8-K

UNITED STATES

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 (Date of earliest event reported): July 27, 2016

______________________

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

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act

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

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

Item 2.02.Results of Operations and Financial Condition.

On July 27, 2016, State Street Corporation issued a news release announcing its results of operations for the second quarter of 2016. Copies of that news release and accompanying second-quarter 2016 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 27, 2016, State Street Corporation made available a slide presentation providing highlights of State Street's second-quarter 2016 results of operations and related information as of June 30, 2016, which is being made available in connection with a July 27, 2016 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.

(d)    Exhibits.

State Street Corporation's news release dated July 27, 2016, announcing its second-quarter 2016 results of operations and accompanying second-quarter 2016 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 2016 results of operations and related information as of June 30, 2016, which is being made available in connection with a July 27, 2016 investor conference call, is furnished herewith as Exhibit 99.3 and is incorporated by reference in Item 7.01 hereof.

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.

			STATE STREET CORPORATION
		By:	/s/ SEAN P. NEWTH
		Name:	Sean P. Newth
		Title:	Senior Vice President, Chief Accounting Officer and Controller
Date:	July 27, 2016

EXHIBIT INDEX

Exhibit No.	Description
99.1	State Street's news release dated July 27, 2016, announcing its second-quarter 2016 results of operations (this Exhibit 99.1 is furnished, not filed)
99.2	State Street's second-quarter 2016 financial information addendum (this Exhibit 99.2 is furnished, not filed)
99.3	Slide presentation providing highlights of State Street's second-quarter 2016 results of operations and related information as of June 30, 2016 (this Exhibit 99.3 is furnished, not filed)

EX-99.1

Exhibit 99.1

One Lincoln Street

Boston, MA 02111

News Release

Investor Contact: Anthony Ostler	Media Contact: Hannah Grove
+1 617/664-3477	+1 617/664-3377

STATE STREET REPORTS SECOND-QUARTER 2016 GAAP-BASIS EPS OF $1.47

ON LOWER EXPENSES COMPARED TO THE SECOND QUARTER OF 2015

Second-quarter 2016 operating-basisEPS was $1.46

on lower operating-basis expenses compared to the second quarter of 2015

As previously disclosed, authorized to purchase up to $1.4 billion

of common stock through June 30, 2017 and, subject to board approval, intends to

increase quarterly common stock dividend to $0.38 per share

Boston, MA ...July 27, 2016

In announcing today's financial results, Joseph L. Hooley, State Street's Chairman and Chief Executive Officer said, "We are pleased with our strong second-quarter results, which reflect strong fee revenue growth compared to the first quarter, driven by growth in our core asset servicing and asset management fees. Demand remains robust across our global client base as demonstrated by new servicing commitments of approximately $750 billion, including our appointment by Deka Bank and Allianz Global Investors to provide a range of investment services for $583 billion in assets. Our focus on expenses generated a decrease in expenses compared to the second quarter of 2015. These results also reflect our success to date in implementing our multi-year digital transformation program,State Street Beacon, which is delivering savings and efficiencies, as well as new product innovations for our clients.”

Hooley added, “Although it is still early days following the Brexit vote, we view the diverse and complex $30 trillion European investment market as a significant opportunity that we are well positioned for, given the scope and footprint of our European operations. Therefore, our long-term outlook for our European operations has not been materially impacted by the referendum, other than the impact of anticipated persistence of lower market interest rates.”

1

Hooley continued, "We completed our acquisition of GE Asset Management. This transaction is a key step in our plan to invest in higher growth and return businesses. It is also an important part of SSGA’s continued evolution as a premier provider of solutions to clients.”

Hooley concluded, "We continue to prioritize returning capital to our shareholders. During the second quarter of 2016, we purchased a total of $390 million of our common stock under our prior common stock purchase program announced in March 2015. Earlier this month, our Board of Directors approved a $1.4 billion common stock purchase program following the Federal Reserve's review of our capital plan under its 2016 Comprehensive Capital Analysis and Review (CCAR) process. Our 2016 capital plan also includes an increase of approximately 12% in our quarterly common stock dividend to $0.38 per share starting in the third quarter of 2016."

2Q16 Highlights:

• Expense Management: Reflecting a focus on prudent expense management, 2Q16 GAAP-Basis expenses decreased compared to 2Q15.

• Currency impact: Compared to the second quarter of 2015, the strengthening of the U.S. dollar reduced our fee revenue outside of the U.S. by approximately $10 million, but a similar benefit to expenses offset the currency impact on our bottom line.

• New business^(a): New asset servicing mandates during the second quarter of 2016 totaled$750 billion. In our asset management business, we experienced net outflows of $35 billion during the second quarter of 2016.

• Capital^(b): Our common equity tier 1 ratios as of June 30, 2016 were 12.0% and 12.0%, calculated under the advanced approaches and standardized approach, respectively, in conformity with the Basel III final rule. On a fully phased-in basis, our estimated pro forma Basel III common equity tier 1 ratios as of June 30, 2016 were 11.6% and 11.5%, calculated under the advanced approaches and standardized approach, respectively, in conformity with the Basel III final rule.

• Return of capital to shareholders^(c): We purchased approximately $390 million of our common stock at an average price of $59.66 per share in the second quarter of 2016. In addition, we declared a quarterly common stock dividend of $0.34 per share in the second quarter of 2016.

^(a) New business in assets to be serviced is reflected in our assets under custody and administration after we begin servicing the assets, and new business in assets to be managed is reflected in our assets under management after we begin managing the assets. As such, only a portion of new asset servicing and asset management mandates is reflected in our assets under custody and administration and assets under management, as of June 30, 2016. Distribution fees from the SPDR^® Gold Exchange-Traded Fund, or ETF, are recorded in brokerage and other fee revenue and not in management fee revenue.

^(b) Estimated pro forma fully phased-in Basel III common equity tier 1 ratios calculated under the Basel III advanced approaches and standardized approach (in each case, fully phased in as of January 1, 2019, as per Basel III phase-in requirements for capital) are preliminary estimates. Refer to the “Capital” section of this news release for important information about the Basel III final rule, our calculations of our common equity tier 1 ratios thereunder, factors that could influence State Street's calculations of its common equity tier 1 ratios and other information about our capital ratios. Unless otherwise specified, all capital ratios referenced in this news release refer to State Street Corporation and not State Street Bank and Trust Company. Refer to the addendum included with this news release for a further description of these ratios.

^(c) Stock purchases may be made using various types of mechanisms, including open market purchases or transactions off market, and may be made under Rule 10b5-1 trading programs. The timing of stock purchases, types of transactions and number of shares purchased will depend on several factors, including, market conditions and our capital position, our financial performance and investment opportunities. The common stock purchase program does not have specific price targets and may be suspended at any time. Our common stock and other stock dividends, including the declaration, timing and amount thereof, remain subject to consideration and approval by our Board of Directors at the relevant times.

2

Second-Quarter 2016 GAAP-Basis Results:

(Table presents summary results, dollars in millions, except per share amounts, or where otherwise noted)	2Q16			1Q16			Increase (Decrease)			2Q15			Increase (Decrease)
Total fee revenue	$	2,053		$	1,970		4.2	%		$	2,076		(1.1	)%
Net interest revenue	521			512			1.8			535			(2.6)
Total revenue	2,573			2,484			3.6			2,608			(1.3)
Provision for loan losses	4			4			—			2			nm
Total expenses	1,860			2,050			(9.3	)		2,134			(12.8)
Net income available to common shareholders	585			319			83.4			389			50.4
Earnings per common share(1):
Diluted	1.47			0.79			86.1			0.93			58.1
Financial ratios:
Return on average common equity	12.4		%	6.8		%	560		bps	8.2		%	420		bps
Total assets as of period-end	$	255,386		$	243,685		4.8	%		$	294,544		(13.3)%
Quarterly average total assets	229,197			223,623			2.5			263,834			(13.1)
Net unrealized gains on investment securities, after-tax, as of period end(2)	796			522			52.5			346			130.1

⁽¹⁾ The first and second-quarters of 2016 included net after-tax charges of $62 million and $8 million, respectively, or $0.15 and $0.02 per share, respectively, related to State Street Beacon. Second-quarter 2015 included a net after-tax charge of $156 million, or $0.37 per share, to increase our legal accruals.

⁽²⁾ Includes net unrealized gains on investment securities, after tax, for securities classified as available for sale and held to maturity.

^nm Not meaningful

Second quarter 2016 GAAP-basis results included the following notable items:

• On April 1, 2016, we sold the WM/Reuters branded foreign exchange benchmark business

to Thomson Reuters resulting in a pre-tax gain of approximately $53 million.

• A net pre-tax charge of approximately $58 million that reflects an increase in our previously established reserve related to our review of amounts we invoiced clients for certain expenses, including a $43 million reduction to total revenue and $15 million within total expense.

Operating-Basis (Non-GAAP) Financial Measures:

In addition to presenting State Street's financial results in conformity with U.S. generally accepted accounting principles, or GAAP, management also presents results on a non-GAAP, or operating-basis, as it believes this presentation supports meaningful analysis and comparisons of trends with respect to State Street's normal ongoing business operations from period to period, as well as additional information (such as capital ratios calculated under regulatory standards scheduled to be effective in the future) that management uses in evaluating State Street’s business and activities. Non-GAAP information is not a substitute for, and is not superior to, information presented on a GAAP-basis. Summary results presented on a GAAP-basis, descriptions of our non-GAAP, or operating-basis, financial measures, and reconciliations of operating-basis information to GAAP-basis information are provided in the addendum included with this news release.

3

Second-Quarter 2016 Operating-Basis (Non-GAAP) Results:

(Table presents summary results, dollars in millions, except per share amounts, or where otherwise noted)	2Q16			1Q16			Increase (Decrease)			2Q15			Increase (Decrease)
Total fee revenue	$	2,130		$	2,033		4.8	%		$	2,174		(2.0	)%
Net interest revenue	546			539			1.3			556			(1.8	)
Total revenue	2,675			2,574			3.9			2,727			(1.9	)
Provision for loan losses	4			4			—			2			nm
Total expenses	1,828			1,943			(5.9	)		1,881			(2.8	)
Net income available to common shareholders	582			396			47.0			565			3.0
Total assets as of period-end	255,386			243,685			4.8			294,544			(13.3	)
Quarterly average total assets	229,197			223,623			2.5			263,834			(13.1	)
Diluted Earnings per Share	1.46			0.98			49.0			1.36			7.4
Return on average common equity	12.3		%	8.4		%	390		bps	11.9		%	40		bps
Net unrealized gains on investment securities, after-tax, as of period-end(1)	$	796		$	522		52.5	%		$	346		130.1	%

^nm Not meaningful

⁽¹⁾ Includes net unrealized gains on investment securities, after tax, for securities classified as available for sale and held to maturity.

The rate of decline in operating-basis expenses exceeded the rate of decline in operating-basis fee revenues during the second quarter of 2016 relative to the second quarter of 2015, representing positive fee operating leverage of approximately 80 basis points.

We currently expect State Street Beacon, our multi-year transformation program^(a) to deliver at least $140 million in estimated annual pre-tax fiscal savings in 2016 including targeted staff reductions announced in October 2015.

^(a)Estimated pre-tax expense savings relate only to State Street Beacon, our multi-year transformation program, and are based on projected improvement from our full-year 2015 operating-basis expenses, all else equal. The full effect of the savings generated each year will be felt the following year. Actual expenses may increase or decrease in the future due to other factors.

4

The following table reconciles select second-quarter 2016 operating-basis financial information to financial information prepared and reported in conformity with GAAP for the same period. The addendum included with this news release includes additional reconciliations.

Second-Quarter 2016 Selected Operating-Basis (Non-GAAP) Reconciliations:

(In millions, except per share amounts)	Income Before Income Tax Expense			Net Income Available to Common Shareholders			Earnings Per Common Share
GAAP-basis	$	709		$	585		$	1.47
Tax-equivalent adjustments
Tax-advantaged investments (processing fees and other revenue)	87
Tax-exempt investment securities (net interest revenue)	40
Total	127
Non-operating adjustments
Gain on sale of WM/Reuters Business	(53		)	(40		)	(.10		)
Discount accretion associated with former conduit securities (net interest revenue)	(15		)	(9		)	(.02		)
Severance costs associated with staffing realignment (compensation and employee benefits expenses)	(3		)	(2		)	(.01		)
Expense billing matter, net(1)	58			38			.10
Acquisition & restructuring costs (expenses)(2)	20			12			.03
Effect on income tax of non-operating adjustments	—			(2		)	(.01		)
Total	7			(3		)	(.01		)
Operating-basis	$	843		$	582		$	1.46

⁽¹⁾ Expense billing matter, net, includes a charge of $48 million to servicing fee revenue, a credit of $5 million to management fee revenue and $15 million of other expenses. Refer to reconciliations of GAAP to operating-basis revenues and expenses on the following pages.

⁽²⁾ Includes a pre-tax charge of $13 million ($8 million after tax or $0.02 per share) related to State Street Beacon.

Selected Financial Information and Ratios

The tables below provide a summary of selected financial information and key ratios for the indicated periods, presented on an operating, or non-GAAP, basis where noted. Amounts are presented in millions of dollars, except for per-share amounts or where otherwise noted.

Assets Under Custody and Administration

The following table presents assets under custody and administration, assets under management, market indices and average fx rates for the periods indicated.

Assets Under Custody and Administration and Assets Under Management
(Dollars in billions, except market indices)	2Q16		1Q16		Increase (Decrease)		2Q15		Increase (Decrease)
Assets under custody and administration(1)(2)	$	27,786	$	26,943	3.1	%	$	28,650	(3.0	)%
Assets under management(2)	2,301		2,296		0.2		2,374		(3.1	)
Market Indices(3):
S&P 500® daily average	2,075		1,951		6.4		2,102		(1.3	)
MSCI EAFE® daily average	1,648		1,594		3.4		1,905		(13.5	)
S&P 500® average of month-end	2,087		1,977		5.6		2,085		0.1
MSCI EAFE® average of month-end	1,656		1,601		3.4		1,887		(12.2	)
Average Foreign Exchange Rate (Euro vs. USD)	1.129		1.103		2.4		1.107		1.9
Average Foreign Exchange Rate (GBP vs. USD)	1.434		1.433		0.1		1.533		(6.5	)

⁽¹⁾ Includes assets under custody of $21,354 billion, $20,788 billion and $22,064 billion, as of June 30, 2016, March 31, 2016 and June 30, 2015, respectively.

⁽²⁾ As of period-end.

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

5

Assets Under Management

The following table presents second-quarter 2016 activity in assets under management, by product category.

(Dollars in billions)	Equity			Fixed-Income			Cash(2)			Multi-Asset-Class Solutions			Alternative Investments(3)			Total
Balance as of March 31, 2016	$	1,327		$	327		$	381		$	109		$	152		$	2,296
Long-term institutional inflows(1)	43			19			—			9			4			75
Long-term institutional outflows(1)	(77		)	(20		)	—			(8		)	(3		)	(108		)
Long-term institutional flows, net	(34		)	(1		)	—			1			1			(33		)
ETF flows, net	(8		)	—			(1		)	—			6			(3		)
Cash fund flows, net	—			—			1			—			—			1
Total flows, net	(42		)	(1		)	—			1			7			(35		)
Market appreciation	23			8			1			8			6			46
Foreign exchange impact	(1		)	1			(2		)	(1		)	(3		)	(6		)
Total market/foreign exchange impact	22			9			(1		)	7			3			40
Balance as of June 30, 2016	$	1,307		$	335		$	380		$	117		$	162		$	2,301

The following table presents year-to-date activity for the period ending June 30, 2016 of assets under management, by product category.

(Dollars in billions)	Equity			Fixed-Income			Cash(2)			Multi-Asset-Class Solutions			Alternative Investments(3)			Total
Balance as of December 31, 2015	$	1,326		$	312		$	368		$	103		$	136		$	2,245
Long-term institutional inflows(1)	106			36			—			21			6			169
Long-term institutional outflows(1)	(144		)	(40		)	—			(17		)	(5		)	(206		)
Long-term institutional flows, net	(38		)	(4		)	—			4			1			(37		)
ETF flows, net	(12		)	5			(1		)	—			12			4
Cash fund flows, net	—			—			12			—			—			12
Total flows, net	(50		)	1			11			4			13			(21		)
Market appreciation	22			17			1			10			12			62
Foreign exchange impact	9			5			—			—			1			15
Total market/foreign exchange impact	31			22			1			10			13			77
Balance as of June 30, 2016	$	1,307		$	335		$	380		$	117		$	162		$	2,301

⁽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 Fund, for which State Street is not the investment manager, but acts as distribution agent.

6

Revenue

The following table provides the components of our GAAP-basis revenuefor the periods noted:

(Dollars in millions)	2Q16			1Q16		Increase (Decrease)		2Q15			Increase (Decrease)
Servicing fees	$	1,239		$	1,242	(0.2	)%	$	1,319		(6.1	)%
Management fees	293			270		8.5		304			(3.6	)
Trading services revenue:
Foreign exchange trading	157			156		0.6		167			(6.0	)
Brokerage and other fees	110			116		(5.2	)	114			(3.5	)
Total trading services revenue	267			272		(1.8	)	281			(5.0	)
Securities finance revenue	156			134		16.4		155			0.6
Processing fees and other revenue	98			52		88.5		17			476.5
Total fee revenue	2,053			1,970		4.2		2,076			(1.1	)
Net interest revenue	521			512		1.8		535			(2.6	)
Gains (losses) related to investment securities, net	(1		)	2		nm		(3		)	nm
Total Revenue	$	2,573		$	2,484	3.6	%	$	2,608		(1.3	)%

^nm Not meaningful.

