Fourth-quarter 2015
operating-basis(a) EPS was $1.21, on revenue of $2.6
billion; Full-year 2015 operating-basis EPS was $4.89 on revenue of
$10.6 billion
In announcing today's financial results, Joseph L. Hooley, State
Street's chairman and chief executive officer said, "Our
performance in the fourth quarter reflects the continued challenges
presented throughout 2015, including challenging global equity
markets, particularly in emerging markets, persistent low interest
rates, the strengthening U.S. dollar, and heightened regulatory
expectations. We were successful at managing expenses in the
quarter in light of the pressure on revenues. In addition, we grew
fee revenue in 2015 and achieved strong new business results as
evidenced by new asset servicing commitments of approximately $300
billion this quarter and a total of $800 billion in 2015."
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Hooley continued, “We expect our multi-year transformation
program and targeted staff reductions that we announced with our
third-quarter results to generate approximately $550 million in
annualized pre-tax net run-rate expense savings by year-end 2020,
including approximately $75 million in 2016. We intend to report on
our progress to our investors and provide more detail at our annual
investor day next month."
Hooley concluded, "Our efforts to optimize our capital position
have resulted in lower deposits and stronger capital ratios
compared to the levels at the end of 2014. Furthermore, returning
capital to our shareholders remains a top priority. During the
fourth quarter of 2015, we purchased approximately $350 million of
our common stock and at quarter-end had approximately $780 million
remaining on our March 2015 $1.8 billion common stock purchase
program."
Fourth-Quarter 2015 GAAP-Basis
Results:
(Table presents summary results, dollars in millions, except
per share amounts, or where otherwise noted)
4Q15
3Q15
% Increase(Decrease)
4Q14
% Increase(Decrease)
Total fee revenue(1)
$ 2,044 $ 2,103 (2.8 )% $ 2,051
(0.3 )% Net interest revenue
494 513 (3.7 ) 574 (13.9 )
Total revenue(1)
2,538 2,614 (2.9 ) 2,625 (3.3 ) Provision
for loan losses
1 5 nm 4 nm Total expenses
1,857
1,962 (5.4 ) 2,057 (9.7 ) Net income available to common
shareholders(1)
547 539 1.5 469 16.6
Earnings Per
common share(1)(2)
: Diluted
1.34 1.31 2.3 1.11
20.7
Financial ratios(1): Return on average common
equity
11.6 % 11.3 % 30 bps 9.4 % 220 bps
(1) Amounts for 4Q14 and 3Q15 have been revised to reflect
adjustments related to certain expenses billed to our asset
servicing clients as more fully described within the addendum
included with this news release.
(2) Fourth-quarter 2015 included a net after-tax charge of $9
million or $0.02 per share, to increase our legal accruals.
Fourth-quarter 2014 results include a net after-tax charge of $92
million, or $0.22 per share, to increase our legal accrual
associated with indirect foreign exchange matters. No additional
amounts were accrued for this matter in the third and fourth
quarters of 2015. Fourth-quarter 2014 results also include a net
after-tax restructuring charge of $27 million, or $0.06 per share,
related to the completion of the Business Operations and
Information Technology Transformation program.
nm Not meaningful
Net income available to common shareholders of $547 million, or
$1.34 earnings per common share, for the fourth quarter of 2015
compared with $539 million, or $1.31 earnings per common share, for
the third quarter of 2015, and $469 million, or $1.11 earnings per
common share, for the fourth quarter of 2014.
Fourth quarter of 2015 GAAP-basis results included the following
notable items:
- $81.5 million pre-tax gain, or $49
million after-tax, related to the final payoff of a commercial real
estate loan acquired as a result of the Lehman Brothers
bankruptcy.
- A pre-tax charge of approximately $17
million that reflects our intention to pay clients interest on the
amounts to be reimbursed in connection with our previously
disclosed review of amounts we invoiced clients for certain
expenses during an 18-year period. In addition, the cumulative
amount to be reimbursed over the review period, totaling
approximately $240 million, has been reflected as a liability in
our consolidated balance sheet, of which $223 million, or $145
million after-tax, relates to periods prior to the 2015 fiscal year
and is reflected in the beginning retained earnings balance of our
consolidated statement of shareholders’ equity as of December 31,
2014. All prior period financial information within this news
release and addendum has been revised to reflect the impact of the
reimbursement on each prior period presented. See the addendum
included with this news release for further information regarding
the impact of the reimbursement on prior periods, including a
reconciliation of the previously reported financial results to the
revised financial results presented in this news release and
addendum.
Full-Year 2015 GAAP-Basis
Results:
(Table presents summary results, dollars in millions, except
per share amounts, or where otherwise noted)
2015
2014
% Increase(Decrease)
Total fee revenue(1)
$ 8,278 $ 8,010 3.3 % Net
interest revenue
2,088 2,260 (7.6 ) Total revenue(1)
10,360 10,274 0.8 Provision for loan losses
12 10
20.0 Total expenses
8,050 7,827 2.8 Net income available to
common shareholders(1)
1,848 1,958 (5.6 )
Earnings
Per common share(1)(2)
: Diluted
4.47 4.53 (1.3 )
Financial ratios(1)
: Return on average common
equity
9.8 % 9.8 % — bps
(1) Amounts for 2014 have been revised to reflect adjustments
related to certain expenses billed to our asset servicing clients
as more fully described within the addendum included with this news
release.
