have been excluded from Broadridge data (to avoid double counting). Therefore, a market total is the sum of all the investment categories excluding the three funds of funds categories (inhouse, ex-house and hedge). Broadridge data includes funds for long term funds and money market funds. Broadridge’s long term funds data are also segmented by passive and active funds which includes ETFs. ETFs are included in Broadridge’s database on mutual funds, but this excludes exchange-traded commodity products that are not mutual funds. The long term fund flows reported by Broadridge are composed of EMEA Market flows mainly in Equities, Fixed Income, and Multi Asset Classes.
⁽⁵⁾ 1Q20 represents the rolling three month period from December 2019 through February 2020, the last date for which information is available.



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

	Ratings
(Dollars in billions, or where otherwise noted)	UST/AGY			AAA			AA			A			BBB			<BBB			NR			Fair Value		% Total		Net Unrealized Pre-tax MTM Gain/(Loss) (In millions)⁽¹⁾			Fixed Rate/ Floating Rate⁽²⁾
Available-for-sale investment securities:
Government & agency securities	24		%	18		%	35		%	12		%	9		%	—		%	3		%	$	21.4	38.3	%	$	289		100% / 0%
Asset-backed securities	—			89			11			—			—			—			—			5.9		10.6		(177		)	0% / 100%
Student loans	—			58			42			—			—			—			—			0.5		0.8		(12		)
Credit cards	—			100			—			—			—			—			—			0.1		0.2		(5		)
Auto & equipment	—			74			26			—			—			—			—			0.9		1.7		(6		)
Non-U.S. residential mortgage backed securities	—			94			6			—			—			—			—			1.7		3.0		(18		)
Collateralized loan obligation	—			100			—			—			—			—			—			2.7		4.8		(136		)
Other	—			—			100			—			—			—			—			0.1		0.2		(1		)
Mortgage-backed securities	100			—			—			—			—			—			—			15.6		28.0		530			99% / 1%
Agency MBS	100			—			—			—			—			—			—			15.6		28.0		530
Non-agency MBS	—			100			—			—			—			—			—			—		—		—
CMBS	97			3			—			—			—			—			—			2.8		5.0		(9		)	23% / 73%
Corporate bonds	—			—			10			38			51			—			—			4.4		7.9		(46		)	98% / 2%
Covered bonds	—			100			—			—			—			—			—			0.5		0.8		3			14% / 86%
Municipal bonds	—			24			71			5			—			—			—			0.8		1.5		41			100% / 0%
Clipper tax-exempt bonds	—			12			60			22			6			—			—			0.9		1.7		—			0% / 100%
Other	—			89			11			—			—			—			—			3.4		6.2		13			96% / 4%
Total available-for-sale portfolio	42		%	23		%	18		%	8		%	8		%	—		%	1		%	$	55.8	100.0	%	$	644		82% / 18%

Fair Value	$	23.5		$	13.0		$	10.0		$	4.5		$	4.2		$	0.1		$	0.5

	UST/AGY			AAA			AA			A			BBB			<BBB			NR			Amortized Cost		% Total		Net Unrealized Pre-tax MTM Gain/(Loss) (In millions)⁽¹⁾			Fixed Rate/ Floating Rate⁽²⁾
Held-to-maturity investment securities:
Government & agency securities	97		%	3		%	—		%	—		%	—		%	—		%	—		%	$	9.5	14.0	%	$	171		100% / 0%
Asset-backed securities	—			26			66			2			4			1			—			4.4		6.5		(105		)	0% / 100%
Student loans	—			26			70			—			3			1			—			4.1		6.0		(147		)
Other	—			30			21			29			9			11			—			0.3		0.5		42
Mortgage-backed securities	100			—			—			—			—			—			—			23.9		35.2		868			99% / 1%
Agency MBS	100			—			—			—			—			—			—			23.8		35.1		853
Non-agency MBS	—			—			6			13			17			50			14			0.1		0.2		15
CMBS	85			15			—			—			—			—			—			3.4		4.8		117			77% / 23%
Held-to-maturity under money market liquidity facility	—			—			1			—			—			—			99			26.8		39.5		(4		)	100% / 0%
Total held-for-maturity portfolio	53		%	3		%	5		%	—		%	—		%	—		%	39		%	$	68.0	100.0	%	$	1,047		92% / 8%

