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): July 20, 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 July 20, 2018, State Street Corporation issued a news release announcing its results of operations for the second-quarter of 2018. Copies of that news release and accompanying second-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 July 20, 2018, State Street Corporation made available a slide presentation providing highlights of its second-quarter 2018 results of operations and related information as of June 30, 2018, which is being made available in connection with a July 20, 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 July 20, 2018, announcing its second-quarter 2018 results of operations and accompanying second-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 second-quarter 2018 results of operations and related information as of June 30, 2018, which is being made available in connection with a July 20, 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:	July 20, 2018



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

STATE STREET REPORTS SECOND-QUARTER 2018 EPS OF $1.88, UP 23%,

AND ROE OF 14.7%, UP 2.1 PERCENTAGE POINTS,

COMPARED TO THE SECOND-QUARTER OF 2017

2Q18 RESULTS INCLUDE A $77 MILLION, OR $0.17 PER SHARE, REPOSITIONING CHARGE RELATED TO ORGANIZATIONAL REALIGNMENT

2Q18 REVENUE OF $3.0 BILLION, UP 8% COMPARED TO 2Q17, REFLECTING

STRENGTH IN BOTH FEE REVENUE AND NET INTEREST INCOME

EXPENSES DOWN SEQUENTIALLY; BEACON TO DELIVER $200 MILLION

IN SAVINGS IN 2018, UP FROM $150 MILLION

Boston, MA ...July 20, 2018

In announcing today’s financial results, Joseph L. Hooley, State Street’s Chairman and Chief Executive Officer, said, "Second-quarter and year-to-date 2018 results reflect strength across our asset servicing and asset management businesses as well as the benefit from higher net interest income. Importantly, year-to-date EPS growth of 30% compared to the first half of 2017 was supported by a 6% and 20% increase in servicing fees and management fees, respectively. Demand remains strong across our global client base as demonstrated by new servicing commitments announced in the first half of 2018 of $1.5 trillion."

Hooley added, "Through State Street Beacon, we have gained efficiencies across the organization, while delivering significant value and innovation to our clients. Building on the success of Beacon, we are now focused on achieving greater organizational effectiveness and streamlining to further advance the standardization and globalization of our business."

Hooley continued, "It continues to remain a priority to prudently manage expenses against the revenue environment and we remain on track to achieve our 2018 financial objectives."

Hooley concluded, "Building on our market-leading servicing capabilities, our announcement today of our agreement to acquire Charles River Development positions us to deliver the industry's first-ever front-to-middle-to-back office servicing platform. A comprehensive front to back solution coupled with enhanced data management provides State Street with the capabilities to further expand and deepen our client relationships and help solve some of their most pressing business challenges. The addition of Charles River Development's capabilities to State Street's existing product set provides another growth avenue for shareholders."

Broad-based business momentum: Asset servicing AUCA as of quarter-end increased 9% from 2Q17 due to strength in equity markets, new business, and higher client flows, partially offset by client transitions. Asset management AUM as of quarter-end, increased 5% compared to 2Q17, primarily driven by strength in equity markets, partially offset by lower yielding institutional outflows.

New business: Asset servicing mandates announced year-to-date totaled approximately $1.5 trillion, of which $105 billion was newly announced in 2Q18. Servicing assets remaining to be installed in future periods totaled approximately $300 billion. In our asset management business, we experienced net outflows of $14 billion during 2Q18.

Fee revenue: Increased 6% from 2Q17, driven by higher servicing fees, management fees, trading services, the favorable impact of currency translation, and the impact of the new revenue recognition standard, partially offset by lower securities finance fees.

Servicing and management fees: Servicing fees increased 3% relative to 2Q17, benefiting from higher global equity markets and new business. Management fees increased 17% relative to 2Q17, primarily driven by higher global equity markets and the impact of the new revenue recognition standard.

Net interest income: Increased 15% relative to 2Q17, driven by higher market interest rates in the U.S. and disciplined liability pricing, partially offset by a mix shift to HQLA assets.

Expenses: 2Q18 expenses increased 6% compared to 2Q17, primarily due to investments to support new business, higher salaries and benefits, and the impact of the new revenue recognition standard, partially offset by Beacon savings and lower performance-based incentive compensation.

The impact of the new revenue revenue recognition standard and the unfavorable impact of currency translation contributed 4% points to expense growth.

Expenses include a $77 million repositioning charge related to organizational changes and management streamlining, consisting of $61 million of compensation and employee benefits and $16 million of occupancy costs.

Beacon and organizational efficiencies:

Savings: We now expect $200 million in savings in 2018 which exceeds our previously announced guidance of $150 million. We realized approximately $60 million of savings in both 1Q18 and 2Q18 for total year-to-date savings of approximately $120 million.

Building on success: We are transitioning to our next phase of efficiency initiatives which includes management streamlining to further advance the standardization and globalization of our business. To achieve these efficiency initiatives, we recognized the above referenced 2Q18 repositioning charge of $77 million.

Operating leverage: Compared to 2Q17, the growth rate of total revenue exceeded the growth rate of total expenses, resulting in positive operating leverage of approximately 1.4% points.

Fee operating leverage: Compared to 2Q17, fee operating leverage was (0.8)% points. The impact from lower 2Q18 securities finance seasonality relative to 2Q17 contributed approximately 1%.

Pre-tax margin: Compared to 2Q17, pre-tax margin increased 1% point to 28.6%.

Key metrics: Relative to 2Q17, under the standardized approach, the estimated Basel III common equity tier 1 ratio for 2Q18 increased 10 basis points to 11.3%. The estimated 2Q18 leverage ratio was 7.1%, reflecting an increase of 10 basis points from 2Q17.

Capital Return: Declared a quarterly common stock dividend of $0.42 per share and on July 19, 2018, declared a 3Q18 dividend of $0.47 per share, representing an increase of 12% from the 2Q18 dividend. In anticipation of today's separately announced acquisition, we did not repurchase any common stock in 2Q18 and do not anticipate repurchasing any common stock for the remainder of the year.

Financial Results



(Table presents summary results, dollars in millions, except per share amounts, or where otherwise noted)	2Q18			1Q18			Increase (Decrease)			2Q17			Increase (Decrease)
Total fee revenue⁽¹⁾	$	2,358		$	2,378		(0.8	)%		$	2,235		5.5	%
Net interest income⁽²⁾	659			643			2.5			575			14.6
Total revenue	3,026			3,019			0.2			2,810			7.7
Provision for loan losses	2			—			nm			3			nm
Total expenses⁽¹⁾	2,159			2,256			(4.3	)		2,031			6.3
Net income available to common shareholders	698			605			15.4			584			19.5
Earnings per common share:
Diluted earnings per share	1.88			1.62			16.0			1.53			22.9
Financial ratios:
Quarterly average total assets	224,089			226,870			(1.2	)		223,917			0.1
Fee operating leverage⁽³⁾							346		bps				(80	)	bps
Operating leverage⁽³⁾							453						139
Return on average common equity	14.7		%	12.8		%	190			12.6		%	210
Return on tangible common equity⁽⁴⁾	21.1			20.1			100			17.3			380
Pre-tax margin (GAAP-basis)	28.6			25.3			330			27.6			100
Pre-tax margin (historical Operating-basis)	30.6			27.4			320			33.3			(270	)
Effective tax rate	15.1			13.5			160			20.1			(500	)

⁽¹⁾Effects of the new revenue recognition standard (ASU 2014-09): The newly effective revenue recognition standard increased 2Q18 total fee revenue and total expenses by approximately $70 million each. Relative to 2Q17, the new revenue recognition standard contributed 2.4% and 2.9% to both fee revenue growth and expense growth, respectively. The revenue impact was approximately $45 million in management fees, $20 million in brokerage and other fees, and $5 million in other line items. The expense impact was approximately $15 million in transaction processing, $45 million in other expenses, and $10 million in information systems and communication.

⁽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.

⁽³⁾ 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.

⁽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. 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)	2Q18		1Q18		Increase (Decrease)		2Q17		Increase (Decrease)
Assets under custody and administration⁽¹⁾⁽²⁾	$	33,867	$	33,284	1.8	%	$	31,037	9.1	%
Assets under management⁽²⁾	2,723		2,729		(0.2	)	2,606		4.5
Market Indices⁽³⁾:
S&P 500^®daily average	2,703		2,733		(1.1	)	2,398		12.7
MSCI EAFE^® daily average	2,018		2,072		(2.6	)	1,856		8.7
MSCI^® Emerging Markets daily average	1,138		1,204		(5.5	)	993		14.6
HFRI Asset Weighted Composite^® monthly average	1,407		1,406		0.1		1,339		5.1
Barclays Capital U.S. Aggregate Bond Index^® period-end	2,013		2,016		(0.1	)	2,021		(0.4	)
Barclays Capital Global Aggregate Bond Index^® period-end	478		491		(2.6	)	471		1.5
Average Foreign Exchange Rate (Euro vs. USD)	1.192		1.229		(3.0	)	1.101		8.3
Average Foreign Exchange Rate (GBP vs. USD)	1.360		1.391		(2.2	)	1.280		6.3

⁽¹⁾Includes assets under custody of $25,415 billion, $25,046 billion, and $23,362 billion, as of 2Q18, 1Q18, and 2Q17, 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 2Q18 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 March 31, 2018	$	1,670		$	433		$	336		$	146		$	144		$	2,729
Long-term institutional inflows⁽¹⁾	48			33			—			18			3			102
Long-term institutional outflows⁽¹⁾	(68		)	(24		)	—			(19		)	(3		)	(114		)
Long-term institutional flows, net	(20		)	9			—			(1		)	—			(12		)
ETF flows, net	(2		)	3			—			—			(1		)	—
Cash fund flows, net	—			—			(2		)	—			—			(2		)
Total flows, net	(22		)	12			(2		)	(1		)	(1		)	(14		)
Market appreciation	34			(2		)	1			1			1			35
Foreign exchange impact	(15		)	(6		)	(2		)	(2		)	(2		)	(27		)
Total market/foreign exchange impact	19			(8		)	(1		)	(1		)	(1		)	8
Balance as of June 30, 2018	$	1,667		$	437		$	333		$	144		$	142		$	2,723

⁽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)	2Q18			1Q18			Increase (Decrease)			2Q17			Increase (Decrease)
Servicing fees	$	1,381		$	1,421		(2.8	)%		$	1,339		3.1	%
Management fees	465			472			(1.5	)		397			17.1
Trading services revenue	315			304			3.6			289			9.0
Securities finance revenue	154			141			9.2			179			(14.0	)
Processing fees and other revenue	43			40			7.5			31			38.7
Total fee revenue⁽¹⁾	2,358			2,378			(0.8	)		2,235			5.5
Net interest income⁽¹⁾	659			643			2.5			575			14.6
Gains (losses) related to investment securities, net	9			(2		)	nm			—			—
Total Revenue	$	3,026		$	3,019		0.2			$	2,810		7.7
Net interest margin	1.46		%	1.40		%	6		bps	1.27		%	19		bps

⁽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. The newly effective revenue recognition standard increased 2Q18 total fee revenue by approximately $70 million. The fee revenue impact was approximately $45 million in management fees, $20 million in brokerage and other fees, and $5 million in other line items.