(2) Full-year 2015 and full-year 2014 results include net
after-tax charges of $315 million, or $0.76 per share, and $139
million, or $0.34 per share, respectively, related to legal
accruals associated with indirect foreign exchange and other
matters.
Net income available to common shareholders of $1,848 million,
or $4.47 earnings per common share, for the full-year 2015 compared
with $1,958 million, or $4.53 earnings per common share, for the
full-year 2014.
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. Non-GAAP information is not a substitute for, and is not
superior to, information presented on a GAAP basis. 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 following table reconciles select fourth-quarter 2015
operating-basis financial information to financial information
prepared and reported in conformity with GAAP for the same period.
The addendum included with this news release includes additional
reconciliations.
Fourth-Quarter 2015 Selected
Operating-Basis (Non-GAAP)
Reconciliations(a):
(In millions, except per share amounts) Income Before Income
Tax Expense Net Income Available to Common Shareholders Earnings
Per Common Share GAAP basis
$ 680 $ 547
$ 1.34 Tax-equivalent adjustments Tax-advantaged
investments (processing fees and other revenue)
113
Tax-exempt investment securities (net interest revenue)
42
Total
155 Non-operating adjustments Paydown of CRE
loan (processing fee and other revenue)
(82 )
(49 ) (.12 ) Discount accretion
associated with former conduit securities (net interest revenue)
(23 ) (14 ) (.03 )
Severance costs associated with staffing realignment (compensation
and employee benefits expenses)
(1 ) —
— Provisions for legal contingencies (other expenses)
15 9 .02 Expense billing matter (other
expenses)
17 12 .03 Acquisition &
Restructuring costs (expenses)
6 4 .01 Effect
on income tax of non-operating adjustments
—
(15 ) (.04 ) Total
(68 )
(53 ) (.13 ) Operating basis
$
767 $ 494 $ 1.21
Fourth-Quarter 2015 Operating-Basis
(Non-GAAP) Results(a):
(Table presents summary results, dollars in millions, except
per share amounts, or where otherwise noted)
4Q15(2)
3Q15(2)
% Increase(Decrease)
4Q14(2)
% Increase(Decrease)
Operating-Basis Results: Total fee revenue(1)
$
2,075 $ 2,115 (1.9 )% $ 2,132 (2.7 )% Net interest
revenue(3)
513 529 (3.0 ) 587 (12.6 ) Total revenue(1)
2,588 2,642 (2.0 ) 2,719 (4.8 ) Total expenses
1,820
1,877 (3.0 ) 1,880 (3.2 ) Net income available to common
shareholders(1)
494 476 3.8 578 (14.5 )
Earnings
Per common share(1): Diluted
1.21 1.15 5.2
1.36 (11.0 )
Financial ratios(1):
Return on average common equity
10.5 % 10.0 % 50 bps
11.6 % (110 ) bps
(1) Amounts for 4Q14 and 3Q15 have been revised to reflect
adjustments related to certain expenses billed to our asset
servicing clients as more fully described within the addendum
included with this news release.
(2) Operating 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.
(3) Operating basis net interest revenue excluded discount
accretion on former conduit securities of $23 million, $27 million
and $31 million for the fourth quarter of 2015, the third quarter
of 2015, and the fourth quarter of 2014, respectively. Operating
basis net interest revenue for all quarters is presented on a fully
taxable-equivalent basis.
Full-Year 2015 Operating-Basis
(Non-GAAP) Results(a):
(Table presents summary results, dollars in millions, except
per share amounts, or where otherwise noted)
2015(2)
2014(2)
% Increase(Decrease)
Operating-Basis Results: Total fee revenue(1)
$
8,472 $ 8,298 2.1 % Net interest revenue(3)
2,163
2,314 (6.5 ) Total revenue(1)
10,629 10,616 0.1 Total
expenses
7,520 7,423 1.3 Net income available to common
shareholders(1)
2,022 2,184 (7.4 )
Earnings Per
common share(1)
: Diluted
4.89 5.05 (3.2 )
Financial ratios(1)
: Return on average common equity
10.7 % 10.9 % (20 ) bps
(1) Amounts for 2014 have been revised to reflect adjustments
related to certain expenses billed to our asset servicing clients
as more fully described within the addendum included with this news
release.
(2) Operating 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.
(3) Operating basis net interest revenue excluded discount
accretion on former conduit securities of $98 million and $119
million for the full-year 2015 and 2014, respectively.
Operating-basis net interest revenue for all years is presented on
a fully taxable-equivalent basis.
Fourth-Quarter 2015 and Full-Year 2015
Highlights(a):
- Currency impact: Compared to the
fourth quarter of 2014, the strengthening of the U.S. dollar
reduced our fee revenue outside of the U.S. by $53 million, but a
corresponding reduction in expenses largely offset the currency
impact on our bottom line.
