Exhibit 99.2 | |
STATE STREET CORPORATION | |
EARNINGS RELEASE ADDENDUM | |
March 31, 2021 | |
Table of Contents | |
GAAP-Basis Financial Information: | |
4-Year Summary of Results | 2 |
Consolidated Financial Highlights | 3 |
Consolidated Results of Operations | 4 |
Consolidated Statement of Condition | 6 |
Average Statement of Condition - Rates Earned and Paid - Fully Taxable-Equivalent Basis | 7 |
Investment Portfolio Holdings by Asset Class | 8 |
Investment Portfolio Non-U.S. Investments | 10 |
Assets Under Custody and/or Administration | 11 |
Assets Under Management | 12 |
Industry Flow Data by Asset Class | 13 |
Line of Business Information | 14 |
Allowance for Credit Losses | 15 |
Non-GAAP Financial Information: | |
Reconciliations of Non-GAAP Financial Information | 16 |
Reconciliation of Pre-tax Margin Excluding Notable Items | 18 |
Reconciliation of Notable Items | 19 |
Reconciliations of Constant Currency FX Impacts | 20 |
Capital: | |
Reconciliation of Tangible Common Equity Ratio | 21 |
Regulatory Capital | 22 |
Reconciliations of Supplementary Leverage Ratios | 23 |
This financial information should be read in conjunction with State Street's news release dated April 16, 2021.
STATE STREET CORPORATION EARNINGS RELEASE ADDENDUM 4-YEAR SUMMARY OF RESULTS
(Dollars in millions, except per share amounts, or where otherwise noted) | 2017 | 2018 | 2019 | 2020 | ||||||||
Year ended December 31: | ||||||||||||
Total fee revenue | $ | 9,001 | $ | 9,454 | $ | 9,147 | $ | 9,499 | ||||
Net interest income | 2,304 | 2,671 | 2,566 | 2,200 | ||||||||
Other income | (39) | 6 | 43 | 4 | ||||||||
Total revenue | 11,266 | 12,131 | 11,756 | 11,703 | ||||||||
Provision for credit losses | 2 | 15 | 10 | 88 | ||||||||
Total expenses | 8,269 | 9,015 | 9,034 | 8,716 | ||||||||
Income before income tax expense | 2,995 | 3,101 | 2,712 | 2,899 | ||||||||
Income tax expense | 839 | 508 | 470 | 479 | ||||||||
Net income | 2,156 | 2,593 | 2,242 | 2,420 | ||||||||
Net income available to common shareholders | $ | 1,972 | $ | 2,404 | $ | 2,009 | $ | 2,257 | ||||
Per common share: | ||||||||||||
Diluted earnings per common share | $ | 5.19 | $ | 6.39 | $ | 5.38 | $ | 6.32 | ||||
Average diluted common shares outstanding (in thousands) | 380,213 | 376,476 | 373,666 | 357,106 | ||||||||
Cash dividends declared per common share | $ | 1.60 | $ | 1.78 | $ | 1.98 | $ | 2.08 | ||||
Closing price per share of common stock (at year end) | 97.61 | 63.07 | 79.10 | 72.78 | ||||||||
Average balance sheet: | ||||||||||||
Investment securities | $ | 95,779 | $ | 88,070 | $ | 91,768 | $ | 109,175 | ||||
Total assets | 219,450 | 223,385 | 223,334 | 269,334 | ||||||||
Total deposits | 163,808 | 161,408 | 158,262 | 193,225 | ||||||||
Ratios and other metrics: | ||||||||||||
Return on average common equity | 10.5 % | 12.1 % | 9.4 % | 10.0 % | ||||||||
Pre-tax margin | 26.6 | 25.6 | 23.1 | 24.8 | ||||||||
Pre-tax margin, excluding notable items(1) | 28.7 | 28.8 | 25.8 | 26.3 | ||||||||
Net interest margin, fully taxable-equivalent basis | 1.29 | 1.47 | 1.42 | 0.97 | ||||||||
Common equity tier 1 ratio(2)(3)(4) | 11.9 | 11.7 | 11.7 | 12.3 | ||||||||
Tier 1 capital ratio(2)(3)(4) | 15.0 | 15.5 | 14.5 | 14.4 | ||||||||
Total capital ratio(2)(3)(4) | 16.0 | 16.3 | 15.6 | 15.3 | ||||||||
Tier 1 leverage ratio(2)(3) | 7.3 | 7.2 | 6.9 | 6.4 | ||||||||
Supplementary leverage ratio(2)(3) | 6.5 | 6.3 | 6.1 | 8.1 | ||||||||
Assets under custody and/or administration (in trillions) | $ | 33.12 | $ | 31.62 | $ | 34.36 | $ | 38.79 | ||||
Assets under management (in trillions) | 2.78 | 2.51 | 3.12 | 3.47 | ||||||||
- Notable items include acquisition and restructuring costs, repositioning charges, and other notable items. Refer to Reconciliations of pre-tax margin excluding notable items for details.
