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): January 25, 2017

______________________

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 January 25, 2017, State Street Corporation issued a news release announcing its results of operations for the fourth-quarter of 2016 and full-year 2016. Copies of that news release and accompanying fourth-quarter 2016 and full-year 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 January 25, 2017, State Street Corporation made available a slide presentation providing highlights of State Street's fourth-quarter 2016 and full-year 2016 results of operations and related information as of December 31, 2016, which is being made available in connection with a January 25, 2017 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 January 25, 2017, announcing its fourth-quarter 2016 and full-year 2016 results of operations and accompanying fourth-quarter 2016 and full-year 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 fourth-quarter 2016 and full-year 2016 results of operations and related information as of December 31, 2016, which is being made available in connection with a January 25, 2017 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:	January 25, 2017

EXHIBIT INDEX

Exhibit No.	Description
99.1	State Street's news release dated January 25, 2017, announcing its fourth-quarter 2016 and full-year 2016 results of operations (this Exhibit 99.1 is furnished, not filed)
99.2	State Street's fourth-quarter 2016 and full-year 2016 financial information addendum (this Exhibit 99.2 is furnished, not filed)
99.3	Slide presentation providing highlights of State Street's fourth-quarter 2016 and full-year 2016 results of operations and related information as of December 31, 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 FOURTH-QUARTER 2016 GAAP-BASIS EPS OF $1.43

AND ROE OF 12.1%, ON REVENUE OF $2.5 BILLION; FULL-YEAR 2016 GAAP-BASIS

EPS OF $4.97 AND ROE OF 10.5%, ON REVENUE OF $10.2 BILLION

On an operating-basis, fourth-quarter 2016 EPS was $1.48 and ROE of 12.5%,

on revenue of $2.7 billion; Full-year 2016 operating-basis EPS was $5.27 and

ROE of 11.1%, on revenue of $10.8 billion

Two notable items during the fourth quarter of 2016 which affected both GAAP and operating-basis results, with a net benefit of $0.13 per share, were an acceleration of deferred compensation expense of $0.41 per share and an aggregate reduction of accrued tax expense of $0.54 per share, attributable to indefinitely invested foreign earnings and benefits attributable to incremental foreign tax credits and a foreign affiliate tax loss

Boston, MA ...January 25, 2017

In announcing today’s financial results, Joseph L. Hooley, State Street’s Chairman and Chief Executive Officer, said, “Our fourth-quarter and full-year 2016 results reflect the strength of our business and our commitment to advancing key strategic priorities that support State Street’s growth. Highlights for full-year 2016 include:

▪ New asset servicing commitments of $1.4 trillion, including $180 billion in the fourth quarter, reflecting strong growth with significant participation from Europe;

▪ Strong expense management and continued focus on positive fee operating leverage;

▪ Advancement of our strategic priority to become a digital leader in financial services through our State Street Beacon initiative, delivering tangible benefits to clients and more than doubling the expected annual pre-tax savings in 2016 to $175 million;

▪ Significant progress across all of our other strategic priorities - driving growth from our core franchise; continuing to invest in new products and solutions; and leveraging our strong capital position to return capital to shareholders.

Hooley concluded, “We are focused on our 2017 strategic priorities, which include: advancing our digital leadership through State Street Beacon; driving growth from core franchises; continuous investment in new products and solutions; and achieving our financial goals, including

1

generating positive fee operating leverage and continuing to return capital to shareholders. We look forward to updating you on our progress throughout the year."

Fourth-Quarter 2016 and Full-Year 2016 Highlights:

• New business: New asset servicing mandates during the fourth-quarter of 2016 and full-year 2016 totaled approximately $180 billion and $1.4 trillion, respectively. In our asset management business, we experienced fourth quarter net inflows of $16 billion and net outflows of $42 billion during full-year 2016. Notably, ETFs experienced $36 billion and $52 billion of net inflows during the fourth-quarter and full-year 2016, respectively.

• Currency impact: Compared to third-quarter 2016 and fourth-quarter of 2015, the strengthening of the U.S. dollar reduced our fee revenue outside of the U.S. in the fourth-quarter of 2016 by approximately $21 million and $27 million, respectively. Compared to full-year 2015, the strengthening U.S. dollar reduced our fee revenue outside the U.S. for full-year 2016 by approximately $67 million. A corresponding benefit to expenses in 2016 largely offset the currency impact on our fee revenues in each of the comparisons.

• Capital^(a): Our common equity tier 1 ratios as of December 31, 2016 were 11.7% and 11.6%, 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 December 31, 2016 were 10.9% and 10.9%, calculated under both the advanced approaches and standardized approach, respectively, in conformity with the Basel III final rule.

• Return of capital to shareholders: We purchased approximately $325 million of our common stock at an average price of $76.70 per share in the fourth-quarter of 2016. In addition, we declared a quarterly common stock dividend of $0.38 per share in the fourth-quarter of 2016.

^(a) 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.

Fourth-quarter of 2016 GAAP-basis and operating-basis results included the following notable items:

• A $145 million ($0.37 per share) tax benefit from the designation of certain of our foreign earnings as indefinitely invested overseas, based on a review of our need for capital, liquidity and future investment.

• Income taxes were also impacted by a $66 million ($0.17 per share) tax benefit attributable to incremental foreign tax credits and a foreign affiliate tax loss.

• A pre-tax charge of $249 million ($161 million after-tax, or $0.41 per share) associated with an amendment of the terms of outstanding deferred cash-settled incentive compensation awards for employees below executive vice president to remove continued service requirements, thereby accelerating the future expense that would have been recognized over the remaining term of the awards (1-4 years, depending on the award) had the continued service requirement not been removed. The deferred portion of many of our

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bonus-eligible employees' total compensation had become disproportionate relative to our peer organizations hindering our efforts to attract and retain talent. The expense that would otherwise have been associated with the amended awards will no longer be reflected in future periods. We expect that the acceleration of the expense will financially allow us to increase the immediate cash component of our mix of incentive compensation in future periods relative to what we have had in recent years and that the impact of increased immediate cash awards in 2017 will offset the going-forward effects of the 2016 expense acceleration in 2017. The expense impact of future immediate and deferred incentive compensation awards will depend upon corporate performance and market, regulatory, and other factors and conditions, including the form of those awards.

