State Street Corporation Announces Authorization to Purchase up to $1.7 Billion of Its Common Stock
March 26 2014 - 5:21PM
Business Wire
State Street Corporation (NYSE:STT) today announced that its
Board of Directors has approved a new common stock purchase program
authorizing the purchase of up to $1.7 billion of its common stock
through March 31, 2015, reinforcing the Company's priority to
return capital to its shareholders. This new common stock purchase
program authorization follows the 2014 Comprehensive Capital
Analysis and Review (CCAR) process under which the Federal Reserve
Board reviewed State Street's 2014 capital plan and did not object
to the Company's requested capital actions.
State Street may commence purchases of its common stock under
this new authorization at any time. Stock purchases may be made
using various types of transactions, including open-market
purchases or transactions off the market, and may also be made
under Rule 10b5-1 trading programs. The timing of stock purchases,
type of transaction and number of shares purchased will depend on
several factors, including market conditions and State Street's
capital position, its financial performance and investment
opportunities. The common stock purchase program does not have
specific price targets and may be suspended at any time.
Additionally, the 2014 capital plan includes a proposed dividend
rate of $0.30 per share of State Street’s common stock for the
second quarter of 2014, subject to consideration and approval by
the State Street Board of Directors at its regularly scheduled
meeting in May.
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 $27.4 trillion in assets
under custody and administration and $2.3 trillion1 in assets under
management at December 31, 2013, State Street operates globally in
more than 100 geographic markets worldwide and employs 29,430
worldwide. For more information, visit State Street's website 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.
Additional Information
State Street, like other companies covered by the provisions of
Section 165 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act, is required to conduct company-run stress tests
semi-annually and to disclose summary results of those company-run
stress tests under the severely adverse scenario. State Street's
disclosure can be found on its website, at
www.statestreet.com/stockholder under "Investor Relations".
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 purchases and dividends, and expectations for
returning capital to shareholders. Forward-looking statements are
often, but not always, identified by such forward-looking
terminology as "intend," "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 26,
2014.
Important factors that may affect future results and outcomes
include, but are not limited to:
- 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 sovereign-debt risks in the U.S., Europe
and other regions;
- increases in the volatility of, or
declines in the level of, our net interest revenue, changes in the
composition or valuation of the assets recorded in our consolidated
statement of condition (and our ability to measure the fair value
of investment securities) and the possibility that we may 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 manner and timing with which the
Federal Reserve and other U.S. and foreign regulators implement the
Dodd-Frank Act changes to the Basel III capital framework and
European legislation, such as the Alternative Investment Fund
Managers Directive and Undertakings for Collective Investment in
Transferable Securities Directives, with respect to the levels of
regulatory capital we must maintain, our credit exposure to third
parties, margin requirements applicable to derivatives, banking and
financial activities and other regulatory initiatives in the U.S.
and internationally, including regulatory developments that result
in changes to our structure or operating model, increased costs or
other changes to how we provide services;
- adverse changes in the regulatory
capital ratios that we are required or will be required to meet,
whether arising under the Dodd-Frank Act or the Basel III capital
and liquidity standards, or due to changes in regulatory positions,
practices or regulations in jurisdictions in which we engage in
banking activities, including changes in internal or external data,
formulae, models, assumptions or other advanced systems used in the
calculation of our capital ratios that cause changes in those
ratios as they are measured from period to period;
- increasing requirements to obtain the
prior approval of the Federal Reserve or our other regulators for
the use, allocation or distribution of our capital or other
specific capital actions or programs, including acquisitions,
dividends and equity purchases, without which our growth plans,
distributions to shareholders, equity purchase programs or other
capital initiatives may be restricted;
- changes in law or regulation, or the
enforcement of law or regulation, that may adversely affect our
business activities or those of our clients or our counterparties,
and the products or services that we sell, including additional or
increased taxes or assessments thereon, capital adequacy
requirements, margin requirements and changes that expose us to
risks related to the adequacy of our controls or compliance
programs;
- financial market disruptions or
economic recession, whether in the U.S., Europe, Asia or other
regions;
- our ability to promote a strong culture
of risk management, operating controls, compliance oversight and
governance that meet our expectations and those of our clients and
our regulators;
- the results of, and costs associated
with, government investigations, litigation and similar claims,
disputes, or proceedings;
- 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 and may cause volatility of our earnings;
- the potential for losses arising from
our investments in sponsored investment funds;
- the possibility that our clients will
incur substantial losses in investment pools for which we act as
agent, and the possibility of significant reductions in the
liquidity or valuation of assets underlying those pools;
- our ability to anticipate and manage
the level and timing of redemptions and withdrawals from our
collateral pools and other collective investment products;
- the credit agency ratings of our debt
and depository obligations and investor and client perceptions of
our financial strength;
- adverse publicity, whether specific to
State Street or regarding other industry participants or
industry-wide factors, or other reputational harm;
- our ability to control operational
risks, data security breach 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;
- dependencies on information technology
and our ability to control related risks, including cyber-crime and
other threats to our information technology infrastructure and
systems and their effective operation both independently and with
external systems, and complexities and costs of protecting the
security of our systems and data;
- our ability to grow revenue, control
expenses, attract and retain highly skilled people and raise the
capital necessary to achieve our business goals and comply with
regulatory requirements;
- changes or potential changes to the
competitive environment, including changes due to regulatory and
technological changes, the effects of industry consolidation and
perceptions of State Street as a suitable service provider or
counterparty;
- changes or potential changes in how and
in what amounts clients compensate us for our services, and the mix
of services provided by us that clients choose;
- our ability to complete acquisitions,
joint ventures and divestitures, including the ability to obtain
regulatory approvals, the ability to arrange financing as required
and the ability to satisfy closing conditions;
- the risks that our 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 negative
synergies 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 our relationships with our clients, our
employees or regulators;
- our ability to recognize emerging needs
of our clients and to develop products that are responsive to such
trends and profitable to us, the performance of and demand for the
products and services we offer, and the potential for new products
and services to impose additional costs on us and expose us to
increased operational risk;
- changes in accounting standards and
practices; and
- changes in 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 2013 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 26, 2014, and we do not undertake efforts to revise
those forward-looking statements to reflect events after that
date.
1 Assets under management include the assets of the SPDR® Gold
ETF (approximately $31 billion as of December 31, 2013), for which
State Street Global Markets, LLC, an affiliate of SSgA, serves as
the distribution agent.
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State Street CorporationValerie Haertel, +1
617-664-3477orMedia:Alicia Curran Sweeney, +1 617-664-3001
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