- The capital ratios presented are calculated in conformity with the applicable regulatory guidance in effect as of each period end. Effective January 1, 2018, the applicable final rules are in effect and the ratios are calculated based on fully phased-in CET1, tier 1, total capital and supplementary leverage numbers. We did not revise previously-filed reported capital metrics and ratios.
- Under the applicable bank regulatory rules, we are not required to and, accordingly, did not revise previously-filed reported capital metrics and ratios following the change in accounting for LIHTC.
- The reportable ratios represent the lower of each of the risk-based capital ratios under both the Standardized Approach and the Advanced Approaches.
2
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED FINANCIAL HIGHLIGHTS
Quarters | % Change | |||||||||||||||||||||
1Q21 | 1Q21 | |||||||||||||||||||||
(Dollars in millions, except per share amounts, or where otherwise noted) | 1Q20 | 2Q20 | 3Q20 | 4Q20 | 1Q21 | vs. | vs. | |||||||||||||||
1Q20 | 4Q20 | |||||||||||||||||||||
Income statement | ||||||||||||||||||||||
Fee revenue | $ | 2,399 | $ | 2,378 | $ | 2,306 | $ | 2,416 | $ | 2,483 | 3.5 % | 2.8 % | ||||||||||
Net interest income | 664 | 559 | 478 | 499 | 467 | (29.7) | (6.4) | |||||||||||||||
Other income | 2 | - | - | 2 | - | nm | nm | |||||||||||||||
Total revenue | 3,065 | 2,937 | 2,784 | 2,917 | 2,950 | (3.8) | 1.1 | |||||||||||||||
Provision for credit losses(1) | 36 | 52 | - | - | (9) | nm | nm | |||||||||||||||
Total expenses | 2,255 | 2,082 | 2,103 | 2,276 | 2,332 | 3.4 | 2.5 | |||||||||||||||
Income before income tax expense | 774 | 803 | 681 | 641 | 627 | (19.0) | (2.2) | |||||||||||||||
Income tax expense | 140 | 109 | 126 | 104 | 108 | (22.9) | 3.8 | |||||||||||||||
Net income | 634 | 694 | 555 | 537 | 519 | (18.1) | (3.4) | |||||||||||||||
Net income available to common shareholders | $ | 580 | $ | 662 | $ | 517 | $ | 498 | $ | 489 | (15.7) | (1.8) | ||||||||||
Per common share: | ||||||||||||||||||||||
Diluted earnings per common share | $ | 1.62 | $ | 1.86 | $ | 1.45 | $ | 1.39 | $ | 1.37 | (15.4) | (1.4) | ||||||||||
Average diluted common shares outstanding (in thousands) | 357,993 | 356,413 | 357,168 | 357,719 | 355,690 | (0.6) | (0.6) | |||||||||||||||
Cash dividends declared per common share | $ | .52 | $ | .52 | $ | .52 | $ | .52 | $ | .52 | - | - | ||||||||||
Closing price per share of common stock (as of quarter end) | 53.27 | 63.55 | 59.33 | 72.78 | 84.01 | 57.7 | 15.4 | |||||||||||||||
Average for the quarter: | ||||||||||||||||||||||