Amortized Cost	$	35.9		$	1.9		$	3.2		$	0.1		$	0.2		$	0.1		$	26.6

⁽¹⁾ At March 31, 2020, the after-tax unrealized MTM gain/(loss) includes after-tax unrealized gain on securities available-for-sale of $477 million, after-tax unrealized gain on securities held-to-maturity of $775 million and after-tax unrealized loss primarily related to securities previously transferred from available-for-sale to held-to-maturity of ($20) million.
⁽²⁾ At March 31, 2020, fixed-to-floating rate securities had a book value of approximately $271 million or .22% of the total portfolio.



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

				FV for AFS and AC for HTM
(Dollars in billions)	FV for AFS and AC for HTM		Average Rating	Gov't/Agency⁽¹⁾⁽²⁾		ABS FRMBS		ABS All Other		Corporate Bonds		Covered Bonds		Other		MMLF
Germany	$	3.2	AA	$	2.6	$	—	$	0.6	$	0.1	$	—	$	—	$	—
Canada	3.2		AAA	2.9		—		—		0.2		—		—		0.1
United Kingdom	3.2		AAA	2.1		0.5		0.2		0.3		—		—		—
France	2.4		AA	1.3		—		0.6		0.2		0.2		—		0.1
Australia	2.4		AAA	0.7		1.0		—		0.2		—		0.6		—
Japan	2.2		AA	1.4		—		—		—		—		—		0.8
Spain	1.6		BBB	1.4		0.1		0.1		—		—		—		—
Austria	1.4		AA	1.4		—		—		—		—		—		—
Netherlands	1.3		AA	0.6		0.3		—		0.4		—		—		—
Belgium	1.2		AA	1.1		—		—		—		0.2		—		—
Ireland	1.2		A	1.2		—		—		—		—		—		—
Italy	1.1		A	0.7		0.1		0.3		—		—		—		—
Finland	1.0		AA	0.9		—		—		—		—		—		—
Hong Kong	0.6		AA	0.6		—		—		—		—		—		—
Other	1.3		AA	0.5		—		—		0.2		0.1		—		0.4
Total Non-U.S. Investments⁽³⁾	$	27.3		$	19.4	$	2.0	$	1.8	$	1.6	$	0.5	$	0.6	$	1.4
U.S. Investments	96.5
Total Portfolio	$	123.8

⁽¹⁾ Sovereign debt is reflected in the government / agency column.
⁽²⁾ As of March 31, 2020, the fair value included $6.0 billion of supranational and non-U.S. agency bonds.
⁽³⁾Country of collateral used except for corporates where country of issuer is used.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ALLOWANCE FOR CREDIT LOSSES

	Quarters															% Change
(Dollars in millions)		1Q19			2Q19		3Q19			4Q19			1Q20			1Q20 vs. 1Q19		1Q20 vs. 4Q19
Allowance for credit losses:
Beginning balance⁽¹⁾		$	83		$	83	$	88		$	86		$	93		12.0	%	8.1	%
Provision for credit losses(funded commitments)		4			1		2			3			29			nm		nm
Provision for credit losses(unfunded commitments)⁽²⁾		(4		)	4		—			3			3			nm		nm
Provision for credit losses(held-to-maturity securities)		—			—		—			—			4			nm		nm
Total provision		—			5		2			6			36			nm		nm
Charge-offs		—			—		(2		)	(1		)	(5		)	nm		nm
Other⁽³⁾		—			—		(2		)	—			—			nm		nm
Ending balance⁽⁴⁾		$	83		$	88	$	86		$	91		$	124		49.4		36.3

Allowance for credit losses:
Loans		$	70		$	72	$	71		$	74		$	97		38.6		31.1
Held-to-maturity securities		—			—		—			—			4			nm		nm
Unfunded (Off-Balance Sheet) Commitments		13			16		15			17			22			69.2		29.4
All Other		—			—		—			—			1			nm		nm
Ending balance⁽⁴⁾		$	83		$	88	$	86		$	91		$	124		49.4		36.3