• Fourth-quarter results included estimated revenue of $64 million and estimated expenses of $58 million associated with the GE Asset Management (GEAM) business acquired on July 1, 2016. In addition to the estimated $58 million of fourth-quarter expenses, fourth-quarter results included $25 million of non-recurring acquisition costs related to the acquired GEAM business.

Fourth-Quarter 2016 GAAP-Basis Results:

(Table presents summary results, dollars in millions, except per share amounts, or where otherwise noted)	4Q16			3Q16			Increase (Decrease)			4Q15			Increase (Decrease)
Total fee revenue	$	2,014		$	2,079		(3.1	)%		$	2,044		(1.5	)%
Net interest revenue	514			537			(4.3	)		494			4.0
Total revenue	2,530			2,620			(3.4	)		2,538			(0.3	)
Provision for loan losses	2			—			nm			1			nm
Total expenses	2,183			1,984			10.0			1,857			17.6
Net income available to common shareholders	557			507			9.9			547			1.8
Earnings per common share:
Diluted	1.43			1.29			10.9			1.34			6.7
Financial ratios:
Return on average common equity	12.1		%	10.6		%	150		bps	11.6		%	50		bps
Total assets as of period-end	$	242,698		$	256,140		(5.2	)%		$	245,155		(1.0	)%
Quarterly average total assets	232,999			233,017			—			228,163			2.1

^nm Not meaningful

3

Full-Year 2016 GAAP-Basis Results:

(Table presents summary results, dollars in millions, except per share amounts, or where otherwise noted)	2016			2015			Increase (Decrease)
Total fee revenue	$	8,116		$	8,278		(2.0	)%
Net interest revenue	2,084			2,088			(0.2	)
Total revenue	10,207			10,360			(1.5	)
Provision for loan losses	10			12			nm
Total expenses	8,077			8,050			0.3
Net income available to common shareholders	1,968			1,848			6.5
Earnings per common share(1):
Diluted	4.97			4.47			11.2
Financial ratios:
Return on average common equity	10.5		%	9.8		%	70		bps
Total assets as of year-end	$	242,698		$	245,155		(1.0	)%
Average total assets	229,727			250,432			(8.3	)

⁽¹⁾ The 2016 and 2015 results included net after-tax charges of $83 million and $4 million, respectively, or $0.21 and $0.01 per share, respectively, primarily related to State Street Beacon.

^nm Not meaningful

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.

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

(Table presents summary results, dollars in millions, except per share amounts, or where otherwise noted)	4Q16			3Q16			Increase (Decrease)			4Q15			Increase (Decrease)
Total fee revenue	$	2,200		$	2,213		(0.6	)%		$	2,075		6.0	%
Net interest revenue	547			537			1.9			513			6.6
Total revenue	2,749			2,754			(0.2	)		2,588			6.2
Provision for loan losses	2			—			nm			1			nm
Total expenses	2,143			1,909			12.3			1,820			17.7
Net income available to common shareholders	577			532			8.5			494			16.8
Total assets as of period-end	242,698			256,140			(5.2	)		245,155			(1.0	)
Quarterly average total assets	232,999			233,017			—			228,163			2.1
Diluted Earnings per Share	1.48			1.35			9.6			1.21			22.3
Return on average common equity	12.5		%	11.1		%	140		bps	10.5		%	200		bps
Net unrealized (losses) gains on investment securities, after-tax, as of period-end(1)	$	(170	)	$	703		(124.2	)%		$	58		(393.1	)%

^nm Not meaningful

⁽¹⁾ Includes net unrealized (losses) gains on investment securities, after tax, for securities classified as available for sale (included in accumulated other comprehensive income) of $(35) million, and held-to-maturity, representing the unrecognized difference between amortized cost and fair value, of $(135) million as of December 31, 2016.

The growth rate of operating-basis total expenses exceeded the growth rate of operating-basis fee revenue during the fourth-quarter of 2016 relative to the fourth-quarter of 2015, representing negative fee operating leverage of 1,173 basis points. The growth rate of operating-basis total expenses exceeded the growth rate of operating-basis fee revenue by 280 basis points during full-year 2016 relative to full-year 2015.

Excluding the expense associated with the acceleration of deferred cash awards and the impact of the acquired GEAM business¹, the growth rate of operating-basis fee revenue exceeded the growth rate of operating-basis expenses during the fourth-quarter of 2016 relative to the fourth-quarter of 2015, representing positive fee operating leverage of 206 basis points. Excluding the items noted above¹, the growth rate of operating-basis total fee revenue exceeded the growth rate of operating-basis total expenses by 51 basis points during full-year 2016 relative to full-year 2015.

State Street Beacon, our multi-year transformation program, delivered $175 million in estimated annual pre-tax savings in 2016.

¹Please refer to the addendum for a reconciliation of operating leverage on a stated basis to operating leverage excluding the impact of the acceleration of deferred cash awards and the acquired GEAM business.

Full-Year 2016 Operating-Basis (Non-GAAP) Results:

(Table presents summary results, dollars in millions, except per share amounts, or where otherwise noted)	2016			2015			Increase (Decrease)
Total fee revenue	$	8,576		$	8,472		1.2	%
Net interest revenue	2,169			2,163			0.3
Total revenue	10,752			10,629			1.2
Provision for loan losses	10			12			nm
Total expenses	7,823			7,520			4.0
Net income available to common shareholders	2,087			2,022			3.2
Total assets as of year-end	242,698			245,155			(1.0	)
Average total assets	229,727			250,432			(8.3	)
Diluted Earnings per Share	5.27			4.89			7.8
Return on average common equity	11.1		%	10.7		%	40		bps
Net unrealized (losses) gains on investment securities, after-tax, as of period-end(1)	$	(170	)	$	58		(393.1	)%

^nm Not meaningful

⁽¹⁾ Includes net unrealized (losses) gains on investment securities, after tax, for securities classified as available for sale (included in accumulated other comprehensive income) of $(35) million, and held-to-maturity, representing the unrecognized difference between amortized cost and fair value, of $(135) million as of December 31, 2016.

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The following tables reconcile select fourth-quarter 2016 and full-year 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.