Investment securities | $ | 97,560 | $ | 116,626 | $ | 110,448 | $ | 112,018 | $ | 107,809 | 10.5 | (3.8) | ||||||||||
Total assets | 251,181 | 284,688 | 264,384 | 277,055 | 296,328 | 18.0 | 7.0 | |||||||||||||||
Total deposits | 180,160 | 197,069 | 189,226 | 206,343 | 226,232 | 25.6 | 9.6 | |||||||||||||||
Securities on loan: | ||||||||||||||||||||||
Average securities on loan | $ | 378,200 | $ | 377,344 | $ | 375,296 | $ | 404,022 | $ | 429,991 | 13.7 | 6.4 | ||||||||||
End-of-period securities on loan | 387,580 | 381,232 | 395,075 | 457,985 | 451,913 | 16.6 | (1.3) | |||||||||||||||
Ratios and other metrics: | ||||||||||||||||||||||
Return on average common equity | 10.9 % | 12.1 % | 8.9 % | 8.4 % | 8.4 % | (250) | bps | - | bps | |||||||||||||
Pre-tax margin | 25.3 | 27.3 | 24.5 | 22.0 | 21.3 | (400) | (70) | |||||||||||||||
Pre-tax margin, excluding notable items(2) | 25.6 | 27.7 | 24.7 | 26.9 | 22.6 | (300) | (430) | |||||||||||||||
Net interest margin, fully taxable-equivalent basis | 1.30 | 0.93 | 0.85 | 0.84 | 0.75 | (55) | (9) | |||||||||||||||
Common equity tier 1 ratio(3)(4) | 10.7 | 12.3 | 12.4 | 12.3 | 10.8 | 10 | (150) | |||||||||||||||
Tier 1 capital ratio(3)(4) | 12.9 | 14.6 | 14.7 | 14.4 | 12.4 | (50) | (200) | |||||||||||||||
Total capital ratio(3)(4) | 14.1 | 15.7 | 15.7 | 15.3 | 14.0 | (10) | (130) | |||||||||||||||
Tier 1 leverage ratio(3) | 6.1 | 6.1 | 6.6 | 6.4 | 5.4 | (70) | (100) | |||||||||||||||
Supplementary leverage ratio(3) | 5.4 | 8.3 | 8.2 | 8.1 | 7.2 | 180 | (90) | |||||||||||||||
Assets under custody and/or administration (in billions) | $ | 31,864 | $ | 33,515 | $ | 36,643 | $ | 38,791 | $ | 40,263 | 26.4 % | 3.8 % | ||||||||||
Assets under management (in billions) | 2,689 | 3,054 | 3,148 | 3,467 | 3,591 | 33.5 | 3.6 | |||||||||||||||
- In accordance with ASU 2016-13, the provision for credit losses for 1Q20, 2Q20,3Q20 and 4Q20 includes the provision on funded and unfunded commitments as well as HTM securities.
- Notable items include acquisition and restructuring costs, repositioning charges, and other notable items. Refer to Reconciliations of pre-tax margin excluding notable items for details.
- The capital ratios presented are calculated in conformity with the applicable regulatory guidance in effect as of each period end. Effective January 1, 2018, the applicable final rules are in effect and the ratios are calculated based on fully phased-in CET1, tier 1, total capital and supplementary leverage numbers. We did not revise previously-filed reported capital metrics and ratios.
