State Street (STT) 8-K Regulation FD Disclosure

9 February 2012

Investor and Analyst Forum

Building from Strength

Exhibit 99.1

2

2011 Performance and

Strategic Direction

JOSEPH L. HOOLEY

Chairman, President and Chief Executive Officer

Globalization

SCOTT POWERS

Chief Executive Officer, State Street Global Advisors

JOSEPH C. ANTONELLIS

Vice Chairman

PETER O’NEILL

Executive Vice President, International

Business Operations and

Information Technology

Transformation Program

JAMES S. PHALEN

Executive Vice President

CHRISTOPHER PERRETTA

Chief Information Officer

Financial Update

EDWARD J. RESCH

Executive Vice President and Chief Financial Officer

Building from Strength

Topics for Discussion

3

This

presentation

contains

forward-looking

statements

as

defined

by

United

States

securities

laws,

including

statements

relating

to

our

goals

and

expectations

regarding

our

business,

financial

and

capital

condition,

results

of

operations,

investment

portfolio

performance

and

strategies,

the

financial

and

market

outlook,

governmental

and

regulatory

initiatives

and

developments,

and

the

business

environment.

Forward-looking

statements

are

often,

but

not

always,

identified

by

such

forward-looking

terminology

as

"plan,"

“program,”

"expect,"

"look,"

"believe,"

"anticipate,"

"estimate,"

"seek,"

"may,"

"will,"

"trend,"

"target,”

and

"goal,"

or

similar

statements

or

variations

of

such

terms.

These

statements

are

not

guarantees

of

future

performance,

are

inherently

uncertain,

are

based

on

current

assumptions

that

are

difficult

to

predict

and

involve

a

number

of

risks

and

uncertainties.

Therefore,

actual

outcomes

and

results

may

differ

materially

from

what

is

expressed

in

those

statements,

and

those

statements

should

not

be

relied

upon

as

representing

our

expectations

or

beliefs

as

of

any

date

subsequent

to

February

9,

2012.

Important

factors

that

may

affect

future

results

and

outcomes

include,

but

are

not

limited

to:

the

manner

in

which

the

Federal

Reserve

and

other

regulators

implement

the

Dodd-Frank

Act,

Basel

III

and

other

regulatory

initiatives

in

the

U.S.

and

internationally,

including

any

increases

in

the

minimum

regulatory

capital

ratios

applicable

to

us

and

regulatory

developments

that

result

in

changes

to

our

operating

model

or

other

changes

to

the

provision

of

our

services

in

order

to

comply

with

or

respond

to

such

regulations;

required

regulatory

capital

ratios

under

Basel

II

and

Basel

III,

in

each

case

as

fully

implemented

by

State

Street

and

State

Street

Bank

(and

in

the

case

of

Basel

III,

when

finally

adopted

by

the

Federal

Reserve),

which

may

result

in

the

need

for

substantial

additional

capital

or

increased

levels

of

liquidity

in

the

future;

approvals

required

by

the

Federal

Reserve

or

other

regulators

for

the

use,

allocation

or

distribution

of

our

capital

or

other

specific

capital

actions

or

programs,

including

equity

repurchases,

which

approvals

may

restrict

or

limit

our

growth

plans,

distributions

to

shareholders,

equity

repurchase

programs

or

other

capital

initiatives;

changes

in

law

or

regulation

that

may

adversely

affect

our,

our

clients’

or

our

counterparties’

business

activities

and

the

products

or

services

that

we

sell,

including

additional

or

increased

taxes

or

assessments

thereon,

capital

adequacy

requirements

and

changes

that

expose

us

to

risks

related

to

compliance;

financial

market

disruptions

and

the

economic

recession,

whether

in

the

U.S.,

Europe

or

other

regions

internationally;

the

liquidity

of

the

U.S.

and

international

securities

markets,

particularly

the

markets

for

fixed-income

securities,

and

the

liquidity

requirements

of

our

clients;

increases

in

the

volatility

of,

or

declines

in

the

levels

of,

our

net

interest

revenue,

changes

in

the

composition

of

the

assets

on

our

consolidated

balance

sheet

and

the

possibility

that

we

may

be

required

to

change

the

manner

in

which

we

fund

those

assets;

the

financial

strength

and

continuing

viability

of

the

counterparties

with

which

we

or

our

clients

do

business

and

to

which

we

have

investment,

credit

or

financial

exposure

including,

for

example,

the

direct

and

indirect

effects

on

counterparties

of

the

pending

sovereign

debt

risks

in

Europe;

the

credit

quality,

credit

agency

ratings,

and

fair

values

of

the

securities

in

our

investment

securities

portfolio,

a

deterioration

or

downgrade

of

which

could

lead

to

other-than-temporary

impairment

of

the

respective

securities

and

the

recognition

of

an

impairment

loss

in

our

consolidated

statement

of

income;

delays

or

difficulties

in

the

execution

of

our

previously

announced

business

operations

and

information

technology

transformation

program,

which

could

lead

to

changes

in

our

estimates

of

the

charges,

expenses

or

savings

associated

with

the

planned

program,

resulting

in

increased

volatility

of

our

earnings;

the

maintenance

of

credit

agency

ratings

for

our

debt

and

depository

obligations

as

well

as

the

level

of

credibility

of

credit

agency

ratings;

the

results

of,

and

costs

associated

with,

government

investigations,

litigation,

and

similar

claims,

disputes,

or

proceedings;

the

risks

that

acquired

businesses

and

joint

ventures

will

not

be

integrated

successfully,

or

that

the

integration

will

take

longer

than

anticipated,

that

expected

synergies

will

not

be

achieved

or

unexpected

disynergies

will

be

experienced,

that

client

and

deposit

retention

goals

will

not

be

met,

that

other

regulatory

or

operational

challenges

will

be

experienced

and

that

disruptions

from

the

transaction

will

harm

relationships

with

clients,

employees

or

regulators;

the

ability

to

complete

acquisitions,

divestitures

and

joint

ventures,

including

the

ability

to

obtain

regulatory

approvals,

the

ability

to

arrange

financing

as

required

and

the

ability

to

satisfy

closing

conditions;

the

performance

of

and

demand

for

the

products

and

services

we

offer,

including

the

level

and

timing

of

redemptions

and

withdrawals

from

our

collateral

pools

and

other

collective

investment

products;

the

possibility

that

our

clients

will

incur

substantial

losses

in

investment

pools

where

we

act

as

agent,

and

the

possibility

of

significant

reductions

in

the

valuation

of

assets;

our

ability

to

attract

deposits

and

other

low-cost,

short-term

funding;

potential

changes

to

the

competitive

environment,

including

changes

due

to

the

effects

of

consolidation,

and

perceptions

of

State

Street

as

a

suitable

service

provider

or

counterparty;

the

level

and

volatility

of

interest

rates

and

the

performance

and

volatility

of

securities,

credit,

currency

and

other

markets

in

the

U.S.