Fourth-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	$	345		$	557		$	1.43
Tax-equivalent adjustments
Tax-advantaged investments (processing fees and other revenue)	186
Tax-exempt investment securities (net interest revenue)	43
Total	229
Non-operating adjustments
Discount accretion associated with former conduit securities (net interest revenue)	(10		)	(6		)	(.01		)
Severance costs associated with staffing realignment (compensation and employee benefits expenses)	(2		)	(1		)	—
Provision for legal contingencies	(1		)	9			.02
Acquisition & restructuring costs (expenses)(1)	43			23			.05
Effect on income tax of non-operating adjustments	—			(5		)	(.01		)
Total	30			20			.05
Operating-basis	$	604		$	577		$	1.48

⁽¹⁾ Includes a pre-tax charge of $21 million ($8 million after tax or $0.02 per share) primarily related to State Street Beacon.

Full-Year 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	$	2,120		$	1,968		$	4.97
Tax-equivalent adjustments
Tax-advantaged investments (processing fees and other revenue)	470
Tax-exempt investment securities (net interest revenue)	167
Total	637
Non-operating adjustments
Discount accretion associated with former conduit securities (net interest revenue)	(82		)	(50		)	(.13		)
Severance costs associated with staffing realignment (compensation and employee benefits expenses)	(11		)	(6		)	(.02		)
Provision for legal contingencies	41			51			.13
Acquisition & restructuring costs (expenses)(1)	209			126			.32
Gain on sale of WM/Reuters	(53		)	(40		)	(.10		)
Expense billing matter(2)	58			38			.10
Total	162			119			.30
Operating-basis	$	2,919		$	2,087		$	5.27

⁽¹⁾ Includes a pre-tax charge of $140 million ($83 million after tax or $0.21 per share) primarily related to State Street Beacon.

⁽²⁾ 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 expenses on the following pages.

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Selected Financial Information and Ratios

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

Assets Under Custody and Administration and Assets Under Management
(Dollars in billions, except market indices)	4Q16		3Q16		Increase (Decrease)		4Q15		Increase (Decrease)
Assets under custody and administration(1)(2)	$	28,771	$	29,178	(1.4	)%	$	27,508	4.6	%
Assets under management(2)(3)	2,468		2,446		0.9		2,245		9.9
Market Indices(4):
S&P 500® daily average	2,185		2,162		1.1		2,052		6.5
MSCI EAFE® daily average	1,660		1,678		(1.1	)	1,732		(4.2	)
MSCI® Emerging Markets daily average	877		887		(1.1	)	828		5.9
S&P 500® average of month-end	2,188		2,171		0.8		2,068		5.8
MSCI EAFE® average of month-end	1,660		1,692		(1.9	)	1,743		(4.8	)
MSCI® Emerging Markets average of month-end	877		890		(1.5	)	819		7.1
Barclays Capital U.S. Aggregate Bond Index® period-end	1,976		2,037		(3.0	)	1,925		2.6
Barclays Capital Global Aggregate Bond Index® period-end	451		486		(7.2	)	442		2.0
Average Foreign Exchange Rate (Euro vs. USD)	1.078		1.116		(3.4	)	1.095		(1.6	)
Average Foreign Exchange Rate (GBP vs. USD)	1.242		1.312		(5.3	)	1.517		(18.1	)

⁽¹⁾ Includes assets under custody of $21,725 billion, $21,910 billion and $21,258 billion, as of December 31, 2016, September 30, 2016 and December 31, 2015, respectively.

⁽²⁾ As of period-end.

⁽³⁾ Includes assets under management as part of the GEAM business acquired on July 1, 2016.

⁽⁴⁾ The index names listed in the table are service marks of their respective owners.

Assets Under Management

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

(Dollars in billions)	Equity			Fixed-Income			Cash(3)			Multi-Asset-Class Solutions			Alternative Investments(4)			Total
Balance as of September 30, 2016	$	1,410		$	391		$	351		$	125		$	169		$	2,446
Long-term institutional inflows(1)	83			29			—			14			4			130
Long-term institutional outflows(1)	(95		)	(25		)	—			(9		)	(6		)	(135		)
Long-term institutional flows, net	(12		)	4			—			5			(2		)	(5		)
ETF flows, net	41			1			—			—			(6		)	36
Cash fund flows, net	—			—			(15		)	—			—			(15		)
Total flows, net	29			5			(15		)	5			(8		)	16
Market appreciation	56			(9		)	(1		)	(1		)	(1		)	44
Foreign exchange impact	(21		)	(9		)	(2		)	(3		)	(3		)	(38		)
Total market/foreign exchange impact	35			(18		)	(3		)	(4		)	(4		)	6
Balance as of December 31, 2016	$	1,474		$	378		$	333		$	126		$	157		$	2,468

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The following table presents year-to-date activity for the period ending December 31, 2016 of assets under management, by product category.

(Dollars in billions)	Equity			Fixed-Income			Cash(3)			Multi-Asset-Class Solutions			Alternative Investments(4)			Total
Balance as of December 31, 2015	$	1,326		$	312		$	368		$	103		$	136		$	2,245
Long-term institutional inflows(1)	244			90			—			48			13			395
Long-term institutional outflows(1)	(301		)	(96		)	—			(34		)	(21		)	(452		)
Long-term institutional flows, net	(57		)	(6		)	—			14			(8		)	(57		)
ETF flows, net	37			9			—			—			6			52
Cash fund flows, net	—			—			(37		)	—			—			(37		)
Total flows, net	(20		)	3			(37		)	14			(2		)	(42		)
Market appreciation	140			10			—			9			14			173
Foreign exchange impact	(10		)	(3		)	(2		)	(3		)	(2		)	(20		)
Total market/foreign exchange impact	130			7			(2		)	6			12			153
Acquisitions and transfers(2)	38			56			4			3			11			112
Balance as of December 31, 2016	$	1,474		$	378		$	333		$	126		$	157		$	2,468

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

⁽²⁾ Includes assets under management acquired as part of the acquisition of GEAM.

⁽³⁾ Includes both floating- and constant-net-asset-value portfolios held in commingled structures or separate accounts.

⁽⁴⁾ 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.

Revenue

The following tables provide the components of our GAAP-basis and operating-basis revenuefor the periods noted:

GAAP- basis Revenue

(Dollars in millions)	4Q16			3Q16		Increase (Decrease)		4Q15		Increase (Decrease)
Servicing fees	$	1,289		$	1,303	(1.1	)%	$	1,277	0.9	%
Management fees	361			368		(1.9	)	282		28.0
Trading services revenue:
Foreign exchange trading	182			159		14.5		143		27.3
Brokerage and other fees	111			108		2.8		104		6.7
Total trading services revenue	293			267		9.7		247		18.6
Securities finance revenue	136			136		—		127		7.1
Processing fees and other revenue	(65		)	5		nm		111		(158.6	)
Total fee revenue	2,014			2,079		(3.1	)	2,044		(1.5	)
Net interest revenue	514			537		(4.3	)	494		4.0
Gains (losses) related to investment securities, net	2			4		nm		—		nm
Total Revenue	$	2,530		$	2,620	(3.4	)%	$	2,538	(0.3	)%

^nm Not meaningful.

