Exhibit 99.1
State Street Achieves 10% Increase in Revenue and 14% Increase in
Earnings Per Share from Continuing Operations in 2005
Business Editors
BOSTON--(BUSINESS WIRE)--Jan. 18, 2006--State Street Corporation
today announced 2005 fourth-quarter earnings per share from continuing
operations of $0.74, or net income of $249 million and revenue of $1.4
billion. Earnings per share and net income both increased 35% versus
the 2004 fourth quarter's results of $0.55 per share or net income of
$184 million. Revenue is $1.3 billion in the fourth quarter of 2004.
The 2004 fourth-quarter results include $12 million, or $0.02 per
share, for merger and integration charges associated with the
acquisition of a substantial portion of the Deutsche Bank Global
Securities Servicing (GSS) business. For the fourth quarter of 2005,
return on stockholders' equity from continuing operations is 15.9%,
and compares to 11.9% in the fourth quarter of 2004.
For the full year, net income from continuing operations in 2005
amounts to $2.82 per share or net income from continuing operations of
$945 million, compared to $2.35 per share, or $798 million in 2004.
The results for 2004 include $62 million, or $.12 per share, for
merger and integration charges associated with the GSS acquisition.
Earnings per share from continuing operations of $2.82 in 2005 are up
14% from operating earnings per share of $2.47 in 2004. Return on
equity from continuing operations in 2005 is 15.3% and compares with
return on equity on a reported basis of 13.3% in 2004. On an operating
basis, return on equity was 14.0% in 2004.
Revenue, including taxable-equivalent net interest revenue, is up
10%, from $5.0 billion in 2004 to a record level of $5.5 billion in
2005. Operating expenses in 2005 are $4.0 billion, an increase of 8%
from $3.8 billion for 2004 on a reported basis and up 9% from $3.7
billion on an operating basis.
Commenting on the performance, Ronald E. Logue, State Street's
chairman and chief executive officer, said, "I'm pleased that we
achieved the financial goals we set last year. In 2005 State Street
again demonstrated its ability to grow its operating revenue--up 10%
from 2004. Earnings per share from continuing operations are up 14%
from operating earnings in 2004, exceeding our outlook. We also
improved our return on equity from continuing operations to 15.3%. I
am also pleased we met our objective to achieve positive operating
leverage on an annual basis. State Street Global Advisors, our
investment management arm, exhibited continued growth and is becoming
a more meaningful contributor to State Street's results. Additionally,
the Corporation's non-US revenue increased 17% and now represents 39%
of total revenue, moving toward our goal of 50% over several years."
Logue added, "During 2006 we will build on the success of 2005
which included several large new customer wins. We are managing our
balance sheet more effectively within prudent risk parameters, but the
interest-rate environment will continue to be challenging. We continue
to target positive operating leverage, not necessarily every quarter,
but certainly on an annual basis."
Logue concluded, "We are setting 2006 financial goals of revenue
growth of 8% to 12% and earnings per share growth of 10% to 15%. We
expect return on equity to be between 14% and 17%. Our 2006 target is
to achieve approximately the middle of those ranges."
State Street purchased approximately 4.9 million shares of its
common stock during the fourth quarter at an average price of $57.09
per share. The Corporation's remaining authorization to purchase
shares is approximately 4.8 million shares.
FOURTH-QUARTER OPERATING RESULTS VS. YEAR-AGO QUARTER
Total revenue of $1.4 billion in the fourth quarter of 2005 is up
from $1.3 billion or 11% from the fourth quarter of 2004.
Servicing fees are $637 million, up $67 million or 12%, from $570
million in the year-ago quarter. The increase is attributable to new
business from existing and new clients and higher equity valuations in
2005. Total assets under custody are $10.1 trillion, a record level,
up 7%, compared with $9.5 trillion in the year-ago quarter.
Management fees, generated by State Street Global Advisors, are
$213 million, up $46 million, or 28%, compared to $167 million in the
year-ago quarter. The increase in management fees reflects new
business from existing and new clients and higher equity valuations in
2005. Total assets under management are at a record level, $1.44
trillion, up 6%, compared to $1.35 trillion in the previous year.
Average month-end values compared to the fourth quarter of 2004,
are up 5% for both the S&P 500 Index and the NASDAQ; average month-end
values for the MSCI(R) EAFE Index(SM) are up 12%. The total return of
the Lehman US Aggregate bond index for the fourth quarter is 0.59%.
