Exhibit 99.1
STATE STREET CORPORATION
Press Release Addendum
December 31, 2006
Table of Contents
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Financial Highlights |
| 2 |
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Selected Financial Information |
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Quarters and years ended December 31, 2006 and 2005 |
| 3 |
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Quarters ended December 31, 2006 and September 30, 2006 |
| 4 |
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Consolidated Statement of Condition |
| 5 |
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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
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| Quarters Ended |
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| % Change |
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| Q4 |
| Q4 |
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(Dollars in millions, except per share amounts |
| December 31, |
| September 30, |
| December 31, |
| vs. |
| vs. |
| |||
or where otherwise noted) |
| 2006 |
| 2006 |
| 2005 |
| Q3 |
| Q4 |
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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 |
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Diluted Earnings Per Share |
| $ | .91 |
| $ | .83 |
| $ | .74 |
| 10 |
| 23 |
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Closing Price Per Share of Common Stock |
| $ | 67.44 |
| $ | 62.40 |
| $ | 55.44 |
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Cash Dividends Declared Per Share |
| .21 |
| .20 |
| .19 |
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Return on Equity |
| 16.9 | % | 16.4 | % | 15.9 | % |
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Assets Under Custody (AUC) (in trillions) |
| $ | 11.85 |
| $ | 11.27 |
| $ | 10.12 |
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Assets Under Management (AUM) (in trillions) |
| 1.75 |
| 1.63 |
| 1.44 |
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| Years Ended |
| % Change |
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| 2006 |
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|
| December 31, |
| December 31, |
| vs. |
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(Dollars in millions, except per share amounts) |
| 2006 |
| 2005 |
| 2005 |
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Total Revenue |
| $ | 6,311 |
| $ | 5,473 |
| 15 | % |
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Total Expenses |
| 4,540 |
| 4,041 |
| 12 |
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Income Tax Expense |
| 675 |
| 487 |
| 39 |
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Income from Continuing Operations |
| 1,096 |
| 945 |
| 16 |
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Income (Loss) from Discontinued Operations |
| 10 |
| (107 | ) |
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Net Income |
| 1,106 |
| 838 |
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Diluted Earnings (Loss) Per Share: |
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From Continuing Operations |
| $ | 3.26 |
| $ | 2.82 |
| 16 |
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From Discontinued Operations |
| .03 |
| (.32 | ) |
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Net Income |
| 3.29 |
| 2.50 |
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Cash Dividends Declared Per Share |
| $ | .80 |
| $ | .72 |
| 11 |
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Return on Equity from Continuing Operations |
| 16.2 | % | 15.3 | % |
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Return on Equity |
| 16.4 |
| 13.6 |
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2
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, |
| December 31, |
| % Change |
| December 31, |
| December 31, |
| % Change |
| ||||
Fee Revenue: |
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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 |
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Net Interest Revenue: |
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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 |
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Provision for loan losses |
| — |
| — |
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| — |
| — |
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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 | ) |
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Gain on sale of Private Asset Management business |
| — |
| — |
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| — |
| 16 |
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Total revenue |
| 1,622 |
| 1,416 |
| 15 |
| 6,311 |
| 5,473 |
| 15 |
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Operating Expenses: |
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Salaries and employee benefits |
| 694 |
| 589 |
| 18 |
| 2,652 |
| 2,231 |
| 19 |
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Information systems and communications |
| 119 |
| 122 |
| (2 | ) | 501 |
| 486 |
| 3 |
| ||||
Transaction processing services |
| 121 |
| 118 |
| 3 |
| 496 |
| 449 |
| 10 |
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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 |
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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 |
|
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| ||||
Income from continuing operations |
| 309 |
| 249 |
| 24 |
| 1,096 |
| 945 |
| 16 |
| ||||
Income (Loss) from discontinued operations before income tax expense |
| — |
| — |
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| 16 |
| (165 | ) |
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Income tax expense (benefit) from discontinued operations |
| — |
| — |
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| 6 |
| (58 | ) |
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Income (Loss) from discontinued operations |
| — |
| — |
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| 10 |
| (107 | ) |
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Net income |
| $ | 309 |
| $ | 249 |
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| $ | 1,106 |
| $ | 838 |
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Earnings Per Share From Continuing Operations: |
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Basic |
| $ | .93 |
| $ | .75 |
| 24 |
| $ | 3.31 |
| $ | 2.86 |
| 16 |
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Diluted |
| .91 |
| .74 |
| 23 |
| $ | 3.26 |
| 2.82 |
| 16 |
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Earnings (Loss) Per Share From Discontinued Operations: |
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Basic |
| $ | — |
| $ | — |
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| $ | .03 |
| $ | (.33 | ) |
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Diluted |
| — |
| — |
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| .03 |
| (.32 | ) |
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Earnings Per Share: |
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Basic |
| $ | .93 |
| $ | .75 |
|
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| $ | 3.34 |
| $ | 2.53 |
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Diluted |
| .91 |
| .74 |
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| 3.29 |
| 2.50 |
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Average Shares Outstanding (in thousands): |
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Basic |
| 331,421 |
| 330,689 |
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| 331,350 |
| 330,361 |
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Diluted |
| 337,429 |
| 337,061 |
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| 335,732 |
| 334,646 |
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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 |
| ||
|
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|
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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 |
| ||
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Net Interest Revenue: |
|
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Interest revenue |
| 1,226 |
| 1,103 |
| 11 |
| ||
Interest expense |
| 910 |
| 837 |
| 9 |
| ||
Net interest revenue(1) |
| 316 |
| 266 |
| 19 |
| ||
Provision for loan losses |
| — |
| — |
|
|
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Net interest revenue after provision for loan losses |
| 316 |
| 266 |
| 19 |
| ||
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Gains on sales of available-for-sale investment securities, net |
| 1 |
| 3 |
|
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Total revenue |
| 1,622 |
| 1,515 |
| 7 |
| ||
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Operating Expenses: |
|
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|
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Salaries and employee benefits |
| 694 |
| 639 |
| 9 |
| ||
Information systems and communications |
| 119 |
| 121 |
| (2 | ) | ||
Transaction processing services |
| 121 |
| 121 |
| — |
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Occupancy |
| 94 |
| 91 |
| 3 |
| ||
Other |
| 150 |
| 118 |
| 27 |
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Total operating expenses |
| 1,178 |
| 1,090 |
| 8 |
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Income before income tax expense |
| 444 |
| 425 |
| 4 |
| ||
Income tax expense |
| 135 |
| 147 |
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Net income |
| $ | 309 |
| $ | 278 |
| 11 |
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Earnings Per Share: |
|
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Basic |
| $ | .93 |
| $ | .84 |
| 11 |
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Diluted |
| .91 |
| .83 |
| 10 |
| ||
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Average Shares Outstanding (in thousands): |
|
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Basic |
| 331,421 |
| 330,440 |
|
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Diluted |
| 337,429 |
| 335,513 |
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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 |
|
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|
|
| ||
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 |
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Liabilities |
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Deposits: |
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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 |
| ||
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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 |
| ||
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Shareholders’ Equity |
|
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| ||
Preferred stock, no par: authorized 3,500,000; issued none |
|
|
|
|
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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 |
|
5