7

The following table provides a reconciliation of our operating-basis (non-GAAP) revenue for the periods noted:

(Dollars in millions)	2Q16			1Q16			Increase (Decrease)			2Q15			Increase (Decrease)
Servicing Fees:
Total servicing fees, GAAP-basis	$	1,239		$	1,242		(0.2	)%		$	1,319		(6.1	)%
Expense billing matter(1)	48			—						—
Total servicing fees, operating-basis	$	1,287		$	1,242		3.6			$	1,319		(2.4	)
Management Fees:
Total management fees, GAAP-basis	$	293		$	270		8.5	%		$	304		(3.6	)%
Expense billing matter(1)	(5		)	—						—
Total management fees, operating-basis	$	288		$	270		6.7			$	304		(5.3	)
Processing Fees and Other Revenue:
Total processing fees and other revenue, GAAP-basis	$	98		$	52		88.5	%		$	17		476.5	%
Tax-equivalent adjustment associated with tax-advantaged investments	87			63						98
Gain on sale of WM/Reuters Business	(53		)	—						—
Total processing fees and other revenue, operating-basis	$	132		$	115		14.8			$	115		14.8
Fee Revenue:
Total fee revenue, GAAP-basis	$	2,053		$	1,970		4.2	%		$	2,076		(1.1	)%
Tax-equivalent adjustment associated with tax-advantaged investments	87			63						98
Gain on sale of WM/Reuters Business	(53		)	—						—
Expense billing matter, net(1)	43			—						—
Total fee revenue, operating-basis	$	2,130		$	2,033		4.8			$	2,174		(2.0	)
Net Interest Revenue:
Net interest revenue, GAAP-basis	$	521		$	512		1.8	%		$	535		(2.6	)%
Tax-equivalent adjustment associated with tax-exempt investment securities	40			42						44
Net interest revenue, fully taxable-equivalent basis	561			554						579
Average interest earning assets	198,243			194,081						233,411
Net interest margin, fully taxable equivalent basis	1.14		%	1.15		%	(10	)	bps	1.00		%	140		bps
Net interest revenue, fully taxable-equivalent basis	$	561		$	554		1.3	%		$	579		(3.1	)%
Discount accretion associated with former conduit securities	(15		)	(15		)				(23		)
Net interest revenue, operating-basis(2)	$	546		$	539		1.3			$	556		(1.8	)

⁽¹⁾ Expense billing matter, net, includes a charge of $48 million to servicing fee revenue, a credit of $5 million to management fee revenue and $15 million of other expenses. Refer to reconciliations of GAAP to operating-basis revenues and expenses on the following pages.

⁽²⁾ Operating-basis net interest revenue excludes discount accretion on former conduit securities and is presented on a fully taxable-equivalent basis. The Company expects to record aggregate pre-tax conduit-related accretion of approximately $204 million in interest revenue through the remaining lives of the former conduit securities. This expectation is based on numerous assumptions, including holding the securities to maturity, anticipated prepayment speeds and credit quality.

8

The following highlights primary drivers of changes in our revenue for the noted periods, indicating (where relevant) differences between our GAAP-basis and operating-basis results.

Servicing fees increased from the first quarter of 2016, primarily due to net new business and higher global equity markets. Compared to the second quarter of 2015, servicing fees decreased, primarily due to lower global equity markets. On a GAAP-basis, the second quarter of 2016 reflects a $48 million reduction in servicing fees related to our previously disclosed expense billing matter.

Management fees increased from the first quarter of 2016 primarily due to higher global equity markets and favorable net new business mix. Compared to the second quarter of 2015 management fees decreased, primarily due to lower international equity markets. On a GAAP-basis, the second quarter of 2016 reflects an increase in management fees of $5 million related to our previously disclosed expense billing matter.

Foreign exchange trading revenue increased slightly from the first quarter of 2016. Compared to the second quarter of 2015, foreign exchange trading revenue decreased, primarily due to lower client-related volumes.

Brokerage and other fees decreased from the first quarter of 2016, primarily due to lower revenue related to the exit of the WM/Reuters branded foreign exchange benchmark business. Compared to the second quarter of 2015, brokerage and other fees decreased, primarily due to lower transition management revenue, partially offset by higher fees associated with the GLD ETF.

Securities finance revenue increased from the first quarter of 2016, primarily due to seasonality. Compared to the second quarter of 2015, securities finance revenue increased slightly.

Processing fees and other revenue increased compared to the first quarter of 2016, primarily due to higher equity earnings from joint ventures and favorable valuation adjustments. Compared to the second quarter of 2015, processing fees and other revenue increased, primarily due to favorable valuation adjustments and higher revenue associated with bank owned life insurance. On a GAAP-basis, the increase for both periods also reflects the gain on the sale of the WM/Reuters branded foreign exchange benchmark business to Thomson Reuters in the second quarter of 2016.

Net interest revenue increased from the first quarter of 2016, primarily due to disciplined liability pricing, higher interest earning assets, and income associated with a small number of discrete security prepayments. Compared to the second quarter of 2015, net interest revenue decreased, primarily due to our success in reducing the size of the balance sheet in 2015, partially offset by the impact of higher short-term interest rates and disciplined liability pricing. On a GAAP-basis, the decrease compared to the second quarter of 2015 also is partially a result of lower discount accretion associated with the former conduit securities. Net interestmargin,calculated based on operating-basis net interest revenue, changed to 111 basis points in the second quarter of 2016 from 112 and 96 basis points in the first quarter of 2016 and the second quarter of 2015, respectively.

9

Expenses

The following table provides the components of our GAAP-basis expensesfor the periods noted:

(Dollars in millions)	2Q16		1Q16		Increase (Decrease)		2Q15		Increase (Decrease)
Compensation and employee benefits	$	989	$	1,107	(10.7	)%	$	984	0.5	%
Information systems and communications	270		272		(0.7	)	249		8.4
Transaction processing services	201		200		0.5		201		—
Occupancy	111		113		(1.8	)	109		1.8
Acquisition and restructuring costs	20		104		(80.8	)	3		566.7
Other	269		254		5.9		588		(54.3	)
Total Expenses	$	1,860	$	2,050	(9.3	)%	$	2,134	(12.8	)%

The following table provides a reconciliation of our operating-basis (non-GAAP) expenses for the periods noted:

(Dollars in millions)	2Q16			1Q16			Increase (Decrease)		2Q15			Increase (Decrease)
Compensation and Employee Benefits Expenses:
Total compensation and employee benefits expenses, GAAP-basis	$	989		$	1,107		(10.7	)%	$	984		0.5	%
Severance costs associated with staffing realignment	3			(3		)			—
Total compensation and employee benefits expenses, operating-basis	$	992		$	1,104		(10.1	)	$	984		0.8
Other Expenses:
Total other expenses, GAAP-basis	$	269		$	254		5.9	%	$	588		(54.3	)%
Provisions for legal contingencies	—			—					(250		)
Expense billing matter(1)	(15		)	—					—
Total other expenses, operating-basis	$	254		$	254		—		$	338		(24.9	)
Expenses:
Total expenses, GAAP-basis	$	1,860		$	2,050		(9.3	)%	$	2,134		(12.8	)%
Severance costs associated with staffing realignment	3			(3		)			—
Provisions for legal contingencies	—			—					(250		)
Expense billing matter	(15		)	—					—
Acquisition costs	(7		)	(7		)			(3		)
Restructuring charges, net	(13		)	(97		)			—
Total expenses, operating-basis	$	1,828		$	1,943		(5.9	)	$	1,881		(2.8	)

⁽¹⁾ Expense billing matter, net, includes a charge of $48 million to servicing fee revenue, a credit of $5 million to management fee revenue and $15 million of other expenses. Refer to reconciliations of GAAP to operating-basis revenues and expenses on the following pages.

The following highlights primary drivers of changes in our expenses for the noted periods, indicating (where relevant) differences between our GAAP-basis and operating-basis results.

Compensation and employee benefits expenses decreased from the first quarter of 2016, due to costs recorded in the first quarter of 2016 associated with the seasonal deferred incentive compensation expense for retirement eligible employees and payroll taxes, partially offset by an annual merit increase. Compared to the second quarter of 2015, compensation and employee benefits expenses increased, primarily due to increased costs to support regulatory initiatives and new business, mostly offset by State Street Beacon savings.

Information systems and communications expenses decreased from the first quarter of 2016. Compared to the second quarter of 2015, information systems and communications increased, primarily due to investments associated with supporting business, including project Beacon, and regulatory initiatives.

10

Other expenses increased from the first quarter of 2016 on a GAAP-basis, primarily due to interest expense associated with the expense billing matter.  Compared to the second quarter of 2015, other expenses decreased on a GAAP-basis, primarily due to a legal provision recorded in the second quarter of 2015, lower professional services, securities processing costs, and travel expenses.

On an operating-basis, other expenses were flat compared to the first quarter of 2016. Compared to the second quarter of 2015, other expenses decreased, primarily due to lower professional services, securities processing costs, and travel expenses. 

Income Taxes for our second quarter of 2016 GAAP-basis effective tax rate was 12.9% compared to 14.4% in the first quarter of 2016 and 11.3% in the second quarter of 2015. Our operating-basis effective tax rates for the second quarter of 2016 was 27.0% compared to 29.1% in the first quarter of 2016 and 29.6% in the second quarter of 2015.

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Capital

The following table presents our regulatory capital ratios as of June 30, 2016 and March 31, 2016. The lower of our 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 and State Street Bank's supplementary leverage ratio (SLR) under final U.S. banking regulator rules adopted in 2014 as of June 30, 2016 and March 31, 2016. Unless otherwise noted, all capital ratios presented in the table and elsewhere in this news release refer to State Street Corporation and not State Street Bank and Trust Company.

June 30, 2016	Basel III Advanced Approaches(1)(2)		Basel III Standardized Approach(1)		Basel III Fully Phased-In Advanced Approaches (Estimated) Pro-Forma(2)(3)		Basel III Fully Phased-In Standardized Approach (Estimated) Pro-Forma(3)
Common equity tier 1 ratio	12.0	%	12.0	%	11.6	%	11.5	%
Tier 1 capital ratio	15.0		15.0		14.6		14.6
Total capital ratio	17.1		17.1		16.7		16.7
Tier 1 leverage ratio	7.0		7.0		6.9		6.9
March 31, 2016
Common equity tier 1 ratio	12.3	%	12.5	%	11.8	%	11.9	%
Tier 1 capital ratio	14.9		15.1		14.4		14.6
Total capital ratio	17.1		17.3		16.5		16.8
Tier 1 leverage ratio	6.9		6.9		6.7		6.7

	State Street						State Street Bank
As of June 30, 2016 (Dollars in millions)(1)	Transitional SLR			Fully Phased-In SLR(4)			Transitional SLR			Fully Phased-In SLR(4)
Tier 1 Capital	$	15,637		$	15,244		$	15,734		$	15,377
Total assets for SLR	249,057			248,774			244,481			244,227
Supplementary Leverage Ratio	6.3		%	6.1		%	6.4		%	6.3		%
As of March 31, 2016 (Dollars in millions)
Tier 1 Capital	$	15,032		$	14,546		15,071			14,628
Total assets for SLR	241,793			241,436			237,292			236,970
Supplementary Leverage Ratio	6.2		%	6.0		%	6.4		%	6.2		%

⁽¹⁾ June 30, 2016 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.

⁽³⁾ Estimated pro-forma fully phased-in ratios as of June 30, 2016 and March 31, 2016 (fully phased in as of January 1, 2019, as per Basel III phase-in requirements for capital) 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 currently applicable regulatory requirements.

⁽⁴⁾ Estimated pro-forma fully phased-in SLRs as of June 30, 2016 and March 31, 2016 (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 news release for reconciliations of these estimated pro-forma fully phased-in SLRs to our SLRs under currently applicable regulatory requirements.

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Additional Information

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. Operating-basis return on average common equity utilizes annualized operating-basis net income available to common equity in the calculation.

Investor Conference Call and Quarterly Website Disclosures

State Street will webcast an investor conference call today, Wednesday, July 27, 2016, at 9:30 a.m. EDT, available at http://investors.statestreet.com/. The conference call will also be available via telephone, at +1 877-423-4013 inside the U.S. or at +1 706-679-5594 outside of the U.S. The Conference ID is # 33283388.

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 # 33283388.

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 (including those concerning our investment portfolio), 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, 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 the second quarter of 2016, State Street expects to publish its updates during the period beginning today and ending on or about August 5, 2016.

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 $28 trillion in assets under custody and administration and $2 trillion* in assets under management as of June 30, 2016, State Street operates globally in more than 100 geographic markets and employs 32,636 worldwide. For more information, visit State Street's website at www.statestreet.com.

* Assets under management include the assets of the SPDR^® Gold ETF (approximately $40 billion as of June 30, 2016), for which State Street Global Markets, LLC, an affiliate of SSgA, serves as the distribution agent.

Forward-Looking Statements

This news release contains forward-looking statements as defined by United States securities laws, including statements relating to our goals and expectations regarding our business, financial and capital condition, results of operations, investment portfolio performance and 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,”

13

“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 27, 2016.

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

• the structure and details of the U.K.'s exit from the European Union, or "Brexit", following the recent referendum by British voters are not certain, remain subject to negotiations between the U.K. and the European Union and will be determined over the coming years; such structure and details are likely to have significant effects on financial markets and business activities, and the regulatory environment, particularly in the U.K and Europe, some or all of which effects could have a material effect on our or our clients or counterparties businesses, operations, investment activities or financial results.

• the financial strength and continuing viability of the counterparties with which we or our clients do business and to which we have investment, credit or financial exposure, including, for example, the direct and indirect effects on counterparties of the sovereign-debt risks in the U.S., Europe and other regions;

• increases in the volatility of, or declines in the level of, our net interest revenue, 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 the possibility that we may change 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, and the liquidity 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;

• 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 the respective 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 levels 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 requirements and risk profile;

• the manner and timing with which the Federal Reserve and other U.S. and foreign regulators implement changes to the regulatory framework applicable to our operations, including implementation of the Dodd-Frank Act, the Basel III final rule and European legislation (such as the Alternative Investment Fund Managers Directive, Undertakings for Collective Investment in Transferable Securities Directives and Markets in Financial Instruments Directive II); among other consequences, these regulatory changes impact the levels of regulatory capital we must maintain, acceptable levels of credit exposure to third parties, margin requirements applicable to derivatives, and restrictions on banking and financial activities. 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

14

and capital planning and compliance programs, and changes in governmental enforcement approaches to perceived failures to comply with regulatory or legal obligations;

• we may not successfully implement our plans to address the deficiencies jointly identified by the Federal Reserve and the FDIC in April 2016 with respect to our 2015 resolution plan, or those plans may not be considered to be sufficient by the Federal Reserve and the FDIC, due to a number of factors, including, but not limited to challenges we may experience in interpreting and addressing regulatory expectations, failure to implement remediation in a timely manner, the  complexities of development of a comprehensive plan to resolve a global custodial bank and related costs and dependencies. If we fail to meet regulatory expectations to the satisfaction of the Federal Reserve and the FDIC in our resolution plan submission due on October 1, 2016 or in any future submission, we could be subject to more stringent capital, leverage or liquidity requirements, or restrictions on our growth, activities or operations;

• adverse changes in the regulatory ratios that we are required or will be required to meet, whether arising under the Dodd-Frank Act or the Basel III final rule, 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 ratios that cause changes in those ratios as they are measured from period to period;

• increasing requirements to obtain the prior approval of the Federal Reserve or our other U.S. and non-U.S. regulators for the use, allocation or distribution of our capital or other specific capital actions or programs, including acquisitions, dividends and stock purchases, without which our growth plans, distributions to shareholders, share repurchase programs or other capital 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;

• financial market disruptions or economic recession, whether in the U.S., Europe, Asia or other regions;

• our ability to develop and execute State Street Beacon, our multi-year transformation program to create cost efficiencies and to fully digitize our business to support the development of new solutions and capabilities for 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 and governance that meet our expectations and those of our clients and our regulators;

• the results of our review of our billing practices, including additional amounts we may be required to reimburse clients, as well as potential consequences of such review, including damage to our client relationships 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;

• 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, and the possibility of significant reductions in the liquidity or valuation of assets underlying those pools;

15

• 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 and their effective operation both independently and with external systems, and complexities and costs of protecting the security of our systems and data;

• 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 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;

• 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;

• our ability to complete acquisitions, joint ventures and divestitures, including 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 and operational 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 recognize emerging 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;

• changes in accounting standards and practices; 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.

16

Other important factors that could cause actual results to differ materially from those indicated by any forward-looking statements are set forth in our 2015 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 speak only as of the date hereof, July 27, 2016, and we do not undertake efforts to revise those forward-looking statements to reflect events after that date.  

