State Street (STT) 8-K Results of Operations and Financial Condition

Exhibit 99.2

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
June 30, 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	16
Reconciliation of Tangible Common Equity Ratio	17
Reconciliations of Fully Phased-In Capital Ratios	18
Reconciliations of Supplementary Leverage Ratios	21

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

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED FINANCIAL HIGHLIGHTS
	Quarters																		% Change						Year-to-Date						% Change
(Dollars in millions, except per share amounts, or where otherwise noted)	1Q16			2Q16			3Q16			4Q16			1Q17			2Q17			2Q17 vs. 2Q16			2Q17 vs. 1Q17			2Q16			2Q17			YTD 2Q17 vs. YTD 2Q16
Revenue:
Fee revenue	$	1,970		$	2,053		$	2,079		$	2,014		$	2,198		$	2,235		8.9	%		1.7	%		$	4,023		$	4,433		10.2	%
Net interest income	512			521			537			514			510			575			10.4			12.7			1,033			1,085			5.0
Gains (losses) from sales of available-for-sale securities, net	2			(1		)	6			2			(40		)	—			nm			nm			1			(40		)	nm
Losses from other-than-temporary impairment, net	—			—			(2		)	—			—			—			—			—			—			—			—
Total revenue	2,484			2,573			2,620			2,530			2,668			2,810			9.2			5.3			5,057			5,478			8.3
Provision for loan losses	4			4			—			2			(2		)	3			(25.0	)		nm			8			1			(87.5	)
Total expenses	2,050			1,860			1,984			2,183			2,086			2,031			9.2			(2.6	)		3,910			4,117			5.3
Income before income tax expense	430			709			636			345			584			776			9.4			32.9			1,139			1,360			19.4
Income tax expense (benefit)	62			92			72			(248		)	82			156			69.6			90.2			154			238			54.5
Net income (loss) from non-controlling interest	—			2			(1		)	—			—			—			nm			—			2			—			nm
Net income	368			619			563			593			502			620			0.2			23.5			987			1,122			13.7
Net income available to common shareholders	$	319		$	585		$	507		$	557		$	446		$	584		(0.2	)		30.9			$	904		$	1,030		13.9
Diluted earnings per common share	$	.79		$	1.47		$	1.29		$	1.43		$	1.15		$	1.53		4.1			33.0			$	2.25		$	2.69		19.6
Average diluted common shares outstanding (in thousands)	403,615			398,847			393,212			389,046			386,417			380,915			(4.5	)		(1.4	)		401,113			383,489			(4.4	)
Cash dividends declared per common share	$	.34		$	.34		$	.38		$	.38		$	.38		$	.38		11.8			—			$	.68		$	.76		11.8
Closing price per share of common stock (as of quarter end)	58.52			53.92			69.63			77.72			79.61			89.73			66.4			12.7			53.92			89.73			66.4
Ratios:
Return on average common equity	6.8		%	12.4		%	10.6		%	12.1		%	9.9		%	12.6		%	20		bps	270		bps	9.6		%	11.3		%	170		bps
Pre-tax operating margin	17.3			27.6			24.3			13.6			21.9			27.6			—			570			22.5			24.8			230
Common equity tier 1 risk-based capital(1)	12.3			12.0			12.3			11.7			11.2			12.0			—			80			12.0			12.0			—
Tier 1 risk-based capital(1)	14.9			15.0			15.4			14.8			14.4			15.2			20			80			15.0			15.2			20
Total risk-based capital(1)	17.1			17.1			17.6			16.0			15.4			16.3			(80	)		90			17.1			16.3			(80	)
Tier 1 leverage(1)	6.9			7.0			6.8			6.5			6.8			7.0			—			20			7.0			7.0			—
Tangible common equity(2)	6.7			6.7			6.5			6.4			6.6			6.8			10			20			6.7			6.8			10
At quarter-end:
Assets under custody and administration (in trillions)(3)	$	26.94		$	27.79		$	29.18		$	28.77		$	29.83		$	31.04		11.7	%		4.1	%		$	27.79		$	31.04		11.7	%
Asset under management (in trillions)	2.30			2.30			2.45			2.47			2.56			2.61			13.5			2.0			2.30			2.61			13.5
Total assets	243,685			255,386			256,140			242,698			236,802			238,274			(6.7	)		0.6			255,386			238,274			(6.7	)
Investment securities	102,298			103,121			99,888			97,167			94,639			95,255			(7.6	)		0.7			103,121			95,255			(7.6	)
Deposits	185,516			193,130			198,766			187,163			183,465			181,416			(6.1	)		(1.1	)		193,130			181,416			(6.1	)
Long-term debt	10,323			11,924			11,834			11,430			11,394			11,737			(1.6	)		3.0			11,924			11,737			(1.6	)
Total shareholders' equity	21,496			22,073			22,150			21,219			21,294			22,068			—			3.6			22,073			22,068			—
(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 Regulatory Capital within this package for additional information about our regulatory capital ratios for each period.
(2) Tangible common equity ratio is a non-GAAP measure. Refer to the Reconciliation of Tangible Common Equity Ratio within this package for additional information.
(3) Included assets under custody of $20.79 trillion, $21.35 trillion, $21.91 trillion, $21.73 trillion, $22.51 trillion and $23.36 trillion as of March 31, 2016, June 30, 2016, September 30, 2016, December 31, 2016, March 31, 2017 and June 30, 2017, respectively.
nm Not meaningful