Servicing fees increased from 2Q17, primarily due to higher global equity markets, increased client activity, new business, and the favorable impact of currency translation. Compared to 1Q18, servicing fees decreased, primarily due to lower global equity markets, client transitions, and the unfavorable impact of currency translation.

Management fees increased from 2Q17, primarily due to higher global equity markets and the adoption of the new revenue recognition accounting standard. Management fees decreased from 1Q18, primarily due to lower global equity markets.

Trading Services revenue increased from 2Q17 and 1Q18, the increase over both periods reflects higher FX client volumes.

Securities finance revenue decreased from 2Q17, reflecting lower seasonal activity in 2Q18 relative to 2Q17. Compared to 1Q18, securities finance revenue increased primarily due to seasonality.

Processing fees and other revenue increased from 2Q17, largely reflecting lower amortization related to tax-advantaged investments and higher software fees. Compared to 1Q18, processing fees and other revenue increased due to higher software fees.

Net interest income increased from 2Q17 and 1Q18, primarily due to higher market interest rates in the U.S. and disciplined liability pricing, partially offset by a mix shift to HQLA assets. Net interest margin increased 19 and 6 basis points compared to 2Q17 and 1Q18, respectively, driven by higher U.S. interest rates and disciplined liability pricing and a smaller balance sheet.



(Dollars in millions)	2Q18		1Q18		Increase (Decrease)		2Q17		Increase (Decrease)
Compensation and employee benefits	$	1,125	$	1,249	(9.9	)%	$	1,071	5.0	%
Information systems and communications	321		315		1.9		283		13.4
Transaction processing services	246		242		1.7		207		18.8
Occupancy	124		120		3.3		116		6.9
Acquisition and restructuring costs⁽¹⁾	—		—		—		71		(100.0	)
Other	343		330		3.9		283		21.2
Total Expenses⁽¹⁾	$	2,159	$	2,256	(4.3	)	$	2,031	6.3

⁽¹⁾Effects of the new revenue recognition standard: The newly effective revenue recognition standard increased 2Q18 total expenses by approximately $70 million. Relative to the expense impact was approximately $15 million in transaction processing, $45 million in other expenses, and $10 million across other expense line items.

Compensation and employee benefits expenses increased from 2Q17, primarily due to the $61 million related to the repositioning charge, increased costs to support new business, annual merit increases, and the unfavorable impact of currency translation, partially offset by lower performance based incentive compensation and Beacon savings. Compared to 1Q18, compensation and employee benefits expenses decreased primarily due to the absence of expenses associated with the seasonal deferred incentive compensation for retirement-eligible employees, lower 2Q18 performance based incentives and Beacon savings, partially offset by the 2Q18 repositioning charge related to organizational changes and management streamlining.

Information systems and communications expenses increased from 2Q17, primarily due to Beacon related investments and costs to support new business.

Transaction processing services expenses increased from 2Q17, reflecting higher client volumes and higher market levels as well as the impact of the new revenue recognition standard.

Occupancy expenses increased from both 2Q17 and 1Q18. The increase over both periods reflects a 2Q18 $16 million charge related to right-sizing the real estate footprint as part of our organizational realignment.

Other expenses increased from 2Q17, primarily due to the impact of the new revenue recognition accounting standard. Compared to 1Q18, other expenses increased reflecting higher Beacon related investments and regulatory professional costs.

The 2Q18 effective tax rate was 15.1% compared to 20.1% in 2Q17 and 13.5% in 1Q18. The decrease in 2Q18 tax rate compared to 2Q17 reflects the impact of the lower U.S. tax rate under the TCJA as well as a reduction in deferred tax liabilities, partially offset by a decline in

tax exempt income. The 1Q18 tax rate included elevated benefits attributable to the vesting of stock based compensation.

The following table presents regulatory capital ratios as of June 30, 2018 and March 31, 2018. 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. Also presented is the calculation of State Street's supplementary leverage ratio (SLR). Unless otherwise noted, all capital ratios presented in the table and elsewhere in this News Release refer to State Street Corporation.



June 30, 2018⁽¹⁾	Basel III Advanced Approaches (Estimated) Pro-Forma⁽²⁾⁽³⁾		Basel III Standardized Approach (Estimated) Pro-Forma⁽³⁾
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

March 31, 2018
Common equity tier 1 ratio	12.1	%	10.8	%
Tier 1 capital ratio	15.4		13.7
Total capital ratio	16.3		14.6
Tier 1 leverage ratio	6.9		6.9




As of June 30, 2018 (Dollars in millions)⁽¹⁾	Fully Phased-In SLR
Tier 1 Capital	$	15,419
Total assets for SLR	250,160
Supplementary Leverage Ratio	6.2		%

As of March 31, 2018 (Dollars in millions)
Tier 1 Capital	$	15,146
Total assets for SLR	252,362
Supplementary Leverage Ratio	6.0		%

⁽¹⁾ June 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 June 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, July 20, 2018, at 8:00 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 # 5069567.

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 # 5069567.

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 2Q18, State Street expects to publish its updates during the period beginning today and ending on or about July 25, 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 $33.9 trillion in assets under custody and administration and $2.7 trillion* in assets under management as of June 30, 2018, State Street operates globally in more than 100 geographic markets and employs over 38,000 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 $33 billion as of June 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 June 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.

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 July 20, 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, including our proposed acquisition of Charles River Development, 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 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
June 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
Reconciliation 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 July 20, 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) from sales of available-for-sale 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 (loss) 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	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 quarter 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			2Q18 vs. 2Q17			2Q18 vs. 1Q18
Income Statement
Fee revenue⁽¹⁾	$	2,198		$	2,235		$	2,242		$	2,230		$	2,378		$	2,358		5.5	%		(0.8	)%
Net interest income⁽¹⁾	510			575			603			616			643			659			14.6			2.5
Gains (losses) from sales of available-for-sale securities, net	(40		)	—			1			—			(2		)	9			—			nm
Total revenue	2,668			2,810			2,846			2,846			3,019			3,026			7.7			0.2
Provision for loan losses	(2		)	3			3			(2		)	—			2			(33.3	)		—
Total expenses⁽²⁾	2,086			2,031			2,021			2,131			2,256			2,159			6.3			(4.3	)
Income before income tax expense	584			776			822			717			763			865			11.5			13.4
Income tax expense	82			156			137			347			102			131			(16.0	)		28.4
Net income	502			620			685			370			661			734			18.4			11.0
Net income available to common shareholders	$	446		$	584		$	629		$	334		$	605		$	698		19.5			15.4
Per Common Share:
Diluted earnings per common share	$	1.15		$	1.53		$	1.66		$	.89		$	1.62		$	1.88		22.9			16.0
Average diluted common shares outstanding (in thousands)	386,417			380,915			378,518			375,477			372,619			370,410			(2.8	)		(0.6	)
Cash dividends declared per common share	$	.38		$	.38		$	.42		$	.42		$	.42		$	.42		10.5			—
Closing price per share of common stock (as of quarter end)	79.61			89.73			95.54			97.61			99.73			93.09			3.7			(6.7	)
At quarter-end:
Total assets	$	236,802		$	238,274		$	235,986		$	238,425		$	250,286		248,308			4.2			(0.8	)
Investment securities	94,639			95,255			93,088			97,579			85,462			86,942			(8.7	)		1.7
Deposits	183,465			181,416			179,263			184,896			191,517			186,663			2.9			(2.5	)
Long-term debt	11,394			11,737			11,716			11,620			10,944			10,387			(11.5	)		(5.1	)
Total shareholders' equity	21,294			22,068			22,497			22,317			22,399			22,571			2.3			0.8
Securities On Loan:
Average securities on loan	$	368		$	384		$	383		$	397		$	397		$	406		5.7			2.3
End-of-period securities on loan	378			376			385			389			405			404			7.4			(0.2	)
Ratios and Other Metrics:
Return on average common equity	9.9		%	12.6		%	13.0		%	6.9		%	12.8		%	14.7		%	210		bps	190		bps
Pre-tax margin (GAAP-basis)	21.9			27.6			28.9			25.2			25.3			28.6			100			330
Pre-tax margin (historical Operating-basis, excluding repositioning charges)⁽³⁾	26.1			33.3			32.9			33.1			27.4			33.0		%	(30	)		560
Net interest margin, fully taxable-equivalent basis	1.17			1.27			1.35			1.38			1.40			1.46			19			6
Common equity tier 1 ratio⁽⁴⁾	11.2			12.0			12.6			12.3			12.1			12.4			40			30
Tier 1 capital ratio⁽⁴⁾	14.4			15.1			15.8			15.5			15.4			15.7			60			30
Total capital ratio⁽⁴⁾	15.4			16.2			16.9			16.5			16.3			16.4			20			10
Tier 1 leverage ratio⁽⁴⁾	6.8			7.0			7.4			7.3			6.9			7.1			10			20
Supplementary leverage ratio⁽⁴⁾	6.1			6.2			6.5			6.5			6.0			6.2			—			20
Assets under custody and administration (in billions)	$	29,833		$	31,037		$	32,110		$	33,119		$	33,284		$	33,867		9.1	%		1.8	%
Assets under management (in billions)	2,561			2,606			2,673			2,782			2,729			2,723			4.5			(0.2	)