17

EX-99.2

	Exhibit 99.2
STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
June 30, 2016
Table of Contents
	Page
GAAP-Basis Financial Information:
Consolidated Financial Highlights	1
Consolidated Results of Operations	2
Consolidated Statement of Condition	4
Average and Period-End Balance Sheet Trends	5
Assets Under Custody and Administration	6
Assets Under Management	7
Investment Portfolio:
Investment Portfolio Credit Ratings	8
Investment Portfolio Holdings by Asset Class	9
Investment Portfolio Non-U.S. Investments	10
Operating-Basis (Non-GAAP) Financial Information:
Reconciliations of Operating-Basis (Non-GAAP) Financial Information	11
Reconciliations of Constant Currency Fx Impacts	15
Capital:
Regulatory Capital	16
Reconciliation of Tangible Common Equity Ratio	17
Reconciliations of Fully Phased-In Ratios	18
Reconciliations of Supplementary Leverage Ratios	21

This financial information should be read in conjunction with State Street's news release dated July 27, 2016.

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED FINANCIAL HIGHLIGHTS
	Quarters																		% Change				Year-to-Date						% Change
(Dollars in millions, except per share amounts, or where otherwise noted)	1Q15			2Q15			3Q15			4Q15			1Q16			2Q16			2Q16 vs. 2Q15		2Q16 vs. 1Q16		2Q15			2Q16			YTD 2Q16 vs. YTD 2Q15
Revenue:
Fee revenue	$	2,055		$	2,076		$	2,103		$	2,044		$	1,970		$	2,053		(1.1	)%	4.2	%	$	4,131		$	4,023		(2.6	)%
Net interest revenue	546			535			513			494			512			521			(2.6	)	1.8		1,081			1,033			(4.4	)
Net gains (losses) from sales of available-for-sale securities	—			(3		)	(2		)	—			2			(1		)	nm		nm		(3		)	1			nm
Net losses from other-than-temporary impairment	(1		)	—			—			—			—			—			nm		nm		(1		)	—			nm
Total revenue	2,600			2,608			2,614			2,538			2,484			2,573			(1.3	)	3.6		5,208			5,057			(2.9	)
Provision for loan losses	4			2			5			1			4			4			nm		nm		6			8			nm
Total expenses	2,097			2,134			1,962			1,857			2,050			1,860			(12.8	)	(9.3	)	4,231			3,910			(7.6	)
Income before income tax expense	499			472			647			680			430			709			50.2		64.9		971			1,139			17.3
Income tax expense	94			54			67			103			62			92			70.4		48.4		148			154			4.1
Net income (loss) from minority interest	—			—			1			(1		)	—			2			—		—		—			2			—
Net income	405			418			581			576			368			619			48.1		68.2		823			987			19.9
Net income available to common shareholders	373			389			539			547			319			585			50.4		83.4		762			904			18.6
Diluted earnings per common share	.89			.93			1.31			1.34			.79			1.47			58.1		86.1		1.83			2.25			23.0
Average diluted common shares outstanding (in thousands)	418,750			416,712			412,167			407,012			403,615			398,847			(4.3	)	(1.2	)	417,643			401,113			(4.0	)
Cash dividends declared per common share	$	.30		$	.34		$	.34		$	.34		$	.34		$	.34		—		—		$	.64		$	.68		6.3
Closing price per share of common stock (as of quarter end)	73.53			77.00			67.21			66.36			58.52			53.92			(30.0	)	(7.9	)	77.00			53.92			(30.0	)
Ratios:
Return on average common equity	7.9		%	8.2		%	11.3		%	11.6		%	6.8		%	12.4		%	51.2		82.4		8.0		%	9.6		%	20.0
Pre-tax operating margin	19.2			18.1			24.8			26.8			17.3			27.6			52.5		59.5		18.6			22.5			21.0
Common equity tier 1 risk-based capital1	12.0			12.0			12.0			12.5			12.3			12.0			—		(2.4	)	12.0			12.0			—
Tier 1 risk-based capital1	14.0			14.7			14.7			15.3			14.9			15.0			2.0		0.7		14.7			15.0			2.0
Total risk-based capital1	16.1			16.8			16.8			17.4			17.1			17.1			1.8		—		16.8			17.1			1.8
Tier 1 leverage1	5.8			6.0			6.3			6.9			6.9			7.0			16.7		1.4		6.0			7.0			16.7
Tangible common equity2	6.0			6.5			6.6			6.8			6.7			6.7			3.1		—		6.5			6.7			3.1
At quarter-end:
Assets under custody and administration (in trillions)3	$	28.49		$	28.65		$	27.27		$	27.51		$	26.94		$	27.79		(3.0	)	3.2		$	28.65		$	27.79		(3.0	)
Asset under management (in trillions)	2.44			2.37			2.20			2.25			2.30			2.30			(3.0	)	—		2.37			2.30			(3.0	)
Total assets	279,448			294,544			247,235			245,155			243,685			255,386			(13.3	)	4.8		294,544			255,386			(13.3	)
Investment securities	112,857			101,463			97,560			100,022			102,298			103,121			1.6		0.8		101,463			103,121			1.6
Deposits	211,352			230,591			186,367			191,627			185,516			193,130			(16.2	)	4.1		230,591			193,130			(16.2	)
Long-term debt	9,146			9,058			11,986			11,497			10,323			11,924			31.6		15.5		9,058			11,924			31.6
Total shareholders' equity	20,670			21,347			21,343			21,103			21,496			22,073			3.4		2.7		21,347			22,073			3.4
1 In early 2014, we announced that we had completed our Basel III qualification period. As a result, our regulatory capital ratios as of March 31, 2015, June 30, 2015, September 30, 2015, December 31, 2015, March 31, 2016 and June 30, 2016 presented in the table above have been calculated under the advanced approaches provisions of the Basel III final rule. Refer to page 16 of this earnings release addendum for additional information about our regulatory capital ratios as of March 31, 2015, June 30, 2015, September 30, 2015, December 31, 2015, March 31, 2016 and June 30, 2016.
2  Tangible common equity ratio is a non-GAAP measure. Refer to accompanying reconciliations on page 17 for additional information.
3  Included assets under custody of $21.98 trillion, $22.06 trillion, $20.95 trillion, $21.26 trillion, $20.79 trillion and $21.35 trillion as of March 31, 2015, June 30, 2015, September 30, 2015, December 31, 2015, March 31, 2016 and June 30, 2016, respectively.
nm  Not meaningful

1

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)	1Q15			2Q15			3Q15			4Q15			1Q16		2Q16			2Q16 vs. 2Q15		2Q16 vs. 1Q16		2Q15			2Q16		YTD 2Q16 vs. YTD 2Q15
Reported Results
Fee revenue:
Servicing fees	$	1,268		$	1,319		$	1,289		$	1,277		$	1,242	$	1,239		(6.1	)%	(0.2	)%	$	2,587		$	2,481	(4.1	)%
Management fees	301			304			287			282			270		293			(3.6	)	8.5		605			563		(6.9	)
Trading services:
Direct sales and trading	135			88			108			79			90		87			(1.1	)	(3.3	)	223			177		(20.6	)
Indirect foreign exchange trading2	68			79			69			64			66		70			(11.4	)	6.1		147			136		(7.5	)
Total foreign exchange trading	203			167			177			143			156		157			(6.0	)	0.6		370			313		(15.4	)
Electronic foreign exchange services	48			44			46			37			44		43			(2.3	)	(2.3	)	92			87		(5.4	)
Other trading, transition management and brokerage	73			70			71			67			72		67			(4.3	)	(6.9	)	143			139		(2.8	)
Total brokerage and other trading services	121			114			117			104			116		110			(3.5	)	(5.2	)	235			226		(3.8	)
Total trading services	324			281			294			247			272		267			(5.0	)	(1.8	)	605			539		(10.9	)
Securities finance	101			155			113			127			134		156			0.6		16.4		256			290		13.3
Processing fees and other	61			17			120			111			52		98			476.5		88.5		78			150		92.3
Total fee revenue	2,055			2,076			2,103			2,044			1,970		2,053			(1.1	)	4.2		4,131			4,023		(2.6	)
Net interest revenue:
Interest revenue	642			629			614			603			629		620			(1.4	)	(1.4	)	1,271			1,249		(1.7	)
Interest expense	96			94			101			109			117		99			5.3		(15.4	)	190			216		13.7
Net interest revenue	546			535			513			494			512		521			(2.6	)	1.8		1,081			1,033		(4.4	)
Gains (losses) related to investment securities, net:
Net gains (losses) from sales of available-for-sale securities	—			(3		)	(2		)	—			2		(1		)					(3		)	1
Losses from other-than-temporary impairment	(1		)	—			—			—			—		—							(1		)	—
Gains (losses) related to investment securities, net	(1		)	(3		)	(2		)	—			2		(1		)					(4		)	1
Total revenue	2,600			2,608			2,614			2,538			2,484		2,573			(1.3	)	3.6		5,208			5,057		(2.9	)
Provision for loan losses	4			2			5			1			4		4							6			8
Expenses:
Compensation and employee benefits	1,087			984			1,051			939			1,107		989			0.5		(10.7	)	2,071			2,096		1.2
Information systems and communications	247			249			265			261			272		270			8.4		(0.7	)	496			542		9.3
Transaction processing services	197			201			201			194			200		201			—		0.5		398			401		0.8
Occupancy	113			109			110			112			113		111			1.8		(1.8	)	222			224		0.9
Acquisition and restructuring costs	6			3			10			6			104		20			566.7		(80.8	)	9			124		1,277.8
Other	447			588			325			345			254		269			(54.3	)	5.9		1,035			523		(49.5	)
Total expenses	2,097			2,134			1,962			1,857			2,050		1,860			(12.8	)	(9.3	)	4,231			3,910		(7.6	)
Income before income tax expense	499			472			647			680			430		709			50.2		64.9		971			1,139		17.3
Income tax expense	94			54			67			103			62		92			70.4		48.4		148			154		4.1
Net income (loss) from minority interest	—			—			1			(1		)	—		2			—		—		—			2		—
Net income	$	405		$	418		$	581		$	576		$	368	$	619		48.1		68.2		$	823		$	987	19.9

2

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED RESULTS OF OPERATIONS (Continued)
	Quarters																		% Change				Year-to-Date						% Change
(Dollars in millions, except per share amounts, or where otherwise noted)	1Q15			2Q15			3Q15			4Q15			1Q16			2Q16			2Q16 vs. 2Q15		2Q16 vs. 1Q16		2Q15			2Q16			YTD 2Q16 vs. YTD 2Q15
Adjustments to net income:
Dividends on preferred stock	$	(31	)	$	(29	)	$	(42	)	$	(28	)	$	(49	)	$	(33	)	13.8	%	(32.7	)%	$	(60	)	$	(82	)	36.7	%
Earnings allocated to participating securities	(1		)	—			—			(1		)	—			(1		)	—		—		(1		)	(1		)	—
Net income available to common shareholders	$	373		$	389		$	539		$	547		$	319		$	585		50.4		83.4		$	762		$	904		18.6
Earnings per common share:
Basic	$	.90		$	.95		$	1.33		$	1.36		$	.80		$	1.48		55.8		85.0		$	1.85		$	2.28		23.2
Diluted	.89			.93			1.31			1.34			.79			1.47			58.1		86.1		1.83			2.25			23.0
Average common shares outstanding:
Basic	412,225			410,674			406,612			402,041			399,421			394,160			(4.0	)	(1.3	)	411,445			396,790			(3.6	)
Diluted	418,750			416,712			412,167			407,012			403,615			398,847			(4.3	)	(1.2	)	417,643			401,113			(4.0	)
Cash dividends declared per common share	$	.30		$	.34		$	.34		$	.34		$	.34		$	.34		—		—		$	.64		$	.68		6.3
Closing price per share of common stock (as of quarter end)	73.53			77.00			67.21			66.36			58.52			53.92			(30.0	)	(7.9	)	77.00			53.92			(30.0	)
Financial ratios:
Return on average common equity	7.9		%	8.2		%	11.3		%	11.6		%	6.8		%	12.4		%	51.2		82.4		8.0		%	9.6		%	20.0
Pre-tax operating margin	19.2			18.1			24.8			26.8			17.3			27.6			52.5		59.5		18.6			22.5			21.0
After-tax margin	15.6			16.0			22.2			22.7			12.8			22.7			41.9		77.3		14.6			17.9			22.6
Internal capital generation rate	5.3			5.3			8.3			8.7			3.9			9.6			81.1		146.2		5.3			6.8			28.3
Common dividend payout ratio	33.1			35.6			25.5			24.9			42.5			22.7			(36.2	)	(46.6	)	34.4			29.7			(13.7	)
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.
nm  Not meaningful

3

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED STATEMENT OF CONDITION
	As of Quarter End																		% Change
(Dollars in millions, except per share amounts)	1Q15			2Q15			3Q15			4Q15			1Q16			2Q16			2Q16 vs. 2Q15		2Q16 vs. 1Q16
Assets:
Cash and due from banks	$	3,149		$	3,084		$	3,660		$	1,207		$	3,735		$	4,673		51.5	%	25.1	%
Interest-bearing deposits with banks	83,398			116,728			68,361			75,338			65,032			75,169			(35.6	)	15.6
Securities purchased under resale agreements	11,331			4,447			9,155			3,404			3,722			2,010			(54.8	)	(46.0	)
Trading account assets	1,145			1,373			1,223			849			873			890			(35.2	)	1.9
Investment securities:
Investment securities available for sale	96,612			85,308			80,097			70,070			71,086			72,735			(14.7	)	2.3
Investment securities held to maturity1	16,245			16,155			17,463			29,952			31,212			30,386			88.1		(2.6	)
Total investment securities	112,857			101,463			97,560			100,022			102,298			103,121			1.6		0.8
Loans and leases2	18,278			18,547			19,019			18,753			19,140			19,788			6.7		3.4
Premises and equipment3	1,933			2,035			1,984			1,894			1,949			1,994			(2.0	)	2.3
Accrued interest and fees receivable	2,281			2,385			2,271			2,346			2,371			2,399			0.6		1.2
Goodwill	5,663			5,729			5,716			5,671			5,733			5,671			(1.0	)	(1.1	)
Other intangible assets	1,892			1,871			1,820			1,768			1,749			1,682			(10.1	)	(3.8	)
Other assets	37,521			36,882			36,466			33,903			37,083			37,989			3.0		2.4
Total assets	$	279,448		$	294,544		$	247,235		$	245,155		$	243,685		$	255,386		(13.3	)	4.8
Liabilities:
Deposits:
Non-interest-bearing	$	72,704		$	83,120		$	58,426		$	65,800		$	54,248		$	57,268		(31.1	)	5.6
Interest-bearing -- U.S.	30,769			32,839			30,407			29,958			31,159			33,060			0.7		6.1
Interest-bearing -- Non-U.S.	107,879			114,632			97,534			95,869			100,109			102,802			(10.3	)	2.7
Total deposits	211,352			230,591			186,367			191,627			185,516			193,130			(16.2	)	4.1
Securities sold under repurchase agreements	10,158			10,978			7,760			4,499			4,224			4,350			(60.4	)	3.0
Federal funds purchased	17			15			25			6			23			29			93.3		26.1
Other short-term borrowings	4,346			4,756			3,761			1,748			1,683			1,683			(64.6	)	—
Accrued expenses and other liabilities	23,759			17,799			15,961			14,643			20,388			22,166			24.5		8.7
Long-term debt	9,146			9,058			11,986			11,497			10,323			11,924			31.6		15.5
Total liabilities	258,778			273,197			225,860			224,020			222,157			233,282			(14.6	)	5.0
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			—		—
Series G, 5,000 shares issued and outstanding	—			—			—			—			—			493			—		—
Common stock, $1 par, 750,000,000 shares authorized4	504			504			504			504			504			504			—		—
Surplus	9,744			9,744			9,742			9,746			9,739			9,767			0.2		0.3
Retained earnings	14,986			15,237			15,638			16,049			16,233			16,686			9.5		2.8
Accumulated other comprehensive income (loss)	(1,006		)	(1,011		)	(1,101		)	(1,442		)	(964		)	(997		)	(1.4	)	3.4
Treasury stock, at cost5	(5,519		)	(5,830		)	(6,143		)	(6,457		)	(6,719		)	(7,083		)	21.5		5.4
Total shareholders' equity	20,670			21,347			21,343			21,103			21,496			22,073			3.4		2.7
Non-controlling interest-equity	—			—			32			32			32			31
Total equity	20,670			21,347			21,375			21,135			21,528			22,104
Total liabilities and equity	$	279,448		$	294,544		$	247,235		$	245,155		$	243,685		$	255,386		(13.3	)	4.8
	1Q15			2Q15			3Q15			4Q15			1Q16			2Q16
1  Fair value of investment securities held to maturity	$	16,417		$	16,198		$	17,536		$	29,798		$	31,555		$	30,895
2  Allowance for loan losses	41			43			48			46			47			51
3  Accumulated depreciation for premises and equipment	4,653			4,780			4,768			4,820			4,929			3,164
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	92,569,079			96,125,524			100,086,970			104,227,647			108,316,401			114,229,535