⁽¹⁾ We adopted ASU 2016-13 on January 1, 2020, Allowance for Credit Losses. Prior to 2020, we recognized allowance for loan losses under an incurred loss model. Upon adoption, we increased the allowance and reduced retained earnings by approximately $2.6 million. As such, the ending balance for 4Q19 will not agree to the opening balance for 1Q20.
⁽²⁾Prior to the adoption of ASU 2016-13, the provision for unfunded commitments was recorded within Other expenses in the consolidated statement of income. Upon adoption of ASU 2016-13 in 1Q20, the provision for all assets within scope is recorded within Provision for credit losses in the consolidated statement of income.
⁽³⁾ Consists primarily of FX translation.
⁽⁴⁾The allowance for credit losses on unfunded commitments is included within Other liabilities in the Consolidated Statement of Condition.
^nm Not meaningful



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 basis that excludes or adjusts one or more items from GAAP. This latter basis is a non-GAAP presentation. 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 or other notable items, such as acquisition and restructuring charges, repositioning charges, gains/losses on sales, as well as, for selected comparisons, seasonal items. For example, we sometimes present expenses on a basis we may refer to as "expenses ex-notable items", which exclude notable items and, to provide additional perspective on both prior year quarter and sequential quarter comparisons, also exclude seasonal items. 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, 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)		1Q19			2Q19			3Q19			4Q19			1Q20			1Q20 vs. 1Q19			1Q20 vs. 4Q19
Fee Revenue:
Total fee revenue, GAAP-basis		$	2,260		$	2,260		$	2,259		$	2,368		$	2,399		6.2	%		1.3	%
Add: legal and related		—			—			—			—			—
Total fee revenue, excluding notable items		$	2,260		$	2,260		$	2,259		$	2,368		$	2,399		6.2			1.3

Total Revenue:
Total revenue, GAAP-basis		$	2,932		$	2,873		$	2,903		$	3,048		$	3,065		4.5	%		0.6	%
Add: legal and related		—			—			—			—			—
Less: other income		—			—			—			(44		)	—
Total revenue, excluding notable items		$	2,932		$	2,873		$	2,903		$	3,004		$	3,065		4.5			2.0

Expenses:
Total expenses, GAAP-basis		$	2,293		$	2,154		$	2,180		$	2,407		$	2,255		(1.7	)%		(6.3	)%
Less: Notable expense items:
Acquisition and restructuring costs⁽¹⁾		(9		)	(12		)	(27		)	(29		)	(11		)
Repositioning charges		—			—			—			(110		)	—
Legal and related		(14		)	—			(18		)	(140		)	—
Total expenses, excluding notable items		$	2,270		$	2,142		$	2,135		$	2,128		$	2,244		(1.1	)		5.5

Fee Operating Leverage, GAAP-Basis:
Total fee revenue, GAAP-basis		$	2,260		$	2,260		$	2,259		$	2,368		$	2,399		6.2	%		1.3	%
Total expenses, GAAP-basis		2,293			2,154			2,180			2,407			2,255			(1.7	)		(6.3	)
Fee operating leverage, GAAP-basis																	790		bps	760		bps

Fee Operating Leverage, excluding notable items:
Total fee revenue, excluding notable items (as reconciled above)		$	2,260		$	2,260		$	2,259		$	2,368		$	2,399		6.2	%		1.3	%
Total expenses, excluding notable items (as reconciled above)		2,270			2,142			2,135			2,128			2,244			(1.1	)		5.5
Fee operating leverage, excluding notable items																	730		bps	(420	)	bps

Operating Leverage, GAAP-Basis:
Total revenue, GAAP-basis		$	2,932		$	2,873		$	2,903		$	3,048		$	3,065		4.5	%		0.6	%
Total expenses, GAAP-basis		2,293			2,154			2,180			2,407			2,255			(1.7	)		(6.3	)
Operating leverage, GAAP-basis																	620		bps	690		bps

Operating Leverage, excluding notable items:
Total revenue, excluding notable items (as reconciled above)		$	2,932		$	2,873		$	2,903		$	3,004		$	3,065		4.5	%		2.0	%
Total expenses, excluding notable items (as reconciled above)		2,270			2,142			2,135			2,128			2,244			(1.1	)		5.5
Operating leverage, excluding notable items																	560		bps	(350	)	bps



