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Proc-Type: 2001,MIC-CLEAR
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SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 Date of Report: July 31, 2003 State Street
Corporation (Exact Name of Registrant as Specified in its Charter) Massachusetts 0-5108 04-2456637 (State of Incorporation) (Commission File Number) (IRS Employer
Identification Number) 225 Franklin
Street, Boston, Massachusetts (Address of principal executive offices) Registrant's telephone number, including area code: (617) 786-3000 Item 5. Other Events. On July 31, 2003, Registrant issued a statement that six months after it acquired
Deutsche Banks Global Securities Services business (GSS), its integration is on
schedule and the company expects to meet its goal of retaining 90% of the revenue
available from former Deutsche clients. The press release issued by Registrant is filed herewith as Exhibit 99.1 and is
incorporated herein by reference. Item 7. Financial Statements and Exhibits. (c) Exhibits. 99.1
Form of press release dated July 31, 2003 Signatures 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. Date: August 1, 2003 2 EXHIBIT INDEX Exhibit 99.1 Form of press release dated July 31, 2003 3 225 Franklin Street
02110
(Zip code)
STATE STREET CORPORATION
By: /s/Frederick P. Baughman
Name:
Frederick P. Baughman
Title:
Senior Vice President, Controller
and Chief Accounting Officer
News Release
Boston, MA 02110-2804
United States of America
For Release: | FOR IMMEDIATE RELEASE | ||||
Contact: |
Investors and Analysts: | Kelley MacDonald | Media: | Hannah Grove | |
+1 617/664-2888 | +1 617/664-3377 | ||||
State Street Provides Update on Integration of Global
Securities Services
Business on Six-Month Anniversary of Closing of the Acquisition
Company Remains on Track to Retain 90% of Client Revenue
__________________________________
Boston, Mass. July 31, 2003 -- State Street Corporation (NYSE: STT), the world's leading specialist in meeting the needs of institutional investors, reported today that six months after it acquired Deutsche Banks Global Securities Services business (GSS), its integration is on schedule and the company expects to meet its goal of retaining 90% of the revenue available from former Deutsche clients.
Ronald E. Logue, State Streets president and COO, said, State Street has made great progress in bringing our new GSS clients on board. These clients have been extremely satisfied with the ease of the transition process and have responded very favorably to State Street becoming their new investment services partner.
State Street anticipates that the full integration will be completed on schedule by the middle of 2004. By the beginning of August, State Street will have completed over 375 client conversions. In addition to Deutsche Asset Management, State Street is transitioning a broad range of clients to its systems, including Anheuser-Busch, Frank Russell, Johns Hopkins University and PacifiCorp.
With our operational and financial objectives well on the way to being met, we are confident that our long-term goals of broadening our global client base, establishing a leadership position in the strategically important European marketplace, gaining considerable economies of scale, and expanding the range of our product and services offerings are being met, said Logue.
On July 15th, the company reported that, based on the second-quarter 2003 operations, the businesses acquired, excluding out-of-scope revenue and expenses, are generating approximately $580 million of annualized revenue and about $532 million of annualized expenses. These results do not include revenue and expenses associated with the GSS business in Italy, which closed this month, and Austria.
Logue concluded, As we expected a few GSS clients have chosen to consolidate their servicing with other providers, such as several of the Federal Home Loan Banks in the United States representing approximately $170 billion in assets. As of today, approximately 5% of total client revenue is planning to transition to other providers an increase of about 1% since the last update we provided in June. Successfully managing complex integrations while continuing to win new business and maintaining excellent service for existing clients is a tribute to a great team of professionals around the world who keep State Street at the forefront of the industry. We intend to continue to draw on our extensive experience and deep bench of talent to benefit our clients and deliver superior value to our stockholders.
State Street Corporation (NYSE: STT) is the world's leading specialist in providing sophisticated global investors with investment servicing, investment management, research & analytics and trading services. With $8.5 trillion in assets under custody and $901 billion in assets under management, State Street operates in 22 countries and over 100 markets worldwide. For more information, visit State Street's web site at www.statestreet.com
This news
announcement contains forward-looking statements as defined by United States securities
laws, including statements about the financial outlook and business environment. Those
statements are based on current expectations and involve a number of risks and
uncertainties, including those related to the pace at which State Street adds new clients
or at which existing clients use additional services, the value of global and regional
financial markets, the pace of cross-border investment activity, changes in interest
rates, the pace of worldwide economic growth and rates of inflation, the extent of
volatility in currency markets, consolidations among clients and competitors, State
Streets business mix, the dynamics of markets State Street serves, and State
Streets success at integrating and converting acquisitions into its business. Other
important factors that could cause actual results to differ materially from those
indicated by any forward-looking statements are set forth in State Street's 2002 annual
report and subsequent SEC filings. State Street encourages investors to read the
corporation's annual report, particularly the section on factors that may affect financial
results, and its subsequent SEC filings for additional information with respect to any
forward-looking statements and prior to making any investment decision. The
forward-looking statements contained in this press release speak only as of the date
hereof, July 31, 2003, and the company will not undertake efforts to revise those
forward-looking statements to reflect events after this date.
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