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Operating-Basis (non-GAAP) Revenue

(Dollars in millions)	4Q16		3Q16		Increase (Decrease)		4Q15		Increase (Decrease)
Servicing fees	$	1,289	$	1,303	(1.1	)%	$	1,277	0.9	%
Management fees	361		368		(1.9	)	282		28.0
Trading services revenue:
Foreign exchange trading	182		159		14.5		143		27.3
Brokerage and other fees	111		108		2.8		104		6.7
Total trading services revenue	293		267		9.7		247		18.6
Securities finance revenue	136		136		—		127		7.1
Processing fees and other revenue	121		139		(12.9	)	142		(14.8	)
Total fee revenue	2,200		2,213		(0.6	)	2,075		6.0
Net interest revenue	547		537		1.9		513		6.6
Gains (losses) related to investment securities, net	2		4		nm		—		nm
Total Revenue	$	2,749	$	2,754	(0.2	)%	$	2,588	6.2	%

^nm Not meaningful.

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 decreased from the third-quarter of 2016, primarily due to the impact of the stronger U.S. dollar. Compared to the fourth-quarter of 2015, servicing fees increased primarily due to net new business, partially offset by the stronger U.S. dollar.

Management fees decreased from the third-quarter of 2016, primarily due to the impact of the stronger U.S. dollar and cash outflows, partially offset by ETF inflows. Compared to the fourth-quarter of 2015, management fees increased primarily due to an estimated $64 million from the acquired GEAM business, lower money market fee waivers, higher global equity markets, and ETF inflows, partially offset by the stronger U.S. dollar and cash outflows.

Foreign exchange trading revenue increased from the third-quarter of 2016 and the fourth-quarter of 2015, in each case reflecting higher volatility and client-related volumes.

Brokerage and other fees increased slightly from the third-quarter of 2016. Compared to the fourth-quarter of 2015, brokerage and other fees increased, primarily due to higher transition management revenue.

Securities finance revenue was flat from the third-quarter of 2016. Compared to the fourth-quarter of 2015, securities finance revenue increased, primarily due to increased revenue from enhanced custody, partially offset by lower agency revenue.

Processing fees and other revenue on a GAAP-basis decreased compared to the third-quarter of 2016, primarily due to increased amortization related to the tax advantaged investment business, unfavorable valuation adjustments (including the impact of foreign exchange swaps), and lower revenue from joint ventures. Compared to the fourth-quarter of 2015, processing fees and other revenue decreased, reflecting a gain recorded in the fourth-quarter of 2015 related to the sale of commercial real estate acquired as a result of the Lehman Brothers bankruptcy, increased amortization related to the tax advantaged investment business, unfavorable valuation adjustments, and lower revenue from joint ventures.

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Processing fees and other revenueon an operating basis decreased compared to the third-quarter of 2016 and the fourth-quarter of 2015. The decrease from both periods reflects unfavorable valuation adjustments (including the impact of foreign exchange swaps) and lower revenue from joint ventures, partially offset by higher revenue associated with tax advantaged investments.

Net interest revenue on a GAAP-basis in the fourth-quarter of 2016 reflects lower discount accretion associated with the former conduit securities compared to the third-quarter of 2016 and the fourth-quarter of 2015.

Net interest revenue on an operating basis increased from the third-quarter of 2016, primarily due to adecrease in wholesale funding from elevated levels in the third-quarter of 2016 and several discrete security prepayments in the investment portfolio that represented $8 million net interest revenue. These benefits were partially offset by continued declines in foreign security yields. Compared to the fourth-quarter of 2015, net interest revenue increased, primarily due to higher market interest rates in the U.S., disciplined liability pricing and several discrete security prepayments in the investment portfolio that represented $8 million in net interest revenue. Net interestmargin,calculated based on operating-basis net interest revenue, increased to 108 basis points in the fourth-quarter of 2016 from 106 and 101 basis points in the third-quarter of 2016 and the fourth-quarter of 2015, respectively.

Expenses

The following tables provide the components of our GAAP-basis and operating-basis expensesfor the periods noted:

GAAP-basis Expenses

(Dollars in millions)	4Q16		3Q16		Increase (Decrease)		4Q15		Increase (Decrease)
Compensation and employee benefits	$	1,244	$	1,013	22.8	%	$	939	32.5	%
Information systems and communications	278		285		(2.5	)	261		6.5
Transaction processing services	199		200		(0.5	)	194		2.6
Occupancy	109		107		1.9		112		(2.7	)
Acquisition and restructuring costs(1)	43		42		2.4		6		616.7
Other	310		337		(8.0	)	345		(10.1	)
Total Expenses	$	2,183	$	1,984	10.0	%	$	1,857	17.6	%

⁽¹⁾ The acquisition costs associated with the GEAM business acquired on July 1, 2016 were $25 million and $29 million for the fourth-quarter and third-quarter of 2016, respectively.

Operating-basis (non-GAAP) Expenses

(Dollars in millions)	4Q16		3Q16		Increase (Decrease)		4Q15		Increase (Decrease)
Compensation and employee benefits	$	1,246	$	1,022	21.9	%	$	940	32.6	%
Information systems and communications	278		285		(2.5	)	261		6.5
Transaction processing services	199		200		(0.5	)	194		2.6
Occupancy	109		107		1.9		112		(2.7	)
Other	311		295		5.4		313		(0.6	)
Total Expenses	$	2,143	$	1,909	12.3	%	$	1,820	17.7	%

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Compensation and employee benefits expenses increased from the third-quarter of 2016, primarily due to $249 million associated with the acceleration of certain deferred cash settled awards, partially offset by the impact of the stronger U.S. dollar, one fewer payroll day in the fourth quarter of 2016, and State Street Beacon savings. Compensation and employee benefits expensesincreased from the fourth-quarter of 2015, primarily due to costs associated with the acceleration of certain deferred cash settled awards, higher incentive compensation, costs associated with the acquired GEAM business, and higher costs to support regulatory initiatives and new business, partially offset by State Street Beacon savings.