- The reportable ratios represent the lower of each of the risk-based capital ratios under both the Standardized Approach and the Advanced Approaches. Refer to Regulatory Capital for details on Standardized and Advanced Approaches ratios.
nm Denotes not meaningful
3
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED RESULTS OF OPERATIONS
Quarters | % Change | |||||||||||||||||||||
(Dollars in millions, except per share amounts, or | 1Q21 | 1Q21 | ||||||||||||||||||||
1Q20 | 2Q20 | 3Q20 | 4Q20 | 1Q21 | vs. | vs. | ||||||||||||||||
where otherwise noted) | 1Q20 | 4Q20 | ||||||||||||||||||||
Fee revenue: | ||||||||||||||||||||||
Servicing fees | $ | 1,287 | $ | 1,272 | $ | 1,301 | $ | 1,307 | $ | 1,371 | 6.5 % | 4.9 % | ||||||||||
Management fees(1) | 464 | 444 | 479 | 493 | 493 | 6.3 | - | |||||||||||||||
Foreign exchange trading services(1) | 444 | 325 | 270 | 324 | 346 | (22.1) | 6.8 | |||||||||||||||
Securities finance | 92 | 92 | 84 | 88 | 99 | 7.6 | 12.5 | |||||||||||||||
Software and processing fees | 112 | 245 | 172 | 204 | 174 | 55.4 | (14.7) | |||||||||||||||
Total fee revenue | 2,399 | 2,378 | 2,306 | 2,416 | 2,483 | 3.5 | 2.8 | |||||||||||||||
Net interest income: | ||||||||||||||||||||||
Interest income | 868 | 674 | 520 | 513 | 471 | (45.7) | (8.2) | |||||||||||||||
Interest expense | 204 | 115 | 42 | 14 | 4 | (98.0) | (71.4) | |||||||||||||||
Net interest income | 664 | 559 | 478 | 499 | 467 | (29.7) | (6.4) | |||||||||||||||
Other income: | ||||||||||||||||||||||
Gains (losses) related to investment securities, net | 2 | - | - | 2 | - | nm | nm | |||||||||||||||
Other income | - | - | - | - | - | - | - | |||||||||||||||
Total other income | 2 | - | - | 2 | - | nm | nm | |||||||||||||||
Total revenue | 3,065 | 2,937 | 2,784 | 2,917 | 2,950 | (3.8) | 1.1 | |||||||||||||||
Provision for credit losses | 36 | 52 | - | - | (9) | nm | nm | |||||||||||||||
Expenses: | ||||||||||||||||||||||
Compensation and employee benefits | 1,208 | 1,051 | 1,062 | 1,129 | 1,242 | 2.8 | 10.0 | |||||||||||||||
Information systems and communications | 385 | 376 | 395 | 394 | 421 | 9.4 | 6.9 | |||||||||||||||
Transaction processing services | 254 | 233 | 234 | 257 | 270 | 6.3 | 5.1 | |||||||||||||||
Occupancy | 109 | 109 | 109 | 162 | 109 | - | (32.7) | |||||||||||||||
Acquisition and restructuring costs | 11 | 12 | 15 | 12 | 10 | (9.1) | (16.7) | |||||||||||||||
Amortization of other intangible assets | 58 | 58 | 59 | 59 | 58 | - | (1.7) | |||||||||||||||
Other | 230 | 243 | 229 | 263 | 222 | (3.5) | (15.6) | |||||||||||||||
Total expenses | 2,255 | 2,082 | 2,103 | 2,276 | 2,332 | 3.4 | 2.5 | |||||||||||||||
Income before income tax expense | 774 | 803 | 681 | 641 | 627 | (19.0) | (2.2) | |||||||||||||||
Income tax expense | 140 | 109 | 126 | 104 | 108 | (22.9) | 3.8 | |||||||||||||||
Net income | $ | 634 | $ | 694 | $ | 555 | $ | 537 | $ | 519 | (18.1) | (3.4) | ||||||||||
4
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED RESULTS OF OPERATIONS (Continued)
Quarters | % Change | ||||||||||||||||||||
(Dollars in millions, except per share amounts, or | 1Q21 | 1Q21 | |||||||||||||||||||
1Q20 | 2Q20 | 3Q20 | 4Q20 | 1Q21 | vs. | vs. | |||||||||||||||
where otherwise noted) | 1Q20 | 4Q20 | |||||||||||||||||||
Adjustments to net income: | |||||||||||||||||||||
Dividends on preferred stock(2)(3) | $ | (53) | $ | (32) | $ | (38) | $ | (39) | $ | (30) | (43.4)% | (23.1)% | |||||||||
