STT State Street Corporation

State Street Corporation today announced 2005 fourth-quarter earnings per share from continuing operations of $0.74, or net income of $249 million and revenue of $1.4 billion. Earnings per share and net income both increased 35% versus the 2004 fourth quarter's results of $0.55 per share or net income of $184 million. Revenue is $1.3 billion in the fourth quarter of 2004. The 2004 fourth-quarter results include $12 million, or $0.02 per share, for merger and integration charges associated with the acquisition of a substantial portion of the Deutsche Bank Global Securities Servicing (GSS) business. For the fourth quarter of 2005, return on stockholders' equity from continuing operations is 15.9%, and compares to 11.9% in the fourth quarter of 2004. For the full year, net income from continuing operations in 2005 amounts to $2.82 per share or net income from continuing operations of $945 million, compared to $2.35 per share, or $798 million in 2004. The results for 2004 include $62 million, or $.12 per share, for merger and integration charges associated with the GSS acquisition. Earnings per share from continuing operations of $2.82 in 2005 are up 14% from operating earnings per share of $2.47 in 2004. Return on equity from continuing operations in 2005 is 15.3% and compares with return on equity on a reported basis of 13.3% in 2004. On an operating basis, return on equity was 14.0% in 2004. Revenue, including taxable-equivalent net interest revenue, is up 10%, from $5.0 billion in 2004 to a record level of $5.5 billion in 2005. Operating expenses in 2005 are $4.0 billion, an increase of 8% from $3.8 billion for 2004 on a reported basis and up 9% from $3.7 billion on an operating basis. Commenting on the performance, Ronald E. Logue, State Street's chairman and chief executive officer, said, "I'm pleased that we achieved the financial goals we set last year. In 2005 State Street again demonstrated its ability to grow its operating revenue--up 10% from 2004. Earnings per share from continuing operations are up 14% from operating earnings in 2004, exceeding our outlook. We also improved our return on equity from continuing operations to 15.3%. I am also pleased we met our objective to achieve positive operating leverage on an annual basis. State Street Global Advisors, our investment management arm, exhibited continued growth and is becoming a more meaningful contributor to State Street's results. Additionally, the Corporation's non-US revenue increased 17% and now represents 39% of total revenue, moving toward our goal of 50% over several years." Logue added, "During 2006 we will build on the success of 2005 which included several large new customer wins. We are managing our balance sheet more effectively within prudent risk parameters, but the interest-rate environment will continue to be challenging. We continue to target positive operating leverage, not necessarily every quarter, but certainly on an annual basis." Logue concluded, "We are setting 2006 financial goals of revenue growth of 8% to 12% and earnings per share growth of 10% to 15%. We expect return on equity to be between 14% and 17%. Our 2006 target is to achieve approximately the middle of those ranges." State Street purchased approximately 4.9 million shares of its common stock during the fourth quarter at an average price of $57.09 per share. The Corporation's remaining authorization to purchase shares is approximately 4.8 million shares. FOURTH-QUARTER OPERATING RESULTS VS. YEAR-AGO QUARTER Total revenue of $1.4 billion in the fourth quarter of 2005 is up from $1.3 billion or 11% from the fourth quarter of 2004. Servicing fees are $637 million, up $67 million or 12%, from $570 million in the year-ago quarter. The increase is attributable to new business from existing and new clients and higher equity valuations in 2005. Total assets under custody are $10.1 trillion, a record level, up 7%, compared with $9.5 trillion in the year-ago quarter. Management fees, generated by State