Document

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 19, 2018

______________________

State Street Corporation

(Exact name of registrant as specified in its charter)

______________________



Massachusetts	001-07511	04-2456637
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification Number)



One Lincoln Street Boston, Massachusetts		02111
(Address of principal executive office)		(Zip Code)

Registrant’s telephone number, including area code: (617) 786-3000

______________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02. Results of Operations and Financial Condition.

On October 19, 2018, State Street Corporation issued a news release announcing its results of operations for the third-quarter of 2018. Copies of that news release and accompanying third-quarter 2018 financial information addendum are furnished herewith as Exhibits 99.1 and 99.2, respectively, and are incorporated herein by reference.

Item 7.01. Regulation FD.

On October 19, 2018, State Street Corporation made available a slide presentation providing highlights of its third-quarter 2018 results of operations and related information as of September 30, 2018, which is being made available in connection with an October 19, 2018 investor conference call. A copy of that slide presentation is furnished herewith as Exhibit 99.3 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

State Street Corporation's news release dated October 19, 2018, announcing its third-quarter 2018 results of operations and accompanying third-quarter 2018 financial information addendum are furnished herewith as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference in Item 2.02 hereof; and a slide presentation providing highlights of State Street's third-quarter 2018 results of operations and related information as of September 30, 2018, which is being made available in connection with an October 19, 2018 investor conference call, is furnished herewith as Exhibit 99.3 and is incorporated by reference in Item 7.01 hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



			STATE STREET CORPORATION

		By:	/s/ IAN W. APPLEYARD
		Name:	Ian W. Appleyard,
		Title:	Executive Vice President, Global Controller and Chief Accounting Officer
Date:	October 19, 2018



Investor Contact: Ilene Fiszel Bieler	Media Contact: Marc Hazelton
+1 617/664-3477	+1 617/513-9439

STATE STREET REPORTS THIRD-QUARTER 2018 EPS OF $1.87, UP 13%,

AND ROE OF 14%, UP 1 PERCENTAGE POINT, COMPARED TO 3Q17

NET INTEREST INCOME UP 11% COMPARED TO 3Q17

PRE-TAX MARGIN INCREASED COMPARED TO 3Q17,

REFLECTING CONTINUED EXPENSE MANAGEMENT

COMPLETED ACQUISITION OF CHARLES RIVER DEVELOPMENT

TO ENABLE THE FIRST-EVER FRONT TO BACK PLATFORM^(a)

Boston, MA ...October 19, 2018

In announcing today’s financial results, Joseph L. Hooley, State Street’s Chairman and Chief Executive Officer, said, "Our third-quarter and year-to-date results reflect solid performance demonstrated by EPS growth of 13% and 24% compared to 3Q17 and the 2017 year-to-date period, respectively. Our new business remains strong as evidenced by $300 billion in new asset servicing commitments in the third quarter and $1.8 trillion year-to-date."

Hooley added, "We continue to digitize our business largely through the Beacon program to

drive efficiencies in core operations while investing in differentiating our data and analytic solutions. These cost savings initiatives will continue for some time, enabling us to calibrate our expenses to the revenue environment, while continuing to deliver strong new business results. The acquisition of Charles River Development, which we closed earlier this month, is an example of differentiating our services while

investing for the future."

^(a)Offered by a single provider

Client asset growth: Asset servicing AUCA as of quarter-end increased 6% from 3Q17 reflecting higher equity markets. Asset management AUM as of quarter-end increased 5% compared to 3Q17, primarily driven by strength in equity markets and ETF inflows, partially offset by cash and institutional outflows.

New business: Asset servicing mandates announced in 3Q18 totaled approximately $300 billion and year-to-date new mandates of $1.8 trillion. Servicing assets remaining to be installed in future periods totaled approximately $465 billion and our outlook for new business continues to be strong. In our asset management business, we experienced net inflows of $8 billion during 3Q18 driven by net institutional and ETF flows, partially offset by cash outflows.

Total revenue: 3Q18 revenue increased 4% compared to 3Q17.

Fee revenue: Increased 2%, or $38 million, relative to 3Q17, reflecting higher management fees and trading services revenue, partially offset by lower servicing fees as a result of a previously announced client transition and challenging industry conditions.

The impact of the new revenue recognition standard contributed $70 million, or approximately 3% points, to fee revenue growth.

Prior year fee revenue included a $26 million gain related to the sale of an equity trading platform.

Net interest income: Increased 11% relative to 3Q17, driven by higher market interest rates in the U.S. and disciplined liability pricing, partially offset by a mix shift to HQLA.

Expenses: Increased 3%, or $58 million, compared to 3Q17, reflecting investments to support new client business, partially offset by net Beacon savings and the absence of restructuring costs. We expect to actively manage expenses with additional efficiency initiatives, while continuing to invest in the business.

The impact of the new revenue recognition standard contributed $70 million, or approximately 3% points, to expense growth.

Compensation and employee benefit costs as well as contractor services expenses were well controlled from the year-ago quarter, demonstrating the focus to calibrate expenses against the revenue environment.

Prior year expenses included $33 million of acquisition and restructuring costs.

Beacon and organizational efficiencies:

Year-over-year Beacon savings: We expect 2018 net savings of approximately $200 million, exceeding our initial guidance of $150 million. We realized approximately $65 million of savings in 3Q18 for total year-to-date savings of approximately $180 million.

Expenses flat sequentially:^(a) We continue to execute on our next phase of efficiency initiatives which includes management streamlining to further standardize and globalize our business, along with vendor and occupancy cost improvements.

^(a)Excluding $77 million of repositioning costs in 2Q18, 3Q18 expenses were substantially flat to 2Q18. This is a non-GAAP presentation. On a GAAP-basis, expenses decreased sequentially. Please refer to the addendum for an explanation and reconciliation of non-GAAP measures.

Operating leverage: Positive operating leverage was approximately 0.8% points, compared to 3Q17.

Fee operating leverage: Fee operating leverage was -1.2% points, compared to 3Q17.

Pre-tax margin: Pre-tax margin increased 0.5% points to 29.4%, compared to 3Q17. Historical operating-basis pre-tax margin reached 31.4%.^(b)

^(b) This is a non-GAAP presentation. Please refer to the addendum for an explanation and reconciliation of non-GAAP measures.

Key metrics: Quarter-end ratios reflect our previously announced issuances of common and preferred stock and the suspension of common stock repurchases for the purpose of funding our acquisition of Charles River Development. Following the closing of the Charles River acquisition and with the previously announced suspension of common stock repurchases through the end of the fourth quarter, capital levels are expected to return to approximate prior recent historical levels.

Capital Return: Declared 3Q18 quarterly common stock dividend of $0.47 per share, an increase of 12% from the 2Q18 dividend. We intend to resume our common stock repurchases in 1Q19 and plan to repurchase up to $600 million through June 30, 2019 under our previously announced program.

Financial Results



(Table presents summary results, dollars in millions, except per share amounts, or where otherwise noted)	3Q18			2Q18			Increase (Decrease)			3Q17			Increase (Decrease)
Total fee revenue⁽¹⁾	$	2,280		$	2,358		(3.3	)%		$	2,242		1.7	%
Net interest income	672			659			2.0			603			11.4
Total revenue	2,951			3,026			(2.5	)		2,846			3.7
Provision for loan losses	5			2			150.0			3			66.7
Total expenses⁽¹⁾	2,079			2,159			(3.7	)		2,021			2.9
Net income available to common shareholders	709			698			1.6			629			12.7
Earnings per common share:
Diluted earnings per share	1.87			1.88			(0.5	)		1.66			12.7
Financial ratios and other metrics:
Quarterly average total assets	221,313			224,089			(1.2	)		218,369			1.3
Fee operating leverage⁽²⁾							40		bps				(118	)	bps
Operating leverage⁽²⁾							123						82
Return on average common equity	14.0		%	14.7		%	(70	)		13.0		%	100
Return on tangible common equity⁽³⁾	19.4			21.1			(170	)		18.0			140
Pre-tax margin (GAAP-basis)	29.4			28.6			80			28.9			50
Pre-tax margin (historical Operating-basis)	31.4			30.6			80			32.9			(150	)
Effective tax rate	11.8			15.1			(330	)		16.7			(490	)

⁽¹⁾Effects of the new revenue recognition standard (ASU 2014-09): The newly effective revenue recognition standard increased 3Q18 total fee revenue and total expenses by $70 million each. Relative to 3Q17, the new revenue recognition standard contributed 3% to fee revenue growth and 3% to expense growth. The revenue impact was $50 million in management fees, $12 million in trading services revenue, and $8 million in other line items. The expense impact was $18 million in transaction processing, $38 million in other expenses, and $14 million across other expense line items.

⁽²⁾ The financial ratio represents the rate of growth of total revenue (or fee revenue) less the rate of growth of expenses relative to the preceding or prior year period, as applicable.

⁽³⁾Return on tangible common equity is calculated by dividing year-to-date annualized net income available to common shareholders (GAAP-basis) by tangible common equity. For additional information on the Reconciliation of Tangible Common Equity Ratio refer to the addendum included with this News Release.

Selected Financial Information and Metrics

The tables below provide a summary of selected financial information and key ratios for the indicated periods.

The following table presents AUCA, AUM, market indices and foreign exchange rates for the periods indicated.



(Dollars in billions, except market indices and foreign exchange rates)	3Q18		2Q18		Increase (Decrease)		3Q17		Increase (Decrease)
Assets under custody and administration⁽¹⁾⁽²⁾	$	33,996	$	33,867	0.4	%	$	32,110	5.9	%
Assets under management⁽²⁾	2,810		2,723		3.2		2,673		5.1
Market Indices⁽³⁾:
S&P 500^®daily average	2,850		2,703		5.4		2,467		15.5
MSCI EAFE^® daily average	1,964		2,018		(2.7	)	1,934		1.6
MSCI^® Emerging Markets daily average	1,054		1,138		(7.4	)	1,068		(1.3	)
HFRI Asset Weighted Composite^® monthly average	1,414		1,406		0.6		1,358		4.1
Barclays Capital U.S. Aggregate Bond Index^® period-end	2,014		2,013		—		2,038		(1.2	)
Barclays Capital Global Aggregate Bond Index^® period-end	473		478		(1.0	)	480		(1.5	)
Average Foreign Exchange Rate (Euro vs. USD)	1.163		1.192		(2.4	)	1.175		(1.0	)
Average Foreign Exchange Rate (GBP vs. USD)	1.303		1.360		(4.2	)	1.309		(0.5	)

⁽¹⁾Includes assets under custody of $25,300 billion, $25,415 billion, and $24,240 billion, as of 3Q18, 2Q18, and 3Q17, respectively.

⁽²⁾As of period-end.

⁽³⁾The index names listed in the table are service marks of their respective owners.

Assets Under Management

The following table presents 3Q18 activity in AUM by product category.



(Dollars in billions)	Equity			Fixed-Income			Cash⁽²⁾			Multi-Asset-Class Solutions			Alternative Investments⁽³⁾			Total
Balance as of June 30, 2018	$	1,667		$	437		$	333		$	144		$	142		$	2,723
Long-term institutional inflows⁽¹⁾	150			31			—			12			2			195
Long-term institutional outflows⁽¹⁾	(121		)	(42		)	—			(13		)	(4		)	(180		)
Long-term institutional flows, net	29			(11		)	—			(1		)	(2		)	15
ETF flows, net	12			3			—			—			(3		)	12
Cash fund flows, net	—			—			(19		)	—			—			(19		)
Total flows, net	41			(8		)	(19		)	(1		)	(5		)	8
Market appreciation	85			(4		)	3			2			—			86
Foreign exchange impact	(4		)	(2		)	—			—			(1		)	(7		)
Total market/foreign exchange impact	81			(6		)	3			2			(1		)	79
Balance as of September 30, 2018	$	1,789		$	423		$	317		$	145		$	136		$	2,810

⁽¹⁾Amounts represent long-term portfolios, excluding ETFs.

⁽²⁾Includes both floating and constant-net-asset-value portfolios held in commingled structures or separate accounts.

⁽³⁾ Includes real estate investment trusts, currency and commodities, including SPDR^®Gold Shares ETF and SPDR^®Long Dollar Gold Trust ETF. State Street is not the investment manager for the SPDR^®Gold Shares ETF and the SPDR^®Long Dollar Gold Trust ETF, but acts as the marketing agent.



(Dollars in millions)	3Q18			2Q18			Increase (Decrease)			3Q17			Increase (Decrease)
Servicing fees	$	1,333		$	1,381		(3.5	)%		$	1,351		(1.3	)%
Management fees	474			465			1.9			419			13.1
Trading services revenue	288			315			(8.6	)		259			11.2
Securities finance revenue	128			154			(16.9	)		147			(12.9	)
Processing fees and other revenue	57			43			32.6			66			(13.6	)
Total fee revenue⁽¹⁾	2,280			2,358			(3.3	)		2,242			1.7
Net interest income	672			659			2.0			603			11.4
Gains (losses) related to investment securities, net	(1		)	9			nm			1			nm
Total Revenue	$	2,951		$	3,026		(2.5	)		$	2,846		3.7
Net interest margin	1.48		%	1.46		%	2		bps	1.35		%	13		bps

⁽¹⁾The newly effective revenue recognition standard increased 3Q18 total fee revenue by $70 million. The fee revenue impact was $50 million in management fees, $12 million in trading services revenue, and $8 million in other line items.

Servicing fees decreased from 3Q17 mainly due to a previously announced client transition and challenging industry conditions, partially offset by strong new business wins and market appreciation. Compared to 2Q18, servicing fees decreased, primarily reflecting a previously announced client transition and lower client activity.

Management fees increased from 3Q17, reflecting higher global equity markets. The new revenue recognition standard contributed $50 million to 3Q18 management fees relative to 3Q17. Management fees increased from 2Q18, primarily due to higher U.S. equity markets.

Trading Services revenue increased from 3Q17, reflecting higher FX client volumes. The new revenue recognition standard contributed $12 million to 3Q18 trading services relative to 3Q17. Compared to 2Q18, trading services revenue decreased primarily reflecting seasonally lower FX client volumes and lower volatility.

Securities finance revenue decreased from 3Q17, reflecting balance sheet optimization efforts. Compared to 2Q18, securities finance revenue decreased, primarily due to 2Q18 seasonality.

Processing fees and other revenue decreased from 3Q17, reflecting a 3Q17 gain related to the sale of an equity trading platform, partially offset by higher software fees. Compared to 2Q18, processing fees and other revenue increased due to higher software fees.

Net interest income increased from 3Q17, primarily due to higher market interest rates in the U.S., disciplined liability pricing, and increased client engagement across cash products, partially offset by a mix shift to HQLA. Compared to 2Q18, net interest income increased primarily due to higher U.S. interest rates and disciplined liability pricing. Net interest margin on a fully taxable-equivalent basis increased 13 and 2 basis points, respectively, compared to 3Q17 and 2Q18, driven by higher U.S. interest rates, disciplined liability pricing and a smaller interest earning balance sheet.



(Dollars in millions)	3Q18		2Q18		Increase (Decrease)		3Q17		Increase (Decrease)
Compensation and employee benefits	$	1,103	$	1,125	(2.0	)%	$	1,090	1.2	%
Information systems and communications	332		321		3.4		296		12.2
Transaction processing services	236		246		(4.1	)	215		9.8
Occupancy	110		124		(11.3	)	118		(6.8	)
Acquisition and restructuring costs	—		—		—		33		nm
Other	298		343		(13.1	)	269		10.8
Total Expenses⁽¹⁾	$	2,079	$	2,159	(3.7	)	$	2,021	2.9

⁽¹⁾The newly effective revenue recognition standard increased 3Q18 total expenses by $70 million. The expense impact was $18 million in transaction processing, $38 million in other expenses, and $14 million across other expense line items.

Compensation and employee benefits expenses increased from 3Q17, primarily reflecting higher investments to support new business and annual merit increases, partially offset by net Beacon and contractor savings. Compared to 2Q18, compensation and employee benefits expenses decreased primarily due to 2Q18 repositioning costs related to management streamlining and Beacon savings, partially offset by lower prior period incentive compensation and continued investments.

Information systems and communications expenses increased from 3Q17, primarily due to Beacon related investments and technology infrastructure enhancements. Compared to 2Q18, information systems and communications expenses increased, reflecting technology infrastructure enhancements.

Transaction processing services expenses increased from 3Q17, reflecting the new revenue recognition standard, partially offset by lower sub-custody costs. Compared to 2Q18, transaction processing services expenses decreased, primarily reflecting lower sub-custody costs.

Occupancy expenses decreased from 3Q17, reflecting advancement of our footprint optimization efforts. Compared to 2Q18, occupancy expenses decreased primarily due to 2Q18 costs related to right-sizing the real estate footprint as part of our organizational realignment.

Other expenses increased from 3Q17, primarily due to $38 million related to the new revenue recognition standard, offset by lower discretionary spend. Compared to 2Q18, other expenses decreased primarily due to lower professional fees and lower discretionary expenses.

The 3Q18 effective tax rate was 11.8% compared to 16.7% in 3Q17 and 15.1% in 2Q18. The decrease in 3Q18 tax rate includes a reduction to the estimated impact of the 2017 tax legislation changes recorded in 4Q17, as well as a change in the mix of earnings.

The following table presents regulatory capital ratios for State Street Corporation. The lower of capital ratios calculated under the Basel III advanced approaches and under the Basel III standardized approach are applied in the assessment of our capital adequacy for regulatory purposes. Quarter-end ratios reflect our previously announced issuances of common and preferred stock and the suspension of common stock repurchases for the purpose of funding our acquisition of Charles River Development. Following the closing of the Charles River acquisition and with the previously announced suspension of common stock repurchases through the end of the fourth quarter, capital levels are expected to return to approximate prior recent historical levels.



September 30, 2018⁽¹⁾	Basel III Advanced Approaches (Estimated) Pro-Forma⁽²⁾⁽³⁾		Basel III Standardized Approach (Estimated) Pro-Forma⁽³⁾		Fully Phased in SLR
Common equity tier 1 ratio	14.0	%	12.9	%
Tier 1 capital ratio	17.8		16.4
Total capital ratio	18.6		17.2
Tier 1 leverage ratio	8.1		8.1
Supplementary Leverage Ratio					7.1	%
June 30, 2018
Common equity tier 1 ratio	12.4	%	11.3	%
Tier 1 capital ratio	15.7		14.3
Total capital ratio	16.4		15.1
Tier 1 leverage ratio	7.1		7.1
Supplementary Leverage Ratio					6.2

⁽¹⁾ September 30, 2018 capital ratios are preliminary estimates.

⁽²⁾ The advanced approaches-based ratios (actual and estimated) included in this presentation reflect calculations and determinations with respect to our capital and related matters, based on State Street and external data, quantitative formulae, statistical models, historical correlations and assumptions, collectively referred to as “advanced systems.” Refer to the addendum included with this News Release for a description of the advanced approaches and a discussion of related risks. Effective January 1, 2018, the applicable final rules are in effect and the ratios presented are calculated based on fully phased-in CET1, tier 1 and total capital numbers.