1

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED RESULTS OF OPERATIONS
	Quarters																		% Change				Year-to-Date						% Change
(Dollars in millions, except per share amounts, or where otherwise noted)	1Q16			2Q16			3Q16			4Q16			1Q17			2Q17			2Q17 vs. 2Q16		2Q17 vs. 1Q17		2Q16			2Q17			YTD 2Q17 vs. YTD 2Q16
Reported Results
Fee revenue:
Servicing fees	$	1,242		$	1,239		$	1,303		$	1,289		$	1,296		$	1,339		8.1	%	3.3	%	$	2,481		$	2,635		6.2	%
Management fees	270			293			368			361			382			397			35.5		3.9		563			779			38.4
Trading services:
Direct sales and trading	90			87			94			115			98			100			14.9		2.0		177			198			11.9
Indirect foreign exchange trading(1)	66			70			65			67			66			78			11.4		18.2		136			144			5.9
Total foreign exchange trading	156			157			159			182			164			178			13.4		8.5		313			342			9.3
Electronic foreign exchange services	44			43			41			41			41			39			(9.3	)	(4.9	)	87			80			(8.0	)
Other trading, transition management and brokerage	72			67			67			70			70			72			7.5		2.9		139			142			2.2
Total brokerage and other trading services	116			110			108			111			111			111			0.9		—		226			222			(1.8	)
Total trading services	272			267			267			293			275			289			8.2		5.1		539			564			4.6
Securities finance	134			156			136			136			133			179			14.7		34.6		290			312			7.6
Processing fees and other	52			98			5			(65		)	112			31			(68.4	)	(72.3	)	150			143			(4.7	)
Total fee revenue	1,970			2,053			2,079			2,014			2,198			2,235			8.9		1.7		4,023			4,433			10.2
Net interest income:
Interest income	629			620			647			616			650			700			12.9		7.7		1,249			1,350			8.1
Interest expense	117			99			110			102			140			125			26.3		(10.7	)	216			265			22.7
Net interest income	512			521			537			514			510			575			10.4		12.7		1,033			1,085			5.0
Gains (losses) related to investment securities, net:
Gains (losses) from sales of available-for-sale securities, net	2			(1		)	6			2			(40		)	—							1			(40		)
Losses from other-than-temporary impairment, net	—			—			(2		)	—			—			—							—			—
Gains (losses) related to investment securities, net	2			(1		)	4			2			(40		)	—			nm		nm		1			(40		)	nm
Total revenue	2,484			2,573			2,620			2,530			2,668			2,810			9.2		5.3		5,057			5,478			8.3
Provision for loan losses	4			4			—			2			(2		)	3			(25.0	)	nm		8			1			(87.5	)
Expenses:
Compensation and employee benefits	1,107			989			1,013			1,244			1,166			1,071			8.3		(8.1	)	2,096			2,237			6.7
Information systems and communications	272			270			285			278			287			283			4.8		(1.4	)	542			570			5.2
Transaction processing services	200			201			200			199			197			207			3.0		5.1		401			404			0.7
Occupancy	113			111			107			109			110			116			4.5		5.5		224			226			0.9
Acquisition and restructuring costs	104			20			42			43			29			71			255.0		144.8		124			100			(19.4	)
Other	254			269			337			310			297			283			5.2		(4.7	)	523			580			10.9
Total expenses	2,050			1,860			1,984			2,183			2,086			2,031			9.2		(2.6	)	3,910			4,117			5.3
Income before income tax expense	430			709			636			345			584			776			9.4		32.9		1,139			1,360			19.4
Income tax expense (benefit)	62			92			72			(248		)	82			156			69.6		90.2		154			238			54.5
Net income (loss) from non-controlling interest	—			2			(1		)	—			—			—			nm		—		2			—			nm
Net income	$	368		$	619		$	563		$	593		$	502		$	620		0.2		23.5		$	987		$	1,122		13.7
Effective tax rate	14.4		%	12.9		%	11.4		%	(72.3		)%	14.0		%	20.1		%					13.5		%	17.5		%

2

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED RESULTS OF OPERATIONS (Continued)
	Quarters																		% Change						Year-to-Date						% Change
(Dollars in millions, except per share amounts, or where otherwise noted)	1Q16			2Q16			3Q16			4Q16			1Q17			2Q17			2Q17 vs. 2Q16			2Q17 vs. 1Q17			2Q16			2Q17			YTD 2Q17 vs. YTD 2Q16
Adjustments to net income:
Dividends on preferred stock	$	(49	)	$	(33	)	$	(55	)	$	(36	)	$	(55	)	$	(36	)	9.1	%		(34.5	)%		$	(82	)	$	(91	)	11.0	%
Earnings allocated to participating securities	—			(1		)	(1		)	—			(1		)	—			nm			nm			(1		)	(1		)	—
Net income available to common shareholders	$	319		$	585		$	507		$	557		$	446		$	584		(0.2	)		30.9			$	904		$	1,030		13.9
Earnings per common share:
Basic	$	.80		$	1.48		$	1.31		$	1.45		$	1.17		$	1.56		5.4			33.3			$	2.28		$	2.72		19.3
Diluted	.79			1.47			1.29			1.43			1.15			1.53			4.1			33.0			2.25			2.69			19.6
Average common shares outstanding:
Basic	399,421			394,160			388,358			384,115			381,224			375,395			(4.8	)		(1.5	)		396,790			378,293			(4.7	)
Diluted	403,615			398,847			393,212			389,046			386,417			380,915			(4.5	)		(1.4	)		401,113			383,489			(4.4	)
Cash dividends declared per common share	$	.34		$	.34		$	.38		$	.38		$	.38		$	.38		11.8			—			$	.68		$	.76		11.8
Closing price per share of common stock (as of quarter end)	58.52			53.92			69.63			77.72			79.61			89.73			66.4			12.7			53.92			89.73			66.4
Financial ratios:
Return on average common equity	6.8		%	12.4		%	10.6		%	12.1		%	9.9		%	12.6		%	20		bps	270		bps	9.6		%	11.3		%	170		bps
Pre-tax operating margin	17.3			27.6			24.3			13.6			21.9			27.6			—			570			22.5			24.8			230
After-tax margin	12.8			22.7			19.4			22.0			16.7			20.8			(190	)		410			17.9			18.8			90
Common dividend payout ratio	42.5			22.7			28.9			26.1			32.1			24.4			7.5	%		(24.0	)%		29.7			27.7			(6.7	)%
(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

3

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			2Q17			2Q17 vs. 2Q16		2Q17 vs. 1Q17
Assets:
Cash and due from banks	$	3,735		$	4,673		$	3,490		$	1,314		$	2,909		$	3,156		(32.5	)%	8.5	%
Interest-bearing deposits with banks	65,032			75,169			79,090			70,935			66,789			63,617			(15.4	)	(4.7	)
Securities purchased under resale agreements	3,722			2,010			2,442			1,956			2,181			3,172			57.8		45.4
Trading account assets	873			890			1,063			1,024			945			896			0.7		(5.2	)
Investment securities:
Investment securities available-for-sale	71,086			72,735			71,520			61,998			58,810			59,025			(18.8	)	0.4
Investment securities held-to-maturity(1)	31,212			30,386			28,368			35,169			35,829			36,230			19.2		1.1
Total investment securities	102,298			103,121			99,888			97,167			94,639			95,255			(7.6	)	0.7
Loans and leases, net(2)	19,140			19,788			21,451			19,704			22,486			24,307			22.8		8.1
Premises and equipment, net(3)	1,949			1,994			2,042			2,062			2,101			2,137			7.2		1.7
Accrued interest and fees receivable	2,371			2,399			2,594			2,644			2,690			2,805			16.9		4.3
Goodwill	5,733			5,671			5,911			5,814			5,855			5,945			4.8		1.5
Other intangible assets	1,749			1,682			1,849			1,750			1,710			1,693			0.7		(1.0	)
Other assets	37,083			37,989			36,320			38,328			34,497			35,291			(7.1	)	2.3
Total assets	$	243,685		$	255,386		$	256,140		$	242,698		$	236,802		$	238,274		(6.7	)	0.6
Liabilities:
Deposits:
Non-interest-bearing	$	54,248		$	57,268		$	60,545		$	59,397		$	56,786		$	50,957		(11.0	)	(10.3	)
Interest-bearing -- U.S.	31,159			33,060			33,767			30,911			26,746			24,438			(26.1	)	(8.6	)
Interest-bearing -- Non-U.S.	100,109			102,802			104,454			96,855			99,933			106,021			3.1		6.1
Total deposits	185,516			193,130			198,766			187,163			183,465			181,416			(6.1	)	(1.1	)
Securities sold under repurchase agreements	4,224			4,350			4,364			4,400			4,003			3,856			(11.4	)	(3.7	)
Other short-term borrowings	1,706			1,712			1,413			1,585			1,177			1,465			(14.4	)	24.5
Accrued expenses and other liabilities	20,388			22,166			17,582			16,901			15,469			17,732			(20.0	)	14.6
Long-term debt	10,323			11,924			11,834			11,430			11,394			11,737			(1.6	)	3.0
Total liabilities	222,157			233,282			233,959			221,479			215,508			216,206			(7.3	)	0.3
Shareholders' equity:
Preferred stock, no par, 3,500,000 shares authorized:
Series C, 5,000 shares issued and outstanding	491			491			491			491			491			491			—		—
Series D, 7,500 shares issued and outstanding	742			742			742			742			742			742			—		—
Series E, 7,500 shares issued and outstanding	728			728			728			728			728			728			—		—
Series F, 7,500 shares issued and outstanding	742			742			742			742			742			742			—		—
Series G, 5,000 shares issued and outstanding	—			493			493			493			493			493			—		—
Common stock, $1 par, 750,000,000 shares authorized(4)	504			504			504			504			504			504			—		—
Surplus	9,739			9,767			9,778			9,782			9,796			9,803			0.4		0.1
Retained earnings	16,233			16,686			17,047			17,459			17,762			18,202			9.1		2.5
Accumulated other comprehensive income (loss)	(964		)	(997		)	(993		)	(2,040		)	(1,805		)	(1,270		)	27.4		(29.6	)
Treasury stock, at cost(5)	(6,719		)	(7,083		)	(7,382		)	(7,682		)	(8,159		)	(8,367		)	18.1		2.5
Total shareholders' equity	21,496			22,073			22,150			21,219			21,294			22,068			—		3.6
Non-controlling interest-equity	32			31			31			—			—			—			nm		—
Total equity	21,528			22,104			22,181			21,219			21,294			22,068			(0.2	)	3.6
Total liabilities and equity	$	243,685		$	255,386		$	256,140		$	242,698		$	236,802		$	238,274		(6.7	)	0.6
nm Not meaningful
	1Q16			2Q16			3Q16			4Q16			1Q17			2Q17
(1) Fair value of investment securities held-to-maturity	$	31,555		$	30,895		$	28,780		$	34,994		$	35,694		$	36,169
(2) Allowance for loan losses	47			51			51			53			51			54
(3) Accumulated depreciation for premises and equipment	4,929			3,164			3,271			3,333			3,463			3,611
(4) Common stock shares issued	503,879,642			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			129,773,003

