STATE STREET CORP - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
EX-99.3 - EXHIBIT 99.3 - STATE STREET CORP	ex993stt1q17presentation.htm
EX-99.1 - EXHIBIT 99.1 - STATE STREET CORP	exhibit991-1q17earningspre.htm
8-K - 8-K - STATE STREET CORP	form8-kx1q17results.htm

Exhibit 99.2



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
March 31, 2017

Table of Contents

	Page
GAAP-Basis Financial Information:
Consolidated Financial Highlights	1
Consolidated Results of Operations	2
Consolidated Statement of Condition	4
Average and Period-End Balance Sheet Trends	5
Assets Under Custody and Administration	6
Assets Under Management	7

Investment Portfolio:
Investment Portfolio Holdings by Asset Class	8
Investment Portfolio Non-U.S. Investments	9

Operating-Basis (Non-GAAP) Financial Information:
Reconciliations of Operating-Basis (Non-GAAP) Financial Information	10
Reconciliations of Constant Currency FX Impacts	14

Capital:
Regulatory Capital	15
Reconciliation of Tangible Common Equity Ratio	16
Reconciliations of Fully Phased-In Capital Ratios	17
Reconciliations of Supplementary Leverage Ratios	20

This financial information should be read in conjunction with State Street's news release dated April 26, 2017.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED FINANCIAL HIGHLIGHTS

	Quarters															Change
(Dollars in millions, except per share amounts, or where otherwise noted)	1Q16			2Q16			3Q16			4Q16			1Q17			1Q17 vs. 1Q16			1Q17 vs. 4Q16
Revenue:
Fee revenue	$	1,970		$	2,053		$	2,079		$	2,014		$	2,198		11.6	%		9.1	%
Net interest income	512			521			537			514			510			(0.4	)		(0.8	)
Gains (losses) from sales of available-for-sale securities, net	2			(1		)	6			2			(40		)	nm			nm
Losses from other-than-temporary impairment, net	—			—			(2		)	—			—			nm			nm
Total revenue	2,484			2,573			2,620			2,530			2,668			7.4			5.5
Provision for loan losses	4			4			—			2			(2		)	nm			nm
Total expenses	2,050			1,860			1,984			2,183			2,086			1.8			(4.4	)
Income before income tax expense	430			709			636			345			584			35.8			69.3
Income tax expense (benefit)	62			92			72			(248		)	82			32.3			nm
Net income (loss) from non-controlling interest	—			2			(1		)	—			—			nm			nm
Net income	368			619			563			593			502			36.4			(15.3	)
Net income available to common shareholders	$	319		$	585		$	507		$	557		$	446		39.8			(19.9	)
Diluted earnings per common share	$	.79		$	1.47		$	1.29		$	1.43		$	1.15		45.6			(19.6	)
Average diluted common shares outstanding (in thousands)	403,615			398,847			393,212			389,046			386,417			(4.3	)		(0.7	)
Cash dividends declared per common share	$	.34		$	.34		$	.38		$	.38		$	.38		11.8			—
Closing price per share of common stock (as of quarter end)	58.52			53.92			69.63			77.72			79.61			36.0			2.4
Ratios:
Return on average common equity	6.8		%	12.4		%	10.6		%	12.1		%	9.9		%	310		bps	(220	)	bps
Pre-tax operating margin	17.3			27.6			24.3			13.6			21.9			460			830
Common equity tier 1 risk-based capital⁽¹⁾	12.3			12.0			12.3			11.7			11.2			(110	)		(50	)
Tier 1 risk-based capital⁽¹⁾	14.9			15.0			15.4			14.8			14.4			(50	)		(40	)
Total risk-based capital⁽¹⁾	17.1			17.1			17.6			16.0			15.4			(170	)		(60	)
Tier 1 leverage⁽¹⁾	6.9			7.0			6.8			6.5			6.8			(10	)		30
Tangible common equity⁽²⁾	6.7			6.7			6.5			6.4			6.6			(10	)		20
At quarter-end:
Assets under custody and administration (in trillions)⁽³⁾	$	26.94		$	27.79		$	29.18		$	28.77		$	29.83		10.7	%		3.7	%
Asset under management (in trillions)	2.30			2.30			2.45			2.47			2.56			11.3			3.6
Total assets	243,685			255,386			256,140			242,698			236,802			(2.8	)		(2.4	)
Investment securities	102,298			103,121			99,888			97,167			94,639			(7.5	)		(2.6	)
Deposits	185,516			193,130			198,766			187,163			183,465			(1.1	)		(2.0	)
Long-term debt	10,323			11,924			11,834			11,430			11,394			10.4			(0.3	)
Total shareholders' equity	21,496			22,073			22,150			21,219			21,294			(0.9	)		0.4

⁽¹⁾ In early 2014, we announced that we had completed our Basel III qualification period. As a result, our regulatory capital ratios for each period presented in the table above have been calculated under the advanced approaches provisions of the Basel III final rule. Refer to page 15 of this earnings release addendum for additional information about our regulatory capital ratios for each period.
⁽²⁾ Tangible common equity ratio is a non-GAAP measure. Refer to accompanying reconciliations on page 16 for additional information.
⁽³⁾ Included assets under custody of $20.79 trillion, $21.35 trillion, $21.91 trillion, $21.73 trillion and $22.51 trillion as of March 31, 2016, June 30, 2016, September 30, 2016, December 31, 2016 and March 31, 2017, respectively.
^nm Not meaningful



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED RESULTS OF OPERATIONS

	Quarters															Change
(Dollars in millions, except per share amounts, or where otherwise noted)	1Q16			2Q16			3Q16			4Q16			1Q17			1Q17 vs. 1Q16		1Q17 vs. 4Q16
Reported Results
Fee revenue:
Servicing fees	$	1,242		$	1,239		$	1,303		$	1,289		$	1,296		4.3	%	0.5	%
Management fees	270			293			368			361			382			41.5		5.8
Trading services:
Direct sales and trading	90			87			94			115			98			8.9		(14.8	)
Indirect foreign exchange trading⁽¹⁾	66			70			65			67			66			—		(1.5	)
Total foreign exchange trading	156			157			159			182			164			5.1		(9.9	)
Electronic foreign exchange services	44			43			41			41			41			(6.8	)	—
Other trading, transition management and brokerage	72			67			67			70			70			(2.8	)	—
Total brokerage and other trading services	116			110			108			111			111			(4.3	)	—
Total trading services	272			267			267			293			275			1.1		(6.1	)
Securities finance	134			156			136			136			133			(0.7	)	(2.2	)
Processing fees and other	52			98			5			(65		)	112			115.4		nm
Total fee revenue	1,970			2,053			2,079			2,014			2,198			11.6		9.1
Net interest income:
Interest income	629			620			647			616			650			3.3		5.5
Interest expense	117			99			110			102			140			19.7		37.3
Net interest income	512			521			537			514			510			(0.4	)	(0.8	)
Gains (losses) related to investment securities, net:
Gains (losses) from sales of available-for-sale securities, net	2			(1		)	6			2			(40		)
Losses from other-than-temporary impairment, net	—			—			(2		)	—			—
Gains (losses) related to investment securities, net	2			(1		)	4			2			(40		)
Total revenue	2,484			2,573			2,620			2,530			2,668			7.4		5.5
Provision for loan losses	4			4			—			2			(2		)
Expenses:
Compensation and employee benefits	1,107			989			1,013			1,244			1,166			5.3		(6.3	)
Information systems and communications	272			270			285			278			287			5.5		3.2
Transaction processing services	200			201			200			199			197			(1.5	)	(1.0	)
Occupancy	113			111			107			109			110			(2.7	)	0.9
Acquisition and restructuring costs	104			20			42			43			29			(72.1	)	(32.6	)
Other	254			269			337			310			297			16.9		(4.2	)
Total expenses	2,050			1,860			1,984			2,183			2,086			1.8		(4.4	)
Income before income tax expense	430			709			636			345			584			35.8		69.3
Income tax expense (benefit)	62			92			72			(248		)	82			32.3		nm
Net income (loss) from non-controlling interest	—			2			(1		)	—			—			nm		nm
Net income	$	368		$	619		$	563		$	593		$	502		36.4		(15.3	)
Effective tax rate	14.4		%	12.9		%	11.4		%	(72.3		)%	14.0		%