⁽³⁾ Estimated pro-forma fully phased-in ratios as of September 30, 2018 reflect capital and total risk-weighted assets calculated under the Basel III final rule. Refer to the addendum included with this News Release for reconciliations of these estimated pro-forma fully phased-in ratios to our capital ratios calculated under the then applicable regulatory requirements. Effective January 1, 2018, the applicable final rules are in effect and the ratios presented are calculated based on fully phased-in CET1, tier 1 and total capital numbers.

Investor Conference Call and Quarterly Website Disclosures

State Street will webcast an investor conference call today, Friday, October 19, 2018, at 9:30 a.m. EDT, available at http://investors.statestreet.com/. The conference call will also be available via telephone, at +1 877-423-4013 inside the U.S. or at +1 706-679-5594 outside of the U.S. The Conference ID is # 3578659.

Recorded replays of the conference call will be available on the website, and by telephone at +1 855-859-2056 inside the U.S. or at +1 404-537-3406 outside the U.S. beginning approximately two hours after the call's completion. The Conference ID is # 3578659.

The telephone replay will be available for approximately two weeks following the conference call. This News Release, presentation materials referred to on the conference call and additional financial information are available on State Street's website, at http://investors.statestreet.com/ under “Investor Relations--Investor News & Events" and under the title “Events and Presentations.”

State Street intends to publish updates to its public disclosure regarding regulatory capital, as required by the Basel III final rule, and the liquidity coverage ratio, on a quarterly basis on its website at http://investors.statestreet.com/, under "Filings & Reports." Those updates will be published each quarter, during the period beginning after State Street's public announcement of its quarterly results of operations and ending on or prior to the due date under applicable bank regulatory requirements (i.e., ordinarily, ending no later than 60 days following year-end or 45 days following each other quarter-end, as applicable). For 3Q18, State Street expects to publish its updates during the period beginning today and ending on or about November 1, 2018.

State Street Corporation (NYSE: STT) is the world's leading provider of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $33,996 billion in assets under custody and administration and $2,810 billion* in assets under management as of September 30, 2018, State Street operates globally in more than 100 geographic markets and employs over 39,000 worldwide. For more information, visit State Street's website at www.statestreet.com.

* Assets under management include the assets of the SPDR® Gold ETF and the SPDR® Long Dollar Gold Trust ETF (approximately $28 billion as of September 30, 2018), for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated.

Additional Information

In this News Release:

All earnings per share amounts represent fully diluted earnings per common share.

Return on average common shareholders' equity is determined by dividing annualized net income available to common equity by average common shareholders' equity for the period.

New asset servicing mandates and servicing assets remaining to be installed in future periods exclude new business which has been contracted, but for which the client has not yet provided permission to publicly disclose and is not yet installed. These excluded assets, which from time to time may be significant, will be included in new asset servicing mandates and reflected in servicing assets remaining to be installed in the period in which the client provides its permission. Newly announced servicing asset mandates for the first quarter for 2018 include a significant amount of assets contracted for in the fourth quarter of 2017 for which we received client consent to disclose in the first quarter of 2018. Servicing mandates and servicing assets remaining to be installed in future periods are presented on a gross basis and therefore also do not include the impact of clients who have notified us during the period of their intent to terminate or reduce their relationship with State Street, which from time to time be significant.

New business in assets to be serviced is reflected in our AUCA after we begin servicing the assets, and new business in assets to be managed is reflected in our AUM after we begin managing the assets. As such, only a portion of any new asset servicing and asset management mandates may be reflected in our AUCA and AUM as of September 30, 2018. Distribution fees from the SPDR®

Gold ETF and the SPDR® Long Dollar Gold Trust ETF are recorded in brokerage and other fee revenue and not in management fee revenue.

Operating leverage is defined as the rate of growth of total revenue less the rate of growth of expenses, relative to the successive prior year period, as applicable. Fee operating leverage is defined as the rate of growth of total fee revenue less the rate of growth of expenses, relative to the successive prior year period, as applicable. Year-over-year or YoY, refers to the current year period compared to the same period a year ago.

Forward-Looking Statements

This News Release (and the conference call referenced herein) contains forward-looking statements within the meaning of United States securities laws, including statements about our goals and expectations regarding our business, financial and capital condition, results of operations, strategies, the financial and market outlook, dividend and stock purchase programs, 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 “outlook,” “expect,” "priority," “objective,” “intend,” “plan,” “forecast,” “believe,” “anticipate,” “estimate,” “seek,” “may,” “will,” “trend,” “target,” “strategy” 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 October 19, 2018.

Important factors that may affect future results and outcomes include, but are not limited to:

the financial strength of the counterparties with which we or our clients do business and to which we have investment, credit or financial exposures as a result of our acting as agent for our clients, including as asset manager;

increases in the volatility of, or declines in the level of, our NII, changes in the composition or valuation of the assets recorded in our consolidated statement of condition (and our ability to measure the fair value of investment securities) and changes in the manner in which we fund those assets;

the liquidity of the U.S. and international securities markets, particularly the markets for fixed-income securities and inter-bank credits; the liquidity of the assets on our balance sheet and changes or volatility in the sources of such funding, particularly the deposits of our clients; and demands upon our liquidity, including the liquidity demands and requirements of our clients;

the level and volatility of interest rates, the valuation of the U.S. dollar relative to other currencies in which we record revenue or accrue expenses and the performance and volatility of securities, credit, currency and other markets in the U.S. and internationally; and the impact of monetary and fiscal policy in the U.S. and internationally on prevailing rates of interest and currency exchange rates in the markets in which we provide services to our clients;

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 such securities and the recognition of an impairment loss in our consolidated statement of income;

our ability to attract deposits and other low-cost, short-term funding; our ability to manage the level and pricing of such deposits and the relative portion of our deposits that are determined to be operational under regulatory guidelines; and our ability to deploy deposits in a profitable manner consistent with our liquidity needs, regulatory requirements and risk profile;

the manner and timing with which the Federal Reserve and other U.S. and foreign regulators implement or reevaluate the regulatory framework applicable to our operations (as well as changes

to that framework), including implementation or modification of the Dodd-Frank Act and related stress testing and resolution planning requirements, implementation of international standards applicable to financial institutions, such as those proposed by the Basel Committee and European legislation (such as the AIFMD, UCITS, the Money Market Funds Regulation and MiFID II / MiFIR); among other consequences, these regulatory changes impact the levels of regulatory capital and liquidity we must maintain, acceptable levels of credit exposure to third parties, margin requirements applicable to derivatives, restrictions on banking and financial activities and the manner in which we structure and implement our global operations and servicing relationships. In addition, our regulatory posture and related expenses have been and will continue to be affected by changes in regulatory expectations for global systemically important financial institutions applicable to, among other things, risk management, liquidity and capital planning, resolution planning, compliance programs, and changes in governmental enforcement approaches to perceived failures to comply with regulatory or legal obligations;

adverse changes in the regulatory ratios that we are, or will be, required to meet, whether arising under the Dodd-Frank Act or implementation of international standards applicable to financial institutions, such as those proposed by the Basel Committee, or due to changes in regulatory positions, practices or regulations in jurisdictions in which we engage in banking activities, including changes in internal or external data, formulae, models, assumptions or other advanced systems used in the calculation of our capital or liquidity ratios that cause changes in those ratios as they are measured from period to period;

requirements to obtain the prior approval or non-objection of the Federal Reserve or other U.S. and non-U.S. regulators for the use, allocation or distribution of our capital or other specific capital actions or corporate activities, including, without limitation, acquisitions, investments in subsidiaries, dividends and stock purchases, without which our growth plans, distributions to shareholders, share repurchase programs or other capital or corporate initiatives may be restricted;

changes in law or regulation, or the enforcement of law or regulation, that may adversely affect our business activities or those of our clients or our counterparties, and the products or services that we sell, including additional or increased taxes or assessments thereon, capital adequacy requirements, margin requirements and changes that expose us to risks related to the adequacy of our controls or compliance programs;

economic or financial market disruptions in the U.S. or internationally, including those which may result from recessions or political instability; for example, the U.K.'s decision to exit from the European Union may continue to disrupt financial markets or economic growth in Europe or potential changes in trade policy and bi-lateral and multi-lateral trade agreements proposed by the U.S.;

our ability to create cost efficiencies through changes in our operational processes and to further digitize our processes and interfaces with our clients, any failure of which, in whole or in part, may among other things, reduce our competitive position, diminish the cost-effectiveness of our systems and processes or provide an insufficient return on our associated investment;

our ability to promote a strong culture of risk management, operating controls, compliance oversight, ethical behavior and governance that meets our expectations and those of our clients and our regulators, and the financial, regulatory, reputation and other consequences of our failure to meet such expectations;

the impact on our compliance and controls enhancement programs associated with the appointment of a monitor under the deferred prosecution agreement with the DOJ and compliance consultant appointed under a settlement with the SEC, including the potential for such monitor and compliance consultant to require changes to our programs or to identify other issues that require substantial expenditures, changes in our operations, or payments to clients or reporting to U.S. authorities;

the results of our review of our billing practices, including additional findings or amounts we may be required to reimburse clients, as well as potential consequences of such review, including damage to our client relationships or our reputation and adverse actions by governmental authorities;

the results of, and costs associated with, governmental or regulatory inquiries and investigations, litigation and similar claims, disputes, or civil or criminal proceedings;

changes or potential changes in the amount of compensation we receive from clients for our services, and the mix of services provided by us that clients choose;

the large institutional clients on which we focus are often able to exert considerable market influence and have diverse investment activities, and this, combined with strong competitive market forces, subjects us to significant pressure to reduce the fees we charge, to potentially significant changes in our AUCA or our AUM in the event of the acquisition or loss of a client, in whole or in part, and to potentially significant changes in our fee revenue in the event a client re-balances or changes its investment approach or otherwise re-directs assets to lower- or higher-fee asset classes;

the potential for losses arising from our investments in sponsored investment funds;

the possibility that our clients will incur substantial losses in investment pools for which we act as agent, the possibility of significant reductions in the liquidity or valuation of assets underlying those pools and the potential that clients will seek to hold us liable for such losses; the possibility that our clients or regulators will assert claims that our fees with respect to such investment products are not appropriate or consistent with our fiduciary responsibilities;

our ability to anticipate and manage the level and timing of redemptions and withdrawals from our collateral pools and other collective investment products;

the credit agency ratings of our debt and depositary obligations and investor and client perceptions of our financial strength;

adverse publicity, whether specific to State Street or regarding other industry participants or industry-wide factors, or other reputational harm;

our ability to control operational risks, data security breach risks and outsourcing risks, 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;

our ability to expand our use of technology to enhance the efficiency, accuracy and reliability of our operations and our dependencies on information technology and our ability to control related risks, including cyber-crime and other threats to our information technology infrastructure and systems (including those of our third-party service providers) and their effective operation both independently and with external systems, and complexities and costs of protecting the security of such systems and data;

changes or potential changes to the competitive environment, including changes due to regulatory and technological changes, the effects of industry consolidation and perceptions of State Street as a suitable service provider or counterparty;

our ability to complete acquisitions, joint ventures and divestitures, and our the ability to obtain regulatory approvals, the ability to arrange financing as required and the ability to satisfy closing conditions;

the risks that our acquired businesses, including our acquisition of Charles River Development, and joint ventures will not achieve their anticipated financial, operational and product innovation benefits or will not be integrated successfully, or that the integration will take longer than anticipated; that expected synergies will not be achieved or unexpected negative synergies or liabilities 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 our relationships with our clients, our employees or regulators;

our ability to integrate Charles River Development's front office systems with our middle and back office capabilities to offer an front to back office system that is competitive and meets our clients requirements;

our ability to recognize evolving needs of our clients and to develop products that are responsive to such trends and profitable to us; the performance of and demand for the products and services we offer; and the potential for new products and services to impose additional costs on us and expose us to increased operational risk;

our ability to grow revenue, manage expenses, attract and retain highly skilled people and raise the capital necessary to achieve our business goals and comply with regulatory requirements and expectations;

changes in accounting standards and practices; and

the impact of the U.S. tax legislation enacted in 2017, 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 2017 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 News Release should not by relied on as representing our expectations or beliefs as of any time subsequent to the time this News Release is first issued, and we do not undertake efforts to revise those forward-looking statements to reflect events after that time.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
September 30, 2018

Table of Contents

GAAP-Basis Financial Information:	Page
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
Average Statement of Condition - Rates Earned and Paid - Fully Taxable-Equivalent Basis - Year to Date	8
Assets Under Custody and Administration	9
Assets Under Management	10

Investment Portfolio:
Investment Portfolio Holdings by Asset Class	11
Investment Portfolio Non-U.S. Investments	12

Non-GAAP Financial Information:
Reconciliations of Non-GAAP Financial Information	13
Reconciliation of Pre-Tax Margin	14
Reconciliations of Constant Currency FX Impacts	15

Capital:
Reconciliation of Tangible Common Equity Ratio	16
Regulatory Capital	17
Reconciliations of Fully Phased-In Capital Ratios	18
Reconciliations of Supplementary Leverage Ratios	20


This financial information should be read in conjunction with State Street's news release dated October 19, 2018.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
4-YEAR SUMMARY OF RESULTS

(Dollars in millions, except per share amounts, or where otherwise noted)	2014			2015			2016			2017
Year ended December 31:
Total fee revenue	$	8,010		$	8,278		$	8,116		$	8,905
Net interest income	2,260			2,088			2,084			2,304
Gains (losses) related to investment securities, net	4			(6		)	7			(39		)
Total revenue	10,274			10,360			10,207			11,170
Provision for loan losses	10			12			10			2
Total expenses	7,827			8,050			8,077			8,269
Income before income tax expense	2,437			2,298			2,120			2,899
Income tax expense (benefit)	415			318			(22		)	722
Net income from non-controlling interest	—			—			1			—
Net income	2,022			1,980			2,143			2,177
Net income available to common shareholders	$	1,958		$	1,848		$	1,968		$	1,993
Per Common Share:
Diluted earnings per common share	$	4.53		$	4.47		$	4.97		$	5.24
Average diluted common shares outstanding (in thousands)	432,007			413,638			396,090			380,213
Cash dividends declared per common share	$	1.16		$	1.32		$	1.44		$	1.60
Closing price per share of common stock (at year end)	78.50			66.36			77.72			97.61
Balance Sheet, as of December 31:
Investment securities	$	112,636		$	100,022		$	97,167		$	97,579
Average total interest-earning assets	209,054			220,456			199,184			191,235
Total assets	274,089			245,155			242,698			238,425
Deposits	209,040			191,627			187,163			184,896
Long-term debt	10,012			11,497			11,430			11,620
Total shareholders' equity	21,328			21,103			21,219			22,317
Ratios and Other Metrics:
Return on average common equity	9.8		%	9.8		%	10.5		%	10.6		%
Pre-tax margin (GAAP-basis)	23.7			22.2			20.8			26.0
Pre-tax margin (historical Operating-basis)⁽¹⁾	30.0			29.1			27.1			31.4
Net interest margin, fully taxable-equivalent basis	1.16			1.03			1.13			1.29
Common equity tier 1 ratio⁽²⁾	12.4			12.5			11.7			12.3
Tier 1 capital ratio⁽²⁾	14.5			15.3			14.8			15.5
Total capital ratio⁽²⁾	16.4			17.4			16.0			16.5
Tier 1 leverage ratio⁽²⁾	6.3			6.9			6.5			7.3
Supplementary leverage ratio⁽²⁾	5.6			6.2			5.9			6.5
Assets under custody and administration (in trillions)	$	28.19		$	27.51		$	28.77		$	33.12
Assets under management (in trillions)	2.45			2.25			2.47			2.78

⁽¹⁾ Refer to Reconciliations of Non-GAAP Financial Information page for details on non-GAAP metrics.
⁽²⁾The capital ratios presented are calculated in conformity with the applicable regulatory guidance in effect as of each period end. See Reconciliation of Fully Phased-In Capital Ratios for details of reconciliations between these ratios and our fully phased-in ratios. Effective January 1, 2018, the applicable final rules are in effect and the ratios are calculated based on fully phased-in CET1, Tier 1 and Total capital numbers.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED FINANCIAL HIGHLIGHTS

	Quarters																					% Change
(Dollars in millions, except per share amounts, or where otherwise noted)	1Q17			2Q17			3Q17			4Q17			1Q18			2Q18			3Q18			3Q18 vs. 3Q17			3Q18 vs. 2Q18
Income Statement
Fee revenue⁽¹⁾	$	2,198		$	2,235		$	2,242		$	2,230		$	2,378		$	2,358		$	2,280		1.7	%		(3.3	)%
Net interest income⁽¹⁾	510			575			603			616			643			659			672			11.4			2.0
Gains (losses) related to investment securities, net	(40		)	—			1			—			(2		)	9			(1		)	nm			nm
Total revenue	2,668			2,810			2,846			2,846			3,019			3,026			2,951			3.7			(2.5	)
Provision for loan losses	(2		)	3			3			(2		)	—			2			5			66.7			150.0
Total expenses⁽²⁾	2,086			2,031			2,021			2,131			2,256			2,159			2,079			2.9			(3.7	)
Income before income tax expense	584			776			822			717			763			865			867			5.5			0.2
Income tax expense	82			156			137			347			102			131			102			(25.5	)		(22.1	)
Net income	502			620			685			370			661			734			765			11.7			4.2
Net income available to common shareholders	$	446		$	584		$	629		$	334		$	605		$	698		$	709		12.7			1.6
Per Common Share:
Diluted earnings per common share	$	1.15		$	1.53		$	1.66		$	.89		$	1.62		$	1.88		$	1.87		12.7			(0.5	)
Average diluted common shares outstanding (in thousands)	386,417			380,915			378,518			375,477			372,619			370,410			379,383			0.2			2.4
Cash dividends declared per common share	$	.38		$	.38		$	.42		$	.42		$	.42		$	.42		$	.47		11.9			11.9
Closing price per share of common stock (as of quarter end)	79.61			89.73			95.54			97.61			99.73			93.09			83.78			(12.3	)		(10.0	)
At quarter-end:
Total assets	$	236,802		$	238,274		$	235,986		$	238,425		$	250,286		$	248,308		$	234,007		(0.8	)		(5.8	)
Investment securities	94,639			95,255			93,088			97,579			85,462			86,942			86,669			(6.9	)		(0.3	)
Deposits	183,465			181,416			179,263			184,896			191,517			186,663			168,198			(6.2	)		(9.9	)
Long-term debt	11,394			11,737			11,716			11,620			10,944			10,387			10,335			(11.8	)		(0.5	)
Total shareholders' equity	21,294			22,068			22,497			22,317			22,399			22,571			24,553			9.1			8.8
Securities On Loan (dollars in billions):
Average securities on loan	$	368		$	384		$	383		$	397		$	397		$	406		$	386		0.8			(4.9	)
End-of-period securities on loan	378			376			385			389			405			404			386			0.3			(4.5	)
Ratios and Other Metrics:
Return on average common equity	9.9		%	12.6		%	13.0		%	6.9		%	12.8		%	14.7		%	14.0		%	100		bps	(70	)	bps
Pre-tax margin (GAAP-basis)	21.9			27.6			28.9			25.2			25.3			28.6			29.4			50			80
Pre-tax margin (historical Operating-basis, excluding repositioning charges)⁽³⁾	26.1			33.3			32.9			33.1			27.4			33.0			31.4			(150	)		(160	)
Net interest margin, fully taxable-equivalent basis	1.17			1.27			1.35			1.38			1.40			1.46			1.48			13			2
Common equity tier 1 ratio⁽⁴⁾	11.2			12.0			12.6			12.3			12.1			12.4			14.0			140			160
Tier 1 capital ratio⁽⁴⁾	14.4			15.1			15.8			15.5			15.4			15.7			17.8			200			210
Total capital ratio⁽⁴⁾	15.4			16.2			16.9			16.5			16.3			16.4			18.6			170			220
Tier 1 leverage ratio⁽⁴⁾	6.8			7.0			7.4			7.3			6.9			7.1			8.1			70			100
Supplementary leverage ratio⁽⁴⁾	6.1			6.2			6.5			6.5			6.0			6.2			7.1			60			90
Assets under custody and administration (in billions)	$	29,833		$	31,037		$	32,110		$	33,119		$	33,284		$	33,867		$	33,996		5.9	%		0.4	%
Assets under management (in billions)	2,561			2,606			2,673			2,782			2,729			2,723			2,810			5.1			3.2