- New business(b):
New asset servicing mandates during the fourth quarter of 2015 and
full-year totaled approximately $300 billion and $800 billion,
respectively. In our asset management business, we experienced net
outflows of $19 billion and $151 billion during fourth quarter of
2015 and full-year 2015, respectively.
- Expenses: The growth rate of
operating-basis total fee revenue was above the growth rate of
operating-basis expenses by 52 basis points during the fourth
quarter of 2015 relative to the fourth quarter of 2014. The growth
rate of operating-basis total fee revenue exceeded the growth rate
of operating-basis expenses by 79 basis points during full-year
2015 relative to full-year 2014.
- State Street Beacon, our multi-year
transformation program(c): As a result of executing against the
next phase of our multi-year transformation program, which we refer
to as State Street Beacon, we expect to deliver cost efficiencies
and further digitize our interfaces with clients in order to
deliver more value. We expect State Street Beacon, which includes
the targeted staff reductions that we announced with our third
quarter results, to generate approximately $550 million in
estimated annualized pre-tax expense savings over the next 5 years,
including approximately $75 million in 2016. The full effect of the
savings generated each year will be felt the following year. To
implement State Street Beacon, we expect to incur aggregate pre-tax
restructuring costs of approximately $300 million to $400 million
over the five-year period ending December 31, 2020.
- Capital(d): Our
common equity tier 1 ratios as of December 31, 2015 were 12.5%
and 12.9%, calculated under the advanced approaches and
standardized approach, respectively, in conformity with the Basel
III final rule. On a fully phased-in basis, our estimated pro forma
Basel III common equity tier 1 ratios as of December 31, 2015
were 11.6% and 12.0%, calculated under the advanced approaches and
standardized approach, respectively, in conformity with the Basel
III final rule.
- Return of capital to
shareholders(e): We purchased approximately $350
million of our common stock at an average price of $70.44 per
share, and have approximately $780 million remaining on our March
2015 common stock purchase program which runs through June 30,
2016. In addition, we declared a quarterly common stock dividend of
$0.34 per share in the fourth quarter of 2015.
(a) Operating 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.
(b) New business in assets to be serviced is reflected in our
assets under custody and administration after we begin servicing
the assets, and 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 new asset servicing and asset management
mandates is reflected in our assets under custody and
administration and assets under management, as of December 31,
2015. 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.
(c) Estimated pre-tax expense savings and operating margin
improvement relate only to State Street Beacon, our multi-year
transformation program, include the effects of the targeted staff
reductions announced as part of our 3Q15 financial results, and are
based on projected improvement from our full-year 2015
operating-basis expenses, all else equal. Actual expenses may
increase or decrease in the future due to other factors.
(d) Our estimated pro forma fully phased-in Basel III common
equity tier 1 ratios calculated under the Basel III advanced
approaches and standardized approach (in each case, fully phased in
as of January 1, 2019, as per Basel III phase-in requirements for
capital) are preliminary estimates based on our interpretations of
the Basel III final rule as applied to our current businesses and
operations as currently conducted. Refer to the “Capital” section
of this news release for important information about the Basel III
final rule, our calculations of our common equity tier 1 ratios
thereunder, factors that could influence State Street's
calculations of its common equity tier 1 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.
(e) Stock purchases may be made using various types of
mechanisms, including open market purchases or transactions off
market, and may be made under Rule 10b5-1 trading programs. The
timing of stock purchases, types of transactions and number of
shares purchased will depend on several factors, including, market
conditions and our capital position, our financial performance and
investment opportunities. The common stock purchase program does
not have specific price targets and may be suspended at any time.
Our Street’s common stock and other stock dividends, including the
declaration, timing and amount thereof, remain subject to
consideration and approval by its Board of Directors at the
relevant times.
Selected Financial Information and Ratios
The tables below provide 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 (Table presents summary
results, dollars in millions, except per share amounts, or where
otherwise noted)
4Q15(2) 3Q15(2)
% Increase(Decrease)
4Q14(2)
% Increase(Decrease)
Total revenue(1)
$ 2,588 $ 2,642 (2.0 )% $ 2,719 (4.8
)% Total expenses
1,820 1,877 (3.0 ) 1,880 (3.2 ) Net income
available to common shareholders(1)
494 476 3.8 578 (14.5 )
Earnings per common share(1)
1.21 1.15 5.2 1.36 (11.0 )
Return on average common equity(1)
10.5 % 10.0 % 50
bps 11.6 % (110 ) bps Total assets as of period-end
$
245,192 $ 247,274 (0.8 )% $ 274,119 (10.6 )% Quarterly
average total assets
228,201 251,046 (9.1 ) 254,439 (10.3 )
Net interest margin
1.01 % 0.95 % 6 bps 1.04 % (3 )
bps Net unrealized gains on investment securities, after-tax, as of
period-end(3)
$ 58 $ 411 $ 487
(1) Amounts for 4Q14 and 3Q15 have been revised to reflect
adjustments related to certain expenses billed to our asset
servicing clients as more fully described within the addendum
included with this news release.
(2) Presented on an operating basis, a non-GAAP presentation.
Refer to the table above reconciling select fourth-quarter
operating-basis financial information and the addendum included
with this news release for explanations of our non-GAAP financial
measures and for reconciliations of our operating-basis financial
information.
