Current Report Filing (8-k)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________

FORM 8-K

______________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 22, 2014

______________________

State Street Corporation

(Exact name of registrant as specified in its charter)

______________________



Massachusetts	001-07511	04-2456637
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification Number)



One Lincoln Street Boston, Massachusetts		02111
(Address of principal executive office)		(Zip Code)

Registrant’s telephone number, including area code: (617) 786-3000

______________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


o	Written communications pursuant to Rule 425 under the Securities Act


o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act


o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act


o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

Item 2.02. Results of Operations and Financial Condition.

On July 22, 2014, State Street Corporation (“State Street” or the “Company”) issued a news release announcing its results of operations for the second quarter of 2014. Copies of that news release and accompanying second-quarter 2014 financial information addendum are furnished herewith as Exhibits 99.1 and 99.2, respectively, and are incorporated herein by reference.

In addition, a slide presentation providing highlights of State Street's second-quarter 2014 results of operations and information pertaining to its investment portfolio as of June 30, 2014, which will be made available in connection with the investor conference call to be held by the Company on July 22, 2014, is furnished with this Current Report on Form 8-K as Exhibit 99.3.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

State Street Corporation's news release dated July 22, 2014, announcing its second-quarter 2014 results of operations, and accompanying second-quarter 2014 financial information addendum, are furnished herewith as Exhibits 99.1 and 99.2, respectively; and a slide presentation providing highlights of State Street's second-quarter 2014 results of operations and information pertaining to its investment portfolio as of June 30, 2014, which will be made available in connection with the investor conference call referenced in the July 22, 2014 news release, is furnished herewith as Exhibit 99.3.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



		STATE STREET CORPORATION

	By:	/s/ MICHAEL W. BELL
	Name:	Michael W. Bell
	Title:	Executive Vice President and Chief Financial Officer Chief Accounting Officer
Date: July 22, 2014

EXHIBIT INDEX



Exhibit No.		Description
99.1		State Street's news release dated July 22, 2014, announcing its second-quarter 2014 results of operations
99.2		State Street's second-quarter 2014 financial information addendum
99.3		Slide presentation providing highlights of State Street's second-quarter 2014 results of operations and information pertaining to its investment portfolio as of June 30, 2014

Exhibit 99.1

One Lincoln Street

Boston, MA 02111

United States of America

News Release



Investor Contact: Valerie Haertel	Media Contact: Hannah Grove
+1 617/664-3477	+1 617/664-3377

STATE STREET REPORTS SECOND-QUARTER 2014 GAAP-BASIS EPS OF $1.38 ON REVENUE OF $2.60 BILLION

ON AN OPERATING BASIS¹, SECOND-QUARTER 2014 EPS WAS $1.39, UP 12% COMPARED TO THE SECOND QUARTER OF 2013, ON REVENUE OF $2.68 BILLION

STRENGTH IN CORE ASSET SERVICING AND ASSET MANAGEMENT REVENUE; UP 7% FROM THE SECOND QUARTER OF 2013

Boston, MA ...July 22, 2014

In announcing today's financial results, Joseph L. Hooley, State Street's chairman, president and chief executive officer, said, "We are pleased with our solid second-quarter revenue growth driven by stronger global equity markets, net new business and the seasonal benefit from securities finance activity."

"We continue to see strong demand for our products and services as evidenced by our second quarter new business wins which were $250 billion in asset servicing and $18 billion in net new assets to be managed. We also have a robust and well-diversified new business pipeline."

"Despite our solid performance, we remain cautious about the overall environment given the continued low levels of interest rates and volatility, and the ongoing pressure of regulatory compliance costs."

"We also continue to prioritize returning capital to our shareholders through dividends and purchases of our common stock. During the second quarter of 2014, we purchased approximately $410 million of our common stock and ended the second quarter with approximately $1.3 billion remaining under our March 2014 common stock purchase program authorizing the purchase of up to $1.7 billion of our common stock through March 31, 2015. We also increased our common stock dividend for the quarter to $0.30 per share."

Second-Quarter 2014 GAAP Results

•

Earnings per common share (EPS) of $1.38 increased from $0.81 in the first quarter of 2014 and from $1.24 in the second quarter of 2013. The comparison with the first quarter reflects the seasonal deferred incentive compensation expense for retirement-eligible employees and payroll taxes in the first quarter of 2014, as well as the seasonal increase in second-quarter 2014 securities finance revenue.


•	Net income available to common shareholders of $602 million increased from $356 million in the first quarter of 2014 and from $571 million in the second quarter of 2013.


•	Revenue of $2.60 billion increased from $2.49 billion in the first quarter of 2014 and from $2.56 billion in the second quarter of 2013.


•	Net interest revenue of $561 million increased from $555 million in the first quarter of 2014 and decreased from $596 million in the second quarter of 2013.


•	Expenses of $1.85 billion decreased from $2.03 billion in the first quarter of 2014 and increased from $1.80 billion in the second quarter of 2013.


•	Return on average common shareholders' equity (ROE) of 11.9% increased from 7.2% in the first quarter of 2014 and from 11.3% in the second quarter of 2013.

Second-Quarter 2014 Operating-Basis (Non-GAAP) Results¹


•	EPS of $1.39 increased from $0.99 in the first quarter of 2014 and increased from $1.24 in the second quarter of 2013. The comparison with the first quarter reflects the seasonal deferred incentive compensation expense for retirement-eligible employees and payroll taxes in the first quarter of 2014, as well as the seasonal increase in second-quarter 2014 securities finance revenue.


•	Net income available to common shareholders of $603 million increased from $433 million in the first quarter of 2014 and from $571 million in the second quarter of 2013.


•	Revenue of $2.68 billion increased from $2.56 billion in the first quarter of 2014 and from $2.58 billion in the second quarter of 2013.

•

Net interest revenue of $575 million increased from $572 million in the first quarter of 2014 and decreased from $582 million in the second quarter of 2013. Operating-basis net interest revenue excluded discount accretion on former conduit securities of $28 million, $27 million and $47 million for the second quarter of 2014, the first quarter of 2014, and the second quarter of 2013, respectively. All quarters are presented on a fully taxable-equivalent basis.


•	Expenses of $1.82 billion decreased from $1.92 billion in the first quarter of 2014 and increased from $1.75 billion in the second quarter of 2013.


•	ROE of 11.9% increased from 8.8% in the first quarter of 2014 and from 11.3% in the second quarter of 2013.

Second-Quarter 2014 Highlights


•	New business² New asset servicing mandates during the second quarter of 2014 totaled $250 billion and net new assets to be managed were $18 billion.


•	Business Operations and Information Technology Transformation program³ Remains on track to achieve $575 million to $625 million in annualized pre-tax expense savings by 2015.


•	Capital⁴ Our tier 1 common ratio as of June 30, 2014, calculated under the advanced approach in conformity with the Basel III final rule, was 12.8%. Our estimated pro forma Basel III tier 1 common ratio as of June 30, 2014, calculated under the standardized approach in conformity with the Basel III final rule, was 11.3%.


•	Return of capital to shareholders Purchased approximately $410 million of our common stock at an average price of $65.02 per share and declared a quarterly common stock dividend of $0.30 per share in the second quarter of 2014.

¹Operating basis is a non-GAAP presentation. For an explanation of operating-basis information and related reconciliations, refer to the addendum included with this news release.

² New business in assets to be serviced is reflected in our assets under custody and administration after we begin servicing the assets, and net new business in assets to be managed is reflected in our assets under management after we begin managing the assets. As such, only a portion of these new asset servicing and asset management mandates is reflected in our assets under custody and administration and assets under management, as the case may be, as of June 30, 2014. Distribution fees from the SPDR^®Gold Exchange-Traded Fund, or ETF, are recorded in brokerage and other fee revenue and not in management fee revenue.

³ Estimated pre-tax expense savings relate only to the Business Operations and Information Technology Transformation program and are based on projected improvement from our total 2010 operating-basis expenses, all else being equal. Our actual total expenses have increased since 2010, and may increase or decrease in the future, due to other factors.

⁴ Earlier this year, we announced that we had completed our Basel III qualification period. As a result, beginning with the second quarter of 2014, we are required to calculate and disclose our regulatory capital ratios under the advanced approaches framework of the Basel III final rule. Our estimated pro forma Basel III tier 1 common ratio, calculated under the standardized approach, is an estimate, calculated in conformity with the standardized approach in the Basel III final rule. Refer to the “Capital” section of this news release for important information about the Basel III final rule, our calculations of our tier 1 common ratios thereunder, factors that could influence State Street's calculations of its tier 1 common ratios and other information about our capital ratios. Unless otherwise specified, all capital ratios referenced in this news release refer to State Street Corporation and not State Street Bank and Trust Company. Refer to the addendum included with this news release for a further description of these ratios.

Non-GAAP Financial Measures

In addition to presenting State Street's financial results in conformity with U.S. generally accepted accounting principles, or GAAP, management also presents results on a non-GAAP, or operating basis, in order to highlight comparable financial trends with respect to State Street's business operations from period to period. Summary results presented on a GAAP basis, descriptions of our non-GAAP, or operating-basis, financial measures, and reconciliations of operating-basis information to GAAP-basis information are provided in the addendum included with this news release.

The table below provides a summary of selected financial information and key ratios for the indicated periods, presented on an operating, or non-GAAP, basis where noted. Amounts are presented in millions of dollars, except for per-share amounts or where otherwise noted.



Financial Highlights
(Dollars in millions)	Q2 2014			Q1 2014			% Increase (Decrease)		Q2 2013			% Increase (Decrease)
Total revenue¹	$	2,676		$	2,559		4.6	%	$	2,580		3.7	%
Total expenses¹	1,818			1,917			(5.2	)	1,753			3.7
Net income available to common shareholders¹	603			433			39.3		571			5.6
Earnings per common share¹	1.39			.99			40.4		1.24			12.1
Return on average common equity¹	11.9		%	8.8		%	310 bps		11.3		%	60 bps
Total assets as of period-end	$	282,324		$	256,663		10.0	%	$	227,300		24.2	%
Quarterly average total assets	234,664			215,569			8.9		207,694			13.0
Net interest margin¹	1.12		%	1.24		%	(12) bps		1.31		%	(19) bps
Net unrealized gains (losses) on investment securities, after-tax, as of period-end	$	456		$	124				$	(123	)

¹Presented on an operating basis, a non-GAAP presentation. Refer to the addendum included with this news release for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information.



Assets Under Custody and Administration and Assets Under Management
(Dollars in billions)	Q2 2014		Q1 2014		% Increase (Decrease)		Q2 2013		% Increase (Decrease)
Assets under custody and administration^{1, 2}	$	28,400	$	27,477	3.4	%	$	25,742	10.3	%
Assets under management²	2,480		2,381		4.2		2,146		15.6
Market Indices:
S&P 500^®daily average	1,900		1,835		3.5		1,609		18.1
MSCI EAFE^® daily average	1,942		1,894		2.5		1,707		13.8
S&P 500^® average of month-end	1,923		1,838		4.6		1,612		19.3
MSCI EAFE^® average of month-end	1,955		1,896		3.1		1,698		15.1

¹Includes assets under custody of $21,687 billion, $20,996 billion and $18,881 billion, as of June 30, 2014, March 31, 2014 and June 30, 2013, respectively.

²As of period-end.

Revenue

The following table provides the components of our operating-basis (non-GAAP) revenue¹for the periods noted:



(Dollars in millions)	Q2 2014			Q1 2014		% Increase (Decrease)		Q2 2013			% Increase (Decrease)
Servicing fees	$	1,288		$	1,238	4.0	%	$	1,201		7.2	%
Management fees	300			292		2.7		277			8.3
Trading services revenue:
Foreign-exchange trading	144			134		7.5		171			(15.8	)
Brokerage and other fees²	116			119		(2.5	)	133			(12.8	)
Total trading services revenue	260			253		2.8		304			(14.5	)
Securities finance revenue	147			85		72.9		131			12.2
Processing fees and other revenue^{1, 2, 3}	108			113		(4.4	)	92			17.4
Total fee revenue^{1, 2, 3}	2,103			1,981		6.2		2,005			4.9
Net interest revenue^{1, 4}	575			572		0.5		582			(1.2	)
Gains (losses) related to investment securities, net	(2		)	6		(133.3	)	(7		)	(71.4	)
Total Operating-Basis Revenue¹	$	2,676		$	2,559	4.6	%	$	2,580		3.7	%

²Brokerage and other fees for the second quarter of 2014 reflect the reclassification of revenue associated with currency management from processing fees and other revenue. Brokerage and other fees and processing fees and other revenue previously reported for the first quarter of 2014 and the second quarter of 2013 have been adjusted for comparative purposes.