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF NON-GAAP FINANCIAL INFORMATION (Continued)

	Quarters																% Change
(Dollars in millions, except per Earnings per share, or where otherwise noted)		1Q19			2Q19			3Q19			4Q19			1Q20			1Q20 vs. 1Q19			1Q20 vs. 4Q19
Net Income Available to Common Shareholders:
Net Income Available to Common Shareholders, GAAP-basis		$	452		$	537		$	528		$	492		$	580		28.3	%		17.9	%
Less: Notable items
Acquisition and restructuring costs⁽¹⁾		9			12			27			29			11
Repositioning charges		—			—			—			110			—
Legal and related		14			—			18			140			—
Other income		—			—			—			(44		)	—
Preferred securities redemption⁽²⁾		—			—			—			22			9
Tax impact of notable items		(2		)	(3		)	(12		)	(25		)	(3		)
Net Income Available to Common Shareholders, excluding notable items		$	473		$	546		$	561		$	724		$	597		26.2			(17.5	)

Diluted Earnings per Share:
Diluted earnings per share, GAAP-basis		$	1.18		$	1.42		$	1.42		$	1.35		$	1.62		37.3	%		20.0	%
Less: Notable items
Acquisition and restructuring costs⁽¹⁾		0.02			0.03			0.06			0.06			0.02
Repositioning charges		—			—			—			0.22			—
Legal and related		0.04			—			0.03			0.38			—
Other income		—			—			—			(0.09		)	—
Preferred securities redemption⁽²⁾⁽³⁾		—			—			—			0.06			0.03
Diluted earnings per share, excluding notable items		$	1.24		$	1.45		$	1.51		$	1.98		$	1.67		34.7			(15.7	)

Pre-tax Margin:
Pre-tax margin, GAAP-basis		21.7		%	25.0		%	24.8		%	20.9		%	25.3		%	360		bps	440		bps
Less: Notable items
Acquisition and restructuring costs⁽¹⁾		0.3			0.4			1.0			1.0			0.3
Repositioning charges		—			—			—			3.6			—
Legal and related		0.5			—			0.6			4.7			—
Other income		—			—			—			(1.1		)	—
Pre-tax margin, excluding notable items		22.5		%	25.4		%	26.4		%	29.1		%	25.6		%	310			(350	)

Return on Average Common Equity:
Return on average common equity, GAAP-basis		8.7		%	10.1		%	9.7		%	9.0		%	10.9		%	220		bps	190		bps
Less: Notable items
Acquisition and restructuring costs⁽¹⁾		0.2			0.2			0.5			0.5			0.2
Repositioning charges		—			—			—			2.0			—
Legal and related		0.2			—			0.3			2.6			—
Other income		—			—			—			(0.8		)	—
Preferred securities redemption⁽²⁾⁽³⁾		—			—			—			0.4			0.2
Tax impact of notable items		—			—			(0.2		)	(0.4		)	(0.1		)
Return on average common equity, excluding notable items		9.1		%	10.3		%	10.3		%	13.3		%	11.2		%	210			(210	)

⁽¹⁾Acquisition and restructuring costs of approximately $11 million in 1Q20, consisting of acquisition costs primarily related to CRD.
⁽²⁾We redeemed all outstanding Series C noncumulative perpetual preferred stock on March 16, 2020 at a redemption price of $500 million ($100,000 per share equivalent to $25.00 per depositary share) plus accrued and unpaid dividends. The difference between the redemption value and the net carrying value of approximately $9 million resulted in an EPS impact of approximately ($.03) per share in 2020.
⁽³⁾We redeemed all outstanding Series E noncumulative perpetual preferred stock on December 15, 2019 at a redemption price of $750 million ($100,000 per share equivalent to $25.00 per depositary share) plus accrued and unpaid dividends. The difference between the redemption value and the net carrying value of approximately $22 million resulted in an EPS impact of approximately ($.06) per share in 2019.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF PRE-TAX MARGIN EXCLUDING NOTABLE ITEMS