(3) Includes net unrealized gains on investment securities,
after tax, for securities classified as available for sale and held
to maturity.
Financial
Highlights (Table presents summary results, dollars in
millions, except per share amounts, or where otherwise noted)
2015(2) 2014(2)
% Increase(Decrease)
Total revenue(1)
$ 10,629 $ 10,616 0.1 % Total
expenses
7,520 7,423 1.3 Net income available to common
shareholders(1)
2,022 2,184 (7.4 ) Earnings per common
share(1)
4.89 5.05 (3.2 ) Return on average common equity(1)
10.7 % 10.9 % (20 ) bps Total assets as of period-end
$ 245,192 $ 274,119 (10.6 )% Net interest margin
0.98 % 1.11 % (13 ) bps
(1) Amounts for 2014 have been revised to reflect adjustments
related to certain expenses billed to our asset servicing clients
as more fully described within the addendum included with this news
release.
(2) Presented 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.
(3) Includes net unrealized gains (losses) on investment
securities, after tax, for securities classified as available for
sale and held to maturity.
Assets Under Custody and Administration and Assets Under
Management (Dollars in billions)
4Q15 3Q15
% Increase(Decrease)
4Q14
% Increase(Decrease)
Assets under custody and administration(1)(2)
$
27,508 $ 27,265 0.9 % $ 28,188 (2.4 )% Assets under
management(2)
2,245 2,203 1.9 2,448 (8.3 ) Market
Indices(3): S&P 500® daily average
2,052 2,027 1.2 2,009
2.1 MSCI EAFE® daily average
1,732 1,785 (3.0 ) 1,795 (3.5 )
S&P 500® average of month-end
2,068 1,999 3.5 2,048 1.0
MSCI EAFE® average of month-end
1,743 1,754 (0.6 ) 1,811
(3.8 ) Average Foreign Exchange Rate (Euro vs. USD)
1.095
1.112 (1.5 ) 1.248 (12.3 ) Average Foreign Exchange Rate (GBP vs.
USD)
1.517 1.549 (2.1 ) 1.582 (4.1 )
(1) Includes assets under custody of $21,258 billion, $20,947
billion and $21,656 billion, as of December 31, 2015,
September 30, 2015 and December 31, 2014,
respectively.
(2) As of period-end.
(3) The index names listed in the table are service marks of
their respective owners.
The following tables present fourth-quarter 2015 and
year-to-date activity in assets under management, by product
category.
Assets Under Management
(In billions) Equity Fixed-Income
Cash(2)
Multi-Asset-ClassSolutions
AlternativeInvestments(3)
Total Balance as of September 30, 2015 $ 1,266 $ 316 $ 380 $
111 $ 130 $ 2,203 Long-term institutional inflows(1)
59
14 — 9 3 85 Long-term
institutional outflows(1)
(72 ) (22 )
— (7 ) (3 ) (104
) Long-term institutional flows, net
(13 )
(8 ) — 2 — (19 )
ETF flows, net
10 2 (1 ) —
(1 ) 10 Cash fund flows, net
—
— (10 ) — —
(10 ) Total flows, net
(3 ) (6
) (11 ) 2 (1 ) (19
) Market appreciation
65 4 — (10
) 7 66 Foreign exchange impact
(2
) (2 ) (1 ) —
— (5 ) Total market/foreign exchange
impact
63 2 (1 )
(10 ) 7 61 Balance as of
December 31, 2015
$ 1,326 $ 312
$ 368 $ 103
$ 136 $ 2,245
(In billions) Equity
Fixed-Income
Cash(2)
Multi-Asset-ClassSolutions
AlternativeInvestments(3)
Total Balance as of December 31, 2014 $ 1,475 $ 319 $ 399 $
127 $ 128 $ 2,448 Long-term institutional inflows(1)
277
62 — 51 33 423 Long-term
institutional outflows(1)
(363 ) (70 )
— (59 ) (31 ) (523
) Long-term institutional flows, net
(86 )
(8 ) — (8 ) 2 (100
) ETF flows, net
(29 ) 5 1
— (1 ) (24 ) Cash fund flows,
net
— — (27 ) —
— (27 ) Total flows, net
(115 ) (3 ) (26 )
(8 ) 1 (151 ) Market
appreciation(4)
(13 ) 3 — (12
) 16 (6 ) Foreign exchange impact
(21 ) (7 ) (5 ) (4
) (9 ) (46 ) Total
market/foreign exchange impact
(34 ) (4
) (5 ) (16 ) 7
(52 ) Balance as of December 31, 2015
$
1,326 $ 312 $ 368
$ 103 $ 136
$ 2,245
(1) Amounts represent long-term portfolios, excluding ETFs.
(2) Includes both floating- and constant-net-asset-value
portfolios held in commingled structures or separate accounts.
(3) Includes real estate investment trusts, currency and
commodities, including SPDR® Gold Fund, for which State Street is
not the investment manager, but acts as distribution agent.
(4) Includes impact of the sale of Sectoral Asset Management
Inc. in the third quarter of 2015.
