State Street Corp. Declares Third-Quarter Dividend on its Common Stock & Authorization to Repurchase up to $3.0 Billion of Co...
July 15 2021 - 4:35PM
Business Wire
State Street Corporation (NYSE: STT) today announced its third
quarter 2021 cash dividend of $0.57 per share of common stock, an
increase of 10% from $0.52 per share of common stock in the prior
quarter. The dividend is payable on October 12, 2021 to common
shareholders of record at the close of business on October 1,
2021.
Additionally, State Street’s Board of Directors has approved a
new common stock purchase program, authorizing the purchase of up
to $3.0 billion of its common stock over the six quarters beginning
in the third quarter of 2021 and continuing through the fourth
quarter of 2022.
“As we continue to invest in our business for future growth, the
SCB framework provides us with increased flexibility to deploy our
capital,” said Chairman and Chief Executive Officer Ron O’Hanley.
“The continued strength of our balance sheet, coupled with our
solid performance under this year’s annual stress test, has
positioned us well to increase our dividend and announce a new
common stock repurchase program,” O’Hanley added.
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 and amount of any stock
purchases and the type of transaction will depend on several
factors, including investment opportunities, State Street’s capital
position, its financial performance, market conditions and the
amount of common stock issued as part of employee compensation
programs. The common stock purchase program does not have specific
price targets and may be suspended at any time.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's
leading providers of financial services to institutional investors
including investment servicing, investment management and
investment research and trading. With $40.3 trillion in assets
under custody and/or administration and $3.6 trillion* in assets
under management as of March 31, 2021, State Street operates
globally in more than 100 geographic markets and employs
approximately 39,000 worldwide. For more information, visit State
Street's website at www.statestreet.com.
* Assets under management as of March 31, 2021 includes
approximately $60 billion of assets with respect to SPDR® products
for which State Street Global Advisors Funds Distributors, LLC
(SSGA FD) acts solely as the marketing agent. SSGA FD and State
Street Global Advisors are affiliated.
Forward Looking Statements
This News Release contains forward-looking statements within the
meaning of United States securities laws, including statements
about our goals and expectations regarding our plans to return
capital to shareholders, including intentions for common stock
dividends and share repurchases, as well as regarding our business,
financial and capital condition, results of operations, strategies,
the financial and market outlook, 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,” “guidance,”
“expect,” “priority,” “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 time subsequent to the time this
News Release is first issued.
Important factors that may affect future results and outcomes
include, but are not limited to:
- The continuation of share repurchases in upcoming quarters is
subject to the approval of our Board of Directors and depends on
several factors, including investment opportunities, financial
performance, market conditions and our capital positions;
- We are subject to intense competition, which could negatively
affect our profitability;
- We are subject to significant pricing pressure and variability
in our financial results and our AUC/A and AUM;
- Our development and completion of new products and services,
including State Street Alpha, may involve costs and dependencies
and expose us to increased risk;
- Our business may be negatively affected by our failure to
update and maintain our technology infrastructure;
- The COVID-19 pandemic continues to create significant risks and
uncertainties for our business;
- Acquisitions, strategic alliances, joint ventures and
divestitures, and the integration, retention and development of the
benefits of our acquisitions, pose risks for our business;
- The integration of CRD may be more difficult, costly or time
consuming than expected, and the anticipated benefits and cost
synergies may not be fully realized;
- Competition for qualified members of our workforce is intense,
and we may not be able to attract and retain the highly skilled
people we need to support our business;
- We could be adversely affected by geopolitical, economic and
market conditions;
- We have significant International operations, and disruptions
in European and Asian economies could have an adverse effect on our
consolidated results of operations or financial condition;
- Our investment securities portfolio, consolidated financial
condition and consolidated results of operations could be adversely
affected by changes in the financial markets;
- Our business activities expose us to interest rate risk;
- We assume significant credit risk to counterparties, who may
also have substantial financial dependencies with other financial
institutions, and these credit exposures and concentrations could
expose us to financial loss;
- Our fee revenue represents a significant portion of our
consolidated revenue and is subject to decline based on, among
other factors, the investment activities of our clients;
- If we are unable to effectively manage our capital and
liquidity, our consolidated financial condition, capital ratios,
results of operations and business prospects could be adversely
affected;
- We may need to raise additional capital or debt in the future,
which may not be available to us or may only be available on
unfavorable terms;
- If we experience a downgrade in our credit ratings, or an
actual or perceived reduction in our financial strength, our
borrowing and capital costs, liquidity and reputation could be
adversely affected;
- Our business and capital-related activities, including common
share repurchases, may be adversely affected by capital and
liquidity standards required as a result of capital stress
testing;
- We face extensive and changing government regulation in the
jurisdictions in which we operate, which may increase our costs and
compliance risks;
- We are subject to enhanced external oversight as a result of
the resolution of prior regulatory or governmental matters;
- Our businesses may be adversely affected by government
enforcement and litigation;
- We are subject to various legal proceedings relating to the
manner in which we have invoiced certain expenses, and the outcome
of which could materially adversely affect our results of
operations or harm our business or reputation;
- Any misappropriation of the confidential information we possess
could have an adverse impact on our business and could subject us
to regulatory actions, litigation and other adverse effects;
- Our calculations of risk exposures, total RWA and capital
ratios depend on data inputs, formulae, models, correlations and
assumptions that are subject to change, which could materially
impact our risk exposures, our total RWA and our capital ratios
from period to period;
- Changes in accounting standards may adversely affect our
consolidated financial statements;
- Changes in tax laws, rules or regulations, challenges to our
tax positions and changes in the composition of our pre-tax
earnings may increase our effective tax rate;
- The transition away from LIBOR may result in additional costs
and increased risk exposure;
- Our control environment may be inadequate, fail or be
circumvented, and operational risks could adversely affect our
consolidated results of operations;
- Cost shifting to non-U.S. jurisdictions and outsourcing may
expose us to increased operational risk and reputational harm and
may not result in expected cost savings;
- If we, or the third parties with which we do business,
experience failures, attacks or unauthorized access to our or their
respective information technology systems or facilities, or
disruptions to our continuous operations, this could result in
significant costs, reputational damage and limits on our business
activities;
- Long-term contracts expose us to pricing and performance
risk;
- Our businesses may be negatively affected by adverse publicity
or other reputational harm;
- We may not be able to protect our intellectual property;
- The quantitative models we use to manage our business may
contain errors that could result in material harm;
- Our reputation and business prospects may be damaged if our
clients incur substantial losses or are restricted in redeeming
their interests in investment pools that we sponsor or manage;
- The impacts of climate change could adversely affect our
business operations;
- We may incur losses as a result of unforeseen events including
terrorist attacks, natural disasters, the emergence of a new
pandemic or acts of embezzlement.
Other important factors that could cause actual results to
differ materially from those indicated by any forward-looking
statements are set forth in our 2020 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 should not by relied on
as representing our expectations or beliefs as of any time
subsequent to the time this News Release is first issued, and we do
not undertake efforts to revise those forward-looking statements to
reflect events after that time.
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version on businesswire.com: https://www.businesswire.com/news/home/20210715006010/en/
Ilene Fiszel Bieler +1 617-664-3477
Carolyn Cichon +1 617-664-8672
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