Street Global Advisors, are $213 million, up $46 million, or 28%, compared to $167 million in the year-ago quarter. The increase in management fees reflects new business from existing and new clients and higher equity valuations in 2005. Total assets under management are at a record level, $1.44 trillion, up 6%, compared to $1.35 trillion in the previous year. Average month-end values compared to the fourth quarter of 2004, are up 5% for both the S&P 500 Index and the NASDAQ; average month-end values for the MSCI(R) EAFE Index(SM) are up 12%. The total return of the Lehman US Aggregate bond index for the fourth quarter is 0.59%. Trading services revenue, which includes foreign exchange trading revenue and brokerage services, is up 13%, from $161 million to $182 million. The increase is driven by higher volumes in foreign exchange, offset partially by lower volatility. Securities finance revenue is $73 million in the quarter, compared to $58 million in the year-ago quarter, an increase of 26%. The increase reflects improved spreads as well as continuing strong demand for securities on loan. Taxable-equivalent net interest revenue is $253 million, up 10% from $229 million in last year's fourth quarter. The increase is due to continued balance sheet repositioning and a higher level of customer deposits. Total expenses of $1,039 million in the fourth quarter of 2005, are up 6% from expenses on an operating basis of $980 million in the fourth quarter of 2004. Salaries and employee benefits expenses increased $78 million from $511 million to $589 million, driven principally by salaries attributed to the full-year effect of the costs associated with the three large investment management operations outsourcing contracts signed in the second half of 2004 and new business. Higher incentive compensation due to improved performance also contributed to the increase. Transaction processing expense increased $14 million to $118 million due to sub-custody costs. Occupancy expenses of $89 million in 2005 compare to $101 million in 2004, which included a $16 million loss on a sub-tenant agreement. Other expenses increased $9 million to $121 million, driven primarily by the cost of professional services to support compliance requirements and growth initiatives. The effective tax rate was 34% in the fourth quarters of 2005 and 2004. FOURTH-QUARTER RESULTS VS. THIRD QUARTER Fourth-quarter net income per share of $0.74 from continuing operations is down 1%, or $0.01, compared to third quarter net income per share from continuing operations of $0.75, which includes a gain of $16 million, or $0.03 per share due to the receipt of the final payment for the 2003 sale of State Street's Private Asset Management (PAM) business. Excluding this item, earnings per share from continuing operations are up 3%. Total revenue in the fourth quarter of $1.42 billion is up $28 million, or $44 million excluding the PAM gain, versus $1.39 billion in the third quarter. Total expenses in the fourth quarter of $1.04 billion are up $31 million compared to $1.01 billion in the third quarter. Results reflect strength in servicing and management fee revenue, up 3% and 13% respectively. Trading services revenue is up 3% to $182 million due to strength in brokerage. Processing fees and other revenue declined 8% to $71 million. Salaries and employee benefits expense is up 4% due to higher salaries and increased incentive compensation expense. Transaction processing expense increased 6% due to sub-custody costs. Occupancy expense was down 7% due to lower operating costs. FULL YEAR 2005 VS. 2004 Taxable-equivalent revenue increased 10% from $5.0 billion to $5.5 billion. Servicing fees are up 9%, increasing from $2.3 billion to $2.5 billion. Management fees increased 21%, from $623 million to $751 million. Trading services revenue increased 17%, from $595 million to $694 million and securities finance revenue is up 27%, from $259 million to $330 million. Processing fees and other revenue decreased 2%, from $308 million to $302 