and

internationally;

our

ability

to

measure

the

fair

value

of

the

investment

securities

on

our

consolidated

balance

sheet;

our

ability

to

control

operating

risks,

data

security

breach

risks,

information

technology

systems

risks

and

outsourcing

risks,

and

our

ability

to

protect

our

intellectual

property

rights,

the

possibility

of

errors

in

the

quantitative

models

we

use

to

manage

our

business

and

the

possibility

that

our

controls

will

prove

insufficient,

fail

or

be

circumvented;

adverse

publicity

or

other

reputational

harm;

our

ability

to

grow

revenue,

attract

and/or

retain

and

compensate

highly

skilled

people,

control

expenses

and

attract

the

capital

necessary

to

achieve

our

business

goals

and

comply

with

regulatory

requirements;

the

potential

for

new

products

and

services

to

impose

additional

costs

on

us

and

expose

us

to

increased

operational

risk;

changes

in

accounting

standards

and

practices;

and

changes

in

tax

legislation

and

in

the

interpretation

of

existing

tax

laws

by

U.S.

and

non-U.S.

tax

authorities

that

affect

the

amount

of

taxes

due.

Other

important

factors

that

could

cause

actual

results

to

differ

materially

from

those

indicated

by

any

forward-looking

statements

are

set

forth

in

our

2010

Annual

Report

on

Form

10-K

and

our

subsequent

SEC

filings.

We

encourage

investors

to

read

these

filings,

particularly

the

sections

on

risk

factors,

for

additional

information

with

respect

to

any

forward-looking

statements

and

prior

to

making

any

investment

decision.

The

forward-looking

statements

contained

in

this

presentation

speak

only

as

of

the

date

hereof,

February

9,

2012,

and

we

do

not

undertake

efforts

to

revise

those

forward-looking

statements

to

reflect

events

after

that

date.

Building from Strength

Reminder

4

Building from Strength

Agenda

2011 Performance

Strategic Direction

Globalization

Business Operations and

Information Technology Transformation Program

Financial Update

Summary

Building from Strength

Agenda

2011 Performance

–

Jay Hooley

Strategic Direction

Globalization

Business Operations and

Information Technology Transformation Program

Financial Update

Summary

5

6

2011 Performance

Resilience in a Challenging Environment

$ in millions

12/31/11

1

12/31/10

1

% Change

Revenue

$9,502

$8,714

+9.0%

Expenses

$6,789

$6,176

+ 9.9%

EPS

$3.73

$3.40

+9.7%

ROE

9.9%

10.4%

-50 bps

OPERATING-BASIS RESULTS FOR THE TWELVE MONTHS ENDED¹

•

Strengthened capital position; re-initiated common stock buyback and increased

common stock dividend

•

Deepened client relationships

•

Continued market leadership

•

Effectively managed expenses, including Business Operations and Information

Technology Transformation Program

•

Outperformed peers

1

Financial information presented on an operating, or non-GAAP, basis (which is adjusted to exclude, among other things, conduit-related discount accretion).  For a description of

GAAP and operating-basis results, and related reconciliations, please see the Appendix.

6

7

2011 Performance

Strengthened Capital Position

State Street Corporation

“Well

Capitalized”¹

12/31/11

Actual under Basel I

12/31/11

Adjusted to Reflect

Basel III Proposal²

Tier 1 Capital

6.0%

18.9%

13.3%

Tier 1 Common Ratio³

—

16.9%

12.1%

Tier 1 Leverage

5.0%

4

7.3%

5.6%

Total Capital

10.0%

20.5%

14.9%

Tangible Common Equity

5

—

7.3%

7.3%

1

Except as noted in note 4 below, minimum ratios for “Well Capitalized”

are defined by Federal regulators under Basel I.

2

Calculated based on State Street’s estimates, based upon published statements of the Basel Committee and the Federal Reserve, of the effects of the requirements under Basel III

affecting capital.  See Appendix for a description of the specified capital ratios and related reconciliations of these ratios to ratios calculated under current regulations.

3  The tier 1 common ratio is not required by GAAP or on a recurring basis by bank regulations.  See Appendix for a description of this ratio and related reconciliations. 

4  Minimum ratio for “Well Capitalized,”

as defined by Federal regulators, applies to State Street Bank and Trust only and is therefore stated only as a reference point.

5  As defined by State Street.  The Tangible Common Equity ratio

is not required by GAAP or on a recurring basis by bank regulations. See Appendix for a description of this ratio

and related reconciliations.

8

Average Number of Products Used

Average Length of Relationship

Top 100 Clients

14.2 Products

20.3 Years

Top 1,000 Clients

8.5 Products

11.4  Years

2011 Performance

Deepened Client Relationships

Growing Momentum in Core Businesses

Asset Servicing Fee

Revenue +11%

1

•

Deepened client relationships: 80% of new revenue growth

came from existing clients

•

Differentiated solutions

•

Flight to quality

Asset Management

Fee Revenue +11%

1

•

Improved performance (68% of funds outperformed their one-

year benchmarks)

2

•

New products: introduced 32 new ETFs

•

Enhanced distribution

1

Compared to 2010.

2

As of December 31, 2011.

9

2011 Performance

Deepened Client Relationships

Business

2011 New

Wins

1

($BN)

%

Installed through

Q4 ($BN)

To be Installed

($BN)

US Asset Servicing

$820.8

58.3%

$736.1

$84.7

Non-US Asset Servicing

$587.1

41.7%

$401.6

$185.5

Total Asset Servicing

$1,407.9

$1,137.7

$270.2

US Asset Management

$468.1

61.8%

$455.1

$13.0

Non-US Asset Management

$289.1

38.2%

$282.1

$7.0

Total Asset Management

$757.2

$737.2

$20.0

1

Assets as of 12/31/11.

