Exhibit 99.1
In Third Quarter State Street Corporation Saw Less Favorable Market Conditions
Than in First Half
BOSTON--(BUSINESS WIRE)--Oct. 12, 2004--
Market-Driven Revenues & Expenses Down from Q2;
Servicing and Management Fees Steady
State Street Corporation today announced third-quarter earnings
per diluted share of $0.52, or net income of $177 million, on revenue
of $1.2 billion. These results compare to earnings per diluted share
of $0.60, or net income of $202 million, on revenue of $1.1 billion
in the third quarter of last year. Total expenses in the third quarter
of 2004 were $906 million compared to $821 million in the year-ago
quarter. For the third quarter of 2004, return on stockholders' equity
was 11.7%.
Operating earnings per diluted share for the third quarter were
$0.55, down 15% compared to operating earnings per diluted share of
$0.65 for the third quarter of 2003 and were down 19%, compared to the
second quarter of 2004. Operating results for 2003 have been reduced
by $0.01 per diluted share reflecting the impact of the divested
Private Asset Management business.
Operating revenue of $1.2 billion in the third quarter of 2004 was
up 6% from the third quarter of 2003, and down 9% from $1.3 billion in
the second quarter of 2004 due to the impact of market-driven revenue,
primarily related to foreign exchange and securities lending revenue.
Operating expenses of $890 million in the third quarter of 2004 were
up $109 million, or 14%, from the third quarter of 2003, but down 5%
from $937 million in the second quarter. Return on stockholders'
equity on an operating basis was 12.3% for the third quarter of 2004.
Operating revenue for the nine months ended September 30, 2004 was
up 15%, from $3.2 billion to $3.7 billion, compared to the same period
a year ago and operating earnings per share were up 20%, from $1.58 to
$1.90. Operating expenses for same period were $2.7 billion, an
increase of 14% from $2.4 billion in the year-ago period.
Results for the third quarter of 2004 include pretax merger and
integration costs of $16 million, or $0.03 per diluted share due to
the continuing integration of the Deutsche Bank Global Securities
Services business (GSS), acquired in January 2003. Results for the
third quarter of 2003 included pretax merger and integration costs of
$26 million related to the GSS acquisition, as well as restructuring
costs, resulting in a net charge of $0.06 per diluted share. Third
quarter 2003 results also included the operating results of the
divested Private Asset Management business which was sold in 2003.
For the nine months ended September 30, 2004, earnings per share
of $1.80 compared with $0.82 for the year-ago period on revenues of
$3.7 billion in 2004 and $3.2 billion in 2003, an increase of 14%. The
2004 results include $50 million for merger and integration charges or
$0.10 per share; in 2003, merger and integration charges,
restructuring charges, and other charges total to a charge of $0.80
per share.
Commenting on the quarter, Ron Logue, State Street's chairman and
chief executive officer, said, "While our investment servicing and
management fees were up about 15% from the year-ago quarter and were
flat with the second quarter of 2004, I am very disappointed with our
results this quarter. We saw a sharp decline in foreign exchange,
brokerage, and securities lending revenue in the quarter compared to
the second quarter due to market activity. We lowered expenses,
compared to the second quarter, but not at a significant enough level
to offset the decline in these market-driven revenues. We are taking
steps to align expenses with revenues, not as a reaction to this
quarter's results, but as a conscious effort we began early in July.
These changes will not only help us better absorb shifts in
market-driven revenue, but more importantly, strategically allocate
our resources."
He concluded, "We continued to win new business, adding a total of
sixteen new asset servicing assignments in Europe and eight in
Asia/Pacific. State Street Global Advisors had some impressive wins
this year, both in Europe and in the US, adding $104 billion in net
new business. As we continue to grow, we will continue to look at our
business, and find areas where we can either eliminate or combine
units to achieve greater efficiency and capitalize on scale. As an
initial result, we are in the process of restructuring our business in
several areas: we are limiting our near-term investment in wealth
manager services, integrating the management of our balance sheet into
the Treasury group, combining corporate cash management with
securities operations, and exiting the 529 education plan servicing
business. As a result of these decisions and some others, we will
eliminate about 425 positions, which will save us about $50 million
annualized with little impact on revenue. We expect to incur a charge
of about $25 million in the fourth quarter. We believe these actions
will put us in a better position to achieve improved long-term
results."