³Processing fees and other revenue for the second quarter of 2014, first quarter of 2014 and second quarter of 2013, presented in the table, included tax-equivalent adjustments of $64 million, $57 million and $34 million, respectively, related to tax credits generated by tax-advantaged investments. GAAP-basis processing fees and other revenue for these periods was $44 million, $56 million and $58 million, respectively.

⁴Net interest revenue for the second quarter of 2014, first quarter of 2014 and second quarter of 2013, presented in the table, included tax-equivalent adjustments of $42 million, $44 million and $33 million, respectively, and excluded conduit-related discount accretion of $28 million, $27 million and $47 million, respectively. GAAP-basis net interest revenue for these periods was $561 million, $555 million and $596 million, respectively. The Company expects to record aggregate pre-tax conduit-related accretion of approximately $522 million in interest revenue from July 1, 2014 through the remaining lives of the former conduit securities. This expectation is based on numerous assumptions, including holding the securities to maturity, anticipated pre-payment speeds and credit quality.

Servicing fees of $1.29 billion in the second quarter of 2014 increased 4.0% from the first quarter of 2014, primarily due to net new business and stronger global equity markets. Compared to the second quarter of 2013, servicing fees increased 7.2%, due to stronger global equity markets, net new business and the impact of the weaker U.S. dollar.

Management fees of $300 million in the second quarter of 2014 increased 2.7% and 8.3% from the first quarter of 2014 and second quarter of 2013, respectively. The increase in both comparisons periods is primarily due to stronger global equity markets.

Foreign-exchange trading revenue of $144 million increased 7.5% from the first quarter of 2014 due to higher volumes partially offset by lower volatility. Compared to the second quarter of 2013, foreign exchange trading revenue decreased 15.8% due to lower volatility partially offset by higher volumes. Brokerage and other fees of $116 million decreased 2.5% and 12.8% from the first quarter of 2014 and second quarter of 2013, respectively. The decrease in both comparisons reflects lower revenue related to electronic trading.

Securities finance revenue of $147 million in the second quarter of 2014 increased 72.9% from the first quarter of 2014, primarily due to seasonality. Compared to the second quarter of 2013, securities finance revenue increased 12.2%, primarily due to new business in enhanced custody.

Processing fees and other revenue of $108 million in the second quarter of 2014 decreased 4.4% from the first quarter of 2014. Compared to the second quarter of 2013, processing fees and other revenue increased 17.4%, primarily due to higher revenue associated with tax-advantaged investments and a more favorable counterparty valuation adjustment. See notes 1, 2 and 3 to the table above for a description of the presentation of operating-basis processing fees and other revenue.

Net interest revenue of $575 million in the second quarter of 2014 increased 0.5% from the first quarter of 2014. Compared to the second quarter of 2013, net interest revenue decreased 1.2%, primarily due to lower yields on interest-earning assets, partially offset by lower interest expense and a higher level of interest earning assets. See notes 1 and 4 to the table above for a description of the presentation of operating-basis net interest revenue.

Net interest margin, including balances held at the Federal Reserve and other central banks, decreased to 112 basis points in the second quarter of 2014 from 124 basis points in the first quarter of 2014 and from 131 basis points in the second quarter of 2013. Refer to the addendum included with this news release for reconciliations of our net interest margin.

Expenses

The following table provides the components of our operating-basis (non-GAAP)¹ expensesfor the periods noted:



(Dollars in millions)	Q2 2014		Q1 2014		% Increase (Decrease)		Q2 2013		% Increase (Decrease)
Compensation and employee benefits^{1, 2}	$	974	$	1,085	(10.2	)%	$	917	6.2	%
Information systems and communications	244		244		—		235		3.8
Transaction processing services	193		191		1.0		186		3.8
Occupancy	115		114		0.9		114		0.9
Other^{1, 3}	292		283		3.2		301		(3.0	)
Total Operating-Basis Expenses¹	$	1,818	$	1,917	(5.2	)%	$	1,753	3.7	%

²Compensation and employee benefits expenses for the second quarter of 2014 and the first quarter of 2014, presented in the table, excluded severance costs of $4 million and $72 million, respectively, related to staffing realignment. GAAP-basis compensation and employee benefits expenses for the second quarter of 2014, first quarter of 2014 and second quarter of 2013 were $978 million, $1,157 million and $917 million, respectively.

³GAAP-basis other expenses for the second quarter of 2014, first quarter of 2014 and second quarter of 2013 were $292 million, $289 million and $316 million, respectively.

Compensation and employee benefits expenses decreased 10.2% in the second quarter of 2014 from the first quarter of 2014, primarily due to an incremental $146 million, or $0.23 per share, associated with the seasonal deferred incentive compensation expense for retirement-eligible employees and payroll taxes recorded in the first quarter of 2014. Compared to the second quarter of 2013, compensation and employee benefits expenses increased 6.2%, primarily due to new business support, higher incentive compensation, the impact of the weaker U.S. dollar, annual merit increases, and higher regulatory compliance costs, partially offset by savings associated with the Business Operations and Information Technology Transformation program. See notes 1 and 2 to the table above for a description of the presentation of operating-basis compensation and employee benefits expenses for the relevant periods.

Information systems and communications expenses were flat compared with the first quarter of 2014 and increased 3.8% compared to the second quarter of 2013. The increase compared to second quarter of 2013 is primarily related to higher infrastructure costs.

Transaction processing services expenses of $193 million in the second quarter of 2014 increased 1.0% from the first quarter of 2014. Compared to the second quarter of 2013, transaction processing services expenses increased 3.8%, primarily due to higher volumes and higher equity values in the investment servicing business.

Occupancy expenses of $115 million in the second quarter of 2014 increased approximately 1% from both the first quarter of 2014 and the second quarter of 2013. Occupancy expenses in the second quarter of 2014 included a one-time recovery of $5 million.

Other expenses increased 3.2% to $292 million in the second quarter of 2014 from $283 million in the first quarter of 2014, primarily due to higher professional services fees associated with regulatory compliance, partially offset by a $9 million credit associated with Lehman Brothers-related recoveries. Compared to the second quarter of 2013, other expenses decreased 3.0%, primarily due to a $9 million credit associated with Lehman Brothers-related recoveries, and lower legal and sales promotion expenses, partially offset by higher regulatory compliance costs. See notes 1 and 3 to the table above for a description of GAAP-basis other expenses for the relevant periods.

Income Taxes

Our second-quarter 2014 GAAP-basis effective tax rate was 16.6%, down from 20.3% in the first quarter of 2014 and down from 24.0% in the second quarter of 2013. Our second-quarter 2014 operating-basis tax rate was 27.2%, down from 31.2% in the first quarter of 2014 and down from 30.0% in the second quarter of 2013.

Capital

In July 2013, the Federal Reserve issued a final rule intended to implement the Basel III framework in the U.S., referred to as the Basel III final rule. Provisions of the Basel III final rule become effective under a transition timetable which began on January 1, 2014. On February 21, 2014, we were notified by the Federal Reserve that we completed our Basel III qualification period and would be required to begin using the advanced approaches framework provided in the Basel III final rule in the determination of our risk-based capital requirements. Pursuant to this notification, we used the advanced approaches framework to calculate our regulatory capital ratios beginning with the second quarter of 2014.

For the remainder of 2014, including the second quarter of 2014, the lower of our regulatory capital ratios calculated under the Basel III advanced approach and those ratios calculated under the transitional provisions of Basel III will apply in the assessment of our capital adequacy for regulatory purposes. Once the provisions of the Basel III final rule are fully implemented effective January 1, 2015, the lower of the Basel III regulatory capital ratios calculated by us under the Basel III advanced approach and the Basel III standardized approach will apply in the assessment of our capital adequacy for regulatory purposes.

The following table presents our regulatory capital ratios as of June 30, 2014. Refer to the addendum included with this news release for a further description of these ratios, and for a reconciliation applicable to State Street's tangible common equity, or TCE, ratio presented in the table. All capital ratios presented in the table and elsewhere in this news release refer to State Street Corporation and not State Street Bank and Trust Company.



Capital ratios	Basel III Advanced Approach June 30, 2014¹		Basel III Transitional June 30, 2014²
Total capital ratio	16.1	%	20.2	%
Tier 1 capital ratio	14.1		17.7
Tier 1 common ratio	12.8		16.0
Tier 1 leverage ratio	6.9		6.9

TCE ratio³			7.0

¹Total capital, tier 1 capital, tier 1 common and tier 1 leverage ratios as of June 30, 2014 were calculated in conformity with the advanced approaches provisions of the Basel III final rule.

²Total capital, tier 1 capital, tier 1 common and tier 1 leverage ratios as of June 30, 2014 were calculated in conformity with the transitional provisions of the Basel III final rule. Specifically, these ratios reflect total and tier 1 capital, as applicable (the numerator), calculated in conformity with the provisions of the Basel III final rule and total risk-weighted assets or, with respect to the tier 1 leverage ratio, quarterly average assets (in both cases, the denominator), calculated in conformity with the provisions of Basel I.

³The tangible common equity, or TCE, ratio is an additional capital ratio that management believes provides context useful in understanding and assessing State Street's capital adequacy. The TCE ratio is 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. The TCE ratio is a non-GAAP financial measure and should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. A reconciliation with respect to the calculation of our TCE ratio as of June 30, 2014 is provided in the addendum included with this news release.

Our tier 1 common ratio as of June 30, 2014, calculated in conformity with the advanced approaches provisions of the Basel III final rule, was 12.8%. Our estimated pro forma Basel III tier 1 common ratios, calculated in conformity with the advanced approaches provisions of the Basel III final rule, were 13.2% as of March 31, 2014 and 10.9% as of June 30, 2013. Our estimated pro forma Basel III tier 1 common ratios, calculated in conformity with the standardized approach in the Basel III final rule, were 11.3% as of June 30, 2014, 11.2% as of March 31, 2014 and 10.0% as of June 30, 2013. Our estimated pro forma tier 1 common ratios are preliminary estimates, calculated in conformity with the advanced approach or the standardized approach (as the case may be) in the Basel III final rule, based on our interpretations of the Basel III final rule as of the respective date of each estimate’s first public announcement.

The advanced approaches ratios (actual and estimated) presented in this news release reflect calculations and determinations with respect to our capital and related matters, based on State Street and external data, quantitative formulae, statistical models, historical correlations and assumptions, collectively referred to as “advanced systems,” in effect and used by us for those purposes as of the respective date of each ratio’s first public announcement. Significant components of these advanced systems involve the exercise of judgment by us and our regulators, and these advanced systems may not accurately represent or calculate the scenarios, circumstances, outputs or other results for which they are designed or intended. Due to the influence of changes in these advanced systems, whether resulting from changes in data inputs, regulation or regulatory supervision or interpretation, State Street-specific or market activities or experiences or other updates or factors, we expect that our advanced systems and our capital ratios calculated in conformity with the Basel III framework will change and may be volatile over time, and that those latter changes or volatility could be material as calculated and measured from period to period.

Refer to the addendum included with this news release for information concerning our pro forma Basel III tier 1 common ratios calculated under the advanced and standardized approaches, and for reconciliations of these estimated pro forma ratios to our tier 1 common ratio calculated under then currently applicable regulatory requirements.

Additional Information

All earnings per share amounts represent fully diluted earnings per common share. Return on average common shareholders' equity is determined by dividing annualized net income available to common equity by average common shareholders' equity for the period. Operating-basis return on average common equity utilizes annualized operating-basis net income available to common equity in the calculation. Operating leverage is defined as the rate of growth of total revenue less the rate of growth of total expenses, each as determined on an operating basis.

Investor Conference Call

State Street will webcast an investor conference call today, Tuesday, July 22, 2014, at 9:30 a.m. EDT, available at www.statestreet.com/stockholder. The conference call will also be available via telephone, at +1 877/423-4013 inside the U.S. or at +1 706/679-5594 outside of the U.S. The Conference ID is # 58546215.

Recorded replays of the conference call will be available on the website, and by telephone at +1 855/859-2056 inside the U.S. or at +1 404/537-3406 outside the U.S. beginning approximately two hours after the call's completion. The Conference ID is # 58546215.

The telephone replay will be available for approximately two weeks following the conference call. This news release, presentation materials referred to on the conference call (including those concerning our investment portfolio), and additional financial information are available on State Street's website, at www.statestreet.com/stockholder under “Investor Relations--Investor News & Events" and under the title “Events and Presentations.”

State Street Corporation (NYSE: STT) is the world's leading provider of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $28.40 trillion in assets under custody and administration and $2.48 trillion* in assets under management as of June 30, 2014, State Street operates globally in more than 100 geographic markets and employs 29,420 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.