⁽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 with 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		2Q18 vs. 2Q17		2Q18 vs. 1Q18		2Q17			2Q18		YTD 2Q18 vs. YTD 2Q17
Reported Results
Fee revenue:
Servicing fees	$	1,296		$	1,339	$	1,351	$	1,379		$	1,421		$	1,381	3.1	%	(2.8	)%	$	2,635		$	2,802	6.3	%
Management fees	382			397		419		418			472			465		17.1		(1.5	)	779			937		20.3
Trading services:
Total foreign exchange trading⁽¹⁾	164			178		150		149			181			194		9.0		7.2		342			375		9.6
Total brokerage and other trading services	111			111		109		99			123			121		9.0		(1.6	)	222			244		9.9
Total trading services	275			289		259		248			304			315		9.0		3.6		564			619		9.8
Securities finance	133			179		147		147			141			154		(14.0	)	9.2		312			295		(5.4	)
Processing fees and other⁽²⁾	112			31		66		38			40			43		38.7		7.5		143			83		(42.0	)
Total fee revenue⁽²⁾	2,198			2,235		2,242		2,230			2,378			2,358		5.5		(0.8	)	4,433			4,736		6.8
Net interest income:
Interest income	650			700		761		797			857			907		29.6		5.8		1,350			1,764		30.7
Interest expense⁽²⁾	140			125		158		181			214			248		98.4		15.9		265			462		74.3
Net interest income⁽²⁾	510			575		603		616			643			659		14.6		2.5		1,085			1,302		20.0
Gains (losses) related to investment securities, net:
Gains (losses) from sales of available-for-sale securities, net	(40		)	—		1		—			(2		)	9		—		nm		(40		)	7		nm
Total revenue	2,668			2,810		2,846		2,846			3,019			3,026		7.7		0.2		5,478			6,045		10.4
Provision for loan losses	(2		)	3		3		(2		)	—			2		(33.3	)	—		1			2		100.0
Expenses:
Compensation and employee benefits⁽³⁾	1,166			1,071		1,090		1,067			1,249			1,125		5.0		(9.9	)	2,237			2,374		6.1
Information systems and communications	287			283		296		301			315			321		13.4		1.9		570			636		11.6
Transaction processing services	197			207		215		219			242			246		18.8		1.7		404			488		20.8
Occupancy⁽³⁾	110			116		118		117			120			124		6.9		3.3		226			244		8.0
Acquisition and restructuring costs	29			71		33		133			—			—		(100.0	)	—		100			—		(100.0	)
Other	297			283		269		294			330			343		21.2		3.9		580			673		16.0
Total expenses⁽⁴⁾	2,086			2,031		2,021		2,131			2,256			2,159		6.3		(4.3	)	4,117			4,415		7.2
Income before income tax expense	584			776		822		717			763			865		11.5		13.4		1,360			1,628		19.7
Income tax expense	82			156		137		347			102			131		(16.0	)	28.4		238			233		(2.1	)
Net income	$	502		$	620	$	685	$	370		$	661		$	734	18.4		11.0		$	1,122		$	1,395	24.3



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

	Quarters																		% Change						Year-to-Date
(Dollars in millions, except per share amounts, or where otherwise noted)	1Q17			2Q17			3Q17			4Q17			1Q18			2Q18			2Q18 vs. 2Q17			2Q18 vs. 1Q18			2Q17			2Q18			YTD 2Q18 vs. YTD 2Q17
Adjustments to net income:
Dividends on preferred stock	$	(55	)	$	(36	)	$	(55	)	$	(36	)	$	(55	)	$	(36	)	—	%		(34.5	)%		$	(91	)	$	(91	)	—	%
Earnings allocated to participating securities	(1		)	—			(1		)	—			(1		)	—			—			(100.0	)		(1		)	(1		)	—
Net income available to common shareholders	$	446		$	584		$	629		$	334		$	605		$	698		19.5			15.4			$	1,030		$	1,303		26.5
Earnings per common share:
Basic	$	1.17		$	1.56		$	1.69		$	.91		$	1.65		$	1.91		22.4			15.8			$	2.72		$	3.55		30.5
Diluted	1.15			1.53			1.66			.89			1.62			1.88			22.9			16.0			2.69			3.51			30.5
Average common shares outstanding:
Basic	381,224			375,395			372,765			369,934			367,439			365,619			(2.6	)		(0.5	)		378,293			366,524			(3.1	)
Diluted	386,417			380,915			378,518			375,477			372,619			370,410			(2.8	)		(0.6	)		383,489			371,415			(3.1	)
Cash dividends declared per common share	$	.38		$	.38		$	.42		$	.42		$	.42		$	.42		10.5			—			$	.76		$	.84		10.5
Closing price per share of common stock (as of quarter end)	79.61			89.73			95.54			97.61			99.73			93.09			3.7			(6.7	)		89.73			93.09			3.7
Financial ratios:
Return on average common equity	9.9		%	12.6		%	13.0		%	6.9		%	12.8		%	14.7		%	210		bps	190		bps	11.3		%	13.7		%	240		bps
Return on tangible common equity⁽⁵⁾	16.0			17.3			18.0			16.7			20.1			21.1			380			100			17.3			21.1			380
Pre-tax margin (GAAP-basis)	21.9			27.6			28.9			25.2			25.3			28.6			100			330			24.8			26.9			210
Pre-tax margin (historical Operating-basis, excluding repositioning charges)⁽⁶⁾	26.1			33.3			32.9			33.1			27.4			33.0		%	(30	)		560			29.8			30.2			40
Effective tax rate⁽⁷⁾	14.0			20.1			16.7			48.4			13.5			15.1			(500	)		160			17.5		%	14.3			(320	)

⁽¹⁾ We calculate revenue for indirect foreign exchange using an attribution methodology. This methodology takes into consideration estimated effective mark-ups/downs and observed client volumes. Direct sales and trading revenue is total foreign exchange trading revenue excluding the revenue attributed to indirect foreign exchange.
⁽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.
⁽³⁾2Q18 includes repositioning charges of approximately $77 million, including approximately $61 million within Compensation and employee benefits expense and $16 million with Occupancy expense. Excluding the impact of the repositioning charge, Compensation and employee benefit expense decreased 1% from 1Q18 to 2Q18.
⁽⁴⁾Excluding the impact of foreign currency translation of $21 million relative to 2Q17, and the impact of the new revenue recognition accounting standard of approximately $70 million in 2Q18, 2Q18 Total expenses grew 2% over 2Q17. Excluding the impact of seasonal deferred compensation and payroll taxes of $148 million in 1Q18 and the $77 million repositioning charge in 2Q18, Total expenses declined 1% in 2Q18 relative to 1Q18.
⁽⁵⁾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.
⁽⁶⁾Refer to Reconciliations of Non-GAAP Financial Information pages for details on non-GAAP basis metrics.
⁽⁷⁾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			2Q18 vs. 2Q17		2Q18 vs. 1Q18
Assets:
Cash and due from banks	$	2,909		$	3,156		$	3,939		$	2,107		$	2,546		$	3,886		23.1	%	52.6	%
Interest-bearing deposits with banks	66,789			63,617			60,956			67,227			79,418			76,366			20.0		(3.8	)
Securities purchased under resale agreements	2,181			3,172			3,465			3,241			5,136			3,583			13.0		(30.2	)
Trading account assets	945			896			1,135			1,093			1,178			1,160			29.5		(1.5	)
Investment securities:
Investment securities available-for-sale	58,810			59,025			56,238			57,121			44,304			47,348			(19.8	)	6.9
Investment securities held-to-maturity⁽¹⁾	35,829			36,230			36,850			40,458			41,158			39,594			9.3		(3.8	)
Total investment securities	94,639			95,255			93,088			97,579			85,462			86,942			(8.7	)	1.7
Loans and leases, net⁽²⁾	22,486			24,307			23,581			23,240			29,528			24,069			(1.0	)	(18.5	)
Premises and equipment, net⁽³⁾	2,101			2,137			2,167			2,186			2,194			2,189			2.4		(0.2	)
Accrued interest and fees receivable	2,690			2,805			3,043			3,099			3,183			3,086			10.0		(3.0	)
Goodwill	5,855			5,945			5,997			6,022			6,068			5,973			0.5		(1.6	)
Other intangible assets	1,710			1,693			1,658			1,613			1,578			1,500			(11.4	)	(4.9	)
Other assets	34,497			35,291			36,957			31,018			33,995			39,554			12.1		16.4
Total assets	$	236,802		$	238,274		$	235,986		$	238,425		$	250,286		$	248,308		4.2		(0.8	)
Liabilities:
Deposits:
Non-interest-bearing	$	56,786		$	50,957		$	49,850		$	47,175		$	57,025		$	52,316		2.7		(8.3	)
Interest-bearing -- U.S.	26,746			24,438			49,394			50,139			55,094			57,407			134.9		4.2
Interest-bearing -- Non-U.S.	99,933			106,021			80,019			87,582			79,398			76,940			(27.4	)	(3.1	)
Total deposits	183,465			181,416			179,263			184,896			191,517			186,663			2.9		(2.5	)
Securities sold under repurchase agreements	4,003			3,856			3,867			2,842			2,020			3,088			(19.9	)	52.9
Other short-term borrowings	1,177			1,465			1,253			1,144			1,066			1,103			(24.7	)	3.5
Accrued expenses and other liabilities	15,469			17,732			17,390			15,606			22,340			24,496			38.1		9.7
Long-term debt	11,394			11,737			11,716			11,620			10,944			10,387			(11.5	)	(5.1	)
Total liabilities	215,508			216,206			213,489			216,108			227,887			225,737			4.4		(0.9	)
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			—		—
Series D, 7,500 shares issued and outstanding	742			742			742			742			742			742			—		—
Series E, 7,500 shares issued and outstanding	728			728			728			728			728			728			—		—
Series F, 7,500 shares issued and outstanding	742			742			742			742			742			742			—		—
Series G, 5,000 shares issued and outstanding	493			493			493			493			493			493			—		—
Common stock, $1 par, 750,000,000 shares authorized⁽⁴⁾	504			504			504			504			504			504			—		—
Surplus	9,796			9,803			9,803			9,799			9,796			9,820			0.2		0.2
Retained earnings	17,762			18,202			18,675			18,856			19,311			19,856			9.1		2.8
Accumulated other comprehensive income (loss)	(1,805		)	(1,270		)	(984		)	(1,009		)	(1,074		)	(1,488		)	17.2		38.5
Treasury stock, at cost⁽⁵⁾	(8,159		)	(8,367		)	(8,697		)	(9,029		)	(9,334		)	(9,317		)	11.4		(0.2	)
Total shareholders' equity	21,294			22,068			22,497			22,317			22,399			22,571			2.3		0.8
Total liabilities and equity	$	236,802		$	238,274		$	235,986		$	238,425		$	250,286		$	248,308		4.2		(0.8	)