(Dollars in millions)			2016⁽¹⁾			2017			2018⁽¹⁾			2019
Total revenue:
Total revenue, GAAP-basis			$	10,291		$	11,266		$	12,131		$	11,756
		Less: Gain on sale	(53		)	(56		)	—			—
		Add: Impact of tax legislation	—			20			—			—
		Add: Legal and related	43			—			8			—
		Less: Other income	—			—			—			(44		)
Total revenue, excluding notable items			10,281			11,230			12,139			11,712

Provision for credit losses			10			2			15			10
Total expenses:
Total expenses, GAAP-basis			8,077			8,269			9,015			9,034
	Less:
		Acquisition and restructuring costs	(209		)	(266		)	(24		)	(77		)
		Legal and related	(56		)	—			(42		)	(172		)
		Repositioning charges⁽¹⁾	11			—			(324		)	(110		)
		Acceleration of deferred cash awards	(249		)	—			—			—
Total expenses, excluding notable items			7,574			8,003			8,625			8,675
Income before income tax expense, excluding notable items			$	2,697		$	3,225		$	3,499		$	3,027

Income before income tax expense, GAAP-basis			$	2,204		$	2,995		$	3,101		$	2,712

Pre-tax margin, excluding notable items			26.2		%	28.7		%	28.8		%	25.8		%
Pre-tax margin, GAAP-basis			21.4			26.6			25.6			23.1

⁽¹⁾ Includes charges in 2016 that were previously disclosed as "severance costs associated with staffing realignment" and charges in 2018 that were previously disclosed as "Business exit: Channel Islands."



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF NOTABLE ITEMS

	Quarters																% Change
(Dollars in millions)		1Q19			2Q19			3Q19			4Q19			1Q20			1Q20 vs. 1Q19		1Q20 vs. 4Q19
Total revenue:
Total revenue, GAAP-basis		$	2,932		$	2,873		$	2,903		$	3,048		$	3,065		4.5	%	0.6	%
Add: legal and related		—			—			—			—			—
Less: other income		—			—			—			(44		)	—
Total revenue, excluding notable items		2,932			2,873			2,903			3,004			3,065			4.5		2.0

Total expenses:
Total expenses, GAAP basis		$	2,293		$	2,154		$	2,180		$	2,407		$	2,255		(1.7	)	(6.3	)
Less: Notable expense items:
Repositioning charges:
Compensation and employee benefits		—			—			—			(98		)	—			—		(100.0	)
Occupancy		—			—			—			(12		)	—			—		(100.0	)
Repositioning charges		—			—			—			(110		)	—			—		(100.0	)
Acquisition and restructuring costs		(9		)	(12		)	(27		)	(29		)	(11		)	22.2		(62.1	)
Legal and related		(14		)	—			(18		)	(140		)	—			(100.0	)	(100.0	)
Total expenses, excluding notable items		2,270			2,142			2,135			2,128			2,244			(1.1	)	5.5
CRD expenses		(41		)	(46		)	(56		)	(58		)	(58		)	41.5		—
CRD related expenses: intangible asset amortization costs		(15		)	(17		)	(17		)	(16		)	(17		)	13.3		6.3
Total expenses, excluding notable items and CRD and CRD related expenses		2,214			2,079			2,062			2,054			2,169			(2.0	)	5.6
Seasonal expenses		(137		)	—			—			—			(151		)	10.2		—
Total expenses, excluding notable items, seasonal items, CRD and CRD related expenses		2,077			2,079			2,062			2,054			2,018			(2.8	)	(1.8	)

Net Income Available to Common Shareholders, GAAP-basis		$	452		$	537		$	528		$	492		$	580		28.3		17.9
Notable items as reconciled above: pre-tax		23			12			45			235			11
Tax impact on notable items as reconciled above		(2		)	(3		)	(12		)	(25		)	(3		)
Preferred security cost		—			—			—			22			9
Net Income Available to Common Shareholders, excluding notable items		473			546			561			724			597			26.2		(17.5	)