10

Alternative Assets Under

Administration as of 6/30/11

Custody Assets Held by     

Global Custodians as of 12/31/11

Global Middle Office

Outsourcing as of 6/30/11

2011 Performance

Continued Market Leadership

Source: ICFA Annual Fund Admin Survey 2011.

*STT AuA at 12/31/2011 was $816BN.

Source: Scrip Issue Global Report (9/2011).

Source: Company reports and Globalcustody.net

Data for BNY, State Street, reflect AUA as of

12/31/2011; as of 9/30/11 for BNP Paribas and

Societe Generale; as of 12/31/10 for HSBC; all others

reflect AUC data: JP Morgan, Citi, & Northern Trust,

as of 12/31/11; CACEIS as of 3/31/11. 

11

AUM, $BN

Global  Assets

Managed as of 12/31/11

$BN

Global Securities Lending       

Q4 2011 Average Assets on Loan

Global ETF Assets

Managed as of 12/31/11

2011 Performance

Continued

Market Leadership

AUM, $BN

Source:  Company reports 

*BlackRock as of 12/31/10.

Source: Company reports/websites; Strategic Insight

for Vanguard.

*Fidelity as of 11/2011.

Source: ETF Landscape Report (12/2011).

12

Progress in 2011

•

Effectively balanced need for investment and

expense control

•

Reduced full-year ratio of compensation to revenue

to 40.2%

•

Implemented targeted staff reductions

•

Accelerated Business Operations and Information

Technology Transformation Program in view

of environment

–

Achieved $86 million in annual pre-tax, run-

rate expense savings

1

2011 Performance

Effectively Managed Expenses

1  Excluded

restructuring

charges;

compared

to

2010,

all

else

being

equal.

Annual

pre-tax,

run-rate

expense

savings

related

only

to

the

Business

Operations

and

Information

Technology Transformation program; actual operating expenses of the Company may increase or decrease due to other factors.

13

2011 Performance

Outperformed Peers

Operating / Adjusted-Basis

Results Full-Year 2011 vs. 2010

STT

BK

NTRS

Revenue Growth

9.0%

6.3%

3.3%

EPS Growth

9.7%

(7.0)%

(9.1)%

Pre-tax Margin

28.6%

25.0%

23.6%

Return on Equity

9.9%

8.6%

8.5%

Net Interest Margin

1.52%

2

1.36%

1.27%

Tier 1 Common

16.9%

13.4%

12.1%

Tier 1 Common (under Basel III)

12.1%

7.1%

12.3%

1

Tier

1

common

and

Tier

1

common

(under

Basel

III)

data

stated

as

of

12/31/11.

Each

company’s

operating/adjusted

(non-GAAP)

presentation

may

be

calculated

differently

and

therefore

may

not

be

comparable

to

other

companies’

operating/adjusted

(non-GAAP)

presentations.

Please

review

each

company’s

public

filings

and

earnings

reports

for a

description, to the extent contained therein, of their respective operating/adjusted presentations (including capital ratios).  For STT, financial data is presented on an operating,

(non-GAAP) basis, and tier 1 common ratios include non-GAAP data in their calculation (in addition to Basel III ratios based upon various estimates).  For a description of this

operating-basis presentation, as well as a description of referenced ratios and related reconciliations, see the Appendix.

2  Includes excess client deposits.

1

14

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

1-Year Total Return: 12/31/2010 - 12/31/2011

2011 Performance

Outperformed Peers

Bank of New York Mellon Corp.

Northern Trust Corp.

S&P 500 / Financials

State Street Corp.

STT -11.5%

S & P Fin. -17.1%

NTRS -26.6%

BK -32.3%

Source: FactSet

STT Total Return Significantly Outperformed Primary Peers and Broader Financial Index

15

1/09

4/09

7/09

10/09

1/10

4/10

7/10

10/10

1/11

4/11

7/11

10/11

-80%

-60%

-40%

-20%

0%

20%

40%

60%

3-Year Total Return: 12/31/2008 - 12/31/2011

2011 Performance

Outperformed Peers

Bank of New York Mellon Corp.

Northern Trust Corp.

S&P 500 / Financials

State Street Corp.

STT  4.5%

S & P Fin. 9.0%

NTRS -18.5%

BK -26.0%

Source: FactSet

STT Total Return Significantly Outperformed Primary Peers

12/11

16

Building from Strength

Agenda

2011 Performance

Strategic Direction

–

Jay Hooley

Globalization

Business Operations and

Information Technology Transformation Program

Financial Update

Summary

17

Strategic Direction

•

Expand market share and share of wallet

•

Aggressively manage client profitability

•

Double non-US revenue by 2014, compared

to 2009

•

Develop client-driven solutions

•

Accelerate new product development

•

Driven by technology and business process

transformation

•

Complemented by a flexible workforce

•

Invest in deep local market expertise

•

Increase dividends / share purchases

•

Pursue attractive acquisitions

Drive Profitable Growth

Develop and Attract Top Talent

Transform Operating Model

Invest in Innovation

Leverage Capital Strength

18

Strategic Direction

Long-Term Trends Support Growth

•

Ongoing globalization of investment and

distribution channels

•

Driven by demographics, especially in

Europe and Asia

•

Evolution of retirement / savings schemes

•

Driving growth in outsourcing

•

Growth in alternative assets globally

•

Solutions orientation within

asset management

•

Fostered by regulatory requirements

•

Increasing requirement for

global capabilities

Globalization

Retirement Savings

Complexity

Consolidation

19

Year ended

12/31/01

2

Year ended

12/31/11

% Change

Revenue

3

$3.8BN

$9.5BN

+150%

Non-US Revenue

3

$1.0BN

$3.9BN

+290%

Employees

4

18,840

29,740

+58%

Non-US Employees

4

4,200

13,350

+218%

Strategic Direction

Globalization

1  Based on AUA; Company data as of 12/31/11. 

2  Data exclude the revenue and employees associated with the Corporate Trust and Private Asset Management businesses divested in 2002 and 2003, respectively.

