State Street Corp. Announces a $0.24 Quarterly Common Stock Dividend, a 33% Increase from the Prior Quarter’s Dividend & an...
March 14 2012 - 9:21AM
Business Wire
State Street Corporation (NYSE:STT) today announced a quarterly
dividend of $0.24 per share of common stock, payable April 16,
2012, to stockholders of record as of April 2, 2012, and
representing an increase of $0.06 per share, or 33%, from the $0.18
per share of common stock dividend paid on January 17, 2012. This
increase restores the dividend to its previous split-adjusted high
of $0.24 per share of common stock, most recently paid on January
15, 2009.
State Street also announced that its Board of Directors has
approved a new common stock purchase program authorizing the
purchase of up to $1.8 billion of common stock through March 31,
2013. This new program follows the Company’s 2011 common stock
purchase program, completed in November 2011, under which it
purchased approximately $675 million of its common stock and
reinforces the Company’s intent to prioritize a return of capital
to shareholders.
In connection with the 2012 Comprehensive Capital Analysis and
Review of bank holding companies, the Federal Reserve reviewed
State Street’s capital plan and did not object to the Company’s
requested capital actions.
State Street may commence common stock purchases under this new
authorization at any time. Stock purchases may be made in various
types of transactions, including open-market purchases or
transactions off the market, and may be made under Rule 10b5-1
trading programs. The timing of stock purchases and number of
shares purchased will depend on several factors, including market
conditions and State Street’s capital position, financial
performance and investment opportunities. The common stock purchase
program does not have specific price targets and may be suspended
at any time.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's
leading providers of financial services to institutional investors
including investment servicing, investment management and
investment research and trading. With $21.8 trillion in assets
under custody and administration and $1.9 trillion in assets under
management at December 31, 2011, State Street operates in 26
countries and more than 100 geographic markets and employs 28,670
worldwide. For more information, visit State Street’s web site at
www.statestreet.com or call +1 877/639-7788 [NEWS STT] toll-free in
the United States and Canada, or +1 678/999-4577 outside those
countries.
Forward-Looking Statements
This news release contains forward-looking statements as defined
by United States securities laws, including statements relating to
our goals and expectations regarding our capital plans, involving
common stock dividends and share repurchases, and expectations for
returning capital to shareholders. Forward-looking statements are
often, but not always, identified by such forward-looking
terminology as "plan," "expect," "look," "believe," "anticipate,"
"estimate," "seek," "may," "will," "trend," "target,” and "goal,"
or similar statements or variations of such terms. These statements
are not guarantees of future performance, are inherently uncertain,
are based on current assumptions that are difficult to predict and
involve a number of risks and uncertainties. Therefore, actual
outcomes and results may differ materially from what is expressed
in those statements, and those statements should not be relied upon
as representing our expectations or beliefs as of any date
subsequent to March 14, 2012.