Trading services revenue, which includes foreign exchange trading
revenue and brokerage services, is up 13%, from $161 million to $182
million. The increase is driven by higher volumes in foreign exchange,
offset partially by lower volatility.
Securities finance revenue is $73 million in the quarter, compared
to $58 million in the year-ago quarter, an increase of 26%. The
increase reflects improved spreads as well as continuing strong demand
for securities on loan.
Taxable-equivalent net interest revenue is $253 million, up 10%
from $229 million in last year's fourth quarter. The increase is due
to continued balance sheet repositioning and a higher level of
customer deposits.
Total expenses of $1,039 million in the fourth quarter of 2005,
are up 6% from expenses on an operating basis of $980 million in the
fourth quarter of 2004. Salaries and employee benefits expenses
increased $78 million from $511 million to $589 million, driven
principally by salaries attributed to the full-year effect of the
costs associated with the three large investment management operations
outsourcing contracts signed in the second half of 2004 and new
business. Higher incentive compensation due to improved performance
also contributed to the increase. Transaction processing expense
increased $14 million to $118 million due to sub-custody costs.
Occupancy expenses of $89 million in 2005 compare to $101 million in
2004, which included a $16 million loss on a sub-tenant agreement.
Other expenses increased $9 million to $121 million, driven primarily
by the cost of professional services to support compliance
requirements and growth initiatives.
The effective tax rate was 34% in the fourth quarters of 2005 and
2004.
FOURTH-QUARTER RESULTS VS. THIRD QUARTER
Fourth-quarter net income per share of $0.74 from continuing
operations is down 1%, or $0.01, compared to third quarter net income
per share from continuing operations of $0.75, which includes a gain
of $16 million, or $0.03 per share due to the receipt of the final
payment for the 2003 sale of State Street's Private Asset Management
(PAM) business. Excluding this item, earnings per share from
continuing operations are up 3%. Total revenue in the fourth quarter
of $1.42 billion is up $28 million, or $44 million excluding the PAM
gain, versus $1.39 billion in the third quarter. Total expenses in the
fourth quarter of $1.04 billion are up $31 million compared to $1.01
billion in the third quarter.
Results reflect strength in servicing and management fee revenue,
up 3% and 13% respectively. Trading services revenue is up 3% to $182
million due to strength in brokerage. Processing fees and other
revenue declined 8% to $71 million. Salaries and employee benefits
expense is up 4% due to higher salaries and increased incentive
compensation expense. Transaction processing expense increased 6% due
to sub-custody costs. Occupancy expense was down 7% due to lower
operating costs.
FULL YEAR 2005 VS. 2004
Taxable-equivalent revenue increased 10% from $5.0 billion to $5.5
billion. Servicing fees are up 9%, increasing from $2.3 billion to
$2.5 billion. Management fees increased 21%, from $623 million to $751
million. Trading services revenue increased 17%, from $595 million to
$694 million and securities finance revenue is up 27%, from $259
million to $330 million. Processing fees and other revenue decreased
2%, from $308 million to $302 million. Taxable-equivalent net interest
revenue is up 5%, from $904 million to $949 million.
Expenses increased 8%, from $3.8 billion to $4.0 billion,
including increases of 14% to $2.2 billion in salaries and employee
benefits expense. Transaction processing expense was up 13% to $449
million and occupancy expense increased 8% to $391 million. Other
expenses increased 12% to $484 million and expenses for information
systems and communications expense declined 8% to $486 million.
ADDITIONAL INFORMATION
All per share amounts represent diluted earnings per share.
INVESTOR CONFERENCE CALL
State Street will webcast an investor conference call today,
Wednesday, January 18, 2006, at 9:30 a.m. EST, available at
www.statestreet.com/stockholder. The conference call will also be
available via telephone, at +1 719/457-2617 (confirmation code
892835). Recorded replays of the conference call will be available on
the web site, and by telephone at +1 402/220-4230, 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
services. With $10.1 trillion in assets under custody and $1.4
trillion in assets under management at December 31, 2005, State Street
operates in 26 countries and more than 100 geographic markets
worldwide and employs 20,965 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 2004 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, January 18, 2006, and the
Corporation will not undertake efforts to revise those forward-looking
statements to reflect events after this date.