	1Q17			2Q17			3Q17			4Q17			1Q18			2Q18
⁽¹⁾Fair value of investment securities held-to-maturity	$	35,694		$	36,169		$	36,836		$	40,255		$	40,483		$	38,805
⁽²⁾ Allowance for loan losses	51			54			58			54			54			55
⁽³⁾ Accumulated depreciation for premises and equipment	3,463			3,611			3,750			3,881			4,005			3,999
⁽⁴⁾ Common stock shares issued	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



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					2Q18 vs. 2Q17		2Q18 vs. 1Q18
(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 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		%	3.8	%	7.2	%
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			5.2		(13.9	)
Trading account assets	914		—			941		—			991		—			1,194		—			1,138		—			1,139		—			21.0		0.1
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			(14.4	)	(3.2	)
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			35.0		9.7
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			(32.0	)	(21.8	)
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			(46.6	)	(36.2	)
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			(60.5	)	(28.5	)
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			21.2		(8.4	)
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			(8.7	)	(9.4	)
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			12.1		(1.4	)
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			(24.8	)	(1.9	)
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			(4.7	)	(3.3	)
Cash and due from banks	2,608					3,833					3,098					2,848					3,081					3,978					3.8		29.1
Other assets	24,761					24,797					25,355					25,547					31,233					33,939					36.9		8.7
Total assets	$	219,209				$	223,917				$	218,369				$	216,348				$	226,870				$	224,089				0.1		(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		%	95.1		3.4
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			(23.2	)	(2.9	)
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			1.1		(0.5	)
Securities sold under repurchase agreements⁽⁴⁾	3,894		—			4,028		—			3,974		0.07			2,843		—			2,617		0.16			2,641		0.92			(34.4	)	0.9
Federal funds purchased	—		—			2		—			—		—			—		—			—		—			—		—			(100.0	)	—
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			(0.2	)	5.2
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			(7.5	)	(6.7	)
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			(6.7	)	(5.1	)
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			(0.8	)	(1.1	)
Non-interest bearing deposits	44,249					42,244					39,685					38,889					37,790					36,212					(14.3	)	(4.2	)
Other liabilities	10,626					12,441					13,294					13,117					18,942					19,455					56.4		2.7
Preferred shareholders' equity	3,197					3,197					3,197					3,197					3,197					3,197					—		—
Common shareholders' equity	18,323					18,654					19,157					19,326					19,177					19,039					2.1		(0.7	)
Total liabilities and shareholders' equity	$	219,209				$	223,917				$	218,369				$	216,348				$	226,870				$	224,090				0.1		(1.2	)
Excess of rate earned over rate paid			1.07		%			1.18		%			1.24		%			1.26		%			1.26		%			1.31		%
Net interest margin			1.17		%			1.27		%			1.35		%			1.38		%			1.40		%			1.46		%
Net interest income, fully taxable-equivalent basis			$	553				$	617				$	645				$	656				$	664				$	677
Tax-equivalent adjustment			(43		)			(42		)			(42		)			(40		)			(21		)			(18		)
Net interest income, GAAP-basis⁽³⁾			$	510				$	575				$	603				$	616				$	643				$	659

⁽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 and $31 billion in the first and second 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% and 0.98% for the first and second 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 and $42 million for the first and second 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% and 0.15% for the first and second 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
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	$	51,031	0.30		%	$	53,346	0.65		%	4.5	%
Securities purchased under resale agreements⁽²⁾	2,205		10.52			2,672		11.97			21.2
Trading account assets	928		(0.13		)	1,138		—			22.6
Investment securities
U.S. Treasury and federal agencies
Direct obligations	20,557		1.56			16,904		1.68			(17.8	)
Mortgage-and asset-backed securities	23,359		2.22			29,693		2.64			27.1
State and political subdivisions	10,113		3.80			7,675		3.34			(24.1	)
Other investments
Asset-backed securities	22,990		1.52			15,988		1.96			(30.5	)
Collateralized mortgage-backed securities and obligations	3,860		2.72			1,788		2.44			(53.7	)
Money market mutual funds	340		0.43			—		—			(100.0	)
Other debt investments and equity securities	14,702		1.30			18,788		1.28			27.8
Total investment securities	95,921		1.95			90,836		2.12			(5.3	)
Loans and leases	20,607		2.25			23,790		2.80			15.4
Other interest-earning assets	22,882		0.69			17,564		2.07			(23.2	)
Total interest-earning assets	193,574		1.49			189,346		1.92			(2.2	)
Cash and due from banks	3,224					3,532					9.6
Other assets	24,779					32,594					31.5
Total assets	$	221,577				$	225,472				1.8
Liabilities:
Interest-bearing deposits:
U.S.	$	25,849	0.44			49,461		0.33			91.3
Non-U.S.	97,201		—			77,438		0.19			(20.3	)
Total interest-bearing deposits	123,050		0.09			126,899		0.24			3.1
Securities sold under repurchase agreements	3,961		0.04			2,629		0.54			(33.6	)
Federal funds purchased	1		0.91			—		—			(100.0	)
Other short-term borrowings	1,332		0.71			1,287		1.17			(3.4	)
Long-term debt	11,469		2.58			11,029		3.51			(3.8	)
Other interest-bearing liabilities	5,298		2.04			5,126		4.02			(3.2	)
Total interest-bearing liabilities	145,110		0.37			146,970		0.63			1.3
Non-interest bearing deposits	43,241					36,997					(14.4	)
Other liabilities	11,539					19,200					66.4
Preferred shareholders' equity	3,197					3,197					—
Common shareholders' equity	18,489					19,108					3.3
Total liabilities and shareholders' equity	$	221,576				$	225,472				1.8
Excess of rate earned over rate paid			1.12		%			1.29		%
Net interest margin			1.22		%			1.43		%
Net interest income, fully taxable-equivalent basis			$	1,169				$	1,340
Tax-equivalent adjustment			(84		)			(38		)
Net interest income, GAAP-basis			$	1,085				$	1,302

⁽¹⁾ Reflects the impact of balance sheet netting under enforceable netting agreements of approximately $32 billion and $32 billion as of June 30, 2017 and 2018, respectively. Excluding the impact of netting, the average interest rates would be approximately 0.68% and 0.93% for the six months ended June 30, 2017 and 2018, respectively.
⁽²⁾Average rates include the impact of FX swap expense of approximately $45 million and $76 million for the six months ended June 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		2Q18 vs. 2Q17		2Q18 vs. 1Q18
Assets Under Custody and Administration
By Product Classification:
Mutual funds	$	7,033	$	7,123	$	7,394	$	7,603	$	7,503	$	8,548	20.0	%	13.9	%
Collective funds, including ETFs	8,024		8,560		9,190		9,707		9,908		9,615		12.3		(3.0	)
Pension products	5,775		5,937		6,571		6,704		6,802		6,808		14.7		0.1
Insurance and other products	9,001		9,417		8,955		9,105		9,071		8,896		(5.5	)	(1.9	)
Total Assets Under Custody and Administration	$	29,833	$	31,037	$	32,110	$	33,119	$	33,284	$	33,867	9.1		1.8
By Financial Instrument⁽¹⁾:
Equities	$	17,041	$	17,859	$	18,423	$	19,214	$	19,198	$	19,475	9.0		1.4
Fixed-income	9,300		9,560		9,883		10,070		10,186		10,189		6.6		—
Short-term and other investments	3,492		3,618		3,804		3,835		3,900		4,203		16.2		7.8
Total Assets Under Custody and Administration	$	29,833	$	31,037	$	32,110	$	33,119	$	33,284	$	33,867	9.1		1.8
By Geographic Location⁽²⁾:
North America	$	22,361	$	23,020	$	23,675	$	24,418	$	24,336	$	24,989	8.6		2.7
Europe/Middle East/Africa	5,979		6,464		6,806		7,028		7,211		7,134		10.4		(1.1	)
Asia/Pacific	1,493		1,553		1,629		1,673		1,737		1,744		12.3		0.4
Total Assets Under Custody and Administration	$	29,833	$	31,037	$	32,110	$	33,119	$	33,284	$	33,867	9.1		1.8
Assets Under Custody⁽³⁾
By Product Classification:
Mutual funds	$	6,499	$	6,577	$	6,818	$	6,998	$	6,894	$	7,950	20.9		15.3
Collective funds, including ETFs	6,601		7,107		7,638		8,091		8,189		7,602		7.0		(7.2	)
Pension products	5,212		5,399		5,480		5,606		5,682		5,703		5.6		0.4
Insurance and other products	4,193		4,279		4,304		4,325		4,281		4,160		(2.8	)	(2.8	)
Total Assets Under Custody	$	22,505	$	23,362	$	24,240	$	25,020	$	25,046	$	25,415	8.8		1.5
By Geographic Location⁽²⁾:
North America	$	17,747	$	18,223	$	18,691	$	19,276	$	19,131	$	19,545	7.3		2.2
Europe/Middle East/Africa	3,635		3,969		4,323		4,487		4,617		4,557		14.8		(1.3	)
Asia/Pacific	1,123		1,170		1,226		1,257		1,298		1,313		12.2		1.2
Total Assets Under Custody	$	22,505	$	23,362	$	24,240	$	25,020	$	25,046	$	25,415	8.8		1.5