3  Financial information presented on an operating, or non-GAAP, basis (which is adjusted to exclude, among other things, conduit-related discount accretion).

For a description of GAAP and operating-basis revenue, and related reconciliations, please see the Appendix.  

4  At period end.

•

Globalization of asset pools continues to accelerate

•

Europe 10-year asset growth = 1024%

1

•

Asia Pacific 10-year asset growth = 403%

1

20

Strategic Direction

Retirement Savings

2005

2007

2008

2011E

2015E

APAC

Europe

Latin America

Other

Non-US Retirement Growth

US Retirement Growth

2005

2007

2008

2011E

2015E

DB

DC

IRA

$13.2T

$16.0T

$12.4T

$16.0T

$20.7T

10.1%

CAGR

7.6%

CAGR

$6.6T

$8.5T

$7.4T

$9.8T

$13.6T

13.5%

CAGR

9.1%

CAGR

Almost 50% of non-US retirement asset growth

(2011 –

2015) expected to come from Europe

Source: Cerulli Associates , Global Markets 2011.

DC and IRA assets expected to lead US

retirement growth, with 8.7% and 9.3%

expected CAGRs (2008 –

2015), respectively

Global

Retirement

Assets

Are

Expected

to

Grow

at

a

CAGR

of

7.4%

from

2011

through

2015

21

•

Globalization

•

Regulation

•

Need for transparency around risk management

•

Enhanced data reporting

Hedge Fund Servicing

•

Largest servicer in the world

1

in a market sized at

$1.98TN

2

and growing at an estimated 12% CAGR

from 2010 through 2014

3

Investment Manager

Operations Outsourcing

•

No. 1 provider

4

in a market of about $65TN

5

Investment Management

Solutions

•

Offer customized strategic and tactical asset

allocation solutions globally

Strategic Direction

Complexity

DRIVEN BY

1

ICFA

Annual

Fund

Administration

Survey,

2011.

2

Hedge

Fund

Research,

9/30/11.

3

BCG,

Global

Asset

Management

Report,

7/2011.

4

Scrip

Issue

Global

Report,

9/2011.

5

Data

as

of

12/31/10

in

Pensions

&

Investment/Wyatt

Watson,

10/31/11.

22

Strategic Direction

Consolidation: Top 20 Companies by AUC / AUA

1

($TN)

Source:

Company

reports,

Global

Custody.net.

1

Data

for

BNY,

State

Street,

reflect

AUA

as

of

12/31/2011;

as

of

9/30/11

for

BNP

Paribas,

Societe

Generale,

RBC

Dexia;

as

of

12/31/10

for

HSBC;

all

others

reflect

AUC

data:

JP

Morgan,

Citi,

&

Northern

Trust,

as

of

12/31/11;

UBS,

Nordea,

Pictet

as

of

9/30/11;

CACEIS

as

of

3/31/11;

SEB

as

of

1/31/11;

Brown

Brothers,

SIX

SIS,

Santander,

NAB

as

of

12/31/10. 

Driven by Global Scale and Capital Requirements

23

Building from Strength

Agenda

2011 Performance

Strategic Direction

Globalization

–

Scott Powers, Joseph C. Antonellis, Peter O’Neill

Business Operations and

Information Technology Transformation Program

Financial Update

Summary

24

Globalization

Competitive Advantage

MIDDLE OFFICE

BACK OFFICE

Key

Opportunities

•

Client focus on core competencies heightening demand for

outsourced solutions

•

Need for greater transparency  and data management driving

demand for value added solutions

•

Separation of Alpha and Beta fueling opportunities in

asset management

Integrated Solutions Across Investment Spectrum

FRONT OFFICE

•

Investment Management

•

Investment Solutions

•

Investment Research

•

Trade Execution and

Implementation

•

Investment Valuation

•

Performance and Risk Reporting

•

Regulatory Reporting

•

Trade Clearing and Settlement

•

Cash and Collateral Management

•

Reconciliation and

Position Reporting

•

Data Management

•

Fund Accounting

•

Fund Administration

•

Custody

•

Transfer Agency

25

1

As of December 31, 2011. 

NORTH AMERICA

$1,328BN AUM

$16,367BN AUC / A

EUROPE, MIDDLE

EAST, AFRICA

$320BN AUM

$4,400BN AUC / A

ASIA PACIFIC

$210BN AUM

$1,040BN AUC / A

10-year Revenue CAGRs (2001 –

2011): US = 7.5% and non-US = 14.1%

Spanning the Globe with Investment

Servicing and Investment Management

Globalization

Strong Global Footprint

1

26

Globalization

Strong Global Footprint –

Europe, Middle East, and Africa 10-Year View (2001 –

2011)

14 Countries, 9,000 Employees

SWITZERLAND

LUXEMBOURG

IRELAND

CHANNEL ISLANDS

GREAT BRITAIN

BELGIUM

GERMANY

FRANCE

ITALY

POLAND

THE NETHERLANDS

UAE

QATAR

SOUTH AFRICA

Major Acquisition

New Office Opened

Existing Office

AUSTRIA

27

Globalization

European Collectives, Pension, Insurance Markets: $22.4TN

1

1

Total

Market

size

includes

STT

key

European

markets

serviced:

UK,

Netherlands,

Germany,

Ireland

/

Luxembourg

(Offshore

Assets),

Italy,

Spain,

Switzerland

and

France.

2

EFAMA

Quarterly

Statistical

Release,

3rd

Quarter,

November

2011,

No.47,

Combined

UCITS

&

Non-UCITS.

3

CEA

Insurance

YE

2010

Report;

2010

and

2001

total

insurers’

investment

portfolio

assets.

4

Cerulli,

Quantitative

Update,

Global

Markets,

YE

2005

&

June

2011;

Towers

Watson,

Global

Pension

Asset

Study

Feb

2011

&

Watson

Wyatt

2007

Global

Pension

Asset

Study.