4

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
AVERAGE AND PERIOD-END BALANCE SHEET TRENDS
	Quarters												% Change
Average Balance Sheet Mix	1Q16		2Q16		3Q16		4Q16		1Q17		2Q17		2Q17 vs. 2Q16		2Q17 vs. 1Q17
Investment securities and short-duration instruments	78.5	%	78.4	%	78.7	%	78.2	%	78.3	%	77.8	%	(0.8	)%	(0.6	)%
Loans and leases	8.3		8.1		8.0		8.6		9.2		9.4		16.0		2.2
Non-interest-earning assets	13.2		13.5		13.3		13.2		12.5		12.8		(5.2	)	2.4
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Client funds bearing interest	59.0	%	60.2	%	60.3	%	58.8	%	59.9	%	60.7	%	0.8		1.3
Client funds not bearing interest	20.1		18.3		19.1		20.5		20.2		18.9		3.3		(6.4	)
Other non-interest-bearing liabilities	6.3		7.0		6.0		6.4		4.8		5.6		(20.0	)	16.7
Long-term debt and common shareholders' equity	13.4		13.1		13.2		12.9		13.6		13.4		2.3		(1.5	)
Preferred shareholders' equity	1.2		1.4		1.4		1.4		1.5		1.4		—		(6.7	)
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

(Dollars in millions)	Quarters												% Change
Average Asset Backed Securities	1Q16		2Q16		3Q16		4Q16		1Q17		2Q17		2Q17 vs. 2Q16		2Q17 vs. 1Q17
Fixed	$	2,045	$	2,023	$	1,904	$	1,702	$	1,285	$	1,137	(43.8	)%	(11.5	)%
Floating	24,795		24,313		22,988		22,470		21,324		22,230		(8.6	)	4.2
Total	$	26,840	$	26,336	$	24,892	$	24,172	$	22,609	$	23,367

(Dollars in millions)	Quarters																	% Change
Investment Securities - Appreciation (Depreciation)	1Q16			2Q16			3Q16		4Q16			1Q17			2Q17			2Q17 vs. 2Q16		2Q17 vs. 1Q17
Held-to-maturity:
Amortized cost (book value)	$	31,212		$	30,386		$	28,368	$	35,169		$	35,829		$	36,230		19.2	%	1.1	%
Fair value	31,555			30,895			28,780		34,994			35,694			36,169			17.1		1.3
Appreciation (depreciation)	343			509			412		(175		)	(135		)	(61		)	(112.0	)	(54.8	)
Available-for-sale:
Amortized cost	70,366			71,720			70,795		61,912			58,658			58,714			(18.1	)	0.1
Fair value (book value)	71,086			72,735			71,520		61,998			58,810			59,025			(18.8	)	0.4
Appreciation (depreciation)	720			1,015			725		86			152			311			(69.4	)	104.6
Pre-tax appreciation (depreciation) related to securities available-for-sale transferred to held-to-maturity	(193		)	(197		)	35		(194		)	(41		)	(35		)	(82.2	)	(14.6	)
Net pre-tax appreciation (depreciation) related to investment securities portfolio	870			1,327			1,172		(283		)	(24		)	215			(83.8	)	(995.8	)
Net after-tax appreciation (depreciation) related to investment securities portfolio	522			796			703		(170		)	(14		)	129			(83.8	)	(1,021.4	)

(Dollars in billions)	Quarters												% Change
Securities on Loan	1Q16		2Q16		3Q16		4Q16		1Q17		2Q17		2Q17 vs. 2Q16		2Q17 vs. 1Q17
Average securities on loan	$	334	$	348	$	347	$	353	$	368	$	384	10.3	%	4.3	%
End-of-period securities on loan	341		348		348		364		378		376		8.0		(0.5	)