⁽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		2Q18 vs. 2Q17		2Q18 vs. 1Q18
Assets Under Management
By Asset Class and Investment Approach:
Equity:
Active	$	77	$	82	$	95	$	95	$	94	$	92	12.2	%	(2.1	)%
Passive	1,482		1,512		1,545		1,650		1,576		1,575		4.2		(0.1	)
Total Equity	1,559		1,594		1,640		1,745		1,670		1,667		4.6		(0.2	)
Fixed-Income:
Active	69		71		73		77		79		79		11.3		—
Passive	312		327		325		337		354		358		9.5		1.1
Total Fixed-Income	381		398		398		414		433		437		9.8		0.9
Cash⁽¹⁾	335		334		347		330		336		333		(0.3	)	(0.9	)
Multi-Asset-Class Solutions:
Active	19		18		18		18		18		18		—		—
Passive	113		113		117		129		128		126		11.5		(1.6	)
Total Multi-Asset-Class Solutions	132		131		135		147		146		144		9.9		(1.4	)
Alternative Investments⁽²⁾:
Active	26		27		24		23		23		22		(18.5	)	(4.3	)
Passive	128		122		129		123		121		120		(1.6	)	(0.8	)
Total Alternative Investments	154		149		153		146		144		142		(4.7	)	(1.4	)
Total Assets Under Management	$	2,561	$	2,606	$	2,673	$	2,782	$	2,729	$	2,723	4.5		(0.2	)
By Geographic Location⁽³⁾:
North America	$	1,772	$	1,802	$	1,845	$	1,931	$	1,885	$	1,897	5.3		0.6
Europe/Middle East/Africa	486		496		510		521		511		495		(0.2	)	(3.1	)
Asia/Pacific	303		308		318		330		333		331		7.5		(0.6	)
Total Assets Under Management	$	2,561	$	2,606	$	2,673	$	2,782	$	2,729	$	2,723	4.5		(0.2	)

⁽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	—	%	(4.2	)%
Cash	2		2		2		2		3		3		50.0		—
Equity	457		460		478		531		513		524		13.9		2.1
Fixed-Income	53		58		61		63		65		66		13.8		1.5
Total Exchange-Traded Funds	$	558	$	566	$	589	$	644	$	629	$	639	12.9		1.6

⁽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

June 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	53		%	14		%	19		%	8		%	4		%	—		%	2		%	$	30.1	34.6	%	$	(202	)	100% / 0%
Asset-backed securities	—			67			27			2			3			1			—			11.8		13.5		73			0% / 100%
Student loans	—			38			54			2			5			1			—			4.4		37.2		31
Credit cards	—			100			—			—			—			—			—			1.8		15.3		(16		)
Auto & equipment	—			75			24			1			—			—			—			0.8		6.8		1
Non-U.S. residential mortgage backed securities	—			77			14			5			2			2			—			3.3		28.0		55
Collateralized loan obligation	—			100			—			—			—			—			—			1.3		11.0		2
Other	—			28			72			—			—			—			—			0.2		1.7		—
Mortgage-backed securities	99			—			—			—			1			—			—			31.8		36.5		(638		)	97% / 3%
Agency MBS	100			—			—			—			—			—			—			31.5		99.1		(656		)
Non-agency MBS	—			36			1			1			17			38			7			0.3		0.9		18
CMBS	66			34			—			—			—			—			—			3.3		3.8		(49		)	59% / 41%
Corporate bonds	—			—			16			52			32			—			—			3.8		4.4		(30		)	93% / 7%
Covered bonds	—			100			—			—			—			—			—			2.0		2.3		5			12% / 88%
Municipal bonds	—			23			70			6			—			—			1			2.7		3.1		54			100% / 0%
Clipper tax-exempt bonds/other	—			14			61			19			6			—			—			1.6		1.8		21			5% / 95%
Total Portfolio	57		%	19		%	14		%	6		%	3		%	—		%	1		%	$	87.1	100.0	%	$	(766	)	80% / 20%

Book Value	$	49.6		$	16.3		$	12.4		$	5.0		$	2.8		$	0.3		$	0.7		$	87.1

⁽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 June 30, 2018 the after-tax unrealized MTM gain/(loss) includes after-tax unrealized loss on securities available-for-sale of $157 million, after-tax unrealized loss on securities held-to-maturity of $584 million and after-tax unrealized loss primarily related to securities previously transferred from available-for-sale to held-to-maturity of $25 million.



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

June 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	$	4.1	AA	$	1.2	$	1.4	$	0.7	$	0.4	$	0.4	$	—
Australia	3.3		AAA	1.5		0.9		—		0.3		0.4		0.2
Canada	2.5		AAA	2.0		—		—		0.2		0.3		—
France	2.2		AA	1.4		—		0.4		0.2		0.2		—
Belgium	1.5		AA	1.3		—		—		—		0.2		—
Italy	1.4		AAA	0.8		0.5		0.1		—		—		—
Japan	1.3		A	1.3		—		—		—		—		—
Spain	1.2		BBB	0.9		0.1		0.2		—		—		—
Netherlands	1.2		AAA	0.4		0.5		—		0.2		0.1		—
Ireland	1.0		A	1.0		—		—		—		—		—
Austria	0.9		AA	0.9		—		—		—		—		—
Germany	0.6		AAA	0.1		—		0.5		—		—		—
Finland	0.6		AA	0.5		—		—		—		0.1		—
Hong Kong	0.4		AA	0.4		—		—		—		—		—
Other	1.0		AA	0.3		—		—		0.4		0.3		—
Total Non-U.S. Investments⁽²⁾	$	23.2		$	14.0	$	3.4	$	1.9	$	1.7	$	2.0	$	0.2
U.S. Investments	63.9
Total Portfolio	$	87.1

⁽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			2Q18 vs. 2Q17			2Q18 vs. 1Q18			2Q17			2Q18			YTD 2Q18 vs. YTD 2Q17
Fee Revenue⁽¹⁾:
Total fee revenue, GAAP-basis⁽³⁾		$	2,198		$	2,235		$	2,242		$	2,230		$	2,378	$	2,358		5.5	%		(0.8	)%		$	4,433		$	4,736		6.8	%
	Less: Gain on sale	(30		)	—			(26		)	—			—		—									(30		)	—
Total fee revenue, Adjusted-GAAP basis		$	2,168		$	2,235		$	2,216		$	2,230		$	2,378	$	2,358		5.5			(0.8	)		$	4,403		$	4,736		7.6

Total Revenue⁽¹⁾:
Total revenue, GAAP-basis		$	2,668		$	2,810		$	2,846		$	2,846		$	3,019	$	3,026		7.7	%		0.2	%		$	5,478		$	6,045		10.4	%
	Less: Gain on sale	(30		)	—			(26		)	—			—		—									(30		)	—
Total revenue, Adjusted-GAAP basis		$	2,638		$	2,810		$	2,820		$	2,846		$	3,019	$	3,026		7.7			0.2			$	5,448		$	6,045		11.0

Expenses⁽¹⁾:
Total expenses, GAAP-basis		$	2,086		$	2,031		$	2,021		$	2,131		$	2,256	$	2,159		6.3	%		(4.3	)%		$	4,117		$	4,415		7.2	%
	Less: Acquisition and restructuring costs	(29		)	(71		)	(33		)	(133		)	—		—									(100		)	—
	Less: Repositioning costs	—			—			—			—			—		(77		)							—			(77		)
Total expenses, Adjusted-GAAP basis		$	2,057		$	1,960		$	1,988		$	1,998		$	2,256	$	2,082		6.2			(7.7	)		$	4,017		$	4,338		8.0

Fee Operating Leverage, GAAP-Basis:
Total fee revenue, GAAP-basis⁽²⁾		$	2,198		$	2,235		$	2,242		$	2,230		$	2,378	$	2,358		5.50	%		(0.84	)%		$	4,433		$	4,736		6.84	%
Total expenses, GAAP-basis		2,086			2,031			2,021			2,131			2,256		2,159			6.30			(4.30	)		4,117			4,415			7.24
Fee operating leverage, GAAP-basis																			(80	)	bps	346		bps							(40	)	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		5.50	%		(0.84	)%		$	4,403		$	4,736		7.56	%
Total expenses, Adjusted-GAAP basis (as reconciled above)		2,057			1,960			1,988			1,998			2,256		2,082			6.22			(7.71	)		4,017			4,338			7.99
Fee operating leverage, Adjusted-GAAP Basis																			(72	)	bps	687		bps							(43	)	bps

Operating Leverage, GAAP-Basis:
Total revenue, GAAP-basis		$	2,668		$	2,810		$	2,846		$	2,846		$	3,019	$	3,026		7.69	%		0.23	%		$	5,478		$	6,045		10.35	%
Total expenses, GAAP-basis		2,086			2,031			2,021			2,131			2,256		2,159			6.30			(4.30	)		4,117			4,415			7.24
Operating leverage, GAAP-basis																			139		bps	453		bps							311		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		7.69	%		0.23	%		$	5,448		$	6,045		10.96	%
Total expenses, Adjusted-GAAP basis (as reconciled above)		2,057			1,960			1,988			1,998			2,256		2,082			6.22			(7.71	)		4,017			4,338			7.99
Operating leverage, Adjusted-GAAP basis																			147		bps	794		bps							297		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			2Q18 vs. 2Q17			2Q18 vs. 1Q18			2Q17			2Q18			YTD 2Q18 vs. YTD 2Q17
Total revenue, GAAP-basis	$	2,668		$	2,810		$	2,846		$	2,846		$	3,019		$	3,026		7.7	%		0.2	%		$	5,478		$	6,045		10.4	%
Tax-equivalent adjustment associated with tax advantaged investments	70			89			79			78			66			68			(23.6	)		3.0			159			134			(15.7	)
Tax-equivalent adjustment associated with tax exempt investments	43			42			42			40			21			18			(57.1	)		(14.3	)		85			39			(54.1	)
Impact of tax legislation	—			—			—			20			—			—			—			—			—			—			—
Total revenue, historical Operating-basis	2,781			2,941			2,967			2,984			3,106			3,112			5.8			0.2			5,722			6,218			8.7
Provision for loan losses	(2		)	3			3			(2		)	—			2			(33.3	)		—			1			2			100.0
Total expenses, GAAP-basis	2,086			2,031			2,021			2,131			2,256			2,159			6.3			(4.3	)		4,117			4,415			7.2
Acquisition and restructuring costs	(29		)	(71		)	(33		)	(133		)	—			—			(100.0	)		—			(100		)	—			(100.0	)
Total expenses, historical Operating-basis	2,057			1,960			1,988			1,998			2,256			2,159			10.2			(4.3	)		4,017			4,415			9.9
Income before taxes, historical Operating-basis	$	726		$	978		$	976		$	988		$	850		$	951		(2.8	)		11.9			$	1,704		$	1,801		5.7
Less: Repositioning charges	—			—			—			—			—			(77		)	(100.0	)		(100.0	)		—			(77		)	(100.0	)
Income before taxes, historical Operating-basis excluding repositioning charges	$	726		$	978		$	976		$	988		$	850		$	1,028		5.1			20.9			$	1,704		$	1,878		10.2