* Assets under management include the assets of the SPDR^® Gold ETF (approximately $33 billion as of June 30, 2014), for which State Street Global Markets, LLC, an affiliate of SSgA, serves as the distribution agent.

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 business, financial and capital condition, results of operations, investment portfolio performance and strategies, the financial and market outlook, dividend and stock purchase programs, governmental and regulatory initiatives and developments, and the business environment. Forward-looking statements are often, but not always, identified by such forward-looking terminology as “expect,” “objective,” “intend,” “plan,” “forecast,” “outlook,” “believe,” “anticipate,” “estimate,” “seek,” “may,” “will,” “trend,” “target,” “strategy” 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 July 22, 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, July 22, 2014, and we do not undertake efforts to revise those forward-looking statements to reflect events after that date.



	Exhibit 99.2

STATE STREET CORPORATION
Earnings Release Addendum
June 30, 2014
Table of Contents

GAAP-Basis Financial Information	Page

Consolidated Financial Highlights	1

Consolidated Results of Operations - Quarters Ended June 30, 2014, March 31, 2014 and June 30, 2013 and Six Months Ended June 30, 3014 and 2013	3

Consolidated Statement of Condition	4

Assets Under Custody and Administration	5

Assets Under Management	6

Operating-Basis (Non-GAAP) Financial Information

Reconciliations of Operating-Basis Financial Information - Quarters Ended June 30, 2014, March 31, 2014 and June 30, 2013	7

Reconciliations of Operating-Basis Financial Information - Six Months Ended June 30, 3014 and 2013	10

Capital

Regulatory Capital - June 30, 2014	13

Reconciliations of tangible common equity and tier 1 common capital ratios - June 30, 2014, March 31, 2014 and June 30, 2013	14

Reconciliations of tier 1 common ratios (standardized and advanced approaches) - June 30, 2014, March 31, 2014 and June 30, 2013	15

This financial information should be read in conjunction with State Street's earnings news release dated July 22, 2014.



STATE STREET CORPORATION
Earnings Release Addendum
CONSOLIDATED FINANCIAL HIGHLIGHTS

	Quarters Ended									% Change
(Dollars in millions, except per share amounts or where otherwise noted)	June 30, 2014			March 31, 2014			June 30, 2013			Q2 2014 vs. Q1 2014		Q2 2014 vs. Q2 2013
Revenue:
Fee revenue	$	2,039		$	1,924		$	1,971		6	%	3	%
Net interest revenue	561			555			596			1		(6	)
Net gains from sales of available-for-sale securities	—			15			—
Net losses from other-than-temporary impairment	(2		)	(9		)	(7		)
Total revenue	2,598			2,485			2,560			5		1
Provision for loan losses	2			2			—
Total expenses	1,850			2,028			1,798			(9	)	3
Income before income tax expense	746			455			762			64		(2	)
Income tax expense	124			92			183
Net income	622			363			579			71		7
Net income available to common shareholders	602			356			571
Diluted earnings per common share	1.38			.81			1.24			70		11
Average diluted common shares outstanding (in thousands)	435,320			438,815			461,040
Cash dividends declared per common share	$	.30		$	.26		$	.26
Closing price per share of common stock (as of quarter-end)	67.26			69.55			65.21
Ratios:
Return on average common equity	11.9		%	7.2		%	11.3		%
Pre-tax operating margin	28.7			18.3			29.8
Net interest margin, fully taxable-equivalent basis	1.17			1.30			1.42
Total risk-based capital¹	16.1			21.0			19.1
Tier 1 risk-based capital¹	14.1			18.3			16.6
Tier 1 risk-based common capital^{1, 2}	12.8			16.4			14.9
Tier 1 leverage¹	6.9			7.4			6.9
Tangible common equity²	7.0			6.7			6.5
At quarter-end:
Assets under custody and administration³ (in trillions)	$	28.40		$	27.48		$	25.74
Assets under management (in trillions)	2.48			2.38			2.15

¹ Earlier this year, we announced that we had completed our Basel III qualification period. As a result, our regulatory capital ratios as of June 30, 2014 presented in the table above have been calculated under the advanced approaches framework of the Basel III final rule. Regulatory capital ratios as of March 31, 2014 and June 30, 2013 presented in the table above were calculated under different methodologies applicable as of those dates, and accordingly are not directly comparable to such ratios as of June 30, 2014. Refer to page 13 of this addendum for additional information about our regulatory capital ratios as of June 30, 2014.

² Tier 1 common ratio as of June 30, 2013 and tangible common equity ratios as of June 30, 2014, March 31, 2014 and June 30, 2013 are non-GAAP financial measures. Refer to accompanying reconciliations on page 14 for additional information.

³ Included assets under custody of $21.69 trillion, $21.00 trillion and $18.88 trillion as of June 30, 2014, March 31, 2014 and June 30, 2013, respectively.



STATE STREET CORPORATION
Earnings Release Addendum
CONSOLIDATED FINANCIAL HIGHLIGHTS (Continued)

	Six Months Ended						% Change
(Dollars in millions, except per share amounts)	June 30, 2014			June 30, 2013			2014 vs. 2013
Revenue:
Fee revenue	$	3,963		$	3,828		4	%
Net interest revenue	1,116			1,172			(5	)
Net gains from sales of investment securities	15			5
Net losses from other-than-temporary impairment	(11		)	(10		)
Total revenue	5,083			4,995			2
Provision for loan losses	4			—
Total expenses	3,878			3,624			7
Income before income tax expense	1,201			1,371			(12	)
Income tax expense	216			328
Net income	985			1,043			(6	)
Net income available to common shareholders	958			1,026			(7	)
Diluted earnings per common share	2.19			2.22			(1	)
Average diluted common shares outstanding (in thousands)	436,958			461,630
Cash dividends declared per common share	$	.56		$	.52
Return on average common equity	9.6		%	10.2		%
Pre-tax operating margin	23.6			27.4
Net interest margin, fully taxable-equivalent basis	1.23			1.40



STATE STREET CORPORATION
Earnings Release Addendum
CONSOLIDATED RESULTS OF OPERATIONS

	Quarters Ended													Six Months Ended
(Dollars in millions, except per share amounts)	June 30, 2014			March 31, 2014			June 30, 2013			Q2 2014 vs. Q1 2014		Q2 2014 vs. Q2 2013		June 30, 2014			June 30, 2013			% Change
Fee revenue:
Servicing fees	$	1,288		$	1,238		$	1,201		4	%	7	%	$	2,526		$	2,376		6	%
Management fees	300			292			277			3		8		592			540			10
Trading services:
Foreign exchange trading	144			134			171			7		(16	)	278			317			(12	)
Brokerage and other fees	116			119			133			(3	)	(13	)	235			276			(15	)
Total trading services	260			253			304			3		(14	)	513			593			(13	)
Securities finance	147			85			131			73		12		232			209			11
Processing fees and other	44			56			58			(21	)	(24	)	100			110			(9	)
Total fee revenue	2,039			1,924			1,971			6		3		3,963			3,828			4
Net interest revenue:
Interest revenue	650			655			700			(1	)	(7	)	1,305			1,387			(6	)
Interest expense	89			100			104			(11	)	(14	)	189			215			(12	)
Net interest revenue	561			555			596			1		(6	)	1,116			1,172			(5	)
Gains (losses) related to investment securities, net:
Net gains from sales of available-for-sale securities	—			15			—							15			5
Losses from other-than-temporary impairment	—			(1		)	(6		)					(1		)	(6		)
Losses reclassified (from) to other comprehensive income	(2		)	(8		)	(1		)					(10		)	(4		)
Gains (losses) related to investment securities, net	(2		)	6			(7		)					4			(5		)
Total revenue	2,598			2,485			2,560			5		1		5,083			4,995			2
Provision for loan losses	2			2			—							4			—
Expenses:
Compensation and employee benefits	978			1,157			917			(15	)	7		2,135			1,952			9
Information systems and communications	244			244			235			—		4		488			472			3
Transaction processing services	193			191			186			1		4		384			366			5
Occupancy	115			114			114			1		1		229			230			—
Acquisition and restructuring costs	28			33			30			(15	)	(7	)	61			44			39
Other	292			289			316			1		(8	)	581			560			4
Total expenses	1,850			2,028			1,798			(9	)	3		3,878			3,624			7
Income before income tax expense	746			455			762			64		(2	)	1,201			1,371			(12	)
Income tax expense	124			92			183							216			328
Net income	$	622		$	363		$	579		71		7		$	985		$	1,043		(6	)
Adjustments to net income:
Dividends on preferred stock	$	(19	)	$	(6	)	$	(6	)					$	(25	)	$	(13	)
Earnings allocated to participating securities	(1		)	(1		)	(2		)					(2		)	(4		)
Net income available to common shareholders	$	602		$	356		$	571						$	958		$	1,026
Earnings per common share:
Basic	$	1.41		$	.83		$	1.26		70		12		$	2.23		$	2.26		(1	)
Diluted	1.38			.81			1.24			70		11		2.19			2.22			(1	)
Average common shares outstanding (in thousands):
Basic	427,824			430,621			452,176							429,215			453,240
Diluted	435,320			438,815			461,040							436,958			461,630



STATE STREET CORPORATION
Earnings Release Addendum
CONSOLIDATED STATEMENT OF CONDITION

(Dollars in millions, except per share amounts)	June 30, 2014			December 31, 2013
Assets:
Cash and due from banks	$	6,247		$	3,220
Interest-bearing deposits with banks	98,386			64,257
Securities purchased under resale agreements	3,681			6,230
Trading account assets	941			843
Investment securities available for sale	98,546			99,174
Investment securities held to maturity (fair value of $18,864 and $17,560)	18,757			17,740
Loans and leases (less allowance for losses of $30 and $28)	16,767			13,458
Premises and equipment (net of accumulated depreciation of $4,620 and $4,417)	1,920			1,860
Accrued interest and fees receivable	2,221			2,123
Goodwill	6,037			6,036
Other intangible assets	2,247			2,360
Other assets	26,574			25,990
Total assets	$	282,324		$	243,291
Liabilities:
Deposits:
Noninterest-bearing	$	73,109		$	65,614
Interest-bearing -- U.S.	27,584			13,392
Interest-bearing -- Non-U.S.	118,141			103,262
Total deposits	218,834			182,268
Securities sold under repurchase agreements	9,168			7,953
Federal funds purchased	14			19
Other short-term borrowings	4,322			3,780
Accrued expenses and other liabilities	19,249			19,194
Long-term debt	9,037			9,699
Total liabilities	260,624			222,913
Shareholders' equity:
Preferred stock, no par, 3,500,000 shares authorized:
Series C, 5,000 shares issued and outstanding	491			491
Series D, 7,500 shares issued and outstanding	742			—
Common stock, $1 par, 750,000,000 shares authorized; 503,881,095 and 503,882,841 shares issued	504			504
Surplus	9,765			9,776
Retained earnings	14,114			13,395
Accumulated other comprehensive income gain (loss)	489			(95		)
Treasury stock, at cost (78,910,844 and 69,754,255 shares)	(4,405		)	(3,693		)
Total shareholders' equity	21,700			20,378
Total liabilities and shareholders' equity	$	282,324		$	243,291



STATE STREET CORPORATION
Earnings Release Addendum
ASSETS UNDER CUSTODY AND ADMINISTRATION

	As of
(In billions)	June 30, 2014		March 31, 2014		June 30, 2013
Assets Under Custody and Administration
By Product Classification:
Mutual Funds	$	7,122	$	6,908	$	6,278
Collective Funds	6,956		6,637		5,826
Pension Products	5,613		5,472		5,447
Insurance and Other Products	8,709		8,460		8,191
Total Assets Under Custody and Administration	$	28,400	$	27,477	$	25,742
By Geographic Location¹:
North America	$	21,199	$	20,540	$	19,390
Europe, Middle East & Africa	5,923		5,704		5,245
Asia Pacific	1,278		1,233		1,107
Total Assets Under Custody and Administration	$	28,400	$	27,477	$	25,742
Assets Under Custody²
By Product Classification:
Mutual Funds	$	6,812	$	6,596	$	6,008
Collective Funds	5,375		5,110		4,379
Pension Products	4,985		4,868		4,377
Insurance and Other Products	4,515		4,422		4,117
Total Assets Under Custody	$	21,687	$	20,996	$	18,881
By Geographic Location¹:
North America	$	16,743	$	16,220	$	14,685
Europe, Middle East & Africa	3,956		3,806		3,336
Asia Pacific	988		970		860
Total Assets Under Custody	$	21,687	$	20,996	$	18,881

¹Geographic mix is based on the location at which the assets are serviced.
²Assets under custody are a component of assets under custody and administration presented above.