Information systems and communications expenses decreased slightly from the third-quarter of 2016. Compared to the fourth-quarter of 2015, Information systems and communication expenses increased, due to investments supporting new business and State Street Beacon, and the impact of the acquired GEAM business.

Occupancy expenses increased slightly compared to the third-quarter of 2016. Compared to fourth-quarter of 2015, occupancy expenses decreased, reflecting the impact of the stronger U.S. dollar.

Other expenses on a GAAP-basis decreased from the third-quarter of 2016, primarily due to lower litigation-related expenses, partially offset by higher professional services fees and securities processing costs. Other expenses decreased compared to the fourth-quarter of 2015, reflecting lower litigation-related expenses and higher expenses in the fourth quarter of 2015 associated with the previously disclosed expense billing matter.

Other expenses on an operating-basis increased from the third-quarter of 2016, primarily due to higher professional service fees and securities processing costs, partially offset by lower insurance expenses. Other expenses decreased slightly from the fourth-quarter of 2015, reflecting lower professional services fees and travel expenses, partially offset by costs associated with the acquired GEAM business and higher securities processing costs.

Fourth-quarter of 2016 GAAP-basis effective tax rate was -72.3% compared to 11.4% in the third-quarter of 2016 and 15.1% in the fourth-quarter of 2015. The fourth-quarter of 2016 reflects a reduction of $145 million in accrued tax expense attributable to the designation of certain of our foreign earnings as indefinitely invested overseas and tax benefits of $66 million from incremental foreign tax credits and a foreign affiliate tax loss.

Fourth-quarter of 2016 operating-basis effective tax rate was -1.5% compared to 30.3% in the third-quarter of 2016 and 31.8% in the fourth-quarter of 2015. Excluding the $145 million reduction of accrued tax expense and the $66 million of tax benefits from capital actions, the operating-basis effective tax rate in the fourth-quarter of 2016 was 34% which was higher than both the third-quarter of 2016 and the fourth-quarter of 2015 due to an increase in alternative energy investments.

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Capital    

The following table presents our regulatory capital ratios as of December 31, 2016 and September 30, 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 December 31, 2016 and September, 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.

December 31, 2016(1)	Basel III Advanced Approaches(2)		Basel III Standardized Approach		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	11.7	%	11.6	%	10.9	%	10.9	%
Tier 1 capital ratio	14.8		14.7		14.1		14.1
Total capital ratio	16.0		16.0		15.3		15.3
Tier 1 leverage ratio	6.5		6.5		6.2		6.2
September, 2016
Common equity tier 1 ratio	12.3	%	12.5	%	11.8	%	12.0	%
Tier 1 capital ratio	15.4		15.7		15.0		15.3
Total capital ratio	17.6		17.9		17.2		17.5
Tier 1 leverage ratio	6.8		6.8		6.6		6.6

	State Street						State Street Bank
As of December 31, 2016 (Dollars in millions)(1)	Transitional SLR			Fully Phased-In SLR(4)			Transitional SLR			Fully Phased-In SLR(4)
Tier 1 Capital	$	14,717		$	14,051		$	15,805		$	15,169
Total assets for SLR	251,032			250,558			247,410			246,956
Supplementary Leverage Ratio	5.9		%	5.6		%	6.4		%	6.1		%
As of September 30, 2016 (Dollars in millions)
Tier 1 Capital	$	15,407		$	14,928		15,817			15,374
Total assets for SLR	250,991			250,694			246,306			246,032
Supplementary Leverage Ratio	6.1		%	6.0		%	6.4		%	6.2		%

⁽¹⁾December 31, 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 December 31, 2016 and September, 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 December 31, 2016 and September, 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

In this news release:

• All earnings per share amounts (EPS) represent fully diluted earnings per common share.

• Return on average common shareholders' equity (ROE) 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.

• References to expense savings associated with State Street Beacon are: (1) estimated pre-tax expense savings and relate only to State Street Beacon, our multi-year transformation program; and (2) are based on projected improvement from our full-year 2015 operating-basis expenses, all else equal. In addition, 2016 State Street Beacon expense savings include targeted staff reductions announced in October 2015. The full effect of the savings generated each year will be reflected the following year. Actual expenses may increase or decrease in the future due to other factors.

• 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 any new asset servicing and asset management mandates is reflected in our assets under custody and administration and assets under management, as of December 31, 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.

• The fourth-quarter 2016 charge associated with an amendment of the terms of outstanding deferred cash-settled incentive compensation awards was accomplished by removing the continued service requirement associated with those awards for employees below the executive vice president level. The change did not affect deferred equity-settled incentive compensation awards (which, in the aggregate, represents a majority of the outstanding deferred compensation awards for the relevant employees), and we expect that future deferred cash-settled incentive compensation awards will retain the continued service requirement. The payment schedule associated with the recent deferred cash-settled incentive compensation awards will no longer be reflected in future periods.

Investor Conference Call and Quarterly Website Disclosures

State Street will webcast an investor conference call today, Wednesday, January 25, 2017, at 9:30 a.m. EST, 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 # 46613806.

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 # 46613806.

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

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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 fourth-quarter of 2016, State Street expects to publish its updates during the period beginning today and ending on or about February 16, 2017.

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 $29 trillion in assets under custody and administration and $2 trillion* in assets under management as of December 31, 2016, State Street operates globally in more than 100 geographic markets and employs 33,783 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 $31 billion as of December 31, 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 within the meaning of United States securities laws, including statements about our goals and expectations regarding our business, financial and capital condition, results of operations, strategies, the financial and market outlook, dividend and stock purchase programs, governmental and regulatory initiatives and developments, and the business environment. Forward-looking statements are often, but not always, identified by such forward-looking terminology as “outlook,” “expect,” "priority," “objective,” “intend,” “plan,” “forecast,” “believe,” “anticipate,” “estimate,” “seek,” “may,” “will,” “trend,” “target,” “strategy” and “goal,” or similar statements or variations of such terms. These statements are not guarantees of future performance, are inherently uncertain, are based on current assumptions that are difficult to predict and involve a number of risks and uncertainties. Therefore, actual outcomes and results may differ materially from what is expressed in those statements, and those statements should not be relied upon as representing our expectations or beliefs as of any date subsequent to January 25, 2017.