Pre-tax margin, historical Operating-basis⁽¹⁾	26.1		%	33.3		%	32.9		%	33.1		%	27.4		%	30.6		%	(270	)	bps	320		bps	29.8		%	29.0		%	(80	)	bps
Pre-tax margin, historical Operating-basis less repositioning charges⁽²⁾	26.1			33.3			32.9			33.1			27.4			33.0			(30	)		560			29.8			30.2			40

⁽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
RECONCILIATION OF CONSTANT CURRENCY FX IMPACTS

GAAP-Basis Quarter Comparison	Reported							Currency Translation Impact					Excluding Currency Impact				% Change Constant Currency
(Dollars in millions)	2Q17		1Q18			2Q18		2Q18 vs. 2Q17		2Q18 vs. 1Q18			2Q18 vs. 2Q17		2Q18 vs. 1Q18		2Q18 vs. 2Q17		2Q18 vs. 1Q18
Fee revenue:
Servicing fees	$	1,339	$	1,421		$	1,381	$	18	$	(18	)	$	1,363	$	1,399	1.8	%	(1.5	)%
Management fees	397		472			465		3		(4		)	462		469		16.4		(0.6	)
Trading services	289		304			315		1		(3		)	314		318		8.7		4.6
Securities finance	179		141			154		—		—			154		154		(14.0	)	9.2
Processing fees and other⁽¹⁾	31		40			43		—		—			43		43		38.7		7.5
Total fee revenue	2,235		2,378			2,358		22		(25		)	2,336		2,383		4.5		0.2
Net interest income⁽¹⁾	575		643			659		11		(4		)	648		663		12.7		3.1
Gains (losses) related to investment securities, net	—		(2		)	9		—		(2		)	9		11		—		nm
Total revenue	$	2,810	$	3,019		$	3,026	$	33	$	(31	)	$	2,993	$	3,057	6.5		1.3

Expenses:
Compensation and employee benefits	$	1,071	$	1,249		$	1,125	$	11	$	(15	)	$	1,114	$	1,140	4.0		(8.7	)
Information systems and communications	283		315			321		1		(1		)	320		322		13.1		2.2
Transaction processing services	207		242			246		2		(2		)	244		248		17.9		2.5
Occupancy	116		120			124		2		(2		)	122		126		5.2		5.0
Acquisition and restructuring costs	71		—			—		—		—			—		—		(100.0	)	—
Other	283		330			343		5		(4		)	338		347		19.4		5.2
Total expenses	$	2,031	$	2,256		$	2,159	$	21	$	(24	)	$	2,138	$	2,183	5.3		(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	$	2,635		$	2,802	$	68	$	2,734	3.8	%
Management fees	779			937		14		923		18.5
Trading services	564			619		8		611		8.3
Securities finance	312			295		1		294		(5.8	)
Processing fees and other⁽¹⁾	143			83		2		81		(43.4	)
Total fee revenue	4,433			4,736		93		4,643		4.7
Net interest income⁽¹⁾	1,085			1,302		15		1,287		18.6
Gains (losses) related to investment securities, net	(40		)	7		—		7		(117.5	)
Total revenue	$	5,478		$	6,045	$	108	$	5,937	8.4

Expenses:
Compensation and employee benefits	$	2,237		$	2,374	$	45	$	2,329	4.1
Information systems and communications	570			636		5		631		10.7
Transaction processing services	404			488		6		482		19.3
Occupancy	226			244		7		237		4.9
Acquisition and restructuring costs	100			—		—		—		(100.0	)
Other	580			673		15		658		13.4
Total expenses	$	4,117		$	4,415	$	78	$	4,337	5.3

⁽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
Consolidated total assets		$	236,802		$	238,274		$	235,986		$	238,425		$	250,286		$	248,308
Less:
Goodwill		5,855			5,945			5,997			6,022			6,068			5,973
Other intangible assets		1,710			1,693			1,658			1,613			1,578			1,500
Cash balances held at central banks in excess of required reserves		59,780			56,326			51,965			56,712			62,901			64,640
Adjusted assets		169,457			174,310			176,366			174,078			179,739			176,195
Plus related deferred tax liabilities		649			651			647			479			477			465
Total tangible assets	A	$	170,106		$	174,961		$	177,013		$	174,557		$	180,216		$	176,660
Consolidated total common shareholders' equity		$	18,098		$	18,872		$	19,301		$	19,121		$	19,203		$	19,375
Less:
Goodwill		5,855			5,945			5,997			6,022			6,068			5,973
Other intangible assets		1,710			1,693			1,658			1,613			1,578			1,500
Adjusted equity		10,533			11,234			11,646			11,486			11,557			11,902
Plus related deferred tax liabilities		649			651			647			479			477			465
Total tangible common equity	B	$	11,182		$	11,885		$	12,293		$	11,965		$	12,034		$	12,367
Tangible common equity ratio	B/A	6.6		%	6.8		%	6.9		%	6.9		%	6.7		%	7.0		%

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

STATE STREET CORPORATION

EARNINGS RELEASE ADDENDUM

REGULATORY CAPITAL



	Quarters
	1Q17						2Q17						3Q17						4Q17						1Q18						2Q18
(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⁾
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		%
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
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
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

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
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
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		%

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
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
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		%

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
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
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		%

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
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
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		%
⁽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.

As of June 30, 2018 (Dollars in millions)					State Street						State Street Bank
					Fully Phased-In SLR						Fully Phased-In SLR
Tier 1 Capital				A	$	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				B	250,160						247,834
Supplementary Leverage Ratio				A/B	6.2		%				6.8		%


As of March 31, 2018 (Dollars in millions)					State Street						State Street Bank
					Fully Phased-In SLR						Fully Phased-In SLR
Tier 1 Capital				C	$	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				D	252,362						249,733
Supplementary Leverage Ratio				C/D	6.0		%				6.5		%


As of December 31, 2017 (Dollars in millions)	State Street							State Street Bank
	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	15,382		E	$	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	236,986			F	236,708			233,790			233,519
Supplementary Leverage Ratio	6.5		%	E/F	6.4		%	7.1		%	7.0		%


As of September 30, 2017 (Dollars in millions)	State Street							State Street Bank
	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	15,606		G	$	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	240,636			H	240,366			237,579			237,319
Supplementary Leverage Ratio	6.5		%	G/H	6.4		%	6.9		%	6.8		%



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

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	$	15,165		I	$	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	243,910			J	243,705			240,919			240,722
Supplementary Leverage Ratio	6.2		%	I/J	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	$	14,475		K	$	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	238,146			L	237,877			235,141			234,880
Supplementary Leverage Ratio	6.1		%	K/L	6.0		%	6.6		%	6.5		%

Exhibit 99.3 Second Quarter 2018 Financial Highlights July 20, 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 second 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 July 20, 2018, 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

Highlights All comparisons are to prior year periods • Strong 1H18 AUCA and AUM growth resulting from market appreciation, new business and client flows Growing • 1H18 new servicing business wins of ~$1.5T, including ~$105B in 2Q18 driven by continued client demand1 Our Core • Strong custody client volumes in FX led to trading services growth Franchise − Global Markets momentum continues: #1 FX provider to asset managers in the Euromoney (Real Money) FX Survey with the best overall customer satisfaction rating • Investing in the future while reducing legacy costs • Charles River Development acquisition positions State Street as a leading provider of A investment software, and the industry’s first everfront-middle-back office servicing solution Advancing • Continue to monetize digitization and build on the success of Beacon: Our Digital − Beacon 2Q18 net savings of ~$60M; expect FY2018 savings of ~$200M, exceeding Leadership previously announced guidance of $150M − Next phase of efficiency opportunities related to organizational realignment and management delayering • 2Q18 revenue growth and disciplined cost management have driven strong EPS and ROE results Achieving − EPS growth of 23% and ROE of 14.7%, up 2.1%pts Our Financial − Solid fee revenue growth of 6% driven by market appreciation, new business and higher Targets and trading activity, as well as strong net interest income growth of 15% from higher U.S. Returns interest rates and disciplined liability pricing − Active expense management calibrated to the revenue environment A Offered as a single provider Refer to the Appendix included with this presentation for endnotes 1 to 7. 3