STATE STREET CORPORATION
Earnings Release Addendum
ASSETS UNDER MANAGEMENT¹

	As of
(In billions)	June 30, 2014		March 31, 2014		June 30, 2013
Assets Under Management
By Asset Class and Investment Approach:
Equity:
Active	$	42	$	42	$	44
Passive	1,390		1,323		1,152
Total Equity	1,432		1,365		1,196
Fixed-Income:
Active	16		16		18
Passive	336		320		306
Total Fixed-Income	352		336		324
Cash²	413		419		385
Multi-Asset-Class Solutions:
Active	34		25		22
Passive	116		108		97
Total Multi-Asset-Class Solutions	150		133		119
Alternative Investments³:
Active	18		16		12
Passive	115		112		110
Total Alternative Investments	133		128		122
Total Assets Under Management	$	2,480	$	2,381	$	2,146

¹As of December 31, 2013, presentation was changed to align with reporting of core businesses. Amounts reported as of June 30, 2013 have been adjusted for comparative purposes.
²Includes both floating- and constant-net-asset-value portfolios held in commingled structures or separate accounts.
³Includes real estate investment trusts, currency and commodities, including SPDR^® Gold Fund for which State Street is not the investment manager, but acts as distribution agent.



Exchange-Traded Funds⁴
By Asset Class:
Alternative Investments	$	43	$	42	$	44
Cash	1		1		2
Equity	331		308		261
Fixed-Income	38		36		30
Total Exchange-Traded Funds	$	413	$	387	$	337

⁴Exchange-traded funds are a component of assets under management presented above.



Assets Under Management
By Geographic Location⁵:
North America	$	1,533	$	1,480	$	1,347
Europe/Middle East/Africa	589		562		498
Asia/Pacific	358		339		301
Total Assets Under Management	$	2,480	$	2,381	$	2,146

⁵Geographic mix is based on client location or fund management location.



STATE STREET CORPORATION
Earnings Release Addendum
RECONCILIATIONS OF OPERATING-BASIS (NON-GAAP) FINANCIAL INFORMATION
In addition to presenting State Street’s financial results in conformity with U.S. generally accepted accounting principles, referred to as GAAP, management also presents results on a non-GAAP, or "operating" basis, as it believes that this presentation supports meaningful comparisons from period to period and the analysis of comparable financial trends with respect to State Street’s normal ongoing business operations.
Management believes that operating-basis financial information, which reports revenue from non-taxable sources, such as interest revenue from tax-exempt investment securities and processing fees and other revenue associated with tax-advantaged investments, on a fully taxable-equivalent basis and excludes the impact of revenue and expenses outside of State Street's normal course of business, facilitates an investor's understanding and analysis of State Street's underlying financial performance and trends in addition to financial information prepared and reported in conformity with GAAP. 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.
The accompanying earnings release presents financial information prepared on a GAAP as well as on an operating basis; accordingly, this earnings release addendum provides reconciliations of operating-basis financial measures. The following tables reconcile operating-basis financial information presented in the accompanying earnings release to financial information prepared and reported in conformity with GAAP.
		Quarters ended									% Change
(Dollars in millions, except per share amounts)		June 30, 2014			March 31, 2014			June 30, 2013			Q2 2014 vs. Q1 2014			Q2 2014 vs. Q2 2013
Total Revenue:
Total revenue, GAAP basis		$	2,598		$	2,485		$	2,560		4.5	%		1.5	%
	Adjustment to processing fees and other revenue (see below)	64			57			34
	Adjustment to net interest revenue (see below)	42			44			33
	Adjustment to net interest revenue (see below)	(28		)	(27		)	(47		)
Total revenue, operating basis^{1, 2}		$	2,676		$	2,559		$	2,580		4.57			3.72

Fee Revenue:
Total fee revenue, GAAP basis		$	2,039		$	1,924		$	1,971		6			3
	Tax-equivalent adjustment associated with tax-advantaged investments	64			57			34
Total fee revenue, operating basis		$	2,103		$	1,981		$	2,005		6			5

Processing Fees and Other Revenue:
Total processing fees and other revenue, GAAP basis		$	44		$	56		$	58		(21	)		(24	)
	Tax-equivalent adjustment associated with tax-advantaged investments	64			57			34
Total processing fees and other revenue, operating basis		$	108		$	113		$	92		(4	)		17

Net Interest Revenue:
Net interest revenue, GAAP basis		$	561		$	555		$	596		1			(6	)
	Tax-equivalent adjustment associated with tax-exempt investment securities	42			44			33
	Discount accretion associated with former conduit securities	(28		)	(27		)	(47		)
Net interest revenue, operating basis		$	575		$	572		$	582		1			(1	)
Net Interest Margin:
Net interest margin, fully taxable-equivalent basis³		1.17		%	1.30		%	1.42		%	(13	)	bps	(25	)	bps
	Effect of discount accretion	(.05		)	(.06		)	(.11		)
Net interest margin, operating basis		1.12		%	1.24		%	1.31		%	(12	)		(19	)

Expenses:
Total expenses, GAAP basis		$	1,850		$	2,028		$	1,798		(8.8	)%		2.9	%
	Severance costs associated with staffing realignment	(4		)	(72		)	—
	Provisions for litigation exposure and other costs, net	—			(6		)	(15		)
	Acquisition costs	(15		)	(21		)	(19		)
	Restructuring charges, net	(13		)	(12		)	(11		)
Total expenses, operating basis^{1, 2}		$	1,818		$	1,917		$	1,753		(5.16	)		3.71

¹ For the quarters ended June 30, 2014 and March 31, 2014, positive operating leverage in the quarter-over-quarter comparison was approximately 973 basis points, based on an increase in total operating-basis revenue of 4.57% and a decrease in total operating-basis expenses of 5.16%.

² For the quarters ended June 30, 2014 and June 30, 2013, positive operating leverage in the year-over-year comparison was approximately 1 basis point, based on an increase in total operating-basis revenue of 3.72% and an increase in total operating-basis expenses of 3.71%.

³ For the quarters ended June 30, 2014, March 31, 2014 and June 30, 2013, fully taxable-equivalent net interest margin represented fully taxable-equivalent net interest revenue of $603 million, $599 million and $629 million, respectively (GAAP-basis net interest revenue of $561 million, $555 million, and $596 million plus tax-equivalent adjustments of $42 million, $44 million and $33 million, respectively), on an annualized basis, as a percentage of average total interest-earning assets for the quarters presented.



STATE STREET CORPORATION
Earnings Release Addendum
RECONCILIATIONS OF OPERATING-BASIS (NON-GAAP) FINANCIAL INFORMATION (Continued)

		Quarters Ended									% Change
(Dollars in millions, except per share amounts)		June 30, 2014			March 31, 2014			June 30, 2013			Q2 2014 vs. Q1 2014		Q2 2014 vs. Q2 2013
Compensation and Employee Benefits Expenses:
Total compensation and employee benefits expenses, GAAP basis		$	978		$	1,157		$	917		(15	)%	7	%
	Severance costs associated with staffing realignment	(4		)	(72		)	—
Total compensation and employee benefits expenses, operating basis		$	974		$	1,085		$	917		(10	)	6

Other Expenses:
Total other expenses, GAAP basis		$	292		$	289		$	316		1		(8	)
	Provisions for litigation exposure and other costs, net	—			(6		)	(15		)
Total other expenses, operating basis		$	292		$	283		$	301		3		(3	)

Income Before Income Tax Expense:
Income before income tax expense, GAAP basis		$	746		$	455		$	762		64		(2	)
	Net pre-tax effect of non-operating adjustments to revenue and expenses	110			185			65
Income before income tax expense, operating basis		$	856		$	640		$	827		34		4
Pre-tax operating margin⁴:
Pre-tax operating margin, GAAP basis		28.7		%	18.3		%	29.8		%
	Net effect of non-operating adjustments	3.3			6.7			2.3
Pre-tax operating margin, operating basis		32.0		%	25.0		%	32.1		%

Income Tax Expense:
Income tax expense, GAAP basis		$	124		$	92		$	183
	Aggregate tax-equivalent adjustments	106			101			67
	Italian banking industry tax assessment	—			(11		)	—
	Net tax effect of non-operating adjustments	3			18			(2		)
Income tax expense, operating basis		$	233		$	200		$	248

Effective Tax Rate:
Income before income tax expense, operating basis		$	856		$	640		$	827
Income tax expense, operating basis		233			200			248
Effective tax rate, operating basis		27.2		%	31.2		%	30.0		%

Net Income Available to Common Shareholders:
Net income available to common shareholders, GAAP basis		$	602		$	356		$	571		69		5
Net after-tax effect of non-operating adjustments to processing fees and other revenue, net interest revenue, expenses and income tax expense		1			77			—
Net income available to common shareholders, operating basis		$	603		$	433		$	571		39		6

⁴Pre-tax operating margin for the quarters ended June 30, 2014, March 31, 2014 and June 30, 2013 was calculated by dividing income before income tax expense by total revenue.



STATE STREET CORPORATION
Earnings Release Addendum
RECONCILIATIONS OF OPERATING-BASIS (NON-GAAP) FINANCIAL INFORMATION (Continued)

		Quarters Ended									% Change
(Dollars in millions, except per share amounts)		June 30, 2014			March 31, 2014			June 30, 2013			Q2 2014 vs. Q1 2014			Q2 2014 vs. Q2 2013
Diluted Earnings per Common Share:
Diluted earnings per common share, GAAP basis		$	1.38		$	.81		$	1.24		70	%		11	%
	Severance costs	.01			.11			—
	Provisions for litigation exposure and other costs, net	—			.01			.02
	Acquisition costs	.02			.03			.03
	Restructuring charges, net	.02			.02			.01
	Effect on income tax rate of non-operating adjustments	—			.02			—
	Discount accretion associated with former conduit securities	(.04		)	(.04		)	(.06		)
	Italian banking industry tax assessment	—			.03			—
Diluted earnings per common share, operating basis		$	1.39		$	.99		$	1.24		40			12

Return on Average Common Equity:
Return on average common equity, GAAP basis		11.9		%	7.2		%	11.3		%	470		bps	60		bps
	Severance costs	—			1.0			—
	Provisions for litigation exposure and other costs, net	—			.1			.2
	Acquisition costs	.2			.3			.2
	Restructuring charges, net	.1			.1			.1
	Effect on income tax rate of non-operating adjustments	—			.2			—
	Discount accretion associated with former conduit securities	(.3		)	(.3		)	(.5		)
	Italian banking industry tax assessment	—			.2			—
Return on average common equity, operating basis		11.9		%	8.8		%	11.3		%	310			60



STATE STREET CORPORATION
Earnings Release Addendum
RECONCILIATIONS OF OPERATING-BASIS (NON-GAAP) FINANCIAL INFORMATION

		Six Months Ended						% Change
(Dollars in millions, except per share amounts)		June 30, 2014			June 30, 2013			2014 vs. 2013
Total Revenue:
Total revenue, GAAP basis		$	5,083		$	4,995		1.8	%
	Adjustment to processing fees and other revenue (see below)	121			68
	Adjustment to net interest revenue (see below)	86			65
	Adjustment to net interest revenue (see below)	(55		)	(78		)
Total revenue, operating basis¹		$	5,235		$	5,050		3.66

Fee Revenue:
Total fee revenue, GAAP basis		3,963			3,828			4
	Tax-equivalent adjustment associated with tax-advantaged investments	121			68
Total fee revenue, operating basis		4,084			3,896			5

Processing Fees and Other Revenue:
Total processing fees and other revenue, GAAP basis		$	100		$	110		(9	)
	Tax-equivalent adjustment associated with tax-advantaged investments	121			68
Total processing fees and other revenue, operating basis		$	221		$	178		24

Net Interest Revenue:
Net interest revenue, GAAP basis		$	1,116		$	1,172		(5	)
	Tax-equivalent adjustment associated with tax-exempt investment securities	86			65
	Discount accretion related to former conduit securities	(55		)	(78		)
Net interest revenue, operating basis		$	1,147		$	1,159		(1	)
Net Interest Margin:
Net interest margin, fully taxable-equivalent basis²		1.23		%	1.40		%	(22	)	bps
	Effect of discount accretion	(.05		)	(.09		)
Net interest margin, operating basis		1.18		%	1.31		%	(16	)

Expenses:
Total expenses, GAAP basis		$	3,878		$	3,624		7.0	%
	Severance costs associated with staffing realignment	(76		)	—
	Provisions for litigation exposure and other costs, net	(6		)	(15		)
	Acquisition costs	(36		)	(34		)
	Restructuring charges, net	(25		)	(10		)
Total expenses, operating basis¹		$	3,735		$	3,565		4.77

¹For the six months ended June 30, 2014 and June 30, 2013, negative operating leverage in the year-over-year comparison was approximately 111 basis points, based on an increase in total operating-basis revenue of 3.66% and an increase in total operating-basis expenses of 4.77%.