⁽¹⁾Approximately $15 million of swap costs in 1Q18 were reclassified from processing fees and other revenue within fee revenue to net interest income to conform to current presentation. No other prior periods were revised.
⁽²⁾ 2Q18 includes repositioning charges of approximately $77 million, including approximately $61 million within Compensation and employee benefits expense and $16 million within Occupancy expense.
⁽³⁾ Refer to Reconciliations of Non-GAAP Financial Information page for details on non-GAAP metrics.
⁽⁴⁾The capital ratios presented are calculated in conformity with the applicable regulatory guidance in effect as of each period end. See Reconciliation of Fully Phased-In Capital Ratios for details of reconciliations between these ratios and our fully phased-in ratios. Effective January 1, 2018, the applicable final rules are in effect and the ratios are calculated based on fully phased-in CET1, Tier 1 and Total capital numbers.
^nm Not meaningful



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED RESULTS OF OPERATIONS

	Quarters																		% Change				Year-to-Date					% Change
(Dollars in millions, except per share amounts, or where otherwise noted)	1Q17			2Q17		3Q17		4Q17			1Q18			2Q18		3Q18			3Q18 vs. 3Q17		3Q18 vs. 2Q18		3Q17			3Q18		YTD 3Q18 vs. YTD 3Q17
Reported Results
Fee revenue:
Servicing fees	$	1,296		$	1,339	$	1,351	$	1,379		$	1,421		$	1,381	$	1,333		(1.3	)%	(3.5	)%	$	3,986		$	4,135	3.7	%
Management fees	382			397		419		418			472			465		474			13.1		1.9		1,198			1,411		17.8
Trading services:
Total foreign exchange trading	164			178		150		149			181			194		169			12.7		(12.9	)	492			544		10.6
Total brokerage and other trading services	111			111		109		99			123			121		119			9.2		(1.7	)	331			363		9.7
Total trading services	275			289		259		248			304			315		288			11.2		(8.6	)	823			907		10.2
Securities finance	133			179		147		147			141			154		128			(12.9	)	(16.9	)	459			423		(7.8	)
Processing fees and other⁽¹⁾	112			31		66		38			40			43		57			(13.6	)	32.6		209			140		(33.0	)
Total fee revenue⁽¹⁾	2,198			2,235		2,242		2,230			2,378			2,358		2,280			1.7		(3.3	)	6,675			7,016		5.1
Net interest income:
Interest income	650			700		761		797			857			907		916			20.4		1.0		2,111			2,680		27.0
Interest expense⁽¹⁾	140			125		158		181			214			248		244			54.4		(1.6	)	423			706		66.9
Net interest income⁽¹⁾	510			575		603		616			643			659		672			11.4		2.0		1,688			1,974		16.9
Gains (losses) related to investment securities, net	(40		)	—		1		—			(2		)	9		(1		)	nm		nm		(39		)	6		nm
Total revenue	2,668			2,810		2,846		2,846			3,019			3,026		2,951			3.7		(2.5	)	8,324			8,996		8.1
Provision for loan losses	(2		)	3		3		(2		)	—			2		5			66.7		150.0		4			7		75.0
Expenses:
Compensation and employee benefits⁽²⁾	1,166			1,071		1,090		1,067			1,249			1,125		1,103			1.2		(2.0	)	3,327			3,477		4.5
Information systems and communications	287			283		296		301			315			321		332			12.2		3.4		866			968		11.8
Transaction processing services	197			207		215		219			242			246		236			9.8		(4.1	)	619			724		17.0
Occupancy⁽²⁾	110			116		118		117			120			124		110			(6.8	)	(11.3	)	344			354		2.9
Acquisition and restructuring costs	29			71		33		133			—			—		—			(100.0	)	—		133			—		(100.0	)
Other	297			283		269		294			330			343		298			10.8		(13.1	)	849			971		14.4
Total expenses⁽³⁾	2,086			2,031		2,021		2,131			2,256			2,159		2,079			2.9		(3.7	)	6,138			6,494		5.8
Income before income tax expense	584			776		822		717			763			865		867			5.5		0.2		2,182			2,495		14.3
Income tax expense	82			156		137		347			102			131		102			(25.5	)	(22.1	)	375			335		(10.7	)
Net income	$	502		$	620	$	685	$	370		$	661		$	734	$	765		11.7		4.2		$	1,807		$	2,160	19.5



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED RESULTS OF OPERATIONS (Continued)

	Quarters																					% Change						Year-to-Date						% Change
(Dollars in millions, except per share amounts, or where otherwise noted)	1Q17			2Q17			3Q17			4Q17			1Q18			2Q18			3Q18			3Q18 vs. 3Q17			3Q18 vs. 2Q18			3Q17			3Q18			YTD 3Q18 vs. YTD 3Q17
Adjustments to net income:
Dividends on preferred stock	$	(55	)	$	(36	)	$	(55	)	$	(36	)	$	(55	)	$	(36	)	$	(55	)	—	%		52.8	%		$	(146	)	$	(146	)	—	%
Earnings allocated to participating securities	(1		)	—			(1		)	—			(1		)	—			(1		)	—			nm			(2		)	(2		)	—
Net income available to common shareholders	$	446		$	584		$	629		$	334		$	605		$	698		$	709		12.7			1.6			$	1,659		$	2,012		21.3
Earnings per common share:
Basic	$	1.17		$	1.56		$	1.69		$	.91		$	1.65		$	1.91		$	1.89		11.8			(1.0	)		$	4.41		$	5.45		23.6
Diluted	1.15			1.53			1.66			.89			1.62			1.88			1.87			12.7			(0.5	)		4.35			5.38			23.7
Average common shares outstanding:
Basic	381,224			375,395			372,765			369,934			367,439			365,619			374,963			0.6			2.6			376,430			369,368			(1.9	)
Diluted	386,417			380,915			378,518			375,477			372,619			370,410			379,383			0.2			2.4			381,779			374,064			(2.0	)
Cash dividends declared per common share	$	.38		$	.38		$	.42		$	.42		$	.42		$	.42		$	.47		11.9			11.9			$	1.18		$	1.31		11.0
Closing price per share of common stock (as of quarter end)	79.61			89.73			95.54			97.61			99.73			93.09			83.78			(12.3	)		(10.0	)		95.54			83.78			(12.3	)
Financial ratios:
Return on average common equity	9.9		%	12.6		%	13.0		%	6.9		%	12.8		%	14.7		%	14.0		%	100		bps	(70	)	bps	11.9		%	13.8		%	190		bps
Return on tangible common equity⁽⁴⁾	16.0			17.3			18.0			16.7			20.1			21.1			19.4			140			(170	)		18.0			19.4			140
Pre-tax margin (GAAP-basis)	21.9			27.6			28.9			25.2			25.3			28.6			29.4			50			80			26.2			27.7			150
Pre-tax margin (historical Operating-basis, excluding repositioning charges)⁽⁵⁾	26.1			33.3			32.9			33.1			27.4			33.0			31.4			(150	)		(160	)		30.8			30.6			(20	)
Effective tax rate⁽⁶⁾	14.0			20.1			16.7			48.4			13.5			15.1			11.8			(490	)		(330	)		17.2			13.4			(380	)

⁽¹⁾ Approximately $15 million of swap costs in 1Q18 were reclassified from processing fees and other revenue within fee revenue to net interest income to conform to current presentation. No other prior periods were revised.
⁽²⁾2Q18 includes repositioning charges of approximately $77 million, including approximately $61 million within Compensation and employee benefits expense and $16 million within Occupancy expense.
⁽³⁾Excluding the impact of $33 million of restructuring costs in 3Q17, and of the new revenue recognition accounting standard of approximately $70 million in 3Q18, 3Q18 Total expenses increased 1% compared to 3Q17. Excluding the impact of the $77 million repositioning charge in 2Q18, 3Q18 Total expenses were flat compared to 2Q18.
⁽⁴⁾Return on tangible common equity is calculated by dividing year-to-date annualized net income available to common shareholders (GAAP-basis) by tangible common equity.
⁽⁵⁾Refer to Reconciliations of Non-GAAP Financial Information pages for details on non-GAAP basis metrics.
⁽⁶⁾As a result of the enactment of the Tax Cuts and Jobs Act, the fourth quarter of 2017 included a one-time estimated net cost of $250 million. The GAAP-basis effective tax rate for the fourth quarter of 2017 excluding this one-time cost was 13.2%.
^nm Not meaningful



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED STATEMENT OF CONDITION

	Quarters																					% Change
(Dollars in millions, except per share amounts)	1Q17			2Q17			3Q17			4Q17			1Q18			2Q18			3Q18			3Q18 vs. 3Q17		3Q18 vs. 2Q18
Assets:
Cash and due from banks	$	2,909		$	3,156		$	3,939		$	2,107		$	2,546		$	3,886		$	4,145		5.2	%	6.7	%
Interest-bearing deposits with banks	66,789			63,617			60,956			67,227			79,418			76,366			63,618			4.4		(16.7	)
Securities purchased under resale agreements	2,181			3,172			3,465			3,241			5,136			3,583			4,195			21.1		17.1
Trading account assets	945			896			1,135			1,093			1,178			1,160			1,001			(11.8	)	(13.7	)
Investment securities:
Investment securities available-for-sale	58,810			59,025			56,238			57,121			44,304			47,348			46,102			(18.0	)	(2.6	)
Investment securities held-to-maturity⁽¹⁾	35,829			36,230			36,850			40,458			41,158			39,594			40,567			10.1		2.5
Total investment securities	94,639			95,255			93,088			97,579			85,462			86,942			86,669			(6.9	)	(0.3	)
Loans and leases, net⁽²⁾	22,486			24,307			23,581			23,240			29,528			24,069			23,312			(1.1	)	(3.1	)
Premises and equipment, net⁽³⁾	2,101			2,137			2,167			2,186			2,194			2,189			2,193			1.2		0.2
Accrued interest and fees receivable	2,690			2,805			3,043			3,099			3,183			3,086			3,196			5.0		3.6
Goodwill	5,855			5,945			5,997			6,022			6,068			5,973			6,016			0.3		0.7
Other intangible assets	1,710			1,693			1,658			1,613			1,578			1,500			1,461			(11.9	)	(2.6	)
Other assets	34,497			35,291			36,957			31,018			33,995			39,554			38,201			3.4		(3.4	)
Total assets	$	236,802		$	238,274		$	235,986		$	238,425		$	250,286		$	248,308		$	234,007		(0.8	)	(5.8	)
Liabilities:
Deposits:
Non-interest-bearing	$	56,786		$	50,957		$	49,850		$	47,175		$	57,025		$	52,316		$	41,893		(16.0	)	(19.9	)
Interest-bearing -- U.S.	26,746			24,438			49,394			50,139			55,094			57,407			63,661			28.9		10.9
Interest-bearing -- Non-U.S.	99,933			106,021			80,019			87,582			79,398			76,940			62,644			(21.7	)	(18.6	)
Total deposits	183,465			181,416			179,263			184,896			191,517			186,663			168,198			(6.2	)	(9.9	)
Securities sold under repurchase agreements	4,003			3,856			3,867			2,842			2,020			3,088			1,690			(56.3	)	(45.3	)
Other short-term borrowings	1,177			1,465			1,253			1,144			1,066			1,103			1,009			(19.5	)	(8.5	)
Accrued expenses and other liabilities	15,469			17,732			17,390			15,606			22,340			24,496			28,222			62.3		15.2
Long-term debt	11,394			11,737			11,716			11,620			10,944			10,387			10,335			(11.8	)	(0.5	)
Total liabilities	215,508			216,206			213,489			216,108			227,887			225,737			209,454			(1.9	)	(7.2	)
Shareholders' equity:
Preferred stock, no par, 3,500,000 shares authorized:
Series C, 5,000 shares issued and outstanding	491			491			491			491			491			491			491			—		—
Series D, 7,500 shares issued and outstanding	742			742			742			742			742			742			742			—		—
Series E, 7,500 shares issued and outstanding	728			728			728			728			728			728			728			—		—
Series F, 7,500 shares issued and outstanding	742			742			742			742			742			742			742			—		—
Series G, 5,000 shares issued and outstanding	493			493			493			493			493			493			493			—		—
Series H, 5,000 shares issued and outstanding	—			—			—			—			—			—			494			100.0		100.0
Common stock, $1 par, 750,000,000 shares authorized⁽⁴⁾	504			504			504			504			504			504			504			—		—
Surplus	9,796			9,803			9,803			9,799			9,796			9,820			10,418			6.3		6.1
Retained earnings	17,762			18,202			18,675			18,856			19,311			19,856			20,387			9.2		2.7
Accumulated other comprehensive income (loss)	(1,805		)	(1,270		)	(984		)	(1,009		)	(1,074		)	(1,488		)	(1,711		)	73.9		15.0
Treasury stock, at cost⁽⁵⁾	(8,159		)	(8,367		)	(8,697		)	(9,029		)	(9,334		)	(9,317		)	(8,735		)	0.4		(6.2	)
Total shareholders' equity	21,294			22,068			22,497			22,317			22,399			22,571			24,553			9.1		8.8
Total liabilities and equity	$	236,802		$	238,274		$	235,986		$	238,425		$	250,286		$	248,308		$	234,007		(0.8	)	(5.8	)



	1Q17			2Q17			3Q17			4Q17			1Q18			2Q18			3Q18
⁽¹⁾Fair value of investment securities held-to-maturity	$	35,694		$	36,169		$	36,836		$	40,255		$	40,483		$	38,805		$	39,591
⁽²⁾ Allowance for loan losses	51			54			58			54			54			55			60
⁽³⁾ Accumulated depreciation for premises and equipment	3,463			3,611			3,750			3,881			4,005			3,999			4,110
⁽⁴⁾ Common stock shares issued	503,879,642			503,879,642			503,879,642			503,879,642			503,879,642			503,879,642			503,879,642
⁽⁵⁾ Treasury stock shares	127,520,264			129,773,003			133,038,955			136,229,784			138,472,445			138,052,038			124,390,135



