Company Fact Sheet
 
ABOUT STATE STREET
 
State Street Corporation is the world's leading provider of financial services to institutional investors. Our broad and integrated range of services spans the entire investment spectrum, including research, investment management, trading services and investment servicing.
 
Investment Research and Trading
State Street provides specialized investment research and trading in foreign exchange, equities, fixed income, derivatives and money market products. Our goal is to enhance and preserve portfolio values for asset managers and asset owners with original, flow-based research, innovative portfolio strategies, trade process optimization, and global connectivity across multiple asset classes and markets.
 
Investment Management
State Street Global Advisors, the world's leading manager of institutional assets, provides disciplined, systematic investment strategies for customers of every size and investment objective. Our passive and active – including enhanced – strategies capitalize on technological and intellectual innovation. We also offer integrated solutions and trading services to customers who wish to outsource aspects of their investment management programs.
 
Investment Servicing
As the world's leading investment service provider, State Street delivers an array of customized investment solutions to asset managers, pension funds, hedge funds, insurance companies, collective funds, mutual funds and nonprofit organizations. We offer fund accounting, fund administration, custody, securities lending, investment manager operations outsourcing, recordkeeping, performance and analytics, and transfer agency services that are highly scalable and truly global. With our expertise and local market knowledge, we help our customers control costs, develop and launch competitive new investment products, and expand globally.
 
SELECTED FINANCIAL INFORMATION
(Dollars in millions, except per
share data)		  

2007(2)(3)

 2006(4) % Change  
 
 
For the years ended December 31,
Fee revenue:
Servicing fees $ 3,388 $ 2,723   24  
Management fees   1,141   943   21  
Trading services   1,152   862   34  
Securities finance   681   386   76  
Processing fees and other   237   272   (13)  
               
 
Total fee revenue   6,599   5,186   27  
Net interest revenue after provision for loan losses, operating-basis  (1)   1,788   1,155   55  
Gains on sales of available-for-sale investment securities, net   7   15    
 
 
Total revenue, operating basis   8,394   6,356   32  
Total expenses, operating-basis   5,768   4,540   27  
 
 
Income from continuing operations before income tax expense, operating-basis   2,626   1,816   45  
Income tax expense   899   610      
Taxable equivalent adjustment(1)   58   45      
 
 
Income from continuing operations, operating basis $ 1,669 $ 1,161   44  
 
 
Earnings per share, operating-basis (5):
Basic $ 4.63 $ 3.51   32  
Diluted   4.57   3.46 32  
 
Cash dividends declared per share   .88   .80      
Return on equity, operating-basis   17.7 % 17.1 %    
 
As of December 31,
Investment securities $ 74,559 $ 64,992    
Total assets   142,543   107,353    
Deposits   95,789   65,646    
Long-term debt   3,636   2,616    
Shareholders' equity   11,299   7,252    
               
Closing price per share of common stock $  81.20 $  67.44      
 
(1) Operating-basis results for each of the years presented include a fully taxable-equivalent adjustment. Fully taxable-equivalent revenue is a method of presentation in which the tax savings achieved by investing in tax-exempt securities are included in interest income with a corresponding charge to income tax expense. This method facilitates comparison of the performance of tax-exempt and taxable securities. The adjustment is computed using a federal income tax rate of 35%, adjusted for applicable state income taxes, net of the related federal tax benefit.

(2) Operating-basis results for 2007 exclude merger and integration costs of $198 million, or $129 million after-tax, recorded in connection with the acquisition of Investor’s Financial, and a net charge of $467 million, or $279 million after-tax, associated with certain active fixed-income strategies at State Street Global Advisors.

(3) Financial information for 2007 includes results of Investors Financial, acquired on July 2, 2007, for the third and fourth quarters of 2007.

(4) Operating-basis results for 2006 exclude $65 million of tax adjustments primarily related to The Tax Increase Prevention and Reconciliation Act, or “TIPRA”, and certain leveraged lease transactions.

(5) Operating-basis earnings per share for 2007 reflect the issuance of 60.8 million shares on July 2, 2007 in connection with the acquisition of Investors Financial.

 
 
INDUSTRY LEADERSHIP
 

No. 1 provider of U.S. mutual fund custody and accounting services

No. 1 servicer of U.S. pension plans

No. 1 investment manager of institutional assets worldwide
No. 1 investment manager of U.S. institutional tax-exempt assets

No. 3 assets under management worldwide
Leading custodian worldwide

Leading offshore fund service provider worldwide

Leading provider of securities finance services worldwide
 
 
FINANCIAL PERFORMANCE
 

30 consecutive years of operating-basis EPS growth

Operating-basis earnings per share growth of 14.5% compounded annually over the 10 years 1997-2007

Assets under custody of $14 trillion as of September 30, 2008

Assets under management of
$1.7 trillion as of September 30, 2008
 
 
COMPANY HIGHLIGHTS
 
Corporate headquarters:
State Street Financial Center
One Lincoln Street
Boston, Massachusetts 02111

Main telephone: +1 617 786 3000
 

Founded in 1792

Operations in 26 countries

Global network spanning more than 100 markets

28,700 employees worldwide as of September 30, 2008

NYSE ticker symbol: STT