STATE STREET CORPORATION
Press Release Addendum
Financial Highlights
December 31, 2005
Quarters Ended % Change
------------------------------------------
(Dollars in millions, December September December Q4 Q4
except per share 31, 30, 31, vs. vs.
information or where 2005 2005 2004 Q3 Q4
otherwise indicated)
- ----------------------------------------------------------------------
Total Revenue $ 1,416 $ 1,388 $ 1,271 2 % 11 %
Total Expenses 1,039 1,008 992 3 5
Net Income from Continuing
Operations 249 250 184 - 35
Net Loss from Discontinued
Operations - (107) -
Net income 249 143 184
Diluted Earnings Per Share:
From Continuing Operations $ .74 $ .75 $ .55 (1) 35
From Discontinued Operations - (.32) -
Net Income .74 .43 .55
Closing Price Per Share of
Common Stock 55.44 48.92 49.12
Cash Dividends Declared Per
Share .19 .18 .17
Return on Equity from
Continuing Operations 15.9 % 15.9 % 11.9 %
Return on Equity 15.9 9.1 11.9
Assets Under Custody (AUC)
(in trillions) $ 10.12 $ 9.80 $ 9.50
Assets Under Management (AUM)
(in trillions) 1.44 1.41 1.35
Years Ended % Change
---------------------------
December December 2005
(Dollars in millions, except 31, 31, vs.
per share information) 2005 2004 2004
- -------------------------------------------------------
Total Revenue $ 5,473 $ 4,951 11 %
Total Expenses 4,041 3,759 8
Net Income from Continuing
Operations 945 798 18
Net Loss from Discontinued
Operations (107) -
Net Income 838 798
Diluted Earnings Per Share:
From Continuing Operations $ 2.82 $ 2.35 20
From Discontinued Operations (.32) -
Net Income 2.50 2.35
Cash Dividends Declared Per
Share .72 .64 13
Return on Equity from
Continuing Operations 15.3 % 13.3 %
Return on Equity 13.6 13.3
STATE STREET CORPORATION
Press Release Addendum
SELECTED FINANCIAL INFORMATION
Quarters Ended Years Ended
------------------------- -------------------------
(Dollars in
millions,
except per December December December December
share 31, 31, 31, 31,
information) 2005 2004(3) %Change 2005 2004(3) %Change
- ----------------------------------------------------------------------
Fee Revenue:
Servicing fees $ 637 $ 570 12 % $ 2,474 $ 2,263 9 %
Management fees 213 167 28 751 623 21
Trading
services 182 161 13 694 595 17
Securities
finance 73 58 26 330 259 27
Processing fees
and other 71 73 (3) 302 308 (2)
--------- --------- --------- ---------
Total fee
revenue 1,176 1,029 14 4,551 4,048 12
Net Interest
Revenue:
Interest
revenue 861 532 62 2,930 1,787 64
Interest
expense 619 315 97 2,023 928 118
--------- --------- --------- ---------
Net interest
revenue (1) 242 217 12 907 859 6
Provision for
loan losses - (18) - (18)
--------- --------- --------- ---------
Net interest
revenue after
provision for
loan losses 242 235 3 907 877 3
(Losses) gains
on sales of
available-for-
sale investment
securities, net (2) 7 (129) (1) 26 (104)
Gains on sale of
the Private
Asset
Management
business - - 16 -
- ------------------------ --------- --------- ---------
Total revenue 1,416 1,271 11 5,473 4,951 11
Operating
Expenses:
Salaries and
employee
benefits 589 511 15 2,231 1,957 14
Information
systems and
communications 122 131 (7) 486 527 (8)
Transaction
processing
services 118 104 13 449 398 13
Occupancy 89 101 (12) 391 363 8
Merger and
integration
costs (2) - 12 (100) - 62 (100)
Restructuring
costs - 21 (100) - 21 (100)
Other 121 112 8 484 431 12
--------- --------- --------- ---------
Total operating
expenses 1,039 992 5 4,041 3,759 8
--------- --------- --------- ---------
Income from
continuing
operations
before income
tax expense 377 279 35 1,432 1,192 20
Income tax
expense from
continuing
operations 128 95 487 394
--------- --------- --------- ---------
Net income from
continuing
operations 249 184 35 945 798 18
Loss from
discontinued
operations - - (165) -
Income tax
benefit from
discontinued
operations - - (58) -
--------- --------- --------- ---------
Net loss from
discontinued
operations - - (107) -
--------- --------- --------- ---------
Net income $ 249 $ 184 $ 838 $ 798
========= ========= ========= =========
Earnings Per
Share From
Continuing
Operations:
Basic $ .75 $ .55 36 $ 2.86 $ 2.38 20
Diluted .74 .55 35 2.82 2.35 20
Loss Per Share
From
Discontinued
Operations:
Basic - - (.33) -
Diluted - - (.32) -
Earnings Per
Share:
Basic .75 .55 2.53 2.38
Diluted .74 .55 2.50 2.35
OTHER SELECTED FINANCIAL INFORMATION
Average Shares
Outstanding
(in
thousands):
Basic 330,689 333,238 330,361 334,606
Diluted 337,061 336,964 334,636 339,605
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 $253
million and $229 million for the three months ended December 31,
2005 and 2004, respectively, and $949 million and $904 million for
the year ended December 31, 2005 and 2004, respectively.
