Exhibit 99.1
STATE STREET CORPORATION
Press Release Addendum
December 31, 2006
Table of Contents
| | Page | |
Financial Highlights | | 2 | |
| | | |
Selected Financial Information | | | |
| | | |
Quarters and years ended December 31, 2006 and 2005 | | 3 | |
| | | |
Quarters ended December 31, 2006 and September 30, 2006 | | 4 | |
| | | |
Consolidated Statement of Condition | | 5 | |
These financial schedules should be used in conjunction with State Street’s quarterly earnings press release.
STATE STREET CORPORATION
Press Release Addendum
Financial Highlights
December 31, 2006
| | Quarters Ended | | | | % Change | |
| | | | | | | | Q4 | | Q4 | |
(Dollars in millions, except per share amounts | | December 31, | | September 30, | | December 31, | | vs. | | vs. | |
or where otherwise noted) | | 2006 | | 2006 | | 2005 | | Q3 | | Q4 | |
| | | | | | | | | | | |
Total Revenue | | $ | 1,622 | | $ | 1,515 | | $ | 1,416 | | 7 | % | 15 | % |
Total Expenses | | 1,178 | | 1,090 | | 1,039 | | 8 | | 13 | |
Income Tax Expense | | 135 | | 147 | | 128 | | (8 | ) | 5 | |
Net Income | | 309 | | 278 | | 249 | | 11 | | 24 | |
| | | | | | | | | | | |
Diluted Earnings Per Share | | $ | .91 | | $ | .83 | | $ | .74 | | 10 | | 23 | |
Closing Price Per Share of Common Stock | | $ | 67.44 | | $ | 62.40 | | $ | 55.44 | | | | | |
| | | | | | | | | | | |
Cash Dividends Declared Per Share | | .21 | | .20 | | .19 | | | | | |
| | | | | | | | | | | |
Return on Equity | | 16.9 | % | 16.4 | % | 15.9 | % | | | | |
| | | | | | | | | | | |
Assets Under Custody (AUC) (in trillions) | | $ | 11.85 | | $ | 11.27 | | $ | 10.12 | | | | | |
Assets Under Management (AUM) (in trillions) | | 1.75 | | 1.63 | | 1.44 | | | | | |
| | | | | | | | | | | |
| | Years Ended | | % Change | | | | | |
| | | | | | 2006 | | | | | |
| | December 31, | | December 31, | | vs. | | | | | |
(Dollars in millions, except per share amounts) | | 2006 | | 2005 | | 2005 | | | | | |
| | | | | | | | | | | |
Total Revenue | | $ | 6,311 | | $ | 5,473 | | 15 | % | | | | |
Total Expenses | | 4,540 | | 4,041 | | 12 | | | | | |
Income Tax Expense | | 675 | | 487 | | 39 | | | | | |
Income from Continuing Operations | | 1,096 | | 945 | | 16 | | | | | |
Income (Loss) from Discontinued Operations | | 10 | | (107 | ) | | | | | | |
Net Income | | 1,106 | | 838 | | | | | | | |
| | | | | | | | | | | |
Diluted Earnings (Loss) Per Share: | | | | | | | | | | | |
From Continuing Operations | | $ | 3.26 | | $ | 2.82 | | 16 | | | | | |
From Discontinued Operations | | .03 | | (.32 | ) | | | | | | |
Net Income | | 3.29 | | 2.50 | | | | | | | |
| | | | | | | | | | | |
Cash Dividends Declared Per Share | | $ | .80 | | $ | .72 | | 11 | | | | | |
| | | | | | | | | | | |
Return on Equity from Continuing Operations | | 16.2 | % | 15.3 | % | | | | | | |
Return on Equity | | 16.4 | | 13.6 | | | | | | | |
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STATE STREET CORPORATION
Press Release Addendum
SELECTED FINANCIAL INFORMATION
Quarters and years ended December 31, 2006 and December 31, 2005
| | Quarters Ended | | Years Ended | |
(Dollars in millions, except per share amounts) | | December 31, 2006 | | December 31, 2005 | | % Change | | December 31, 2006 | | December 31, 2005 | | % Change | |
Fee Revenue: | | | | | | | | | | | | | |
Servicing fees | | $ | 698 | | $ | 637 | | 10 | % | $ | 2,723 | | $ | 2,474 | | 10 | % |
Management fees | | 253 | | 213 | | 19 | | 943 | | 751 | | 26 | |