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED RESULTS OF OPERATIONS (Continued)

	Quarters															Change
(Dollars in millions, except per share amounts, or where otherwise noted)	1Q16			2Q16			3Q16			4Q16			1Q17			1Q17 vs. 1Q16			1Q17 vs. 4Q16
Adjustments to net income:
Dividends on preferred stock	$	(49	)	$	(33	)	$	(55	)	$	(36	)	$	(55	)	12.2	%		52.8	%
Earnings allocated to participating securities	—			(1		)	(1		)	—			(1		)	nm			nm
Net income available to common shareholders	$	319		$	585		$	507		$	557		$	446		39.8			(19.9	)
Earnings per common share:
Basic	$	.80		$	1.48		$	1.31		$	1.45		$	1.17		46.3			(19.3	)
Diluted	.79			1.47			1.29			1.43			1.15			45.6			(19.6	)
Average common shares outstanding:
Basic	399,421			394,160			388,358			384,115			381,224			(4.6	)		(0.8	)
Diluted	403,615			398,847			393,212			389,046			386,417			(4.3	)		(0.7	)
Cash dividends declared per common share	$	.34		$	.34		$	.38		$	.38		$	.38		11.8			—
Closing price per share of common stock (as of quarter end)	58.52			53.92			69.63			77.72			79.61			36.0			2.4
Financial ratios:
Return on average common equity	6.8		%	12.4		%	10.6		%	12.1		%	9.9		%	310		bps	(220	)	bps
Pre-tax operating margin	17.3			27.6			24.3			13.6			21.9			460			830
After-tax margin	12.8			22.7			19.4			22.0			16.7			390			(530	)
Common dividend payout ratio	42.5			22.7			28.9			26.1			32.1			(24.5	)%		23.0	%

⁽¹⁾ We calculate revenue for indirect foreign exchange using an attribution methodology. This methodology takes into consideration estimated effective mark-ups/downs and observed client volumes. Direct sales and trading revenue is total foreign exchange trading revenue excluding the revenue attributed to indirect foreign exchange.
^nm Not meaningful



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED STATEMENT OF CONDITION
	As of Quarter End															% Change
(Dollars in millions, except per share amounts)	1Q16			2Q16			3Q16			4Q16			1Q17			1Q17 vs. 1Q16		1Q17 vs. 4Q16
Assets:
Cash and due from banks	$	3,735		$	4,673		$	3,490		$	1,314		$	2,909		(22.1	)%	121.4	%
Interest-bearing deposits with banks	65,032			75,169			79,090			70,935			66,789			2.7		(5.8	)
Securities purchased under resale agreements	3,722			2,010			2,442			1,956			2,181			(41.4	)	11.5
Trading account assets	873			890			1,063			1,024			945			8.2		(7.7	)
Investment securities:
Investment securities available-for-sale	71,086			72,735			71,520			61,998			58,810			(17.3	)	(5.1	)
Investment securities held-to-maturity⁽¹⁾	31,212			30,386			28,368			35,169			35,829			14.8		1.9
Total investment securities	102,298			103,121			99,888			97,167			94,639			(7.5	)	(2.6	)
Loans and leases, net⁽²⁾	19,140			19,788			21,451			19,704			22,486			17.5		14.1
Premises and equipment, net⁽³⁾	1,949			1,994			2,042			2,062			2,101			7.8		1.9
Accrued interest and fees receivable	2,371			2,399			2,594			2,644			2,690			13.5		1.7
Goodwill	5,733			5,671			5,911			5,814			5,855			2.1		0.7
Other intangible assets	1,749			1,682			1,849			1,750			1,710			(2.2	)	(2.3	)
Other assets	37,083			37,989			36,320			38,328			34,497			(7.0	)	(10.0	)
Total assets	$	243,685		$	255,386		$	256,140		$	242,698		$	236,802		(2.8	)	(2.4	)
Liabilities:
Deposits:
Non-interest-bearing	$	54,248		$	57,268		$	60,545		$	59,397		$	56,786		4.7		(4.4	)
Interest-bearing -- U.S.	31,159			33,060			33,767			30,911			26,746			(14.2	)	(13.5	)
Interest-bearing -- Non-U.S.	100,109			102,802			104,454			96,855			99,933			(0.2	)	3.2
Total deposits	185,516			193,130			198,766			187,163			183,465			(1.1	)	(2.0	)
Securities sold under repurchase agreements	4,224			4,350			4,364			4,400			4,003			(5.2	)	(9.0	)
Other short-term borrowings	1,706			1,712			1,413			1,585			1,177			(31.0	)	(25.7	)
Accrued expenses and other liabilities	20,388			22,166			17,582			16,901			15,469			(24.1	)	(8.5	)
Long-term debt	10,323			11,924			11,834			11,430			11,394			10.4		(0.3	)
Total liabilities	222,157			233,282			233,959			221,479			215,508			(3.0	)	(2.7	)
Shareholders' equity:
Preferred stock, no par, 3,500,000 shares authorized:
Series C, 5,000 shares issued and outstanding	491			491			491			491			491			—		—
Series D, 7,500 shares issued and outstanding	742			742			742			742			742			—		—
Series E, 7,500 shares issued and outstanding	728			728			728			728			728			—		—
Series F, 7,500 shares issued and outstanding	742			742			742			742			742			—		—
Series G, 5,000 shares issued and outstanding	—			493			493			493			493			nm		—
Common stock, $1 par, 750,000,000 shares authorized⁽⁴⁾	504			504			504			504			504			—		—
Surplus	9,739			9,767			9,778			9,782			9,796			0.6		0.1
Retained earnings	16,233			16,686			17,047			17,459			17,762			9.4		1.7
Accumulated other comprehensive income (loss)	(964		)	(997		)	(993		)	(2,040		)	(1,805		)	87.2		(11.5	)
Treasury stock, at cost⁽⁵⁾	(6,719		)	(7,083		)	(7,382		)	(7,682		)	(8,159		)	21.4		6.2
Total shareholders' equity	21,496			22,073			22,150			21,219			21,294			(0.9	)	0.4
Non-controlling interest-equity	32			31			31			—			—
Total equity	21,528			22,104			22,181			21,219			21,294
Total liabilities and equity	$	243,685		$	255,386		$	256,140		$	242,698		$	236,802		(2.8	)	(2.4	)

^nm Not meaningful
	1Q16			2Q16			3Q16			4Q16			1Q17
⁽¹⁾Fair value of investment securities held-to-maturity	$	31,555		$	30,895		$	28,780		$	34,994		$	35,694
⁽²⁾ Allowance for loan losses	47			51			51			53			51
⁽³⁾ Accumulated depreciation for premises and equipment	4,929			3,164			3,271			3,333			3,463
⁽⁴⁾ Common stock shares issued	503,879,642			503,879,642			503,879,642			503,879,642			503,879,642
⁽⁵⁾ Treasury stock shares	108,316,401			114,229,535			118,309,341			121,940,502			127,520,264



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
AVERAGE AND PERIOD-END BALANCE SHEET TRENDS

	Quarters										% Change
Average Balance Sheet Mix	1Q16		2Q16		3Q16		4Q16		1Q17		1Q17 vs. 1Q16		1Q17 vs. 4Q16
Investment securities and short-duration instruments	78.5	%	78.4	%	78.7	%	78.2	%	78.3	%	(0.3	)%	0.1	%
Loans and leases	8.3		8.1		8.0		8.6		9.2		10.8		7.0
Non-interest-earning assets	13.2		13.5		13.3		13.2		12.5		(5.3	)	(5.3	)
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Client funds bearing interest	59.0	%	60.2	%	60.3	%	58.8	%	59.9	%	1.5		1.9
Client funds not bearing interest	20.1		18.3		19.1		20.5		20.2		0.5		(1.5	)
Other non-interest-bearing liabilities	6.3		7.0		6.0		6.4		4.8		(23.8	)	(25.0	)
Long-term debt and common shareholders' equity	13.4		13.1		13.2		12.9		13.6		1.5		5.4
Preferred shareholders' equity	1.2		1.4		1.4		1.4		1.5		25.0		7.1
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%