^nm Denotes not meaningful



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF CONSTANT CURRENCY FX IMPACTS
GAAP-Basis Quarter Comparison	Reported							Currency Translation Impact						Excluding Currency Impact				% Change Constant Currency
(Dollars in millions)	1Q19			4Q19		1Q20		1Q20 vs. 1Q19			1Q20 vs. 4Q19			1Q20 vs. 1Q19		1Q20 vs. 4Q19		1Q20 vs. 1Q19		1Q20 vs. 4Q19
GAAP-Basis Results:
Fee revenue:
Servicing fees	$	1,251		$	1,299	$	1,287	$	(6	)	$	(2	)	$	1,293	$	1,289	3.4	%	(0.8	)%
Management fees	420			465		449		(3		)	(2		)	452		451		7.6		(3.0	)
Foreign exchange trading services	280			274		459		—			—			459		459		63.9		67.5
Securities finance	118			111		92		—			—			92		92		(22.0	)	(17.1	)
Software and processing fees	191			219		112		(1		)	(1		)	113		113		(40.8	)	(48.4	)
Total fee revenue	2,260			2,368		2,399		(10		)	(5		)	2,409		2,404		6.6		1.5
Net interest income	673			636		664		(5		)	(3		)	669		667		(0.6	)	4.9
Total other income	(1		)	44		2		—			—			2		2		nm		nm
Total revenue	$	2,932		$	3,048	$	3,065	$	(15	)	$	(8	)	$	3,080	$	3,073	5.0		0.8

Expenses:
Compensation and employee benefits	$	1,229		$	1,145	$	1,208	$	(12	)	$	(6	)	$	1,220	$	1,214	(0.7	)	6.0
Information systems and communications	362			362		385		(1		)	—			386		385		6.6		6.4
Transaction processing services	242			242		254		(1		)	—			255		254		5.4		5.0
Occupancy	116			126		109		(1		)	(1		)	110		110		(5.2	)	(12.7	)
Acquisition and restructuring costs	9			29		11		—			—			11		11		22.2		(62.1	)
Amortization of other intangible assets	60			58		58		—			—			58		58		(3.3	)	—
Other	275			445		230		(1		)	—			231		230		(16.0	)	(48.3	)
Total expenses	$	2,293		$	2,407	$	2,255	$	(16	)	$	(7	)	$	2,271	$	2,262	(1.0	)	(6.0	)




^nm Denotes not meaningful



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

The tangible common equity, or TCE, ratio is a 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)		1Q19			2Q19			3Q19			4Q19			1Q20
Consolidated total assets		$	228,332		$	241,540		$	244,606		$	245,610		$	362,527
Less:
Goodwill		7,549			7,565			7,500			7,556			7,506
Other intangible assets		2,208			2,155			2,077			2,030			1,963
Cash balances held at central banks in excess of required reserves		44,294			52,847			57,330			65,812			144,955
Adjusted assets		174,281			178,973			177,699			170,212			208,103
Plus related deferred tax liabilities		464			464			462			475			476
Total tangible assets	A	$	174,745		$	179,437		$	178,161		$	170,687		$	208,579
Consolidated total common shareholders' equity		$	21,348		$	21,764		$	21,519		$	21,469		$	21,390
Less:
Goodwill		7,549			7,565			7,500			7,556			7,506
Other intangible assets		2,208			2,155			2,077			2,030			1,963
Adjusted equity		11,591			12,044			11,942			11,883			11,921
Plus related deferred tax liabilities		464			464			462			475			476
Total tangible common equity	B	$	12,055		$	12,508		$	12,404		$	12,358		$	12,397
Tangible common equity ratio	B/A	6.9		%	7.0		%	7.0		%	7.2		%	5.9		%

GAAP-basis:
Net income available to common shareholders		$	452		$	537		$	528		$	492		$	580
Return on tangible common equity		15.0		%	15.8		%	16.3		%	16.3		%	18.7		%



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
REGULATORY CAPITAL

	Quarters
	1Q19						2Q19						3Q19						4Q19						1Q20
(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	12.1		%	11.5		%	12.3		%	11.5		%	12.2		%	11.3		%	11.7		%	11.7		%	11.1		%	10.7		%
Tier 1 capital	15.9			15.0			15.9			14.9			15.9			14.6			14.5			14.6			13.3			12.9
Total capital	16.7			15.9			16.6			15.5			16.5			15.3			15.6			15.7			14.4			14.1
Tier 1 leverage	7.4			7.4			7.6			7.6			7.4			7.4			6.9			6.9			6.1			6.1