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

• 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;

14

• 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 needs, regulatory 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, resolution 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 have a credible resolution plan by July 2017, or that plan 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 to be filed on July 1, 2017 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 or non-objection 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 corporate activities, including, without limitation, acquisitions, dividends and stock purchases, without which our growth plans, distributions to shareholders, share repurchase programs or other capital or corporate initiatives may be restricted;

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

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• economic or financial market disruptions in the U.S. or internationally, including that which may result from recessions or political instability, for example, the U.K.'s referendum to exit from the European Union may continue to disrupt financial markets or economic growth in Europe or similarly, financial markets may react sharply or abruptly to actions taken by the new Presidential Administration in the United States;

• our ability to develop and execute State Street Beacon, our multi-year transformation program to digitize our business, deliver significant value and innovation for our clients and lower expenses across the organization, any failure of which, in whole or in part, may among other things, reduce our competitive position, diminish the cost-effectiveness of our systems and processes or provide an insufficient return on our associated investment;

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

• the 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, including, without limitation, that a resolution of the SEC's previously disclosed investigation concerning six EMEA-based (Europe, Middle-East and Africa) clients that were overcharged for transition management services in 2010 and 2011, on the previously disclosed terms agreed upon in principle with the SEC Staff or otherwise, is not final and is subject to completion of negotiations with the SEC Staff, followed by review and consideration by the SEC, and the terms of any such settlement, including, without limitation, the amount of the related penalty, remain subject to change;

• due to the large pools of assets controlled by our institutional clients, we are subject to the risk of potentially significant variability in our assets under custody and administration and assets under management, and correspondingly in our fee revenue and results of operations, in the event of the loss or gain of any one client or the re-balancing or re-investment of a significant portion of any one or more clients’ assets into lower- or higher-fee asset classes, and we are subject to significant pressure to reduce the fees we charge for our services as a result of the considerable market influence exerted by those clients and other competitive forces;

• 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;

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

• 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.

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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 should not by relied on as representing our expectations or beliefs as of any time subsequent to the time this news release is first issued, and we do not undertake efforts to revise those forward-looking statements to reflect events after that time.  

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EX-99.2

Exhibit 99.2

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
December 31, 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	16
Capital:
Regulatory Capital	21
Reconciliation of Tangible Common Equity Ratio	22
Reconciliations of Fully Phased-In Ratios	23
Reconciliations of Supplementary Leverage Ratios	27

This financial information should be read in conjunction with State Street's news release dated January 25, 2017.