State Street is also announcing that it is reactivating its stock
purchase program. The company currently has an 8.3 million stock
purchase authorization.
In addition, the company is announcing that it is divesting its
remaining high-net-worth investment management business, Bel Air
Investment Advisors LLC and is in discussions to sell it back to the
partners. The company expects to record pretax charges between $150
and $170 million upon closing which is expected to be completed during
the first half of 2005.
In reporting its financial results, State Street has prepared
information in two categories:
-- "Reported" results are in accordance with generally accepted
accounting principles (GAAP).
-- "Operating" results are reported results for the three- and
nine-month periods in 2004 excluding merger and integration
costs, and for the three- and nine-month periods in 2003
excluding merger and integration costs, restructuring costs,
and the results of a divested business, and for the nine-month
period, the loss on the sale of certain real estate and the
settlement of a state tax legislation issue. Operating results
are presented on a taxable-equivalent basis.
State Street believes that non-GAAP financial information assists
investors and others by providing them with financial information in a
format that presents comparable financial trends of ongoing business
activities.
THIRD-QUARTER OPERATING RESULTS VS. YEAR-AGO QUARTER
Operating revenue of $1.2 billion in the third quarter of 2004 was
up from $1.1 billion or 6% from the third quarter of 2003.
Servicing fees were $568 million, up $63 million or 12%, from $505
million in the year-ago quarter. The increase was attributable to new
business from existing and new clients and by higher equity valuations
in 2004. Total assets under custody were $9.0 trillion, up 3%,
compared with $8.8 trillion in the year-ago quarter.
Management fees, generated by State Street Global Advisors, were
$156 million, up $34 million, or 28%, compared to $122 million in the
year-ago quarter. The increase in management fees reflected new
business from existing and new clients and higher equity valuations in
2004. Total assets under management were $1.2 trillion, up 28%,
compared to $965 billion the previous year.
Average month-end values for the S&P 500 Index were up 11% from
the third quarter of 2003; average month-end values for the MSCI(R)
EAFE Index(SM) were up 21%.
Securities lending revenue was $48 million in the quarter,
compared to $61 million in the year-ago quarter, a decrease of 21%.
The decrease reflects a short-term pressure on spreads from the recent
increases in the target Fed funds rate, partially offset by a 22%
increase in volume of securities on loan.
Foreign exchange trading revenue was $75 million for the quarter,
compared to $101 million in the year-ago quarter, a decline of 26%.
The decline was attributable to lower volatilities, lower cross-border
investment activities by our clients and changes in mix.
Brokerage fees were $31 million in the quarter, compared to $28
million in the year-ago quarter, up 11%.
Net interest revenue was $223 million, up $7 million or 3% from
$216 million in the year-ago quarter. This increase was attributed to
an increase in balance sheet size, offset largely by recent increases
in the target Fed funds rate.
Operating expenses of $890 million in the third quarter of 2004
were up $109 million or 14% from the third quarter of 2003. Salaries
and benefits expenses increased $72 million to $474 million, driven in
part by an increase in incentive compensation due to the 20% increase
in year-to-date performance. Merit increases and benefits costs also
contributed to the increase. Higher expenses also included an increase
of $16 million in transaction processing services, due to higher
volume-driven expenses, and an increase of $29 million in other
expense driven primarily by increased professional services expenses
needed to support growth initiatives and compliance requirements.
The effective tax rate in the third quarter of 2004 was 34%,
compared to 34% in the third quarter of 2003.
THIRD-QUARTER RESULTS VS. SECOND QUARTER
On a reported basis, third-quarter net income per diluted share of
$0.52, which included $16 million, or $0.03 per diluted share of
merger and integration charges, was down 20% compared to second
quarter net income per diluted share of $0.65, which included $16
million, or $0.03 per diluted share of merger and integration charges.