5

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ASSETS UNDER CUSTODY AND ADMINISTRATION
	Quarters												% Change
(Dollars in billions)	1Q16		2Q16		3Q16		4Q16		1Q17		2Q17		2Q17 vs. 2Q16		2Q17 vs. 1Q17
Assets Under Custody and Administration
By Product Classification:
Mutual funds	$	6,728	$	6,734	$	6,906	$	6,841	$	7,033	$	7,123	5.8	%	1.3	%
Collective funds, including ETFs	7,000		7,234		7,541		7,501		8,024		8,560		18.3		6.7
Pension products	5,197		5,496		5,671		5,584		5,775		5,937		8.0		2.8
Insurance and other products	8,018		8,322		9,060		8,845		9,001		9,417		13.2		4.6
Total Assets Under Custody and Administration	$	26,943	$	27,786	$	29,178	$	28,771	$	29,833	$	31,037	11.7		4.0
By Financial Instrument:
Equities	$	14,433	$	14,960	$	16,012	$	15,833	$	16,651	$	17,304	15.7		3.9
Fixed-income	9,199		9,530		9,891		9,665		9,786		10,117		6.2		3.4
Short-term and other investments	3,311		3,296		3,275		3,273		3,396		3,616		9.7		6.5
Total Assets Under Custody and Administration	$	26,943	$	27,786	$	29,178	$	28,771	$	29,833	$	31,037	11.7		4.0
By Geographic Location(1):
North America	$	20,505	$	21,072	$	21,561	$	21,544	$	22,361	$	23,020	9.2		2.9
Europe/Middle East/Africa	5,159		5,356		6,107		5,734		5,979		6,464		20.7		8.1
Asia/Pacific	1,279		1,358		1,510		1,493		1,493		1,553		14.4		4.0
Total Assets Under Custody and Administration	$	26,943	$	27,786	$	29,178	$	28,771	$	29,833	$	31,037	11.7		4.0
Assets Under Custody(2)
By Product Classification:
Mutual funds	$	6,363	$	6,361	$	6,461	$	6,395	$	6,499	$	6,577	3.4		1.2
Collective funds, including ETFs	5,589		5,788		6,080		6,100		6,601		7,107		22.8		7.7
Pension products	4,673		4,947		5,107		5,039		5,212		5,399		9.1		3.6
Insurance and other products	4,163		4,258		4,262		4,191		4,193		4,279		0.5		2.1
Total Assets Under Custody	$	20,788	$	21,354	$	21,910	$	21,725	$	22,505	$	23,362	9.4		3.8
By Geographic Location(1):
North America	$	16,420	$	16,756	$	17,074	$	17,083	$	17,747	$	18,223	8.8		2.7
Europe/Middle East/Africa	3,422		3,584		3,698		3,508		3,635		3,969		10.7		9.2
Asia/Pacific	946		1,014		1,138		1,134		1,123		1,170		15.4		4.2
Total Assets Under Custody	$	20,788	$	21,354	$	21,910	$	21,725	$	22,505	$	23,362	9.4		3.8
(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.

6

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ASSETS UNDER MANAGEMENT
	Quarters												% Change
(Dollars in billions)	1Q16		2Q16		3Q16		4Q16		1Q17		2Q17		2Q17 vs. 2Q16		2Q17 vs. 1Q17
Assets Under Management
By Asset Class and Investment Approach:
Equity:
Active	$	32	$	32	$	70	$	73	$	77	$	82	156.3	%	6.5	%
Passive	1,295		1,275		1,340		1,401		1,482		1,512		18.6		2.0
Total Equity	1,327		1,307		1,410		1,474		1,559		1,594		22.0		2.2
Fixed-Income:
Active	17		17		73		70		69		71		317.6		2.9
Passive	310		318		318		308		312		327		2.8		4.8
Total Fixed-Income	327		335		391		378		381		398		18.8		4.5
Cash(1)	381		380		351		333		335		334		(12.1	)	(0.3	)
Multi-Asset-Class Solutions:
Active	17		17		19		19		19		18		5.9		(5.3	)
Passive	92		100		106		107		113		113		13.0		—
Total Multi-Asset-Class Solutions	109		117		125		126		132		131		12.0		(0.8	)
Alternative Investments(2):
Active	18		18		29		28		26		27		50.0		3.8
Passive	134		144		140		129		128		122		(15.3	)	(4.7	)
Total Alternative Investments	152		162		169		157		154		149		(8.0	)	(3.2	)
Total Assets Under Management	$	2,296	$	2,301	$	2,446	$	2,468	$	2,561	$	2,606	13.3		1.8
By Geographic Location(3):
North America	$	1,491	$	1,501	$	1,641	$	1,691	$	1,772	$	1,802	20.1		1.7
Europe/Middle East/Africa	496		492		495		482		486		496		0.8		2.1
Asia/Pacific	309		308		310		295		303		308		—		1.7
Total Assets Under Management	$	2,296	$	2,301	$	2,446	$	2,468	$	2,561	$	2,606	13.3		1.8
(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	$	46	(14.8	)%	—	%
Cash	3		2		2		2		2		2		—		—
Equity	349		348		370		426		457		460		32.2		0.7
Fixed-income	46		48		52		51		53		58		20.8		9.4
Total Exchange-Traded Funds	$	443	$	452	$	478	$	521	$	558	$	566	25.2		1.4
(1)  Exchange-traded funds are a component of assets under management presented above.

7

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO HOLDINGS BY ASSET CLASS
June 30, 2017	Ratings
(Dollars in billions, or where otherwise noted)	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	72		%	15		%	9		%	4		%	—		%	—		%	—		%	$	25.0	26.3	%	$	23		98% / 2%
Asset-backed securities	—			70			19			3			5			3			—			23.7		24.9		50			5% / 95%
Student loans	—			40			37			2			15			6			—			8.6		36.3		(2		)
Credit cards	—			100			—			—			—			—			—			3.1		13.1		(9		)
Auto & equipment	—			84			12			4			—			—			—			2.1		8.9		3
Non-U.S. residential mortgage backed securities	—			86			9			3			—			2			—			8.0		33.7		57
Collateralized loan obligation	—			100			—			—			—			—			—			1.2		5.1		4
Sub-prime	—			10			16			18			4			52			—			0.3		1.2		(4		)
Other	—			27			73			—			—			—			—			0.4		1.7		1
Mortgage-backed securities	95			4			—			—			—			1			—			22.4		23.6		(123		)	92% / 8%
Agency MBS	100			—			—			—			—			—			—			21.2		94.6		(134		)
Non-Agency MBS	—			74			1			1			5			18			1			1.2		5.4		11
CMBS	46			54			—			—			—			—			—			4.8		5.1		(12		)	68% / 32%
Corporate bonds	—			—			13			50			36			1			—			4.1		4.3		—			91% / 9%
Covered bonds	—			100			—			—			—			—			—			4.0		4.2		14			13% / 87%
Municipal bonds	—			33			62			5			—			—			—			8.0		8.4		157			100% / 0%
Clipper tax-exempt bonds/other	—			43			40			14			1			—			2			3.0		3.2		20			33% / 67%
Total Portfolio	44		%	33		%	14		%	5		%	3		%	1		%	—		%	$	95.0	100.0	%	$	129		66% / 34%
Book Value	$	41.5		$	31.5		$	13.4		$	4.6		$	2.9		$	1.0		$	0.1		$	95.0
(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 June 30, 2017 the after-tax unrealized MTM gain/(loss) includes after-tax unrealized gain on securities available-for-sale of $187 million, after-tax unrealized loss on securities held-to-maturity of $(37) million and after-tax unrealized loss primarily related to securities previously transferred from available-for-sale to held to maturity of $(21) million.