² For the six months ended June 30, 2014 and June 30, 2013, fully taxable-equivalent net interest margin represented fully taxable-equivalent net interest revenue of $1,202 million and $1,237 million, respectively (GAAP-basis net interest revenue of $1,116 million and $1,172 million plus tax-equivalent adjustments of $86 million and $65 million, respectively), on an annualized basis, as a percentage of average total interest-earning assets for the six-month periods presented.



STATE STREET CORPORATION
Earnings Release Addendum
RECONCILIATIONS OF OPERATING-BASIS (NON-GAAP) FINANCIAL INFORMATION (Continued)

		Six Months Ended						% Change
(Dollars in millions, except per share amounts)		June 30, 2014			June 30, 2013			2014 vs. 2013
Compensation and Employee Benefits Expenses:
Total compensation and employee benefits expenses, GAAP basis		$	2,135		$	1,952		9	%
	Severance costs associated with staffing realignment	(76		)	—
Total compensation and employee benefits expenses, operating basis		$	2,059		$	1,952		5

Other Expenses:
Total other expenses, GAAP basis		$	581		$	560		4
	Provisions for litigation exposure and other costs, net	(6		)	(15		)
Total other expenses, operating basis		$	575		$	545		6

Income Before Income Tax Expense:
Income before income tax expense, GAAP basis		$	1,201		$	1,371		(12	)
	Net pre-tax effect of non-operating adjustments to revenue and expenses	295			114
Income before income tax expense, operating basis		$	1,496		$	1,485		1
Pre-tax operating margin³:
Pre-tax operating margin, GAAP basis		23.6		%	27.4		%
	Net effect of non-operating adjustments	5.0			2.0
Pre-tax operating margin, operating basis		28.6		%	29.4		%

Income Tax Expense:
Income tax expense, GAAP basis		$	216		$	328
	Aggregate tax-equivalent adjustments	207			133
	Italian banking industry tax assessment	(11		)	—
	Net tax effect of non-operating adjustments	21			(7		)
Income tax expense, operating basis		$	433		$	454

Effective Tax Rate:
Income before income tax expense, operating basis		$	1,496		$	1,485
Income tax expense, operating basis		433			454
Effective tax rate, operating basis		28.9		%	30.5		%

Net Income Available to Common Shareholders:
Net income available to common shareholders, GAAP basis		$	958		$	1,026		(7	)
Net after-tax effect of non-operating adjustments to processing fees and other revenue, net interest revenue, expenses and income tax expense		78			(12		)
Net income available to common shareholders, operating basis		$	1,036		$	1,014		2

³ Pre-tax operating margin for the six months ended June 30, 2014 and June 30, 2013 was calculated by dividing income before income tax expense by total revenue.



STATE STREET CORPORATION
Earnings Release Addendum
RECONCILIATIONS OF OPERATING-BASIS (NON-GAAP) FINANCIAL INFORMATION (Continued)

		Six Months Ended						% Change
(Dollars in millions, except per share amounts)		June 30, 2014			June 30, 2013			2014 vs. 2013
Diluted Earnings per Common Share:
Diluted earnings per common share, GAAP basis		$	2.19		$	2.22		(1	)%
	Severance costs	.11			—
	Provisions for litigation exposure and other costs, net	.01			.02
	Acquisition costs	.06			.05
	Restructuring charges, net	.03			.02
	Effect on income tax rate of non-operating adjustments	.02			(.01		)
	Discount accretion related to former conduit securities	(.08		)	(.10		)
	Italian banking industry tax assessment	.03			—
Diluted earnings per common share, operating basis		$	2.37		$	2.20		8

Return on Average Common Equity:
Return on average common equity, GAAP basis		9.6		%	10.2		%	(60	)	bps
	Severance costs	.5			—
	Provisions for litigation exposure and other costs, net	—			.1
	Acquisition costs	.2			.2
	Restructuring charges, net	.2			.1
	Effect on income tax rate of non-operating adjustments	.1			—
	Discount accretion related to former conduit securities	(.3		)	(.5		)
	Italian banking industry tax assessment	.1			—
Return on average common equity, operating basis		10.4		%	10.1		%	30

STATE STREET CORPORATION

Earnings Release Addendum

REGULATORY CAPITAL

The accompanying earnings release presents capital ratios in addition to, or adjusted from, those calculated in conformity with applicable regulatory requirements. These include capital ratios based on tangible common equity, as well as capital ratios adjusted to reflect our estimate of the impact of the relevant Basel III requirements, as specified in the July 2013 final rule issued by the Board of Governors of the Federal Reserve System, referred to as the Basel III final rule. These non-regulatory and adjusted capital measures are non-GAAP financial measures. Management currently calculates the non-GAAP capital ratios presented in the earnings release to aid in its understanding of State Street’s capital position under a variety of standards, including currently applicable and transitioning regulatory requirements. Management believes that the use of the non-GAAP capital ratios presented in the earnings release similarly aids in an investor's understanding of State Street's capital position and therefore is of interest to investors.

The total risk-based capital, tier 1 risk-based capital, tier 1 common risk-based capital and tier 1 leverage ratios have each been calculated in conformity with applicable regulatory requirements as of the dates that each was first publicly disclosed. As of June 30, 2014, the capital component, or numerator, of these ratios was calculated in conformity with the provisions of the Basel III final rule. As of June 30, 2014, the total risk-weighted assets component, or denominator, used in the calculation of the total risk-based capital, tier 1 risk-based capital, and tier 1 common risk-based capital ratios, and the adjusted average assets component, or denominator, used in the calculation of the tier 1 leverage ratio, were each calculated in conformity with the advanced approaches provisions of Basel III.

The tangible common equity, or TCE, ratio is an additional capital ratio that management believes provides context useful in understanding and assessing State Street's capital adequacy. The TCE ratio is calculated by dividing consolidated total common shareholders’ equity by consolidated total assets, after reducing both amounts by goodwill and other intangible assets net of related deferred taxes. Total assets reflected in the TCE ratio also exclude cash balances on deposit at the Federal Reserve Bank and other central banks in excess of required reserves. The TCE ratio is not required by GAAP or by banking regulations, but is a metric used by management to evaluate the adequacy of State Street’s capital levels. Since there is no authoritative requirement to calculate the TCE ratio, our TCE ratio is not necessarily comparable to similar capital measures disclosed or used by other companies in the financial services industry. Tangible common equity and adjusted tangible assets are non-GAAP financial measures and should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. Reconciliations with respect to the calculation of the TCE ratios as of June 30, 2014, March 31, 2014 and June 30, 2013 are provided on page 14 of this earnings release addendum.

The tier 1 common risk-based capital ratio is provided for in the Basel III final rule. The tier 1 common risk-based capital ratio was not previously required by Basel I. A reconciliation with respect to the tier 1 common risk-based capital ratio as of June 30, 2013 is provided on page 14 of this earnings release addendum.

The following table presents State Street's regulatory capital ratios and underlying components, calculated in conformity with applicable regulatory requirements as described above.



(Dollars in millions)	Basel III Advanced Approach June 30, 2014¹		Basel III Transitional June 30, 2014²
RATIOS:
Total risk-based capital	16.1	%	20.2	%
Tier 1 risk-based capital	14.1		17.7
Tier 1 common risk-based capital	12.8		16.0
Tier 1 leverage	6.9		6.9

¹Total capital, tier 1 capital, tier 1 common and tier 1 leverage ratios as of June 30, 2014 were calculated in conformity with the advanced approaches provisions of the Basel III final rule.

²Total capital, tier 1 capital, tier 1 common and tier 1 leverage ratios as of June 30, 2014 were calculated in conformity with the transitional provisions of the Basel III final rule. Specifically, these ratios reflect total and tier 1 capital, as applicable (the numerator), calculated in conformity with the advanced approaches provisions of the Basel III final rule, and total risk-weighted assets or, with respect to the tier 1 leverage ratio, quarterly average assets (in both cases, the denominator), calculated in conformity with the provisions of Basel I.



Supporting Calculations:

Total capital	$	17,924		$	17,924
Total risk-weighted assets	111,015			88,607
Total risk-based capital ratio	16.1		%	20.2		%

Tier 1 capital	$	15,708		$	15,708
Total risk-weighted assets	111,015			88,607
Tier 1 risk-based capital ratio	14.1		%	17.7		%

Tier 1 common capital	$	14,165		$	14,165
Total risk-weighted assets	111,015			88,607
Tier 1 common risk-based capital ratio	12.8		%	16.0		%

Tier 1 capital	$	15,708		$	15,708
Adjusted quarterly average assets	227,815			227,815
Tier 1 leverage ratio	6.9		%	6.9		%



STATE STREET CORPORATION
Earnings Release Addendum
RECONCILIATIONS OF TANGIBLE COMMON EQUITY AND TIER 1 COMMON RATIOS

The following table presents the calculations of State Street's ratios of tangible common equity to total tangible assets and its ratio of tier 1 common capital to total risk-weighted assets.

(Dollars in millions)		June 30, 2014			March 31, 2014			June 30, 2013
Consolidated Total Assets		$	282,324		$	256,663		$	227,300
Less:
Goodwill		6,037			6,038			5,924
Other intangible assets		2,247			2,306			2,406
Cash balances held at central banks in excess of required reserves		87,081			61,980			36,458
Adjusted assets		186,959			186,339			182,512
Plus related deferred tax liabilities		898			900			668
Total tangible assets	A	$	187,857		$	187,239		$	183,180
Consolidated Total Common Shareholders' Equity		$	20,467		$	20,040		$	19,591
Less:
Goodwill		6,037			6,038			5,924
Other intangible assets		2,247			2,306			2,406
Adjusted equity		12,183			11,696			11,261
Plus related deferred tax liabilities		898			900			668
Total tangible common equity	B	$	13,081		$	12,596		$	11,929
Tangible common equity ratio	B/A	7.0		%	6.7		%	6.5		%
Tier 1 Capital¹								$	13,708
Less:
Trust preferred capital securities								950
Preferred stock								490
Plus: Other								—
Tier 1 common capital	C							$	12,268
Total Risk-Weighted Assets¹	D							$	82,453
Tier 1 common risk-based capital ratio	C/D							14.9		%

¹ As of June 30, 2013, tier 1 capital and total risk-weighted assets were calculated in conformity with the provisions of Basel I.



STATE STREET CORPORATION
Earnings Release Addendum
RECONCILIATIONS OF TIER 1 COMMON RATIOS

In July 2013, the Board of Governors of the Federal Reserve System issued a final rule intended to implement the Basel III framework in the U.S., referred to as the Basel III final rule. Provisions of the Basel III final rule become effective under a transition timetable which began on January 1, 2014. On February 21, 2014, we were notified by the Federal Reserve that we completed our parallel run period and would be required to begin using the advanced approaches provided in the Basel III final rule beginning with the second quarter of 2014. Pursuant to this notification, we began to use the advanced approaches to calculate and disclose our regulatory capital ratios beginning with the second quarter of 2014.
Once the provisions of the Basel III final rule are fully implemented on January 1, 2015, the lower of our common equity tier 1, or tier 1 common, ratio calculated under the Basel III advanced approach, and our tier 1 common ratio calculated under the standardized approach, will be used by banking regulators in their assessment of our capital adequacy for regulatory purposes. In 2014, including the second quarter of 2014 and ending with the fourth quarter of 2014, the lower of our tier 1 common ratio calculated under the Basel III advanced approach, and our tier 1 common ratio using capital calculated under the provisions of the Basel III final rule (the numerator), and total risk-weighted assets calculated under the provisions of Basel I (the denominator), will be used by banking regulators in their assessment of our capital adequacy for regulatory purposes.
The following tables reconcile our estimated tier 1 common ratios calculated in conformity with the Basel III final rule, as described, to our tier 1 common ratios calculated in conformity with applicable regulatory requirements as of the dates indicated.
As of June 30, 2014 (Dollars in millions)	Basel III Final Rule Advanced Approach¹				Basel III Final Rule Standardized Approach (Estimated)²
Tier 1 Capital	$	15,708			$	15,708
Less:
Trust preferred capital securities	475				475
Preferred stock	1,233				1,233
Plus: Other	165				165
Tier 1 common capital	14,165			A	14,165
Total Risk-Weighted Assets	111,015			B	125,888
Tier 1 common risk-based capital ratio	12.8		%	A/B	11.3		%

¹ Tier 1 common ratio as of June 30, 2014 was calculated in conformity with the advanced approaches provisions of the Basel III final rule.
² Estimated tier 1 common ratio as of June 30, 2014 reflects capital calculated in conformity with the provisions of the Basel III final rule and total risk-weighted assets calculated in conformity with the standardized approach in the Basel III final rule. Under the standardized approach, total risk-weighted assets used in the calculation of the tier 1 common ratio increased by $14.87 billion as a result of applying the standardized provisions of the Basel III final rule to total risk-weighted assets of $111.02 billion as of June 30, 2014, calculated in conformity with the advanced approaches provisions of the Basel III final rule.