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
AVERAGE STATEMENT OF CONDITION - RATES EARNED AND PAID - FULLY TAXABLE-EQUIVALENT BASIS⁽¹⁾
The following table presents average rates earned and paid, on a fully taxable-equivalent basis, on consolidated average interest-earning assets and average interest-bearing liabilities for the quarters indicated. Tax-equivalent adjustments were calculated using a federal income tax rate of 35% for periods ending in 2017 and a tax rate of 21% for periods ending in 2018, adjusted for applicable state income taxes, net of related federal benefit. Refer to Reconciliations of Operating-Basis (Non-GAAP) Financial Information within this package for reconciliations of GAAP-basis to fully taxable-equivalent basis net interest income for each of the periods shown below.
	Quarters																																			% Change
	1Q17					2Q17					3Q17					4Q17					1Q18					2Q18					3Q18					3Q18 vs. 3Q17		3Q18 vs. 2Q18
(Dollars in millions; fully-taxable equivalent basis)	Average balance		Average rates			Average balance		Average rates			Average balance		Average rates			Average balance		Average rates			Average balance		Average rates			Average balance		Average rates			Average balance		Average rates			Average balance		Average balance
Assets:
Interest-bearing deposits with banks	$	48,893	0.28		%	$	53,146	0.31		%	$	45,513	0.40		%	$	42,597	0.55		%	$	51,492	0.64		%	$	55,180	0.66		%	$	56,513	0.67		%	24.2	%	2.4	%
Securities purchased under resale agreements⁽²⁾	2,056		9.07			2,352		11.77			2,167		13.53			1,950		15.25			2,872		10.89			2,474		13.20			2,932		11.77			35.3		18.5
Trading account assets	914		—			941		—			991		—			1,194		—			1,138		—			1,139		—			1,019		—			2.8		(10.5	)
Investment securities
U.S. Treasury and federal agencies
Direct obligations	21,705		1.53			19,421		1.60			18,091		1.66			17,586		1.68			17,183		1.67			16,627		1.69			15,834		1.71			(12.5	)	(4.8	)
Mortgage-and asset-backed securities	23,710		2.18			23,013		2.27			23,160		2.27			26,441		2.31			28,307		2.59			31,064		2.70			32,962		2.82			42.3		6.1
State and political subdivisions	10,314		3.83			9,914		3.77			9,976		3.79			9,515		3.82			8,622		3.23			6,739		3.48			4,107		3.68			(58.8	)	(39.1	)
Other investments
Asset-backed securities	22,609		1.49			23,367		1.56			23,866		1.64			21,727		1.65			19,543		1.78			12,471		2.24			11,259		2.30			(52.8	)	(9.7	)
Collateralized mortgage-backed securities and obligations	3,939		2.71			3,780		2.72			3,394		2.78			2,608		2.75			2,088		2.07			1,492		2.95			1,415		3.05			(58.3	)	(5.2	)
Money market mutual funds	360		0.37			322		—			385		0.64			416		0.72			—		—			—		—			—		—			(100.0	)	—
Other debt investments and equity securities	14,582		1.34			14,820		1.27			16,439		1.24			17,672		1.25			19,619		1.25			17,967		1.31			20,046		1.20			21.9		11.6
Total investment securities	97,219		1.94			94,637		1.97			95,311		1.99			95,965		2.01			95,362		2.03			86,360		2.21			85,623		2.21			(10.2	)	(0.9	)
Loans and leases	20,139		2.17			21,070		2.31			22,843		2.49			23,566		2.46			23,959		2.68			23,622		2.93			22,511		3.11			(1.5	)	(4.7	)
Other interest-earning assets	22,619		0.62			23,141		0.76			23,091		1.18			22,681		1.32			17,733		1.78			17,397		2.36			14,702		2.59			(36.3	)	(15.5	)
Total interest-earning assets	191,840		1.47			195,287		1.52			189,916		1.68			187,953		1.77			192,556		1.85			186,172		1.99			183,300		2.01			(3.5	)	(1.5	)
Cash and due from banks	2,608					3,833					3,098					2,848					3,081					3,978					3,067					(1.0	)	(22.9	)
Other assets	24,761					24,797					25,355					25,547					31,233					33,939					34,946					37.8		3.0
Total assets	$	219,209				$	223,917				$	218,369				$	216,348				$	226,870				$	224,089				$	221,313				1.3		(1.2	)
Liabilities:
Interest-bearing deposits:
U.S.	$	25,928	0.50		%	$	25,770	0.38		%	$	25,767	0.32		%	$	44,873	0.17		%	$	48,638	0.28		%	$	50,276	0.37		%	$	57,558	0.51		%	123.4		14.5
Non-U.S.⁽³⁾	94,990		0.05			99,389		(0.04		)	96,189		0.07			77,327		0.24			78,582		0.15			76,307		0.23			67,741		0.06			(29.6	)	(11.2	)
Total interest-bearing deposits⁽³⁾	120,918		0.15			125,159		0.05			121,956		0.13			122,200		0.22			127,220		0.15			126,583		0.28			125,299		0.27			2.7		(1.0	)
Securities sold under repurchase agreements⁽⁴⁾	3,894		—			4,028		—			3,974		0.07			2,843		—			2,617		0.16			2,641		0.92			1,835		0.79			(53.8	)	(30.5	)
Federal funds purchased	—		—			2		—			—		—			—		—			—		—			—		—			1		—			nm		nm
Other short-term borrowings	1,341		0.63			1,322		0.80			1,277		0.81			1,311		0.96			1,255		1.09			1,320		1.25			1,248		1.38			(2.3	)	(5.5	)
Long-term debt	11,421		2.56			11,515		2.61			11,766		2.67			11,674		2.79			11,412		3.37			10,649		3.66			10,375		3.84			(11.8	)	(2.6	)
Other interest-bearing liabilities	5,240		1.63			5,355		2.44			4,063		3.70			3,791		3.10			5,260		3.87			4,994		4.17			5,306		3.88			30.6		6.2
Total interest-bearing liabilities	142,814		0.40			147,381		0.34			143,036		0.44			141,819		0.51			147,764		0.59			146,187		0.68			144,064		0.67			0.7		(1.5	)
Non-interest bearing deposits	44,249					42,244					39,685					38,889					37,790					36,212					34,279					(13.6	)	(5.3	)
Other liabilities	10,626					12,441					13,294					13,117					18,942					19,454					19,585					47.3		0.7
Preferred shareholders' equity	3,197					3,197					3,197					3,197					3,197					3,197					3,218					0.7		0.7
Common shareholders' equity	18,323					18,654					19,157					19,326					19,177					19,039					20,167					5.3		5.9
Total liabilities and shareholders' equity	$	219,209				$	223,917				$	218,369				$	216,348				$	226,870				$	224,089				$	221,313				1.3		(1.2	)
Excess of rate earned over rate paid			1.07		%			1.18		%			1.24		%			1.26		%			1.26		%			1.31		%			1.34		%
Net interest margin			1.17		%			1.27		%			1.35		%			1.38		%			1.40		%			1.46		%			1.48		%
Net interest income, fully taxable-equivalent basis			$	553				$	617				$	645				$	656				$	664				$	677				$	684
Tax-equivalent adjustment			(43		)			(42		)			(42		)			(40		)			(21		)			(18		)			(12		)
Net interest income, GAAP-basis⁽³⁾			$	510				$	575				$	603				$	616				$	643				$	659				$	672

⁽¹⁾ Rates earned/paid on interest-earning assets and interest-bearing liabilities include the impact of hedge activities associated with our asset and liability management activities where applicable.
⁽²⁾Reflects the impact of balance sheet netting under enforceable netting agreements of approximately $31 billion, $33 billion, $30 billion and $31 billion for the first, second, third and fourth quarters of 2017, respectively, and approximately $32 billion, $31 billion and $35 billion in the first, second and third quarters of 2018, respectively. Excluding the impact of netting, the average interest rates would be approximately 0.56%, 0.79%, 0.92%, and 0.90% for the first, second, third and fourth quarters of 2017 and approximately 0.89%, 0.98% and 0.91% for the first, second and third quarters of 2018, respectively.
⁽³⁾ Average rate includes the impact of FX swap expense of approximately $32 million, $13 million, $39 million and $57 million for the first, second, third and fourth quarters of 2017 and $34 million, $42 million and $6 million for the first, second and third quarters of 2018, respectively. The first quarter of 2018 includes approximately $15 million of swap costs that were reclassified from processing fees and other revenue within fee revenue to net interest income to conform to current presentation. Average rates for total interest-bearing deposits excluding the impact of FX swap expense were 0.04%, 0.00%, 0.00% and 0.03% for the first, second, third, and fourth quarters of 2017 and 0.09%, 0.15%, and 0.25% for the first, second and third quarters of 2018, respectively.
⁽⁴⁾Interest for each period shown was less than $1 million representing average interest rates of 0.03%, 0.04% and 0.06% for the first, second and fourth quarters of 2017, respectively.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
AVERAGE STATEMENT OF CONDITION - RATES EARNED AND PAID - FULLY TAXABLE-EQUIVALENT BASIS - YEAR TO DATE⁽¹⁾
The following table presents consolidated average interest-earning assets, average interest-bearing liabilities and related average rates earned and paid, respectively, for the years indicated, on a fully taxable-equivalent basis, which is a non-GAAP measure. Tax-equivalent adjustments were calculated using a federal income tax rate of 35% for periods ending in 2017 and a tax rate of 21% for periods ending in 2018, adjusted for applicable state income taxes, net of related federal benefit. Refer to Reconciliations of Operating-Basis (Non-GAAP) Financial Information within this package for reconciliations of GAAP-basis to fully taxable-equivalent basis net interest income for each of the periods shown below.
	Year-to-Date
	2017					2018					% Change
(Dollars in millions; fully-taxable equivalent basis)	Average balance		Average rates			Average balance		Average rates			2018 vs. 2017
Assets:
Interest-bearing deposits with banks	$	49,171	0.33		%	$	54,414	0.66		%	10.7	%
Securities purchased under resale agreements⁽²⁾	2,192		11.52			2,759		11.90			25.9
Trading account assets	949		(0.14		)	1,098		(0.03		)	15.7
Investment securities
U.S. Treasury and federal agencies
Direct obligations	19,726		1.59			16,543		1.69			(16.1	)
Mortgage-and asset-backed securities	23,293		2.24			30,795		2.71			32.2
State and political subdivisions	10,067		3.80			6,473		3.42			(35.7	)
Other investments
Asset-backed securities	23,285		1.56			14,394		2.05			(38.2	)
Collateralized mortgage-backed securities and obligations	3,703		2.74			1,663		2.61			(55.1	)
Money market mutual funds	355		0.50			—		—			(100.0	)
Other debt investments and equity securities	15,287		1.28			19,212		1.25			25.7
Total investment securities	95,716		1.96			89,080		2.15			(6.9	)
Loans and leases	21,360		2.33			23,359		2.90			9.4
Other interest-earning assets	22,952		0.85			16,599		2.22			(27.7	)
Total interest-earning assets	192,340		1.56			187,309		1.95			(2.6	)
Cash and due from banks	3,181					3,375					6.1
Other assets	24,973					33,386					33.7
Total assets	$	220,494				$	224,070				1.6
Liabilities:
Interest-bearing deposits:
U.S.	$	25,821	0.40			52,190		0.39			102.1
Non-U.S.⁽³⁾	96,860		0.03			74,170		0.15			(23.4	)
Total interest-bearing deposits⁽³⁾	122,681		0.11			126,360		0.25			3.0
Securities sold under repurchase agreements	3,965		0.05			2,361		0.61			(40.5	)
Federal funds purchased	1		—			—		—			(100.0	)
Other short-term borrowings	1,313		0.75			1,274		1.24			(3.0	)
Long-term debt	11,569		2.61			10,808		3.62			(6.6	)
Other interest-bearing liabilities	4,881		2.50			5,187		3.97			6.3
Total interest-bearing liabilities	144,410		0.39			145,990		0.65			1.1
Non-interest bearing deposits	42,043					36,081					(14.2	)
Other liabilities	12,130					19,330					59.4
Preferred shareholders' equity	3,197					3,204					0.2
Common shareholders' equity	18,714					19,465					4.0
Total liabilities and shareholders' equity	$	220,494				$	224,070				1.6
Excess of rate earned over rate paid			1.17		%			1.30		%
Net interest margin			1.26		%			1.45		%
Net interest income, fully taxable-equivalent basis			$	1,815				$	2,025
Tax-equivalent adjustment			(127		)			(51		)
Net interest income, GAAP-basis			$	1,688				$	1,974

⁽¹⁾ Rates earned/paid on interest-earning assets and interest-bearing liabilities include the impact of hedge activities associated with our asset and liability management activities where applicable.
⁽²⁾ Reflects the impact of balance sheet netting under enforceable netting agreements of approximately $31 billion and $33 billion as of September 30, 2017 and 2018, respectively. Excluding the impact of netting, the average interest rates would be approximately 0.76% and 0.92% for the nine months ended September 30, 2017 and 2018, respectively.
⁽³⁾Average rates include the impact of FX swap expense of approximately $84 million and $82 million for the nine months ended September 30, 2017 and 2018, respectively. Average rates for total interest-bearing deposits excluding the impact of FX swap expense were 0.01% and 0.16% for the nine months ended September 30, 2017 and 2018, respectively.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ASSETS UNDER CUSTODY AND ADMINISTRATION

	Quarters														% Change
(Dollars in billions)	1Q17		2Q17		3Q17		4Q17		1Q18		2Q18		3Q18		3Q18 vs. 3Q17		3Q18 vs. 2Q18
Assets Under Custody and Administration
By Product Classification:
Mutual funds	$	7,033	$	7,123	$	7,394	$	7,603	$	7,503	$	8,548	$	8,717	17.9	%	2.0	%
Collective funds, including ETFs	8,024		8,560		9,190		9,707		9,908		9,615		9,646		5.0		0.3
Pension products	5,775		5,937		6,571		6,704		6,802		6,808		6,807		3.6		—
Insurance and other products	9,001		9,417		8,955		9,105		9,071		8,896		8,826		(1.4	)	(0.8	)
Total Assets Under Custody and Administration	$	29,833	$	31,037	$	32,110	$	33,119	$	33,284	$	33,867	$	33,996	5.9		0.4
By Financial Instrument⁽¹⁾:
Equities	$	17,041	$	17,859	$	18,423	$	19,214	$	19,198	$	19,475	$	20,070	8.9		3.1
Fixed-income	9,300		9,560		9,883		10,070		10,186		10,189		10,018		1.4		(1.7	)
Short-term and other investments	3,492		3,618		3,804		3,835		3,900		4,203		3,908		2.7		(7.0	)
Total Assets Under Custody and Administration	$	29,833	$	31,037	$	32,110	$	33,119	$	33,284	$	33,867	$	33,996	5.9		0.4
By Geographic Location⁽²⁾:
North America	$	22,361	$	23,020	$	23,675	$	24,418	$	24,336	$	24,989	$	25,157	6.3		0.7
Europe/Middle East/Africa	5,979		6,464		6,806		7,028		7,211		7,134		7,094		4.2		(0.6	)
Asia/Pacific	1,493		1,553		1,629		1,673		1,737		1,744		1,745		7.1		0.1
Total Assets Under Custody and Administration	$	29,833	$	31,037	$	32,110	$	33,119	$	33,284	$	33,867	$	33,996	5.9		0.4
Assets Under Custody⁽³⁾
By Product Classification:
Mutual funds	$	6,499	$	6,577	$	6,818	$	6,998	$	6,894	$	7,950	$	8,086	18.6		1.7
Collective funds, including ETFs	6,601		7,107		7,638		8,091		8,189		7,602		7,455		(2.4	)	(1.9	)
Pension products	5,212		5,399		5,480		5,606		5,682		5,703		5,627		2.7		(1.3	)
Insurance and other products	4,193		4,279		4,304		4,325		4,281		4,160		4,132		(4.0	)	(0.7	)
Total Assets Under Custody	$	22,505	$	23,362	$	24,240	$	25,020	$	25,046	$	25,415	$	25,300	4.4		(0.5	)
By Geographic Location⁽²⁾:
North America	$	17,747	$	18,223	$	18,691	$	19,276	$	19,131	$	19,545	$	19,433	4.0		(0.6	)
Europe/Middle East/Africa	3,635		3,969		4,323		4,487		4,617		4,557		4,561		5.5		0.1
Asia/Pacific	1,123		1,170		1,226		1,257		1,298		1,313		1,306		6.5		(0.5	)
Total Assets Under Custody	$	22,505	$	23,362	$	24,240	$	25,020	$	25,046	$	25,415	$	25,300	4.4		(0.5	)

⁽¹⁾ Certain previously reported amounts have been reclassified to conform to current period presentation.
⁽²⁾ Geographic mix is based on the location at which the assets are serviced.
⁽³⁾ Assets under custody are a component of assets under custody and administration presented above.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ASSETS UNDER MANAGEMENT

	Quarters														% Change
(Dollars in billions)	1Q17		2Q17		3Q17		4Q17		1Q18		2Q18		3Q18		3Q18 vs. 3Q17		3Q18 vs. 2Q18
Assets Under Management
By Asset Class and Investment Approach:
Equity:
Active	$	77	$	82	$	95	$	95	$	94	$	92	$	96	1.1	%	4.3	%
Passive	1,482		1,512		1,545		1,650		1,576		1,575		1,693		9.6		7.5
Total Equity	1,559		1,594		1,640		1,745		1,670		1,667		1,789		9.1		7.3
Fixed-Income:
Active	69		71		73		77		79		79		80		9.6		1.3
Passive	312		327		325		337		354		358		343		5.5		(4.2	)
Total Fixed-Income	381		398		398		414		433		437		423		6.3		(3.2	)
Cash⁽¹⁾	335		334		347		330		336		333		317		(8.6	)	(4.8	)
Multi-Asset-Class Solutions:
Active	19		18		18		18		18		18		20		11.1		11.1
Passive	113		113		117		129		128		126		125		6.8		(0.8	)
Total Multi-Asset-Class Solutions	132		131		135		147		146		144		145		7.4		0.7
Alternative Investments⁽²⁾:
Active	26		27		24		23		23		22		22		(8.3	)	—
Passive	128		122		129		123		121		120		114		(11.6	)	(5.0	)
Total Alternative Investments	154		149		153		146		144		142		136		(11.1	)	(4.2	)
Total Assets Under Management	$	2,561	$	2,606	$	2,673	$	2,782	$	2,729	$	2,723	$	2,810	5.1		3.2
By Geographic Location⁽³⁾:
North America	$	1,772	$	1,802	$	1,845	$	1,931	$	1,885	$	1,897	$	1,956	6.0		3.1
Europe/Middle East/Africa	486		496		510		521		511		495		476		(6.7	)	(3.8	)
Asia/Pacific	303		308		318		330		333		331		378		18.9		14.2
Total Assets Under Management	$	2,561	$	2,606	$	2,673	$	2,782	$	2,729	$	2,723	$	2,810	5.1		3.2

⁽¹⁾ Includes both floating- and constant-net-asset-value portfolios held in commingled structures or separate accounts.
⁽²⁾ Includes real estate investment trusts, currency and commodities, including SPDR^® Gold Shares ETF and SPDR^® Long Dollar Gold Trust ETF. State Street is not the investment manager for SPDR^® Gold Shares ETF and SPDR^®Long Dollar Gold Trust ETF, but acts as marketing agent.
⁽³⁾ Geographic mix is based on client location or fund management location.

Exchange-Traded Funds⁽¹⁾
By Asset Class:
Alternative Investments	$	46	$	46	$	48	$	48	$	48	$	46	$	40	(16.7	)%	(13.0	)%
Cash	2		2		2		2		3		3		4		100.0		33.3
Equity	457		460		478		531		513		524		566		18.4		8.0
Fixed-Income	53		58		61		63		65		66		69		13.1		4.5
Total Exchange-Traded Funds	$	558	$	566	$	589	$	644	$	629	$	639	$	679	15.3		6.3

⁽¹⁾ Exchange-traded funds are a component of assets under management presented above.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO HOLDINGS BY ASSET CLASS

September 30, 2018	Ratings
(Dollars in billions, or where otherwise noted)	UST/AGY			AAA			AA			A			BBB			<BBB			NR			Book Value⁽¹⁾		Book Value (% Total)		Net Unrealized After-tax MTM Gain/(Loss) (In millions)⁽²⁾			Fixed Rate/ Floating Rate
Government & agency securities	51		%	15		%	20		%	8		%	4		%	—		%	2		%	$	29.4	33.7	%	$	(297	)	100% / 0%
Asset-backed securities	—			64			30			2			3			1			—			10.8		12.4		63			0% / 100%
Student loans	—			35			57			2			5			1			—			4.5		41.6		31
Credit cards	—			100			—			—			—			—			—			1.4		13.0		(16		)
Auto & equipment	—			73			27			—			—			—			—			0.6		5.6		—
Non-U.S. residential mortgage backed securities	—			78			14			4			2			2			—			3.0		27.8		49
Collateralized loan obligation	—			100			—			—			—			—			—			1.2		11.1		(1		)
Other	—			28			72			—			—			—			—			0.1		0.9		—
Mortgage-backed securities	99			—			—			—			1			—			—			33.5		38.4		(815		)	97% / 3%
Agency MBS	100			—			—			—			—			—			—			33.2		99.1		(833		)
Non-agency MBS	—			37			—			4			14			37			8			0.3		0.9		18
CMBS	69			31			—			—			—			—			—			3.4		3.9		(57		)	57% / 43%
Corporate bonds	—			—			16			52			32			—			—			3.9		4.5		(35		)	93% / 7%
Covered bonds	—			100			—			—			—			—			—			2.0		2.3		4			11% / 89%
Municipal bonds	—			24			70			5			—			—			1			2.6		3.0		38			100% / 0%
Clipper tax-exempt bonds/other	—			14			61			19			6			—			—			1.6		1.8		19			7% / 93%
Total Portfolio	58		%	18		%	14		%	6		%	3		%	—		%	1		%	$	87.2	100.0	%	$	(1,080	)	81% / 19%