8

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO NON-U.S. INVESTMENTS
				Book Value (In billions)
June 30, 2017	Book Value (In billions)		Average Rating	Gov't/Agency(1)		ABS FRMBS		ABS All Other		Corporate Bonds		Covered Bonds		Other
United Kingdom	$	6.0	AAA	$	—	$	3.6	$	1.4	$	0.3	$	0.7	$	—
Australia	4.9		AAA	0.8		1.9		0.3		0.3		0.6		1.0
Canada	3.7		AAA	2.5		—		—		0.1		1.1		—
Netherlands	1.6		AAA	—		1.3		—		0.2		0.1		—
France	1.6		AA	0.8		0.1		0.2		0.2		0.3		—
Japan	1.1		A	1.1		—		—		—		—		—
Italy	0.9		AA	0.1		0.5		0.3		—		—		—
Belgium	0.8		AA	0.5		0.1		—		—		0.2		—
Germany	0.8		AAA	0.1		—		0.7		—		—		—
Hong Kong	0.6		AA	0.6		—		—		—		—		—
Spain	0.6		AA	—		0.3		0.3		—		—		—
Norway	0.5		AAA	—		—		—		—		0.5		—
Sweden	0.4		AAA	—		—		—		0.1		0.3		—
Singapore	0.3		AAA	0.3		—		—		—		—		—
Other	0.8		AA	0.2		0.2		0.1		0.1		0.2		—
Total Non-U.S. Investments(2)	$	24.6		$	7.0	$	8.0	$	3.3	$	1.3	$	4.0	$	1.0
U.S. Investments	70.4
Total Portfolio	$	95.0
(1) Sovereign debt is reflected in the government agency column.
(2) Country of collateral used except for corporates where country of issuer is used.

9

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, operating-basis results included a pre-tax gain of approximately $30 million on the sale of our transfer agency joint venture interests. In the first and second quarters of 2017, operating-basis results included $5 million and $6 million, respectively, of discount accretion. These changes resulted in total increases in operating-basis revenue of $35 million and $6 million in the first and second quarters of 2017, respectively, relative to our historical operating-basis presentation. Note that in the second quarter of 2016, operating-basis results excluded a pre-tax gain of approximately $53 million on the sale of the WM/Reuters business. 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.

10

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF OPERATING-BASIS (NON-GAAP) FINANCIAL INFORMATION (Continued)
		Quarters																		% Change						Year-to-Date						% Change
(Dollars in millions, except per share amounts, or where otherwise noted)		1Q16			2Q16			3Q16			4Q16			1Q17			2Q17			2Q17 vs. 2Q16			2Q17 vs. 1Q17			2Q16			2Q17			YTD 2Q17 vs. YTD 2Q16
Total Revenue(1)(2)(3):
Total revenue, GAAP-basis		$	2,484		$	2,573		$	2,620		$	2,530		$	2,668		$	2,810		9.2	%		5.3	%		$	5,057		$	5,478		8.3	%
	Adjustment to processing fees and other revenue (see below)	63			34			134			186			70			89									97			159
	Adjustment to net interest income (see below)	27			25			—			33			43			42									52			85
	Adjustment to servicing and management fee revenue (see below)	—			43			—			—			—			—									43			—
Total revenue, operating-basis		$	2,574		$	2,675		$	2,754		$	2,749		$	2,781		$	2,941		9.9			5.8			$	5,249		$	5,722		9.0
Fee Revenue(1)(3):
Total fee revenue, GAAP-basis		$	1,970		$	2,053		$	2,079		$	2,014		$	2,198		$	2,235		8.9			1.7			$	4,023		$	4,433		10.2
	Tax-equivalent adjustment associated with tax-advantaged investments	63			87			134			186			70			89									150			159
	Gain on sale of WM/Reuters Business	—			(53		)	—			—			—			—									(53		)	—
	Expense billing matter, net	—			43			—			—			—			—									43			—
Total fee revenue, operating-basis		$	2,033		$	2,130		$	2,213		$	2,200		$	2,268		$	2,324		9.1			2.5			$	4,163		$	4,592		10.3
Servicing Fees:
Total servicing fees, GAAP-basis		$	1,242		$	1,239		$	1,303		$	1,289		$	1,296		$	1,339		8.1			3.3			$	2,481		$	2,635		6.2
	Expense billing matter	—			48			—			—			—			—									48			—
Total servicing fees, operating-basis		$	1,242		$	1,287		$	1,303		$	1,289		$	1,296		$	1,339		4.0			3.3			$	2,529		$	2,635		4.2
Management Fees:
Total management fees, GAAP-basis		$	270		$	293		$	368		$	361		$	382		$	397		35.5			3.9			$	563		$	779		38.4
	Expense billing matter	—			(5		)	—			—			—			—									(5		)	—
Total management fees, operating-basis		$	270		$	288		$	368		$	361		$	382		$	397		37.8			3.9			$	558		$	779		39.6
Processing Fees and Other Revenue(1):
Total processing fees and other revenue, GAAP-basis		$	52		$	98		$	5		$	(65	)	$	112		$	31		(68.4	)		(72.3	)		$	150		$	143		(4.7	)
	Tax-equivalent adjustment associated with tax-advantaged investments	63			87			134			186			70			89									150			159
	Gain on sale of WM/Reuters Business	—			(53		)	—			—			—			—									(53		)	—
Total processing fees and other revenue, operating-basis		$	115		$	132		$	139		$	121		$	182		$	120		(9.1	)		(34.1	)		$	247		$	302		22.3
Net Interest Income & Net Interest Margin(2)(4):
Net interest income, GAAP-basis		$	512		$	521		$	537		$	514		$	510		$	575		10.4	%		12.7	%		$	1,033		$	1,085		5.0	%
	Tax-equivalent adjustment associated with tax-exempt investment securities	42			40			42			43			43			42									82			85
Net interest income, fully taxable-equivalent basis		$	554		$	561		$	579		$	557		$	553		$	617								$	1,115		$	1,170
	Average interest earning assets	194,081			198,243			202,155			202,194			191,840			195,287									196,162			193,573
Net interest margin, fully taxable-equivalent basis		1.15		%	1.14		%	1.14		%	1.09		%	1.17		%	1.27		%	13		bps	10		bps	1.14		%	1.22		%	8		bps
Net interest income, fully taxable-equivalent basis		$	554		$	561		$	579		$	557		$	553		$	617								$	1,115		$	1,170
	Discount accretion associated with former conduit securities	(15		)	(15		)	(42		)	(10		)	—			—									(30		)	—
Net interest income, operating-basis		$	539		$	546		$	537		$	547		$	553		$	617		13.0	%		11.6	%		$	1,085		$	1,170		7.8	%
	Average interest earning assets	194,081			198,243			202,155			202,194			191,840			195,287									196,162			193,573
Net interest margin, operating-basis		1.12		%	1.11		%	1.06		%	1.08		%	1.17		%	1.27		%	16		bps	10		bps	1.11		%	1.22		%	11		bps
	Effect of discount accretion	0.03		%	0.03		%	0.08		%	0.01		%	—		%	—		%							0.03		%	—		%