(Dollars in millions)	Quarters										% Change
Average Asset Backed Securities	1Q16		2Q16		3Q16		4Q16		1Q17		1Q17 vs. 1Q16		1Q17 vs. 4Q16
Fixed	$	2,045	$	2,023	$	1,904	$	1,702	$	1,285	(37.2	)%	(24.5	)%
Floating	24,795		24,313		22,988		22,470		21,324		(14.0	)	(5.1	)
Total	$	26,840	$	26,336	$	24,892	$	24,172	$	22,609



(Dollars in millions)	Quarters														% Change
Investment Securities - Appreciation (Depreciation)	1Q16			2Q16			3Q16		4Q16			1Q17			1Q17 vs. 1Q16		1Q17 vs. 4Q16
Held-to-maturity:
Amortized cost (book value)	$	31,212		$	30,386		$	28,368	$	35,169		$	35,829		14.8	%	1.9	%
Fair value	31,555			30,895			28,780		34,994			35,694			13.1		2.0
Appreciation (depreciation)	343			509			412		(175		)	(135		)	(139.4	)	(22.9	)
Available-for-sale:
Amortized cost	70,366			71,720			70,795		61,912			58,658			(16.6	)	(5.3	)
Fair value (book value)	71,086			72,735			71,520		61,998			58,810			(17.3	)	(5.1	)
Appreciation (depreciation)	720			1,015			725		86			152			(78.9	)	76.7
Pre-tax appreciation (depreciation) related to securities available-for-sale transferred to held-to-maturity	(193		)	(197		)	35		(194		)	(41		)	(78.8	)	(78.9	)
Net pre-tax appreciation (depreciation) related to investment securities portfolio	870			1,327			1,172		(283		)	(24		)	(102.8	)	(91.5	)
Net after-tax appreciation (depreciation) related to investment securities portfolio	522			796			703		(170		)	(14		)	(102.7	)	(91.8	)



(Dollars in billions)	Quarters										% Change
Securities on Loan	1Q16		2Q16		3Q16		4Q16		1Q17		1Q17 vs. 1Q16		1Q17 vs. 4Q16
Average securities on loan	$	334	$	348	$	347	$	353	$	368	10.2	%	4.2	%
End-of-period securities on loan	341		348		348		364		378		10.9		3.8



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ASSETS UNDER CUSTODY AND ADMINISTRATION

	Quarters										% Change
(Dollars in billions)	1Q16		2Q16		3Q16		4Q16		1Q17		1Q17 vs. 1Q16		1Q17 vs. 4Q16
Assets Under Custody and Administration
By Product Classification:
Mutual funds	$	6,728	$	6,734	$	6,906	$	6,841	$	7,033	4.5	%	2.8	%
Collective funds, including ETFs	7,000		7,234		7,541		7,501		8,024		14.6		7.0
Pension products	5,197		5,496		5,671		5,584		5,775		11.1		3.4
Insurance and other products	8,018		8,322		9,060		8,845		9,001		12.3		1.8
Total Assets Under Custody and Administration	$	26,943	$	27,786	$	29,178	$	28,771	$	29,833	10.7		3.7
By Financial Instrument:
Equities	$	14,433	$	14,960	$	16,012	$	15,833	$	16,651	15.4		5.2
Fixed-income	9,199		9,530		9,891		9,665		9,786		6.4		1.3
Short-term and other investments	3,311		3,296		3,275		3,273		3,396		2.6		3.8
Total Assets Under Custody and Administration	$	26,943	$	27,786	$	29,178	$	28,771	$	29,833	10.7		3.7
By Geographic Location⁽¹⁾:
North America	$	20,505	$	21,072	$	21,561	$	21,544	$	22,361	9.1		3.8
Europe/Middle East/Africa	5,159		5,356		6,107		5,734		5,979		15.9		4.3
Asia/Pacific	1,279		1,358		1,510		1,493		1,493		16.7		—
Total Assets Under Custody and Administration	$	26,943	$	27,786	$	29,178	$	28,771	$	29,833	10.7		3.7
Assets Under Custody⁽²⁾
By Product Classification:
Mutual funds	$	6,363	$	6,361	$	6,461	$	6,395	$	6,499	2.1		1.6
Collective funds, including ETFs	5,589		5,788		6,080		6,100		6,601		18.1		8.2
Pension products	4,673		4,947		5,107		5,039		5,212		11.5		3.4
Insurance and other products	4,163		4,258		4,262		4,191		4,193		0.7		—
Total Assets Under Custody	$	20,788	$	21,354	$	21,910	$	21,725	$	22,505	8.3		3.6
By Geographic Location⁽¹⁾:
North America	$	16,420	$	16,756	$	17,074	$	17,083	$	17,747	8.1		3.9
Europe/Middle East/Africa	3,422		3,584		3,698		3,508		3,635		6.2		3.6
Asia/Pacific	946		1,014		1,138		1,134		1,123		18.7		(1.0	)
Total Assets Under Custody	$	20,788	$	21,354	$	21,910	$	21,725	$	22,505	8.3		3.6

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



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ASSETS UNDER MANAGEMENT

	Quarters										% Change
(Dollars in billions)	1Q16		2Q16		3Q16		4Q16		1Q17		1Q17 vs. 1Q16		1Q17 vs. 4Q16
Assets Under Management
By Asset Class and Investment Approach:
Equity:
Active	$	32	$	32	$	70	$	73	$	77	140.6	%	5.5	%
Passive	1,295		1,275		1,340		1,401		1,482		14.4		5.8
Total Equity	1,327		1,307		1,410		1,474		1,559		17.5		5.8
Fixed-Income:
Active	17		17		73		70		69		305.9		(1.4	)
Passive	310		318		318		308		312		0.6		1.3
Total Fixed-Income	327		335		391		378		381		16.5		0.8
Cash⁽¹⁾	381		380		351		333		335		(12.1	)	0.6
Multi-Asset-Class Solutions:
Active	17		17		19		19		19		11.8		—
Passive	92		100		106		107		113		22.8		5.6
Total Multi-Asset-Class Solutions	109		117		125		126		132		21.1		4.8
Alternative Investments⁽²⁾:
Active	18		18		29		28		26		44.4		(7.1	)
Passive	134		144		140		129		128		(4.5	)	(0.8	)
Total Alternative Investments	152		162		169		157		154		1.3		(1.9	)
Total Assets Under Management	$	2,296	$	2,301	$	2,446	$	2,468	$	2,561	11.5		3.8
By Geographic Location⁽³⁾:
North America	$	1,491	$	1,501	$	1,641	$	1,691	$	1,772	18.8		4.8
Europe/Middle East/Africa	496		492		495		482		486		(2.0	)	0.8
Asia/Pacific	309		308		310		295		303		(1.9	)	2.7
Total Assets Under Management	$	2,296	$	2,301	$	2,446	$	2,468	$	2,561	11.5		3.8

⁽¹⁾ Includes both floating- and constant-net-asset-value portfolios held in commingled structures or separate accounts.
⁽²⁾ Includes real estate investment trusts, currency and commodities, including SPDR^® Gold Fund and SPDR^® Long Dollar Gold Trust Fund. State Street is not the investment manager for SPDR^® Gold Fund and SPDR^®Long Dollar Gold Trust Fund, but acts as marketing agent.
⁽³⁾ Geographic mix is based on client location or fund management location.