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			3Q16			4Q16			4Q16 vs. 4Q15		4Q16 vs. 3Q16		2015			2016			2016 vs. 2015
Revenue:
Fee revenue	$	2,055		$	2,076		$	2,103		$	2,044		$	1,970		$	2,053		$	2,079		$	2,014		(1.5	)%	(3.1	)%	$	8,278		$	8,116		(2.0	)%
Net interest revenue	546			535			513			494			512			521			537			514			4.0		(4.3	)	2,088			2,084			(0.2	)
Net gains (losses) from sales of available-for-sale securities	—			(3		)	(2		)	—			2			(1		)	6			2			nm		nm		(5		)	9			nm
Net losses from other-than-temporary impairment	(1		)	—			—			—			—			—			(2		)	—			nm		nm		(1		)	(2		)	nm
Total revenue	2,600			2,608			2,614			2,538			2,484			2,573			2,620			2,530			(0.3	)	(3.4	)	10,360			10,207			(1.5	)
Provision for loan losses	4			2			5			1			4			4			—			2			nm		nm		12			10			nm
Total expenses	2,097			2,134			1,962			1,857			2,050			1,860			1,984			2,183			17.6		10.0		8,050			8,077			0.3
Income before income tax expense	499			472			647			680			430			709			636			345			(49.3	)	(45.8	)	2,298			2,120			(7.7	)
Income tax expense	94			54			67			103			62			92			72			(248		)	(340.8	)	(444.4	)	318			(22		)	(106.9	)
Net income (loss) from non-controlling interest	—			—			1			(1		)	—			2			(1		)	—			nm		nm		—			1			nm
Net income	405			418			581			576			368			619			563			593			3.0		5.3		1,980			2,143			8.2
Net income available to common shareholders	$	373		$	389		$	539		$	547		$	319		$	585		$	507		$	557		1.8		9.9		$	1,848		$	1,968		6.5
Diluted earnings per common share(4)	$	.89		$	.93		$	1.31		$	1.34		$	.79		$	1.47		$	1.29		$	1.43		6.7		10.9		$	4.47		$	4.97		11.2
Average diluted common shares outstanding (in thousands)	418,750			416,712			412,167			407,012			403,615			398,847			393,212			389,046			(4.4	)	(1.1	)	413,638			396,090			(4.2	)
Cash dividends declared per common share	$	.30		$	.34		$	.34		$	.34		$	.34		$	.34		$	.38		$	.38		11.8		—		$	1.32		$	1.44		9.1
Closing price per share of common stock (as of quarter end)	73.53			77.00			67.21			66.36			58.52			53.92			69.63			77.72			17.1		11.6		66.36			77.72			17.1
Ratios:
Return on average common equity	7.9		%	8.2		%	11.3		%	11.6		%	6.8		%	12.4		%	10.6		%	12.1		%	4.3		14.2		9.8		%	10.5		%	7.1
Pre-tax operating margin	19.2			18.1			24.8			26.8			17.3			27.6			24.3			13.6			(49.3	)	(44.0	)	22.2			20.8			(6.3	)
Common equity tier 1 risk-based capital(1)	12.0			12.0			12.0			12.5			12.3			12.0			12.3			11.7			(6.4	)	(4.9	)	12.5			11.7			(6.4	)
Tier 1 risk-based capital(1)	14.0			14.7			14.7			15.3			14.9			15.0			15.4			14.8			(3.3	)	(3.9	)	15.3			14.8			(3.3	)
Total risk-based capital(1)	16.1			16.8			16.8			17.4			17.1			17.1			17.6			16.0			(8.0	)	(9.1	)	17.4			16.0			(8.0	)
Tier 1 leverage(1)	5.8			6.0			6.3			6.9			6.9			7.0			6.8			6.5			(5.8	)	(4.4	)	6.9			6.5			(5.8	)
Tangible common equity(2)	6.0			6.5			6.6			6.8			6.7			6.7			6.5			6.4			(5.9	)	(1.5	)	6.8			6.4			(5.9	)
At quarter-end:
Assets under custody and administration (in trillions)(3)	$	28.49		$	28.65		$	27.27		$	27.51		$	26.94		$	27.79		$	29.18		$	28.77		4.6		(1.4	)	$	27.51		$	28.77		4.6
Asset under management (in trillions)	2.44			2.37			2.20			2.25			2.30			2.30			2.45			2.47			9.8		0.8		2.25			2.47			9.8
Total assets	279,448			294,544			247,235			245,155			243,685			255,386			256,140			242,698			(1.0	)	(5.2	)	245,155			242,698			(1.0	)
Investment securities	112,857			101,463			97,560			100,022			102,298			103,121			99,888			97,167			(2.9	)	(2.7	)	100,022			97,167			(2.9	)
Deposits	211,352			230,591			186,367			191,627			185,516			193,130			198,766			187,163			(2.3	)	(5.8	)	191,627			187,163			(2.3	)
Long-term debt	9,146			9,058			11,986			11,497			10,323			11,924			11,834			11,430			(0.6	)	(3.4	)	11,497			11,430			(0.6	)
Total shareholders' equity	20,670			21,347			21,343			21,103			21,496			22,073			22,150			21,219			0.5		(4.2	)	21,103			21,219			0.5
(1) In early 2014, we announced that we had completed our Basel III qualification period. As a result, our regulatory capital ratios for each period presented in the table above have been calculated under the advanced approaches provisions of the Basel III final rule. Refer to page 21 of this earnings release addendum for additional information about our regulatory capital ratios for each period.
(2) Tangible common equity ratio is a non-GAAP measure. Refer to accompanying reconciliations on page 22 for additional information.
(3) Included assets under custody of $21.98 trillion, $22.06 trillion, $20.95 trillion, $21.26 trillion, $20.79 trillion, $21.35 trillion, $21.91 trillion and $21.73 trillion as of March 31, 2015, June 30, 2015, September 30, 2015, December 31, 2015, March 31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016, respectively.
(4) Diluted earnings per common share for year to date December 31, 2016 does not equal the sum of the quarters.
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			3Q16			4Q16			4Q16 vs. 4Q15		4Q16 vs. 3Q16		2015			2016			2016 vs. 2015
Reported Results
Fee revenue:
Servicing fees	$	1,268		$	1,319		$	1,289		$	1,277		$	1,242		$	1,239		$	1,303		$	1,289		0.9	%	(1.1	)%	$	5,153		$	5,073		(1.6	)%
Management fees	301			304			287			282			270			293			368			361			28.0		(1.9	)	1,174			1,292			10.1
Trading services:
Direct sales and trading	135			88			108			79			90			87			94			115			45.6		22.3		410			386			(5.9	)
Indirect foreign exchange trading(1)	68			79			69			64			66			70			65			67			4.7		3.1		280			268			(4.3	)
Total foreign exchange trading	203			167			177			143			156			157			159			182			27.3		14.5		690			654			(5.2	)
Electronic foreign exchange services	48			44			46			37			44			43			41			41			10.8		—		175			169			(3.4	)
Other trading, transition management and brokerage	73			70			71			67			72			67			67			70			4.5		4.5		281			276			(1.8	)
Total brokerage and other trading services	121			114			117			104			116			110			108			111			6.7		2.8		456			445			(2.4	)
Total trading services	324			281			294			247			272			267			267			293			18.6		9.7		1,146			1,099			(4.1	)
Securities finance	101			155			113			127			134			156			136			136			7.1		—		496			562			13.3
Processing fees and other	61			17			120			111			52			98			5			(65		)	nm		nm		309			90			nm
Total fee revenue	2,055			2,076			2,103			2,044			1,970			2,053			2,079			2,014			(1.5	)	(3.1	)	8,278			8,116			(2.0	)
Net interest revenue:
Interest revenue	642			629			614			603			629			620			647			616			2.2		(4.8	)	2,488			2,512			1.0
Interest expense	96			94			101			109			117			99			110			102			(6.4	)	(7.3	)	400			428			7.0
Net interest revenue	546			535			513			494			512			521			537			514			4.0		(4.3	)	2,088			2,084			(0.2	)
Gains (losses) related to investment securities, net:
Net gains (losses) from sales of available-for-sale securities	—			(3		)	(2		)	—			2			(1		)	6			2							(5		)	9
Losses from other-than-temporary impairment	(1		)	—			—			—			—			—			(2		)	—							(1		)	(2		)
Gains (losses) related to investment securities, net	(1		)	(3		)	(2		)	—			2			(1		)	4			2							(6		)	7
Total revenue	2,600			2,608			2,614			2,538			2,484			2,573			2,620			2,530			(0.3	)	(3.4	)	10,360			10,207			(1.5	)
Provision for loan losses	4			2			5			1			4			4			—			2							12			10
Expenses:
Compensation and employee benefits	1,087			984			1,051			939			1,107			989			1,013			1,244			32.5		22.8		4,061			4,353			7.2
Information systems and communications	247			249			265			261			272			270			285			278			6.5		(2.5	)	1,022			1,105			8.1
Transaction processing services	197			201			201			194			200			201			200			199			2.6		(0.5	)	793			800			0.9
Occupancy	113			109			110			112			113			111			107			109			(2.7	)	1.9		444			440			(0.9	)
Acquisition and restructuring costs	6			3			10			6			104			20			42			43			616.7		2.4		25			209			736.0
Other	447			588			325			345			254			269			337			310			(10.1	)	(8.0	)	1,705			1,170			(31.4	)
Total expenses	2,097			2,134			1,962			1,857			2,050			1,860			1,984			2,183			17.6		10.0		8,050			8,077			0.3
Income before income tax expense	499			472			647			680			430			709			636			345			(49.3	)	(45.8	)	2,298			2,120			(7.7	)
Income tax expense	94			54			67			103			62			92			72			(248		)	(340.8	)	(444.4	)	318			(22		)	(106.9	)
Net income (loss) from non-controlling interest	—			—			1			(1		)	—			2			(1		)	—			nm		nm		—			1			nm
Net income	$	405		$	418		$	581		$	576		$	368		$	619		$	563		$	593		3.0		5.3		$	1,980		$	2,143		8.2
Effective tax rate	18.8		%	11.3		%	10.5		%	15.1		%	14.4		%	12.9		%	11.4		%	(72.3		)%					13.8		%	(1.1		)%