11

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF OPERATING-BASIS (NON-GAAP) FINANCIAL INFORMATION (Continued)
		Quarters																		% Change							Year-to-Date						% Change
(Dollars in millions, except per share amounts, or where otherwise noted)		1Q16			2Q16			3Q16			4Q16			1Q17			2Q17			2Q17 vs. 2Q16			2Q17 vs. 1Q17				2Q16			2Q17			YTD 2Q17 vs. YTD 2Q16
Expenses(3):
Total expenses, GAAP-basis		$	2,050		$	1,860		$	1,984		$	2,183		$	2,086		$	2,031		9.2	%		(2.6	)%			$	3,910		$	4,117		5.3	%
	Severance costs associated with staffing realignment	(3		)	3			9			2			—			—										—			—
	Provisions for legal contingencies	—			—			(42		)	1			—			—										—			—
	Expense billing matter, net	—			(15		)	—			—			—			—										(15		)	—
	Acquisition costs	(7		)	(7		)	(33		)	(22		)	(12		)	(9		)								(14		)	(21		)
	Restructuring charges, net	(97		)	(13		)	(9		)	(21		)	(17		)	(62		)								(110		)	(79		)
Total expenses, operating-basis		$	1,943		$	1,828		$	1,909		$	2,143		$	2,057		$	1,960		7.2			(4.7	)			$	3,771		$	4,017		6.5
Compensation and Employee Benefits Expenses:
Total compensation and employee benefits expenses, GAAP-basis		$	1,107		$	989		$	1,013		$	1,244		$	1,166		$	1,071		8.3			(8.1	)			$	2,096		$	2,237		6.7
	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		$	1,071		8.0			(8.1	)			$	2,096		$	2,237		6.7
Other Expenses:
Total other expenses, GAAP-basis		$	254		$	269		$	337		$	310		$	297		$	283		5.2			(4.7	)			$	523		$	580		10.9
	Provisions for legal contingencies	—			—			(42		)	1			—			—										—			—
	Expense billing matter, net	—			(15		)	—			—			—			—										(15		)	—
Total other expenses, operating-basis		$	254		$	254		$	295		$	311		$	297		$	283		11.4			(4.7	)			$	508		$	580		14.2
Income Before Income Tax Expense:
Income before income tax expense, GAAP-basis		$	430		$	709		$	636		$	345		$	584		$	776		9.4			32.9				$	1,139		$	1,360		19.4
	Net pre-tax effect of non-operating adjustments to revenue and expenses	197			134			209			259			142			202										331			344
Income before income tax expense, operating-basis		$	627		$	843		$	845		$	604		$	726		$	978		16.0			34.7				$	1,470		$	1,704		15.9
Pre-tax operating margin(5):
Pre-tax operating margin, GAAP-basis		17.3		%	27.6		%	24.3		%	13.6		%	21.9		%	27.6		%	—		bps	570		bps	4.6	22.5		%	24.8		%	230		bps
	Net effect of non-operating adjustments	7.1			3.9			6.4			8.4			4.2			5.7										5.5			5.0
Pre-tax operating margin, operating-basis		24.4		%	31.5		%	30.7		%	22.0		%	26.1		%	33.3		%	180		bps	720		bps	1.7	28.0		%	29.8		%	180		bps
Income Tax Expense:
Income tax expense (benefit), GAAP-basis		$	62		$	92		$	72		$	(248	)	$	82		$	156		69.6	%		90.2	%			$	154		$	238		54.5	%
	Aggregate tax-equivalent adjustments	105			127			176			229			113			131										232			244
	Net tax effect of non-operating adjustments	15			10			8			10			7			20										25			27
Income tax expense (benefit), operating-basis		$	182		$	229		$	256		$	(9	)	$	202		$	307		34.1			52.0				$	411		$	509		23.8
Effective Tax Rate:
Income before income tax expense, operating-basis		$	627		$	843		$	845		$	604		$	726		$	978		16.0			34.7				$	1,470		$	1,704		15.9
Income tax expense, operating-basis		182			229			256			(9		)	202			307										411			509
Effective tax rate, operating-basis		29.1		%	27.0		%	30.3		%	(1.5		)%	27.8		%	31.4		%	440		bps	360		bps		27.9		%	29.9		%	200		bps
Net Income Available to Common Shareholders:
Net income available to common shareholders, GAAP-basis		$	319		$	585		$	507		$	557		$	446		$	584		(0.2	)%		30.9	%			$	904		$	1,030		13.9	%
	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			51										74			73
Net income available to common shareholders, operating-basis		$	396		$	582		$	532		$	577		$	468		$	635		9.1			35.7				$	978		$	1,103		12.8

12

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF OPERATING-BASIS (NON-GAAP) FINANCIAL INFORMATION (Continued)
		Quarters																		% Change						Year-to-Date						% Change
(Dollars in millions, except per share amounts, or where otherwise noted)		1Q16			2Q16			3Q16			4Q16			1Q17			2Q17			2Q17 vs. 2Q16			2Q17 vs. 1Q17			2Q16			2Q17			YTD 2Q17 vs. YTD 2Q16
Diluted Earnings per Common Share(1)(2):
Diluted earnings per common share, GAAP-basis		$	.79		$	1.47		$	1.29		$	1.43		$	1.15		$	1.53		4.1	%		33.0	%		$	2.25		$	2.69		19.6	%
	Severance costs associated with staffing realignment	.01			(.01		)	(.01		)	—			—			—									—			—
	Provisions for legal contingencies	—			—			.11			.02			—			—									—			—
	Expense billing matter, net	—			.10			—			—			—			—									.10			—
	Acquisition costs	.01			.01			.05			.03			.02			.02									.02			.03
	Restructuring charges, net	.15			.02			.01			.02			.03			.11									.17			.14
	Effect on income tax of non-operating adjustments	.04			(.01		)	(.03		)	(.01		)	.01			.01									.04			.02
	Discount accretion associated with former conduit securities	(.02		)	(.02		)	(.07		)	(.01		)	—			—									(.04		)	—
	Gain on sale of WM/Reuters Business	—			(.10		)	—			—			—			—									(.10		)	—
Diluted earnings per common share, operating-basis		$	.98		$	1.46		$	1.35		$	1.48		$	1.21		$	1.67		14.4			38.0			$	2.44		$	2.88		18.0
Return on Average Common Equity(1)(2):
Return on average common equity, GAAP-basis		6.8		%	12.4		%	10.6		%	12.1		%	9.9		%	12.6		%	20		bps	270		bps	9.6		%	11.3		%	170		bps
	Severance costs associated with staffing realignment	—			(.1		)	(.1		)	—			—			—									—			—
	Provisions for legal contingencies	—			—			.9			.2			—			—									—			—
	Expense billing matter, net	—			.8			—			—			—			—									.4			—
	Acquisition costs	.1			.1			.3			.3			.2			.1									.1			.1
	Restructuring charges, net	1.3			.2			.1			.1			.2			.9									.7			.5
	Effect on income tax of non-operating adjustments	.4			(.1		)	(.2		)	(.1		)	.1			.1									.2			.1
	Discount accretion associated with former conduit securities	(.2		)	(.2		)	(.5		)	(.1		)	—			—									(.2		)	—
	Gain on sale of WM/Reuters Business	—			(.8		)	—			—			—			—									(.4		)	—
Return on average common equity, operating-basis		8.4		%	12.3		%	11.1		%	12.5		%	10.4		%	13.7		%	140		bps	330		bps	10.4		%	12.0		%	160		bps
Fee Operating Leverage, GAAP-Basis:
Total fee revenue, GAAP-basis (as reconciled above)		$	1,970		$	2,053		$	2,079		$	2,014		$	2,198		$	2,235		8.87	%		1.68	%		$	4,023		$	4,433		10.19	%
Total expenses, GAAP-basis (as reconciled above)		2,050			1,860			1,984			2,183			2,086			2,031			9.19			(2.64	)		3,910			4,117			5.29
Fee operating leverage, GAAP-basis																				(32	)	bps	432		bps							490		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		$	2,324		9.11	%		2.47	%		$	4,163		$	4,592		10.31	%
Total expenses, operating-basis (as reconciled above)		1,943			1,828			1,909			2,143			2,057			1,960			7.22			(4.72	)		3,771			4,017			6.52
Fee operating leverage, operating-basis																				189		bps	719		bps							379		bps
Operating Leverage, GAAP-Basis:
Total revenue, GAAP-basis (as reconciled above)		$	2,484		$	2,573		$	2,620		$	2,530		$	2,668		$	2,810		9.21	%		5.32	%		$	5,057		$	5,478		8.33	%
Total expenses, GAAP-basis (as reconciled above)		2,050			1,860			1,984			2,183			2,086			2,031			9.19			(2.64	)		3,910			4,117			5.29
Operating leverage, GAAP-basis																				2		bps	796		bps							304		bps
Operating Leverage, Operating-Basis(1)(2):
Total revenue, operating-basis (as reconciled above)		$	2,574		$	2,675		$	2,754		$	2,749		$	2,781		$	2,941		9.94	%		5.75	%		$	5,249		$	5,722		9.01	%
Total expenses, operating-basis (as reconciled above)		1,943			1,828			1,909			2,143			2,057			1,960			7.22			(4.72	)		3,771			4,017			6.52
Operating leverage, operating-basis																				272		bps	1,047		bps							249		bps
(1) The first quarter of 2017 GAAP and operating-basis results included 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 the 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 no longer presents discount accretion associated with former conduit securities as an operating-basis adjustment. Therefore, first and second quarter 2017 GAAP and operating-basis results included $5 million and $6 million, respectively, 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) The impact of acquired operations on total revenue and fee revenue contributed approximately $65 million, $64 million, $71 million and $72 million for the third and fourth quarters of 2016 and first and second quarters of 2017, respectively. The impact of acquired operations on expenses contributed approximately $57 million, $58 million, $51 million and $51 million for the third and fourth quarters of 2016 and first and second quarters of 2017, respectively, excluding merger and integration charges and financing costs.
(4) 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.
(5) Pre-tax operating margin was calculated by dividing income before income tax expense by total revenue.