Exchange-Traded Funds⁽¹⁾
By Asset Class:
Alternative investments	$	45	$	54	$	54	$	42	$	46	2.2	%	9.5	%
Cash	3		2		2		2		2		(33.3	)	—
Equity	349		348		370		426		457		30.9		7.3
Fixed-income	46		48		52		51		53		15.2		3.9
Total Exchange-Traded Funds	$	443	$	452	$	478	$	521	$	558	26.0		7.1

⁽¹⁾ Exchange-traded funds are a component of assets under management presented above.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO HOLDINGS BY ASSET CLASS

	Ratings
March 31, 2017	UST/AGY			AAA			AA			A			BBB			<BBB			NR			Book Value⁽¹⁾		Book Value (% Total)		Net Unrealized After-tax MTM Gain/(Loss) (In millions)⁽²⁾			Fixed Rate/ Floating Rate
Government & agency securities	77		%	11		%	7		%	5		%	—		%	—		%	—		%	$	26.7	28.3	%	$	20		98% / 2%
Asset-backed securities	—			69			19			2			6			4			—			22.8		24.1		14			5% / 95%
Student loans	—			41			36			2			15			6			—			8.5		37.3		(27		)
Credit cards	—			100			—			—			—			—			—			2.7		11.8		(10		)
Auto & equipment	—			90			8			2			—			—			—			2.2		9.6		2
Non-US residential mortgage backed securities	—			85			9			3			1			2			—			7.7		33.8		50
Collateralized loan obligation	—			99			1			—			—			—			—			1.0		4.4		6
Sub-prime	—			10			16			19			3			52			—			0.3		1.3		(8		)
Other	—			26			74			—			—			—			—			0.4		1.8		1
Mortgage-backed securities	95			4			—			—			—			1			—			22.4		23.7		(151		)	92% / 8%
Agency MBS	100			—			—			—			—			—			—			21.1		94.6		(157		)
Non-Agency MBS	—			73			2			1			5			19			—			1.3		5.4		6
CMBS	37			61			1			—			—			1			—			4.1		4.3		(20		)	69% / 31%
Corporate bonds	—			—			17			51			31			1			—			3.5		3.7		(3		)	90% / 10%
Covered bonds	—			100			—			—			—			—			—			3.8		4.0		13			12% / 88%
Municipal bonds	—			33			63			4			—			—			—			7.8		8.3		98			99% / 1%
Clipper tax-exempt bonds/other	—			48			38			11			1			—			2			3.4		3.6		15			28% / 72%
Total Portfolio	46		%	32		%	14		%	4		%	3		%	1		%	—		%	$	94.5	100.0	%	$	(14	)	67% / 33%

Book Value	$	43.3		$	30.0		$	13.0		$	4.4		$	2.7		$	1.1		$	—		$	94.5


⁽¹⁾ Portfolio amounts are expressed at book value; book value includes the amortized cost of transferred securities at the time they were transferred.
⁽²⁾ At March 31, 2017 the after-tax unrealized MTM gain/(loss) includes after-tax unrealized gain on securities available-for-sale of $91 million, after-tax unrealized loss on securities held-to-maturity of $(81) million and after-tax unrealized loss primarily related to securities previously transferred from available-for-sale to held to maturity of $(24) million.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO NON-U.S. INVESTMENTS

				Book Value (In billions)
March 31, 2017	Book Value (In billions)		Average Rating	Gov't/Agency⁽¹⁾		ABS FRMBS		ABS All Other		Corporate Bonds		Covered Bonds		Other
United Kingdom	$	5.6	AAA	$	—	$	3.3	$	1.4	$	0.2	$	0.7	$	—
Australia	4.6		AAA	0.6		1.9		0.3		0.3		0.5		1.0
Canada	3.0		AAA	1.9		—		—		0.1		1.0		—
Netherlands	1.8		AAA	—		1.5		0.1		0.1		0.1		—
Japan	1.4		A	1.4		—		—		—		—		—
France	1.3		AA	0.5		0.1		0.2		0.2		0.3		—
Germany	0.9		AAA	0.1		—		0.8		—		—		—
Italy	0.8		AA	—		0.5		0.3		—		—		—
Korea	0.7		AA	0.7		—		—		—		—		—
Norway	0.5		AAA	—		—		—		—		0.5		—
Spain	0.4		A	—		0.2		0.2		—		—		—
Finland	0.2		AAA	—		—		—		—		0.2		—
Ireland	0.1		AAA	—		0.1		—		—		—		—
Other	1.7		AA	0.9		0.1		—		0.2		0.5		—
Total Non-U.S. Investments⁽²⁾	$	23.0		$	6.1	$	7.7	$	3.3	$	1.1	$	3.8	$	1.0
U.S. Investments	71.5
Total Portfolio	$	94.5

⁽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 $18.7 million.

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, or GAAP, management also presents results on a non-GAAP, or "operating" basis, as it believes that this presentation supports additional meaningful analysis and comparisons of trends with respect to State Street’s business operations from period to period, as well as information (such as capital ratios calculated under regulatory standards scheduled to be effective in the future or other standards) that management also uses in evaluating State Street’s business and activities.

Our operating-basis financial results adjust our GAAP-basis financial results to both: (1) exclude the impact of revenue and expenses outside of State Street’s normal course of business, such as restructuring charges; and (2) present revenue from non-taxable sources, such as interest income from tax-exempt investment securities and processing fees and other revenue associated with tax-advantaged adjustments, on a fully taxable-equivalent basis. Management believes that operating-basis financial information facilitates an investor's further understanding and analysis of State Street's financial performance and trends, including providing additional insight into our underlying margin and profitability, in addition to financial information prepared and reported in conformity with GAAP. The tax-equivalent adjustments allow for more meaningful comparisons of yields and margins on assets and the evaluation of investment opportunities with different tax profiles.

Beginning with the first quarter of 2017, we are simplifying our operating-basis presentation of our financial results and will no longer exclude, as part of the non-ordinary course adjustment, the effects of gains/losses on sales of businesses or the discount accretion associated with former conduit securities. In the first quarter of 2017, those effects were a $30 million pre-tax gain on the sale of our transfer agency joint venture interests and $5 million of discount accretion, for a total increase in revenue of $35 million relative to our historical operating-basis presentation. We believe that that these changes to our operating-basis presentation simplify the overall presentation of our financial results, making them easier to understand, while, overall, continuing to facilitate a useful and helpful additional understanding of our financial results.

We also believe that the use of other non-GAAP financial measures in the calculation of identified capital ratios is useful to understanding State Street's capital position and is of interest to investors. Additionally, management may present revenue and expense measures on a constant currency (non-GAAP) basis to identify the significance of changes in foreign currency exchange rates (which often are variable) in period-to-period comparisons. This presentation represents the effects of applying prior period weighted average foreign currency exchange rates to current period results.

We provide forward-looking financial estimates and expectations on an operating basis (non-GAAP) because information needed to provide corresponding GAAP-basis information is primarily dependent on future events or conditions that may be uncertain and are difficult to predict or estimate. Management is therefore, in general, is unable to provide a reconciliation of our operating-basis forward-looking financial estimates and expectations to a GAAP-basis presentation.