Book Value	$	50.7		$	15.3		$	12.4		$	4.9		$	2.8		$	0.3		$	0.8		$	87.2

⁽¹⁾ Portfolio amounts are expressed at book value; book value includes the amortized cost of transferred securities at the time they were transferred.
⁽²⁾ At September 30, 2018, the after-tax unrealized MTM gain/(loss) includes after-tax unrealized loss on securities available-for-sale of $335 million, after-tax unrealized loss on securities held-to-maturity of $722 million and after-tax unrealized loss primarily related to securities previously transferred from available-for-sale to held-to-maturity of $23 million.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO NON-U.S. INVESTMENTS

September 30, 2018				Book Value
(In billions)	Book Value		Average Rating	Gov't/Agency⁽¹⁾		ABS FRMBS		ABS All Other		Corporate Bonds		Covered Bonds		Other
United Kingdom	$	3.9	AAA	$	1.2	$	1.3	$	0.6	$	0.4	$	0.4	$	—
Australia	3.2		AAA	1.4		0.8		—		0.4		0.4		0.2
Canada	2.5		AAA	2.0		—		—		0.2		0.3		—
France	2.2		AAA	1.4		—		0.4		0.2		0.2		—
Belgium	1.5		AAA	1.3		—		—		—		0.2		—
Japan	1.3		AA	1.3		—		—		—		—		—
Spain	1.3		AA	1.1		0.1		0.1		—		—		—
Italy	1.3		AAA	0.8		0.4		0.1		—		—		—
Netherlands	1.2		AAA	0.4		0.4		—		0.3		0.1		—
Austria	1.1		AAA	1.1		—		—		—		—		—
Ireland	1.0		AA	1.0		—		—		—		—		—
Germany	0.7		AAA	0.3		—		0.4		—		—		—
Finland	0.6		AAA	0.5		—		—		—		0.1		—
Sweden	0.4		AAA	—		—		—		0.2		0.2		—
Other	0.8		AAA	0.5		—		—		0.1		0.2		—
Total Non-U.S. Investments⁽²⁾	$	23.0		$	14.3	$	3.0	$	1.6	$	1.8	$	2.1	$	0.2
U.S. Investments	64.2
Total Portfolio	$	87.2

⁽¹⁾ Sovereign debt is reflected in the government / agency column.
⁽²⁾Country of collateral used except for corporates where country of issuer is used.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF NON-GAAP FINANCIAL INFORMATION
In addition to presenting State Street's financial results in conformity with U.S. generally accepted accounting principles, or GAAP, management also presents certain financial information on a non-GAAP basis. In general, our non-GAAP financial results adjust selected GAAP-basis financial results to exclude the impact of revenue and expenses outside of State Street’s normal course of business or other notable items, such as acquisition and restructuring charges, repositioning charges and gains/losses on sales. Management believes that this presentation of financial information facilitates an investor's further understanding and analysis of State Street's financial performance and trends with respect to State Street’s business operations from period to period, including providing additional insight into our underlying margin and profitability, in addition to financial information prepared and reported in conformity with GAAP.
Management may also provide additional non-GAAP measures. For example, we present capital ratios, calculated under regulatory standards scheduled to be effective in the future or other standards, that management uses in evaluating State Street’s business and activities and believes may similarly be useful to investors. Additionally, we may present revenue and expense measures on a constant currency basis to identify the significance of changes in foreign currency exchange rates (which often are variable) in period-to-period comparisons. This presentation represents the effects of applying prior period weighted average foreign currency exchange rates to current period results.
Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in conformity with GAAP.

		Quarters																			% Change						Year-to-Date						% Change
(Dollars in millions)		1Q17			2Q17			3Q17			4Q17			1Q18		2Q18			3Q18		3Q18 vs. 3Q17			3Q18 vs. 2Q18			3Q17			3Q18			YTD 3Q18 vs. YTD 3Q17
Fee Revenue⁽¹⁾:
Total fee revenue, GAAP-basis⁽²⁾		$	2,198		$	2,235		$	2,242		$	2,230		$	2,378	$	2,358		$	2,280	1.7	%		(3.3	)%		$	6,675		$	7,016		5.1	%
	Less: Gain on sale	(30		)	—			(26		)	—			—		—			—								(56		)	—
Total fee revenue, Adjusted-GAAP basis		$	2,168		$	2,235		$	2,216		$	2,230		$	2,378	$	2,358		$	2,280	2.9			(3.3	)		$	6,619		$	7,016		6.0

Total Revenue⁽¹⁾:
Total revenue, GAAP-basis		$	2,668		$	2,810		$	2,846		$	2,846		$	3,019	$	3,026		$	2,951	3.7	%		(2.5	)%		$	8,324		$	8,996		8.1	%
	Less: Gain on sale	(30		)	—			(26		)	—			—		—			—								(56		)	—
Total revenue, Adjusted-GAAP basis		$	2,638		$	2,810		$	2,820		$	2,846		$	3,019	$	3,026		$	2,951	4.6			(2.5	)		$	8,268		$	8,996		8.8

Expenses⁽¹⁾:
Total expenses, GAAP-basis		$	2,086		$	2,031		$	2,021		$	2,131		$	2,256	$	2,159		$	2,079	2.9	%		(3.7	)%		$	6,138		$	6,494		5.8	%
	Less: Acquisition and restructuring costs	(29		)	(71		)	(33		)	(133		)	—		—			—								(133		)	—
	Less: Repositioning costs	—			—			—			—			—		(77		)	—								—			(77		)
Total expenses, Adjusted-GAAP basis		$	2,057		$	1,960		$	1,988		$	1,998		$	2,256	$	2,082		$	2,079	4.6			(0.1	)		$	6,005		$	6,417		6.9

Fee Operating Leverage, GAAP-Basis:
Total fee revenue, GAAP-basis⁽²⁾		$	2,198		$	2,235		$	2,242		$	2,230		$	2,378	$	2,358		$	2,280	1.69	%		(3.31	)%		$	6,675		$	7,016		5.11	%
Total expenses, GAAP-basis		2,086			2,031			2,021			2,131			2,256		2,159			2,079		2.87			(3.71	)		6,138			6,494			5.80
Fee operating leverage, GAAP-basis																					(118	)	bps	40		bps							(69	)	bps

Fee Operating Leverage, Adjusted-GAAP Basis:
Total fee revenue, Adjusted-GAAP basis (as reconciled above)⁽²⁾		$	2,168		$	2,235		$	2,216		$	2,230		$	2,378	$	2,358		$	2,280	2.89	%		(3.31	)%		$	6,619		$	7,016		6.00	%
Total expenses, Adjusted-GAAP basis (as reconciled above)		2,057			1,960			1,988			1,998			2,256		2,082			2,079		4.58			(0.14	)		6,005			6,417			6.86
Fee operating leverage, Adjusted-GAAP Basis																					(169	)	bps	(317	)	bps							(86	)	bps

Operating Leverage, GAAP-Basis:
Total revenue, GAAP-basis		$	2,668		$	2,810		$	2,846		$	2,846		$	3,019	$	3,026		$	2,951	3.69	%		(2.48	)%		$	8,324		$	8,996		8.07	%
Total expenses, GAAP-basis		2,086			2,031			2,021			2,131			2,256		2,159			2,079		2.87			(3.71	)		6,138			6,494			5.80
Operating leverage, GAAP-basis																					82		bps	123		bps							227		bps

Operating Leverage, Adjusted-GAAP Basis:
Total revenue, Adjusted-GAAP basis (as reconciled above)		$	2,638		$	2,810		$	2,820		$	2,846		$	3,019	$	3,026		$	2,951	4.65	%		(2.48	)%		$	8,268		$	8,996		8.81	%
Total expenses, Adjusted-GAAP basis (as reconciled above)		2,057			1,960			1,988			1,998			2,256		2,082			2,079		4.58			(0.14	)		6,005			6,417			6.86
Operating leverage, Adjusted-GAAP basis																					7		bps	(234	)	bps							195		bps

⁽¹⁾ The impact of acquired operations on total revenue and fee revenue contributed approximately $71 million and $72 million for the first and second quarters of 2017, respectively. The impact of acquired operations on expenses contributed approximately $51 million and $51 million for the first and second quarters of 2017, respectively, excluding merger and integration charges and financing costs.
⁽²⁾Approximately $15 million of swap costs in 1Q18 were reclassified from processing fees and other revenue within fee revenue to net interest income to conform to current presentation. No other prior periods were revised.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF PRE-TAX MARGIN
Prior to 1Q18, management presented results on an operating-basis to both: (1) exclude the impact of revenue and expenses outside of State Street’s normal course of business, such as restructuring charges; and (2) present revenue from non-taxable sources, such as interest income from tax-exempt investment securities and processing fees and other revenue associated with tax-advantaged investments, on a fully-taxable equivalent basis.
Beginning in 1Q18 State Street presents results only on a GAAP basis, along with certain non-GAAP measures that management believes may be useful to investors. As management has previously communicated the expected impact of State Street Beacon on pre-tax margin based on historical operating-basis results, pre-tax margin has been provided on that historical operating-basis to allow investors to assess performance with respect to State Street Beacon on a consistent basis.

	Quarters																					% Change						Year-to-Date						% Change
(Dollars in millions, except where otherwise noted)	1Q17			2Q17			3Q17			4Q17			1Q18			2Q18			3Q18			3Q18 vs. 3Q17			3Q18 vs. 2Q18			3Q17			3Q18			YTD 3Q18 vs. YTD 3Q17
Total revenue, GAAP-basis	$	2,668		$	2,810		$	2,846		$	2,846		$	3,019		$	3,026		$	2,951		3.7	%		(2.5	)%		$	8,324		$	8,996		8.1	%
Tax-equivalent adjustment associated with tax advantaged investments	70			89			79			78			66			68			74			(6.3	)		8.8			238			208			(12.6	)
Tax-equivalent adjustment associated with tax exempt investment securities	43			42			42			40			21			18			12			(71.4	)		(33.3	)		127			51			(59.8	)
Impact of tax legislation	—			—			—			20			—			—			—			—			—			—			—			—
Total revenue, historical Operating-basis	2,781			2,941			2,967			2,984			3,106			3,112			3,037			2.4			(2.4	)		8,689			9,255			6.5
Provision for loan losses	(2		)	3			3			(2		)	—			2			5			66.7			150.0			4			7			75.0
Total expenses, GAAP-basis	2,086			2,031			2,021			2,131			2,256			2,159			2,079			2.9			(3.7	)		6,138			6,494			5.8
Acquisition and restructuring costs	(29		)	(71		)	(33		)	(133		)	—			—			—			(100.0	)		nm			(133		)	—			(100.0	)
Total expenses, historical Operating-basis	2,057			1,960			1,988			1,998			2,256			2,159			2,079			4.6			(3.7	)		6,005			6,494			8.1
Income before taxes, historical Operating-basis	$	726		$	978		$	976		$	988		$	850		$	951		$	953		(2.4	)		0.2			$	2,680		$	2,754		2.8
Less: Repositioning charges	—			—			—			—			—			(77		)	—			—			(100.0	)		—			(77		)	(100.0	)
Income before taxes, historical Operating-basis excluding repositioning charges	$	726		$	978		$	976		$	988		$	850		$	1,028		$	953		(2.4	)		(7.3	)		$	2,680		$	2,831		5.6

Pre-tax margin, historical Operating-basis⁽¹⁾	26.1		%	33.3		%	32.9		%	33.1		%	27.4		%	30.6		%	31.4		%	(150	)	bps	80		bps	30.8		%	29.8		%	(100	)	bps
Pre-tax margin, historical Operating-basis less repositioning charges⁽²⁾	26.1			33.3			32.9			33.1			27.4			33.0			31.4			(150	)		(160	)		30.8			30.6			(20	)

⁽¹⁾ Pre-tax margin, historical Operating-basis is calculated by dividing income before taxes, historical Operating-basis by total revenue, historical Operating-basis
⁽²⁾ Pre-tax margin, historical Operating-basis less repositioning charges is calculated by dividing income before taxes, historical Operating-basis less repositioning charges by total revenue, historical Operating-basis
^(nm) Not meaningful



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF CONSTANT CURRENCY FX IMPACTS

GAAP-Basis Quarter Comparison	Reported							Currency Translation Impact						Excluding Currency Impact						% Change Constant Currency
(Dollars in millions)	3Q17		2Q18		3Q18			3Q18 vs. 3Q17			3Q18 vs. 2Q18			3Q18 vs. 3Q17			3Q18 vs. 2Q18			3Q18 vs. 3Q17		3Q18 vs. 2Q18
Fee revenue:
Servicing fees	$	1,351	$	1,381	$	1,333		$	(7	)	$	(6	)	$	1,340		$	1,339		(0.8	)%	(3.0	)%
Management fees	419		465		474			(1		)	(2		)	475			476			13.4		2.4
Trading services	259		315		288			—			(1		)	288			289			11.2		(8.3	)
Securities finance	147		154		128			—			—			128			128			(12.9	)	(16.9	)
Processing fees and other⁽¹⁾	66		43		57			—			(1		)	57			58			(13.6	)	34.9
Total fee revenue	2,242		2,358		2,280			(8		)	(10		)	2,288			2,290			2.1		(2.9	)
Net interest income⁽¹⁾	603		659		672			(2		)	(5		)	674			677			11.8		2.7
Gains (losses) related to investment securities, net	1		9		(1		)	—			—			(1		)	(1		)	nm		nm
Total revenue	$	2,846	$	3,026	$	2,951		$	(10	)	$	(15	)	$	2,961		$	2,966		4.0		(2.0	)

Expenses:
Compensation and employee benefits	$	1,090	$	1,125	$	1,103		$	(6	)	$	(7	)	$	1,109		$	1,110		1.7		(1.3	)
Information systems and communications	296		321		332			(1		)	(1		)	333			333			12.5		3.7
Transaction processing services	215		246		236			(1		)	(1		)	237			237			10.2		(3.7	)
Occupancy	118		124		110			(1		)	(1		)	111			111			(5.9	)	(10.5	)
Acquisition and restructuring costs	33		—		—			—			—			—			—			(100.0	)	—
Other	269		343		298			(1		)	(1		)	299			299			11.2		(12.8	)
Total expenses	$	2,021	$	2,159	$	2,079		$	(10	)	$	(11	)	$	2,089		$	2,090		3.4		(3.2	)



GAAP-Basis YTD Comparison	Reported					Currency Translation Impact		Excluding Currency Impact		% Change Constant Currency
(Dollars in millions)	2017			2018		YTD 2018 vs. YTD 2017		2018		YTD 2018 vs. YTD 2017
Fee revenue:
Servicing fees	$	3,986		$	4,135	$	55	$	4,080	2.4	%
Management fees	1,198			1,411		15		1,396		16.5
Trading services	823			907		—		907		10.2
Securities finance	459			423		1		422		(8.1	)
Processing fees and other⁽¹⁾	209			140		1		139		(33.5	)
Total fee revenue	6,675			7,016		72		6,944		4.0
Net interest income⁽¹⁾	1,688			1,974		7		1,967		16.5
Gains (losses) related to investment securities, net	(39		)	6		—		6		(115.4	)
Total revenue	$	8,324		$	8,996	$	79	$	8,917	7.1

Expenses:
Compensation and employee benefits	$	3,327		$	3,477	$	40	$	3,437	3.3
Information systems and communications	866			968		5		963		11.2
Transaction processing services	619			724		5		719		16.2
Occupancy	344			354		5		349		1.5
Acquisition and restructuring costs	133			—		—		—		(100.0	)
Other	849			971		14		957		12.7
Total expenses	$	6,138		$	6,494	$	69	$	6,425	4.7

⁽¹⁾Approximately $15 million of swap costs in 1Q18 were reclassified from processing fees and other revenue within fee revenue to net interest income to conform to current presentation. No other prior periods were revised.
^nm Not meaningful



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF TANGIBLE COMMON EQUITY RATIO

The accompanying materials present capital ratios in addition to, or adjusted from, those calculated in conformity with applicable regulatory requirements. These include capital ratios based on tangible common equity, as well as capital ratios adjusted to reflect our estimate of the impact of the relevant Basel III requirements, as specified in the July 2013 final rule issued by the Board of Governors of the Federal Reserve System, referred to as the Basel III final rule. These non-regulatory and adjusted capital measures are non-GAAP financial measures. Management currently calculates the non-GAAP capital ratios presented in the news release to aid in its understanding of State Street’s capital position under a variety of standards, including currently applicable and transitioning regulatory requirements. Management believes that the use of the non-GAAP capital ratios presented in the accompanying materials similarly aids in an investor's understanding of State Street's capital position and therefore is of interest to investors.
The common equity tier 1 risk-based capital, or CET1, tier 1 risk-based capital, total risk-based capital and tier 1 leverage ratios have each been calculated in conformity with applicable regulatory requirements as of the dates that each was first publicly disclosed. The capital component, or numerator, of these ratios was calculated in conformity with the provisions of the Basel III final rule. For the periods below the total risk-weighted assets component, or denominator, used in the calculation of the CET1, tier 1 risk-based capital and total risk-based capital ratios were each calculated in conformity with the advanced approaches and standardized approach provisions of Basel III, as the case may be.
The advanced approaches-based ratios (actual and estimated) included in this presentation reflect calculations and determinations with respect to our capital and related matters, based on State Street and external data, quantitative formula, statistical models, historical correlations and assumptions, collectively referred to as “advanced systems,” in effect and used by us for those purposes as of the respective date of each ratio’s first public announcement. Significant components of these advanced systems involve the exercise of judgment by us and our regulators, and these advanced systems may not, individually or collectively, precisely represent or calculate the scenarios, circumstances, outputs or other results for which they are designed or intended. Due to the influence of changes in these advanced systems, whether resulting from changes in data inputs, regulation or regulatory supervision or interpretation, State Street-specific or market activities or experiences or other updates or factors, we expect that our advanced systems and our capital ratios calculated in conformity with the Basel III framework will change and may be volatile over time, and that those latter changes or volatility could be material as calculated and measured from period to period.
The tangible common equity, or TCE, ratio is an additional capital ratio that management believes provides context useful in understanding and assessing State Street's capital adequacy. The 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 banking 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 or other applicable requirements. Reconciliations with respect to the calculation of the TCE ratios are provided within the Reconciliation of Tangible Common Equity Ratio within this package.
The following table presents the calculation of State Street's ratios of tangible common equity to total tangible assets.
		Quarters
(Dollars in millions)		1Q17			2Q17			3Q17			4Q17			1Q18			2Q18			3Q18
Consolidated total assets		$	236,802		$	238,274		$	235,986		$	238,425		$	250,286		$	248,308		$	234,007
Less:
Goodwill		5,855			5,945			5,997			6,022			6,068			5,973			6,016
Other intangible assets		1,710			1,693			1,658			1,613			1,578			1,500			1,461
Cash balances held at central banks in excess of required reserves		59,780			56,326			51,965			56,712			62,901			64,640			51,707
Adjusted assets		169,457			174,310			176,366			174,078			179,739			176,195			174,823
Plus related deferred tax liabilities		649			651			647			479			477			465			461
Total tangible assets	A	$	170,106		$	174,961		$	177,013		$	174,557		$	180,216		$	176,660		$	175,284
Consolidated total common shareholders' equity		$	18,098		$	18,872		$	19,301		$	19,121		$	19,203		$	19,375		$	20,863
Less:
Goodwill		5,855			5,945			5,997			6,022			6,068			5,973			6,016
Other intangible assets		1,710			1,693			1,658			1,613			1,578			1,500			1,461
Adjusted equity		10,533			11,234			11,646			11,486			11,557			11,902			13,386
Plus related deferred tax liabilities		649			651			647			479			477			465			461
Total tangible common equity	B	$	11,182		$	11,885		$	12,293		$	11,965		$	12,034		$	12,367		$	13,847
Tangible common equity ratio	B/A	6.6		%	6.8		%	6.9		%	6.9		%	6.7		%	7.0		%	7.9		%