As of March 31, 2014 (Dollars in millions)	Basel III Transitional³				Basel III Final Rule Standardized Approach (Estimated)⁴			Basel III Final Rule Advanced Approach (Estimated)⁵
Tier 1 Capital	$	15,487			$	15,487		$	15,487
Less:
Trust preferred capital securities	475				475			475
Preferred stock	1,233				1,233			1,233
Plus: Other	145				145			145
Tier 1 common capital	13,924			C	13,924			13,924
Total Risk-Weighted Assets	84,694			D	124,783			105,729
Tier 1 common risk-based capital ratio	16.4		%	C/D	11.2		%	13.2		%

³ Tier 1 common ratio as of March 31, 2014 was calculated in conformity with the transitional provisions of the Basel III final rule. Specifically, this ratio reflects tier 1 capital (the numerator) calculated in conformity with the provisions of the Basel III final rule, and total risk-weighted assets (the denominator) calculated in conformity with the provisions of Basel I.
⁴ Estimated tier 1 common ratio as of March 31, 2014 reflects capital calculated in conformity with the advanced approaches provisions of the Basel III final rule and estimated total risk-weighted assets calculated in conformity with the standardized approach in the Basel III final rule. Under the standardized approach, total risk-weighted assets used in the calculation of the tier 1 common ratio increased by $40.09 billion as a result of applying the standardized provisions of the Basel III final rule to total risk-weighted assets of $84.69 billion as of March 31, 2014, calculated in conformity with the provisions of Basel I.
⁵ Estimated tier 1 common ratio as of March 31, 2014 reflects capital calculated in conformity with the advanced approaches provisions of the Basel III final rule and estimated total risk-weighted assets calculated in conformity with the advanced approaches provisions of the Basel III final rule. Under the advanced approach, total risk-weighted assets used in the calculation of the tier 1 common ratio increased by $21.04 billion as a result of applying the advanced approaches provisions of the Basel III final rule to total risk-weighted assets of $84.69 billion as of March 31, 2014, calculated in conformity with the provisions of Basel I.



As of June 30, 2013 (Dollars in millions)	Basel I⁶				Basel III Final Rule Standardized Approach (Estimated)⁷			Basel III Final Rule Advanced Approach (Estimated)⁸
Tier 1 Capital	$	13,708			$	13,007		$	13,007
Less:
Trust preferred capital securities	950				475			475
Preferred stock	490				490			490
Plus: Other	—				54			54
Tier 1 common capital	12,268			E	12,096			12,096
Total Risk-Weighted Assets	82,453			F	120,495			111,035
Tier 1 common risk-based capital ratio	14.9		%	E/F	10.0		%	10.9		%

⁶ Tier 1 common ratio as of June 30, 2013 was calculated in conformity with the provisions of Basel I. Specifically, tier 1 common capital was calculated using tier 1 capital, calculated in conformity with the provisions of Basel I, but deducting non-common elements (qualifying perpetual preferred stock and qualifying trust preferred capital securities), resulting in tier 1 common capital, by total risk-weighted assets calculated in conformity with the provisions of Basel I.
⁷ Estimated tier 1 common ratio as of June 30, 2013 reflects capital calculated as described in note 6 above, but with tier 1 capital calculated in conformity with the provisions of the Basel III final rule and estimated total risk-weighted assets calculated in conformity with the standardized approach in the Basel III final rule. Under the standardized approach, total risk-weighted assets used in the calculation of the tier 1 common ratio increased by $38.04 billion as a result of applying the standardized provisions of the Basel III final rule to total risk-weighted assets of $82.45 billion as of June 30, 2013, calculated in conformity with the provisions of Basel I.
⁸ Estimated tier 1 common ratio as of June 30, 2013 reflects capital calculated as described in note 6 above, but with tier 1 capital calculated in conformity with the provisions of the Basel III final rule and estimated total risk-weighted assets calculated in conformity with the advanced approaches provisions of the Basel III final rule. Under the advanced approach, total risk-weighted assets used in the calculation of the tier 1 common ratio increased by $28.58 billion as a result of applying the advanced approaches provisions of the Basel III final rule to total risk-weighted assets of $82.45 billion as of June 30, 2013, calculated in conformity with the provisions of Basel I.

LIMITED ACCESS State Street Corporation Second-Quarter 2014 Financial Highlights July 22, 2014 Exhibit 99.3

2 This presentation includes certain highlights of, and also material supplemental to, State Street Corporation’s (State Street’s) news release announcing its second- quarter 2014 financial results. That news release contains a more detailed discussion of many of the matters described in this presentation and is accompanied by detailed financial tables. This presentation is designed to be reviewed together with that news release, which is available on State Street’s website and is incorporated herein by reference. Forward-Looking Statements This presentation contains forward-looking statements as defined by United States securities laws, including statements relating to our goals and expectations regarding our business, financial and capital condition, results of operations, investment portfolio performance and strategies, the financial and market outlook, dividend and stock purchase programs, governmental and regulatory initiatives and developments, and the business environment. Forward-looking statements are often, but not always, identified by such forward-looking terminology as “expect,” “objective,” “intend,” “plan,” “forecast,” “outlook,” “believe,” “anticipate,” “estimate,” “seek,” “may,” “will,” “trend,” “target,” “strategy” 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 July 22, 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 presentation speak only as of the date hereof, July 22, 2014, and we do not undertake efforts to revise those forward-looking statements to reflect events after that date.

3 • GAAP-basis earnings per share, or EPS, of $1.38 increased from $0.81 in Q1 ’14 and from $1.24 in Q2 ’13 – Q1 ’14 EPS reflects $146 million, or $.23 per share, related to seasonal deferred incentive compensation expense for retirement-eligible employees and payroll taxes • Total GAAP-basis revenue of $2.60 billion increased from $2.49 billion in Q1 ’14 and from $2.56 billion in Q2 ’13 • Operating-basis1 EPS of $1.39 was up from $0.99 in Q1 ’14 and up from $1.24 in Q2 ’13 – Q1 ’14 EPS reflects $146 million, or $.23 per share, related to seasonal deferred incentive compensation expense for retirement-eligible employees and payroll taxes • Total operating-basis1 revenue was $2.68 billion, up 4.6% from $2.56 billion in Q1 ’14 and up 3.7% from $2.58 billion in Q2 ’13 • Core total asset servicing and asset management fees of $1.59 billion were up 3.8% from $1.53 billion in Q1 ’14 and up 7.4% from $1.48 billion in Q2 ’13 • New business2 – New assets to be serviced totaled $250 billion, including 26 new mandates in alternative investment servicing – Net new assets to be managed by SSgA totaled $18 billion 1 Includes operating-basis (non-GAAP) financial information where noted. Operating-basis financial highlights are a non-GAAP presentation. Refer to the addendum linked to this presentation for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information. 2 New business in assets to be serviced is reflected in our assets under custody and administration after we begin servicing the assets, and net new business in assets to be managed is reflected in our assets under management after we begin managing the assets. As such, only a portion of these new asset servicing and asset management mandates is reflected in our assets under custody and administration and assets under management, as the case may be, as of June 30, 2014. Distribution fees from the SPDR® Gold Exchange-Traded Fund, or ETF, are recorded in brokerage and other fee revenue and not in management fee revenue. Second-Quarter 2014 Financial Highlights1

4 Summary of GAAP-Basis Financial Results for the Six Months Ended June 30, 2014 $ in millions, except per share data 2014 2013 % change Revenue 5,083$ 4,995$ 1.8% Expenses 3,878 3,624 7.0 Earnings per share (EPS) 2.19 2.22 (1.4) Return on average common equity (ROE) 9.6% 10.2% Pre-tax operating margin 23.6 27.4 Average diluted common shares outstanding 437.0 461.6 Six Months Ended June 30,

5 Summary of GAAP-Basis Financial Results for the Second Quarter of 2014 $ in millions, except per share data Q2 '14 Q1 '14 Q2 '13 Q1 '14 Q2 '13 Revenue 2,598$ 2,485$ 2,560$ 4.5% 1.5% Expenses 1,850 2,028 1,798 (8.8) 2.9 EPS 1.38 .81 1.24 70.4 11.3 ROE 11.9% 7.2% 11.3% Pre-tax operating margin 28.7 18.3 29.8 Average diluted common shares outstanding 435.3 438.8 461.0 % change

6 Second-Quarter 2014 GAAP-Basis Revenue $ in millions Q2 '14 Q1 '14 Q2 '13 Servicing fees 1,288$ 4.0% 7.2% Management fees 300 2.7 8.3 Trading services revenue 260 2.8 (14.5) Securities finance revenue 147 72.9 12.2 Processing fees and other revenue 44 (21.4) (24.1) Total fee revenue 2,039 6.0 3.5 Net interest revenue 561 1.1 (5.9) Gains (losses) related to investment securities, net (2) (133.3) (71.4) Total revenue 2,598$ 4.5% 1.5% % change

7 Second-Quarter 2014 GAAP-Basis Expenses $ in millions Q2 '14 Q1 '14 Q2 '13 Compensation and employee benefits 978$ (15.5)% 6.7% Information systems and communications 244 - 3.8 Transaction processing services 193 1.0 3.8 Occupancy 115 0.9 0.9 Acqui ition and restructuring costs 28 (15.2) (6.7) Other 292 1.0 (7.6) Total expenses 1,850$ (8.8)% 2.9% % change

8 • Strong Q2 ’14 operating-basis EPS driven primarily by improved fee revenue growth • Higher servicing fees compared to Q2 ’13 due to stronger global equity markets, net new business, and the impact of the weaker U.S. dollar • Higher management fees compared to Q1 ’14 and Q2 ’13 driven primarily by stronger global equity markets • Market-driven revenue performed well despite low-interest-rate environment – Q2 ’14 securities finance benefitted from seasonal activity compared to Q1 ’14; securities finance revenue increased due to new business in enhanced custody compared to Q2 ’13 – Higher foreign exchange trading volume helped to offset very low volatility – Operating-basis Net Interest Revenue (NIR) and Net Interest Margin (NIM) continue to be pressured by the low interest-rate environment • Q2 ’14 operating-basis effective tax rate of 27.2%, compared to 31.2% in Q1 ’14 and 30.0% in Q2 ’13; full-year 2014 operating-basis effective tax rate is expected to be between 30% and 32% • Business Operations and Information Technology Transformation program on track to achieve approximately $575 million to $625 million of pre-tax, annualized expense savings2 by the end of 2014, with full effect in 2015 • Regulatory compliance cost pressures are increasing – Now expect full-year 2014 regulatory compliance expenses to significantly exceed our prior estimate of $30 million to $40 million over 2013 levels • Given regulatory headwinds, achieving our goal of positive annual operating leverage3 will likely require improvement in market- driven revenue in the second half of 2014 • We continue to prioritize returning capital to our shareholders – During Q2 ’14, we purchased $410 million of common stock; as of June 30, 2014 we had $1.3 billion remaining under our common stock purchase program authorizing the purchase of up to $1.7 billion through March 31, 2015 Second-Quarter 2014 Key Messages1 1 Includes operating-basis (non-GAAP) financial information where noted. Operating-basis key messages are a non-GAAP presentation. Refer to the addendum linked to this presentation for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information. 2 Estimated pre-tax expense savings relate only to the Business Operations and Information Technology Transformation program and are based on projected improvement from our total 2010 operating- basis expenses, all else being equal. Our actual total expenses have increased since 2010, and may increase or decrease in the future, due to other factors. 3 Operating leverage is defined as the rate of growth of total revenue less the rate of growth of total expenses, each as determined on an operating-basis.