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.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF OPERATING-BASIS (NON-GAAP) FINANCIAL INFORMATION
		Quarters															Change
(Dollars in millions, except per share amounts, or where otherwise noted)		1Q16			2Q16			3Q16			4Q16			1Q17			1Q17 vs. 1Q16			1Q17 vs. 4Q16
Total Revenue⁽¹⁾⁽²⁾:
Total revenue, GAAP-basis		$	2,484		$	2,573		$	2,620		$	2,530		$	2,668		7.4	%		5.5	%
	Adjustment to processing fees and other revenue (see below)	63			34			134			186			70
	Adjustment to net interest income (see below)	27			25			—			33			43
	Adjustment to servicing and management fee revenue (see below)	—			43			—			—			—
Total revenue, operating-basis		$	2,574		$	2,675		$	2,754		$	2,749		$	2,781		8.0			1.2

Fee Revenue⁽¹⁾:
Total fee revenue, GAAP-basis		$	1,970		$	2,053		$	2,079		$	2,014		$	2,198		11.6			9.1
	Tax-equivalent adjustment associated with tax-advantaged investments	63			87			134			186			70
	Gain on sale of WM/Reuters Business	—			(53		)	—			—			—
	Expense billing matter, net	—			43			—			—			—
Total fee revenue, operating-basis		$	2,033		$	2,130		$	2,213		$	2,200		$	2,268		11.6			3.1

Servicing Fees:
Total servicing fees, GAAP-basis		$	1,242		$	1,239		$	1,303		$	1,289		$	1,296		4.3			0.5
	Expense billing matter	—			48			—			—			—
Total servicing fees, operating-basis		$	1,242		$	1,287		$	1,303		$	1,289		$	1,296		4.3			0.5

Management Fees:
Total management fees, GAAP-basis		$	270		$	293		$	368		$	361		$	382		41.5			5.8
	Expense billing matter	—			(5		)	—			—			—
Total management fees, operating-basis		$	270		$	288		$	368		$	361		$	382		41.5			5.8

Processing Fees and Other Revenue⁽¹⁾:
Total processing fees and other revenue, GAAP-basis		$	52		$	98		$	5		$	(65	)	$	112		115.4			nm
	Tax-equivalent adjustment associated with tax-advantaged investments	63			87			134			186			70
	Gain on sale of WM/Reuters Business	—			(53		)	—			—			—
Total processing fees and other revenue, operating-basis		$	115		$	132		$	139		$	121		$	182		58.3			50.4

Net Interest Income & Net Interest Margin⁽²⁾⁽³⁾:
Net interest income, GAAP-basis		$	512		$	521		$	537		$	514		$	510		(0.4	)%		(0.8	)%
	Tax-equivalent adjustment associated with tax-exempt investment securities	42			40			42			43			43
Net interest income, fully taxable-equivalent basis		$	554		$	561		$	579		$	557		$	553
	Average interest earning assets	194,081			198,243			202,155			202,194			191,840
Net interest margin, fully taxable-equivalent basis		1.15		%	1.14		%	1.14		%	1.09		%	1.17		%	2		bps	8		bps

Net interest income, fully taxable-equivalent basis		$	554		$	561		$	579		$	557		$	553
	Discount accretion associated with former conduit securities	(15		)	(15		)	(42		)	(10		)	—
Net interest income, operating-basis		$	539		$	546		$	537		$	547		$	553		2.6	%		1.1	%
	Average interest earning assets	194,081			198,243			202,155			202,194			191,840
Net interest margin, operating-basis		1.12		%	1.11		%	1.06		%	1.08		%	1.17		%	5		bps	9		bps
	Effect of discount accretion	0.03		%	0.03		%	0.08		%	0.01		%	—		%



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF OPERATING-BASIS (NON-GAAP) FINANCIAL INFORMATION (Continued)
		Quarters															Change
(Dollars in millions, except per share amounts, or where otherwise noted)		1Q16			2Q16			3Q16			4Q16			1Q17			1Q17 vs. 1Q16			1Q17 vs. 4Q16
Expenses:
Total expenses, GAAP-basis		$	2,050		$	1,860		$	1,984		$	2,183		$	2,086		1.8	%		(4.4	)%
	Severance costs associated with staffing realignment	(3		)	3			9			2			—
	Provisions for legal contingencies	—			—			(42		)	1			—
	Expense billing matter, net	—			(15		)	—			—			—
	Acquisition costs	(7		)	(7		)	(33		)	(22		)	(12		)
	Restructuring charges, net	(97		)	(13		)	(9		)	(21		)	(17		)
Total expenses, operating-basis		$	1,943		$	1,828		$	1,909		$	2,143		$	2,057		5.9			(4.0	)

Compensation and Employee Benefits Expenses:
Total compensation and employee benefits expenses, GAAP-basis		$	1,107		$	989		$	1,013		$	1,244		$	1,166		5.3			(6.3	)
	Severance costs associated with staffing realignment	(3		)	3			9			2			—
Total compensation and employee benefits expenses, operating-basis		$	1,104		$	992		$	1,022		$	1,246		$	1,166		5.6			(6.4	)

Other Expenses:
Total other expenses, GAAP-basis		$	254		$	269		$	337		$	310		$	297		16.9			(4.2	)
	Provisions for legal contingencies	—			—			(42		)	1			—
	Expense billing matter, net	—			(15		)	—			—			—
Total other expenses, operating-basis		$	254		$	254		$	295		$	311		$	297		16.9			(4.5	)

Income Before Income Tax Expense:
Income before income tax expense, GAAP-basis		$	430		$	709		$	636		$	345		$	584		35.8			69.3
	Net pre-tax effect of non-operating adjustments to revenue and expenses	197			134			209			259			142
Income before income tax expense, operating-basis		$	627		$	843		$	845		$	604		$	726		15.8			20.2

Pre-tax operating margin⁽⁴⁾:
Pre-tax operating margin, GAAP-basis		17.3		%	27.6		%	24.3		%	13.6		%	21.9		%	460		bps	830		bps
	Net effect of non-operating adjustments	7.1			3.9			6.4			8.4			4.2
Pre-tax operating margin, operating-basis		24.4		%	31.5		%	30.7		%	22.0		%	26.1		%	170		bps	410		bps

Income Tax Expense:
Income tax expense (benefit), GAAP-basis		$	62		$	92		$	72		$	(248	)	$	82		32.3	%		nm
	Aggregate tax-equivalent adjustments	105			127			176			229			113
	Net tax effect of non-operating adjustments	15			10			8			10			7
Income tax expense (benefit), operating-basis		$	182		$	229		$	256		$	(9	)	$	202		11.0			nm

Effective Tax Rate:
Income before income tax expense, operating-basis		$	627		$	843		$	845		$	604		$	726		15.8			20.2
Income tax expense, operating-basis		182			229			256			(9		)	202
Effective tax rate, operating-basis		29.1		%	27.0		%	30.3		%	(1.5		)%	27.8		%	(130	)	bps	2,930		bps

Net Income Available to Common Shareholders:
Net income available to common shareholders, GAAP-basis		$	319		$	585		$	507		$	557		$	446		39.8	%		(19.9	)%
	Net after-tax effect of non-operating adjustments to processing fees and other revenue, net interest income, expenses and income tax expense	77			(3		)	25			20			22
Net income available to common shareholders, operating-basis		$	396		$	582		$	532		$	577		$	468		18.2			(18.9	)



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF OPERATING-BASIS (NON-GAAP) FINANCIAL INFORMATION (Continued)
		Quarters															Change
(Dollars in millions, except per share amounts, or where otherwise noted)		1Q16			2Q16			3Q16			4Q16			1Q17			1Q17 vs. 1Q16			1Q17 vs. 4Q16
Diluted Earnings per Common Share⁽¹⁾⁽²⁾:
Diluted earnings per common share, GAAP-basis		$	.79		$	1.47		$	1.29		$	1.43		$	1.15		45.6	%		(19.6	)%
	Severance costs associated with staffing realignment	.01			(.01		)	(.01		)	—			—
	Provisions for legal contingencies	—			—			.11			.02			—
	Expense billing matter, net	—			.10			—			—			—
	Acquisition costs	.01			.01			.05			.03			.02
	Restructuring charges, net	.15			.02			.01			.02			.03
	Effect on income tax of non-operating adjustments	.04			(.01		)	(.03		)	(.01		)	.01
	Discount accretion associated with former conduit securities	(.02		)	(.02		)	(.07		)	(.01		)	—
	Gain on sale of WM/Reuters Business	—			(.10		)	—			—			—
Diluted earnings per common share, operating-basis		$	.98		$	1.46		$	1.35		$	1.48		$	1.21		23.5			(18.2	)