4

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
AVERAGE AND PERIOD-END BALANCE SHEET TRENDS
	Quarters												% Change
Average Balance Sheet Mix	1Q15		2Q15		3Q15		4Q15		1Q16		2Q16		2Q16 vs. 2Q15		2Q16 vs. 1Q16
Investment securities and short-duration instruments	80.4	%	81.8	%	81.2	%	79.9	%	78.5	%	78.4	%	(4.2	)%	(0.1	)%
Loans and leases	7.0		6.6		7.0		8.2		8.3		8.1		22.7		(2.4	)
Non-interest-earning assets	12.6		11.6		11.8		11.9		13.2		13.5		16.4		2.3
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Client funds bearing interest	59.9	%	61.5	%	61.6	%	60.4	%	59.0	%	60.2	%	(2.1	)	2.0
Client funds not bearing interest	21.2		21.3		20.4		19.4		20.1		18.3		(14.1	)	(9.0	)
Other non-interest-bearing liabilities	6.9		5.6		5.1		5.6		6.3		7.0		25.0		11.1
Long-term debt and common shareholders' equity	11.2		10.7		11.8		13.4		13.4		13.1		22.4		(2.2	)
Preferred shareholders' equity	0.8		0.9		1.1		1.2		1.2		1.4		55.6		16.7
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

(Dollars in millions)	Quarters												% Change
Average Asset Backed Securities	1Q15		2Q15		3Q15		4Q15		1Q16		2Q16		2Q16 vs. 2Q15		2Q16 vs. 1Q16
Fixed	$	1,293	$	1,748	$	2,231	$	2,151	$	2,045	$	2,023	15.7	%	(1.1	)%
Floating	40,306		36,931		29,973		26,891		24,795		24,313		(34.2	)	(1.9	)
Total	$	41,599	$	38,679	$	32,204	$	29,042	$	26,840	$	26,336

(Dollars in millions)	Quarters																		% Change
Investment Securities - Appreciation (Depreciation)	1Q15			2Q15			3Q15			4Q15			1Q16			2Q16			2Q16 vs. 2Q15		2Q16 vs. 1Q16
Held to maturity:
Amortized cost (book value)	$	16,245		$	16,155		$	17,463		$	29,952		$	31,212		$	30,386		88.1	%	(2.6	)%
Fair value	16,417			16,198			17,536			29,798			31,555			30,895			90.7		(2.1	)
Appreciation (depreciation)	172			43			73			(154		)	343			509			1,083.7		48.4
Available for sale:
Amortized cost	95,524			84,689			79,415			69,843			70,366			71,720			(15.3	)	1.9
Fair value (book value)	96,612			85,308			80,097			70,070			71,086			72,735			(14.7	)	2.3
Appreciation (depreciation)	1,088			619			682			227			720			1,015			64.0		41.0
Pre-tax depreciation related to securities available for sale transferred to held to maturity	(95		)	(86		)	(70		)	23			(193		)	(197		)	129.1		2.1
Total pre-tax appreciation (depreciation) related to investment securities portfolio	1,165			576			685			96			870			1,327			130.4		52.5
Total after-tax appreciation (depreciation) related to investment securities portfolio	699			346			411			58			522			796			130.1		52.5

(Dollars in billions)	Quarters												% Change
Securities on Loan	1Q15		2Q15		3Q15		4Q15		1Q16		2Q16		2Q16 vs. 2Q15		2Q16 vs. 1Q16
Average securities on loan	$	350	$	356	$	331	$	341	$	334	$	348	(2.2	)%	4.2	%
End-of-period securities on loan	350		333		332		323		341		348		4.5		2.1

5

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ASSETS UNDER CUSTODY AND ADMINISTRATION
	Quarters												% Change
(Dollars in billions)	1Q15		2Q15		3Q15		4Q15		1Q16		2Q16		2Q16 vs. 2Q15		2Q16 vs. 1Q16
Assets Under Custody and Administration
By Product Classification:
Mutual funds	$	7,073	$	7,107	$	6,698	$	6,768	$	6,728	$	6,734	(5.2	)%	0.1	%
Collective funds	7,113		7,189		6,883		7,088		7,000		7,234		0.6		3.3
Pension products	5,745		5,830		5,497		5,510		5,197		5,496		(5.7	)	5.8
Insurance and other products	8,560		8,524		8,187		8,142		8,018		8,322		(2.4	)	3.8
Total Assets Under Custody and Administration	$	28,491	$	28,650	$	27,265	$	27,508	$	26,943	$	27,786	(3.0	)	3.1
By Financial Instrument:
Equities	$	15,660	$	16,006	$	14,223	$	14,888	$	14,433	$	14,960	(6.5	)	3.7
Fixed-income	9,157		8,939		9,470		9,264		9,199		9,530		6.6		3.6
Short-term and other investments	3,674		3,705		3,572		3,356		3,311		3,296		(11.0	)	(0.5	)
Total Assets Under Custody and Administration	$	28,491	$	28,650	$	27,265	$	27,508	$	26,943	$	27,786	(3.0	)	3.1
By Geographic Location1:
North America	$	21,554	$	21,667	$	20,536	$	20,842	$	20,505	$	21,072	(2.7	)	2.8
Europe/Middle East/Africa	5,590		5,621		5,452		5,387		5,159		5,356		(4.7	)	3.8
Asia/Pacific	1,347		1,362		1,277		1,279		1,279		1,358		(0.3	)	6.2
Total Assets Under Custody and Administration	$	28,491	$	28,650	$	27,265	$	27,508	$	26,943	$	27,786	(3.0	)	3.1
Assets Under Custody2
By Product Classification:
Mutual funds	$	6,786	$	6,744	$	6,369	$	6,413	$	6,363	$	6,361	(5.7	)	—
Collective funds	5,626		5,674		5,412		5,642		5,589		5,788		2.0		3.6
Pension products	5,160		5,243		4,921		4,944		4,673		4,947		(5.6	)	5.9
Insurance and other products	4,406		4,403		4,245		4,259		4,163		4,258		(3.3	)	2.3
Total Assets Under Custody	$	21,978	$	22,064	$	20,947	$	21,258	$	20,788	$	21,354	(3.2	)	2.7
By Geographic Location1:
North America	$	17,221	$	17,255	$	16,379	$	16,664	$	16,420	$	16,756	(2.9	)	2.0
Europe/Middle East/Africa	3,732		3,779		3,615		3,635		3,422		3,584		(5.2	)	4.7
Asia/Pacific	1,025		1,030		953		959		946		1,014		(1.6	)	7.2
Total Assets Under Custody	$	21,978	$	22,064	$	20,947	$	21,258	$	20,788	$	21,354	(3.2	)	2.7
1   Geographic mix is based on the location at which the assets are serviced.
2   Assets under custody are a component of assets under custody and administration presented above.

6

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ASSETS UNDER MANAGEMENT
	Quarters												% Change
(Dollars in billions)	1Q15		2Q15		3Q15		4Q15		1Q16		2Q16		2Q16 vs. 2Q15		2Q16 vs. 1Q16
Assets Under Management
By Asset Class and Investment Approach:
Equity:
Active	$	38	$	36	$	29	$	32	$	32	$	32	(11.1	)%	—	%
Passive	1,434		1,386		1,237		1,294		1,295		1,275		(8.0	)	(1.5	)
Total Equity	1,472		1,422		1,266		1,326		1,327		1,307		(8.1	)	(1.5	)
Fixed-Income:
Active	17		17		16		18		17		17		—		—
Passive	306		303		300		294		310		318		5.0		2.6
Total Fixed-Income	323		320		316		312		327		335		4.7		2.4
Cash1	393		376		380		368		381		380		1.1		(0.3	)
Multi-Asset-Class Solutions:
Active	31		29		26		17		17		17		(41.4	)	—
Passive	84		89		85		86		92		100		12.4		8.7
Total Multi-Asset-Class Solutions	115		118		111		103		109		117		(0.8	)	7.3
Alternative Investments2:
Active	17		18		17		17		18		18		—		—
Passive	123		120		113		119		134		144		20.0		7.5
Total Alternative Investments	140		138		130		136		152		162		17.4		6.6
Total Assets Under Management	$	2,443	$	2,374	$	2,203	$	2,245	$	2,296	$	2,301	(3.1	)	0.2
By Geographic Location3:
North America	$	1,549	$	1,486	$	1,409	$	1,452	$	1,491	$	1,501	1.0		0.7
Europe/Middle East/Africa	566		563		500		489		496		492		(12.6	)	(0.8	)
Asia/Pacific	328		325		294		304		309		308		(5.2	)	(0.3	)
Total Assets Under Management	$	2,443	$	2,374	$	2,203	$	2,245	$	2,296	$	2,301	(3.1	)	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 Fund for which State Street is not the investment manager, but acts as distribution agent.
3  Geographic mix is based on client location or fund management location.
Exchange-Traded Funds1
By Asset Class:
Alternative investments	$	40	$	37	$	35	$	34	$	45	$	54	45.9	%	20.0	%
Cash	1		2		3		3		3		2		—		(33.3	)
Equity	356		342		323		350		349		348		1.8		(0.3	)
Fixed-income	43		41		39		41		46		48		17.1		4.3
Total Exchange-Traded Funds	$	440	$	422	$	400	$	428	$	443	$	452	7.1		2.0
1  Exchange-traded funds are a component of assets under management presented above.

7

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO CREDIT RATINGS
(Dollars in billions, book value)	U.S. Treasuries & Agencies			AAA			AA			A			BBB			<BBB			Not Rated			Total			Unrealized MTM Gain/(Loss) (in millions)(1)
6/30/2016	$	48.1		$	33.6		$	13.5		$	4.6		$	1.7		$	0.8		$	—		$	102.3		$	796
	47		%	33		%	13		%	4		%	2		%	1		%	—		%	100		%
12/31/2015	$	45.3		$	34.7		$	12.5		$	4.7		$	1.6		$	1.0		$	—		$	99.8		$	58
	45		%	35		%	12		%	5		%	2		%	1		%	—		%	100		%
12/31/2014	$	36.4		$	45.8		$	18.6		$	7.2		$	2.2		$	1.6		$	0.1		$	111.9		$	487
	32		%	41		%	17		%	6		%	2		%	2		%	—		%	100		%
12/31/2013	$	29.6		$	51.7		$	22.4		$	7.7		$	3.4		$	2.2		$	0.1		$	117.1		$	(213	)
	26		%	44		%	19		%	6		%	3		%	2		%	—		%	100		%
12/31/2012	$	37.6		$	46.0		$	22.7		$	8.5		$	3.2		$	2.1		$	0.1		$	120.2		$	697
	31		%	38		%	19		%	7		%	3		%	2		%	—		%	100		%
(1) As of June 30, 2016 the after tax unrealized MTM gain/(loss) includes after-tax unrealized gain on securities available for sale of $477 million, after-tax unrealized gain on securities held to maturity of $305 million and after-tax unrealized gain primarily related to securities previously transferred from available for sale to held to maturity of $14 million.

8

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO HOLDINGS BY ASSET CLASS
	Ratings
	UST/AGY		AAA		AA		A		BBB		<BBB		NR		Book Value (In billions)(1)		Book Value (% Total)		Unrealized After-tax MTM Gain/(Loss) (In millions)(2)			Fixed Rate/ Floating Rate
Government & agency securities	83	%	8	%	4	%	5	%	—	%	—	%	—	%	$	33.6	32.8	%	$	346		98% / 2%
Asset-backed securities	—		77		18		3		1		1		—		25.9		25.3		(131		)	8% / 92%
Student loans	—		55		43		2		—		—		—		8.7		33.6		(155		)
Credit cards	—		100		—		—		—		—		—		2.9		11.2		(12		)
Auto & equipment	—		95		5		—		—		—		—		2.7		10.5		(2		)
Non-US residential mortgage backed securities	—		86		7		4		1		2		—		9.2		35.5		37
Collateralized loan obligation	—		99		1		—		—		—		—		1.9		7.3		17
Sub-prime	—		7		13		21		11		48		—		0.4		1.5		(16		)
Other	—		—		99		1		—		—		—		0.1		0.4		—
Mortgage-backed securities	92		6		—		—		—		2		—		21.3		20.8		194			88% / 12%
Agency MBS	100		—		—		—		—		—		—		19.5		91.5		177
Non-Agency MBS	—		72		3		1		5		19		—		1.8		8.5		17
CMBS	24		71		3		1		—		1		—		3.2		3.1		19			62% / 38%
Corporate bonds	—		—		12		46		41		1		—		3.5		3.5		27			89% / 11%
Covered bonds	—		100		—		—		—		—		—		3.4		3.3		14			16% / 84%
Municipal bonds	—		29		66		5		—		—		—		8.0		7.0		306			99% / 1%
Clipper tax-exempt bonds/other	—		45		42		12		—		—		1		3.4		3.4		21			24% / 76%
Total Portfolio	47	%	33	%	13	%	4	%	2	%	1	%	—	%	$	102.3	100.0	%	$	796		67% / 33%
(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, 2016 the after-tax unrealized MTM gain/(loss) includes after-tax unrealized gain on securities available for sale of $477 million, after-tax unrealized gain on securities held to maturity of $305 million and after-tax unrealized gain primarily related to securities previously transferred from available for sale to held to maturity of $14 million.

9

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO NON-U.S. INVESTMENTS
				Book Value (In billions)
June 30, 2016	Book Value (In billions)		Average Rating	Gov't/Agency(1)		ABS FRMBS		ABS All Other		Corporate Bonds		Covered Bonds		Other
United Kingdom	$	6.7	AAA	$	—	$	4.7	$	1.1	$	0.3	$	0.6	$	—
Australia	4.4		AAA	0.5		1.7		0.3		0.3		0.7		0.9
Canada	2.7		AAA	1.9		—		—		0.2		0.6		—
Netherlands	2.1		AAA	—		1.9		0.1		—		0.1		—
Japan	1.6		AAA	1.6		—		—		—		—		—
Germany	1.4		A	0.1		—		1.3		—		—		—
Korea	1.0		AA	1.0		—		—		—		—		—
France	0.9		AAA	0.1		0.1		0.2		0.1		0.4		—
Italy	0.7		AA	—		0.5		0.2		—		—		—
Norway	0.6		AAA	—		—		0.1		—		0.5		—
Finland	0.3		AAA	—		—		0.1		—		0.2		—
Spain	0.2		A	—		0.1		0.1		—		—		—
Portugal	0.1		BB	—		0.1		—		—		—		—
Other	1.2		AA	0.6		0.1		—		0.2		0.3		—
Total Non-U.S. Investments(2)	$	23.9		$	5.8	$	9.2	$	3.5	$	1.1	$	3.4	$	0.9
U.S. Investments	78.4
Total Portfolio	$	102.3
(1) Sovereign debt is reflected in the government agency column.
(2) Country of collateral used except for corporates where country of issuer is used; excludes equity securities of approximately $20.3 million.