28

Globalization

Growing Faster Than the Market

European Collective,

Pension and Insurance Market

2001 –

2011

1

CAGR: 8.7%

$9.7TN

2001

$22.4TN

2011

1

Total assets include seven key European markets: UK, Netherlands, Germany, Ireland / Luxembourg offshore assets, Italy, Spain, Switzerland and France.   Sources: efama,

Quarterly Statistical Release, Fourth Quarter 2001, Combined UCITS & Non UCITS; CEA Statistics, European Insurance In Figures December 2010; Table 9 total insurers

investment portfolio; Cerulli, Quantitative Update, Global Markets, June 2011 & Watson Wyatt 2001 & 2007 Global Pension Asset Study.

2  AUA represents all European assets under custody / administration.

29

Globalization

Strong Global Footprint –

Asia Pacific 10-Year View (2001 –

2011)

10 Countries, 6,900 Employees

1

SOUTH KOREA

SINGAPORE

HONG KONG

BRUNEI

TAIWAN

CHINA

JAPAN

New Office

Opened / Underway

Existing Office

MALAYSIA

INDIA

AUSTRALIA

1

Includes JV employees in India.

30

Globalization

Asia Pacific Collectives, Pension, Insurance and Government-related

Overall Market Size and Market Share: $21.6TN

1

Total

assets

include

eight

key

markets:

Japan,

Australia,

Hong

Kong,

South

Korea,

Taiwan,

China,

India

and

Singapore.

2

ICI (9/11).

3

Towers

Watson

Global

Pension

Study

2011;

Cerulli

Quantitative

Updates:

Global

Markets,

2011.

4

National

insurancewebsites

(12/10);

STT

Estimates.

5

Government

websites,

World

Bank

country

international

reserves

statistics,

and

State

Street

estimates;

Japan

includes

Japan

Post

(9/10);

Taiwan

includes

Chunghwa

Post,

formerly Taiwan Post (9/10).

1

31

Globalization

Growing Faster Than the Market

Asia Pacific Collective, Insurance,

Pension, and Government  Market Growth

2001 –

2011

1

CAGR: 11.5%

$7.3TN

2001

$21.6TN

2011

State Street APAC AUM Growth

2001 –

2011

CAGR: 20.0%

$34BN

2001

$210BN

2011

State Street APAC / AUA

2

Growth

2001 –

2011

CAGR: 17.5%

$207BN

2001

$1,040BN

2011

1

Total assets include eight key markets: Japan, Australia, Hong Kong, South Korea, Taiwan, China, India and Singapore.  Sources: ICI (9/11):Towers Watson Global Pension Study

2011; Cerulli Quantitative Updates: Global Markets, 2011; National insurance websites (12/10); Government websites, World Bank country international reserves statistics, Japan

includes Japan Post (9/10); Taiwan includes Chunghwa Post, formerly Taiwan Post (9/10) and STT estimates.

2

AUA represents assets from Asia Pacific under custody /administration.

32

Globalization

Growth Strategies

New Sources of Value

Innovation

Increased Business

Complexity

Regulation &

Compliance

Data Integration

and Complexity

Operational Efficiency

Trends Fueling Growth

Client Challenges

Growth Priorities

Globalization

Retirement Savings

Complexity

Consolidation

Expand Local

Market Capabilities

and Footprint

Integrate Solutions

across Investment

Management Servicing

and Trading

Accelerate New

Product Development

Grow Through

Acquisitions and JVs

Deepen Client

Relationships

33

Building from Strength

Agenda

2011 Performance

Strategic Direction

Globalization

Business Operations and

Information Technology Transformation Program –

James S. Phalen, Christopher Perretta

Financial Update

Summary

34

Goals

•

Position the company for accelerated growth

•

Achieve estimated annual pre-tax, run-rate expense savings of

$575MN

to

$625MN

by

the

end

of

2014

for

full

effect

in

2015

1

•

Achieve, by the end of 2015, a 400bp improvement in

operating-basis pre-tax margin, compared to 2010 operating-

basis

pre-tax

margin,

assuming

all

else

being

equal

Business Operations and

Information Technology Transformation Program

Overview

1

Compared to 2010, all else being equal, estimated annual pre-tax, run-rate expense savings and operating-basis pre-tax margin improvement relate only to the Business

Operations and Information Technology Transformation program; actual operating expenses and operating margin of the Company may increase or decrease due to other factors. 

Includes operating-basis information.  Operating-basis information is a non-GAAP presentation.  See Appendix for a description of operating-basis information.

1

35

Business Operations and

Information Technology Transformation Program

Estimated Annual Pre-tax, Run-rate Expense Savings

$MN

2011

2012

2013

2014

2015

Business Operations Transformation

$158

$260

$370

$430

$440

Information Technology

Transformation

6

20

100

150

160

Net Benefits Before Non-recurring

Project-related Expenses

164

280

470

580

600

Less:  Non-recurring

Project-related Operating Expenses

78

100

70

40

0

Annual Pre-tax, Run-rate

Expense

Savings

$86

$180

$400

$540

$600

1  Compared

to

2010,

all

else

being

equal.

The

full

effect

of

the

annual

pre-tax,

run-rate

savings

is

not

expected

to

be

experienced

until

2015.

Chart

data

based

on

the

approximate

mid-point of the range of the estimated annual pre-tax, run-rate expense savings of $575MN-$625MN at the end of 2014, for full effect in 2015; estimated savings for individual

years

may

vary

up

or

down

based

on

the

execution

of

the

Business

Operations

and

Information

Technology

Transformation

program.

Annual

pre-tax,

run-rate

expense

savings

relate only to the Business Operations and Information Technology Transformation program; actual operating expenses of the Company may increase or decrease due to other

factors. 

1

36

Business Operations and

Information Technology Transformation Program

Operations Plan

14 Core Business

14 Core Business

Operations

Operations

Processes are

Processes are

in Scope

in Scope

2012 Milestones

•

Four key operations

transformation levers

–

Process

transformation

–

Automation

–

Consolidation

–

Workforce

optimization

•

Operations

transformation

portfolio includes

160+ initiatives

•

Initiatives have

been sequenced

into master plan

through 2014

•

Establish two additional

global Centers of

Excellence for a total of

seven overall

•

Achieve 20% targeted

automation benefits

•

Establish two new

low-cost locations

to balance our

global footprint

37

Business Operations and

Information Technology Transformation Program

IT Plan

Industrial-strength

Application Development

Key Program Benefits

Proprietary Real-time

Information

•

Automation /

capacity on demand

•

Accelerated time

to market

•

Integrated security

environment

•

Real-time data

infrastructure

•

Advanced platform

for product

innovation

•

Strengthened

client service

2012 Milestones

•

Scale cloud computing

platform to enable

major migrations in

2013 and 2014

•

Realize 20% of the

expected benefits from

our IT application

portfolio rationalization

•

Substantially complete

transition to previously

announced strategic

servicing relationships

38

Business Operations and

Information Technology Transformation Program

Industry View

1

Relative

position

for

“State

Street”

represents

State

Street

estimates.