GAAP Basis:
Net income available to common shareholders		$	446		$	584		$	629		$	334		$	605		$	698		$	709
Return on tangible common equity		16.0		%	17.3		%	18.0		%	16.7		%	20.1		%	21.1		%	19.4		%

STATE STREET CORPORATION

EARNINGS RELEASE ADDENDUM

REGULATORY CAPITAL



	Quarters
	1Q17						2Q17						3Q17						4Q17						1Q18						2Q18						3Q18
(Dollars in millions)	Basel III Advanced Approaches⁽¹⁾			Basel III Standardized Approach⁽²⁾			Basel III Advanced Approaches⁽¹⁾			Basel III Standardized Approach⁽²⁾			Basel III Advanced Approaches⁽¹⁾			Basel III Standardized Approach⁽²⁾			Basel III Advanced Approaches⁽¹⁾			Basel III Standardized Approach⁽²⁾			Basel III Advanced Approaches⁽¹⁾			Basel III Standardized Approach⁽²⁾			Basel III Advanced Approaches⁽¹⁾			Basel III Standardized Approach⁽²⁾			Basel III Advanced Approaches⁽¹⁾			Basel III Standardized Approach⁽²⁾
RATIOS:
Common equity tier 1 capital	11.2		%	11.5		%	12.0		%	11.2		%	12.6		%	11.6		%	12.3		%	11.9		%	12.1		%	10.8		%	12.4		%	11.3		%	14.0		%	12.9		%
Tier 1 capital	14.4			14.7			15.1			14.2			15.8			14.5			15.5			15.0			15.4			13.7			15.7			14.3			17.8			16.4
Total capital	15.4			15.9			16.2			15.2			16.9			15.6			16.5			16.0			16.3			14.6			16.4			15.1			18.6			17.2
Tier 1 leverage	6.8			6.8			7.0			7.0			7.4			7.4			7.3			7.3			6.9			6.9			7.1			7.1			8.1			8.1

Supporting Calculations:
Common equity tier 1 capital	$	11,319		$	11,319		$	12,007		$	12,007		$	12,439		$	12,439		$	12,204		$	12,204		$	11,947		$	11,947		$	12,223		$	12,223		$	13,703		$	13,703
Total risk-weighted assets	100,843			98,494			100,265			107,069			98,997			107,580			99,156			102,683			98,512			110,477			98,502			107,740			97,547			105,825
Common equity tier 1 risk-based capital ratio	11.2		%	11.5		%	12.0		%	11.2		%	12.6		%	11.6		%	12.3		%	11.9		%	12.1		%	10.8		%	12.4		%	11.3		%	14.0		%	12.9		%

Tier 1 capital	$	14,475		$	14,475		$	15,165		$	15,165		$	15,606		$	15,606		$	15,382		$	15,382		$	15,143		$	15,143		$	15,419		$	15,419		$	17,393		$	17,393
Total risk-weighted assets	100,843			98,494			100,265			107,069			98,997			107,580			99,156			102,683			98,512			110,477			98,502			107,740			97,547			105,825
Tier 1 risk-based capital ratio	14.4		%	14.7		%	15.1		%	14.2		%	15.8		%	14.5		%	15.5		%	15.0		%	15.4		%	13.7		%	15.7		%	14.3		%	17.8		%	16.4		%

Total capital	$	15,542		$	15,617		$	16,243		$	16,314		$	16,684		$	16,758		$	16,367		$	16,435		$	16,104		$	16,173		$	16,184		$	16,257		$	18,158		$	18,228
Total risk-weighted assets	100,843			98,494			100,265			107,069			98,997			107,580			99,156			102,683			98,512			110,477			98,502			107,740			97,547			105,825
Total risk-based capital ratio	15.4		%	15.9		%	16.2		%	15.2		%	16.9		%	15.6		%	16.5		%	16.0		%	16.3		%	14.6		%	16.4		%	15.1		%	18.6		%	17.2		%

Tier 1 capital	$	14,475		$	14,475		$	15,165		$	15,165		$	15,606		$	15,606		$	15,382		$	15,382		$	15,143		$	15,143		$	15,419		$	15,419		$	17,393		$	17,393
Adjusted quarterly average assets	212,361			212,361			216,940			216,940			211,396			211,396			209,328			209,328			219,580			219,580			216,896			216,896			214,103			214,103
Tier 1 leverage ratio	6.8		%	6.8		%	7.0		%	7.0		%	7.4		%	7.4		%	7.3		%	7.3		%	6.9		%	6.9		%	7.1		%	7.1		%	8.1		%	8.1		%
⁽¹⁾CET1, tier 1 capital, total capital, and tier 1 leverage ratios for each period above were calculated in conformity with the advanced approaches provisions of the Basel III final rule.
⁽²⁾ CET1, tier 1 capital, total capital, and tier 1 leverage ratios for each period above were calculated in conformity with the standardized approach provisions of the Basel III final rule.



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF FULLY PHASED-IN CAPITAL RATIOS

Fully phased-in pro-forma estimates of common equity tier 1 capital include 100% of the accumulated other comprehensive income component of common shareholder’s equity, including accumulated other comprehensive income attributable to available-for-sale securities, cash flow hedges and defined benefit pension plans, as well as 100% of applicable deductions, including but not limited to, intangible assets net of deferred tax liabilities. Fully phased-in pro-forma estimates of tier 1 and total capital both reflect the transition of trust preferred capital securities from tier 1 capital to total capital. For both Basel III advanced and standardized approaches, fully phased-in pro-forma estimates of risk-weighted assets reflect the exclusion of intangible assets, offset by additions related to non-significant equity exposures and deferred tax assets related to temporary differences. All fully phased-in ratios are preliminary estimates, based on our interpretations of the Basel III final rule as of the date each such ratio was first announced publicly and as applied to our businesses and operations as of the date of such ratio.
The following tables reconcile our fully phased-in estimated pro-forma common equity tier 1 capital, tier 1 capital, total capital and tier 1 leverage ratios, calculated in conformity with the Basel III final rule, as of the dates indicated, to those same ratios calculated in conformity with the applicable regulatory requirements as of such dates. Effective January 1, 2018, the applicable final rules are in effect and the ratios are calculated based on fully phased-in CET1, Tier 1 and Total capital numbers. As such, beginning with 1Q18, reconciliations of ratios calculated in conformity with applicable regulatory requirements equal fully phased-in ratios and a reconciliation is no longer needed. Reconciliations of prior period ratios continue to be provided to allow for better comparison of trends.

As of December 31, 2017 (Dollars in millions)	Basel III Advanced Approaches			Phase-In Provisions			Basel III Advanced Approaches Fully Phased-In Pro-Forma Estimate			Basel III Standardized Approach			Phase-In Provisions			Basel III Standardized Approach Fully Phased-In Pro-Forma Estimate
Common equity tier 1 capital	$	12,204		$	(320	)	$	11,884		$	12,204		$	(320	)	$	11,884
Tier 1 capital	15,382			(302		)	15,080			15,382			(302		)	15,080
Total capital	16,367			(302		)	16,065			16,435			(302		)	16,133
Risk weighted assets	99,156			(42		)	99,114			102,683			(40		)	102,643
Adjusted quarterly average assets	209,328			(220		)	209,108			209,328			(220		)	209,108

Capital ratios:
Common equity tier 1 capital	12.3		%				12.0		%	11.9		%				11.6		%
Tier 1 capital	15.5						15.2			15.0						14.7
Total capital	16.5						16.2			16.0						15.7
Tier 1 leverage	7.3						7.2			7.3						7.2

As of September 30, 2017 (Dollars in millions)	Basel III Advanced Approaches			Phase-In Provisions			Basel III Advanced Approaches Fully Phased-In Pro-Forma Estimate			Basel III Standardized Approach			Phase-In Provisions			Basel III Standardized Approach Fully Phased-In Pro-Forma Estimate
Common equity tier 1 capital	$	12,439		$	(297	)	$	12,142		$	12,439		$	(297	)	$	12,142
Tier 1 capital	15,606			(268		)	15,338			15,606			(268		)	15,338
Total capital	16,684			(267		)	16,417			16,758			(268		)	16,490
Risk weighted assets	98,997			(57		)	98,940			107,580			(54		)	107,526
Adjusted quarterly average assets	211,396			(184		)	211,212			211,396			(184		)	211,212

Capital ratios:
Common equity tier 1 capital	12.6		%				12.3		%	11.6		%				11.3		%
Tier 1 capital	15.8						15.5			14.5						14.3
Total capital	16.9						16.6			15.6						15.3
Tier 1 leverage	7.4						7.3			7.4						7.3



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF FULLY PHASED-IN CAPITAL RATIOS (Continued)
As of June 30, 2017 (Dollars in millions)	Basel III Advanced Approaches			Phase-In Provisions			Basel III Advanced Approaches Fully Phased-In Pro-Forma Estimate			Basel III Standardized Approach			Phase-In Provisions			Basel III Standardized Approach Fully Phased-In Pro-Forma Estimate
Common equity tier 1 capital	$	12,007		$	(315	)	$	11,692		$	12,007		$	(315	)	$	11,692
Tier 1 capital	15,165			(277		)	14,888			15,165			(277		)	14,888
Total capital	16,243			(277		)	15,966			16,314			(277		)	16,037
Risk weighted assets	100,265			66			100,331			107,069			62			107,131
Adjusted quarterly average assets	216,940			(205		)	216,735			216,940			(205		)	216,735

Capital ratios:
Common equity tier 1 capital	12.0		%				11.7		%	11.2		%				10.9		%
Tier 1 capital	15.1						14.8			14.2						13.9
Total capital	16.2						15.9			15.2						15.0
Tier 1 leverage	7.0						6.9			7.0						6.9


As of March 31, 2017 (Dollars in millions)	Basel III Advanced Approaches			Phase-In Provisions			Basel III Advanced Approaches Fully Phased-In Pro-Forma Estimate			Basel III Standardized Approach			Phase-In Provisions			Basel III Standardized Approach Fully Phased-In Pro-Forma Estimate
Common equity tier 1 capital	$	11,319		$	(339	)	$	10,980		$	11,319		$	(339	)	$	10,980
Tier 1 capital	14,475			(299		)	14,176			14,475			(299		)	14,176
Total capital	15,542			(299		)	15,243			15,617			(299		)	15,318
Risk weighted assets	100,843			134			100,977			98,494			127			98,621
Adjusted quarterly average assets	212,361			(270		)	212,091			212,361			(270		)	212,091

Capital ratios:
Common equity tier 1 capital	11.2		%				10.9		%	11.5		%				11.1		%
Tier 1 capital	14.4						14.0			14.7						14.4
Total capital	15.4						15.1			15.9						15.5
Tier 1 leverage	6.8						6.7			6.8						6.7



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF SUPPLEMENTARY LEVERAGE RATIOS

In 2014, U.S. banking regulators issued final rules implementing a supplementary leverage ratio, or SLR, for certain bank holding companies, like State Street, and their insured depository institution subsidiaries, like State Street Bank. We refer to these final rules as the SLR final rule. Under the SLR final rule, which was implemented as of January 1, 2018, (i) State Street Bank must maintain an SLR of at least 6% to be well capitalized under the U.S. banking regulators’ Prompt Corrective Action framework and (ii) if State Street maintains an SLR of at least 5%, it is not subject to limitations on distribution and discretionary bonus payments under the SLR final rule. Beginning with reporting for March 31, 2015, State Street was required to include SLR disclosures with its other Basel disclosures.
Estimated pro forma fully phased-in SLR ratios for the periods below are preliminary estimates by State Street (in each case, fully phased-in as of January 1, 2018, as per the phase-in requirements of the SLR final rule), calculated based on our interpretations of the SLR final rule as of October 23, 2017 and as applied to our businesses and operations for the periods below.
The following tables reconcile our estimated pro forma fully-phased in SLR ratios in conformity with the SLR final rule, as described, to our SLR ratios calculated in conformity with applicable regulatory requirements as of the dates indicated.

		State Street			State Street Bank
As of September 30, 2018 (Dollars in millions)		Fully Phased-In SLR			Fully Phased-In SLR
Tier 1 Capital	A	$	17,393		$	19,011
On-and off-balance sheet leverage exposure		253,845			250,933
Less: regulatory deductions		(7,210		)	(6,770		)
Total assets for SLR	B	246,635			244,163
Supplementary Leverage Ratio	A/B	7.1		%	7.8		%


As of June 30, 2018 (Dollars in millions)		State Street			State Street Bank
As of June 30, 2018 (Dollars in millions)		Fully Phased-In SLR			Fully Phased-In SLR
Tier 1 Capital	C	$	15,419		$	16,795
On-and off-balance sheet leverage exposure		257,354			254,588
Less: regulatory deductions		(7,194		)	(6,754		)
Total assets for SLR	D	250,160			247,834
Supplementary Leverage Ratio	C/D	6.2		%	6.8		%


As of March 31, 2018 (Dollars in millions)		State Street			State Street Bank
As of March 31, 2018 (Dollars in millions)		Fully Phased-In SLR			Fully Phased-In SLR
Tier 1 Capital	E	$	15,146		$	16,296
On-and off-balance sheet leverage exposure		259,650			256,593
Less: regulatory deductions		(7,288		)	(6,860		)
Total assets for SLR	F	252,362			249,733
Supplementary Leverage Ratio	E/F	6.0		%	6.5		%



STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF SUPPLEMENTARY LEVERAGE RATIOS (Continued)

As of December 31, 2017 (Dollars in millions)		State Street						State Street Bank
As of December 31, 2017 (Dollars in millions)		Transitional SLR			Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	G	$	15,382		$	15,080		$	16,531		$	16,240
On-and off-balance sheet leverage exposure		243,958			243,958			240,373			240,373
Less: regulatory deductions		(6,972		)	(7,250		)	(6,583		)	(6,854		)
Total assets for SLR	H	236,986			236,708			233,790			233,519
Supplementary Leverage Ratio	G/H	6.5		%	6.4		%	7.1		%	7.0		%

As of September 30, 2017 (Dollars in millions)		State Street						State Street Bank
As of September 30, 2017 (Dollars in millions)		Transitional SLR			Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	I	$	15,606		$	15,338		$	16,323		$	16,067
On-and off-balance sheet leverage exposure		247,527			247,527			244,114			244,114
Less: regulatory deductions		(6,891		)	(7,161		)	(6,535		)	(6,795		)
Total assets for SLR	J	240,636			240,366			237,579			237,319
Supplementary Leverage Ratio	I/J	6.5		%	6.4		%	6.9		%	6.8		%


As of June 30, 2017 (Dollars in millions)		State Street						State Street Bank
As of June 30, 2017 (Dollars in millions)		Transitional SLR			Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	K	$	15,165		$	14,888		$	16,002		$	15,738
On-and off-balance sheet leverage exposure		250,543			250,543			247,156			247,156
Less: regulatory deductions		(6,633		)	(6,838		)	(6,237		)	(6,434		)
Total assets for SLR	L	243,910			243,705			240,919			240,722
Supplementary Leverage Ratio	K/L	6.2		%	6.1		%	6.6		%	6.5		%


As of March 31, 2017 (Dollars in millions)		State Street						State Street Bank
As of March 31, 2017 (Dollars in millions)		Transitional SLR			Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	M	$	14,475		$	14,176		$	15,492		$	15,206
On-and off-balance sheet leverage exposure		244,964			244,964			241,563			241,563
Less: regulatory deductions		(6,818		)	(7,087		)	(6,422		)	(6,683		)
Total assets for SLR	N	238,146			237,877			235,141			234,880
Supplementary Leverage Ratio	M/N	6.1		%	6.0		%	6.6		%	6.5		%

Third Quarter 2018 Financial Highlights October 19, 2018 (NYSE: STT)

Preface and Forward-looking Statements This presentation includes certain highlights of, and also material supplemental to, State Street Corporation’s news release announcing its third quarter 2018 financial results. That news release contains a more detailed discussion of many of the matters described in this presentation and is accompanied by detailed financial tables. This presentation is designed to be reviewed together with that news release, which is available on State Street’s website, at http://investors.statestreet.com, and is incorporated herein by reference. This presentation (and the conference call accompanying it) contains forward-looking statements as defined by United States securities laws. These statements are not guarantees of future performance, are inherently uncertain, are based on assumptions that are difficult to predict and have a number of risks and uncertainties. The forward-looking statements in this presentation speak only as of the time this presentation is first furnished to the SEC on a Current Report on Form 8-K, and State Street does not undertake efforts to revise forward-looking statements. See “Forward-looking statements” in the Appendix for more information, including a description of certain factors that could affect future results and outcomes. Certain financial information in this presentation is presented on both a GAAP and an adjusted (adjusted-GAAP) basis. Adjusted-GAAP basis presentations are non-GAAP presentations. Refer to the Appendix for explanations of our non-GAAP financial measures and to the Addendum for reconciliations of our non-GAAP financial information. 2

3Q18 Highlights All comparisons are to prior year periods unless noted otherwise • Growth in 3Q18 AUCA and AUM resulting from market appreciation and new business wins Growing • 3Q18 new servicing business wins of ~$300B, with ~$465B of new business yet to be Our Core installed, and new business pipeline remains strong1 Franchise • Best Fund Administrator (STT) and Order Management System (CRD)2 • Best ETF Service Provider in the Americas, Asia-Pacific and Europe3 • Investing in the future while reducing legacy costs Advancing − Continuing to deliver additional product functionality and speed through digitization Our Digital − Beacon 3Q18 net savings of ~$65M; expect FY2018 savings of ~$200M Leadership − Charles River Development (CRD) acquisition positions State Street as a leading provider of investment software, and enables the industry’s first ever front-to-back office servicing solutionA • Revenue growth of 4% reflecting continued strong net interest income in light of a previously announced client transition and challenging industry conditionsB Active Expense • Controlled expense growth of 3% reflecting continued business investments offset by B Management active expense management C and Strong − Flat sequential underlying expenses Returns − Cost discipline generated positive operating leverage of 0.8%pts • Pre-tax margin of 29.4%, up 0.5%pts • EPS growth of 13% and ROE improved 1.0%pt to 14.0% A Offered by a single provider B Effects of the new revenue recognition standard (ASU 2014-09) contributed $70M in 3Q18 to each of Total fee revenue and Total expenses. C Excluding $77M of repositioning costs in 2Q18, expenses were flat on a sequential basis (2Q18 to 3Q18). This presentation of expenses is a non-GAAP presentation. C Please refer to the addendum for a reconciliation of non-GAAP measures. Refer to the Appendix included with this presentation for endnotes 1 to 7. 3