Return on Average Common Equity⁽¹⁾⁽²⁾:
Return on average common equity, GAAP-basis		6.8		%	12.4		%	10.6		%	12.1		%	9.9		%	310		bps	(220	)	bps
	Severance costs associated with staffing realignment	—			(.1		)	(.1		)	—			—
	Provisions for legal contingencies	—			—			.9			.2			—
	Expense billing matter, net	—			.8			—			—			—
	Acquisition costs	.1			.1			.3			.3			.2
	Restructuring charges, net	1.3			.2			.1			.1			.2
	Effect on income tax of non-operating adjustments	.4			(.1		)	(.2		)	(.1		)	.1
	Discount accretion associated with former conduit securities	(.2		)	(.2		)	(.5		)	(.1		)	—
	Gain on sale of WM/Reuters Business	—			(.8		)	—			—			—
Return on average common equity, operating-basis		8.4		%	12.3		%	11.1		%	12.5		%	10.4		%	200		bps	(210	)	bps

Fee Operating Leverage, GAAP-Basis:
Total fee revenue, GAAP-basis (as reconciled above)		$	1,970		$	2,053		$	2,079		$	2,014		$	2,198		11.57	%		9.14	%
Total expenses, GAAP-basis (as reconciled above)		2,050			1,860			1,984			2,183			2,086			1.76			(4.44	)
Fee operating leverage, GAAP-basis																	981		bps	1,358		bps

Fee Operating Leverage, Operating-Basis⁽¹⁾:
Total fee revenue, operating-basis (as reconciled above)		$	2,033		$	2,130		$	2,213		$	2,200		$	2,268		11.56	%		3.09	%
Total expenses, operating-basis (as reconciled above)		1,943			1,828			1,909			2,143			2,057			5.87			(4.01	)
Fee operating leverage, operating-basis																	569		bps	710		bps

Operating Leverage, GAAP-Basis:
Total revenue, GAAP-basis (as reconciled above)		2,484			2,573			2,620			2,530			2,668			7.41	%		5.45	%
Total expenses, GAAP-basis (as reconciled above)		2,050			1,860			1,984			2,183			2,086			1.76			(4.44	)
Operating leverage, GAAP-basis																	565		bps	989		bps

Operating Leverage, Operating-Basis⁽¹⁾⁽²⁾:
Total revenue, operating-basis (as reconciled above)		$	2,574		$	2,675		$	2,754		$	2,749		$	2,781		8.04	%		1.16	%
Total expenses, operating-basis (as reconciled above)		1,943			1,828			1,909			2,143			2,057			5.87			(4.01	)
Operating leverage, operating-basis																	217		bps	517		bps

⁽¹⁾The first quarter of 2017 GAAP and operating-basis results include a pre-tax gain of approximately $30 million on the sale of State Street's interest in Boston Financial Data Services, Inc. (BFDS) and International Financial Data Services Limited (IFDS Ltd), reflecting a change in our operating-basis presentation effective the first quarter of 2017 to include gains/losses on sales of businesses. In second quarter of 2016, under our historical presentation, operating-basis results excluded a $53 million pre-tax gain on the sale of WM/Reuters business, and such results have not been revised.
⁽²⁾Beginning in the first quarter of 2017, management will no longer present discount accretion associated with former conduit securities as an operating-basis adjustment. Therefore, first quarter 2017 GAAP and operating-basis results included $5 million of discount accretion. In the first, second, third and fourth quarters of 2016, operating-basis net interest income excluded $15 million, $15 million, $42 million and $10 million of discount accretion, respectively, and such results have not been revised.
⁽³⁾ Fully taxable-equivalent net interest margin for the periods presented above represented fully taxable-equivalent net interest income composed of GAAP-basis net interest income plus tax-equivalent adjustments, on an annualized basis, as a percentage of average total interest-earning assets for the quarters presented.
⁽⁴⁾Pre-tax operating margin for the first, second, third and fourth quarters of 2016 and first quarter of 2017 was calculated by dividing income before income tax expense by total revenue.
^nmNot meaningful



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF CONSTANT CURRENCY FX IMPACTS

GAAP-Basis Quarter Comparison
	Reported								Currency Translation Impact					Excluding Currency Impact						% Change Constant Currency
(Dollars in millions)	1Q16		4Q16			1Q17			1Q17 vs. 1Q16			1Q17 vs. 4Q16		1Q17 vs. 1Q16			1Q17 vs. 4Q16			1Q17 vs. 1Q16		1Q17 vs. 4Q16
Fee revenue:
Servicing fees	$	1,242	$	1,289		$	1,296		$	(14	)	$	—	$	1,310		$	1,296		5.5	%	0.5	%
Management fees	270		361			382			(5		)	1		387			381			43.3		5.5
Trading services	272		293			275			(1		)	—		276			275			1.5		(6.1	)
Securities finance	134		136			133			—			—		133			133			(0.7	)	(2.2	)
Processing fees and other	52		(65		)	112			(1		)	—		113			112			nm		nm
Total fee revenue	1,970		2,014			2,198			(21		)	1		2,219			2,197			12.6		9.1
Net interest income	512		514			510			(5		)	—		515			510			0.6		(0.8	)
Gains (losses) related to investment securities, net	2		2			(40		)	—			—		(40		)	(40		)	nm		nm
Total revenue	$	2,484	$	2,530		$	2,668		$	(26	)	$	1	$	2,694		$	2,667		8.5		5.4

Expenses:
Compensation and employee benefits	$	1,107	$	1,244		$	1,166		$	(13	)	$	1	$	1,179		$	1,165		6.5		(6.4	)
Information systems and communications	272		278			287			(1		)	—		288			287			5.9		3.2
Transaction processing services	200		199			197			(2		)	—		199			197			(0.5	)	(1.0	)
Occupancy	113		109			110			(2		)	—		112			110			(0.9	)	0.9
Other	358		353			326			(3		)	—		329			326			(8.1	)	(7.6	)
Total expenses	$	2,050	$	2,183		$	2,086		$	(21	)	$	1	$	2,107		$	2,085		2.8		(4.5	)



Operating-Basis Quarter Comparison
	Reported							Currency Translation Impact					Excluding Currency Impact						% Change Constant Currency
(Dollars in millions)	1Q16		4Q16		1Q17			1Q17 vs. 1Q16			1Q17 vs. 4Q16		1Q17 vs. 1Q16			1Q17 vs. 4Q16			1Q17 vs. 1Q16		1Q17 vs. 4Q16
Fee revenue:
Servicing fees	$	1,242	$	1,289	$	1,296		$	(14	)	$	—	$	1,310		$	1,296		5.5	%	0.5	%
Management fees	270		361		382			(5		)	1		387			381			43.3		5.5
Trading services	272		293		275			(1		)	—		276			275			1.5		(6.1	)
Securities finance	134		136		133			—			—		133			133			(0.7	)	(2.2	)
Processing fees and other	115		121		182			(1		)	—		183			182			59.1		50.4
Total fee revenue	2,033		2,200		2,268			(21		)	1		2,289			2,267			12.6		3.0
Net interest income	539		547		553			(5		)	—		558			553			3.5		1.1
Gains (losses) related to investment securities, net	2		2		(40		)	—			—		(40		)	(40		)	nm		nm
Total revenue	$	2,574	$	2,749	$	2,781		$	(26	)	$	1	$	2,807		$	2,780		9.1		1.1

Expenses:
Compensation and employee benefits	$	1,104	$	1,246	$	1,166		$	(13	)	$	1	$	1,179		$	1,165		6.8		(6.5	)
Information systems and communications	272		278		287			(1		)	—		288			287			5.9		3.2
Transaction processing services	200		199		197			(2		)	—		199			197			(0.5	)	(1.0	)
Occupancy	113		109		110			(2		)	—		112			110			(0.9	)	0.9
Other	254		311		297			(3		)	—		300			297			18.1		(4.5	)
Total expenses	$	1,943	$	2,143	$	2,057		$	(21	)	$	1	$	2,078		$	2,056		6.9		(4.1	)

STATE STREET CORPORATION

EARNINGS RELEASE ADDENDUM

REGULATORY CAPITAL

The accompanying materials present 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 news 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 accompanying materials similarly aids in an investor's understanding of State Street's capital position and therefore is of interest to investors.