Summary of 2Q18 results Quarters % ∆ ($M, except EPS data, or where otherwise noted) 2Q18 1Q18 2Q17 2Q17 1Q18 Revenue: Servicing fees $1,381 $1,421 $1,339 3% (3)% Management feesA 465 472 397 17 (2) Trading services 315 304 289 9 4 Securities finance 154 141 179 (14) 9 Notable Items Processing fees and other 43 40 31 39 8 Pre-tax impact 2Q18 1Q18 2Q17 A increase (decrease) Total fee revenue 2,358 2,378 2,235 6 (1) B Expenses: Net interest income 659 643 575 15 3 Compensation and (61) - - Gains (losses) related to investment securities, net 9 (2) - - nm employee benefits Total revenue $3,026 $3,019 $2,810 8% 0% Occupancy (16) - - Provision for loan losses 2 - 3 (33) - Acquisition and Expenses: - - (71) restructuring costs Compensation and employee benefitsC 1,125 1,249 1,071 5 (10) Information systems and communications 321 315 283 13 2 Total EPS impact: $(0.17) - $(0.14) Transaction processing servicesA 246 242 207 19 2 OccupancyC 124 120 116 7 3 • 2Q18 reflects a repositioning charge of Acquisition and restructuring costs - - 71 (100) - $77M including: OtherA 343 330 283 21 4 − $61M in compensation and employee Total expensesA $2,159 $2,256 $2,031 6% (4)% benefits and $16M in occupancy related to Income before income tax expense $865 $763 $776 12% 13% organizational realignment and Income tax expense (benefit) 131 102 156 (16) 28 management delayering Net income $734 $661 $620 18% 11% Dividends on preferred stock (36) (55) (36) - (35) Net income available to common shareholders $698 $605 $584 20% 15% Diluted earnings per share $1.88 $1.62 $1.53 23% 16% Return on average common equity 14.7% 12.8% 12.6% 2.1%pts 1.9%pts A Effects of the new revenue recognition standard (ASU 2014-09) increased 2Q18 Total fee revenue and Total expenses by ~$70M each. Relative to 2Q17, the new revenue A recognition standard contributed 3% to both total fee revenue growth and expense growth, and relatively flat to 1Q18. The revenue impact was ~$45M in Management fees, A ~$20M in Trading services, and ~$5M across other revenue line items. The expense impact was ~$15M in Transaction processing, ~$45M in Other expenses, and ~$10M A across 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 charge of $77M is reflected in Compensation and employee benefits ($61M) and Occupancy ($16M). 4

Generated strong earnings growth and return on equity driven by fee revenue and solid net interest income growth GAAP unless noted otherwise Diluted EPS ROE ($) (%) +31% +2.4%pts +2.1%pts 3.51 14.7 13.7 13.0 12.8 +23% 12.6 11.3 2.69 1.88 1.53 1.66 1.62 6.9 0.89 2Q17 3Q17 4Q17 1Q18 2Q18 1H17 1H18 2Q17 3Q17 4Q17 1Q18 2Q18 1H17 1H18 Financial Highlights 2Q18 compared to 2Q17 1H18 compared to 1H17 EPS Growth of 23% Growth of 31% ROE Improved 2.1%pts Improved 2.4%pts Operating leverage Positive operating leverage of 1.4%pts Positive operating leverage of 3.1%pts Fee operating leverage Fee operating leverage of (0.8)%pts Fee operating leverage of (0.4)%pts Pre-tax margin Pre-tax margin of 28.6% increased 1.0%pts Pre-tax margin of 26.9% increased 2.1%pts 5

AUCA and AUM growth driven by equity market appreciation and client momentum Assets Under Custody Assets Under and Administration (AUCA) Management (AUM) ($T, as of period-end) ($B, as of period-end) +9% +5% 33.1 33.3 33.9 2,673 2,782 2,729 2,723 31.0 32.1 2,606 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18 • 9% increase from 2Q17 primarily reflects: • 5% increase from 2Q17 primarily reflects: − Growth from market appreciation and client activity − Growth from market appreciation, as well as ETF − Strong flows into global ETFs, EMEA funds and inflows, partially offset by lower-yielding institutional middle office outsourcing outflows − Several large client installations underway, partially • Decreased modestly from 1Q18 as growth from market offset by a previously announced client transition appreciation was offset lower-yielding institutional outflowsA A Changes to AUM also reflect FX translation. 6

Fee revenue growth driven by equity market appreciation, new business and client activity Fee Revenue ($M) 2Q18 vs 2Q17 +6% Solid fee revenue growth of 6% +5% ex FX YoY • Servicing fees increased mainly due to higher equity 2,378 2,358 % ∆ 2,235 2,242 2,230 market levels, client activity and new business • Management feesA increased primarily driven by higher equity market levels and the adoption of the new revenue 1,381 3% 1,339 recognition accounting standard • Trading servicesA increased largely driven by higher FX client volumes 397 465 17% • Securities finance decreased primarily driven by lower seasonal activity 289 315 9% (14)% • Processing fees and other increased largely reflecting 179 154 31 43 39% lower amortization related to tax-advantaged investment activity and higher software fees 2Q17 3Q17 4Q17 1Q18 2Q18 • Favorable currency translation positively impacted Total fee revenue by $22M 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 2Q18 Total fee revenue by ~$70M. The revenue impact was ~$45M in Management fees, ~$20M A in Trading services, and ~$5M across other revenue line items. 7

Continued NII and NIM expansion driven by higher U.S. interest rates and disciplined liability pricing GAAP unless noted otherwise A NII & NIM 2Q18 vs 2Q17 (NII $M, NIM %) NII (FTE) +10% NIM (FTE) +19bps B • NII increased primarily due to higher U.S. interest rates 664 677 617 645 656 and disciplined liability pricing, partially offset by a mix shift to HQLA assets 1.46 1.40 1.35 1.38 1.27 • NIM increased mainly driven by higher U.S. interest rates, disciplined liability pricing, and smaller interest earning 2Q17 3Q17 4Q17 1Q18 2Q18 asset base GAAP B YoY 575 603 616 643 659 NII +15% Average Interest-Earning Assets & Deposits 2 Q18 vs 2Q17 ($B) 2Q17 3Q17 4Q17 1Q18 2Q18 • Interest earning assets reduction related to investment Total assets 224 218 216 227 224 portfolio repositioning Interest-earning 195 190 188 193 186 • Total deposits were approximately 60% USD, 20% EUR, assets 10% GBP and 10% in other currencies Total deposits 167 162 161 165 163 A NII is presented on both a fully taxable-equivalent (FTE) basis and GAAP-basis; NIM is only presented on an FTE-basis. Please refer to the Addendum for reconciliations A 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

Expense growth reflects continued investments in the future while reducing legacy costs Expenses ($M) 2Q18 vs 2Q17 +6%A +5% ex FX Active expense management calibrated to the current B 2,256 C YoY revenue environment 2,131 2,159 % ∆ 2,031 2,021 • Compensation and employee benefitsC decreased primarily driven by: 1,155 1,249 1,125 (1)% − Savings from Beacon and lower performance-based 1,131 1,114 incentive compensation − Partially offset by costs to support new business and 315 321 13% 285 296 322 annual merit increases 242 246 19% 207 215 219 • Information systems and communications increased 141 120 124 7% 116 9 127 mainly due to Beacon-related investments and costs to 283 269 294 330 343 21% support new business 2Q17 3Q17 4Q17 1Q18 2Q18 • Transaction processingB increased primarily reflecting C,D Restructuring and repositioning costs higher client volumes and market levels 62 33 133 - 77 • OccupancyC increased largely reflecting repositioning charge • Unfavorable currency translation negatively impacted • OtherB increased mainly due to the adoption of the new Total expenses by $21M revenue recognition accounting standard • 2Q18 includes $77M of repositioning charge related to organizational realignment and management delayeringC Compensation and Information systems Transaction Occupancy Acquisition Costs Other employee benefits and communications processing A Effects of the new revenue recognition standard (ASU 2014-09) increased 2Q18 Total expenses by ~$70M. The expense impact was ~$15M in Transaction processing, A ~$45M in Other expenses, and ~$10M across other expense line items. B 1Q18 included $148M of seasonal deferred incentive compensation expense for retirement-eligible employees and payroll taxes. C 2Q18 repositioning charge of $77M is reflected in Compensation and employee benefits ($61M) and Occupancy ($16M) within our financial statements included C in the Addendum. D Restructuring charges in 2Q17, 3Q17 and 4Q17 have been allocated to individual expense lines for illustrative purposes in this presentation to align with the presentation of 9 D repositioning charge in 2Q18. Please refer to endnote 2 for additional details.

Beacon continues to deliver client benefits and operational efficiencies 1H18 Beacon Savings Building on the success of Beacon: 1H18 $M 1Q18 2Q18 1H18 ~% • Continue to monetize digitization Optimization 35 39 74 49% accomplishments, reduce manual work IT Transformation 15 16 31 21% and processing, and centralize critical Corporate & SSGA 23 23 46 30% functions YoY ∆ in gross 73 78 151 100% Beacon savings • Focus on achieving greater organizational effectiveness and management delayering YoY ∆ in Beacon 15 19 34 investment to advance the standardization and globalization of our business YoY net 58 59 117 Beacon savings − 2Q18 $77M repositioning charge related to management headcount reductions • Achieved 1H18 Beacon net savings of and optimizing real estate footprint with a $117M, for a total of $442M Beacon saves projected payback of ~$77M in just over program to date against a target of $550M one year • Expect to achieve FY 2018 saves of ~$200M, exceeding initial guidance of $150M 10

Investment portfolio and capital position highlights Investment Portfolio Highlights Quarter-End Capital Positions ($B, as of June 30, 2018) (%, Fully phased-in as of period-end) Capital Ratios 3,4,5,6 12.3% 12.0% 12.1% 12.4% $97.5B 11.7% $87.1B $85.6B 11.3% 11.6% 11.3% 10.9% 10.8% Non- Non- Non- Non- 7.3% HQLA Non- HQLA 6.9% 7.2% 6.9% 7.1% HQLA HQLA 39% HQLA 24% 24% 30% 30% 6.1% 6.4% 6.4% 6.0% 6.2% HQLA HQLA HQLA HQLA HQLA 76% 61% 70% 70% 76% 2Q17 3Q17 4Q17 1Q18 2Q18 Tier 1 Leverage SLR Standardized CET1 Advanced CET1 4Q17 1Q18 2Q18 CCAR 2018: Received non-objection to capital plan • Duration: 3.2 years in 2Q18 • 12% increase in dividend to $0.47 per quarter, beginning • Interest-rate risk metric: 3Q18; $1.2B share buyback program approved − In a hypothetical +100bps shock to quarter-end spot • Charles River Development acquisition incorporated interest rates, the unrealized after-tax available-for-sale based on equity neutral financing, including buyback mark-to-market (MTM) loss sensitivity is ~($1.2B) suspension and common and preferred stock issuance Refer to the Appendix included with this presentation for endnotes 1 to 6. 11