Total revenue in the third quarter of $1.2 billion was down 9% versus
$1.3 billion in the second quarter. Total expenses in the third
quarter of $906 million were down 5% or $47 million compared to $953
million in the second quarter.
On an operating basis, third-quarter net income per diluted share
was $0.55 compared to second quarter net income per diluted share of
$0.68. Revenue decreased 9% to $1.2 billion from $1.3 billion and
expenses decreased 5% to $890 million from $937 million.
GSS ACQUISITION UPDATE
On an operating basis, State Street's 2004 third-quarter results
included $0.04 earnings per share, after finance charges, on revenues
of $146 million and expenses of $114 million, which includes
"out-of-scope" GSS business. For the nine months ended September 30,
2004, operating earnings per diluted share totaled $0.08. Based on
current estimates, State Street now believes that the total GSS
business will contribute between $0.08 to $0.10 in operating earnings
per diluted share for 2004.
INVESTOR CONFERENCE CALL
State Street will webcast an investor conference call today,
Tuesday, October 12, 2004, at 9:30 a.m. EDT, available at
www.statestreet.com/stockholder. The conference call will also be
available via telephone, at +1 719/457-2617 (confirmation code
286996). Recorded replays of the conference call will be available on
the web site, and by telephone at +1 402/220-4230 (confirmation code
286996), beginning at 2:00 PM today. This press release and additional
financial information is available on State Street's website, at
www.statestreet.com/stockholder, under "Financial Reports."
State Street Corporation (NYSE: STT) is the world's leading
specialist in providing institutional investors with investment
servicing, investment management and investment research and trading.
With $9.0 trillion in assets under custody and $1.2 trillion in assets
under management, State Street operates in 24 countries and more than
100 markets worldwide and employs 20,000 people worldwide. For more
information, visit State Street's web site at www.statestreet.com or
call 877/639-7788 (NEWS STT) toll-free in the United States and
Canada, or +1 202/266-3340 outside those countries.
This news announcement contains forward-looking statements as
defined by United States securities laws, including statements about
the financial outlook and business environment. Those statements are
based on current expectations and involve a number of risks and
uncertainties, including those related to the pace at which State
Street adds new clients or at which existing clients use additional
services, the value of global and regional financial markets, the pace
of cross-border investment activity, changes in interest rates, the
pace of worldwide economic growth and rates of inflation, the extent
of volatility in currency markets, consolidations among clients and
competitors, State Street's business mix, the dynamics of markets
State Street serves, and State Street's success at integrating and
converting acquisitions into its business. Other important factors
that could cause actual results to differ materially from those
indicated by any forward-looking statements are set forth in State
Street's 2003 annual report and subsequent SEC filings. State Street
encourages investors to read the Corporation's annual report,
particularly the section on factors that may affect financial results,
and its subsequent SEC filings for additional information with respect
to any forward-looking statements and prior to making any investment
decision. The forward-looking statements contained in this press
release speak only as of the date hereof, October 12, 2004, and the
Corporation will not undertake efforts to revise those forward-looking
statements to reflect events after this date.
