State Street Corp. Announces Planned Increase to Its Quarterly Common Stock Dividend to $0.42 per Share & an Authorization to...
June 28 2017 - 4:33PM
Business Wire
State Street Corporation (NYSE:STT) today announced that the
Federal Reserve did not object to the Company's capital plan,
reviewed by the Federal Reserve as part of the 2017 Comprehensive
Capital Analysis and Review (CCAR) process. The capital plan
includes a proposed common stock dividend increase and a new common
stock purchase program.
The capital plan proposes an increase to the quarterly common
stock dividend to $0.42 per share, from $0.38 per share, beginning
in the third quarter of 2017. State Street’s Board of Directors
will consider this increase in common stock dividend at its
regularly scheduled meeting in July 2017. Additionally, State
Street’s Board has approved a new common stock purchase program
authorizing the purchase of up to $1.4 billion of its common stock
that was included in the capital plan. The program will be
effective July 1, 2017 and extend through June 30, 2018. The
capital plan includes no net issuance of preferred shares over the
program period of July 1, 2017 through June 30, 2018.
State Street’s third quarter 2017 common stock and other stock
dividends, including the declaration, timing and amount thereof,
remain subject to consideration and approval by State Street’s
Board of Directors at the relevant times. State Street may commence
purchases of its common stock under the new authorization beginning
July 1, 2017. Stock purchases may be made using various types of
transactions, including open-market purchases, accelerated share
repurchases or other transactions off the market, and may be made
under Rule 10b5-1 trading programs. The timing of stock purchases,
type of transaction and number of shares purchased will depend on
several factors, including market conditions and State Street’s
capital position, its financial performance, the amount of common
stock issued as part of employee compensation programs and
investment opportunities. The common stock purchase program does
not have specific price targets and may be suspended at any
time.
About State Street CorporationState Street Corporation
(NYSE: STT) is one of the world's leading providers of financial
services to institutional investors, including investment
servicing, investment management and investment research and
trading. With $29.8 trillion in assets under custody and
administration and $2.6 trillion* in assets under management as of
March 31, 2017, State Street operates in more than 100 geographic
markets worldwide, including the US, Canada, Europe, the Middle
East and Asia. For more information, visit State Street’s website
at www.statestreet.com.
* Assets under management include approximately $33 billion as
of March 31, 2017, 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
the content of, and our goals and expectations regarding, our
capital plan, involving common stock dividends and purchases,
issuances of preferred stock and other capital actions, and
expectations for returning capital to shareholders. Forward-looking
statements are often, but not always, identified by such
forward-looking terminology as “plan,” “propose,” “priority,”
“intend,” “expect,” “may,” “will,” “objective,” “forecast,”
“outlook,” “believe,” “anticipate,” “estimate,” “seek,” “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 June 28,
2017.
Factors that could cause changes in the expectations or
assumptions on which forward-looking statements are based cannot be
foreseen with certainty and include, but are not limited to:
- changes in our leverage or other
regulatory capital ratios resulting from increases in client
deposits, interest rates or other factors;
- increases in the volatility of, or
declines in the level of, our net interest income, 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; and the impact of
monetary and fiscal policy in the United States and internationally
on prevailing rates of interest and currency exchange rates in the
markets in which we provide services to our clients;
- 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 needs, regulatory requirements and risk profile;
- we may not successfully implement our
plans to have a credible resolution plan by July 2017, or that plan
may not be considered to be sufficient by the Federal Reserve and
the FDIC, due to a number of factors, including, but not limited
to, challenges we may experience in interpreting and addressing
regulatory expectations, failure to implement remediation in a
timely manner, the complexities of development of a comprehensive
plan to resolve a global custodial bank and related costs and
dependencies. If we fail to meet regulatory expectations to the
satisfaction of the Federal Reserve and the FDIC in any future
submission, we could be subject to more stringent capital, leverage
or liquidity requirements, or restrictions on our growth,
activities or operations;
- 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;
- the results of, and costs associated
with, governmental or regulatory inquiries and investigations,
litigation and similar claims, disputes, or civil or criminal
proceedings;
- the credit agency ratings of our debt
and depositary obligations and investor and client perceptions of
our financial strength; and
- adverse publicity, whether specific to
State Street or regarding other industry participants or
industry-wide factors, or other reputational harm.
Other important factors that could cause actual results to
differ materially from those indicated by any forward-looking
statements are set forth in our 2016 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, June 28, 2017, and we do not undertake efforts to revise
those forward-looking statements to reflect events after that
date.
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State Street CorporationAnthony Ostler, +1 617-664-3477orCarolyn
Cichon, +1 617-664-8672
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