Trading services | | 203 | | 182 | | 12 | | 862 | | 694 | | 24 | |
Securities finance | | 90 | | 73 | | 23 | | 386 | | 330 | | 17 | |
Processing fees and other | | 61 | | 71 | | (14 | ) | 272 | | 302 | | (10 | ) |
Total fee revenue | | 1,305 | | 1,176 | | 11 | | 5,186 | | 4,551 | | 14 | |
| | | | | | | | | | | | | |
Net Interest Revenue: | | | | | | | | | | | | | |
Interest revenue | | 1,226 | | 861 | | 42 | | 4,324 | | 2,930 | | 48 | |
Interest expense | | 910 | | 619 | | 47 | | 3,214 | | 2,023 | | 59 | |
Net interest revenue(1) | | 316 | | 242 | | 31 | | 1,110 | | 907 | | 22 | |
Provision for loan losses | | — | | — | | | | — | | — | | | |
Net interest revenue after provision for loan losses | | 316 | | 242 | | 31 | | 1,110 | | 907 | | 22 | |
Gains (Losses) on sales of available-for-sale investment securities, net | | 1 | | (2 | ) | | | 15 | | (1 | ) | | |
Gain on sale of Private Asset Management business | | — | | — | | | | — | | 16 | | | |
Total revenue | | 1,622 | | 1,416 | | 15 | | 6,311 | | 5,473 | | 15 | |
| | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | |
Salaries and employee benefits | | 694 | | 589 | | 18 | | 2,652 | | 2,231 | | 19 | |
Information systems and communications | | 119 | | 122 | | (2 | ) | 501 | | 486 | | 3 | |
Transaction processing services | | 121 | | 118 | | 3 | | 496 | | 449 | | 10 | |
Occupancy | | 94 | | 89 | | 6 | | 373 | | 391 | | (5 | ) |
Other | | 150 | | 121 | | 24 | | 518 | | 484 | | 7 | |
Total operating expenses | | 1,178 | | 1,039 | | 13 | | 4,540 | | 4,041 | | 12 | |
Income from continuing operations before income tax expense | | 444 | | 377 | | 18 | | 1,771 | | 1,432 | | 24 | |
Income tax expense from continuing operations | | 135 | | 128 | | | | 675 | | 487 | | | |
Income from continuing operations | | 309 | | 249 | | 24 | | 1,096 | | 945 | | 16 | |
Income (Loss) from discontinued operations before income tax expense | | — | | — | | | | 16 | | (165 | ) | | |
Income tax expense (benefit) from discontinued operations | | — | | — | | | | 6 | | (58 | ) | | |
Income (Loss) from discontinued operations | | — | | — | | | | 10 | | (107 | ) | | |
Net income | | $ | 309 | | $ | 249 | | | | $ | 1,106 | | $ | 838 | | | |
| | | | | | | | | | | | | |
Earnings Per Share From Continuing Operations: | | | | | | | | | | | | | |
Basic | | $ | .93 | | $ | .75 | | 24 | | $ | 3.31 | | $ | 2.86 | | 16 | |
Diluted | | .91 | | .74 | | 23 | | $ | 3.26 | | 2.82 | | 16 | |
| | | | | | | | | | | | | |
Earnings (Loss) Per Share From Discontinued Operations: | | | | | | | | | | | | | |
Basic | | $ | — | | $ | — | | | | $ | .03 | | $ | (.33 | ) | | |
Diluted | | — | | — | | | | .03 | | (.32 | ) | | |
| | | | | | | | | | | | | |
Earnings Per Share: | | | | | | | | | | | | | |
Basic | | $ | .93 | | $ | .75 | | | | $ | 3.34 | | $ | 2.53 | | | |
Diluted | | .91 | | .74 | | | | 3.29 | | 2.50 | | | |
| | | | | | | | | | | | | |
Average Shares Outstanding (in thousands): | | | | | | | | | | | | | |
Basic | | 331,421 | | 330,689 | | | | 331,350 | | 330,361 | | | |
Diluted | | 337,429 | | 337,061 | | | | 335,732 | | 334,646 | | | |
Consolidated Statement of Income prepared in accordance with accounting principles generally accepted in the United States.
(1) Net interest revenue on a fully taxable-equivalent basis was $328 million and $253 million for the three months ended December 31, 2006 and 2005, respectively, and $1.16 billion and $949 million for the years ended December 31, 2006 and 2005, respectively.