(2) Earnings for the three months and year ended December 31, 2004
included $12 million and $62 million, respectively, of pre-tax
merger and integration costs ($.02 and $.12 per share,
respectively) relating to the integration of the Deutsche Bank
Global Securities Service Business (GSS).
(3) Certain prior period amounts have been reclassified to conform to
current period presentation.
STATE STREET CORPORATION
Press Release Addendum
SELECTED FINANCIAL INFORMATION
Quarters ended December 31, 2005 and
September 30, 2005
Quarters Ended
-----------------------------
December September
(Dollars in millions, except per share 31, 30,
information) 2005 2005 %Change
- -------------------------------------------------------------------
Fee Revenue:
Servicing fees $ 637 $ 620 3 %
Management fees 213 188 13
Trading services 182 176 3
Securities finance 73 74 (1)
Processing fees and other 71 77 (8)
--------- ---------
Total fee revenue 1,176 1,135 4
Net Interest Revenue:
Interest revenue 861 773 11
Interest expense 619 537 15
--------- ---------
Net interest revenue (1) 242 236 3
Provision for loan losses - -
--------- ---------
Net interest revenue after provision
for loan losses 242 236 3
(Losses) gains on sales of available-
for-sale investment securities, net (2) 1
Gain on sale of the Private Asset
Management business - 16
--------- ---------
Total revenue 1,416 1,388 2
Operating Expenses:
Salaries and employee benefits 589 566 4
Information systems and communications 122 117 4
Transaction processing services 118 111 6
Occupancy 89 96 (7)
Other 121 118 3
--------- ---------
Total operating expenses 1,039 1,008 3
--------- ---------
Income from continuing operations
before income tax expense 377 380 (1)
Income tax expense from continuing
operations 128 130
--------- ---------
Net income from continuing operations 249 250 -
Loss from discontinued operations - (165)
Income tax benefit from discontinued
operations - (58)
--------- ---------
Net loss from discontinued operations - (107)
--------- ---------
Net income $ 249 $ 143
========= =========
Earnings Per Share From Continuing
Operations:
Basic $ .75 $ .76 (1)
Diluted .74 .75 (1)
Loss Per Share From Discontinued
Operations:
Basic - (.33)
Diluted - (.32)
Earnings Per Share:
Basic .75 .43
Diluted .74 .43
OTHER SELECTED FINANCIAL INFORMATION
Average Shares Outstanding (in
thousands):
Basic 330,689 329,097
Diluted 337,061 334,103
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 $253
million and $245 million for the three months ended December 31
and September 30, 2005, respectively.