10

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF OPERATING-BASIS (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 results on a non-GAAP, or "operating" basis, as it believes that this presentation supports meaningful analysis and comparisons of trends with respect to State Street's normal ongoing business operations from period to period, as well as additional information (such as 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.
Management believes that operating-basis financial information, which excludes the impact of revenue and expenses outside of State Street's normal course of business (such as acquisitions and restructuring charges), facilitates an investor's understanding and analysis of State Street's underlying financial performance and trends in addition to financial information prepared and reported in conformity with GAAP. Excluding the impact of revenue and expenses outside of State Street's normal course of business (such as acquisition and restructuring charges) provides additional insight into our underlying margin and profitability. Our operating-basis presentation also reports revenue from non-taxable sources, such as interest revenue from tax-exempt investment securities and processing fees and other revenue associated with tax-advantaged investments, in a fully taxable-equivalent basis. Taxable-equivalent revenue allows management to provide more meaningful comparisons of yields and margins on assets and to evaluate investment opportunities with different tax profiles. Management also believes that the use of other non-GAAP financial measures in the calculation of identified capital ratios is useful to understanding State Street's capital position and is of interest to investors. Additionally, management presents revenue and expense measures on a constant currency (non-GAAP) 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, except per share amounts, or where otherwise noted)		1Q15		2Q15		3Q15			4Q15			1Q16		2Q16			2Q16 vs. 2Q15		2Q16 vs. 1Q16		2Q15		2Q16			YTD 2Q16 vs. YTD 2Q15
Total Revenue:
Total revenue, GAAP-basis		$	2,600	$	2,608	$	2,614		$	2,538		$	2,484	$	2,573		(1.3	)%	3.6	%	$	5,208	$	5,057		(2.9	)%
	Adjustment to processing fees and other revenue (see below)	53		98		12			31			63		34							151		97
	Adjustment to net interest revenue (see below)	19		21		16			19			27		25							40		52
	Adjustment to servicing and management fee revenue (see below)	—		—		—			—			—		43							—		43
Total revenue, operating-basis		$	2,672	$	2,727	$	2,642		$	2,588		$	2,574	$	2,675		(1.9	)	3.9		$	5,399	$	5,249		(2.8	)
Fee Revenue:
Total fee revenue, GAAP-basis		$	2,055	$	2,076	$	2,103		$	2,044		$	1,970	$	2,053		(1.1	)	4.2		$	4,131	$	4,023		(2.6	)
	Tax-equivalent adjustment associated with tax-advantaged investments	53		98		95			113			63		87							151		150
	Gain on sale of CRE and CRE loan extinguishment / paydown	—		—		(83		)	(82		)	—		—							—		—
	Gain on sale of WM/Reuters Business	—		—		—			—			—		(53		)					—		(53		)
	Expense billing matter, net	—		—		—			—			—		43							—		43
Total fee revenue, operating-basis		$	2,108	$	2,174	$	2,115		$	2,075		$	2,033	$	2,130		(2.0	)	4.8		$	4,282	$	4,163		(2.8	)
Servicing Fees:
Total servicing fees, GAAP-basis		$	1,268	$	1,319	$	1,289		$	1,277		$	1,242	$	1,239		(6.1	)	(0.2	)	$	2,587	$	2,481		(4.1	)
	Expense billing matter	—		—		—			—			—		48							—		48
Total servicing fees, operating-basis		$	1,268	$	1,319	$	1,289		$	1,277		$	1,242	$	1,287		(2.4	)	3.6		$	2,587	$	2,529		(2.2	)
Management Fees:
Total management fees, GAAP-basis		$	301	$	304	$	287		$	282		$	270	$	293		(3.6	)	8.5		$	605	$	563		(6.9	)
	Expense billing matter	—		—		—			—			—		(5		)					—		(5		)
Total management fees, operating-basis		$	301	$	304	$	287		$	282		$	270	$	288		(5.3	)	6.7		$	605	$	558		(7.8	)
Processing Fees and Other Revenue:
Total processing fees and other revenue, GAAP-basis		$	61	$	17	$	120		$	111		$	52	$	98		476.5		88.5		$	78	$	150		92.3
	Tax-equivalent adjustment associated with tax-advantaged investments	53		98		95			113			63		87							151		150
	Gain on sale of CRE and CRE loan extinguishment / paydown	—		—		(83		)	(82		)	—		—							—		—
	Gain on sale of WM/Reuters Business	—		—		—			—			—		(53		)					—		(53		)
Total processing fees and other revenue, operating-basis		$	114	$	115	$	132		$	142		$	115	$	132		14.8		14.8		$	229	$	247		7.9

11

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF OPERATING-BASIS (NON-GAAP) FINANCIAL INFORMATION (Continued)
		Quarters																		% Change						Year-to-Date						% Change
(Dollars in millions, except per share amounts, or where otherwise noted)		1Q15			2Q15			3Q15			4Q15			1Q16			2Q16			2Q16 vs. 2Q15			2Q16 vs. 1Q16			2Q15			2Q16			YTD 2Q16 vs. YTD 2Q15
Net Interest Revenue & Net Interest Margin:
Net interest revenue, GAAP-basis		$	546		$	535		$	513		$	494		$	512		$	521		(2.6	)%		1.8	%		$	1,081		$	1,033		(4.4	)%
	Tax-equivalent adjustment associated with tax-exempt investment securities	44			44			43			42			42			40									88			82
Net interest revenue, fully taxable-equivalent basis1		590			579			556			536			554			561									1,169			1,115
	Average interest earning assets1	226,359			233,411			221,424			200,899			194,081			198,243									229,905			196,162
Net interest margin, fully taxable-equivalent basis1		1.06		%	1.00		%	1.00		%	1.06		%	1.15		%	1.14		%	14		bps	(10	)	bps	1.03		%	1.14		%	11		bps
Net interest revenue, fully taxable-equivalent basis1		$	590		$	579		$	556		$	536		$	554		$	561								$	1,169		1,115
	Discount accretion associated with former conduit securities	(25		)	(23		)	(27		)	(23		)	(15		)	(15		)							(48		)	(30		)
Net interest revenue, operating-basis1		565			556			529			513			539			546			(1.8	)		1.3			1,121			1,085			(3.2	)
	Average interest earning assets1	226,359			233,411			221,424			200,899			194,081			198,243									229,905			196,162
Net interest margin, operating-basis1		1.01		%	0.96		%	0.95		%	1.01		%	1.12		%	1.11		%	15		bps	(1	)	bps	0.98		%	1.11		%	13		bps
	Effect of discount accretion	0.05		%	0.04		%	0.05		%	0.05		%	0.03		%	0.03		%							0.05		%	0.03		%
Expenses:
Total expenses, GAAP-basis		$	2,097		$	2,134		$	1,962		$	1,857		$	2,050		$	1,860		(12.8	)%		(9.3	)%		$	4,231		$	3,910		(7.6	)%
	Severance costs associated with staffing realignment	1			—			(75		)	1			(3		)	3									1			—
	Provisions for legal contingencies	(150		)	(250		)	—			(15		)	—			—									(400		)	—
	Expense billing matter, net	—			—			—			(17		)	—			(15		)							—			(15		)
	Acquisition costs	(5		)	(3		)	(7		)	(5		)	(7		)	(7		)							(8		)	(14		)
	Restructuring charges, net	(1		)	—			(3		)	(1		)	(97		)	(13		)							(1		)	(110		)
Total expenses, operating-basis		$	1,942		$	1,881		$	1,877		$	1,820		$	1,943		$	1,828		(2.8	)		(5.9	)		$	3,823		$	3,771		(1.4	)
Compensation and Employee Benefits Expenses:
Total compensation and employee benefits expenses, GAAP-basis		$	1,087		$	984		$	1,051		$	939		$	1,107		$	989		0.5			(10.7	)		$	2,071		$	2,096		1.2
	Severance costs associated with staffing realignment	1			—			(75		)	1			(3		)	3									1			—
Total compensation and employee benefits expenses, operating-basis		$	1,088		$	984		$	976		$	940		$	1,104		$	992		0.8			(10.1	)		$	2,072		$	2,096		1.2
Other Expenses:
Total other expenses, GAAP-basis		$	447		$	588		$	325		$	345		$	254		$	269		(54.3	)		5.9			$	1,035		$	523		(49.5	)
	Provisions for legal contingencies	(150		)	(250		)	—			(15		)	—			—									(400		)	—
	Expense billing matter, net	—			—			—			(17		)	—			(15		)							—			(15		)
Total other expenses, operating-basis		$	297		$	338		$	325		$	313		$	254		$	254		(24.9	)		—			$	635		$	508		(20.0	)
Income Before Income Tax Expense:
Income before income tax expense, GAAP-basis		$	499		$	472		$	647		$	680		$	430		$	709		50.2			64.9			$	971		$	1,139		17.3
	Net pre-tax effect of non-operating adjustments to revenue and expenses	227			372			113			87			197			134									599			331
Income before income tax expense, operating-basis		$	726		$	844		$	760		$	767		$	627		$	843		(0.1	)		34.4			$	1,570		$	1,470		(6.4	)
Pre-tax operating margin:
Pre-tax operating margin, GAAP-basis		19.2		%	18.1		%	24.8		%	26.8		%	17.3		%	27.6		%							18.6		%	22.5		%
	Net effect of non-operating adjustments	8.0			12.8			4.0			2.8			7.1			3.9									10.5			5.5
Pre-tax operating margin, operating-basis2		27.2		%	30.9		%	28.8		%	29.6		%	24.4		%	31.5		%							29.1		%	28.0		%

12

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF OPERATING-BASIS (NON-GAAP) FINANCIAL INFORMATION (Continued)
		Quarters																		% Change				Year-to-Date						% Change
(Dollars in millions, except per share amounts, or where otherwise noted)		1Q15			2Q15			3Q15			4Q15			1Q16			2Q16			2Q16 vs. 2Q15		2Q16 vs. 1Q16		2Q15			2Q16			YTD 2Q16 vs. YTD 2Q15
Income Tax Expense:
Income tax expense, GAAP-basis		$	94		$	54		$	67		$	103		$	62		$	92		70.4	%	48.4	%	$	148		$	154		4.1	%
	Aggregate tax-equivalent adjustments	97			142			138			155			105			127							239			232
	Italian deferred tax liability	—			—			25			(33		)	—			—							—			—
	Net tax effect of non-operating adjustments	16			54			13			18			15			10							70			25
Income tax expense, operating-basis		$	207		$	250		$	243		$	243		$	182		$	229		(8.4	)	25.8		$	457		$	411		(10.1	)
Effective Tax Rate:
Income before income tax expense, operating-basis		$	726		$	844		$	760		$	767		$	627		$	843		(0.1	)	34.4		$	1,570		$	1,470		(6.4	)
Income tax expense, operating-basis		207			250			243			243			182			229							457			411
Effective tax rate, operating-basis		28.4		%	29.6		%	32.0		%	31.8		%	29.1		%	27.0		%	(8.8	)	(7.2	)	29.1		%	27.9		%	(4.1	)
Net Income Available to Common Shareholders:
Net income available to common shareholders, GAAP-basis		$	373		$	389		$	539		$	547		$	319		$	585		50.4		83.4		$	762		$	904		18.6
	Net after-tax effect of non-operating adjustments to processing fees and other revenue, net interest revenue, expenses and income tax expense	114			176			(63		)	(53		)	77			(3		)					290			74
Net income available to common shareholders, operating-basis		$	487		$	565		$	476		$	494		$	396		$	582		3.0		47.0		$	1,052		$	978		(7.0	)
Diluted Earnings per Common Share:
Diluted earnings per common share, GAAP-basis		$	.89		$	.93		$	1.31		$	1.34		$	.79		$	1.47		58.1		86.1		$	1.83		$	2.25		23.0
	Severance costs associated with staffing realignment	—			—			.11			—			.01			(.01		)					—			—
	Provisions for legal contingencies	.36			.37			—			.02			—			—							.73			—
	Expense billing matter, net	—			—			—			.03			—			.10							—			.10
	Acquisition costs	.01			—			.01			.01			.01			.01							.01			.02
	Restructuring charges, net	—			—			—			—			.15			.02							—			.17
	Effect on income tax of non-operating adjustments	(.06		)	.08			.02			(.04		)	.04			(.01		)					.02			.04
	Discount accretion associated with former conduit securities	(.04		)	(.02		)	(.04		)	(.03		)	(.02		)	(.02		)					(.07		)	(.04		)
	Gain on sale of CRE and CRE loan extinguishment / paydown	—			—			(.12		)	(.12		)	—			—							—			—
	Italian deferred tax liability	—			—			(.14		)	—			—			—							—			—
	Gain on sale of WM/Reuters Business	—			—			—			—			—			(.10		)					—			(.10		)
Diluted earnings per common share, operating-basis		$	1.16		$	1.36		$	1.15		$	1.21		$	.98		$	1.46		7.4		49.0		$	2.52		$	2.44		(3.2	)

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STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF OPERATING-BASIS (NON-GAAP) FINANCIAL INFORMATION (Continued)
		Quarters																		% Change					Year-to-Date						% Change
(Dollars in millions, except per share amounts, or where otherwise noted)		1Q15			2Q15			3Q15			4Q15			1Q16			2Q16			2Q16 vs. 2Q15			2Q16 vs. 1Q16		2Q15			2Q16			YTD 2Q16 vs. YTD 2Q15
Return on Average Common Equity:
Return on average common equity, GAAP-basis		7.9		%	8.2		%	11.3		%	11.6		%	6.8		%	12.4		%	420		bps	560	bps	8.0		%	9.6		%	160		bps
	Severance costs associated with staffing realignment	—			—			1.0			—			—			(.1		)						—			—
	Provisions for legal contingencies	3.2			3.3			—			.2			—			—								3.2			—
	Expense billing matter, net	—			—			—			.3			—			.8								—			.4
	Acquisition costs	.1			—			.1			.1			.1			.1								.1			.1
	Restructuring charges, net	—			—			—			—			1.3			.2								—			.7
	Effect on income tax of non-operating adjustments	(.5		)	.7			.1			(.3		)	.4			(.1		)						.1			.2
	Discount accretion associated with former conduit securities	(.3		)	(.3		)	(.3		)	(.3		)	(.2		)	(.2		)						(.3		)	(.2		)
	Gain on sale of CRE and CRE loan extinguishment / paydown	—			—			(1.0		)	(1.1		)	—			—								—			—
	Italian deferred tax liability	—			—			(1.2		)	—			—			—								—			—
	Gain on sale of WM/Reuters Business	—			—			—			—			—			(0.8		)						—			(0.4		)
Return on average common equity, operating-basis		10.4		%	11.9		%	10.0		%	10.5		%	8.4		%	12.3		%	40		bps	390	bps	11.1		%	10.4		%	(70	)	bps
Fee Operating Leverage:
Total fee revenue, operating-basis (as reconciled above)		$	2,108		$	2,174		$	2,115		$	2,075		$	2,033		$	2,130		(2.02	)%				$	4,282		$	4,163		(2.78	)%
Total expenses, operating-basis (as reconciled above)		1,942			1,881			1,877			1,820			1,943			1,828			(2.82	)				3,823			3,771			(1.36	)
Fee operating leverage																				80		bps									(142	)	bps
Operating Leverage:
Total revenue, operating-basis (as reconciled above)		$	2,672		$	2,727		$	2,642		$	2,588		$	2,574		$	2,675		(1.91	)%				$	5,399		$	5,249		(2.78	)%
Total expenses, operating-basis (as reconciled above)		1,942			1,881			1,877			1,820			1,943			1,828			(2.82	)				3,823			3,771			(1.36	)
Operating leverage																				91		bps									(142	)	bps
1 Fully taxable-equivalent net interest margin for the periods presented above represented fully taxable-equivalent net interest revenue composed of GAAP-basis net interest revenue plus tax-equivalent adjustments, on an annualized basis, as a percentage of average total interest-earning assets for the quarters presented.
2 Pre-tax operating margin for the first, second, third and fourth quarters of 2015 and first and second quarters of 2016 was calculated by dividing income before income tax expense by total revenue.

14

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF CONSTANT CURRENCY FX IMPACTS
GAAP-Basis Quarter Comparison
	Reported						Currency Translation Impact					Excluding Currency Impact				% Change
(Dollars in millions)	2Q15		1Q16		2Q16		2Q16 vs. 1Q16		2Q16 vs. 2Q15			2Q16 vs. 1Q16		2Q16 vs. 2Q15		2Q16 vs. 1Q16		2Q16 vs. 2Q15
GAAP-Basis Results:
Fee revenue	$	2,076	$	1,970	$	2,053	$	8	$	(10	)	$	2,045	$	2,063	3.8	%	(1.5	)%
NIR	535		512		521		1		(2		)	520		523		1.6		(2.8	)
Total revenue	2,608		2,484		2,573		9		(12		)	2,564		2,585		3.2		(1.7	)
Total expenses	2,134		2,050		1,860		9		(12		)	1,851		1,872		(9.7	)	(13.3	)

GAAP-Basis YTD Comparison
	Reported				Currency Translation Impact			Excluding Currency Impact		% Change
(Dollars in millions)	YTD 2Q15		YTD 2Q16		YTD 2Q16 vs YTD 2Q15			YTD 2Q16		YTD 2Q16 vs. YTD 2Q15
GAAP-Basis Results:
Fee revenue	$	4,131	$	4,023	$	(25	)	$	4,048	(2.0	)%
NIR	1,081		1,033		(6		)	1,039		(3.9	)
Total revenue	5,208		5,057		(31		)	5,088		(2.3	)
Total expenses	4,231		3,910		(26		)	3,936		(7.0	)

Operating-Basis Quarter Comparison
	Reported						Currency Translation Impact					Excluding Currency Impact				% Change
(Dollars in millions)	2Q15		1Q16		2Q16		2Q16 vs. 1Q16		2Q16 vs. 2Q15			2Q16 vs. 1Q16		2Q16 vs. 2Q15		2Q16 vs. 1Q16		2Q16 vs. 2Q15
Operating-Basis Results:
Fee revenue	$	2,174	$	2,033	$	2,130	$	8	$	(10	)	$	2,122	$	2,140	4.4	%	(2.4	)%
NIR	556		539		546		1		(2		)	545		548		1.1		(2.0	)
Total revenue	2,727		2,574		2,675		9		(12		)	2,666		2,687		3.6		(2.2	)
Total expenses	1,881		1,943		1,828		9		(12		)	1,819		1,840		(6.4	)	(3.3	)

Operating-Basis YTD Comparison
	Reported				Currency Translation Impact			Excluding Currency Impact		% Change
(Dollars in millions)	YTD 2Q15		YTD 2Q16		YTD 2Q16			YTD 2Q16		YTD 2Q16 vs. YTD 2Q15
Operating-Basis Results:
Fee revenue	$	4,282	$	4,163	$	(25	)	$	4,188	(2.2	)%
NIR	1,121		1,085		(6		)	1,091		(2.7	)
Total revenue	5,399		5,249		(31		)	5,280		(2.2	)
Total expenses	3,823		3,771		(26		)	3,797		(0.7	)

15

STATE STREET CORPORATION

EARNINGS RELEASE ADDENDUM

REGULATORY CAPITAL

     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. As of March 31, 2015, June 30, 2015, September 30, 2015, December 31, 2015, March 31, 2016 and June 30, 2016, 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 on page 17 of this earnings release addendum.

    The following table presents State Street's regulatory capital ratios and underlying components, calculated in conformity with applicable regulatory requirements as described above.