The common equity tier 1 risk-based capital, or CET1, tier 1 risk-based capital, total 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. The capital component, or numerator, of these ratios was calculated in conformity with the provisions of the Basel III final rule. For the periods below the total risk-weighted assets component, or denominator, used in the calculation of the CET1, tier 1 risk-based capital and total risk-based capital ratios were each calculated in conformity with the advanced approaches and standardized approach provisions of Basel III, as the case may be.

The advanced approaches-based ratios (actual and estimated) included in this presentation reflect calculations and determinations with respect to our capital and related matters, based on State Street and external data, quantitative formula, 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.

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 or other applicable requirements. Reconciliations with respect to the calculation of the TCE ratios are provided on page 16 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.



	Quarters
	1Q16						2Q16						3Q16						4Q16						1Q17
(Dollars in millions)	Basel III Advanced Approaches⁽¹⁾			Basel III Standardized Approach⁽²⁾			Basel III Advanced Approaches⁽¹⁾			Basel III Standardized Approach⁽²⁾			Basel III Advanced Approaches⁽¹⁾			Basel III Standardized Approach⁽²⁾			Basel III Advanced Approaches⁽¹⁾			Basel III Standardized Approach⁽²⁾			Basel III Advanced Approaches⁽¹⁾			Basel III Standardized Approach⁽²⁾
RATIOS:
Common equity tier 1 capital	12.3		%	12.5		%	12.0		%	12.0		%	12.3		%	12.5		%	11.7		%	11.6		%	11.2		%	11.5		%
Tier 1 capital	14.9			15.1			15.0			15.0			15.4			15.7			14.8			14.7			14.4			14.7
Total capital	17.1			17.3			17.1			17.1			17.6			17.9			16.0			16.0			15.4			15.9
Tier 1 leverage	6.9			6.9			7.0			7.0			6.8			6.8			6.5			6.5			6.8			6.8

Supporting Calculations:
Common equity tier 1 capital	$	12,404		$	12,404		$	12,518		$	12,518		$	12,269		$	12,269		$	11,624		$	11,624		$	11,319		$	11,319
Total risk-weighted assets	100,633			99,617			104,012			104,492			99,736			98,374			99,301			99,876			100,843			98,494
Common equity tier 1 risk-based capital	12.3		%	12.5		%	12.0		%	12.0		%	12.3		%	12.5		%	11.7		%	11.6		%	11.2		%	11.5		%

Tier 1 capital	$	15,032		$	15,032		$	15,642		$	15,642		$	15,407		$	15,407		$	14,717		$	14,717		$	14,475		$	14,475
Total risk-weighted assets	100,633			99,617			104,012			104,492			99,736			98,374			99,301			99,876			100,843			98,494
Tier 1 risk-based capital ratio	14.9		%	15.1		%	15.0		%	15.0		%	15.4		%	15.7		%	14.8		%	14.7		%	14.4		%	14.7		%

Total capital	$	17,191		$	17,248		$	17,794		$	17,869		$	17,560		$	17,632		$	15,909		$	15,967		$	15,542		$	15,617
Total risk-weighted assets	100,633			99,617			104,012			104,492			99,736			98,374			99,301			99,876			100,843			98,494
Total risk-based capital ratio	17.1		%	17.3		%	17.1		%	17.1		%	17.6		%	17.9		%	16.0		%	16.0		%	15.4		%	15.9		%

Tier 1 capital	$	15,032		$	15,032		$	15,642		$	15,642		$	15,407		$	15,407		$	14,717		$	14,717		$	14,475		$	14,475
Adjusted quarterly average assets	217,029			217,029			222,666			222,666			226,093			226,093			226,310			226,310			212,361			212,361
Tier 1 leverage ratio	6.9		%	6.9		%	7.0		%	7.0		%	6.8		%	6.8		%	6.5		%	6.5		%	6.8		%	6.8		%
⁽¹⁾CET1, tier 1 capital, total capital and tier 1 leverage ratios for each period above were calculated in conformity with the advanced approaches provisions of the Basel III final rule.
⁽²⁾ CET1, tier 1 capital, total capital, and tier 1 leverage ratios for each period above were calculated in conformity with the standardized approach provisions of the Basel III final rule.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF TANGIBLE COMMON EQUITY RATIO

The following table presents the calculation of State Street's ratios of tangible common equity to total tangible assets.
		Quarters
(Dollars in millions)		1Q16			2Q16			3Q16			4Q16			1Q17
Consolidated total assets		$	243,685		$	255,386		$	256,140		$	242,698		$	236,802
Less:
Goodwill		5,733			5,671			5,911			5,814			5,855
Other intangible assets		1,749			1,682			1,849			1,750			1,710
Cash balances held at central banks in excess of required reserves		58,639			67,710			67,571			62,037			59,780
Adjusted assets		177,564			180,323			180,809			173,097			169,457
Plus related deferred tax liabilities		698			688			685			655			649
Total tangible assets	A	$	178,262		$	181,011		$	181,494		$	173,752		$	170,106
Consolidated total common shareholders' equity		$	18,793		$	18,877		$	18,954		$	18,023		$	18,098
Less:
Goodwill		5,733			5,671			5,911			5,814			5,855
Other intangible assets		1,749			1,682			1,849			1,750			1,710
Adjusted equity		11,311			11,524			11,194			10,459			10,533
Plus related deferred tax liabilities		698			688			685			655			649
Total tangible common equity	B	$	12,009		$	12,212		$	11,879		$	11,114		$	11,182
Tangible common equity ratio	B/A	6.7		%	6.7		%	6.5		%	6.4		%	6.6		%



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF FULLY PHASED-IN CAPITAL RATIOS

Fully phased-in pro-forma estimates of common equity tier 1 capital include 100% of the accumulated other comprehensive income component of common shareholder’s equity, including accumulated other comprehensive income attributable to available-for-sale securities, cash flow hedges and defined benefit pension plans, as well as 100% of applicable deductions, including but not limited to, intangible assets net of deferred tax liabilities. Fully phased-in pro-forma estimates of tier 1 and total capital both reflect the transition of trust preferred capital securities from tier 1 capital to total capital. For both Basel III advanced and standardized approaches, fully phased-in pro-forma estimates of risk-weighted assets reflect the exclusion of intangible assets, offset by additions related to non-significant equity exposures and deferred tax assets related to temporary differences. All fully phased-in ratios are preliminary estimates, based on our interpretations of the Basel III final rule as of the date each such ratio was first announced publicly and as applied to our businesses and operations as of the date of such ratio.
The following tables reconcile our fully phased-in estimated pro-forma common equity tier 1 capital, tier 1 capital, total capital and tier 1 leverage ratios, calculated in conformity with the Basel III final rule, as of the dates indicated, to those same ratios calculated in conformity with the applicable regulatory requirements as of such dates.

As of March 31, 2017 (Dollars in millions)	Basel III Advanced Approaches			Phase-In Provisions			Basel III Advanced Approaches Fully Phased-In Pro-Forma Estimate			Basel III Standardized Approach			Phase-In Provisions			Basel III Standardized Approach Fully Phased-In Pro-Forma Estimate
Common equity tier 1 capital	$	11,319		$	(339	)	$	10,980		$	11,319		$	(339	)	$	10,980
Tier 1 capital	14,475			(299		)	14,176			14,475			(299		)	14,176
Total capital	15,542			(299		)	15,243			15,617			(299		)	15,318
Risk weighted assets	100,843			134			100,977			98,494			127			98,621
Adjusted average assets	212,361			(270		)	212,091			212,361			(270		)	212,091

Capital ratios:
Common equity tier 1 capital	11.2		%				10.9		%	11.5		%				11.1		%
Tier 1 capital	14.4						14.0			14.7						14.4
Total capital	15.4						15.1			15.9						15.5
Tier 1 leverage	6.8						6.7			6.8						6.7