million. Taxable-equivalent net interest revenue is up 5%, from $904 million to $949 million. Expenses increased 8%, from $3.8 billion to $4.0 billion, including increases of 14% to $2.2 billion in salaries and employee benefits expense. Transaction processing expense was up 13% to $449 million and occupancy expense increased 8% to $391 million. Other expenses increased 12% to $484 million and expenses for information systems and communications expense declined 8% to $486 million. ADDITIONAL INFORMATION All per share amounts represent diluted earnings per share. INVESTOR CONFERENCE CALL State Street will webcast an investor conference call today, Wednesday, January 18, 2006, at 9:30 a.m. EST, available at www.statestreet.com/stockholder. The conference call will also be available via telephone, at +1 719/457-2617 (confirmation code 892835). Recorded replays of the conference call will be available on the web site, and by telephone at +1 402/220-4230, beginning at 2:00 PM today. This press release and additional financial information is available on State Street's website, at www.statestreet.com/stockholder, under "Financial Reports." State Street Corporation (NYSE: STT) is the world's leading specialist in providing institutional investors with investment servicing, investment management and investment research and trading services. With $10.1 trillion in assets under custody and $1.4 trillion in assets under management at December 31, 2005, State Street operates in 26 countries and more than 100 geographic markets worldwide and employs 20,965 worldwide. For more information, visit State Street's web site at www.statestreet.com or call 877/639-7788 (NEWS STT) toll-free in the United States and Canada, or +1 202/266-3340 outside those countries. This news announcement contains forward-looking statements as defined by United States securities laws, including statements about the financial outlook and business environment. Those statements are based on current expectations and involve a number of risks and uncertainties, including those related to the pace at which State Street adds new clients or at which existing clients use additional services, the value of global and regional financial markets, the pace of cross-border investment activity, changes in interest rates, the pace of worldwide economic growth and rates of inflation, the extent of volatility in currency markets, consolidations among clients and competitors, State Street's business mix, the dynamics of markets State Street serves, and State Street's success at integrating and converting acquisitions into its business. Other important factors that could cause actual results to differ materially from those indicated by any forward-looking statements are set forth in State Street's 2004 annual report and subsequent SEC filings. State Street encourages investors to read the Corporation's annual report, particularly the section on factors that may affect financial results, and its subsequent SEC filings for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this press release speak only as of the date hereof, January 18, 2006, and the Corporation will not undertake efforts to revise those forward-looking statements to reflect events after this date. -0- *T STATE STREET CORPORATION Press Release Addendum Financial Highlights December 31, 2005 Quarters Ended % Change ------------------------------------------ (Dollars in millions, December September December Q4 Q4 except per share 31, 30, 31, vs. vs. information or where 2005 2005 2004 Q3 Q4 otherwise indicated) ---------------------------------------------------------------------- Total Revenue $ 1,416 $ 1,388 $ 1,271 2 % 11 % Total Expenses 1,039 1,008 992 3 5 Net Income from Continuing Operations 249 250 184 - 35 Net Loss from Discontinued Operations - (107) - Net income 249 143 184 Diluted Earnings Per Share: From Continuing Operations $ .74 $ .75 $ .55 (1) 35 From Discontinued Operations - (.32) - Net Income .74 .43 .55 Closing Price Per Share of Common Stock 