	Quarters
	1Q15						2Q15						3Q15						4Q15						1Q16						2Q16
(Dollars in millions)	Basel III Advanced Approach1			Basel III Standardized Approach2			Basel III Advanced Approach1			Basel III Standardized Approach2			Basel III Advanced Approach1			Basel III Standardized Approach2			Basel III Advanced Approach1			Basel III Standardized Approach2			Basel III Advanced Approach1			Basel III Standardized Approach2			Basel III Advanced Approach1			Basel III Standardized Approach2
RATIOS:
Common equity tier 1 capital	12.0		%	10.2		%	12.0		%	11.4		%	12.0		%	11.8		%	12.5		%	13.0		%	12.3		%	12.5		%	12.0		%	12.0		%
Tier 1 capital	14.0			12.0			14.7			14.0			14.7			14.5			15.3			15.9			14.9			15.1			15.0			15.0
Total capital	16.1			13.7			16.8			16.0			16.8			16.6			17.4			18.1			17.1			17.3			17.1			17.1
Tier 1 leverage	5.8			5.8			6.0			6.0			6.3			6.3			6.9			6.9			6.9			6.9			7.0			7.0
Supporting Calculations:
Common equity tier 1 capital	$	12,494		$	12,494		$	12,559		$	12,559		$	12,515		$	12,515		$	12,433		$	12,433		$	12,404		$	12,404		$	12,515		$	12,515
Total risk-weighted assets	103,998			121,946			104,533			109,788			104,365			105,765			99,552			95,893			100,633			99,617			103,992			104,554
Common equity tier 1 risk-based capital	12.0		%	10.2		%	12.0		%	11.4		%	12.0		%	11.8		%	12.5		%	13.0		%	12.3		%	12.5		%	12.0		%	12.0		%
Tier 1 capital	$	14,598		$	14,598		$	15,401		$	15,401		$	15,361		$	15,361		$	15,264		$	15,264		$	15,032		$	15,032		$	15,637		$	15,637
Total risk-weighted assets	103,998			121,946			104,533			109,788			104,365			105,765			99,552			95,893			100,633			99,617			103,992			104,554
Tier 1 risk-based capital ratio	14.0		%	12.0		%	14.7		%	14.0		%	14.7		%	14.5		%	15.3		%	15.9		%	14.9		%	15.1		%	15.0		%	15.0		%
Total capital	$	16,752		$	16,752		$	17,554		$	17,554		$	17,526		$	17,583		$	17,349		$	17,403		$	17,191		$	17,248		$	17,786		$	17,864
Total risk-weighted assets	103,998			121,946			104,533			109,788			104,365			105,765			99,552			95,893			100,633			99,617			103,992			104,554
Total risk-based capital ratio	16.1		%	13.7		%	16.8		%	16.0		%	16.8		%	16.6		%	17.4		%	18.1		%	17.1		%	17.3		%	17.1		%	17.1		%
Tier 1 capital	$	14,598		$	14,598		$	15,401		$	15,401		$	15,361		$	15,361		$	15,264		$	15,264		$	15,032		$	15,032		$	15,637		$	15,637
Adjusted quarterly average assets	252,406			252,406			257,227			257,227			244,553			244,553			221,880			221,880			217,029			217,029			222,649			222,649
Tier 1 leverage ratio	5.8		%	5.8		%	6.0		%	6.0		%	6.3		%	6.3		%	6.9		%	6.9		%	6.9		%	6.9		%	7.0		%	7.0		%

¹ CET1, tier 1 capital, total capital and tier 1 leverage ratios as of March 31, 2015, June 30, 2015, September 30, 2015, December 31, 2015, March 31, 2016 and June 30, 2016 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 as of March 31, 2015, June 30, 2015, September 30, 2015, December 31, 2015, March 31, 2016 and June 30, 2016 were calculated in conformity with the standardized approaches provisions of the Basel III final rule.

16

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF TANGIBLE COMMON EQUITY RATIO
The following table presents the calculation of State Street's ratios of tangible common equity to total tangible assets.
		Quarters
(Dollars in millions)		1Q15			2Q15			3Q15			4Q15			1Q16			2Q16
Consolidated total assets		$	279,448		$	294,544		$	247,235		$	245,155		$	243,685		$	255,386
Less:
Goodwill		5,663			5,729			5,716			5,671			5,733			5,671
Other intangible assets		1,892			1,871			1,820			1,768			1,749			1,682
Cash balances held at central banks in excess of required reserves		71,740			106,202			60,160			66,259			58,639			67,710
Adjusted assets		200,153			180,742			179,539			171,457			177,564			180,323
Plus related deferred tax liabilities		814			834			713			694			698			688
Total tangible assets	A	200,967			181,576			180,252			172,151			178,262			181,011
Consolidated total common shareholders' equity		$	18,709		$	18,643		$	18,640		$	18,399		$	18,793		$	18,877
Less:
Goodwill		5,663			5,729			5,716			5,671			5,733			5,671
Other intangible assets		1,892			1,871			1,820			1,768			1,749			1,682
Adjusted equity		11,154			11,043			11,104			10,960			11,311			11,524
Plus related deferred tax liabilities		814			834			713			694			698			688
Total tangible common equity	B	$	11,968		$	11,877		$	11,817		$	11,654		$	12,009		$	12,212
Tangible common equity ratio	B/A	6.0		%	6.5		%	6.6		%	6.8		%	6.7		%	6.7		%

17

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION 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.
As of June 30, 2016 (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	$	12,515		$	(454	)	$	12,061		$	12,515		$	(454	)	$	12,061
Tier 1 capital	15,637			(393		)	15,244			15,637			(393		)	15,244
Total capital	17,786			(438		)	17,348			17,864			(438		)	17,426
Risk weighted assets	103,992			65			104,057			104,554			61			104,615
Adjusted average assets	222,649			(282		)	222,367			222,649			(282		)	222,367
Capital ratios:
Common equity tier 1 capital	12.0		%				11.6		%	12.0		%				11.5		%
Tier 1 capital	15.0						14.6			15.0						14.6
Total capital	17.1						16.7			17.1						16.7
Tier 1 leverage	7.0						6.9			7.0						6.9
As of March 31, 2016 (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	$	12,404		$	(547	)	$	11,857		$	12,404		$	(547	)	$	11,857
Tier 1 capital	15,032			(486		)	14,546			15,032			(486		)	14,546
Total capital	17,191			(532		)	16,659			17,248			(532		)	16,716
Risk weighted assets	100,633			95			100,728			99,617			89			99,706
Adjusted average assets	217,029			(357		)	216,672			217,029			(357		)	216,672
Capital ratios:
Common equity tier 1 capital	12.3		%				11.8		%	12.5		%				11.9		%
Tier 1 capital	14.9						14.4			15.1						14.6
Total capital	17.1						16.5			17.3						16.8
Tier 1 leverage	6.9						6.7			6.9						6.7

18

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF FULLY PHASED-IN CAPITAL RATIOS
As of December 31, 2015 (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	$	12,433		$	(929	)	$	11,504		$	12,433		$	(929	)	$	11,504
Tier 1 capital	15,264			(1,076		)	14,188			15,264			(1,076		)	14,188
Total capital	17,349			(946		)	16,403			17,403			(946		)	16,457
Risk weighted assets	99,552			(405		)	99,402			95,893			(382		)	95,721
Adjusted average assets	221,880			(546		)	221,334			221,880			(546		)	221,334
Capital ratios:
Common equity tier 1 capital	12.5		%				11.6		%	13.0		%				12.0		%
Tier 1 capital	15.3						14.3			15.9						14.8
Total capital	17.4						16.5			18.1						17.2
Tier 1 leverage	6.9						6.4			6.9						6.4
As of September 30, 2015 (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	$	12,515		$	(855	)	$	11,660		$	12,515		$	(855	)	$	11,660
Tier 1 capital	15,361			(998		)	14,363			15,361			(998		)	14,363
Total capital	17,526			(868		)	16,658			17,583			(868		)	16,715
Risk weighted assets	104,365			(478		)	103,887			105,765			(451		)	105,314
Adjusted average assets	244,553			(488		)	244,065			244,553			(488		)	244,065
Capital ratios:
Common equity tier 1 capital	12.0		%				11.2		%	11.8		%				11.1		%
Tier 1 capital	14.7						13.8			14.5						13.6
Total capital	16.8						16.0			16.6						15.9
Tier 1 leverage	6.3						5.9			6.3						5.9

19

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF FULLY PHASED-IN CAPITAL RATIOS
As of June 30, 2015 (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	$	12,559		$	(846	)	$	11,713		$	12,559		$	(846	)	$	11,713
Tier 1 capital	15,401			(985		)	14,416			15,401			(985		)	14,416
Total capital	17,554			(855		)	16,699			17,554			(855		)	16,699
Risk weighted assets	104,533			(481		)	104,052			109,788			(453		)	109,335
Adjusted average assets	257,227			(295		)	256,932			257,227			(295		)	256,932
Capital ratios:
Common equity tier 1 capital	12.0		%				11.3		%	11.4		%				10.7		%
Tier 1 capital	14.7						13.9			14.0						13.2
Total capital	16.8						16.0			16.0						15.3
Tier 1 leverage	6.0						5.6			6.0						5.6
As of March 31, 2015 (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	$	12,494		$	(684	)	$	11,810		$	12,494		$	(684	)	$	11,810
Tier 1 capital	14,598			(827		)	13,771			14,598			(827		)	13,771
Total capital	16,752			(697		)	16,055			16,752			(697		)	16,055
Risk weighted assets	103,998			(552		)	103,446			121,946			(520		)	121,426
Adjusted average assets	252,406			(215		)	252,191			252,406			(215		)	252,191
Capital ratios:
Common equity tier 1 capital	12.0		%				11.4		%	10.2		%				9.7		%
Tier 1 capital	14.0						13.3			12.0						11.3
Total capital	16.1						15.5			13.7						13.2
Tier 1 leverage	5.8						5.5			5.8						5.5

20

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, upon implementation 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 as of June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015 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 July 27, 2016 and as applied to our businesses and operations as of June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015.
The following tables reconcile our estimated pro forma fully-phased in SLR ratios as of June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015 calculated in conformity with the SLR final rule, as described, to our SLR ratios calculated in conformity with applicable regulatory requirements as of the dates indicated.
	State Street							State Street Bank
As of June 30, 2016 (Dollars in millions)	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	15,637			A	15,244			15,734			15,377
On-and off-balance sheet leverage exposure	255,010				255,010			250,062			250,062
Less: regulatory deductions	(5,953		)		(6,236		)	(5,581		)	(5,835		)
Total assets for SLR	249,057			B	248,774			244,481			244,227
Supplementary Leverage Ratio	6.3		%	A/B	6.1		%	6.4		%	6.3		%
	State Street							State Street Bank
As of March 31, 2016 (Dollars in millions)	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	15,032		C	$	14,546		$	15,071		$	14,628
On-and off-balance sheet leverage exposure	247,923				247,923			243,043			243,043
Less: regulatory deductions	(6,130		)		(6,487		)	(5,751		)	(6,073		)
Total assets for SLR	241,793			D	241,436			237,292			236,970
Supplementary Leverage Ratio	6.2		%	C/D	6.0		%	6.4		%	6.2		%
	State Street							State Street Bank
As of December 31, 2015 (Dollars in millions)	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	15,264		E	$	14,188		$	14,647		$	13,869
On-and off-balance sheet leverage exposure	252,752				252,752			247,736			247,736
Less: regulatory deductions	(5,895		)		(6,440		)	(5,536		)	(6,036		)
Total assets for SLR	246,857			F	246,312			242,200			241,700
Supplementary Leverage Ratio	6.2		%	E/F	5.8		%	6.0		%	5.7		%

21

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF SUPPLEMENTARY LEVERAGE RATIOS (Continued)
	State Street							State Street Bank
As of September 30, 2015 (Dollars in millions)	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	15,361		G	$	14,363		$	14,863		$	14,162
On-and off-balance sheet leverage exposure	276,673				276,673			271,347			271,347
Less: regulatory deductions	(5,911		)		(6,399		)	(5,550		)	(5,993		)
Total assets for SLR	270,762			H	270,274			265,797			265,354
Supplementary Leverage Ratio	5.7		%	G/H	5.3		%	5.6		%	5.3		%
	State Street							State Street Bank
As of June 30, 2015 (Dollars in millions)	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	15,401		I	$	14,416		$	14,352		$	13,667
On-and off-balance sheet leverage exposure	291,875				291,875			286,851			286,851
Less: regulatory deductions	(6,138		)		(6,930		)	(5,776		)	(6,515		)
Total assets for SLR	285,737			J	284,945			281,075			280,336
Supplementary Leverage Ratio	5.4		%	I/J	5.1		%	5.1		%	4.9		%
	State Street							State Street Bank
As of March 31, 2015 (Dollars in millions)	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	14,598		K	$	13,772		$	13,770		$	13,245
On-and off-balance sheet leverage exposure	288,932				288,932			284,060			284,060
Less: regulatory deductions	(6,088		)		(6,898		)	(5,734		)	(6,489		)
Total assets for SLR	282,844			L	282,034			278,326			277,571
Supplementary Leverage Ratio	5.2		%	K/L	4.9		%	4.9		%	4.8		%

22

EX-99.3

State Street Corporation Second-Quarter 2016 Financial Highlights July 27, 2016 Exhibit 99.3

2 Forward-Looking Statements This presentation includes certain highlights of, and also material supplemental to, State Street Corporation’s (State Street’s) news release announcing its second quarter 2016 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 www.statestreet.com/stockholder, and is incorporated herein by reference. This presentation contains forward-looking statements within the meaning of U.S. securities laws, including statements about our goals and expectations regarding our business, financial and capital condition, results of operations, strategies, investment portfolio performance and 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 27,2016. Important factors that may affect future results and outcomes include, but are not limited to: the structure and details of Great Britain's exit from the European Union, or "Brexit", following the recent referendum by British voters are not certain, remain subject to negotiations between Great Britain and the European Union and will be determined over the coming years; such structure and details are likely to have significant effects on financial markets and business activities, and regulatory environment, particularly in Great Britain and Europe, some or all of which effects could have a material effect on our or our clients’ or counterparties’ businesses, operations, investment activities or financial results; the financial strength and continuing viability of the counterparties with which we or our clients do business and to which we have investment, credit or financial exposure, including, for example, the direct and indirect effects on counterparties of the sovereign-debt risks in the U.S., Europe and other regions; increases in the volatility of, or declines in the level of, our net interest revenue, 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 the possibility that we may change 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, and the liquidity 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; 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 the respective 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 levels 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 requirements and risk profile; the manner and timing with which the Federal Reserve and other U.S. and foreign regulators implement changes to the regulatory framework applicable to our operations, including implementation of the Dodd-Frank Act, the Basel III final rule and European legislation (such as the Alternative Investment Fund Managers Directive, Undertakings for Collective Investment in Transferable Securities Directives and Markets in Financial Instruments Directive II); among other consequences, these regulatory changes impact the levels of regulatory capital we must maintain, acceptable levels of credit exposure to third parties, margin requirements applicable to derivatives, and restrictions on banking and financial activities. 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 and compliance programs, and changes in governmental enforcement approaches to perceived failures to comply with regulatory or legal obligations; we may not successfully implement our plans to address the deficiencies jointly identified by the Federal Reserve and the FDIC in April 2016 with respect to our 2015 resolution plan, or those plans may not be considered to be sufficient by the Federal Reserve and the FDIC, due to a number of factors, including, but not limited to challenges we may experience in interpreting and addressing regulatory expectations, failure to implement remediation in a timely manner, the complexities of development of a comprehensive plan to resolve a global custodial bank and related costs and dependencies. If we fail to meet regulatory expectations to the satisfaction of the Federal Reserve and the FDIC in our resolution plan submission due on October 1, 2016 or in any future submission, we could be subject to more stringent capital, leverage or liquidity requirements, or restrictions on our growth, activities or operations; adverse changes in the regulatory ratios that we are required or will be required to meet, whether arising under the Dodd-Frank Act or the Basel III final rule, 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 ratios that cause changes in those ratios as they are measured from period to period; increasing requirements to obtain the prior approval of the Federal Reserve or our other U.S. and non-U.S. regulators for the use, allocation or distribution of our capital or other specific capital actions or programs, including acquisitions, dividends and stock purchases, without which our growth plans, distributions to shareholders, share repurchase programs or other capital 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; financial market disruptions or economic recession, whether in the U.S., Europe, Asia or other regions; our ability to develop and execute State Street Beacon, our multi -year transformation program to create cost efficiencies and to fully digitize our business to support the development of new solut ions and capabilities for 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 and governance that meet our expectations and those of our clients and our regulators; the results of our review of our billing practices, including additional amounts we may be required to reimburse clients, as well as potential consequences of such review, including damage to our client relationships 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; 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, and the possibility of significant reductions in the liquidity or valuation of assets underlying those pools; 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 and their effective operation both independently and with external systems, and complexities and costs of protecting the security of our systems and data; 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 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; 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; our ability to complete acquisitions, joint ventures and divestitures, including the ability to obtain regulatory approvals, the ability to arrange financing as required and the abili ty to satisfy closing conditions; the risks that our acquired businesses and joint ventures will not achieve their anticipated financial and operational 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 recognize emerging 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; changes in accounting standards and practices; 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 2015 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 speak only as of the date hereof, July 27, 2016, and we do not undertake efforts to revise those forward-looking statements to reflect events after that date.