STATE STREET CORPORATION
Press Release Addendum
OPERATING-BASIS RESULTS
RECONCILIATION OF REPORTED RESULTS TO OPERATING RESULTS
Quarter and Year ended December 31, 2005
----------------------- ------------------------
(Dollars in millions, Quarter ended December Year ended December 31,
except per share 31, 2005 2005
information)
- ----------------------------------------------------------------------
Reported Operating Reported Operating
Results Other Results Results Other Results
----------------------- ------------------------
Fee Revenue:
Servicing fees $ 637 $ 637 $2,474 $ 2,474
Management fees 213 213 751 751
Trading services 182 182 694 694
Securities finance 73 73 330 330
Processing fees and
other 71 71 302 302
------- -------- ------- ---------
Total fee revenue 1,176 1,176 4,551 4,551
Net Interest Revenue:
Interest revenue 861 $11 (1) 872 2,930 $42 (1) 2,972
Interest expense 619 - 619 2,023 - 2,023
------- ---- -------- ------- ---- ---------
Net interest revenue
(1) 242 11 253 907 42 949
Provision for loan
losses - - - - - -
------- ---- -------- ------- ---- ---------
Net interest revenue
after provision for
loan losses 242 11 253 907 42 949
(Losses) gains on sales
of available-for-sale
investment securities,
net (2) - (2) (1) - (1)
Gain on sale of the Private
Asset Management
business - - - 16 - 16
- ----------------------------- ---- -------- ------- ---- ---------
Total revenue 1,416 11 1,427 5,473 42 5,515
Operating Expenses:
Salaries and employee
benefits 589 - 589 2,231 - 2,231
Information systems and
communications 122 - 122 486 - 486
Transaction
processing services 118 - 118 449 - 449
Occupancy 89 - 89 391 - 391
Other 121 - 121 484 - 484
------- ---- -------- ------- ---- ---------
Total operating
expenses 1,039 - 1,039 4,041 - 4,041
------- ---- -------- ------- ---- ---------
Income from continuing
operations before
income taxes 377 11 388 1,432 42 1,474
Income taxes from
continuing operations 128 - 128 487 - 487
Taxable-equivalent
adjustment - 11 (1) 11 - 42 (1) 42
------- -------------- ------- ---------------
Net income from
continuing
operations $ 249 $ - $ 249 $ 945 $ - $ 945
======= ==== ======== ======= ==== =========
Diluted earnings per
share from continuing
operations $ .74 $ - $ .74 $ 2.82 $ - $ 2.82
Return on equity from
continuing operations 15.9 % 15.9 % 15.3 % 15.3 %
Notes:
Reported results agree with the Corporation's Consolidated Statement
of Income.
(1) Taxable-equivalent adjustment is not included in reported results.
STATE STREET CORPORATION
Press Release Addendum
OPERATING-BASIS RESULTS
RECONCILIATION OF REPORTED RESULTS TO OPERATING RESULTS
Quarter and Year ended December 31, 2004
------------------------- --------------------------
(Dollars in Quarter ended December 31, Year ended December 31,
millions, except 2004 2004
per share
information)
- ----------------------------------------------------------------------
Reported Operating Reported Operating
Results Other Results Results Other Results
------------------------- --------------------------
Fee Revenue:
Servicing fees $ 570 $ 570 $ 2,263 $ 2,263
Management fees 167 167 623 623
Trading services 161 161 595 595
Securities finance 58 58 259 259
Processing fees
and other 73 73 308 308
-------- -------- -------- ---------
Total fee revenue 1,029 1,029 4,048 4,048
Net Interest
Revenue:
Interest revenue 532 $ 12 (1) 544 1,787 $ 45 (1) 1,832
Interest expense 315 - 315 928 - 928
-------- ----- -------- -------- ----- ---------
Net interest
revenue (1) 217 12 229 859 45 904
Provision for loan
losses (18) - (18) (18) - (18)
-------- ----- -------- -------- ----- ---------
Net interest
revenue after
provision for loan
losses 235 12 247 877 45 922
Gains on sales of
available-for-sale
investment
securities, net 7 - 7 26 - 26
- -------------------------- ----- -------- -------- ----- ---------
Total revenue 1,271 12 1,283 4,951 45 4,996
Operating
Expenses:
Salaries and
employee benefits 511 - 511 1,957 - 1,957
Information systems
and communications 131 - 131 527 - 527
Transaction
processing
services 104 - 104 398 - 398
Occupancy 101 - 101 363 - 363
Merger and
integration costs 12 (12) - 62 (62)(2) -
Restructuring
costs 21 - 21 21 - 21
Other 112 - 112 431 - 431
-------- ----- -------- -------- ----- ---------
Total operating
expenses 992 (12) 980 3,759 (62) 3,697
-------- ----- -------- -------- ----- ---------
Income from
continuing
operations before
income taxes 279 24 303 1,192 107 1,299
Income taxes from
continuing
operations 95 4 99 394 21 (3) 415
Taxable-equivalent
adjustment - 12 (1) 12 - 45 (1) 45
-------- --------------- -------- ----------------
Net income from
continuing
operations $ 184 $ 8 $ 192 $ 798 $ 41 $ 839
======== ===== ======== ======== ===== =========
Diluted earnings
per share from
continuing
operations $ .55 $.02 $ .57 $ 2.35 $.12 $ 2.47
Return on equity
from continuing
operations 11.9 % 12.4 % 13.3 % 14.0 %
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 merger and integration
costs.