STATE STREET CORPORATION
Addendum Earnings Digest(1)
(Dollars in millions, except per share data)
Quarter ended September 30,
-------------------------------------
2004 2003 % Change
---------- --------- -----------
Revenue $1,174 $1,126 4
Earnings 177 202 (12)
Diluted earnings per share .52 .60 (13)
Nine months ended September 30,
-------------------------------------
2004 2003 % Change
---------- --------- -----------
Revenue $3,680 $3,228 14
Earnings 614 275 123
Diluted earnings per share 1.80 .82 120
- ----------------------------------------------------------------------
(1) Information presented in accordance with accounting principles
generally accepted in the United States
STATE STREET CORPORATION
Addendum Selected Financial Information
I. CONSOLIDATED STATEMENT OF INCOME PREPARED IN ACCORDANCE WITH
ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES
Reported Results Reported Results
Quarter ended Nine months ended
Sept. 30, Sept. 30,
------------------------- -------------------------
(Dollars in
millions,
except per
share data) 2004 2003 2004 2003
--------------- ---------- ------------ ---------- ------------
Fee Revenue:
Servicing fees $ 568 $ 505 $ 1,693 $ 1,425
Management fees 156 141 456 396
Global
securities
lending 48 61 201 192
Foreign
exchange
trading 75 101 309 276
Brokerage fees 31 28 112 85
Processing fees
and other 83 92 248 225
---------- ------------ ---------- ------------
Total Fee
Revenue 961 928 3,019 2,599
Net Interest Revenue:
Interest revenue 463 364 1,255 1,162
Interest expense 250 161 613 562
---------- ------------ ---------- ------------
Net interest revenue 213 203 642 600
Provision for
loan losses - - - -
---------- ------------ ---------- ------------
Net interest
revenue after
provision for
loan losses 213 203 642 600
Gains on the
sales of
available-for-
sale investment
securities, net - (5) 19 29
---------- ------------ ---------- ------------
Total Revenue 1,174 1,126 3,680 3,228
Operating Expenses:
Salaries and
employee
benefits 474 407 1,446 1,294
Information
systems and
communications 127 140 396 410
Transaction
processing
services 95 80 294 231
Occupancy 88 84 262 231
Merger and
integration
costs 16 26 50 81
Restructuring
costs - 3 - 295
Other 106 81 319 252
---------- ------------ ---------- ------------
Total operating
expenses 906 821 2,767 2,794
---------- ------------ ---------- ------------
Income before
income taxes 268 305 913 434
Income taxes 91 103 299 159
---------- ------------ ---------- ------------
Net Income $ 177 $ 202 $ 614 $ 275
========== ============ ========== ============
Earnings Per
Share:
Basic $ .52 $ .61 $ 1.83 $ .83
Diluted .52 .60 1.80 .82
Average Shares Outstanding
(in thousands):
Basic 335,626 332,246 335,065 331,056
Diluted 339,348 336,568 340,529 334,160
Return on equity 11.7 % 12.0 % 13.8 % 8.7 %
Cash dividends
declared per
share $ .16 $ .14 $ .47 $ .41
II. OTHER SELECTED FINANCIAL INFORMATION
As of September 30,
-----------------------
(Dollars in
millions, except
per share data
or where
otherwise
indicated) 2004 2003
----------------- -------- -----------
Assets under
custody
(in billions) $ 9,000 $ 8,752
Assets under
management
(in billions) 1,236 965
Total assets $ 100,527 $ 81,776
Long-term debt 2,436 2,151
Stockholders'
equity 6,151 5,244
Closing price
per share of
common stock $ 42.71 $ 45.00
STATE STREET CORPORATION
Addendum Selected Financial Information
II. SUPPLEMENTAL INCOME STATEMENT INFORMATION - RECONCILIATION OF
OPERATING RESULTS
Reconciliation of Financial Results
(Dollars in millions)
Quarter ended September 30,
------------------------------
Operating Reported
Results Other Results
--------- --------- --------
Fee Revenue:
Servicing fees $ 568 $ 568
Management fees 156 156
Global securities lending 48 48
Foreign exchange trading 75 75
Brokerage fees 31 31
Processing fees and other 83 83
--------- --------
Total fee revenue 961 961
Net Interest Revenue:
Net Interest Revenue 223 $ (10)(1) 213
Provision for loan losses - - -
--------- --------- --------
Net interest revenue after
provision for loan losses 223 (10) 213
Gains on the sales of available-
for-sale investment securities,
net - - -
--------- --------- --------
Total Revenue 1,184 (10) 1,174
Operating Expenses:
Salaries and employee benefits 474 - 474
Information systems and
communications 127 - 127
Transaction processing services 95 - 95
Occupancy 88 - 88
Merger and integration costs - 16 (2) 16
Other 106 - 106
--------- --------- --------
Total operating expenses 890 16 906
--------- --------- --------
Income before income taxes 294 (26) 268
Income taxes 96 (5)(3) 91
Taxable-equivalent adjustment 10 (10)(1) -
--------- --------- --------
Net Income $ 188 $ (11) $ 177
========= ========= ========
Diluted Earnings Per Share $ .55 $ (.03) $ .52
Average Diluted Shares (in
thousands) 339,348 339,348
Return on equity 12.3% 11.7%
Notes:
Reported results agree with the Corporation's Consolidated
Statement of Income.