3 1 Long-term goals are presented on an operating-basis, a non-GAAP presentation, and do not reflect the near-term expectations. As a result, information needed to provide corresponding GAAP-basis long-term goals, which is primarily dependent on future events or conditions that may be uncertain and is difficult to predict and estimate. We are therefore unable to provide a reconciliation of our operating-basis long-term goals to a GAAP-basis presentation. Refer to the Appendix included with this presentation for explanations of our non-GAAP measures. Focused strategy supports long-term financial goals LONG-TERM SHAREHOLDER VALUE BUILDING ON OUR STRONG CORE ACHIEVING A DIGITAL ENTERPRISE INVESTING IN OPPORTUNITIES FOR GROWTH OPTIMIZING CAPITAL Aligning solutions with client needs, continuing to innovate, capturing value and improving efficiency Driving greater transformation that benefits clients and our shareholders Acting on changes in the market to fuel expansion of products and services and the markets we serve Adapting to new rules and optimizing returns for shareholders TALENT, CULTURE, INNOVATION AND RISK EXCELLENCE Operating-Basis1 Financial Goals: Revenue Growth of 8%-12%, EPS Growth of 10%-15% and ROE of 12%-15%

4 Summary of GAAP-Basis Results $ in millions 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 2Q16 vs 2Q15 2Q16 vs 1Q16 Fee revenue: Servicing fees 1,283$ 1,296$ 1,296$ 1,268$ 1,319$ 1,289$ 1,277$ 1,242$ 1,239$ (6.1)% (0.2)% Management fees 300 316 299 301 304 287 282 270 293 (3.6) 8.5 Trading services 260 278 293 324 281 294 247 272 267 (5.0) (1.8) Securities finance revenue 147 99 106 101 155 113 127 134 156 0.6 16.4 Processing fees and other 44 17 57 61 17 120 111 52 98 476.5 88.5 Total fee revenue 2,034 2,006 2,051 2,055 2,076 2,103 2,044 1,970 2,053 (1.1) 4.2 Net interest revenue (NIR) 561 570 574 546 535 513 494 512 521 (2.6) 1.8 Net gain/(loss) related to investment securities (2) - - (1) (3) (2) - 2 (1) nm nm Total revenue 2,593 2,576 2,625 2,600 2,608 2,614 2,538 2,484 2,573 (1.3) 3.6 Provision for Loan Losses 2 2 4 4 2 5 1 4 4 Expenses: Compensation and employee benefits 978 953 972 1,087 984 1,051 939 1,107 989 0.5 (10.7) Information systems and communications 244 242 246 247 249 265 261 272 270 8.4 (0.7) Transaction processing services 193 199 201 197 201 201 194 200 201 --- 0.5 Occupancy 115 119 113 113 109 110 112 113 111 1.8 (1.8) Acquisition and restructuring costs 28 20 52 6 3 10 6 104 20 566.7 (80.8) Other 292 359 473 447 588 325 345 254 269 (54.3) 5.9 Total expenses 1,850 1,892 2,057 2,097 2,134 1,962 1,857 2,050 1,860 (12.8) (9.3) Income before income tax expense 741 682 564 499 472 647 680 430 709 50.2 64.9 Income tax expense 122 126 76 94 54 67 103 62 92 70.4 48.4 Net income (loss) from minority interest - - - - - 1 (1) - 2 --- --- Net income 619 556 488 405 418 581 576 368 619 48.1 68.2 Earnings per share (EPS) 1.38$ 1.25$ 1.11$ 0.89$ 0.93$ 1.31$ 1.34$ 0.79$ 1.47$ 58.1 86.1 Return on average common equity (ROE) 11.9% 10.6% 9.4% 7.9% 8.2% 11.3% 11.6% 6.8% 12.4% Pre-tax operating margin 28.6% 26.5% 21.5% 19.2% 18.1% 24.8% 26.8% 17.3% 27.6% Average diluted common shares outstanding (in millions) 435.3 429.7 424.3 418.8 416.7 412.2 407.0 403.6 398.8 Quarters % Change

5 Strategic Priorities: 2016 Performance Through June 30, 20161 (Versus 2015 Through June 30, 2015 Where Applicable): 1. Become a digital leader in financial services: • Continued progress on State Street Beacon initiatives in support of digitization, including implementing NAV Oversight, Fund Insights and Enterprise Pricing Workstation solutions to support clients with improved data accuracy and easier access to information • New solutions delivering advantage to clients – straight through processing quality data/higher accuracy and fast delivery • Pre-tax restructuring charge of $13M in 2Q16 related to advancing State Street Beacon2 2. Drive growth from core franchise: • New asset servicing wins of approximately $750B, including appointment by Deka Bank and Allianz Global Investors to provide a range of investment services for $583B in assets and a custody and outsourcing mandate for Sumitomo Mitsui Asset Management Co., Ltd.’s Japanese investment trust business (together with a designation as their preferred global custodian) • Greater than $1T of servicing commitments remaining to be installed as of June 30, 2016 3. Continuous investment in new products and solutions to drive revenue and differentiation: • Closed GE Asset Management (GEAM) acquisition on July 1, 2016, which extends core investment management capabilities and advances growth in high demand areas such as OCIO outsourcing • In 2Q16 SSGA introduced 35 new products (including 15 ETFs), capturing nearly $1B AUM from initial investments or asset retention from clients • Investing in capabilities to help clients address SEC Modernization reporting requirements 4. Increased focus on expense management: • 2Q16 and 6/30/2016 YTD operating-basis total expenses1 lower compared to 2Q15 and 6/30/2015 YTD • Flat operating-basis total expenses in 2Q16 from 1Q16, excluding the impact of seasonal equity compensation for retirement-eligible employees and payroll taxes in 1Q16 of $122M • State Street Beacon2 related annualized pre-tax net fiscal expense savings for 2016 now expected to be at least $140M, which is exceeding initial first year expense reduction targets 5. Leverage strong capital position to return capital to shareholders3: • Quarterly common stock dividends declared per share of $0.34 in 2Q16 – expect 3Q16 common stock dividends declared per share of $0.38, an increase of 12% • $390M in common stock (6.5M shares) bought back in 2Q16 • Board of Directors approved a new common stock repurchase program authorizing the purchase of up to $1.4B in common stock Made substantive progress in first half of 2016 on State Street’s transformation while delivering value in the short term • YTD = year-to-date • Refer to the Appendix included with this presentation for footnotes 1 to 3.

6 • With $30T in investable assets, Europe is 35% of world AUM and is expected to grow approximately 30% by 20201 • Gross domestic product trends and economic outlook reinforce high net savings rates2 while lower-for-longer interest rates encourage a search for yield that pushes funds out of deposits into other investments, including mutual funds and cross-border investments • Investment and distribution dynamics remain drivers: ‒ Demand for alternatives, multi-asset solutions, ETFs ‒Offshore fund market supporting global distribution via Ireland and Luxembourg • In addition to Brexit, regulatory changes and cost pressures creating expanded client demand for complex services and greater outsourcing • We are geographically diverse with the potential to offer passportable EU and local specific services across Europe: ‒ 10,700+ employees in 12 European countries with an onshore footprint covering jurisdictions with >70% of total European managed assets1 ‒ ~20% of headcount in the UK, primarily operating out of a branch of our US bank ‒Europe banking operations operate out of an international bank based in Germany, which accounts for ~50% of our headcount across 9 countries3 ‒ ~30% of headcount in Luxembourg and Ireland, the main markets for offshore (internationally distributed) funds • We are well positioned to support our clients throughout Europe: ‒ Leader in offshore servicing, grew offshore AUA by 70% over last 3 years4 while gaining market share and support the global distribution of regulated products (i.e., UCITS) distributed to more than 70 countries worldwide ‒ Industry leader in European ETF servicing – 67% European ETF AUA share5 Despite the Brexit vote, Europe and the UK continue to represent a significant opportunity for us We have strengths in offshore, in the UK, and in pan-European fund structures, an on-the-ground presence in all key European domestic markets, and a demonstrated ability to partner with clients to help them navigate complexity and address change • Refer to the Appendix included with this presentation for footnotes 1 to 5.

7 1 Represents operating-basis financial information, a non-GAAP presentation. Refer to the Appendix included with this presentation for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information. 2Q16 fee revenues supported by improved market environment from 1Q16 and the seasonal up-tick in securities finance, while expense control reduced expenses compared to 2Q15 2Q16 highlights: • Operating-basis EPS of $1.46 increased 49.0% from 1Q16 and 7.4% from 2Q15: • Operating-basis EPS reflects a decrease in operating-basis total expenses from 1Q16 due to seasonal deferred incentive compensation for retirement-eligible employees of $122M in 2Q16 • Total fee revenue of $2.1B increased 4.8% from 1Q16 and decreased 2.0% from 2Q15 • Total revenue of $2.7B increased 3.9% from 1Q16 and decreased 1.9% from 2Q15 • Total expenses of $1.8B decreased 5.9% from 1Q16 and 2.8% from 2Q15: • Effective tax rate of 27.0% decreased 210bps from 1Q16 and 260bps from 2Q15 • Pre-tax operating margin of 31.5% increased 710bps from 1Q16 and 60bps from 2Q15 2Q16 Operating-Basis (Non-GAAP) Financial Highlights1 YTD16 compared to YTD15: • Operating-basis EPS of $2.44 decreased 3.2% • Total fee revenue of $4.2B decreased 2.8% • Total revenue of $5.2B decreased 2.8% • Total expenses of $3.8B decreased slightly • Effective tax rate of 27.9% decreased 120bps • Pre-tax operating margin of 28.0% decreased 110bps • ROE of 10.4% decreased 70bps Capital: • Purchased approximately $390M of our common stock in 2Q16 • Declared a common stock dividend during the quarter of $0.34 per share

8 2Q16 EPS increased relative to the weak 1Q15 market environment and benefited from the seasonal up-tick in securities finance, while compared to 2Q15 the share buyback and disciplined expense control drove the improvement in 2Q16 EPS 1.46 1.211.15 1.36 0.98 2Q16 vs 2Q15 +7.4% 2Q16 1Q16 4Q15 3Q15 2Q15 Operating-Basis (Non-GAAP) EPS1 ($) 1 Represents operating-basis financial information, a non-GAAP presentation. Refer to the Appendix included with this presentation for explanations of our non-GAAP financial measures and for reconciliations of our operating- basis financial information. • 2Q16 operating-basis EPS increased from 2Q15, primarily due to lower expenses (primarily associated with professional services expense) and the impact of share repurchases, partially offset by lower fee revenue

9 Generated positive fee operating leverage in 2Q16 versus 2Q15 due to strong expense management Revenue ($M) 1 Represents operating-basis financial information, a non-GAAP presentation. Refer to the Appendix included with this presentation for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information. 2 Operating leverage is defined as rate of growth of total revenue less the rate of growth of expenses, each as determined on an operating basis. 3 Fee operating leverage is defined as rate of growth of total fee revenue less the rate of growth of expenses, each as determined on an operating basis. Expenses ($M) Operating-Basis (Non-GAAP) Results1 1,881 -2.8% 1,828 2,174 2,130 546556 -3 -1 2Q16 2Q15 2,675 -1.9% 2,727 Total fee revenue NIR Net gain/(loss) related to investment securities Operating Leverage2 (Revenue Growth (%) less Expense Growth (%); 2Q16 vs 2Q15) -1.9 Revenue Growth Expense Growth -2.8 +91bps 2Q16 vs 2Q15 (2.0)% (1.8)% +80bps -2.8 Expense Growth -2.0 Fee Revenue Growth Fee Operating Leverage3 (Fee Revenue Growth (%) less Expense Growth (%); 2Q16 vs 2Q15) 2Q16 2Q15

10 Substantial progress on expense reductions in 2Q16 reduced the fee operating leverage gap from 1Q16 Revenue ($M) 1 Represents operating-basis financial information, a non-GAAP presentation. Refer to the Appendix included with this presentation for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information. 2 Operating leverage is defined as rate of growth of total revenue less the rate of growth of expenses, each as determined on an operating basis. 3 Fee operating leverage is defined as rate of growth of total fee revenue less the rate of growth of expenses, each as determined on an operating basis. Expenses ($M) Operating-Basis (Non-GAAP) Results1 -1.4% 6/30/16 YTD 3,771 6/30/15 YTD 3,823 4,282 4,163 1,0851,121 -2.8% 6/30/16 YTD 5,249 1 6/30/15 YTD 5,399 -4 Total fee revenue Net gain/(loss) related to investment securities NIR Revenue Growth -2.8 -1.4 -142bps Expense Growth 6/30/16 YTD vs 6/30/15 YTD (2.8)% (3.2)% Fee Revenue Growth -142bps -2.8 Expense Growth -1.4 Operating Leverage2 (Revenue Growth (%) less Expense Growth (%); 6/30/16 YTD vs 6/30/15 YTD) Fee Operating Leverage3 (Fee Revenue Growth (%) less Expense Growth (%); 6/30/16 YTD vs 6/30/15 YTD)

11 2Q16 Fee revenue up 5% from 1Q16 primarily due to improved market conditions and the seasonal up-tick in securities finance Operating-Basis (Non-GAAP) Revenue1 ($M) 281 272 267 304 270 288 1,319 1,242 1,287 115 155 134 115 132 156 4Q15 2Q15 3Q15 1Q16 2Q16 2Q16 vs 2Q15 -2.0% 2Q16 vs 1Q16 +4.8% 1 Represents operating-basis financial information, a non-GAAP presentation. Refer to the Appendix included with this presentation for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information. 2 Represents the effects of applying 1Q15 weighted average foreign exchange rates to revenue, servicing fees, management fees and NIR for 1Q16. Notable operating-basis (non-GAAP)1 variances 2Q16 vs 2Q15: • Servicing fees were down 2.4% compared to 2Q15 primarily due to lower global equity markets • Management fees were down 5.3% compared to 2Q15 primarily due to lower global equity markets • Foreign exchange trading revenue was down compared to 2Q15 primarily due to lower client-related volumes • Brokerage and other fees were down compared to 2Q15 primarily due to lower transition management revenue, partially offset by higher fees associated with the GLD ETF • Securities finance revenue was up slightly compared to 2Q15 • Processing fees and other revenue was up 14.8% compared to 2Q15 primarily due to favorable valuation adjustments and higher revenue associated with bank owned life insurance Notable operating-basis (non-GAAP)1 variances 2Q16 vs 1Q16: • Servicing fees were up 3.6% compared to 1Q16 primarily due to higher global equity markets and net new business • Management fees were up 6.7% compared to 1Q16 primarily due to higher global equity markets and favorable net new business mix • Foreign exchange trading revenue was up slightly compared to 1Q16 • Brokerage and other fees were down from 1Q16 primarily due to lower revenue related to the exit of the WM/Reuters branded foreign exchange benchmark business • Securities finance revenue increased compared to 1Q16, primarily due to seasonality • Processing fees and other revenue was up 14.8% compared to 1Q16 due to higher equity earnings from joint ventures and favorable valuation adjustments 2Q16 vs 2Q15 (2)% (5)% (5)% 1% 15% 2Q16 vs 1Q16 4% 7% (2)% 16% 15% Processing fees and other Trading services Servicing fees Management fees Securities finance revenue

12 2Q16 net interest revenue (NIR) and net interest margin (NIM) benefitted from higher Federal funds rate at end of 4Q15 and disciplined liability pricing 198194201 221 233 2Q16 vs 2Q15 -15.1% 2Q16 1Q16 4Q15 3Q15 2Q15 2Q16 vs 1Q16 +2.1% Average Earning Assets ($B) 1 Includes operating-basis (non-GAAP) financial information where noted. Refer to the Appendix included with this presentation for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information. Operating-Basis (Non-GAAP)1 NIR and NIM ($M, %) 546539 513529 556 1.12 1.010.950.96 1.11 0 100 200 300 400 500 600 0.00 0.50 1.00 1.50 2.00 4Q15 1Q16 2Q16 NIR 2Q16 vs 1Q16 +1.3% 3Q15 2Q15 NIR 2Q16 vs 2Q15 -1.8% NIM NIR Notable Operating-basis (non-GAAP)1 variances 2Q16 vs 2Q15: • Net interest revenue was down 1.8% primarily due to our success in reducing the size of the balance sheet in 2015, partially offset by higher U.S. market interest rates and disciplined liability pricing Notable Operating-basis (non-GAAP)1 variances 2Q16 vs 1Q16: • Net interest revenue was up 1.3% primarily due to disciplined liability pricing, higher interest earning assets and the impact of income associated with a small number of discrete security prepayments