Revenue(a)
The following tables provide the
components of our operating-basis (non-GAAP) revenue(a) forthe
periods noted:
(Dollars in millions)
4Q15(2) 3Q15(2)
% Increase(Decrease)
4Q14(2)
% Increase(Decrease)
Servicing fees(1)
$ 1,277 $ 1,289 (0.9 )% $ 1,296
(1.5 )% Management fees
282 287 (1.7 ) 299 (5.7 ) Trading
services revenue: Foreign exchange trading
143 177 (19.2 )
168 (14.9 ) Brokerage and other fees(3)
104 117
(11.1 ) 125 (16.8 ) Total trading services revenue
247 294 (16.0 ) 293 (15.7 ) Securities finance revenue
127 113 12.4 106 19.8 Processing fees and other
revenue(3)(4)
142 132 7.6 138
2.9 Total fee revenue(1)(3)(4)
2,075 2,115 (1.9 )
2,132 (2.7 ) Net interest revenue(5)
513 529 (3.0 ) 587
(12.6 ) Gains (losses) related to investment securities, net
— (2 ) nm — nm
Total Operating-Basis
Revenue(1) $ 2,588 $ 2,642
(2.0 )% $ 2,719 (4.8 )%
(1) Amounts for 4Q14 and 3Q15 have been revised to reflect
adjustments related to certain expenses billed to our asset
servicing clients as more fully described within the addendum
included with this news release.
(2) Presented 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.
(3) Brokerage and other fees for the fourth quarter of 2014
reflect the reclassification of revenue associated with currency
management from processing fees and other revenue, and have been
adjusted for comparative purposes.
(4) Processing fees and other revenue for the fourth quarter of
2015, third quarter of 2015 and fourth quarter of 2014, presented
in the table, reflect tax-equivalent increases of $113 million, $95
million and $81 million, respectively, related to tax credits
generated by tax-advantaged investments. GAAP-basis processing fees
and other revenue for these periods was $111 million, $120 million
and $57 million, respectively.
(5) Net interest revenue for the fourth quarter of 2015, third
quarter of 2015 and fourth quarter of 2014, presented in the table,
reflect tax-equivalent increases of $42 million, $43 million and
$44 million, respectively, and excluded conduit-related discount
accretion of $23 million, $27 million and $31 million,
respectively. GAAP-basis net interest revenue for these periods was
$494 million, $513 million and $574 million, respectively.
nm Not meaningful.
(Dollars in millions)
2015(2) 2014(2)
% Increase(Decrease)
Servicing fees(1)
$ 5,153 $ 5,108 0.9 % Management
fees
1,174 1,207 (2.7 ) Trading services revenue: Foreign
exchange trading
690 607 13.7 Brokerage and other fees(3)
456 477 (4.4 ) Total trading services revenue
1,146 1,084 5.7 Securities finance revenue
496 437
13.5 Processing fees and other revenue(3)(4)
503 462
8.9 Total fee revenue(1)(3)(4)
8,472 8,298 2.1
Net interest revenue(5)
2,163 2,314 (6.5 ) Gains (losses)
related to investment securities, net
(6 ) 4
nm
Total Operating-Basis Revenue(1) $
10,629 $ 10,616 0.1 %
(1) Amounts for 2014 have been revised to reflect adjustments
related to certain expenses billed to our asset servicing clients
as more fully described within the addendum included with this news
release.
(2) Presented 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.
(3) Brokerage and other fees for the full-year of 2014 reflect
the reclassification of revenue associated with currency management
from processing fees and other revenue, and have been adjusted for
comparative purposes.
(4) Processing fees and other revenue for the full-year of 2015
and full-year of 2014, presented in the table, reflect
tax-equivalent increases of $359 million and $288 million,
respectively, related to tax credits generated by tax-advantaged
investments. GAAP-basis processing fees and other revenue for these
periods was $309 million and $174 million, respectively.
(5) Net interest revenue for the full-year of 2015 and full-year
of 2014, presented in the table, reflect tax-equivalent increases
of $173 million and $173 million, respectively, and excluded
conduit-related discount accretion of $98 million and $119 million,
respectively. GAAP-basis net interest revenue for these periods was
$2,088 million and $2,260 million, respectively.
nm Not meaningful.
Servicing fees of $1,277 million in the fourth quarter of
2015 decreased 0.9% and 1.5% from the third quarter of 2015 and the
fourth quarter of 2014, respectively. The decrease from both
periods primarily reflects the impact of the stronger U.S. dollar
and lower international equity markets, partially offset by net new
business.
Management fees of $282 million in the fourth quarter of
2015 decreased 1.7% from the third quarter of 2015. Compared to the
fourth quarter of 2014, management fees decreased 5.7%, primarily
due to the impact of the stronger U.S. dollar, net outflows, and
lower international equity markets.
Foreign exchange trading revenue of $143 million in the
fourth quarter of 2015 decreased 19.2% and 14.9% from the third
quarter of 2015 and the fourth quarter of 2014, respectively. The
decrease from both periods reflects lower currency volatility and
client-related volumes. Brokerage and other fees of $104
million in the fourth quarter of 2015 decreased 11.1% and 16.8%
from the third quarter of 2015 and the fourth quarter of 2014,
respectively. The decrease from both periods is primarily due to
lower transition management revenue and electronic foreign exchange
trading revenue.