(1) Taxable-equivalent adjustment is not included in reported results.
(2) Merger and integration costs associated with the acquisition of
the GSS business.
(3) Reflects the tax benefit associated with the merger and
integration costs.
STATE STREET CORPORATION
Addendum Selected Financial Information
II. SUPPLEMENTAL INCOME STATEMENT INFORMATION - RECONCILIATION OF
OPERATING RESULTS
Reconciliation of Financial Results
(Dollars in millions)
Nine months ended September 30,
-------------------------------
Operating Reported
Results Other Results
--------- --------- --------
Fee Revenue:
Servicing fees $ 1,693 $ 1,693
Management fees 456 456
Global securities lending 201 201
Foreign exchange trading 309 309
Brokerage fees 112 112
Processing fees and other 248 248
--------- --------
Total fee revenue 3,019 3,019
Net Interest Revenue:
Net Interest Revenue 675 $ (33)(1) 642
Provision for loan losses - - -
--------- --------- --------
Net interest revenue after
provision for loan losses 675 (33) 642
Gains on the sales of available-for-
sale investment securities, net 19 - 19
--------- --------- --------
Total Revenue 3,713 (33) 3,680
Operating Expenses:
Salaries and employee benefits 1,446 - 1,446
Information systems and
communications 396 - 396
Transaction processing services 294 - 294
Occupancy 262 - 262
Merger and integration costs - 50 (2) 50
Other 319 - 319
--------- --------- --------
Total operating expenses 2,717 50 2,767
--------- --------- --------
Income before income taxes 996 (83) 913
Income taxes 316 (17)(3) 299
Taxable-equivalent adjustment 33 (33)(1) -
--------- --------- --------
Net Income $ 647 $ (33) $ 614
========= ========= ========
Diluted Earnings Per Share $ 1.90 $ (.10) $ 1.80
Average Diluted Shares (in
thousands) 340,529 340,529
Return on equity 14.5% 13.8%
Notes:
Reported results agree with the Corporation's
Consolidated Statement of Income.
(1) Taxable-equivalent adjustment is not included in reported results.
(2) Merger and integration costs associated with the acquisition of
the GSS business.
(3) Reflects the tax benefit associated with the merger and
integration costs.
STATE STREET CORPORATION
Addendum Selected Financial Information
III. SUPPLEMENTAL INCOME STATEMENT INFORMATION -
RECONCILIATION OF REPORTED RESULTS TO NON-GAAP MEASURES
Income Income
Total Before Tax Earnings
Total Operating Income Expense Net Per
Revenue Expenses Taxes (Benefit) Income Share
------- --------- ------ --------- ------ --------
Three months ended
September 30, 2004
Reported results -
GAAP $1,174 $906 $268 $91 $177 $.52
Non-operating
business activities:
Merger and
integration costs - (16) 16 5 11 .03
------- --------- ------ --------- ------ --------
Total non-operating
business activities - (16) 16 5 11 .03
Taxable-equivalent
adjustment 10 - 10 10 - -
------- --------- ------ --------- ------ --------
Operating results $1,184 $890 $294 $106 $188 $.55
======= ========= ====== ========= ====== ========
Three months ended
September 30, 2003
Reported results -
GAAP $1,126 $821 $305 $103 $202 $.60
Results of the
divested Private
Asset Management
business (19) (11) (8) (2) (6) (.01)
Non-operating
business activities:
Restructuring costs - (3) 3 - 3 .01
Merger and
integration costs - (26) 26 - 26 .05
------- --------- ------ --------- ------ --------
Total non-operating
business activities - (29) 29 - 29 .06
Taxable-equivalent
adjustment 13 - 13 13 - -
------- --------- ------ --------- ------ --------
Operating results $1,120 $781 $339 $114 $225 $.65
======= ========= ====== ========= ====== ========
STATE STREET CORPORATION
Addendum Selected Financial Information
IV. SUPPLEMENTAL INCOME STATEMENT INFORMATION -
OPERATING RESULTS YEAR OVER YEAR COMPARISON
Operating results are a non-GAAP measure defined by State Street
as reported results presented on a taxable-equivalent basis,
adjusted for significant non-operating items and the related tax
effects; For 2004, operating results exclude merger and
integration costs, and for 2003, exclude the results of a divested
business, merger and integration costs, restructuring costs, and
for the nine months ended September 30, 2003, settlement of a
state tax matter and the loss on sale of certain real estate.