9 Year-to-Date and Second-Quarter 2014 Operating-Basis Financial Highlights1 • Year-to-date (six months ended June 30, 2014) key financial metrics – EPS of $2.37 for the six months ended June 30, 2014 increased 7.7% from the same period in 2013 – Total revenue of $5.24 billion for the six months ended June 30, 2014 increased 3.7% from the same period in 2013 – Core total asset servicing and asset management fee revenue of $3.12 billion for the six months ended June 30, 2014 increased 6.9% from the same period in 2013 on both a GAAP and operating basis – Year-to-date expenses increased approximately 5% from the year-ago period, primarily driven by higher compensation and employee benefits and higher “other” expenses • Second-quarter key financial metrics – EPS of $1.39 for Q2 ’14 increased 40.4% from Q1 ’14 and 12.1% from Q2 ’13 – Total revenue of $2.68 billion for Q2 ’14 increased 4.6% from Q1 ’14 and 3.7% from Q2 ’13 – Total fee revenue of $2.10 billion for Q2 ’14 increased 6.2% and 4.9% from Q1 ’14 and Q2 ’13, respectively, primarily due to higher core servicing and management fees – Pre-tax operating margin of 32.0% for Q2 ’14; 25.0% for Q1 ’14 and 32.1% for Q2 ’13 – Return on average common equity of 11.9% for Q2 ’14; 8.8% for Q1 ’14 and 11.3% for Q2 ’13 • Second-quarter expenses – Total expenses decreased 5.2% from Q1 ’14 and increased 3.7% from Q2 ’13 – Q1 ’14 total expenses reflected the seasonal deferred incentive compensation expense for retirement eligible employees and payroll taxes – Q2 ’14 total expenses increased from Q2 ’13, primarily due to higher compensation and regulatory compliance costs, including the impact of the weaker U.S. dollar 1 Includes operating-basis (non-GAAP) financial information. Operating-basis financial highlights are a non-GAAP presentation. See pages 4-7 of this presentation for a GAAP-basis presentation of the referenced information for the relevant periods. Refer to the addendum linked to this presentation for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information.

10 Summary of Operating-Basis (Non-GAAP) Financial Results1 for the Six Months Ended June 30, 2014 1 Results presented on an operating basis, a non-GAAP presentation. Refer to the addendum linked to this presentation for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information. 2 Operating leverage is defined as the rate of growth of total revenue less the rate of growth of total expenses, each as determined on an operating basis. $ in millions, except per share data 2014 2013 Change Revenue 5,235$ 5,050$ 3.7% Expenses 3,735 3,565 4.8 EPS 2.37 2.20 7.7 ROE 10.4% 10.1% NIM 1.18 1.31 Pre-tax operating margin 28.6 29.4 Operating leverage2 (111) bps Average diluted shares outstanding 437.0 461.6 Six Months Ended June 30,

11 Summary of Operating-Basis (Non-GAAP) Financial Results1 for the Second-Quarter of 2014 1 Results presented on an operating basis, a non-GAAP presentation. Refer to the addendum linked to this presentation for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information. 2 Operating leverage is defined as the rate of growth of total revenue less the rate of growth of total expenses, each as determined on an operating basis. $ in millions, except per share data Q2 '14 Q1 '14 Q2 '13 Q1 '14 Q2 '13 Revenue 2,676$ 2,559$ 2,580$ 4.6% 3.7% Expenses 1,818 1,917 1,753 (5.2) 3.7 EPS 1.39 .99 1.24 40.4 12.1 ROE 11.9% 8.8% 11.3% NIM 1.12 1.24 1.31 Pre-tax operating margin 32.0 25.0 32.1 Operating leverage2 973 bps 1 bp Average diluted common shares outstanding 435.3 438.8 461.0 Change

12 Operating-Basis (Non-GAAP) Revenue1 1 Results presented on an operating basis, a non-GAAP presentation, where applicable. Refer to the addendum linked to this presentation for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information. Key Drivers • Q2 ’14 servicing fees were up compared to Q1 ’14, primarily due to net new business and stronger global equity markets; increased from Q2 ’13, primarily due to stronger global equity markets, net new business, and the impact of the weaker U.S. dollar • Q2 ’14 asset management fees increased from Q1 ’14 and Q2 ’13, primarily due to stronger global equity markets • Trading services revenue increased from Q1 ’14, primarily due to higher foreign-exchange revenue due to higher volumes, partially offset by lower volatility. Compared to Q2 ’13, trading services revenue declined, primarily due to lower foreign- exchange trading revenue from lower volatility partially offset by higher volumes • Securities finance revenue increased from Q1 ’14, primarily due to seasonality. Compared to Q2 ’13, securities finance revenue increased, primarily due to new business in enhanced custody • Q2 ’14 average securities on loan of $357 billion vs. Q2 ’13 average securities on loan of $330 billion • Processing fees and other revenue increased compared to Q2 ’13, primarily due to higher revenue associated with tax- advantaged investments and a more favorable counterparty valuation adjustment • Net interest revenue decreased 1.2% compared to Q2 ’13, primarily due to lower yields on interest-earning assets, partially offset by lower interest expense and a higher level of interest earning assets • NIM decreased to 112 bps from 124 bps in Q1 ’14, and 131 bps in Q2 ’13 $ in millions Q2 '14 Q1 '14 Q2 '13 Servicing fees 1,288$ 4.0% 7.2% Management fees 300 2.7 8.3 Trading services revenue 260 2.8 (14.5) Securities finance revenue 147 72.9 12.2 Processing fees and other revenue 108 (4.4) 17.4 Total fee revenue 2,103 6.2 4.9 Net interest revenue 575 0.5 (1.2) Gains (losses) r late to investment securities, net (2) (133.3) (71.4) Total operatin -b is revenue 2,676$ 4.6% 3.7% % change

13 Operating-Basis (Non-GAAP) Expenses1 Key Drivers • Q2 ’14 compensation and employee benefits expenses decreased 10.2% compared to Q1 ’14, primarily due to an incremental $146 million associated with the seasonal deferred incentive compensation expense for retirement- eligible employees and payroll taxes recorded in Q1 ’14. Compared to Q2 ’13, compensation and employee benefits expenses increased 6.2%, primarily due to new business support, higher incentive compensation, the impact of the weaker U.S. dollar, annual merit increases, and higher regulatory compliance costs, partially offset by savings associated with the Business Operations and Information Technology Transformation program • Q2 ’14 information systems and communications expenses increased 3.8% from Q2 ’13, primarily reflecting higher infrastructure costs • Transaction processing services expenses increased 3.8% from Q2 ’13, primarily due to higher volumes and higher equity values in the investment servicing business • Q2 ’14 occupancy expenses of $115 million included a one- time recovery of $5 million • Q2 ’14 other expenses increased 3.2% compared to Q1 ’14, primarily due to higher professional services fees associated with regulatory compliance, partially offset by a $9 million credit associated with Lehman Brothers-related recoveries. Compared to Q2 ’13, other expenses decreased 3.0%, primarily due to a $9 million credit associated with Lehman Brothers-related recoveries and lower legal and sales promotion expenses, partially offset by higher regulatory compliance costs 1 Results presented on an operating basis, a non-GAAP presentation, where applicable. Refer to the addendum linked to this presentation for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information. . $ in millions Q2 '14 Q1 '14 Q2 '13 Compensation and employee benefits 974$ (10.2)% 6.2% Information systems and communications 244 - 3.8 Transaction processing services 193 1.0 3.8 Occupancy 115 0.9 0.9 Other 292 3.2 (3.0) Total operating-ba is expenses 1,818$ (5.2)% 3.7% % change

14 Balance Sheet Highlights Second-Quarter 20141, 2 Investment portfolio • Size: $117 billion, unchanged from end of Q1 ’14 • Credit profile: approximately 89% rated AAA/AA • Fixed-rate/floating-rate mix: 46% / 54% • Duration: 1.9 years • Unrealized after-tax mark-to-market (MTM) gain improved to $456 million from a gain of $124 million at end of Q1 ’14 due to narrowing spreads and a decline in longer-term interest rates • Purchased $4.6 billion in Q2 ’14; average tax-equivalent yield: 1.62% • Discount accretion of $28 million in Q2 ’14 related to former conduit assets; approximately $522 million expected to accrue over the remaining lives of the former conduit securities3 Interest-rate risk metrics • Economic value of equity (EVE)4: (12.1)% of total regulatory capital5 as of June 30, 2014, versus (13.2)% as of March 31, 2014, in an up-200-bps shock to quarter-end interest-rate levels hypothetical scenario • Unrealized after-tax MTM loss sensitivity: approximately $(1.2) billion after-tax in an up-100- bps shock to quarter-end interest-rate levels hypothetical scenario Other balance sheet activity • Senior secured bank loans totaled $1.5 billion as of June 30, 2014, floating-rate, primarily BB/B rated • Recorded $2 million net loan loss provision related to the aggregate senior secured bank loan portfolio; loan loss allowance related to this portfolio totaled approximately $20 million as of June 30, 2014 1 As of period-end where applicable. 2 See appendix included in this presentation for a description of the investment portfolio. 3 Based on numerous assumptions, including holding the securities to maturity, anticipated prepayment speeds and credit quality. 4 For additional information regarding EVE, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in State Street’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014 filed with the SEC. 5 Total regulatory capital is defined as the sum of tier 1 and tier 2 risk-based capital.

15 Capital Footnotes 1 through 7 provided on page 16. Second-Quarter 2014 Highlights • Maintained a strong capital position • In Q2 ’14, purchased approximately 6.3 million shares of our common stock, at an average price of $65.02 per share and a total cost of approximately $410 million, under the March 2014 common stock purchase program authorizing the purchase of up to $1.7 billion through March 31, 2015 • Declared a $0.30 per share quarterly common stock dividend in Q2 ’14 Returning Capital to Shareholders Remains a Priority While Maintaining a Strong Capital Position Capital Ratios as of June 30, 20141, 2 Basel III Advanced Approaches3 Basel III Transitional4 Total capital 16.1% 20.2% Tier 1 capital 14.1% 17.7% Tier 1 common capital 12.8% 16.0% Tier 1 leverage State Street Corporation 6.9% 6.9% State Street Bank and Trust Company 6.6% 6.6% Tangible common equity (TCE) as of June 30, 20145 7.0% Additional estimated pro forma Basel III tier 1 common ratio calculation as of June 30, 20146 Estimated pro forma tier 1 common ratio calculated in conformity with Basel III final r le (standardized approach) 11.3% Estimated pro f rma Basel III Supplementary Leverage Ratio as of June 30, 20147 State Street Corporation 6.1% State Street Bank and Trust Company 5.8%

16 1Unless otherwise specified, all capital ratios referenced on page 15 and elsewhere in this presentation refer to State Street Corporation, or State Street, and not State Street Bank and Trust Company, or State Street Bank. Refer to the addendum linked to this presentation for a further description of these ratios, and for reconciliations applicable to State Street's tangible common equity, or TCE, ratio and estimated pro forma Basel III tier 1 common ratio presented on page 15. 2In July 2013, the Federal Reserve issued a final rule intended to implement the Basel III framework in the U.S, referred to as the Basel III final rule. On February 21, 2014, we were notified by the Federal Reserve that we completed our parallel run period and would be required to begin using the advanced approaches framework as provided in the Basel III final rule in the determination of our risk-based capital requirements. Pursuant to this notification, we used the advanced approaches framework to calculate our risk-based capital ratios beginning with the second quarter of 2014. For the remainder of 2014, including the second quarter of 2014, the lower of our regulatory capital ratios calculated under the Basel III advanced approach and those ratios calculated under the transitional provisions of Basel III will apply in the assessment of our capital adequacy for regulatory purposes. Once the provisions of the Basel III final rule are fully implemented effective January 1, 2015, the lower of the Basel III regulatory capital ratios calculated by us under the Basel III advanced approach and the Basel III standardized approach will apply in the assessment of our capital adequacy for regulatory purposes. 3Total capital, tier 1 capital, tier 1 common and tier 1 leverage ratios as of June 30, 2014 were calculated in conformity with the advanced approaches provisions of the Basel III final rule. A reconciliation with respect to the calculation of our estimated pro forma tier 1 common ratio calculated in conformity with the standardized approach as of June 30, 2014 is provided in the addendum linked to this presentation. 4 Total capital, tier 1 capital, tier 1 common and tier 1 leverage ratios as of June 30, 2014 were calculated in conformity with the transitional provisions of the Basel III final rule. Specifically, these ratios reflect total and tier 1 capital (as applicable, the numerator) calculated in conformity with the advanced approaches provisions of the Basel III final rule, and total risk-weighted assets or, with respect to the tier 1 leverage ratio, quarterly average assets (the denominator), calculated in conformity with the provisions of Basel I. 5 The TCE ratio is an additional capital ratio that management believes provides context useful in understanding and assessing State Street's capital adequacy. The TCE ratio is 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. The TCE ratio is a non-GAAP financial measure and should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. A reconciliation with respect to the calculation of our TCE ratio as of June 30, 2014 is provided in the addendum linked to this presentation. 6The estimated pro forma Basel III tier 1 common ratio (standardized) as of June 30, 2014 is a preliminary estimate by State Street, calculated in conformity with the standardized approach in the Basel III final rule. A reconciliation with respect to the calculation of our estimated pro forma tier 1 common ratio calculated in conformity with the standardized approach as of June 30, 2014 is provided in the addendum linked to this presentation. 7On April 8, 2014, U.S. banking regulators issued a final rule enhancing the supplementary leverage ratio, or SLR, standards for certain bank holding companies, like State Street, and their insured depository institution subsidiaries, like State Street Bank. We refer to this final rule as the SLR final rule. Under the SLR final rule, upon implementation as of January 1, 2018, State Street Bank must maintain a supplementary leverage ratio of at least 6 percent to be well capitalized under the U.S. banking regulators’ Prompt Corrective Action framework. The SLR final rule also provides that if State Street maintains an SLR of at least 5%, it is not subject to limitations on distributions and discretionary bonus payments under the SLR final rule. On April 8, 2014, in addition to the SLR final rule, U.S. banking regulators published a notice of proposed rulemaking, or NPR, that would revise the denominator of the SLR, composed of total leverage exposure, that the regulators initially adopted as part of the Basel III final rule in July 2013. Specifically, the NPR would revise the treatment of on- and off-balance sheet exposures used in the calculation of total leverage exposure, and more closely align the regulators’ standards with respect to the calculation of total leverage exposure with the Basel Committee standards. The proposed rule would incorporate in total leverage exposure the effective notional principal amount of credit derivatives and other similar instruments through which a banking organization provides credit protection; modify the calculation of total leverage exposure for derivatives and repo-style transactions; and revise the credit conversion factors applied to certain off-balance sheet exposures. The NPR also would change the methodology used to calculate the SLR by requiring total leverage exposure to be calculated on a daily average basis. The estimated pro forma SLRs presented on page 15 are calculated in conformity with State Street’s present interpretations of the April 2014 NPR, except that off-balance sheet exposures included in total leverage exposure reflect the simple average of three month-end measures for off-balance sheet exposures, not the daily average. Footnotes to Page 15