1H18 summary GAAP unless noted otherwise; All comparisons are to 1H17 Strong first half of 2018 • EPS growth of 31% and ROE of 13.7%, up 2.4%pts • Business momentum continues: – Announced solid new servicing business wins of ~$1.5T7 – Fee revenue growth of 7%A driven by market appreciation, new business, and strong trading activity – NII growth of 20% driven by higher U.S. interest rates and disciplined liability pricing – Expense growth of 7%A largely driven by costs to support new business, calibrated to the revenue environment by adjusting performance based compensation • Investing in the future while reducing legacy costs – Charles River Development acquisition positions State Street as a leading provider of investment B software, and first ever front-middle-back office servicing solution – Beacon net savings of $117M YTD; expect ~$200M in savings for FY2018, exceeding previously announced guidance of $150M • Positioned to achieve 2018 financial objectives; reconfirming our full year outlook A Relative to 1H17, the impact of the new revenue recognition standard and FX translation contributed 3% and 1%, respectively, to both total fee revenue growth and expense A growth. B Offered as a single provider Refer to the Appendix included with this presentation for endnotes 1 to 6. 12

Appendix Summary of 1H18 results 14 2Q18 vs 1Q18 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 1H18 results Quarters Quarters 1Q18 v 2Q18 v 1H18 v ($M, except EPS data, or where otherwise noted) 1H18 1H17 1Q18 2Q18 1Q17 2Q17 1Q17 % ∆ 2Q17 % ∆ 1H17 % ∆ Revenue: Servicing fees $1,421 $1,381 $2,802 $1,296 $1,339 $2,635 10% 3% 6% Management feesA 472 465 937 382 397 779 23 17 20 Trading services 304 315 619 275 289 564 11 9 10 Securities finance 141 154 295 133 179 312 6 (14) (5) Processing fees and otherB 40 43 83 112 31 143 (64) 39 (42) Total fee revenueA 2,378 2,358 4,736 2,198 2,235 4,433 8 6 7 Net interest incomeB 643 659 1,302 510 575 1,085 26 15 20 Gains (losses) related to investment securities, net (2) 9 7 (40) - (40) (95) nm (118) Total revenue $3,019 $3,026 $6,045 $2,668 $2,810 $5,478 13% 8% 10% Provision for loan losses - 2 2 (2) 3 1 nm nm nm Expenses: Compensation and employee benefitsC 1,249 1,125 2,374 1,166 1,071 2,237 7 5 6 Information systems and communications 315 321 636 287 283 570 10 13 12 Transaction processing servicesA 242 246 488 197 207 404 23 19 21 OccupancyC 120 124 244 110 116 226 9 7 8 Acquisition and restructuring costs - - - 29 71 100 (100) (100) (100) OtherA 330 343 673 297 283 580 11 21 16 Total expensesA $2,256 $2,159 $4,415 $2,086 $2,031 $4,117 8% 6% 7% Income before income tax expense $763 $865 $1,628 $584 $776 $1,360 31% 11% 20% Income tax expense (benefit) 102 131 233 82 156 238 24 (16) (2) Net income $661 $734 $1,395 $502 $620 $1,122 32% 18% 24% Dividends on preferred stock (55) (36) (91) (55) (36) (91) - - - Net income available to common shareholders $605 $698 $1,303 $446 $584 $1,030 36% 20% 27% Diluted earnings per share $1.62 $1.88 $3.51 $1.15 $1.53 $2.69 41% 23% 31% Return on average common equity 12.8% 14.7% 13.7% 9.9% 12.6% 11.3% 2.9%pts 2.1%pts 2.4%pts A Effects of the new revenue recognition standard (ASU 2014-09) increased 1H18 Total fee revenue and Total expenses by ~$135M each. Relative to 1H17, the new revenue A recognition standard contributed 3% to both total fee revenue growth and expense growth. The revenue impact was ~$85M in Management fees, ~$40M in Trading A services, and ~$10M across other revenue line items. The expense impact was ~$30M in Transaction processing, ~$90M in Other expenses, and ~$15M across other A 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 charge of $77M are reflected in Compensation and employee benefits ($61M) and Occupancy ($16M) 14

Fee revenue flat as lower equity market levels offsets higher trading activity Fee Revenue ($M) 2Q18 vs 1Q18 -1% A Flat ex FX Fee revenue flat in light of neutral market returns and muted client asset flows QoQ 2,378 2,358 % ∆ • Servicing fees decreased primarily due to lower equity 2,235 2,242 2,230 market levels and client transitions • Management feesA decreased primarily due to lower equity market levels 1,421 1,381 (3)% • Trading servicesA increased primarily driven by higher FX client volumes • Securities finance increased mainly driven by 465 (2)% 472 seasonality 315 4% 304 9% • Processing fees and other increased largely driven by 141 154 8% 40 43 higher software fees 2Q17 3Q17 4Q17 1Q18 2Q18 • Unfavorable currency translation negatively impacted Total fee revenue by $25M 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 1Q18 and 2Q18 Total fee revenue by ~65M and ~$70M, respectively. 15

Continued NII and NIM growth driven by higher U.S. interest rates and disciplined liability pricing GAAP unless noted otherwise A NII & NIM 2Q18 vs 1Q18 (NII $M, NIM %) NII (FTE) +2% NIM (FTE) +6bps • NII increased primarily due to higher U.S. interest rates B 645 656 664 677 and disciplined liability pricing, partially offset by a shift to 617 HQLA assets 1.46 1.40 1.35 1.38 1.27 • NIM increased driven by higher U.S. interest rates, disciplined liability pricing, and smaller balance sheet 2Q17 3Q17 4Q17 1Q18 2Q18 GAAP B QoQ 575 603 616 643 659 NII +2% Average Interest-Earning Assets & Deposits 2Q18 vs 1Q18 ($B) 2Q17 3Q17 4Q17 1Q18 2Q18 Total assets 224 218 216 227 224 • Interest earning assets reduction driven by investment portfolio repositioning Interest-earning 195 190 188 193 186 • Total deposits were approximately 60% USD, 20% EUR, assets 10% GBP and 10% in other currencies Total deposits 167 162 161 165 163 A NII is presented on both a fully taxable-equivalent (FTE) basis and GAAP-basis; NIM is only presented on an FTE-basis. Please refer to the Addendum for reconciliations A 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

Decline in expenses driven by lower incentive compensation offset by repositioning charge Expenses ($M) 2Q18 vs 1Q18 -4% A -3% ex FX Active expense management [resulted in modestly B QoQ lower underlying expenses] 2,256 C 2,131 2,159 % ∆ A 2,031 2,021 • Compensation and employee benefits decreased primarily due to lower incentive compensation and savings from Beacon, partially offset by repositioning 1,249 1,125 (10)% 1,131 1,114 1,155 charge • Information systems and communications increased 321 2% 285 296 322 315 mainly due to Beacon-related investments 246 2% A 207 215 219 242 • Occupancy increased primarily reflecting repositioning 116 141 120 124 3% 9 127 charge partially offset by the right-sizing of the real estate 283 269 294 330 343 4% footprint 2Q17 3Q17 4Q17 1Q18 2Q18 A • Other increased largely reflecting higher Beacon-related D Restructuring and repositioning costs investments and regulatory costs 62 33 133 - 77 • Favorable currency translation positively impacted Total expenses by $24M • 2Q18 includes $77M of repositioning charge related to organizational realignment and management delayeringC Compensation and Information systems Transaction Occupancy Acquisition costs Other employee benefits and communications processing A Effects of the new revenue recognition standard (ASU 2014-09) increased 2Q18 Total expenses by ~$70M. The expense impact was ~$15M in Transaction processing, A ~$45M in Other expenses, and ~$10M across other expense line items. B 1Q18 included $148M of seasonal deferred incentive compensation expense for retirement-eligible employees and payroll taxes. C 2Q18 repositioning charges of $77M are reflected in Compensation and employee benefits ($61M) and Occupancy ($16M) within our financial statements included C in the Addendum. D Restructuring charges in 2Q17, 3Q17 and 4Q17 have been allocated to individual expense lines for illustrative purposes in this presentation to align with the presentation of 17 D repositioning charges in 2Q18. Please refer to endnote 2 for additional details.

Slide endnotes 1 These amounts exclude new business which has been contracted, but for which the client has not yet provided permission to publicly disclose and for which the installation date extends beyond one quarter. 2 2Q17 restructuring charges of $62M have been allocated to compensation and employee benefits ($60M) and information systems and communications ($2M). 3Q17 restructuring charges of $33M have been allocated to compensation and employee benefits ($24M) and occupancy ($9M). 4Q17 restructuring charges of $133M have been allocated to compensation and employee benefits ($88M), information systems and communications ($21M) and occupancy ($24M). 3 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. June 30, 2018 capital ratios are presented as of quarter-end and are preliminary estimates. 4 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. 5 Estimated pro-forma fully phased-in ratios as of June 30, 2017, 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. 6 Estimated pro-forma fully phased-in SLRs as of June 30, 2017, 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. 7 We expect that for the remainder of the year newly announced asset servicing mandates will return to levels more commonly reflected historically. 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. 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 July 20, 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, including our proposed acquisition of Charles River Development, and our 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 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 should not by relied on as representing our expectations or beliefs as of any time subsequent to the time this presentation is first issued, 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 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. 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 ability of selling before it reaches maturity AUCA Assets under custody and administration AUM Assets under management Bps Basis points Diluted earnings per share (EPS) Net income available to common shareholders divided by diluted average common shares outstanding 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 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 TCJA Tax Cuts & Jobs Act YoY Current quarter compared to the same period a year ago 21



Exhibit No.	Description
99.1	State Street's news release dated July 20, 2018, announcing its second-quarter 2018 results of operations (this Exhibit 99.1 is furnished, not filed)
99.2	State Street's second-quarter 2018 financial information addendum (this Exhibit 99.2 is furnished, not filed)
99.3	Slide presentation providing highlights of State Street's second-quarter 2018 results of operations and related information as of June 30, 2018 (this Exhibit 99.3 is furnished, not filed)