Operating Results Operating Results
Quarter ended Nine months ended
September 30, September 30,
------------------------- --------------------------
(Dollars in millions,
except per
share data) 2004 2003(1) % Change 2004 2003(2) % Change
------ -------- --------- ------- -------- ---------
Operating Fee Revenue:
Servicing fees $568 $505 12% $1,693 $1,425 19%
Management fees 156 122 28 456 341 34
Global securities
lending 48 61 (21) 201 192 5
Foreign exchange
trading 75 101 (26) 309 276 12
Brokerage fees 31 28 11 112 85 32
Processing fees
and other 83 92 (10) 248 237 5
------ -------- ------- --------
Total Operating
Fee Revenue 961 909 6 3,019 2,556 18
Operating Net Interest Revenue:
Net interest
revenue 223 216 675 639
Provision for
loan losses - - - -
------ -------- ------- --------
Operating net
interest revenue after
provision for
loan losses 223 216 3 675 639 6
(taxable- equivalent basis)
Gains on the sales of
available-for-sale
investment
securities, net - (5) (100) 19 29 (34)
------ -------- ------- --------
Total Operating
Revenue 1,184 1,120 6 3,713 3,224 15
Expenses -
Operating Results:
Salaries and
employee
benefits 474 402 18 1,446 1,276 13
Information
systems and
communications 127 140 (9) 396 409 (3)
Transaction
processing
services 95 79 20 294 230 28
Occupancy 88 83 6 262 227 15
Other 106 77 38 319 242 32
------ -------- ------- --------
Total Expenses -
Operating Results 890 781 14 2,717 2,384 14
------ -------- ------- --------
Operating Income
before income
taxes 294 339 (13) 996 840 19
Income taxes 96 107 316 272
Taxable-
equivalent
adjustment 10 13 33 39
------ -------- ------- --------
Net Operating
Income $188 $219 (14) $647 $529 22
====== ======== ======= ========
Diluted Operating
Earnings Per
Share $.55 $.65 (15) $1.90 $1.58 20
Notes:
(1) Reflects restatement of previously issued operating-basis
supplemental financial information to exclude the results of the
divested Private Asset Management business, including $19 million
of revenue, $11 million of expenses and $.01 in diluted operating
earnings per share.
(2) Reflects restatement of previously issued operating-basis
supplemental financial information to exclude the results of the
divested Private Asset Management business, including $56 million
of revenue, $34 million of expenses and $.04 in diluted operating
earnings per share.
STATE STREET CORPORATION
Addendum Selected Financial Information
IV. SUPPLEMENTAL INCOME STATEMENT INFORMATION -
OPERATING RESULTS QUARTER OVER QUARTER COMPARISON
Operating results are a non-GAAP measure defined by State Street
as reported results presented on a taxable-equivalent basis, and
in 2004, excluding merger and integration costs and the related
tax effects of such costs.