Securities finance revenue of $127 million in the fourth
quarter of 2015 increased 12.4% from the third quarter of 2015,
primarily due to higher spreads. Compared to the fourth quarter of
2014, securities finance revenue increased 19.8%, primarily due to
new business from enhanced custody, our principal securities
lending service for custody clients.
Processing fees and other revenue of $142 million in the
fourth quarter of 2015 increased 7.6% compared to the third quarter
of 2015, primarily due to higher revenue associated with
tax-advantaged investments. Compared to the fourth quarter of 2014,
processing fees and other revenue increased 2.9%. See notes 2, 3
and 4 to the table above for a description of the presentation of
operating-basis processing fees and other revenue.
Net interest revenue of $513 million in the fourth
quarter of 2015 decreased 3.0% and 12.6% compared to the third
quarter of 2015 and the fourth quarter of 2014, respectively. The
decrease from both periods is primarily due to lower deposit levels
and the ongoing repositioning of the investment portfolio.
Operating-basis net interest revenue excludes discount accretion
on former conduit securities and is presented on a fully
taxable-equivalent basis. See notes 2 and 5 to the table above for
a description of the presentation of operating-basis net interest
revenue. The Company expects to record aggregate pre-tax
conduit-related accretion of approximately $209 million in interest
revenue from January 1, 2016 through the remaining lives of the
former conduit securities. This expectation is based on numerous
assumptions, including holding the securities to maturity,
anticipated prepayment speeds and credit quality.
Net interest margin, including balances held at the
Federal Reserve and other central banks, increased to 101 basis
points in the fourth quarter of 2015 from 95 basis points in the
third quarter of 2015 and decreased from 104 basis points in the
fourth quarter of 2014. Refer to the addendum included with this
news release for reconciliations of our operating-basis net
interest margin.
Expenses(a)
The following tables provide the
components of our operating-basis (non-GAAP) expenses(1) for the
periods noted:
(Dollars in millions)
4Q15(1) 3Q15(1)
% Increase(Decrease)
4Q14(1)
% Increase(Decrease)
Compensation and employee benefits(2)
$ 940 $ 976
(3.7 )% $ 962 (2.3 )% Information systems and communications
261 265 (1.5 ) 246 6.1 Transaction processing services
194 201 (3.5 ) 201 (3.5 ) Occupancy
112 110 1.8 113
(0.9 ) Other(3)
313 325 (3.7 ) 358 (12.6 )
Total
Operating-Basis Expenses $ 1,820 $ 1,877
(3.0 )% $ 1,880 (3.2 )%
(1) Presented 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.
(2) Compensation and employee benefits expenses for the fourth
quarter of 2015, third quarter of 2015 and fourth quarter of 2014
presented in the table, excluded severance costs of $(1) million,
$75 million and $10 million, respectively, related to staffing
realignment. GAAP-basis compensation and employee benefits expenses
for the fourth quarter of 2015, third quarter of 2015 and fourth
quarter of 2014 were $939 million, $1,051 million and $972 million,
respectively.
(3) GAAP-basis other expenses for the fourth quarter of 2015,
third quarter of 2015 and fourth quarter of 2014 were $345 million,
$325 million and $473 million, respectively.
(Dollars in millions)
2015(1) 2014(1)
% Increase
(Decrease)
Compensation and employee benefits(2)
$ 3,988 $ 3,976
0.3 % Information systems and communications
1,022 976 4.7
Transaction processing services
793 784 1.1 Occupancy
444 461 (3.7 ) Other(3)
1,273 1,226 3.8
Total Operating-Basis Expenses $ 7,520
$ 7,423 1.3 %
1) Presented 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.
(2) Compensation and employee benefits expenses for the
full-year of 2015 and full-year of 2014 presented in the table,
excluded severance costs of $73 million and $84 million,
respectively, related to staffing realignment. GAAP-basis
compensation and employee benefits expenses for the full-year of
2015 and full-year of 2014 were $4,061 million and $4,060 million,
respectively.
(3) GAAP-basis other expenses for the full-year of 2015 and
full-year of 2014 were $1,705 million and $1,413 million,
respectively.
Compensation and employee benefits expenses of $940
million in the fourth quarter of 2015 decreased 3.7% from the third
quarter of 2015, primarily due to lower incentive compensation,
partially offset by increased costs to support regulatory
initiatives. Compared to the fourth quarter of 2014, compensation
and employee benefits expenses decreased 2.3%, due to lower
incentive compensation and the benefit of the stronger U.S. dollar,
partially offset by increased costs to support new business and
regulatory initiatives.
Information systems and communications expenses of $261
million in the fourth quarter of 2015 decreased 1.5% from the third
quarter of 2015. Compared to the fourth quarter of 2014,
information systems and communications expenses increased 6.1%,
primarily due to increased costs to support new business and
additional data center capacity.
Transaction processing services expenses of $194
million decreased slightly from both third quarter of 2015 and
fourth quarter of 2014.
Occupancy expenses of $112 million in the fourth quarter
of 2015 increased 1.8% from the third quarter of 2015 and decreased
0.9% from the fourth quarter of 2014.