Supporting Calculations:
Common equity tier 1 capital	$	11,899		$	11,899		$	12,367		$	12,367		$	12,229		$	12,229		$	12,213		$	12,213		$	12,115		$	12,115
Total risk-weighted assets	98,023			103,643			100,699			107,972			100,327			108,701			104,364			104,005			109,268			112,740
Common equity tier 1 risk-based capital ratio	12.1		%	11.5		%	12.3		%	11.5		%	12.2		%	11.3		%	11.7		%	11.7		%	11.1		%	10.7		%

Tier 1 capital	$	15,589		$	15,589		$	16,058		$	16,058		$	15,919		$	15,919		$	15,175		$	15,175		$	14,586		$	14,586
Total risk-weighted assets	98,023			103,643			100,699			107,972			100,327			108,701			104,364			104,005			109,268			112,740
Tier 1 risk-based capital ratio	15.9		%	15.0		%	15.9		%	14.9		%	15.9		%	14.6		%	14.5		%	14.6		%	13.3		%	12.9		%

Total capital	$	16,386		$	16,460		$	16,672		$	16,748		$	16,530		$	16,612		$	16,275		$	16,360		$	15,770		$	15,877
Total risk-weighted assets	98,023			103,643			100,699			107,972			100,327			108,701			104,364			104,005			109,268			112,740
Total risk-based capital ratio	16.7		%	15.9		%	16.6		%	15.5		%	16.5		%	15.3		%	15.6		%	15.7		%	14.4		%	14.1		%

Tier 1 capital	$	15,589		$	15,589		$	16,058		$	16,058		$	15,919		$	15,919		$	15,175		$	15,175		$	14,586		$	14,586
Adjusted quarterly average assets	210,099			210,099			212,127			212,127			213,997			213,997			219,624			219,624			239,861			239,861
Tier 1 leverage ratio	7.4		%	7.4		%	7.6		%	7.6		%	7.4		%	7.4		%	6.9		%	6.9		%	6.1		%	6.1		%
⁽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 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.
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.


As of March 31, 2020 (Dollars in millions)		State Street Corporation			State Street Bank
Tier 1 Capital	A	$	14,586		$	17,343
On-and off-balance sheet leverage exposure		279,651			275,814
Less: regulatory deductions		(9,275		)	(8,837		)
Total assets for SLR	B	270,376			266,977
Supplementary Leverage Ratio	A/B	5.4		%	6.5		%

As of December 31, 2019 (Dollars in millions)		State Street Corporation			State Street Bank
Tier 1 Capital	C	15,175			16,617
On-and off-balance sheet leverage exposure		257,124			253,500
Less: regulatory deductions		(9,262		)	(8,837		)
Total assets for SLR	D	247,862			244,663
Supplementary Leverage Ratio	C/D	6.1		%	6.8		%

As of September 30, 2019 (Dollars in millions)		State Street Corporation			State Street Bank
Tier 1 Capital	E	15,919			17,466
On-and off-balance sheet leverage exposure		251,304			247,529
Less: regulatory deductions		(9,276		)	(8,845		)
Total assets for SLR	F	242,028			238,684
Supplementary Leverage Ratio	E/F	6.6		%	7.3		%

As of June 30, 2019 (Dollars in millions)		State Street Corporation			State Street Bank
Tier 1 Capital	G	16,058			17,611
On-and off-balance sheet leverage exposure		248,690			245,118
Less: regulatory deductions		(9,387		)	(8,980		)
Total assets for SLR	H	239,303			236,138
Supplementary Leverage Ratio	G/H	6.7		%	7.5		%

As of March 31, 2019 (Dollars in millions)		State Street Corporation			State Street Bank
Tier 1 Capital	I	$	15,589		$	17,196
On-and off-balance sheet leverage exposure		245,449			242,506
Less: regulatory deductions		(9,461		)	(9,017		)
Total assets for SLR	J	235,988			233,489
Supplementary Leverage Ratio	I/J	6.6		%	7.4		%

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STATE STREET CORP - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - April 17, 2020

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