Summary of 3Q18 Results Quarters % ∆ ($M, except EPS data, or where otherwise noted) 3Q18 2Q18 3Q17 3Q17 2Q18 Revenue: Servicing fees $1,333 $1,381 $1,351 (1)% (4)% Management feesA 474 465 419 13 2 Trading servicesA 288 315 259 11 (9) Securities finance 128 154 147 (13) (17) Processing fees and other 57 43 66 (14) 33 Total fee revenueA 2,280 2,358 2,242 2 (3) Notable Items Net interest income 672 659 603 11 2 Pre-tax impact 3Q18 2Q18 3Q17 Gains (losses) related to investment securities, net (1) 9 1 nm nm increase (decrease) Total revenue $2,951 $3,026 $2,846 4% (3)% Revenue: Gains on sale of a Provision for loan losses 5 2 3 67 nm --26 businessC Expenses: Expenses: Compensation and employee benefitsB 1,103 1,125 1,090 1 (2) Compensation and - (61) - Information systems and communications 332 321 296 12 3 employee benefitsB Transaction processing servicesA 236 246 215 10 (4) OccupancyB - (16) - OccupancyB 110 124 118 (7) (11) Acquisition and Acquisition and restructuring costs - - 33 nm nm - - (33) restructuring costs OtherA 298 343 269 11 (13) Total expensesA $2,079 $2,159 $2,021 3% (4)% Total EPS impact: - $(0.17) - Income before income tax expense $867 $865 $822 6% - Income tax expense (benefit) 102 131 137 (26) (22) Net income $765 $734 $685 12% 4% Dividends on preferred stock (55) (36) (55) - (53) Net income available to common shareholders $709 $698 $629 13% 2% Diluted earnings per share $1.87 $1.88 $1.66 13% (1)% Return on average common equity 14.0% 14.7% 13.0% 1.0%pts (0.7)%pts A Effects of the new revenue recognition standard (ASU 2014-09) increased 3Q18 Total fee revenue and Total expenses by $70M each. Relative to 3Q17, the new revenue A recognition standard contributed 3% to both total fee revenue growth and total expense growth, and flat to 2Q18. The revenue impact was $50M in Management fees, $12M A in Trading services, and $8M across other revenue line items. The expense impact was $18M in Transaction processing, $38M in Other expenses, and $14M across other A expense line items. B 2Q18 reflects repositioning costs of $77M ($61M in Compensation and employee benefits and $16M in Occupancy) related to organizational realignment and B management delayering. C 3Q17 gains on sale of a business related to the pre-tax gain associated with the sale of an equity trading platform. 4

Earnings growth and return on equity driven by solid net interest income growth and active expense management Diluted EPS ROE ($) (%) +24% +1.9%pts +1.0%pts 5.38 14.7 14.0 13.8 13.0 12.8 11.9 +13% 4.35 1.88 1.87 1.66 1.62 6.9 0.89 3Q174Q17 1Q18 2Q18 3Q18 2017 2018 3Q17 4Q17 1Q18 2Q18 3Q18 2017 2018 YTD YTD YTD YTD Financial Highlights 3Q18 compared to 3Q17 2018YTD compared to 2017YTD EPS Growth of 13% Growth of 24% ROE Improved 1.0%pt Improved 1.9%pts Operating leverage Positive operating leverage of 0.8%pts Positive operating leverage of 2.3%pts Fee operating leverage Fee operating leverage of (1.2)%pts Fee operating leverage of (0.7)%pts Pre-tax margin Pre-tax margin of 29.4% increased 0.5%pts Pre-tax margin of 27.7% increased 1.5%pts 5

AUCA & AUM growth driven by equity market appreciation and new business wins Assets Under Custody Assets Under and Administration (AUCA)A Management (AUM)A ($T, as of period-end) ($B, as of period-end) +6% +5% 33.9 34.0 2,810 32.1 33.1 33.3 2,673 2,782 2,729 2,723 3Q174Q17 1Q18 2Q18 3Q18 3Q17 4Q17 1Q18 2Q18 3Q18 • 6% increase from 3Q17 mainly due to: • 5% increase from 3Q17 primarily reflects: − Growth from market appreciation and large client − Growth from market appreciation and ETF inflows, installations, partially offset by a previously partially offset by cash and institutional outflows announced client transition • 3% increase from 2Q18 largely driven by: • Flat from 2Q18 reflecting: − Growth from market appreciation, ETF inflows and − Growth from market appreciation offset by client institutional wins, partially offset by cash outflows outflows and a previously announced client transition A Changes to AUCA and AUM also reflect FX translation. Please refer to endnote 1 for additional details. 6

Fee revenue growth supported by equity market appreciation and trading activity Fee Revenue 3Q18 vs 3Q17 ($M) Fee revenue growth primarily driven by higher +2%A management fees, trading services and revenue YoY recognition, partially offset by lower servicing fees 2,378 2,358 2,280 % ∆ 2,242 2,230 • Servicing fees decreased mainly due to a previously announced client transition, and challenging industry conditions, partially offset by stronger new business wins 1,381 (1)% and market appreciation 1,351 1,333 • Management feesA increased primarily driven by higher equity market levels and revenue recognition • Trading servicesA increased largely driven by higher FX 465 474 13% 419 client volumes 11% 259 315 288 (13)% • Securities finance decreased reflecting balance sheet 147 154 128 66 43 57 (14)% optimization efforts 3Q174Q17 1Q18 2Q18 3Q18 • Processing fees and other decreased largely reflecting a 3Q17 pre-tax gain associated with the sale of an equity trading platform, partially offset by higher software fees • Unfavorable currency translation negatively impacted Total fee revenue by $8M in 3Q18 compared to 3Q17 • 3Q18 fee revenue included $70M attributable to the new revenue recognition standard Servicing fees Management fees Trading services Securities finance revenue Processing fees and other A Effects of the new revenue recognition standard (ASU 2014-09) increased 3Q18 Total fee revenue by $70M. The revenue impact was $50M in Management fees, $12M A in Trading services, and $8M across other revenue line items. 7

Continued NII and NIM expansion driven by higher U.S. interest rates and disciplined liability pricing A NII & NIM 3Q18 vs 3Q17 (NII $M, NIM %) NII +11% NIM (FTE) +13bps • NII increased primarily due to higher U.S. interest rates, disciplined liability pricing and increased client B 659 672 603 616 643 engagement across cash products, partially offset by a mix shift to HQLA 1.46 1.48 1.40 1.35 1.38 • NIM increased mainly driven by higher U.S. interest rates, 3Q17 4Q17 1Q18 2Q18 3Q18 disciplined liability pricing, and a smaller interest earning asset base NII B YoY FTE 645 656 664 677 684 +6% Average Interest-Earning Assets & Deposits 3Q18 vs 3Q17 ($B) 3Q17 4Q17 1Q18 2Q18 3Q18 • Interest earning assets reduction primarily related to Total assets 218 216 227 224 221 client deposit volatility Interest-earning 190 188 193 186 183 • Total deposits for 3Q18 were approximately 60% USD, assets 20% EUR, 10% GBP and 10% in other currencies Total deposits 162 161 165 163 160 A NII is presented on a GAAP-basis; NIM is presented on an FTE-basis. Please refer to the Addendum for reconciliations of our FTE-basis presentation. B ~$15M of swap costs in 1Q18 were reclassified from Processing fees and other revenue within fee revenue to Net interest income to conform to current presentation. No B other prior periods were revised. 8

Actively managing expenses while prudently investing for the future Expenses 3Q18 vs 3Q17 ($M) A +3% Expenses increased primarily due investments and B revenue recognition, partially offset by savings from 2,256 C YoY 2,131 2,159 % ∆ 2,021 2,079 Beacon and tighter expense control • Compensation and employee benefits increased primarily driven by higher investments to support new 1,125 1% 1,090 1,103 business and annual merit increases, partially offset by savings from Beacon and contractor savings 321 • Information systems and communications increased 296 332 12% mainly due to Beacon-related investments and technology 215 246 236 10% 124 (7)% infrastructure enhancements 118 33 110 269 343 298 11% • Transaction processingA increased primarily reflecting 3Q17 4Q17 1Q18 2Q18 3Q18 revenue recognition, partially offset by lower sub-custody costs Restructuring and repositioning costsC 33 133 - 77 - • Occupancy decreased largely reflecting advancement of our footprint optimization efforts A • Favorable currency translation positively impacted Total • Other increased mainly due to revenue recognition offset expenses by $10M in 3Q18 compared to 3Q17 by lower travel expenses • 3Q18 expenses included $70M attributable to the new revenue recognition standard Compensation and Information systems Transaction Acquisition and Occupancy Other employee benefits and communications processing restructuring costs A Effects of the new revenue recognition standard (ASU 2014-09) increased 3Q18 Total expenses by $70M. The expense impact was $18M in Transaction processing, A $38M in Other expenses, and $14M across other expense line items. B 1Q18 included $148M of seasonal deferred incentive compensation expense for retirement-eligible employees and payroll taxes. C 2Q18 reflects repositioning costs of $77M ($61M in Compensation and employee benefits and $16M in Occupancy) related to organizational realignment and C management delayering. 9

Continue to invest for the future while reducing legacy costs Beacon Net Savings Beacon Investments and Savings Highlights ($M) 2018 YTD 3Q18 Savings YTD ~% • Achieved 3Q18 Beacon net savings of ~$65M Digitization & 42 116 50% - On track to complete Beacon by early-2019, more than 18 Footprint Optimization months ahead of our initial target IT Transformation 17 48 20% • Expect to achieve FY2018 total net savings of ~$200M, exceeding initial guidance of $150M Corporate & SSGA 24 70 30% Investments • Enhanced client servicing tools and technology for improved YoY ∆ in gross 83 234 100% speed and functionality Beacon savings • Beginning to deploy robotics in 60% of our processing areas to YoY ∆ in Beacon 17 51 reduce manual activity investment • Bringing into production Cognitive and Machine learning to YoY net ~65 ~180 improve straight-through-processing, moving from human Beacon savings verification of signatures and input of trades to machine based Additional Net Savings Building on Our Beacon Success • Additional cost savings initiatives in 3Q18 have also demonstrated our commitment to actively manage expenses including: - Contractor vendor management saves of ~$20M reflected in compensation & benefits Additional - Renegotiation of sub-custodian spend worth ~$10M reflected in transaction processing $40M in total - Further management of discretionary spend, including T&E worth ~$10M reflected in other expenses savings - First wave of management delayering actioned, with savings scaling quickly by year end • While controlling expenses, we continue to invest in key areas, including our front office trading business, data management platforms, and our ETF asset management business 10

Investment Portfolio & Capital Position Highlights Investment Portfolio Highlights Quarter-End Capital Positions ($B, as of quarter-end) (%, Fully phased-in as of period-end) Capital Ratios4,5,6,7 14.0% $97.5B 12.0% 12.1% 12.4% $85.6B $87.1B $87.2B 12.9% 39% 11.6% 11.3% 24% 23% 10.8% 8.1% 30% 7.2% 6.9% 7.1% 7.1% 6.4% 6.0% 6.2% 61% 70% 76% 77% 4Q17 1Q18 2Q18 3Q18 Tier 1 Leverage SLR Standardized CET1 Advanced CET1 4Q17 1Q18 2Q18 3Q18 • Higher 3Q18 capital ratios primarily driven by $1.15B common and $500M preferred stock offerings to finance Non-HQLA HQLA the acquisition of CRD − Capital levels post-CRD closing are expected to return to prior recent historical levels Duration: 3.3 years in 3Q18 − Intend to resume common stock repurchases beginning in 1Q19 of $300M per quarter through 2Q19 Refer to the Appendix included with this presentation for endnotes 1 to 7. 11

Summary All comparisons are to prior year periods unless noted otherwise 3Q18 and 2018YTD results reflect a strong focus on disciplined expense management • YTD EPS growth of 24% and ROE improved 1.9%pts to 13.8% • Solid overall performance: – Announced new servicing business wins of ~$300B in 3Q18, with a total of ~$1.8T YTD1 – YTD fee revenue growth of 5%A driven by market appreciation, strong trading activity and revenue recognition, in light of challenging industry conditions – YTD NII growth of 17% driven by higher U.S. interest rates and disciplined liability pricing, driving positive operating leverage of 2.3%pts – YTD pre-tax margin at 27.7%, up 1.5%pts • Investing in the future while reducing legacy costs – Flat sequential underlying expense growthdemonstrating commitment to calibrate to the current revenue environment and keep 2H18 underlying expenses flat to 1H18B,C – Beacon net savings of ~$65M in 3Q18 and ~$180M YTD; expect ~$200M in savings for FY2018; Building on the success of Beacon, implemented additional cost control initiatives with immediate 3Q18 results – Continuing to invest in critical client technology to drive speed and service differentiation – Charles River Development acquisition positions State Street as a leading provider of investment software, and enables the industry’s first ever front-to-back office servicing solutionD A Effects of the new revenue recognition standard (ASU 2014-09) increased 3Q18 Total fee revenue and Total expenses by ~$70M each. Relative to 3Q17, the new revenue A recognition standard contributed 3% to both total fee revenue growth and total expense growth. B Excluding $77M of repositioning costs in 2Q18, expenses were flat on a sequential basis (2Q18 to 3Q18). This presentation of expenses is a non-GAAP presentation. B Please refer to the addendum for a reconciliation of non-GAAP measures. C Intention to keep 2H18 underlying expenses flat to 1H18 underlying expenses excludes 1Q18 seasonal deferred incentive compensation expense for retirement-eligible C employees and payroll taxes of $148M and 2Q18 repositioning costs of $77M. This presentation of expenses is a non-GAAP presentation. Please refer to the addendum for C an explanation of non-GAAP measures. D Offered by a single provider 12 Refer to the Appendix included with this presentation for endnotes 1 to 7.

Appendix Summary of 2018YTD Results 14 3Q18 vs 2Q18 Variances for Total Fee 15 – 17 Revenue, NII and Total Expenses Slide Endnotes 18 Forward-looking Statements 19 Non-GAAP Measures 20 Definitions 21 13

Summary of 2018YTD Results Quarters2018 Quarters2017 1Q18 v 2Q18 v 3Q18 v 2018YTD v ($M, except EPS data, or where otherwise noted) 1Q18 2Q18 3Q18YTD 1Q17 2Q17 3Q17 YTD 1Q17 % ∆ 2Q17 % ∆ 3Q17 % ∆ 2017YTD % ∆ Revenue: Servicing fees $1,421 $1,381 $1,333 $4,135 $1,296 $1,339 $1,351 $3,986 10% 3% (1)% 4% Management feesA 472 465 474 1,411 382 397 419 1,198 24 17 13 18 Trading servicesA 304 315 288 907 275 289 259 823 11 9 11 10 Securities finance 141 154 128 423 133 179 147 459 6 (14) (13) (8) Processing fees and otherB 40 43 57 140 112 31 66 209 (64) 39 (14) (33) Total fee revenueA 2,378 2,358 2,280 7,016 2,198 2,235 2,242 6,675 8 6 2 5 Net interest incomeB 643 659 672 1,974 510 575 603 1,688 26 15 11 17 Gains (losses) related to investment securities, net (2) 9 (1) 6 (40) - 1 (39) (95) - nm nm Total revenue $3,019 $3,026 $2,951 $8,996 $2,668 $2,810 $2,846 $8,324 13% 8% 4% 8% Provision for loan losses - 2 5 7 (2) 3 3 4 nm (33) 67 75 Expenses: Compensation and employee benefitsC 1,249 1,125 1,103 3,477 1,166 1,071 1,090 3,327 7 5 1 5 Information systems and communications 315 321 332 968 287 283 296 866 10 13 12 12 Transaction processing servicesA 242 246 236 724 197 207 215 619 23 19 10 17 OccupancyC 120 124 110 354 110 116 118 344 9 7 (7) 3 Acquisition and restructuring costs - - - - 29 71 33 133 nm nm nm nm OtherA 330 343 298 971 297 283 269 849 11 21 11 14 Total expensesA $2,256 $2,159 $2,079 $6,494 $2,086 $2,031 $2,021 $6,138 8% 6% 3% 6% Income before income tax expense $763 $865 $867 $2,495 $584 $776 $822 $2,182 31% 12% 6% 14% Income tax expense (benefit) 102 131 102 335 82 156 137 375 24 (16) (26) (11) Net income $661 $734 $765 $2,160 $502 $620 $685 $1,807 32% 18% 12% 20% Dividends on preferred stock (55) (36) (55) (146) (55) (36) (55) (146) - - - - Net income available to common shareholders $605 $698 $709 $2,012 $446 $584 $629 $1,659 36% 20% 13% 21% Diluted earnings per share $1.62 $1.88 $1.87 $5.38 $1.15 $1.53 $1.66 $4.35 41% 23% 13% 24% Return on average common equity 12.8% 14.7% 14.0% 13.8% 9.9% 12.6% 13.0% 11.9% 2.9%pts 2.1%pts 1.0%pts 1.9%pts A Effects of the new revenue recognition standard (ASU 2014-09) increased 2018YTD Total fee revenue and Total expenses by $205M each. Relative to 2017YTD, the new A revenue recognition standard contributed 3% to both total fee revenue growth and expense growth. The revenue impact was $140M in Management fees, $47M in A Trading services, and $18M across other revenue line items. The expense impact was $48M in Transaction processing, $128M in Other expenses, and $29M across A other expense line items. B ~$15M of swap costs in 1Q18 were reclassified from Processing fees and other revenue within fee revenue to Net interest income to conform to current presentation. No B other prior periods were revised. C 2Q18 repositioning costs of $77M are reflected in Compensation and employee benefits ($61M) and Occupancy ($16M). 14

Decline in fee revenue driven by 2Q18 seasonality and a previously announced client transition Fee Revenue 3Q18 vs 2Q18 ($M) Muted fee revenue in light of modest market returns -3%A and lower client activity, as well as 2Q18 seasonal 2,378 2,358 QoQ impact 2,242 2,230 2,280 % ∆ • Servicing fees decreased primarily due to a previously announced client transition and lower client activity 1,381 A 1,351 1,333 (4)% • Management fees increased largely reflecting higher equity market levels • Trading servicesA decreased primarily driven by seasonally lower FX client volumes and lower volatility 465 474 2% 419 • Securities finance decreased mainly driven by 2Q18 (9)% 259 315 288 seasonality (17)% 147 154 128 66 43 57 33% • Processing fees and other increased largely driven by 3Q17 4Q17 1Q18 2Q18 3Q18 higher software fees • Unfavorable currency translation negatively impacted Total fee revenue by $10M in 3Q18 compared to 2Q18 • 3Q18 fee revenue included $70M attributable to the new revenue recognition standard Servicing fees Management fees Trading services Securities finance revenue Processing fees and other A Effects of the new revenue recognition standard (ASU 2014-09) increased Total fee revenue in 1Q18 by $65M, 2Q18 by $70M, and 3Q18 by $70M. 15