Other expenses of $313 million in the fourth quarter of
2015 decreased 3.7% from the third quarter of 2015, primarily due
to lower professional services fees, offset by a $12 million
settlement with the Securities and Exchange Commisson. Compared to
the fourth quarter of 2014, other expenses decreased 12.6%,
primarily due to expenses in the fourth quarter of 2014 associated
with our withdrawal from derivatives clearing activities and the
recognition of an impairment associated with an intangible asset as
well as lower securities processing costs in the fourth quarter of
2015. See notes 1 and 3 to the table above for a description of
GAAP-basis other expenses for the relevant periods.
Income Taxes
Our fourth-quarter 2015 GAAP-basis effective tax rate was 15.1%
compared to 10.5% in the third quarter of 2015 and 13.5% in the
fourth quarter of 2014. The third quarter of 2015 included the
non-operating benefit from the reduction of an Italian deferred tax
liability. Our operating-basis effective tax rates for the fourth
quarter of 2015, third quarter of 2015 and fourth quarter of 2014
were 31.8%, 32.0% and 28.6%, respectively.
Capital
The following table presents our regulatory capital ratios as of
December 31, 2015 and September 30, 2015. The lower of
our capital ratios calculated under the Basel III advanced
approaches and under the Basel III standardized approach are
applied in the assessment of our capital adequacy for regulatory
purposes. Unless otherwise noted, 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.
December
31, 2015
Basel
IIIAdvancedApproaches(1)(2)
Basel
IIIStandardizedApproach(1)
Basel III FullyPhased-In
AdvancedApproaches
(Estimated)Pro-Forma(2)(3)
Basel III
FullyPhased-InStandardizedApproach(Estimated)Pro-Forma(3)
Common equity tier 1 ratio
12.5 % 12.9
% 11.6 % 12.0 % Tier 1 capital ratio
15.3 15.9
14.3 14.8 Total capital ratio
17.4 18.1 16.5 17.2
Tier 1 leverage ratio
6.9 6.9 6.4 6.4
(1) Ratios are preliminary estimates and are calculated in
conformity with the advanced approaches and standardized approach
provisions of the Basel III final rule, as the case may be.
(2) The advanced approaches-based ratios (actual and estimated)
presented in this presentation 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, individually or collectively,
precisely 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.
(3) Estimated pro-forma fully phased-in ratios as of December
31, 2015 (fully phased in as of January 1, 2019, as per Basel III
phase-in requirements for capital) reflect capital calculated under
the Basel III final rule and total risk-weighted assets calculated
in conformity with the advanced approaches and standardized
approach as the case may be, each on a fully phased-in basis under
the Basel III final rule, based on our interpretations of the Basel
III final rule as of January 27, 2016 and as applied to our
businesses and operations as of December 31, 2015. Refer to the
addendum included with this news release for reconciliations of
these estimated pro-forma fully phased-in ratios to our capital
ratios calculated under the currently applicable regulatory
requirements.
September 30, 2015
Basel
IIIAdvancedApproaches(1)(2)
Basel
IIIStandardizedApproach(1)
Basel III
FullyPhased-InAdvancedApproaches(Estimated)
Pro-Forma(2)(3)
Basel III
FullyPhased-InStandardizedApproach(Estimated)Pro-Forma(3)
Common equity tier 1 ratio 12.0 % 11.8 % 11.2 % 11.1 % Tier 1
capital ratio 14.7 14.5 13.8 13.6 Total capital ratio 16.8 16.6
16.0 15.9 Tier 1 leverage ratio 6.3 6.3 5.9 5.9
(1) Amounts for September 30, 2015 have been revised to reflect
adjustments related to certain expenses billed to our asset
servicing clients as more fully described in the addendum included
within this news release.
(2) The advanced approaches-based ratios (actual and estimated)
presented in this presentation 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, individually or collectively,
precisely 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.
(3) Estimated pro-forma fully phased-in ratios as of September
30, 2015 (fully phased in as of January 1, 2019, as per Basel III
phase-in requirements for capital) are preliminary estimates and
reflect capital calculated under the Basel III final rule and total
risk-weighted assets calculated in conformity with the advanced
approaches and standardized approach as the case may be, each on a
fully phased-in basis under the Basel III final rule, based on our
interpretations of the Basel III final rule as of October 23, 2015
and as applied to our businesses and operations as of September 30,
2015. Refer to the addendum included with this news release for
reconciliations of these estimated pro-forma fully phased-in ratios
to our capital ratios calculated under the currently applicable
regulatory requirements.
In addition, the following table presents the calculation of
State Street's and State Street Bank's supplementary leverage ratio
(SLR) under final U.S. banking regulator rules adopted in 2014 as
of December 31, 2015 and September 30, 3015
State Street State Street Bank As of December 31, 2015(Dollars in
millions)(1) Transitional SLR
Fully Phased-InSLR(2)
Transitional SLR
Fully Phased-InSLR(2)
Tier 1 Capital $ 15,264 A
$
14,188 14,647 13,869 Total assets for
SLR
246,838 B 246,293 242,200
241,700 Supplementary Leverage Ratio 6.2
% A/B 5.8 % 6.0 %
5.7 %
State Street State Street Bank As of September 30,
2015(Dollars in millions)(3) Transitional SLR
Fully Phased-InSLR(2)
Transitional SLR
Fully Phased-InSLR(2)
Tier 1 Capital $ 15,361 C $ 14,363 14,863 14,162
Total assets for SLR 270,762 D 270,274 265,797 265,354
Supplementary Leverage Ratio 5.7 % C/D 5.3 % 5.6 % 5.3 %
1) Ratios are preliminary estimates.