17 APPENDIX A. Effective Tax Rate Calculations B. Investment Portfolio C. Non-GAAP Measures and Capital Ratios Pages 18 19-25 26

18 Effective Tax Rate Calculations • Beginning with the first quarter of 2014, we are presenting our operating-basis effective tax rate to reflect the tax-equivalent adjustments associated with our investments in tax-exempt securities, low-income housing and alternative energy • There is no effect on operating-basis revenue, pre-tax income or after-tax earnings; the change affects only our stated operating-basis effective tax rate. This change, which is also incorporated in the comparative prior-period rates shown below, will result in a more informative presentation of the ordinary tax rate generated by State Street’s business activity Operating-basis effective tax rate - prior calculation Q2 '14 Q1 '14 Q2 '13 Income before income tax expense, operating-basis 856$ 640$ 827$ Less aggregate tax-equivalent adjustments 106 101 67 Income before income tax expense, excluding tax-equivalent adjustments, operating-basis 750 539 760 Income tax expense, operating-basis 233 200 248 Less aggregate tax-equivalent adjustments 106 101 67 Income tax expense, after eliminating tax-equivalent adjustments, operating-basis 127 99 181 Effective tax rate, operating-basis, prior calculation 16.9% 18.4% 23.8% Operating-basis effective tax rate - revised calculation Q2 '14 Q1 '14 Q2 '13 Income before income tax expense, operating-basis 856$ 640$ 827$ Income tax expense, operating-basis 233 200 248 Effective tax rate, operating-basis, revised calculation 27.2% 31.2% 30.0%

19 B. Investment Portfolio

20 Portfolio amounts are expressed at book value; book value includes the amortized cost of transferred securities at the time they were transferred. OECD=Organization for Economic Cooperation and Development FFELP=Federal Family Education Loan Program Government / Agency Structured Securities Unsecured Credit Treasuries Agency debentures Agency mortgages Small Business Administration loans OECD governments FFELP student loans Asset-backed securities (ABS) Mortgage-backed securities (MBS) Commercial mortgage-backed securities (CMBS) Covered bonds Corporate bonds Municipals $49 billion $49 billion $19 billion Investment Portfolio Investment Portfolio as of June 30, 2014

21 • Assets selected using rigorous credit process • Diversified by asset class and geography • 89% rated AAA/AA • Constructed to perform well through periods of economic weakness • Unrealized after-tax mark-to-market (MTM) gain of $456M 1 Portfolio amounts are expressed at book value; book value includes the amortized cost of transferred securities at the time they were transferred. 1. At 6/30/14: after-tax unrealized MTM gain/(loss) includes after-tax unrealized gain on securities available for sale of $484 million, after-tax unrealized gain on securities held to maturity of $64 million and after-tax unrealized loss primarily related to securities previously transferred from available for sale to held to maturity of $(92) million. 2. Beginning in August 2011, U.S. Treasuries and Agencies/Agency MBS became split rated – AAA by Moody’s and AA+ by S&P. For dates after August 2011, these securities are classified separately in the table above and not included in either the AAA or AA classifications. 3. Certain securities previously categorized as Not Rated, are now included in the AAA category, based on Moody’s/S&P ratings. $ in billions U.S. Treasuries & Agencies 2 AAA AA A BBB <BBB Not Rated 3 Total Unrealized After-tax MTM Gain / (Loss) ($M) 6/30/14 $30.6 $51.9 $21.8 $7.1 $3.1 $2.0 $0.1 $116.6 $456 26% 44% 19% 6% 3% 2% 0% 100% 12/31/13 $29.6 $51.7 $22.4 $7.7 $3.4 $2.2 $0.1 $117.1 $(213) 26% 44% 19% 6% 3% 2% 0% 100% 12/31/12 $37.6 $46.0 $22.7 $8.5 $3.2 $2.1 $0.1 $120.2 $697 31% 38% 19% 7% 3% 2% 0% 100% 12/31/11 $32.6 $49.9 $15.5 $7.0 $2.5 $2.2 $0.1 $109.8 $(374) 30% 45% 14% 7% 2% 2% 0% 100% 12/31/10 $74.8 $10.6 $5.5 $2.3 $1.9 $0.2 $95.3 $(504) 79% 11% 6% 2% 2% 0% 100% Investment Portfolio Investment Portfolio Detail as of June 30, 2014

22 Ratings 1 Book Value ($B) Book Value (% Total) Unrealized After-tax MTM Gain / (Loss) ($M) 2 Investment UST / AGY AAA AA A BBB <BBB Not Rated Fixed Rate / Floating Rate Government/Agency securities 69% 18% 13% — — — — $12.3 10.6% $(120) 94% / 6% Asset-backed securities — 70% 22% 4% 1% 3% — 52.4 44.9 229 3% / 97% Mortgage-backed securities 92% 3% 1% 1% 1% 2% — 23.9 20.5 65 84% / 16% Commercial mortgage- backed securities 2% 86% 6% 5% — 1% — 6.3 5.4 31 64% / 36% Corporate bonds — — 13% 52% 35% — — 6.2 5.3 101 94% / 6% Covered bonds — 100% — — — — — 3.2 2.8 15 25% / 75% Municipal bonds — 22% 68% 10% — — — 8.1 6.9 118 99% / 1% Clipper tax-exempt bonds/other — 47% 41% 11% — — 1% 4.2 3.6 17 27% / 73% TOTAL PORTFOLIO 26% 44% 19% 6% 3% 2% 0% $116.6 100.0% $456 46% / 54% Portfolio amounts are expressed at book value; book value includes the amortized cost of transferred securities at the time they were transferred. 1. U.S. Treasuries and Agencies/Agency MBS are split rated - AAA by Moody’s and AA+ by S&P. These securities are classified separately in the table above and not included in either the AAA or AA classifications. 2. At 6/30/14: after-tax unrealized MTM gain/(loss) includes after-tax unrealized gain on securities available for sale of $484 million, after-tax unrealized gain on securities held to maturity of $64 million and after-tax unrealized loss primarily related to securities previously transferred from available for sale to held to maturity of $(92) million. Investment Portfolio Holdings by Asset Class as of June 30, 2014

23 Ratings 1 Book Value ($B) Book Value (% Total) Unrealized After-tax MTM Gain / (Loss) ($M) Investment UST / AGY AAA AA A BBB <BBB Not Rated Student Loans — 31% 64% 5% — — — $15.9 30.3% $(11) Credit Cards — 100% — — — — — 9.0 17.2 (1) Auto/Equipment — 99% — — 1% — — 5.5 10.5 6 Non-US RMBS — 83% 6% 5% 2% 4% — 15.5 29.6 198 CLOs — 87% 13% — — — — 5.0 9.5 72 Sub-Prime — 3% 3% 25% 16% 53% — 1.2 2.3 (43) HELOC — — — 100% — — — 0.0 0.0 (1) Other — — — 39% 61% — — 0.3 0.6 9 TOTAL ABS — 70% 22% 4% 1% 3% — $52.4 100.0% $229 Portfolio amounts are expressed at book value; book value includes the amortized cost of transferred securities at the time they were transferred. 1. U.S. Treasuries and Agencies/Agency MBS are split rated - AAA by Moody’s and AA+ by S&P. These securities are classified separately in the table above and not included in either the AAA or AA classifications. RMBS = Residential Mortgage Backed Securities; CLO = Collateralized Loan Obligation; HELOC = Home Equity Line of Credit Investment Portfolio Asset-backed Securities Holdings as of June 30, 2014

24 Ratings 1 Book Value ($B) Book Value (% Total) Unrealized After-tax MTM Gain / (Loss) ($M) Investment UST / AGY AAA AA A BBB <BBB Not Rated Agency MBS 100% — — — — — — $22.0 72.8% $46 Non-Agency MBS — 42% 5% 12% 13% 28% — 1.9 6.3 19 CMBS 2% 86% 6% 5% — 1% — 6.3 20.9 31 TOTAL MBS 73% 20% 2% 2% 1% 2% — $30.2 100.0% $96 Portfolio amounts are expressed at book value; book value includes the amortized cost of transferred securities at the time they were transferred. 1. U.S. Treasuries and Agencies/Agency MBS are split rated - AAA by Moody’s and AA+ by S&P. These securities are classified separately in the table above and not included in either the AAA or AA classifications. Investment Portfolio Mortgage-backed Securities Holdings as of June 30, 2014

25 Non-U.S. Investments: Ratings Non-U.S. Investments: Asset Class 1. Sovereign debt is reflected in the government agency column. 2. Country of collateral used except for corporates, where country of issuer is used. Excludes equity securities of approximately $9.4 million. (1) Investment Portfolio Non-U.S. Investment Summary as of June 30, 2014 June 30, 2014 Book Book Value ($B) Value Average Gov't/ ABS ABS Corporate Covered ($B) Rating Agency (1) FRMBS All Other Bonds Bonds Other United Kingdom 10.2$ AAA -$ 7.3$ 2.3$ 0.4$ 0.2$ -$ Australia 6.4 AA 0.1 3.1 0.9 0.1 0.9 1.3 Netherlands 4.4 AAA - 4.1 - 0.1 0.2 - Germany 2.9 AAA - - 2.9 - - - Canada 2.6 AAA 2.1 - - 0.3 0.2 - France 1.6 AAA - 0.1 0.7 0.2 0.6 - Japan 1.0 AA 1.0 - - - - - Italy 0.7 A - 0.5 - 0.2 - - Korea 0.6 AA 0.6 - - - - - Norway 0.5 AAA - - 0.1 - 0.4 - Finland 0.5 AAA - - 0.1 - 0.4 - Spain 0.2 BB - 0.2 - - - - Irela d 0.1 B - 0.1 - - - - Portugal 0.1 BB - 0.1 - - - - Other 0.6 AA - - 0.1 0.2 0.3 - Non-U.S. Investments (2) 32.4$ 3.8$ 15.5$ 7.1$ 1.5$ 3.2$ 1.3$ U.S. Investments 84.2 Total Portfolio 116.6$ AAA 80.9% AA 9.1% A 5.2% BBB 2.6% BB 1.5% <BB 0.7% Gov't/Agency, 11.7% ABS: FRMBS, 47.9% ABS: All O her, 21.9% Corp, 4.6% Covered, 9.9% Other, 4.0%

26 C. Non-GAAP Measures and Capital Ratios Refer to the addendum linked to this presentation for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information. To access the addendum go to www.statestreet.com/stockholder and click on “Filings & Reports – Financial Trends”.

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