55.44 48.92 49.12 Cash Dividends Declared Per Share .19 .18 .17 Return on Equity from Continuing Operations 15.9 % 15.9 % 11.9 % Return on Equity 15.9 9.1 11.9 Assets Under Custody (AUC) (in trillions) $ 10.12 $ 9.80 $ 9.50 Assets Under Management (AUM) (in trillions) 1.44 1.41 1.35 Years Ended % Change --------------------------- December December 2005 (Dollars in millions, except 31, 31, vs. per share information) 2005 2004 2004 ------------------------------------------------------- Total Revenue $ 5,473 $ 4,951 11 % Total Expenses 4,041 3,759 8 Net Income from Continuing Operations 945 798 18 Net Loss from Discontinued Operations (107) - Net Income 838 798 Diluted Earnings Per Share: From Continuing Operations $ 2.82 $ 2.35 20 From Discontinued Operations (.32) - Net Income 2.50 2.35 Cash Dividends Declared Per Share .72 .64 13 Return on Equity from Continuing Operations 15.3 % 13.3 % Return on Equity 13.6 13.3 STATE STREET CORPORATION Press Release Addendum SELECTED FINANCIAL INFORMATION Quarters Ended Years Ended ------------------------- ------------------------- (Dollars in millions, except per December December December December share 31, 31, 31, 31, information) 2005 2004(3) %Change 2005 2004(3) %Change ---------------------------------------------------------------------- Fee Revenue: Servicing fees $ 637 $ 570 12 % $ 2,474 $ 2,263 9 % Management fees 213 167 28 751 623 21 Trading services 182 161 13 694 595 17 Securities finance 73 58 26 330 259 27 Processing fees and other 71 73 (3) 302 308 (2) --------- --------- --------- --------- Total fee revenue 1,176 1,029 14 4,551 4,048 12 Net Interest Revenue: Interest revenue 861 532 62 2,930 1,787 64 Interest expense 619 315 97 2,023 928 118 --------- --------- --------- --------- Net interest revenue (1) 242 217 12 907 859 6 Provision for loan losses - (18) - (18) --------- --------- --------- --------- Net interest revenue after provision for loan losses 242 235 3 907 877 3 (Losses) gains on sales of available-for- sale investment securities, net (2) 7 (129) (1) 26 (104) Gains on sale of the Private Asset Management business - - 16 - ------------------------ --------- --------- --------- Total revenue 1,416 1,271 11 5,473 4,951 11 Operating Expenses: Salaries and employee benefits 589 511 15 2,231 1,957 14 Information systems and communications 122 131 (7) 486 527 (8) Transaction processing services 118 104 13 449 398 13 Occupancy 89 101 (12) 391 363 8 Merger and integration costs (2) - 12 (100) - 62 (100) Restructuring costs - 21 (100) - 21 (100) Other 121 112 8 484 431 12 --------- --------- --------- --------- Total operating expenses 1,039 992 5 4,041 3,759 8 --------- --------- --------- --------- Income from continuing operations before income tax expense 377 279 35 1,432 1,192 20 Income tax expense from continuing operations 128 95 487 394 --------- --------- --------- --------- Net income from continuing operations 249 184 35 945 798 18 Loss from discontinued operations - - (165) - Income tax benefit from discontinued operations - - (58) - --------- --------- --------- --------- Net loss from discontinued operations - - (107) - --------- --------- --------- --------- Net income $ 249 $ 184 $ 838 $ 798 ========= ========= ========= ========= Earnings Per Share From Continuing Operations: Basic $ .75 $ .55 36 $ 2.86 $ 2.38 20 Diluted .74 .55 35 2.82 2.35 20 Loss Per Share From Discontinued Operations: Basic - - (.33) - Diluted - - (.32) - Earnings Per Share: Basic .75 .55 2.53 2.38 Diluted .74 .55 2.50 2.35 OTHER SELECTED FINANCIAL INFORMATION Average Shares Outstanding (in thousands): Basic 330,689 333,238 330,361 334,606 Diluted 337,061 336,964 334,636 339,605 Consolidated Statement of Income prepared in accordance with accounting principles generally accepted in the United States. (1) Net interest revenue on a fully taxable-equivalent basis was $253 million and $229 million for the three months ended December 31, 2005 and 2004, respectively, and $949 million and $904 million for the year ended December 