STATE STREET CORPORATION
Press Release Addendum
OPERATING-BASIS RESULTS
Quarters and Years ended December
31, 2005 and 2004
Quarters Ended Years Ended
----------------------- ------------------------
(Dollars in
millions, except December December December December
per share 31, 31, 31, 31,
information) 2005 2004 % Change 2005 2004 % Change
- ----------------------------------- ------------------------ ---------
Fee Revenue:
Servicing fees $ 637 $ 570 12 % $2,474 $2,263 9 %
Management fees 213 167 28 751 623 21
Trading services 182 161 13 694 595 17
Securities finance 73 58 26 330 259 27
Processing fees and
other 71 73 (3) 302 308 (2)
------- ------- ------- -------
Total fee revenue 1,176 1,029 14 4,551 4,048 12
Net Interest
Revenue:
Interest revenue 872 544 60 2,972 1,832 62
Interest expense 619 315 97 2,023 928 118
------- ------- ------- -------
Net interest revenue
- taxable
equivalent 253 229 10 949 904 5
Provision for loan
losses - (18) - (18)
------- ------- ------- -------
Net interest revenue
after provision for
loan losses -
taxable equivalent 253 247 2 949 922 3
(Losses) gains on
sales of available-
for-sale investment
securities, net (2) 7 (129) (1) 26
Gain on sale of the
Private Asset
Management business - - 16 -
- --------------------------- ------- ------- -------
Total revenue 1,427 1,283 11 5,515 4,996 10
Operating Expenses:
Salaries and
employee benefits 589 511 15 2,231 1,957 14
Information systems
and communications 122 131 (7) 486 527 (8)
Transaction
processing services 118 104 13 449 398 13
Occupancy 89 101 (12) 391 363 8
Restructuring costs - 21 (100) - 21
Other 121 112 8 484 431 12
------- ------- ------- -------
Total operating
expenses 1,039 980 6 4,041 3,697 9
------- ------- ------- -------
Income from
continuing
operations before
income tax expense 388 303 28 1,474 1,299 13
Income tax expense
from continuing
operations 128 99 487 415
Taxable-equivalent
adjustment 11 12 42 45
------- ------- ------- -------
Net income from
continuing
operations $ 249 $ 192 30 $ 945 $ 839 13
======= ======= ======= =======
Diluted earnings per
share from
continuing
operations $ .74 $ .57 30 $ 2.82 $ 2.47 14
Return on
shareholders'
equity 15.9 % 12.4 % 15.3 % 14.0 %
STATE STREET CORPORATION
Press Release Addendum
CONSOLIDATED STATEMENT OF CONDITION
- ----------------------------------------------------------------------
(Dollars in millions, except share December 31, December 31,
information) 2005 2004
- ----------------------------------------------------------------------
Assets
Cash and due from banks $ 2,684 $ 2,035
Interest-bearing deposits with banks 11,275 20,634
Securities purchased under resale agreements 8,679 12,878
Federal funds sold - 5,450
Trading account assets 764 745
Investment securities available for sale 54,979 36,171
Investment securities held to maturity 4,891 1,400
Loans (less allowance of $18 and $18) 6,464 4,611
Premises and equipment 1,453 1,444
Accrued income receivable 1,364 1,204
Goodwill 1,337 1,497
Other intangible assets 459 494
Other assets 3,619 5,477
------------ ------------
Total assets $97,968 $94,040
============ ============
Liabilities
Deposits:
Noninterest-bearing $ 9,402 $13,671
Interest-bearing -- U.S. 2,379 2,843
Interest-bearing -- Non-U.S. 47,865 38,615
------------ ------------
Total deposits 59,646 55,129
Securities sold under repurchase agreements 20,895 21,881
Federal funds purchased 1,204 435
Other short-term borrowings 1,219 1,343
Accrued taxes and other expenses 2,628 2,603
Other liabilities 3,346 4,032
Long-term debt 2,655 2,458
------------ ------------
Total liabilities 91,593 87,881
Shareholders' Equity
Preferred stock, no par: authorized 3,500,000;
issued none
Common stock, $1 par: authorized 500,000,000
shares; issued 337,126,000 and 337,126,000
shares 337 337
Surplus 266 289
Retained earnings 6,189 5,590
Accumulated other comprehensive (loss) income (223) 92
Treasury stock (at cost 3,501,000 and 3,481,000
shares) (194) (149)
- --------------------------------------------------------- ------------
Total shareholders' equity 6,375 6,159
------------ ------------
Total liabilities and shareholders' equity $97,968 $94,040
============ ============
CONTACT: State Street Corporation
Edward J. Resch, +1 617-664-1110
or
Investors: Kelley MacDonald, +1 617-664-3477
or
Media: Hannah Grove, +1 617-664-3377