13 Expense control in 2Q16 resulted in lower operating expenses relative to 2Q15, and State Street Beacon savings accelerated in 2Q16 Operating-Basis (Non-GAAP) Expenses1 ($M) 338 201 200 201 249 272 270 984 1,104 992 254254 2Q16 vs 1Q16 -5.9% 2Q16 1,828 111 1Q16 1,943 113 4Q15 1,820 3Q15 1,877 2Q15 1,881 109 2Q16 vs 2Q15 -2.8% 1 Represents operating-basis financial information, a non-GAAP presentation. Refer to the Appendix included with this presentation for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information. Other Occupancy Transaction processing services Information systems and communications Compensation and employee benefits Notable operating-basis (non-GAAP)1 variances 2Q16 vs 2Q15: • Compensation and employee benefits expenses were up compared to 2Q15 primarily due to increased costs to support regulatory initiatives and new business mostly offset by State Street Beacon savings • Information systems and communication expenses were up primarily due to investments associated with supporting business (including State Street Beacon) and regulatory initiatives • Other expenses were down 24.9% primarily due to lower professional services, travel expenses and securities and processing costs Notable operating-basis (non-GAAP)1 variances 2Q16 vs 1Q16: • Compensation and employee benefits expenses were down due to costs associated with the seasonal deferred incentive compensation expense for retirement eligible employees and payroll taxes of $122M, partially offset by an annual merit increase 2Q16 vs 2Q15 1% 8% ---% 2% (25)% 2Q16 vs 1Q16 (10)% (1)% 1% (2)% ---%

14 1 As of period-end where applicable. 2 See Addendum included with the Earnings Press Release for a description of the investment portfolio. 3 Excludes Canadian and Hong Kong T-Bills. 4 Based on numerous assumptions, including holding the securities to maturity, anticipated prepayment speeds and credit quality. See discussion in State Street’s 2015 Annual Report on Form 10-K filed with the SEC. 5 For additional information, see discussion in State Street’s 2015 Annual Report on Form 10-K filed with the SEC. Continue to maintain high-quality balance sheet… 2Q161 Balance Sheet Highlights Investment portfolio2 • Size: $102.30B • Credit profile: 93% rated AAA/AA • Fixed-rate/floating-rate mix: 67%/33% • Duration: 2.0 years • Unrealized after-tax mark-to-market (MTM) gain: $796M • Purchases3: $6.6B with average tax-equivalent yield of 2.22% • Discount accretion remaining and expected to accrue over the remaining lives of the former conduit securities4: $203.5M Interest-rate risk metrics • Unrealized after-tax MTM loss sensitivity in an up 100bps shock to quarter-end interest rate levels hypothetical scenario: approximately $(0.9)B after-tax Senior secured bank loans • Total portfolio size: $3.5B • Floating rate • Credit: primarily BB/B • 2Q16 provision for loan losses: $3.9M • Total allowance for credit losses: $47.0M

15 • Refer to the Appendix included with this presentation for footnotes 1 to 4. …and our capital ratios remain strong 2Q16 Quarter-End Capital1 Positions Mar 31, 2016 June 30, 2016 Basel III Ratios2: Common equity tier 1 ratio (advanced approaches) Common equity tier 1 ratio (standardized approach) Tier 1 leverage ratios: State Street Corporation State Street Bank and Trust Company 12.3% 12.5% 6.9% 7.1% 12.0% 12.0% 7.0% 7.2% Supplementary leverage ratios: State Street Corporation State Street Bank and Trust Company 6.2% 6.4% 6.3% 6.4% Estimated pro forma fully phased-in Basel III ratios: Fully phased-in (effective January 1, 2019) common equity tier 1 ratio (advanced approaches)3 Fully phased-in (effective January 1, 2019) common equity tier 1 ratio (standardized approach)3 Fully phased-in (effective January 1, 2018) supplementary leverage ratios4 State Street Corporation State Street Bank and Trust Company 11.8% 11.9% 6.0% 6.2% 11.6% 11.5% 6.1% 6.3% • Common equity tier 1 standardized approach decreased approximately 50 basis points compared to March 31, 2016, primarily due to the increased risk weighted assets (RWA) generated by the foreign exchange volatility late in the quarter following the Brexit vote • Fully-phased-in supplementary leverage ratio at the Bank increased 10 basis points to 6.3%, primarily due to preferred stock issuance in the second quarter

16 • Creates a powerful value proposition for clients: – Expands SSGA’s alternatives capabilities while enhancing our active equity and fixed income teams, which broadens the solution sets we can provide to our combined client base –Expanded capabilities include direct private equity and real estate strategies –Complementary capabilities include active equity, fixed income and hedge fund strategies –Enhances Defined Benefit and Defined Contribution offerings to include outsourced CIO (OCIO) and insurance platforms –High quality organization with strong cultural alignment with SSGA • Transaction closed on July 1, 2016: –Purchase price of $435M, with up to an additional $50M tied to incremental opportunities with GE – Increased SSGA’s AUM by approximately $110B at the start of 3Q16 – 270 employees on boarded • Projected transaction financial metrics: –Excluding merger and integration charges, the transaction is expected to be accretive to operating-basis EPS for the first full twelve–month period following the close of the transaction – In the first full twelve-month period following the close of the transaction, operating-basis fee revenue from the transaction is expected to be approximately $270M to $300M: – 3Q16 fee revenue from the transaction is expected to be approximately $60M; and excluding merger and integration costs, the contribution to net income before tax is expected to be modestly positive in 3Q16 –As the integration progresses, expect additional expense synergies in 4Q16 and 2017, and additional revenue growth in 2017 – Total projected merger and integration costs: $70-$80M through 2018 – It is estimated that the transaction will result in a reduction of 40-50bps to State Street Corporation’s fully phased-in risk- based capital ratios under both standardized and advanced approaches and of approximately 15-20bps to its fully phased- in tier 1 leverage and supplementary leverage ratios relative to levels at June 30, 2016 – Issued $500M of preferred shares in April, 2016, to offset the impact on our leverage ratios Acquisition of GE Asset Management (GEAM) on July 1, 2016 extends our core investment management capabilities, including in the high growth outsourced CIO market

17 Updated 2016 Outlook1: We continue to have the objective of generating positive fee operating leverage2 for 2016 relative to 2015, excluding the contributions of GEAM • Expect modest operating-basis fee revenue growth for full year 2016 compared to full year 2015 under current market conditions in July 2016 and excluding the contributions of the acquired GEAM business: –Do expect to see the traditional seasonal reduction in securities finance revenue in 3Q16 from 2Q16 –New business yet to be installed and new business pipelines support full-year fee growth expectation • Expect approximately flat operating-basis expense growth3 for full year 2016 compared to full year 2015, with variability across quarters and excluding the contributions of the acquired GEAM business: –On track to generate at least $140M in estimated annual pre-tax fiscal expense savings4 from State Street Beacon in 2016 –Expect restructuring charges as State Street Beacon progresses – first charge was $97M in 1Q16 and had a charge of $13M in 2Q16 • Expect operating-basis NIR for 2016 to modestly exceed the high end of our Static scenario of $2,025 - $2,125M5 • Expect operating-basis effective tax rate for 2016 to be 30-32% • Expect preferred dividends on present outstanding preferred shares to be $173M in 2016 ($48.6M in 1Q16, $33.6M in 2Q16, $55.2M in 3Q16 and $35.6M in 4Q16) – includes a total of $18M from issuance of $500M in April 2016 • Federal Reserve did not object to our capital plan following its review in the 2016 CCAR process: –Intend to increase quarterly common stock dividend by 12% to $0.38 per share in 3Q16, subject to Board of Directors approval6 –Board of Directors approved on June 29, 2016, a new common stock purchase program authorizing the purchase of up to $1.4B in common stock6 Refer to the Appendix included with this presentation for footnotes 1 to 6.

18 Appendix State Street Beacon 19 Footnotes to Slides 5, 6, 15 & 17 20-22 Definition of Metrics 23-24 Non-GAAP Measures, Regulatory Capital Ratios and Reconciliations 25-26

19 State Street Beacon on track to deliver financial benefits to be achieved through 2020 1 Estimated pre-tax expense savings improvement relate only to State Street Beacon and the targeted staff reductions announced as part of our 3Q15 financial results, and are based on projected improvement from our full-year 2015 operating-basis expenses, all else being equal. The full effect of the savings generated each year will be felt the following year. Actual expenses may increase or decrease in the future due to other factors. 2 Pre-tax operating margin targets assume the successful completion of State Street Beacon milestones and an external environment that is consistent with our long term assumptions, including: Fed Funds and U.S. market interest rates increase from December 31, 2015 levels by at least 100bps by the beginning of 2018; and regulatory expense growth moderates. Other factors may also effect the actual results. Operating-basis financial outlook is a non-GAAP presentation. See pages 25 and 26 of this Appendix for an explanation of our operating-basis (non-GAAP) presentation. Expected Annual Pre-Tax Net Run-Rate Expense Savings • To achieve estimated annual pre-tax net run-rate expense savings of $550M by the end of 2020 for full effect in 20211: − On track to deliver at least $140M in annual pre-tax fiscal expense savings in 2016 including targeted staff reductions announced in 3Q15 earnings call − Expect at least $125M in additional annual pre-tax net fiscal expense savings in 2017 • Annual pre-tax fiscal expense savings are net of significant investments in State Street Beacon commencing in 2016 Expected Profit Margins • To achieve and maintain an operating-basis pre-tax operating margin2 of at least 31% by 2018 and 33% by the end of 2020, given our assumptions, all else being equal Expected Pre-Tax Restructuring Charges • Estimated aggregate pre-tax restructuring charges of approximately $300M to $400M from 2016 through 2020 • Expect restructuring charges to be announced as State Street Beacon progresses, including charges of $110M for the first six months of 2016

20 Footnote to Slides 5, 6,15 & 17

21 Footnotes to slides 5 & 6 1 Includes operating-basis (non-GAAP) financial information. Operating-basis financial performance and outlook are a non-GAAP presentation. Refer to the addendum linked to this presentation for explanations of our non-GAAP financial measures and for reconciliations of our historical operating-basis financial information. 2 Estimated pre-tax expense savings improvement relate only to State Street Beacon and the targeted staff reductions announced as part of our 3Q15 financial results (includes targeted staff reductions in October 2015), and are based on projected improvement from our full-year 2015 operating-basis expenses, all else being equal. The full effect of the savings generated each year will be felt the following year. Actual expenses may increase or decrease in the future due to other factors. 3 State Street’s common stock and other stock dividends, including the declaration, timing and amount thereof, remain subject to consideration and approval by its Board of Directors at the relevant times. Stock purchases may be made using various types of mechanisms, including open market purchases or transactions off market, and may be made under Rule 10b5-1 trading programs. The timing of stock purchases, types of transactions and number of shares purchased will depend on several factors, including market conditions and State Street’s capital position, its financial performance and investment opportunities. The common stock purchase program does not have specific price targets and may be suspended at any time. Footnotes to slide 5: Footnotes to slide 6: 1 Source: Cerulli – July 7, 2016; State Street projections. 2 Euro area household net savings ratio ~1.5x U.S. by 2017. Source: OECD (2016), Household savings forecast (indicator). 3 This includes 3,000 employees in our regional operations hub in Poland, which provide support services to most of our core EMEA operating businesses, including the UK. 4 Offshore market information from Monterey Insight. Ireland data for the period June 30, 2012 to June 30, 2015, Luxembourg data from December 31, 2012 to December 31, 2015; domiciled funds only. The Monterey Insight data excludes assets under administration for the following categories: pension funds, insurance products, managed accounts and special purpose vehicles. 5 Asset figures sourced from Bloomberg as of October 30, 2015; service provider based on fund prospectuses; European stock-exchange websites.

22 Footnotes to slide 15 & 17 1 Includes operating-basis (non-GAAP) financial information. Operating-basis financial outlook is a non-GAAP presentation. Refer to the addendum linked to this presentation for explanations of our non-GAAP financial measures. 2 Fee operating leverage is defined as rate of growth of total fee revenue less the rate of growth of expenses, each as determined on an operating basis, and for these purposes, excluding any potential impact from the acquisition of GEAM. 3 Operating-basis expense growth outlook for full year 2016 compared to full year 2015 excludes any potential impact from the acquisition of GE Asset Management (GEAM). Including GEAM’s expenses, operating-basis expense growth could exceed 0% for the full year 2016 compared to 2015. 4 Estimated pre-tax expense savings improvement relate only to State Street Beacon and the targeted staff reductions announced as part of our 3Q15 financial results (includes targeted staff reductions in October 2015), and are based on projected improvement from our full-year 2015 operating-basis expenses, all else being equal. The full effect of the savings generated each year will be felt the following year. Actual expenses may increase or decrease in the future due to other factors. 5 NIR will depend on the size of our balance sheet and client deposit behavior and our expectations assume no changes by the Federal Reserve Board to reference rates in 2016. 6 State Street’s common stock and other stock dividends, including the declaration, timing and amount thereof, remain subject to consideration and approval by its Board of Directors at the relevant times. Stock purchases may be made using various types of mechanisms, including open market purchases or transactions off market, and may be made under Rule 10b5-1 trading programs. The timing of stock purchases, types of transactions and number of shares purchased will depend on several factors, including market conditions and State Street’s capital position, its financial performance and investment opportunities. The common stock purchase program does not have specific price targets and may be suspended at any time. Footnotes to slide 17: 1 Unless otherwise specified, all capital ratios referenced on slide 15 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 our 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 elsewhere in the Appendix to this presentation for a further description of these ratios and for reconciliations applicable to State Street’s estimated pro forma fully phased-in Basel III ratios. June 30, 2016 capital ratios are presented as of quarter-end and 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,” 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. 3 Estimated pro forma fully phased-in ratios as of June 30, 2016 and March 31, 2016 (fully phased in as of January 1, 2019, as per Basel III phase-in requirements for capital) reflect capital calculated under the Basel III final rule and total risk-weighted assets calculated in conformity with the advanced approaches and standardized approach as the case may be, each on a fully phased-in basis under the Basel III final rule, based on our interpretations of the Basel III final rule as of July 27, 2016 and April 27, 2016, respectively as applied to our businesses and operations as of June 30, 2016 and March 31, 2016, respectively. 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 currently applicable regulatory requirements. 4 The estimated pro forma fully phased-in SLRs are as of June 30, 2016 and March 31, 2016 (fully phased-in as of January 1, 2018, as per the phase-in requirements of the SLR final rule) are preliminary estimates, calculated based on our interpretations of the SLR final rule as of July 27, 2016 and April 27, 2016, respectively, and as applied to our businesses and operations as of June 30, 2016 and March 31, 2016, respectively. Refer to the addendum included with this news release for reconciliations of these estimated pro forma fully phased-in SLRs to our SLRs under currently applicable regulatory requirements. Footnotes to slide 15:

23 Definition of Metrics

24 Definition of Metrics Diluted earnings per share (EPS) Net income available to common shareholders divided by diluted average common shares outstanding Return on equity (ROE) (Net income less dividends on preferred stock) divided by average common equity Pre-tax operating margin Income before income tax expense divided by total revenue Net interest margin (NIM) Net interest revenue divided by average interest-earning assets Operating Leverage Rate of growth of total revenue less the rate of growth of total expenses, each as determined on an operating basis Fee Operating Leverage Rate of growth of total fee revenue less the rate of growth of expenses, each as determined on an operating basis

25 Non-GAAP Measures, Regulatory Capital Ratios and Reconciliations

26 Non-GAAP measures, regulatory capital ratios and reconciliations In addition to presenting State Street’s financial results in conformity with U.S. generally accepted accounting principles, or GAAP, management also presents results on a non-GAAP, or "operating" basis, as it believes that this presentation supports meaningful analysis and comparisons of trends with respect to State Street’s normal ongoing business operations from period to period, as well as additional information (such as 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. Management believes that operating-basis financial information, which excludes the impact of revenue and expenses outside of State Street's normal course of business (such as acquisition and restructuring charges), facilitates an investor's understanding and analysis of State Street's underlying financial performance and trends in addition to financial information prepared and reported in conformity with GAAP. Excluding the impact of revenue and expenses outside of State Street’s normal course of business (such as acquisition and restructuring charges) provides additional insight into our underlying margin and profitability. Our operating-basis presentation also reports revenue from non-taxable sources, such as interest revenue from tax-exempt investment securities and processing fees and other revenue associated with tax-advantaged investments, on a fully taxable-equivalent basis. Taxable-equivalent revenue allows management to provide more meaningful comparisons of yields and margins on assets and to evaluate investment opportunities with different tax profiles. Management also believes that the use of other non-GAAP financial measures in the calculation of identified capital ratios is useful to understanding State Street’s capital position and is of interest to investors. Management provides forward-looking financial estimates and expectations on an operating basis (non-GAAP) because information needed to provide corresponding GAAP-basis information is primarily dependent on future events or conditions that may be uncertain and are difficult to predict or estimate. Management is therefore, in general, unable to provide a reconciliation of our operating-basis forward-looking financial estimates and expectations to a GAAP-basis presentation. However, although the timing and ultimate recognition of the discount accretion relating to our former conduit securities depends, in part, on factors that are outside of our control, including anticipated prepayment speeds, credit quality and general economic and financial market conditions, our outlook for operating-basis net interest revenue for the second half of 2016 assumes an estimated $20 million to $25 million of such discount accretion. 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 operating-basis financial information. To access the addendum go to www.statestreet.com/stockholder and click on “Filings & Reports – Quarterly Earnings”.