Continued NII and NIM growth driven by higher U.S. interest rates and disciplined liability pricing A NII & NIM 3Q18 vs 2Q18 (NII $M, NIM %) NII +2% NIM (FTE) +2bps • NII increased primarily due to higher U.S. interest rates and disciplined liability pricing B 659 672 603 616 643 1.46 1.48 1.40 1.35 1.38 • NIM increased driven by higher U.S. interest rates, disciplined liability pricing, and a smaller interest earning asset base 3Q17 4Q171Q18 2Q18 3Q18 NII B QoQ FTE 645 656 664 677 684 +1% Average Interest-Earning Assets & Deposits 3Q18 vs 2Q18 ($B) 3Q17 4Q17 1Q18 2Q18 3Q18 • Interest earning assets reduction primarily due to Total assets 218 216 227 224 221 deposit volatility Interest-earning 190 188 193 186 183 • Total deposits for 3Q18 were approximately 60% USD, assets 20% EUR, 10% GBP and 10% in other currencies Total deposits 162 161 165 163 160 A NII is presented on a GAAP-basis; NIM is presented on an FTE-basis. Please refer to the Addendum for reconciliations of our FTE-basis presentation. B ~$15M of swap costs in 1Q18 were reclassified from Processing fees and other revenue within fee revenue to Net interest income to conform to current presentation. No B other prior periods were revised. 16

Continued expense discipline calibrated to the current revenue environment Expenses 3Q18 vs 2Q18 ($M) A -4% Active expense management resulted in flat underlying B D 2,256 C QoQ expenses 2,131 2,159 2,021 2,079 % ∆ • Compensation and employee benefits decreased primarily due to the 2Q18 repositioning costs and savings 1,125 from Beacon, partially offset by lower prior period 1,090 1,103 (2)% incentive compensation and continued investments • Information systems and communications increased 321 296 332 3% mainly due to technology infrastructure enhancements 246 215 236 (4)% • Transaction ProcessingA decreased mainly reflecting 118 124 110 (11)% 33 lower sub-custody costs 269 343 298 (13)% 3Q17 4Q17 1Q18 2Q18 3Q18 • Occupancy decreased primarily reflecting the 2Q18 repositioning costs Restructuring and repositioning costsC • OtherA decreased largely reflecting lower professional 33 133 - 77 - fees and travel expenses • Favorable currency translation positively impacted Total expenses by $11M in 3Q18 compared to 2Q18 • 3Q18 expenses included $70M attributable to the new revenue recognition standard Compensation and Information systems Transaction Acquisition and Occupancy Other employee benefits and communications processing restructuring costs A Effects of the new revenue recognition standard (ASU 2014-09) increased Total expenses in 1Q18 by $65M, 2Q18 by $70M, and 3Q18 by $70M. B 1Q18 included $148M of seasonal deferred incentive compensation expense for retirement-eligible employees and payroll taxes. C 2Q18 repositioning costs of $77M are reflected in Compensation and employee benefits ($61M) and Occupancy ($16M) within our financial statements included C in the Addendum. D Sequential expense growth comparison excludes 2Q18 repositioning costs of $77M. 17

Slide Endnotes 1 New asset servicing mandates and servicing assets remaining to be installed in future periods exclude new business which has been contracted except when the client has not yet provided permission to publicly disclose and the new business is not yet installed. These excluded assets, which from time to time may be significant, will be included in new asset servicing mandates and reflected in servicing assets remaining to be installed in the period in which the client provides its permission. Newly announced servicing asset mandates for the first quarter of 2018 include a significant amount of assets contracted in the fourth quarter of 2017 for which we received client consent to disclose in the first quarter of 2018. Servicing mandates and servicing assets remaining to be installed in future periods are presented on a gross basis; therefore, also do not include the impact of clients who have notified us during the period of their intent to terminate or reduce their relationship with State Street, which from time to time be significant. New business in assets to be serviced is reflected in our AUCA after we begin servicing the assets, and new business in assets to be managed is reflected in our AUM after we begin managing the assets. As such, only a portion of any new asset servicing and asset management mandates may be reflected in our AUCA and AUM as of September 30, 2018. Distribution fees from the SPDR® Gold ETF and the SPDR® Long Dollar Gold Trust ETF are recorded in brokerage and other fee revenue and not in management fee revenue. 2 Source: FundIntelligence Mutual Fund Service and Technology Awards 2018; State Street won Best Fund Administrator over $100B and Charles River Development won Best Order Management System. 3 Source: exchangetradedfunds.com Global ETF Awards 2018 4 Unless otherwise noted, all capital ratios referenced on this slide and elsewhere in this presentation refer to State Street Corporation, or State Street, and not State Street Bank and Trust Company, or State Street Bank. The lower of capital ratios calculated under the Basel III advanced approaches and under the Basel III standardized approach are applied in the assessment of our capital adequacy for regulatory purposes. Refer to the addendum included with this presentation for a further description of these ratios and for reconciliations applicable to State Street’s fully phased-in Basel III ratios. September 30, 2018 capital ratios are presented as of quarter-end and are preliminary estimates. 5 The advanced approaches-based ratios (actual and estimated) included in this presentation reflect calculations and determinations with respect to our capital and related matters, based on State Street and external data, quantitative formulae, statistical models, historical correlations and assumptions, collectively referred to as “advanced systems.” Refer to the addendum included with this presentation for a description of the advanced approaches and a discussion of related risks. Effective January 1, 2018, the applicable final rules are in effect and the ratios presented are calculated based on fully phased-in CET1, Tier 1 and total capital numbers. 6 Estimated pro-forma fully phased-in ratios as of September 30, 2017 and December 31, 2017 reflect capital and total risk-weighted assets calculated under the Basel III final rule. Refer to the addendum included with this presentation for reconciliations of these estimated pro-forma fully phased-in ratios to our capital ratios calculated under the then applicable regulatory requirements. Effective January 1, 2018, the applicable final rules are in effect and the ratios presented are calculated based on fully phased-in CET1, Tier 1 and total capital numbers. 7 Estimated pro-forma fully phased-in SLRs as of September 30, 2017 and December 31, 2017 (fully phased-in as of January 1, 2018, as per the phase-in requirements of the SLR final rule) are preliminary estimates as calculated under the SLR final rule. Refer to the Addendum included with this presentation for reconciliations of these estimated pro-forma fully phased-in SLRs to our SLRs under the then applicable regulatory requirements. Effective January 1, 2018, the applicable final rules are in effect and the ratios presented are calculated based on fully phased-in CET1, Tier 1 and total capital numbers. 18

Forward-looking Statements This presentation (and the conference call referenced herein) contains forward-looking statements within the meaning of United States securities laws, including statements about our goals and expectations regarding our business, financial and capital condition, results of operations, strategies, the financial and market outlook, dividend and stock purchase programs, 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 “outlook,” “expect,” "priority," “objective,” “intend,” “plan,” “forecast,” “believe,” “anticipate,” “estimate,” “seek,” “may,” “will,” “trend,” “target,” “strategy” 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 October 19, 2018. Important factors that may affect future results and outcomes include, but are not limited to: the financial strength of the counterparties with which we or our clients do business and to which we have investment, credit or financial exposures as a result of our acting as agent for our clients, including as asset manager; increases in the volatility of, or declines in the level of, our NII, changes in the composition or valuation of the assets recorded in our consolidated statement of condition (and our ability to measure the fair value of investment securities) and changes in the manner in which we fund those assets; the liquidity of the U.S. and international securities markets, particularly the markets for fixed-income securities and inter-bank credits; the liquidity of the assets on our balance sheet and changes or volatility in the sources of such funding, particularly the deposits of our clients; and demands upon our liquidity, including the liquidity demands and requirements of our clients; the level and volatility of interest rates, the valuation of the U.S. dollar relative to other currencies in which we record revenue or accrue expenses and the performance and volatility of securities, credit, currency and other markets in the U.S. and internationally; and the impact of monetary and fiscal policy in the U.S. and internationally on prevailing rates of interest and currency exchange rates in the markets in which we provide services to our clients; 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 such securities and the recognition of an impairment loss in our consolidated statement of income; our ability to attract deposits and other low-cost, short-term funding; our ability to manage the level and pricing of such deposits and the relative portion of our deposits that are determined to be operational under regulatory guidelines; and our ability to deploy deposits in a profitable manner consistent with our liquidity needs, regulatory requirements and risk profile; the manner and timing with which the Federal Reserve and other U.S. and foreign regulators implement or reevaluate the regulatory framework applicable to our operations (as well as changes to that framework), including implementation or modification of the Dodd-Frank Act and related stress testing and resolution planning requirements, implementation of international standards applicable to financial institutions, such as those proposed by the Basel Committee and European legislation (such as the AIFMD, UCITS, the Money Market Funds Regulation and MiFID II / MiFIR); among other consequences, these regulatory changes impact the levels of regulatory capital and liquidity we must maintain, acceptable levels of credit exposure to third parties, margin requirements applicable to derivatives, restrictions on banking and financial activities and the manner in which we structure and implement our global operations and servicing relationships. In addition, our regulatory posture and related expenses have been and will continue to be affected by changes in regulatory expectations for global systemically important financial institutions applicable to, among other things, risk management, liquidity and capital planning, resolution planning, compliance programs, and changes in governmental enforcement approaches to perceived failures to comply with regulatory or legal obligations; adverse changes in the regulatory ratios that we are, or will be, required to meet, whether arising under the Dodd-Frank Act or implementation of international standards applicable to financial institutions, such as those proposed by the Basel Committee, or due to changes in regulatory positions, practices or regulations in jurisdictions in which we engage in banking activities, including changes in internal or external data, formulae, models, assumptions or other advanced systems used in the calculation of our capital or liquidity ratios that cause changes in those ratios as they are measured from period to period; requirements to obtain the prior approval or non-objection of the Federal Reserve or other U.S. and non-U.S. regulators for the use, allocation or distribution of our capital or other specific capital actions or corporate activities, including, without limitation, acquisitions, investments in subsidiaries, dividends and stock purchases, without which our growth plans, distributions to shareholders, share repurchase programs or other capital or corporate initiatives may be restricted; changes in law or regulation, or the enforcement of law or regulation, that may adversely affect our business activities or those of our clients or our counterparties, and the products or services that we sell, including additional or increased taxes or assessments thereon, capital adequacy requirements, margin requirements and changes that expose us to risks related to the adequacy of our controls or compliance programs; economic or financial market disruptions in the U.S. or internationally, including those which may result from recessions or political instability; for example, the U.K.'s decision to exit from the European Union may continue to disrupt financial markets or economic growth in Europe or potential changes in trade policy and bi-lateral and multi-lateral trade agreements proposed by the U.S.; our ability to create cost efficiencies through changes in our operational processes and to further digitize our processes and interfaces with our clients, any failure of which, in whole or in part, may among other things, reduce our competitive position, diminish the cost-effectiveness of our systems and processes or provide an insufficient return on our associated investment; our ability to promote a strong culture of risk management, operating controls, compliance oversight, ethical behavior and governance that meets our expectations and those of our clients and our regulators, and the financial, regulatory, reputation and other consequences of our failure to meet such expectations; the impact on our compliance and controls enhancement programs associated with the appointment of a monitor under the deferred prosecution agreement with the DOJ and compliance consultant appointed under a settlement with the SEC, including the potential for such monitor and compliance consultant to require changes to our programs or to identify other issues that require substantial expenditures, changes in our operations, or payments to clients or reporting to U.S. authorities; the results of our review of our billing practices, including additional findings or amounts we may be required to reimburse clients, as well as potential consequences of such review, including damage to our client relationships or our reputation and adverse actions by governmental authorities; the results of, and costs associated with, governmental or regulatory inquiries and investigations, litigation and similar claims, disputes, or civil or criminal proceedings; changes or potential changes in the amount of compensation we receive from clients for our services, and the mix of services provided by us that clients choose; the large institutional clients on which we focus are often able to exert considerable market influence and have diverse investment activities, and this, combined with strong competitive market forces, subjects us to significant pressure to reduce the fees we charge, to potentially significant changes in our AUCA or our AUM in the event of the acquisition or loss of a client, in whole or in part, and to potentially significant changes in our fee revenue in the event a client re-balances or changes its investment approach or otherwise re-directs assets to lower- or higher-fee asset classes; the potential for losses arising from our investments in sponsored investment funds; the possibility that our clients will incur substantial losses in investment pools for which we act as agent, the possibility of significant reductions in the liquidity or valuation of assets underlying those pools and the potential that clients will seek to hold us liable for such losses; the possibility that our clients or regulators will assert claims that our fees with respect to such investment products are not appropriate or consistent with our fiduciary responsibilities; our ability to anticipate and manage the level and timing of redemptions and withdrawals from our collateral pools and other collective investment products; the credit agency ratings of our debt and depositary obligations and investor and client perceptions of our financial strength; adverse publicity, whether specific to State Street or regarding other industry participants or industry-wide factors, or other reputational harm; our ability to control operational risks, data security breach risks and outsourcing risks, 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; our ability to expand our use of technology to enhance the efficiency, accuracy and reliability of our operations and our dependencies on information technology and our ability to control related risks, including cyber-crime and other threats to our information technology infrastructure and systems (including those of our third-party service providers) and their effective operation both independently and with external systems, and complexities and costs of protecting the security of such systems and data; changes or potential changes to the competitive environment, including changes due to regulatory and technological changes, the effects of industry consolidation and perceptions of State Street as a suitable service provider or counterparty; our ability to complete acquisitions, joint ventures and divestitures, and our the ability to obtain regulatory approvals, the ability to arrange financing as required and the ability to satisfy closing conditions; the risks that our acquired businesses, including our acquisition of Charles River Development, and joint ventures will not achieve their anticipated financial, operational and product innovation benefits or will not be integrated successfully, or that the integration will take longer than anticipated; that expected synergies will not be achieved or unexpected negative synergies or liabilities 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 our relationships with our clients, our employees or regulators; our ability to integrate Charles River Development's front office systems with our middle and back office capabilities to offer an front to back office system that is competitive and meets our clients requirements; our ability to recognize evolving needs of our clients and to develop products that are responsive to such trends and profitable to us; the performance of and demand for the products and services we offer; and the potential for new products and services to impose additional costs on us and expose us to increased operational risk; our ability to grow revenue, manage expenses, attract and retain highly skilled people and raise the capital necessary to achieve our business goals and comply with regulatory requirements and expectations; changes in accounting standards and practices; and the impact of the U.S. tax legislation enacted in 2017, 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 2017 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 (and the conference call referenced herein) should not be relied on as representing our expectations or beliefs as of any time subsequent to the time this presentation is first furnished to the SEC on a Current Report on Form 8-K, and we do not undertake efforts to revise those forward-looking statements to reflect events after that time. 19

Non-GAAP Measures In addition to presenting State Street's financial results in conformity with U.S. generally accepted accounting principles, or GAAP, management also presents certain financial information on a non-GAAP basis. In general, our non-GAAP financial results adjust selected GAAP-basis financial results to exclude the impact of revenue and expenses outside of State Street’s normal course of business or other notable items, such as acquisition and restructuring charges, repositioning costs and gains/losses on sales. Management believes that this presentation of financial information facilitates an investor's further understanding and analysis of State Street's financial performance and trends with respect to State Street’s business operations from period to period, including providing additional insight into our underlying margin and profitability, in addition to financial information prepared and reported in conformity with GAAP. Management may also provide additional non-GAAP measures. For example, we present capital ratios, calculated under regulatory standards scheduled to be effective in the future or other standards, that management uses in evaluating State Street’s business and activities and believes may similarly be useful to investors. Additionally, we may present revenue and expense measures on a constant currency basis to identify the significance of changes in foreign currency exchange rates (which often are variable) in period-to-period comparisons. This presentation represents the effects of applying prior period weighted average foreign currency exchange rates to current period results. Prior to 1Q18, management presented results on an operating-basis to both: (1) exclude the impact of revenue and expenses outside of State Street’s normal course of business, such as restructuring charges; and (2) present revenue from non-taxable sources, such as interest income from tax-exempt investment securities and processing fees and other revenue associated with tax-advantaged investments, on a fully-taxable equivalent basis. Beginning in 1Q18 State Street presents results only on a GAAP basis, along with certain non-GAAP measures that management believes may be useful to investors. As management has previously communicated the expected impact of State Street Beacon on pre-tax margin based on historical operating-basis results, pre-tax margin has been provided on that historical operating-basis to allow investors to assess performance with respect to State Street Beacon on a consistent basis. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in conformity with GAAP. Refer to the Addendum for reconciliations of our non-GAAP financial information. To access the Addendum go to http://investors.statestreet.com and click on “Filings & Reports – Quarterly Earnings”. 20

Definitions ABS Asset-backed securities Available-for-sale (AFS) Security that is purchased with the opportunity of selling before it reaches maturity AUCA Assets under custody and administration AUM Assets under management Bps Basis points, with one basis point representing one hundredth of one percent Diluted earnings per share (EPS) Net income available to common shareholders divided by diluted average common shares outstanding for the noted period ETF Exchange-traded fund Fee operating leverage Rate of growth of total fee revenue less the rate of growth of expenses, relative to the successive prior year period, as applicable FX Foreign exchange FY Full year GAAP Generally accepted accounting principles in the United States HQLA High quality liquid assets MBS Mortgage-backed securities Muni Municipal securities Net interest income (NII) Income earned on interest bearing assets less interest paid on interest bearing liabilities. Net interest income was disclosed as net interest revenue prior to 1Q17 Net interest margin (NIM) Net interest income divided by average interest-earning assets nm Not meaningful Operating leverage Rate of growth of total revenue less the rate of growth of total expenses, relative to the successive prior year period, as applicable Pre-tax operating margin Income before income tax expense divided by total revenue %P ts Percentage points is the difference from one percentage value subtracted from another Quarter-over-quarter (QoQ) Sequential quarter comparison Return on equity (ROE) Net income less dividends on preferred stock divided by average common equity RWA Risk-weighted assets SLR Supplementary leverage ratio Year-over-year (YoY) Current quarter period compared to the same period a year ago Year-to-date (YTD) The cumulative amount of time within a fiscal year up to the end of the quarter indicated (i.e., YTD 3Q18 is equivalent to the nine months ended September 30, 2018) 21



Exhibit No.	Description
99.1	State Street's news release dated October 19, 2018, announcing its third-quarter 2018 results of operations (this Exhibit 99.1 is furnished, not filed)
99.2	State Street's third-quarter 2018 financial information addendum (this Exhibit 99.2 is furnished, not filed)
99.3	Slide presentation providing highlights of State Street's third-quarter 2018 results of operations and related information as of September 30, 2018 (this Exhibit 99.3 is furnished, not filed)