39

Business Operations and

Information Technology Transformation Program

Competitive Advantage

Speed

•

Cloud cuts new product development time by 30%

•

Automated provisioning/compute on demand

•

More client value, delivered faster –

20% onboarding

improvement

Agility

•

Powerful, proprietary real-time data analytics

•

Any device, any time, any where

•

Core operating model leverages global footprint

•

Business scalability supports organic and M&A growth

Efficiency

•

Automation to reduce client risk and increase efficiency

•

Global operating model implementing straight-through

processing in core systems

•

Become industry’s best AND lowest cost provider

40

Building from Strength

Agenda

2011 Performance

Strategic Direction

Globalization

Business Operations and

Information Technology Transformation Program

Financial

Update

–

Edward

J.

Resch

Summary

41

Financial Update

2012 Environment

Fourth-Quarter Drivers

Environmental Factors in 2012

Expectations for 2012

Investment Portfolio Management

Capital

42

Financial Update

Fourth-Quarter Drivers

Revenue

•

Clients moved away from international and emerging markets,

reducing servicing and asset management fees

•

Weak capital markets lowered foreign exchange revenue

•

Excess client deposits increased net interest revenue, but

reduced NIM

•

Impact of the stronger US dollar

•

Solid new business wins continued

Expense

•

Accelerated Business Operations and Information Technology

Transformation program

•

Targeted staff reductions

•

Reduced incentive compensation

•

Controlled headcount and compensation

•

Withdrew from our fixed-income trading initiative

43

Financial Update

Economic and Market Factors in 2012

•

US GDP growth expected to slow to about 2%

•

Eurozone uncertainty expected to continue with GDP in 2012 to decline

about (0.5)%

•

Worldwide administered rates expected to remain low

•

Consumer confidence expected to remain muted

•

Expect S & P 500 to increase on average 5% to 1328 and MSCI EAFE®

to

decline on average 7% to 1494

•

Strong dollar expected to continue

•

Continued regulatory uncertainty

44

Financial Update

Expectations for 2012

Revenue

•

Execute effective cross-sell strategy

•

Attract new business in fast-growing product areas

•

Increase rigor in pricing

•

Prudently manage the investment portfolio

Expense

•

Execute Business Operations and Information Technology

Transformation program

•

Reduce compensation-to-revenue ratio by about 100 basis points,

assuming modest revenue growth

•

Expect increased regulatory and compliance costs

•

Continue to invest in technology through the cycle

45

Financial Update

Expectations for 2012: Market-Driven Revenues

1  Based on data from Data Explorers Universe as of period end.

2  Based on STT’s customer-weighted volumes.

46

Interest-rate

Assumptions

for 2012

•

Worldwide administered rates on hold through 2012

•

Yield curves retain current shape

Investment Portfolio

•

Duration: 1.49

years driving balance sheet gap of 0.36 years

•

89% AAA / AA rated; fixed / floating ratio: 41% / 59%

•

Growth in 2012 to be consistent with growth of

underlying business

Reinvestment

Strategy

•

Expect about $20BN to mature or pay down in 2012

•

Expect to purchase primarily AAA-

and AA-rated Agency

mortgage-backed securities and asset-backed securities

Peripheral Country

Exposure

1

•

No sovereign exposure

•

$1.2BN in securities, primarily RMBS –

performing well

Financial Update

Investment Portfolio Management

1

Portugal, Ireland, Italy, Greece and Spain. 2  Information stated on an operating, or non-GAAP, basis (which is adjusted to exclude, among other things, discount accretion). 

For a description of operating-basis information, please see the Appendix.

2012

Operating-Basis

NIM

Expected

to

be

in

Range

of

145

to

155

bps

2

47

Financial Update

Capital: Deployment

CCAR in Process

•

Response expected by mid-March

Dividend

•

Payout ratio target: 20% –

25%

Share Purchase Program

•

Expect to return as much capital to shareholders

as allowed

Acquisitions

•

Expect to be opportunistic and disciplined

•

Criteria:

–

Aligned with our strategy

–

Expect accretion within the first full year of operation

–

Projected return to be higher than our WACC

48

Financial Update

Capital:

Return

on

Equity

Target

1

Improved Operating

Margin

•

Successful execution of Business Operations and Information

Technology Transformation program

Interest Rates

•

A more normalized rate environment

(3% FF; 5% 10-year U.S. Treasury)

Capital Management

•

Migrate from earnings-based to capital-ratio

distribution model

Tier

1

Common

Ratio

1

•

Manage to 10% ratio, assuming a 1% G-SIB buffer

Realization of These Drivers is Expected to Result

in a Long-Term ROE

2

Target Range of 12% to 15%

1   Estimated under Basel III regulations, as understood, at fully phased-in levels.

2   Stated on an operating, or non-GAAP, basis (which is adjusted to exclude, among other things, conduit-related discount accretion).  For a description of operating-basis  

information,  please see the Appendix.

49

Building from Strength

Agenda

2011 Performance

Strategic Direction

Globalization

Business Operations and Information Technology

Transformation Program

Financial Update

Summary

–

Jay

Hooley

Summary

Building from Strength

Resilience

Amid Challenges

Focused Strategy

Fueled by Macro Trends

Leading

Global Footprint

Rigorous Expense and

Balance Sheet Management

Strong Capital

Driving

Long-term

Shareholder

Value

50

APPENDIX

51

STATE STREET CORPORATION

RECONCILIATION OF OPERATING-BASIS RESULTS

State Street prepares its consolidated statement of income in accordance with accounting principles generally accepted in the U.S., or GAAP. In addition, State Street presents financial information on a non-GAAP basis, referred to as “operating” basis. Management measures and compares certain financial information on an operating basis, as it believes that this presentation supports meaningful comparisons from period to period and the analysis of comparable financial trends with respect to State Street’s normal ongoing business operations. Management believes that operating-basis financial information, which reports revenue from non-taxable sources on a fully taxable-equivalent basis and excludes the impact of revenue and expenses outside of the normal course of business, facilitates an investor’s understanding and analysis of State Street’s underlying financial performance and trends in addition to financial information prepared in accordance with GAAP. The tables presented below reconcile financial information prepared on an operating basis to financial information prepared and reported in accordance with GAAP.