13

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)	2Q16			1Q17			2Q17		2Q17 vs. 2Q16			2Q17 vs. 1Q17		2Q17 vs. 2Q16		2Q17 vs. 1Q17		2Q17 vs. 2Q16		2Q17 vs. 1Q17
Fee revenue:
Servicing fees	$	1,239		$	1,296		$	1,339	$	(10	)	$	13	$	1,349	$	1,326	8.9	%	2.3	%
Management fees	293			382			397		(3		)	2		400		395		36.5		3.4
Trading services	267			275			289		(5		)	4		294		285		10.1		3.6
Securities finance	156			133			179		(1		)	—		180		179		15.4		34.6
Processing fees and other	98			112			31		1			1		30		30		(69.4	)	(73.2	)
Total fee revenue	2,053			2,198			2,235		(18		)	20		2,253		2,215		9.7		0.8
Net interest income	521			510			575		(7		)	2		582		573		11.7		12.4
Gains (losses) related to investment securities, net	(1		)	(40		)	—		—			—		—		—		nm		nm
Total revenue	$	2,573		$	2,668		$	2,810	$	(25	)	$	22	$	2,835	$	2,788	10.2		4.5
Expenses:
Compensation and employee benefits	$	989		$	1,166		$	1,071	$	(10	)	$	10	$	1,081	$	1,061	9.3		(9.0	)
Information systems and communications	270			287			283		(1		)	1		284		282		5.2		(1.7	)
Transaction processing services	201			197			207		(2		)	1		209		206		4.0		4.6
Occupancy	111			110			116		(1		)	1		117		115		5.4		4.5
Other	289			326			354		(2		)	3		356		351		23.2		7.7
Total expenses	$	1,860		$	2,086		$	2,031	$	(16	)	$	16	$	2,047	$	2,015	10.1		(3.4	)

GAAP-Basis YTD Comparison	Reported					Currency Translation Impact			Excluding Currency Impact			% Change Constant Currency
(Dollars in millions)	2016		2017			YTD 2017 vs. YTD 2016			2017			YTD 2017 vs. YTD 2016
Fee revenue:
Servicing fees	$	2,481	$	2,635		$	(22	)	$	2,657		7.1	%
Management fees	563		779			(7		)	786			39.6
Trading services	539		564			(10		)	574			6.5
Securities finance	290		312			(1		)	313			7.9
Processing fees and other	150		143			(4		)	147			(2.0	)
Total fee revenue	4,023		4,433			(44		)	4,477			11.3
Net interest income	1,033		1,085			(13		)	1,098			6.3
Gains (losses) related to investment securities, net	1		(40		)	—			(40		)	nm
Total revenue	$	5,057	$	5,478		$	(57	)	$	5,535		9.5
Expenses:
Compensation and employee benefits	$	2,096	$	2,237		$	(26	)	$	2,263		8.0
Information systems and communications	542		570			(2		)	572			5.5
Transaction processing services	401		404			(4		)	408			1.7
Occupancy	224		226			(4		)	230			2.7
Other	647		680			(8		)	688			6.3
Total expenses	$	3,910	$	4,117		$	(44	)	$	4,161		6.4
nm Not meaningful

14

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF CONSTANT CURRENCY FX IMPACTS (Continued)
Operating-Basis Quarter Comparison
	Reported								Currency Translation Impact					Excluding Currency Impact				% Change Constant Currency
(Dollars in millions)	2Q16			1Q17			2Q17		2Q17 vs. 2Q16			2Q17 vs. 1Q17		2Q17 vs. 2Q16		2Q17 vs. 1Q17		2Q17 vs. 2Q16		2Q17 vs. 1Q17
Fee revenue:
Servicing fees	$	1,287		$	1,296		$	1,339	$	(10	)	$	13	$	1,349	$	1,326	4.8	%	2.3	%
Management fees	288			382			397		(3		)	2		400		395		38.9		3.4
Trading services	267			275			289		(5		)	4		294		285		10.1		3.6
Securities finance	156			133			179		(1		)	—		180		179		15.4		34.6
Processing fees and other	132			182			120		1			1		119		119		(9.8	)	(34.6	)
Total fee revenue	2,130			2,268			2,324		(18		)	20		2,342		2,304		10.0		1.6
Net interest income	546			553			617		(7		)	2		624		615		14.3		11.2
Gains (losses) related to investment securities, net	(1		)	(40		)	—		—			—		—		—		nm		nm
Total revenue	$	2,675		$	2,781		$	2,941	$	(25	)	$	22	$	2,966	$	2,919	10.9		5.0
Expenses:
Compensation and employee benefits	$	992		$	1,166		$	1,071	$	(10	)	$	10	$	1,081	$	1,061	9.0		(9.0	)
Information systems and communications	270			287			283		(1		)	1		284		282		5.2		(1.7	)
Transaction processing services	201			197			207		(2		)	1		209		206		4.0		4.6
Occupancy	111			110			116		(1		)	1		117		115		5.4		4.5
Other	254			297			283		(2		)	2		285		281		12.2		(5.4	)
Total expenses	$	1,828		$	2,057		$	1,960	$	(16	)	$	15	$	1,976	$	1,945	8.1		(5.4	)