3
STATE STREET CORPORATION
Press Release Addendum
SELECTED FINANCIAL INFORMATION
Quarters ended December 31, 2006 and September 30, 2006
| | Quarters Ended | |
| | December 31, | | September 30, | | | |
(Dollars in millions, except per share amounts) | | 2006 | | 2006 | | % Change | |
| | | | | | | |
Fee Revenue: | | | | | | | |
Servicing fees | | $ | 698 | | $ | 685 | | 2 | % |
Management fees | | 253 | | 238 | | 6 | |
Trading services | | 203 | | 171 | | 19 | |
Securities finance | | 90 | | 87 | | 3 | |
Processing fees and other | | 61 | | 65 | | (6 | ) |
Total fee revenue | | 1,305 | | 1,246 | | 5 | |
| | | | | | | |
Net Interest Revenue: | | | | | | | |
Interest revenue | | 1,226 | | 1,103 | | 11 | |
Interest expense | | 910 | | 837 | | 9 | |
Net interest revenue(1) | | 316 | | 266 | | 19 | |
Provision for loan losses | | — | | — | | | |
Net interest revenue after provision for loan losses | | 316 | | 266 | | 19 | |
| | | | | | | |
Gains on sales of available-for-sale investment securities, net | | 1 | | 3 | | | |
Total revenue | | 1,622 | | 1,515 | | 7 | |
| | | | | | | |
Operating Expenses: | | | | | | | |
Salaries and employee benefits | | 694 | | 639 | | 9 | |
Information systems and communications | | 119 | | 121 | | (2 | ) |
Transaction processing services | | 121 | | 121 | | — | |
Occupancy | | 94 | | 91 | | 3 | |
Other | | 150 | | 118 | | 27 | |
Total operating expenses | | 1,178 | | 1,090 | | 8 | |
Income before income tax expense | | 444 | | 425 | | 4 | |
Income tax expense | | 135 | | 147 | | | |
Net income | | $ | 309 | | $ | 278 | | 11 | |
| | | | | | | |
Earnings Per Share: | | | | | | | |
Basic | | $ | .93 | | $ | .84 | | 11 | |
Diluted | | .91 | | .83 | | 10 | |
| | | | | | | |
Average Shares Outstanding (in thousands): | | | | | | | |
Basic | | 331,421 | | 330,440 | | | |
Diluted | | 337,429 | | 335,513 | | | |
Consolidated Statement of Income prepared in accordance with accounting principles generally accepted in the United States.
(1) Net interest revenue on a fully taxable-equivalent basis was $328 million and $275 million for the three months ended December 31, 2006 and September 30, 2006.
4
STATE STREET CORPORATION
Press Release Addendum
CONSOLIDATED STATEMENT OF CONDITION
| | December 31, | | December 31, | |
(Dollars in millions, except per share amounts) | | 2006 | | 2005 | |
Assets | | | | | |
Cash and due from banks | | $ | 2,368 | | $ | 2,684 | |
Interest-bearing deposits with banks | | 5,236 | | 11,275 | |
Securities purchased under resale agreements | | 14,678 | | 8,679 | |
Trading account assets | | 785 | | 764 | |
Investment securities available for sale | | 60,445 | | 54,979 | |
Investment securities held to maturity | | 4,547 | | 4,891 | |
Loans and leases (net of allowance of $18) | | 8,928 | | 6,464 | |
Premises and equipment | | 1,560 | | 1,453 | |
Accrued income receivable | | 1,617 | | 1,364 | |
Goodwill | | 1,384 | | 1,337 | |
Other intangible assets | | 434 | | 459 | |
Other assets | | 5,371 | | 3,619 | |
Total assets | | $ | 107,353 | | $ | 97,968 | |
| | | | | |
Liabilities | | | | | |
Deposits: | | | | | |
Noninterest-bearing | | $ | 10,194 | | $ | 9,402 | |
Interest-bearing — U.S. | | 1,272 | | 2,379 | |
Interest-bearing — Non-U.S. | | 54,180 | | 47,865 | |
Total deposits | | 65,646 | | 59,646 | |
| | | | | |
Securities sold under repurchase agreements | | 19,147 | | 20,895 | |
Federal funds purchased | | 2,147 | | 1,204 | |
Other short-term borrowings | | 2,835 | | 1,219 | |
Accrued taxes and other expenses | | 3,143 | | 2,632 | |
Other liabilities | | 4,567 | | 3,346 | |
Long-term debt | | 2,616 | | 2,659 | |
Total liabilities | | 100,101 | | 91,601 | |
| | | | | |
Shareholders’ Equity | | | | | |
Preferred stock, no par: authorized 3,500,000; issued none | | | | | |
Common stock, $1 par: authorized 500,000,000 shares; issued 337,126,000 and 337,126,000 shares | | 337 | | 337 | |
Surplus | | 399 | | 266 | |
Retained earnings | | 7,030 | | 6,189 | |
Accumulated other comprehensive loss | | (224 | ) | (231 | ) |
Treasury stock (at cost 4,688,000 and 3,501,000 shares) | | (290 | ) | (194 | ) |
Total shareholders’ equity | | 7,252 | | 6,367 | |
Total liabilities and shareholders’ equity | | $ | 107,353 | | $ | 97,968 | |
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