(Dollars in millions, except per share amounts)	Year Ended December 31, 2010									Year Ended December 31, 2011									% Change
	Reported Results			Adjustments			Operating-Basis Results			Reported Results			Adjustments			Operating-Basis Results			2011 vs. 2010
Total fee revenue	$	6,540					$	6,540		$	7,194					$	7,194
Net interest revenue		2,699		$	(583	)(1)		2,116			2,333		$	(92	)(7)		2,241
Gains (Losses) related to investment securities, net:		(286	)		344	(2)		58			67			—			67
Total revenue		8,953			(239	)		8,714			9,594			(92	)		9,502			9.0	%
Provision for loan losses		25			—			25			—			—			—
Total expenses		6,842			(666	)(3)		6,176			7,058			(269	)(8)		6,789			9.9	%
Income before income tax expense		2,086			427			2,513			2,536			177			2,713
Income tax expense		530			146	(4)		676			616			79	(9)		695
Tax-equivalent adjustment		—			129	(5)		129			—			128	(5)		128
Net income	$	1,556		$	152		$	1,708		$	1,920		$	(30	)	$	1,890
Adjustments to net income:
Dividend on preferred stock	$	—		$	—		$	—		$	(20	)	$	—		$	(20	)
Earnings allocated to participating securities		(16	)		(2	)(6)		(18	)		(18	)		—			(18	)
Net income available to common shareholders	$	1,540		$	150		$	1,690		$	1,882		$	(30	)	$	1,852
Diluted earnings per common share	$	3.09		$	.31		$	3.40		$	3.79		$	(.06	)	$	3.73			9.7	%
Average diluted common shares outstanding (in thousands)		497,924			497,924			497,924			496,072			496,072			496,072
Return on common equity		9.5	%		0.9	%		10.4	%		10.0	%		(0.1	)%		9.9	%		(50	)bps
Net interest margin(10)		2.24	%		(0.56	)%		1.68	%		1.67	%		(0.15	)%		1.52	%
Pre-tax margin(11)		23.3	%		5.5	%		28.8	%		26.4	%		2.2	%		28.6	%

(1) Represents tax-equivalent adjustment of $129 million, not included in reported results, net of $712 million of discount accretion related to former conduit securities.

(2) Represents a net loss related to a repositioning of the investment portfolio.

(3) Represents $89 million of integration costs; $156 million of restructuring charges related to the business operations and information technology transformation program; a charge, composed of $330 million to provide for a one-time cash contribution to the SSgA lending fund collateral pools and liquidating trusts and $9 million of associated costs; $75 million to establish a reserve to address potential inconsistencies in the application of redemption policy for agency lending collateral pools; and $7 million of tax on bonus payments to employees in the U.K.

(4) Represents a discrete tax benefit of $180 million related to former conduit assets and the net tax effect of non-operating adjustments.

(5) Represents tax-equivalent adjustment, not included in reported results.

(6) Represents effect of the difference between reported and operating-basis earnings on allocation to participating securities.

(7) Represents tax-equivalent adjustment of $128 million, not included in reported results, net of $220 million of discount accretion related to former conduit securities.

(8) Represents $71 million of integration costs related to previous acquisitions; a $55 million indemnification benefit for an income tax claim related to the 2010 acquisition of the Italian securities services business; $133 million of restructuring charges related to the business operations and information technology transformation program; and $120 million of restructuring charges mainly related to our withdrawal from our fixed-income trading initiative.

(9) Represents a discrete tax benefit of $103 million related to former conduit assets, income tax expense of $55 million related to the indemnification benefit described in note (8), and the net tax effect of non-operating adjustments.

(10) Reported margin for the year ended December 31, 2010 represents fully taxable-equivalent net interest revenue of $2.83 billion (reported net interest revenue of $2.70 billion plus a tax-equivalent adjustment of $129 million) as a percentage of reported average interest-earning assets for the period. Reported margin for the year ended December 31, 2011 represents fully taxable-equivalent net interest revenue of $2.46 billion (reported net interest revenue of $2.33 billion plus a tax-equivalent adjustment of $128 million) as a percentage of reported average interest-earning assets for the period.

(11) Represents income before income tax expense as a percentage of total revenue.

STATE STREET CORPORATION

Reconciliations of Tangible Common Equity and Tier 1 Common Ratios

December 31, 2011

The ratio of tangible common equity to adjusted tangible assets, or 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 bank 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.

The tier 1 risk-based common, or tier 1 common, ratio is calculated by dividing tier 1 capital, which is calculated in accordance with applicable bank regulatory requirements, less non-common elements, including preferred stock and qualifying trust preferred securities, by total risk-weighted assets, which assets are also calculated in accordance with applicable bank regulatory requirements. The tier 1 common ratio is not required by GAAP or on a recurring basis by bank regulations. However, this ratio has been used by the Federal Reserve in connection with its evaluation of the capital adequacy of certain large U.S. bank holding companies. In addition, management is currently monitoring this ratio, along with the other capital ratios, in evaluating State Street’s capital levels and believes that, at this time, the ratio may be of interest to investors.

The table set forth below presents the calculations of State Street’s ratios of tangible common equity to total tangible assets, and tier 1 common capital to total risk-weighted assets.