Important factors that may affect future results and outcomes
include, but are not limited to:
- the manner in which the Federal Reserve
and other regulators implement the Dodd-Frank Act, Basel III,
European directives with respect to banking and financial
instruments and other regulatory initiatives in the U.S. and
internationally, including regulatory developments that result in
changes to our operating model or other changes to the provision of
our services;
- adverse changes in required regulatory
capital ratios, whether arising under the Dodd-Frank Act, Basel II
or Basel III, or due to changes in regulatory positions or
regulations in jurisdictions in which we engage in banking
activities;
- approvals required by the Federal
Reserve or other regulators for the use, allocation or distribution
of our capital or other specific capital actions or programs,
including acquisitions, dividends and equity repurchases, that may
restrict or limit our growth plans, distributions to shareholders,
equity purchase programs or other capital initiatives;
- changes in law or regulation that may
adversely affect our, our clients’ or our counterparties’ business
activities and the products or services that we sell, including
additional or increased taxes or assessments thereon, capital
adequacy requirements and changes that expose us to risks related
to compliance;
- the financial strength and continuing
viability of the counterparties with which we or our clients do
business and to which we have investment, credit or financial
exposure including, for example, the direct and indirect effects on
counterparties of the current sovereign debt risks in Europe and
other regions;
- financial market disruptions or
economic recession, whether in the U.S., Europe or other regions
internationally;
- increases in the volatility of, or
declines in the level of, our net interest revenue, changes in the
composition of the assets on our consolidated statement of
condition and the possibility that we may be required to change the
manner in which we fund those assets;
- the liquidity of the U.S. and
international securities markets, particularly the markets for
fixed-income securities and inter-bank credits, and the liquidity
requirements of our clients;
- the level and volatility of interest
rates and the performance and volatility of securities, credit,
currency and other markets in the U.S. and internationally;
- the credit quality, credit agency
ratings, and fair values of the securities in our investment
securities portfolio, a deterioration or downgrade of which could
lead to other-than-temporary impairment of the respective
securities and the recognition of an impairment loss in our
consolidated statement of income;
- our ability to attract deposits and
other low-cost, short-term funding, and our ability to deploy
deposits in a profitable manner consistent with our liquidity
requirements and risk profile;
- the maintenance of credit agency
ratings for our debt and depository obligations as well as the
level of credibility of credit agency ratings;
- delays or difficulties in the execution
of our previously announced business operations and information
technology transformation program, which could lead to changes in
our estimates of the charges, expenses or savings associated with
the planned program, resulting in increased volatility of our
earnings;
- the results of, and costs associated
with, government investigations, litigation, and similar claims,
disputes, or proceedings;
- the possibility that our clients will
incur substantial losses in investment pools where we act as agent,
and the possibility of significant reductions in the valuation of
assets;
- adverse publicity or other reputational
harm;
- dependencies on information technology,
complexities and costs of protecting the security of our systems
and difficulties with protecting our intellectual property
rights;
- our ability to grow revenue, attract
and/or retain and compensate highly skilled people, control
expenses and attract the capital necessary to achieve our business
goals and comply with regulatory requirements;
- potential changes to the competitive
environment, including changes due to regulatory and technological
changes, the effects of consolidation, and perceptions of State
Street as a suitable service provider or counterparty;
- potential changes in how clients
compensate us for our services, and the mix of services that
clients choose from us;
- the risks that acquired businesses and
joint ventures will not achieve their anticipated financial and
operational benefits or will not be integrated successfully, or
that the integration will take longer than anticipated, that
expected synergies will not be achieved or unexpected disynergies
will be experienced, that client and deposit retention goals will
not be met, that other regulatory or operational challenges will be
experienced and that disruptions from the transaction will harm
relationships with clients, employees or regulators;
- the ability to complete acquisitions,
divestitures and joint ventures, including the ability to obtain
regulatory approvals, the ability to arrange financing as required
and the ability to satisfy closing conditions;
- our ability to recognize emerging
clients’ needs and to develop products that are responsive to such
trends and profitable to the company; the performance of and demand
for the products and services we offer, including the level and
timing of redemptions and withdrawals from our collateral pools and
other collective investment products; and the potential for new
products and services to impose additional costs on us and expose
us to increased operational risk;
- our ability to measure the fair value
of the investment securities on our consolidated statement of
condition;
- our ability to control operating risks,
data security breach risks, information technology systems risks
and outsourcing risks, and our ability to protect our intellectual
property rights, the possibility of errors in the quantitative
models we use to manage our business and the possibility that our
controls will prove insufficient, fail or be circumvented;
- changes in accounting standards and
practices; and
- changes in tax legislation and in the
interpretation of existing tax laws by U.S. and non-U.S. tax
authorities that affect the amount of taxes due.
Other important factors that could cause actual results to
differ materially from those indicated by any forward-looking
statements are set forth in our 2011 Annual Report on Form 10-K and
our subsequent SEC filings. We encourage investors to read these
filings, particularly the sections on risk factors, for additional
information with respect to any forward-looking statements and
prior to making any investment decision. The forward-looking
statements contained in this news release speak only as of the date
hereof, March 14, 2012, and we do not undertake efforts to revise
those forward-looking statements to reflect events after that
date.
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