31, 2005 and 2004, respectively. (2) Earnings for the three months and year ended December 31, 2004 included $12 million and $62 million, respectively, of pre-tax merger and integration costs ($.02 and $.12 per share, respectively) relating to the integration of the Deutsche Bank Global Securities Service Business (GSS). (3) Certain prior period amounts have been reclassified to conform to current period presentation. STATE STREET CORPORATION Press Release Addendum SELECTED FINANCIAL INFORMATION Quarters ended December 31, 2005 and September 30, 2005 Quarters Ended ----------------------------- December September (Dollars in millions, except per share 31, 30, information) 2005 2005 %Change ------------------------------------------------------------------- Fee Revenue: Servicing fees $ 637 $ 620 3 % Management fees 213 188 13 Trading services 182 176 3 Securities finance 73 74 (1) Processing fees and other 71 77 (8) --------- --------- Total fee revenue 1,176 1,135 4 Net Interest Revenue: Interest revenue 861 773 11 Interest expense 619 537 15 --------- --------- Net interest revenue (1) 242 236 3 Provision for loan losses - - --------- --------- Net interest revenue after provision for loan losses 242 236 3 (Losses) gains on sales of available- for-sale investment securities, net (2) 1 Gain on sale of the Private Asset Management business - 16 --------- --------- Total revenue 1,416 1,388 2 Operating Expenses: Salaries and employee benefits 589 566 4 Information systems and communications 122 117 4 Transaction processing services 118 111 6 Occupancy 89 96 (7) Other 121 118 3 --------- --------- Total operating expenses 1,039 1,008 3 --------- --------- Income from continuing operations before income tax expense 377 380 (1) Income tax expense from continuing operations 128 130 --------- --------- Net income from continuing operations 249 250 - Loss from discontinued operations - (165) Income tax benefit from discontinued operations - (58) --------- --------- Net loss from discontinued operations - (107) --------- --------- Net income $ 249 $ 143 ========= ========= Earnings Per Share From Continuing Operations: Basic $ .75 $ .76 (1) Diluted .74 .75 (1) Loss Per Share From Discontinued Operations: Basic - (.33) Diluted - (.32) Earnings Per Share: Basic .75 .43 Diluted .74 .43 OTHER SELECTED FINANCIAL INFORMATION Average Shares Outstanding (in thousands): Basic 330,689 329,097 Diluted 337,061 334,103 Consolidated Statement of Income prepared in accordance with accounting principles generally accepted in the United States. (1) Net interest revenue on a fully taxable-equivalent basis was $253 million and $245 million for the three months ended December 31 and September 30, 2005, respectively. STATE STREET CORPORATION Press Release Addendum OPERATING-BASIS RESULTS RECONCILIATION OF REPORTED RESULTS TO OPERATING RESULTS Quarter and Year ended December 31, 2005 ----------------------- ------------------------ (Dollars in millions, Quarter ended December Year ended December 31, except per share 31, 2005 2005 information) ---------------------------------------------------------------------- Reported Operating Reported Operating Results Other Results Results Other Results ----------------------- ------------------------ Fee Revenue: Servicing fees $ 637 $ 637 $2,474 $ 2,474 Management fees 213 213 751 751 Trading services 182 182 694 694 Securities finance 73 73 330 330 Processing fees and other 71 71 302 302 ------- -------- ------- --------- Total fee revenue 1,176 1,176 4,551 4,551 Net Interest Revenue: Interest revenue 861 $11 (1) 872 2,930 $42 (1) 2,972 Interest expense 619 - 619 2,023 - 2,023 ------- ---- -------- ------- ---- --------- Net interest revenue (1) 242 11 253 907 42 949 Provision for loan losses - - - - - - ------- ---- -------- ------- ---- --------- Net interest revenue after provision for loan losses 242 11 253 907 42 949 (Losses) gains on sales of available-for-sale investment securities, net (2) - (2) (1) - (1) Gain on sale of the Private Asset Management