(2) Estimated pro-forma fully phased-in SLRs as of December 31,
2015 and September 30, 2015 (fully phased-in as of January 1,2018,
as per the phase-in requirements of the SLR final rule) are
preliminary estimates, calculated based on our interpretations of
the SLR final rule as of January 27, 2016 and October 23, 2015,
respectively, and as applied to our businesses and operations as of
December 31, 2015 and September 30, 2015, respectively. Refer to
the addendum included with this news release for reconciliations of
these estimated pro-forma fully phased-in SLRs to our SLRs under
currently applicable regulatory requirements.
(3) Amounts for September 30, 2015 have been revised to reflect
adjustments related to certain expenses billed to our asset
servicing clients as more fully described in the addendum included
within this news release.
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.
Investor Conference Call and Quarterly
Website Disclosures
State Street will webcast an investor conference call today,
Wednesday, January 27, 2016, 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 #
15333966.
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 # 15333966.
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 intends to publish updates to its public disclosure
regarding regulatory capital, as required by the Basel III final
rule, on a quarterly basis on its website at
www.statestreet.com/stockholder, under "Filings & Reports."
Those updates will be published each quarter, during the period
beginning after State Street's public announcement of its quarterly
results of operations and ending on or prior to the due date under
applicable bank regulatory requirements (i.e., ordinarily, ending
no later than 60 days following year-end or 45 days following each
other quarter-end, as applicable). For the fourth quarter of 2015,
State Street expects to publish its updates during the period
beginning today and ending on or about February 19, 2016.
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 trillion in assets under custody and
administration and $2 trillion* in assets under management as of
December 31, 2015, State Street operates globally in more than
100 geographic markets and employs 32,356 worldwide. For more
information, visit State Street's website at
www.statestreet.com.
* Assets under management include the assets of the SPDR® Gold
ETF (approximately $22 billion as of December 31, 2015), 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(including without limitation regarding
expected savings associated with our State Street Beacon multi-year
transformation program), 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 “outlook,” “expect,”
“objective,” “intend,” “plan,” “forecast,” “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
January 27, 2016.
Important factors that may affect future results and outcomes
include, but are not limited to:
- our ability to develop and execute our
State Street Beacon plan to create cost efficiencies through
changes to our operations and to further digitize our service
delivery to our clients, any failure of which, in whole or in part,
may among other things, reduce our competitive position, diminish
the cost-effectiveness of our systems and processes or provide an
insufficient return on our associated investment;
- 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, the valuation of the U.S. dollar relative to other
currencies in which we record revenue or accrue expenses 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, our ability to manage levels of
such deposits and the relative portion of our deposits that are
determined to be operational under regulatory guidelines 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
changes to the regulatory framework applicable to our operations,
including implementation of the Dodd-Frank Act, the Basel III final
rule and European legislation (such as the Alternative Investment
Fund Managers Directive, Undertakings for Collective Investment in
Transferable Securities Directives and Markets in Financial
Instruments Directive II); among other consequences, these
regulatory changes impact the levels of regulatory capital we must
maintain, acceptable levels of credit exposure to third parties,
margin requirements applicable to derivatives, and restrictions on
banking and financial activities. In addition, our regulatory
posture and related expenses have been and will continue to be
affected by changes in regulatory expectations for global
systemically important financial institutions applicable to, among
other things, risk management, liquidity and capital planning and
compliance programs, and changes in governmental enforcement
approaches to perceived failures to comply with regulatory or legal
obligations;
- adverse changes in the regulatory
ratios that we are required or will be required to meet, whether
arising under the Dodd-Frank Act or the Basel III final rule, 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 U.S. and
non-U.S. regulators for the use, allocation or distribution of our
capital or other specific capital actions or programs, including
acquisitions, dividends and stock purchases, without which our
growth plans, distributions to shareholders, share repurchase
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 State Street's review of
the way that it invoiced certain client expenses, including the
amount of expenses determined to be reimbursable, as well as
potential consequences of such review including with respect to our
client relationships and potential investigations by
regulators;
- the results of, and costs associated
with, governmental or regulatory inquiries and investigations,
litigation and similar claims, disputes, or proceedings;
- 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, 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;
- our ability to expand our use of
technology to enhance the efficiency, accuracy and reliability of
our operations and our 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, manage
expenses, attract and retain highly skilled people and raise the
capital necessary to achieve our business goals and comply with
regulatory requirements and expectations;
- 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 the
amount of compensation we receive from clients 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 or liabilities 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 2014 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, January 27, 2016, and we do not undertake efforts to
revise those forward-looking statements to reflect events after
that date.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160127005640/en/
State Street CorporationAnthony Ostler, +1 617-664-3477orMedia
Contact:Hannah Grove, +1 617-664-3377
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