Earnings allocated to participating securities | (1) | - | - | - | - | - | - | ||||||||||||||
Net income available to common shareholders | $ | 580 | $ | 662 | $ | 517 | $ | 498 | $ | 489 | (15.7) | (1.8) | |||||||||
Per common share: | |||||||||||||||||||||
Basic earnings | $ | 1.64 | $ | 1.88 | $ | 1.47 | $ | 1.41 | $ | 1.39 | (15.2) | (1.4) | |||||||||
Diluted earnings | 1.62 | 1.86 | 1.45 | 1.39 | 1.37 | (15.4) | (1.4) | ||||||||||||||
Average common shares outstanding (in | |||||||||||||||||||||
thousands): | |||||||||||||||||||||
Basic | 353,746 | 352,157 | 352,586 | 352,974 | 350,743 | (0.8) | (0.6) | ||||||||||||||
Diluted | 357,993 | 356,413 | 357,168 | 357,719 | 355,690 | (0.6) | (0.6) | ||||||||||||||
Cash dividends declared per common share | $ | .52 | $ | .52 | $ | .52 | $ | .52 | $ | .52 | - | - | |||||||||
Closing price per share of common stock (as of | 53.27 | 63.55 | 59.33 | 72.78 | 84.01 | 57.7 | 15.4 | ||||||||||||||
quarter end) | |||||||||||||||||||||
Financial ratios: | |||||||||||||||||||||
Effective tax rate | 18.1 % | 13.6 % | 18.5 % | 16.1 % | 17.2 % | (90) | bps | 110 bps | |||||||||||||
Return on average common equity | 10.9 | 12.1 | 8.9 | 8.4 | 8.4 | (250) | - | ||||||||||||||
Return on tangible common equity(4) | 18.7 | 19.2 | 16.8 | 15.6 | 13.4 | (530) | (220) | ||||||||||||||
Pre-tax margin | 25.3 | 27.3 | 24.5 | 22.0 | 21.3 | (400) | (70) | ||||||||||||||
Pre-tax margin, excluding notable items(5) | 25.6 | 27.7 | 24.7 | 26.9 | 22.6 | (300) | (430) |
- Certain fees associated with our GLD ETFs have been reclassified from Foreign exchange trading services to Management fees to better reflect the nature of those fees. Prior periods have been reclassified to conform to current-period presentation. These fees were approximately $15 million, $19 million, $24 million and $23 million in the first, second, third and fourth quarters of 2020, respectively.
- We redeemed all outstanding Series C noncumulative perpetual preferred stock on March 15, 2020 at a redemption price of $500 million ($100,000 per share equivalent to $25.00 per depositary share) plus accrued and unpaid dividends. The difference between the redemption value and the net carrying value of approximately $9 million resulted in an EPS impact of approximately ($.03) per share in the first quarter of 2020.
- We redeemed an aggregate of $500 million, or 5,000 of the 7,500 outstanding shares of our non-cumulative perpetual preferred stock, Series F, for cash at a redemption price of $100,000 per share (equivalent to $1,000 per depositary share) plus all declared and unpaid dividends on March 15, 2021. The difference between the redemption value and the net carrying value of approximately $5 million resulted in an EPS impact of approximately ($.02) per share in the first quarter of 2021.
- Return on tangible common equity is calculated by dividing year-to-date annualized net income available to common shareholders (GAAP-basis) by average tangible common equity.
- Notable items include acquisition and restructuring costs and other notable items. Refer to Reconciliations of non-GAAP Financial Information pages for details.
nm Denotes not meaningful
5
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
State Street Corporation published this content on 16 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 April 2021 12:05:04 UTC.