business - - - 16 - 16 ----------------------------- ---- -------- ------- ---- --------- Total revenue 1,416 11 1,427 5,473 42 5,515 Operating Expenses: Salaries and employee benefits 589 - 589 2,231 - 2,231 Information systems and communications 122 - 122 486 - 486 Transaction processing services 118 - 118 449 - 449 Occupancy 89 - 89 391 - 391 Other 121 - 121 484 - 484 ------- ---- -------- ------- ---- --------- Total operating expenses 1,039 - 1,039 4,041 - 4,041 ------- ---- -------- ------- ---- --------- Income from continuing operations before income taxes 377 11 388 1,432 42 1,474 Income taxes from continuing operations 128 - 128 487 - 487 Taxable-equivalent adjustment - 11 (1) 11 - 42 (1) 42 ------- -------------- ------- --------------- Net income from continuing operations $ 249 $ - $ 249 $ 945 $ - $ 945 ======= ==== ======== ======= ==== ========= Diluted earnings per share from continuing operations $ .74 $ - $ .74 $ 2.82 $ - $ 2.82 Return on equity from continuing operations 15.9 % 15.9 % 15.3 % 15.3 % Notes: Reported results agree with the Corporation's Consolidated Statement of Income. (1) Taxable-equivalent adjustment is not included in reported results. STATE STREET CORPORATION Press Release Addendum OPERATING-BASIS RESULTS RECONCILIATION OF REPORTED RESULTS TO OPERATING RESULTS Quarter and Year ended December 31, 2004 ------------------------- -------------------------- (Dollars in Quarter ended December 31, Year ended December 31, millions, except 2004 2004 per share information) ---------------------------------------------------------------------- Reported Operating Reported Operating Results Other Results Results Other Results ------------------------- -------------------------- Fee Revenue: Servicing fees $ 570 $ 570 $ 2,263 $ 2,263 Management fees 167 167 623 623 Trading services 161 161 595 595 Securities finance 58 58 259 259 Processing fees and other 73 73 308 308 -------- -------- -------- --------- Total fee revenue 1,029 1,029 4,048 4,048 Net Interest Revenue: Interest revenue 532 $ 12 (1) 544 1,787 $ 45 (1) 1,832 Interest expense 315 - 315 928 - 928 -------- ----- -------- -------- ----- --------- Net interest revenue (1) 217 12 229 859 45 904 Provision for loan losses (18) - (18) (18) - (18) -------- ----- -------- -------- ----- --------- Net interest revenue after provision for loan losses 235 12 247 877 45 922 Gains on sales of available-for-sale investment securities, net 7 - 7 26 - 26 -------------------------- ----- -------- -------- ----- --------- Total revenue 1,271 12 1,283 4,951 45 4,996 Operating Expenses: Salaries and employee benefits 511 - 511 1,957 - 1,957 Information systems and communications 131 - 131 527 - 527 Transaction processing services 104 - 104 398 - 398 Occupancy 101 - 101 363 - 363 Merger and integration costs 12 (12) - 62 (62)(2) - Restructuring costs 21 - 21 21 - 21 Other 112 - 112 431 - 431 -------- ----- -------- -------- ----- --------- Total operating expenses 992 (12) 980 3,759 (62) 3,697 -------- ----- -------- -------- ----- --------- Income from continuing operations before income taxes 279 24 303 1,192 107 1,299 Income taxes from continuing operations 95 4 99 394 21 (3) 415 Taxable-equivalent adjustment - 12 (1) 12 - 45 (1) 45 -------- --------------- -------- ---------------- Net income from continuing operations $ 184 $ 8 $ 192 $ 798 $ 41 $ 839 ======== ===== ======== ======== ===== ========= Diluted earnings per share from continuing operations $ .55 $.02 $ .57 $ 2.35 $.12 $ 2.47 Return on equity from continuing operations 11.9 % 12.4 % 13.3 % 14.0 % Notes: Reported results agree with the Corporation's Consolidated Statement of Income. (1) Taxable-equivalent adjustment is not included in reported results. (2) Merger and integration costs associated with the acquisition of the GSS business. (3) Reflects the tax benefit associated with merger and integration costs. STATE STREET CORPORATION Press Release Addendum OPERATING-BASIS RESULTS Quarters and Years ended December 31, 2005 and 2004 Quarters Ended