As of December 31, 2016 (Dollars in millions)	Basel III Advanced Approaches			Phase-In Provisions			Basel III Advanced Approaches Fully Phased-In Pro-Forma Estimate			Basel III Standardized Approach			Phase-In Provisions			Basel III Standardized Approach Fully Phased-In Pro-Forma Estimate
Common equity tier 1 capital	$	11,624		$	(769	)	$	10,855		$	11,624		$	(769	)	$	10,855
Tier 1 capital	14,717			(666		)	14,051			14,717			(666		)	14,051
Total capital	15,909			(667		)	15,242			15,967			(667		)	15,300
Risk weighted assets	99,301			33			99,334			99,876			31			99,907
Adjusted average assets	226,310			(474		)	225,836			226,310			(474		)	225,836

Capital ratios:
Common equity tier 1 capital	11.7		%				10.9		%	11.6		%				10.9		%
Tier 1 capital	14.8						14.1			14.7						14.1
Total capital	16.0						15.3			16.0						15.3
Tier 1 leverage	6.5						6.2			6.5						6.2



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF FULLY PHASED-IN CAPITAL RATIOS (Continued)

As of September 30, 2016 (Dollars in millions)	Basel III Advanced Approaches			Phase-In Provisions			Basel III Advanced Approaches Fully Phased-In Pro-Forma Estimate			Basel III Standardized Approach			Phase-In Provisions			Basel III Standardized Approach Fully Phased-In Pro-Forma Estimate
Common equity tier 1 capital	$	12,269		$	(537	)	$	11,732		$	12,269		$	(537	)	$	11,732
Tier 1 capital	15,407			(479		)	14,928			15,407			(479		)	14,928
Total capital	17,560			(525		)	17,035			17,632			(525		)	17,107
Risk weighted assets	99,736			(528		)	99,208			98,374			(497		)	97,877
Adjusted average assets	226,093			(297		)	225,796			226,093			(297		)	225,796

Capital ratios:
Common equity tier 1 capital	12.3		%				11.8		%	12.5		%				12.0		%
Tier 1 capital	15.4						15.0			15.7						15.3
Total capital	17.6						17.2			17.9						17.5
Tier 1 leverage	6.8						6.6			6.8						6.6



As of June 30, 2016 (Dollars in millions)	Basel III Advanced Approaches			Phase-In Provisions			Basel III Advanced Approaches Fully Phased-In Pro-Forma Estimate			Basel III Standardized Approach			Phase-In Provisions			Basel III Standardized Approach Fully Phased-In Pro-Forma Estimate
Common equity tier 1 capital	$	12,518		$	(452	)	$	12,066		$	12,518		$	(452	)	$	12,066
Tier 1 capital	15,642			(393		)	15,249			15,642			(393		)	15,249
Total capital	17,794			(438		)	17,356			17,869			(438		)	17,431
Risk weighted assets	104,012			65			104,077			104,492			62			104,554
Adjusted average assets	222,666			(283		)	222,383			222,666			(283		)	222,383

Capital ratios:
Common equity tier 1 capital	12.0		%				11.6		%	12.0		%				11.5		%
Tier 1 capital	15.0						14.7			15.0						14.6
Total capital	17.1						16.7			17.1						16.7
Tier 1 leverage	7.0						6.9			7.0						6.9



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF FULLY PHASED-IN CAPITAL RATIOS (Continued)

As of March 31, 2016 (Dollars in millions)	Basel III Advanced Approaches			Phase-In Provisions			Basel III Advanced Approaches Fully Phased-In Pro-Forma Estimate			Basel III Standardized Approach			Phase-In Provisions			Basel III Standardized Approach Fully Phased-In Pro-Forma Estimate
Common equity tier 1 capital	$	12,404		$	(547	)	$	11,857		$	12,404		$	(547	)	$	11,857
Tier 1 capital	15,032			(486		)	14,546			15,032			(486		)	14,546
Total capital	17,191			(532		)	16,659			17,248			(532		)	16,716
Risk weighted assets	100,633			95			100,728			99,617			89			99,706
Adjusted average assets	217,029			(357		)	216,672			217,029			(357		)	216,672

Capital ratios:
Common equity tier 1 capital	12.3		%				11.8		%	12.5		%				11.9		%
Tier 1 capital	14.9						14.4			15.1						14.6
Total capital	17.1						16.5			17.3						16.8
Tier 1 leverage	6.9						6.7			6.9						6.7



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF SUPPLEMENTARY LEVERAGE RATIOS

In 2014, U.S. banking regulators issued final rules implementing a supplementary leverage ratio, or SLR, for certain bank holding companies, like State Street, and their insured depository institution subsidiaries, like State Street Bank. We refer to these final rules as the SLR final rule. Under the SLR final rule, upon implementation as of January 1, 2018, (i) State Street Bank must maintain an SLR of at least 6% to be well capitalized under the U.S. banking regulators’ Prompt Corrective Action framework and (ii) if State Street maintains an SLR of at least 5%, it is not subject to limitations on distribution and discretionary bonus payments under the SLR final rule. Beginning with reporting for March 31, 2015, State Street was required to include SLR disclosures with its other Basel disclosures.
Estimated pro forma fully phased-in SLR ratios for the periods below are preliminary estimates by State Street (in each case, fully phased-in as of January 1, 2018, as per the phase-in requirements of the SLR final rule), calculated based on our interpretations of the SLR final rule as of April 26, 2017 and as applied to our businesses and operations for the periods below.
The following tables reconcile our estimated pro forma fully-phased in SLR ratios for the periods below calculated in conformity with the SLR final rule, as described, to our SLR ratios calculated in conformity with applicable regulatory requirements as of the dates indicated.


	State Street							State Street Bank
As of March 31, 2017 (Dollars in millions)	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	14,475		A	$	14,176		$	15,492		$	15,206
On-and off-balance sheet leverage exposure	244,964				244,964			241,563			241,563
Less: regulatory deductions	(6,818		)		(7,087		)	(6,422		)	(6,683		)
Total assets for SLR	238,146			B	237,877			235,141			234,880
Supplementary Leverage Ratio	6.1		%	A/B	6.0		%	6.6		%	6.5		%


	State Street							State Street Bank
As of December 31, 2016 (Dollars in millions)	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	14,717		C	$	14,051		$	15,805		$	15,169
On-and off-balance sheet leverage exposure	257,509				257,509			253,487			253,487
Less: regulatory deductions	(6,476		)		(6,950		)	(6,078		)	(6,532		)
Total assets for SLR	251,033			D	250,559			247,409			246,955
Supplementary Leverage Ratio	5.9		%	C/D	5.6		%	6.4		%	6.1		%


	State Street							State Street Bank
As of September 30, 2016 (Dollars in millions)	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	15,407		E	$	14,928		$	15,817		$	15,374
On-and off-balance sheet leverage exposure	257,179				257,179			252,104			252,104
Less: regulatory deductions	(6,188		)		(6,485		)	(5,798		)	(6,072		)
Total assets for SLR	250,991			F	250,694			246,306			246,032
Supplementary Leverage Ratio	6.1		%	E/F	6.0		%	6.4		%	6.2		%



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF SUPPLEMENTARY LEVERAGE RATIOS (Continued)

	State Street							State Street Bank
As of June 30, 2016 (Dollars in millions)	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	15,642		G	$	15,249		$	15,742		$	15,385
On-and off-balance sheet leverage exposure	254,999				254,999			250,061			250,061
Less: regulatory deductions	(5,949		)		(6,232		)	(5,578		)	(5,835		)
Total assets for SLR	249,050			H	248,767			244,483			244,226
Supplementary Leverage Ratio	6.3		%	G/H	6.1		%	6.4		%	6.3		%


	State Street							State Street Bank
As of March 31, 2016 (Dollars in millions)	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	15,032		I	$	14,546		$	15,071		$	14,628
On-and off-balance sheet leverage exposure	247,923				247,923			243,043			243,043
Less: regulatory deductions	(6,130		)		(6,487		)	(5,751		)	(6,073		)
Total assets for SLR	241,793			J	241,436			237,292			236,970
Supplementary Leverage Ratio	6.2		%	I/J	6.0		%	6.4		%	6.2		%

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