Operating-Basis YTD Comparison
	Reported					Currency Translation Impact			Excluding Currency Impact			% Change Constant Currency
(Dollars in millions)	2016		2017			YTD 2017 vs. YTD 2016			2017			YTD 2017 vs. YTD 2016
Fee revenue:
Servicing fees	$	2,529	$	2,635		$	(22	)	$	2,657		5.1	%
Management fees	558		779			(7		)	786			40.9
Trading services	539		564			(10		)	574			6.5
Securities finance	290		312			(1		)	313			7.9
Processing fees and other	247		302			(4		)	306			23.9
Total fee revenue	4,163		4,592			(44		)	4,636			11.4
Net interest income	1,085		1,170			(13		)	1,183			9.0
Gains (losses) related to investment securities, net	1		(40		)	—			(40		)	nm
Total revenue	$	5,249	$	5,722		$	(57	)	$	5,779		10.1
Expenses:
Compensation and employee benefits	$	2,096	$	2,237		$	(26	)	$	2,263		8.0
Information systems and communications	542		570			(2		)	572			5.5
Transaction processing services	401		404			(4		)	408			1.7
Occupancy	224		226			(4		)	230			2.7
Other	508		580			(7		)	587			15.6
Total expenses	$	3,771	$	4,017		$	(43	)	$	4,060		7.7
nm Not meaningful

15

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 within the Reconciliation of Tangible Common Equity Ratio within this package.

    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						2Q17
(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)			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		%	12.0		%	11.3		%
Tier 1 capital	14.9			15.1			15.0			15.0			15.4			15.7			14.8			14.7			14.4			14.7			15.2			14.2
Total capital	17.1			17.3			17.1			17.1			17.6			17.9			16.0			16.0			15.4			15.9			16.3			15.3
Tier 1 leverage	6.9			6.9			7.0			7.0			6.8			6.8			6.5			6.5			6.8			6.8			7.0			7.0
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		$	12,007		$	12,007
Total risk-weighted assets	100,633			99,617			104,012			104,492			99,736			98,374			99,301			99,876			100,843			98,494			99,897			106,595
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		%	12.0		%	11.3		%
Tier 1 capital	$	15,032		$	15,032		$	15,642		$	15,642		$	15,407		$	15,407		$	14,717		$	14,717		$	14,475		$	14,475		$	15,165		$	15,165
Total risk-weighted assets	100,633			99,617			104,012			104,492			99,736			98,374			99,301			99,876			100,843			98,494			99,897			106,595
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		%	15.2		%	14.2		%
Total capital	$	17,191		$	17,248		$	17,794		$	17,869		$	17,560		$	17,632		$	15,909		$	15,967		$	15,542		$	15,617		$	16,243		$	16,314
Total risk-weighted assets	100,633			99,617			104,012			104,492			99,736			98,374			99,301			99,876			100,843			98,494			99,897			106,595
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		%	16.3		%	15.3		%
Tier 1 capital	$	15,032		$	15,032		$	15,642		$	15,642		$	15,407		$	15,407		$	14,717		$	14,717		$	14,475		$	14,475		$	15,165		$	15,165
Adjusted quarterly average assets	217,029			217,029			222,666			222,666			226,093			226,093			226,310			226,310			212,361			212,361			216,940			216,940
Tier 1 leverage ratio	6.9		%	6.9		%	7.0		%	7.0		%	6.8		%	6.8		%	6.5		%	6.5		%	6.8		%	6.8		%	7.0		%	7.0		%
(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.

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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			2Q17
Consolidated total assets		$	243,685		$	255,386		$	256,140		$	242,698		$	236,802		$	238,274
Less:
Goodwill		5,733			5,671			5,911			5,814			5,855			5,945
Other intangible assets		1,749			1,682			1,849			1,750			1,710			1,693
Cash balances held at central banks in excess of required reserves		58,639			67,710			67,571			62,037			59,780			56,326
Adjusted assets		177,564			180,323			180,809			173,097			169,457			174,310
Plus related deferred tax liabilities		698			688			685			655			649			651
Total tangible assets	A	$	178,262		$	181,011		$	181,494		$	173,752		$	170,106		$	174,961
Consolidated total common shareholders' equity		$	18,793		$	18,877		$	18,954		$	18,023		$	18,098		$	18,872
Less:
Goodwill		5,733			5,671			5,911			5,814			5,855			5,945
Other intangible assets		1,749			1,682			1,849			1,750			1,710			1,693
Adjusted equity		11,311			11,524			11,194			10,459			10,533			11,234
Plus related deferred tax liabilities		698			688			685			655			649			651
Total tangible common equity	B	$	12,009		$	12,212		$	11,879		$	11,114		$	11,182		$	11,885
Tangible common equity ratio	B/A	6.7		%	6.7		%	6.5		%	6.4		%	6.6		%	6.8		%

17

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 June 30, 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	$	12,007		$	(315	)	$	11,692		$	12,007		$	(315	)	$	11,692
Tier 1 capital	15,165			(277		)	14,888			15,165			(277		)	14,888
Total capital	16,243			(278		)	15,965			16,314			(277		)	16,037
Risk weighted assets	99,897			65			99,962			106,595			61			106,656
Adjusted quarterly average assets	216,940			(205		)	216,735			216,940			(205		)	216,735
Capital ratios:
Common equity tier 1 capital	12.0		%				11.7		%	11.3		%				11.0		%
Tier 1 capital	15.2						14.9			14.2						14.0
Total capital	16.3						16.0			15.3						15.0
Tier 1 leverage	7.0						6.9			7.0						6.9
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 quarterly 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

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

19

EARNINGS RELEASE ADDENDUM
RECONCILIATION OF FULLY PHASED-IN CAPITAL RATIOS (Continued)
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 quarterly 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
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 quarterly 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

20

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 July 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 June 30, 2017 (Dollars in millions)	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	15,165		A	$	14,888		$	16,002		$	15,737
On-and off-balance sheet leverage exposure	250,325				250,325			246,971			246,971
Less: regulatory deductions	(6,633		)		(6,838		)	(6,237		)	(6,435		)
Total assets for SLR	243,692			B	243,487			240,734			240,536
Supplementary Leverage Ratio	6.2		%	A/B	6.1		%	6.6		%	6.5		%
	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		C	$	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			D	237,877			235,141			234,880
Supplementary Leverage Ratio	6.1		%	C/D	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		E	$	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			F	250,559			247,409			246,955
Supplementary Leverage Ratio	5.9		%	E/F	5.6		%	6.4		%	6.1		%

21

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF SUPPLEMENTARY LEVERAGE RATIOS (Continued)
	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		G	$	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			H	250,694			246,306			246,032
Supplementary Leverage Ratio	6.1		%	G/H	6.0		%	6.4		%	6.2		%
	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		I	$	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			J	248,767			244,483			244,226
Supplementary Leverage Ratio	6.3		%	I/J	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		K	$	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			L	241,436			237,292			236,970
Supplementary Leverage Ratio	6.2		%	K/L	6.0		%	6.4		%	6.2		%

22