Years Ended ----------------------- ------------------------ (Dollars in millions, except December December December December per share 31, 31, 31, 31, information) 2005 2004 % Change 2005 2004 % Change ----------------------------------- ------------------------ --------- Fee Revenue: Servicing fees $ 637 $ 570 12 % $2,474 $2,263 9 % Management fees 213 167 28 751 623 21 Trading services 182 161 13 694 595 17 Securities finance 73 58 26 330 259 27 Processing fees and other 71 73 (3) 302 308 (2) ------- ------- ------- ------- Total fee revenue 1,176 1,029 14 4,551 4,048 12 Net Interest Revenue: Interest revenue 872 544 60 2,972 1,832 62 Interest expense 619 315 97 2,023 928 118 ------- ------- ------- ------- Net interest revenue - taxable equivalent 253 229 10 949 904 5 Provision for loan losses - (18) - (18) ------- ------- ------- ------- Net interest revenue after provision for loan losses - taxable equivalent 253 247 2 949 922 3 (Losses) gains on sales of available- for-sale investment securities, net (2) 7 (129) (1) 26 Gain on sale of the Private Asset Management business - - 16 - --------------------------- ------- ------- ------- Total revenue 1,427 1,283 11 5,515 4,996 10 Operating Expenses: Salaries and employee benefits 589 511 15 2,231 1,957 14 Information systems and communications 122 131 (7) 486 527 (8) Transaction processing services 118 104 13 449 398 13 Occupancy 89 101 (12) 391 363 8 Restructuring costs - 21 (100) - 21 Other 121 112 8 484 431 12 ------- ------- ------- ------- Total operating expenses 1,039 980 6 4,041 3,697 9 ------- ------- ------- ------- Income from continuing operations before income tax expense 388 303 28 1,474 1,299 13 Income tax expense from continuing operations 128 99 487 415 Taxable-equivalent adjustment 11 12 42 45 ------- ------- ------- ------- Net income from continuing operations $ 249 $ 192 30 $ 945 $ 839 13 ======= ======= ======= ======= Diluted earnings per share from continuing operations $ .74 $ .57 30 $ 2.82 $ 2.47 14 Return on shareholders' equity 15.9 % 12.4 % 15.3 % 14.0 % STATE STREET CORPORATION Press Release Addendum CONSOLIDATED STATEMENT OF CONDITION ---------------------------------------------------------------------- (Dollars in millions, except share December 31, December 31, information) 2005 2004 ---------------------------------------------------------------------- Assets Cash and due from banks $ 2,684 $ 2,035 Interest-bearing deposits with banks 11,275 20,634 Securities purchased under resale agreements 8,679 12,878 Federal funds sold - 5,450 Trading account assets 764 745 Investment securities available for sale 54,979 36,171 Investment securities held to maturity 4,891 1,400 Loans (less allowance of $18 and $18) 6,464 4,611 Premises and equipment 1,453 1,444 Accrued income receivable 1,364 1,204 Goodwill 1,337 1,497 Other intangible assets 459 494 Other assets 3,619 5,477 ------------ ------------ Total assets $97,968 $94,040 ============ ============ Liabilities Deposits: Noninterest-bearing $ 9,402 $13,671 Interest-bearing -- U.S. 2,379 2,843 Interest-bearing -- Non-U.S. 47,865 38,615 ------------ ------------ Total deposits 59,646 55,129 Securities sold under repurchase agreements 20,895 21,881 Federal funds purchased 1,204 435 Other short-term borrowings 1,219 1,343 Accrued taxes and other expenses 2,628 2,603 Other liabilities 3,346 4,032 Long-term debt 2,655 2,458 ------------ ------------ Total liabilities 91,593 87,881 Shareholders' Equity Preferred stock, no par: authorized 3,500,000; issued none Common stock, $1 par: authorized 500,000,000 shares; issued 337,126,000 and 337,126,000 shares 337 337 Surplus 266 289 Retained earnings 6,189 5,590 Accumulated other comprehensive (loss) income (223) 92 Treasury stock (at cost 3,501,000 and 3,481,000 shares) (194) (149) --------------------------------------------------------- ------------ Total shareholders' equity 6,375 6,159 ------------ ------------ Total liabilities and shareholders' equity $97,968 $94,040 ============ ============ *T