State Street Advances Ongoing Transformation and Productivity
Initiatives
State Street Corporation (NYSE: STT) announced today that as
part of its ongoing transformation and productivity initiatives, it
is streamlining its operating model in India and intends to assume
full ownership of the company’s joint venture with the Atos Group
(originally established with Syntel, Inc.). This consolidation,
which is expected to be complete by the fourth quarter 2023, will
continue the transformation of State Street’s global operations.
State Street also expects to achieve productivity savings as part
of these efforts, starting in 2024.
State Street has had a long-standing presence in India and has
partnered with Syntel (Atos) for more than 18 years. Bringing the
State Street Syntel capabilities and expertise in-house will more
seamlessly integrate them into State Street’s global operating
model and allow State Street to leverage its robust control
environment and standardized processes to further enhance
productivity.
“We thank Atos-Syntel for their long partnership and are pleased
to integrate the State Street Syntel operations, as it allows us to
accelerate our transformation journey,” said Ann Fogarty, executive
vice president and Head of Global Delivery for State Street
Investment Services. “We continue to invest in our people,
products, operations and technology to remain ahead of our clients’
ongoing business needs. Our focus remains on service excellence,
and continuously assessing our operating model to look for new ways
to create efficiencies and global scale.”
State Street conducts operations through a global operating
model with multiple locations across North America, Europe and
Asia. Utilizing multiple servicing locations provides continuity of
service, resiliency, and helps reduce operational risk. The company
delivers high-quality investment services, expertise and
full-service coverage with complementary, and overlapping,
operational hours globally.
About State Street
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 $39.6 trillion in assets
under custody and/or administration and $3.8 trillion* in assets
under management as of June 30, 2023, State Street operates
globally in more than 100 geographic markets and employs
approximately 43,000 worldwide. For more information, visit State
Street's website at www.statestreet.com.
*Assets under management as of June 30, 2023 includes
approximately $63 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 intention to acquire
full ownership of our joint venture with the Atos Group, including
productivity savings, technological and process efficiencies, risk
and control improvements and other benefits, as well as regarding
our transformation and productivity initiatives more generally and
our strategy, growth and business prospects and the business
environment. Forward looking statements are often, but not always,
identified by such forward-looking terminology as “outlook,”
“priority,” “will,” “expect,” "intend," "aim," "outcome," "future,"
“strategy,” "pipeline," “trajectory,” "target," “guidance,”
“objective,” “plan,” “forecast,” “believe,” “anticipate,”
“estimate,” “seek,” “may,” “trend,” 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: • Acquisitions, strategic
alliances, joint ventures and divestitures, including our intended
acquisition of full ownership of our joint venture with the Atos
Group, may are subject to contractual provisions and may not be
completed following announcement, and the integration, retention
and development of the benefits of these transactions, pose risks
for our business; • Our internal control environment may be
inadequate, fail or be circumvented, and operational risks could
adversely affect our business and consolidated results of
operations; • Shifting operational activities to non-U.S.
jurisdictions, changing our operating model and outsourcing to, or
insourcing from, third parties portions of our operations to third
parties may expose us to increased operational risk, geopolitical
risk and reputational harm and may not result in expected cost
savings or operational improvements; • 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; • We could be adversely
affected by geopolitical, economic and market conditions,
including, for example, as a result of liquidity or capital
deficiencies (actual or perceived) by other financial institutions
and related market and government actions, the ongoing war in
Ukraine, actions taken by central banks to address inflationary
pressures, challenging conditions in global equity markets, periods
of significant volatility in valuations and liquidity or other
disruptions in the markets for equity, fixed income and other asset
classes globally or within specific markets such as those that
impacted the UK gilts in the fourth quarter of 2022; • Our
development and completion of new products and services, including
State Street AlphaSM or State Street DigitalSM, and the enhancement
of our infrastructure required to meet increased regulatory and
client expectations for resiliency and the systems and process
re-engineering necessary to achieve improved productivity and
reduced operating risk, involve costs, risks and dependencies on
third parties; • Our business may be negatively affected by our
failure to update and maintain our technology infrastructure or as
a result of a cyber-attack or similar vulnerability in our or
business partners' infrastructure; • 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 have significant international operations and
clients that can be adversely impacted by developments in European
and Asian economies, including local, regional and geopolitical
developments affecting those economies; • Our investment securities
portfolio, consolidated financial condition and consolidated
results of operations could be adversely affected by changes in the
financial markets, governmental action or monetary policy. For
example, among other risks, increases in prevailing interest rates
could lead to reduced levels of client deposits and resulting
decreases in our NII; • Our business activities expose us to
interest rate risk; • We assume significant credit risk of
counterparties, who may also have substantial financial
dependencies on other financial institutions, and these credit
exposures and concentrations could expose us to financial loss; •
Our fee revenue represents a significant portion of our revenue and
is subject to decline based on, among other factors, market and
currency declines, investment activities and preferences of our
clients and their business mix; • If we are unable to effectively
manage our capital and liquidity, our 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 regulatory capital, credit (counterparty
and otherwise) and liquidity standards and considerations; • We
face extensive and changing governmental regulation in the
jurisdictions in which we operate, which may increase our costs and
compliance risks and may affect our business activities and
strategies; • 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; • Our businesses may be adversely
affected by increased political and regulatory scrutiny of asset
management stewardship and corporate ESG practices; • Our efforts
to improve our billing processes and practices are ongoing and may
result in the identification of additional billing errors; • 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 results of operations and financial condition; •
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; • We could face liabilities
for withholding and other non-income taxes, including in connection
with our services to clients, as a result of tax authority
examinations; • Attacks or unauthorized access to our or our
business partners' information technology systems or facilities, or
disruptions to our or their operations, could result in significant
costs, reputational damage and impacts on our business activities;
• Long-term contracts and customizing service delivery for clients
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 or
may infringe upon the rights of third parties; • The quantitative
models we use to manage our business may contain errors that could
adversely impact our business and regulatory compliance; • 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, and regulatory responses to such risks,
could adversely affect us; • 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; and • The
transition away from LIBOR may result in additional costs and
increased risk exposure. Other important factors that could cause
actual results to differ materially from those indicated by any
forward-looking statements are set forth in our 2022 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.
© 2023 State Street Corporation - All Rights Reserved
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version on businesswire.com: https://www.businesswire.com/news/home/20230801461319/en/
Media Contact: Ed Patterson epatterson@statestreet.com +1
404 213 3106
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