Operating Results
Quarter ended
-----------------------------
(Dollars in millions, except per share Sept. 30, June 30,
data) 2004 2004 % Change
---------- -------- ---------
Operating Fee Revenue:
Servicing fees $568 $570 - %
Management fees 156 153 2
Global securities lending 48 89 (46)
Foreign exchange trading 75 116 (35)
Brokerage fees 31 36 (14)
Processing fees and other 83 81 2
---------- --------
Total Operating Fee Revenue 961 1,045 (8)
Operating Net Interest Revenue:
Net interest revenue 223 238
Provision for loan losses - -
---------- --------
Operating net interest revenue after
provision for loan losses 223 238 (6)
(taxable-equivalent basis)
Gains on the sales of available-for-
sale investment securities, net - 16 (100)
---------- --------
Total Operating Revenue 1,184 1,299 (9)
Expenses - Operating Results:
Salaries and employee benefits 474 510 (7)
Information systems and communications 127 130 (2)
Transaction processing services 95 103 (8)
Occupancy 88 84 5
Other 106 110 (4)
---------- --------
Total Expenses - Operating Results 890 937 (5)
---------- --------
Operating Income before income taxes 294 362 (19)
Income taxes 96 119
Taxable-equivalent adjustment 10 12
---------- --------
Net Operating Income $188 $231 (19)
========== ========
Diluted Operating Earnings Per Share $.55 $.68 (19)
STATE STREET CORPORATION
Addendum Selected Financial Information
V. CONSOLIDATED STATEMENT OF CONDITION
Sept. 30, Dec. 31, Sept. 30,
(Dollars in millions) 2004 2003 2003
------------- ------------ ------------
Assets
Cash and due from banks $ 6,058 $ 3,376 $ 1,691
Interest-bearing deposits with
banks 30,392 21,738 22,333
Securities purchased under
resale agreements 10,378 9,447 8,737
Federal funds sold 2,700 104 -
Trading account assets 673 405 1,059
Investment securities 36,818 38,215 32,364
Loans (less allowance of $36,
$61 and $61) 5,512 4,960 6,168
Premises and equipment 1,431 1,212 1,154
Accrued income receivable 1,085 1,015 1,010
Goodwill 1,462 1,326 1,301
Other intangible assets 466 525 508
Other assets 3,552 5,211 5,451
------------- ------------ ------------
Total Assets $100,527 $87,534 $81,776
============= ============ ============
Liabilities
Deposits:
Noninterest-bearing $ 9,793 $ 7,893 $10,690
Interest-bearing -- U.S. 6,093 5,062 3,746
Interest-bearing -- Non-U.S. 42,043 34,561 28,722
------------- ------------ ------------
Total Deposits 57,929 47,516 43,158
Securities sold under
repurchase agreements 20,702 22,806 21,895
Federal funds purchased 5,500 1,019 1,778
Other short-term borrowings 1,881 1,437 1,842
Accrued taxes and other
expenses 2,513 2,424 2,199
Other liabilities 3,415 4,363 3,509
Long-term debt 2,436 2,222 2,151
------------- ------------ ------------
Total Liabilities 94,376 81,787 76,532
Stockholders' Equity
Preferred stock, no par:
authorized 3,500,000; issued
none
Common stock, $1 par:
authorized 500,000,000;
issued 337,126,000,
337,132,000 and 337,135,000 337 337 337
Surplus 287 329 336
Retained earnings 5,463 5,007 4,610
Accumulated other comprehensive
income 86 192 126
Treasury stock at cost (576,000,
2,658,000 and 3,738,000 shares) (22) (118) (165)
- -------------------------------------------- ------------ ------------
Total Stockholders' Equity 6,151 5,747 5,244
------------- ------------ ------------
Total Liabilities and
Stockholders' Equity $100,527 $87,534 $81,776
============= ============ ============
CONTACT: State Street Corporation
Edward J. Resch, 617-664-1110
or
Investors:
Kelley MacDonald, 617-664-3477
or
Media:
Hannah Grove, 617-664-3377