(Dollars in millions)		December 31, 2011
Consolidated Total Assets		$	216,302
Less:
Goodwill			5,645
Other intangible assets			2,459
Excess reserves held at central banks			50,094
Adjusted assets			158,104
Plus deferred tax liabilities			757
Total tangible assets	A	$	158,861
Consolidated Total Common Shareholders’ Equity		$	18,898
Less:
Goodwill			5,645
Other intangible assets			2,459
Adjusted equity			10,794
Plus deferred tax liabilities			757
Total tangible common equity	B	$	11,551
Tangible common equity ratio	B/A		7.3	%
Tier 1 Capital		$	13,625
Less:
Trust preferred securities			950
Preferred stock			500
Tier 1 common capital	C	$	12,175
Total risk-weighted assets	D	$	72,234
Ratio of tier 1 common capital to total risk-weighted assets	C/D		16.9	%

STATE STREET CORPORATION

BASEL III CAPITAL RECONCILIATION

December 31, 2011

The table set forth below reconciles State Street’s capital ratios calculated in accordance with currently applicable bank regulatory requirements, as well as the tier 1 common ratio, to estimated ratios calculated in accordance with Basel III as State Street currently understands the impact of the Basel III requirements.

(Dollars in millions)	Current Requirements (1)				Basel III Requirements (2)
Tier 1 capital	$	13,625		A	$	13,030
Less:
Trust preferred securities		950				637
Preferred stock		500				500
Tier 1 common capital		12,175		B		11,893
Total capital		14,823		C		14,682
Total risk-weighted assets		72,234		D		98,335
Adjusted quarterly average assets		186,021		E		231,924
Tier 1 capital ratio		18.9	%	A/D		13.3	%
Total capital ratio		20.5	%	C/D		14.9	%
Tier 1 common ratio		16.9	%	B/D		12.1	%
Tier 1 leverage ratio		7.3	%	A/E		5.6	%

⁽¹⁾  Actual (unaudited) total capital, tier 1 capital and tier 1 leverage ratios were calculated in accordance with currently applicable bank regulatory requirements. Tier 1 common ratio was calculated by dividing (a) tier 1 capital less non-common elements including qualifying perpetual preferred stock, qualifying minority interest in subsidiaries and qualifying trust preferred securities (tier 1 common capital), by (b) total risk-weighted assets, which were calculated in accordance with currently applicable bank regulatory requirements.

⁽²⁾  For purposes of the calculations in accordance with Basel III (see below), total capital, tier 1 capital and tier 1 leverage ratios, total risk-weighted assets and adjusted quarterly average assets were calculated based on State Street’s estimates, based on published statements of the Basel Committee and the Federal Reserve, of the effects of the requirements under Basel III affecting capital. The tier 1 common ratio was calculated by dividing (a) tier 1 common capital (as described in footnote (1)), but with tier 1 capital calculated in accordance with Basel III by, (b) total risk-weighted assets, which are calculated in accordance with Basel III. State Street calculates its capital ratios in accordance with the requirements of the Board of Governors of the Federal Reserve System, which has not yet adopted Basel III. There remains considerable uncertainty concerning the timing for adoption and implementation of Basel III by the Federal Reserve. When adopted, the Federal Reserve may implement Basel III with some or more modifications or adjustments. Therefore, State Street’s current understanding of Basel III, as reflected in the table above, may be different from the ultimate application of Basel III by the Federal Reserve to State Street.

• Tier 1 capital used in the calculation of the tier 1 capital and tier 1 leverage ratios decreased by $595 million, as a result of applying estimated Basel III requirements to tier 1 capital of $13.625 billion as of December 31, 2011. Total capital used in the calculation of the total capital ratio decreased by $141 million, as a result of applying estimated Basel III requirements to total capital of $14.823 billion as of December 31, 2011.

• Tier 1 common capital used in the calculation of the tier 1 common ratio was $11.893 billion, reflecting the adjustments to tier 1 capital described in the first bullet above. Tier 1 common capital used in the calculation is therefore calculated as adjusted tier 1 capital of $13.030 billion less non-common elements of capital, composed of trust preferred securities of $637 million and preferred stock of $500 million as of December 31, 2011, resulting in tier 1 common capital of $11.893 billion. At December 31, 2011, there was no qualifying minority interest in subsidiaries.

• Total risk-weighted assets used in the calculation of the total capital, tier 1 capital and tier 1 common ratios increased by $26.101 billion as a result of applying estimated Basel III requirements to total risk-weighted assets of $72.234 billion as of December 31, 2011.

• Consolidated adjusted quarterly average assets used in the calculation of the leverage ratio increased by $45.903 billion as a result of applying estimated Basel III requirements to the actual consolidated adjusted quarterly average assets of $186.021 billion as of December 31, 2011.

STATE STREET CORPORATION

RECONCILIATION OF OPERATING-BASIS RESULTS

State Street prepares its consolidated statement of income in accordance with accounting principles generally accepted in the U.S., or GAAP. In addition, State Street presents financial information on a non-GAAP basis, referred to as “operating” basis. Management measures and compares certain financial information on an operating basis, as it believes that this presentation supports meaningful comparisons from period to period and the analysis of comparable financial trends with respect to State Street’s normal ongoing business operations. Management believes that operating-basis financial information, which reports revenue from non-taxable sources on a fully taxable-equivalent basis and excludes the impact of revenue and expenses outside of the normal course of business, facilitates an investor’s understanding and analysis of State Street’s underlying financial performance and trends in addition to financial information prepared in accordance with GAAP. The tables presented below reconcile financial information prepared on an operating basis to financial information prepared in accordance with GAAP.

	Year Ended December 31, 2001							Year Ended December 31, 2011
(Dollars in millions)	Reported Results		Adjustments			Operating-Basis Results		Reported Results		Adjustments			Operating-Basis Results		% Change 2001 - 2011
Total fee revenue	$	2,769	$	(122	)(1)	$	2,647	$	7,194				$	7,194
Net interest revenue		1,025		42	(2)		1,067		2,333	$	(92	)(3)		2,241
Gains related to investment securities, net:		43		—			43		67		—			67
Total revenue	$	3,837	$	(80	)	$	3,757	$	9,594	$	(92	)	$	9,502		152.9	%

(1) Represents revenue associated with the Corporate Trust and Private Management businesses divested in 2002 and 2003, respectively.

(2) Represents tax-equivalent adjustment of $42 million, not included in reported results.

(3) Represents tax-equivalent adjustment of $128 million, not included in reported results, net of $220 million of discount accretion related to former conduit securities.