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			3Q16			4Q16			4Q16 vs. 4Q15		4Q16 vs. 3Q16		2015			2016			2016 vs. 2015
Adjustments to net income:
Dividends on preferred stock	$	(31	)	$	(29	)	$	(42	)	$	(28	)	$	(49	)	$	(33	)	$	(55	)	$	(36	)	28.6	%	(34.5	)%	$	(130	)	$	(173	)	33.1	%
Earnings allocated to participating securities	(1		)	—			—			(1		)	—			(1		)	(1		)	—			nm		nm		(2		)	(2		)	nm
Net income available to common shareholders	$	373		$	389		$	539		$	547		$	319		$	585		$	507		$	557		1.8		9.9		$	1,848		$	1,968		6.5
Earnings per common share(2):
Basic	$	.90		$	.95		$	1.33		$	1.36		$	.80		$	1.48		$	1.31		$	1.45		6.6		10.7		$	4.53		$	5.03		11.0
Diluted	.89			.93			1.31			1.34			.79			1.47			1.29			1.43			6.7		10.9		4.47			4.97			11.2
Average common shares outstanding:
Basic	412,225			410,674			406,612			402,041			399,421			394,160			388,358			384,115			(4.5	)	(1.1	)	407,856			391,485			(4.0	)
Diluted	418,750			416,712			412,167			407,012			403,615			398,847			393,212			389,046			(4.4	)	(1.1	)	413,638			396,090			(4.2	)
Cash dividends declared per common share	$	.30		$	.34		$	.34		$	.34		$	.34		$	.34		$	.38		$	.38		11.8		—		$	1.32		$	1.44		9.1
Closing price per share of common stock (as of quarter end)	73.53			77.00			67.21			66.36			58.52			53.92			69.63			77.72			17.1		11.6		66.36			77.72			17.1
Financial ratios:
Return on average common equity	7.9		%	8.2		%	11.3		%	11.6		%	6.8		%	12.4		%	10.6		%	12.1		%	4.3		14.2		9.8		%	10.5		%	7.1
Pre-tax operating margin	19.2			18.1			24.8			26.8			17.3			27.6			24.3			13.6			(49.3	)	(44.0	)	22.2			20.8			(6.3	)
After-tax margin	15.6			16.0			22.2			22.7			12.8			22.7			19.4			22.0			(3.1	)	13.4		19.1			19.3			1.0
Common dividend payout ratio	33.1			35.6			25.5			24.9			42.5			22.7			28.9			26.1			4.8		(9.7	)	29.0			28.5			(1.7	)
(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.
(2)Basic and diluted earnings per common share for year to date December 31, 2016 does not equal the sum of the quarters.
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			3Q16			4Q16			4Q16 vs. 4Q15		4Q16 vs. 3Q16
Assets:
Cash and due from banks	$	3,149		$	3,084		$	3,660		$	1,207		$	3,735		$	4,673		$	3,490		$	1,314		8.9	%	(62.3	)%
Interest-bearing deposits with banks	83,398			116,728			68,361			75,338			65,032			75,169			79,090			70,935			(5.8	)	(10.3	)
Securities purchased under resale agreements	11,331			4,447			9,155			3,404			3,722			2,010			2,442			1,956			(42.5	)	(19.9	)
Trading account assets	1,145			1,373			1,223			849			873			890			1,063			1,024			20.6		(3.7	)
Investment securities:
Investment securities available for sale	96,612			85,308			80,097			70,070			71,086			72,735			71,520			61,998			(11.5	)	(13.3	)
Investment securities held to maturity(1)	16,245			16,155			17,463			29,952			31,212			30,386			28,368			35,169			17.4		24.0
Total investment securities	112,857			101,463			97,560			100,022			102,298			103,121			99,888			97,167			(2.9	)	(2.7	)
Loans and leases, net(2)	18,278			18,547			19,019			18,753			19,140			19,788			21,451			19,704			5.1		(8.1	)
Premises and equipment, net(3)	1,933			2,035			1,984			1,894			1,949			1,994			2,042			2,062			8.9		1.0
Accrued interest and fees receivable	2,281			2,385			2,271			2,346			2,371			2,399			2,594			2,644			12.7		1.9
Goodwill	5,663			5,729			5,716			5,671			5,733			5,671			5,911			5,814			2.5		(1.6	)
Other intangible assets	1,892			1,871			1,820			1,768			1,749			1,682			1,849			1,750			(1.0	)	(5.4	)
Other assets	37,521			36,882			36,466			33,903			37,083			37,989			36,320			38,328			13.1		5.5
Total assets	$	279,448		$	294,544		$	247,235		$	245,155		$	243,685		$	255,386		$	256,140		$	242,698		(1.0	)	(5.2	)
Liabilities:
Deposits:
Non-interest-bearing	$	72,704		$	83,120		$	58,426		$	65,800		$	54,248		$	57,268		$	60,545		$	59,397		(9.7	)	(1.9	)
Interest-bearing -- U.S.	30,769			32,839			30,407			29,958			31,159			33,060			33,767			30,911			3.2		(8.5	)
Interest-bearing -- Non-U.S.	107,879			114,632			97,534			95,869			100,109			102,802			104,454			96,855			1.0		(7.3	)
Total deposits	211,352			230,591			186,367			191,627			185,516			193,130			198,766			187,163			(2.3	)	(5.8	)
Securities sold under repurchase agreements	10,158			10,978			7,760			4,499			4,224			4,350			4,364			4,400			(2.2	)	0.8
Federal funds purchased	17			15			25			6			23			29			28			—			(100.0	)	(100.0	)
Other short-term borrowings	4,346			4,756			3,761			1,748			1,683			1,683			1,385			1,585			(9.3	)	14.4
Accrued expenses and other liabilities	23,759			17,799			15,961			14,643			20,388			22,166			17,582			16,901			15.4		(3.9	)
Long-term debt	9,146			9,058			11,986			11,497			10,323			11,924			11,834			11,430			(0.6	)	(3.4	)
Total liabilities	258,778			273,197			225,860			224,020			222,157			233,282			233,959			221,479			(1.1	)	(5.3	)
Shareholders' equity:
Preferred stock, no par, 3,500,000 shares authorized:
Series C, 5,000 shares issued and outstanding	491			491			491			491			491			491			491			491			—		—
Series D, 7,500 shares issued and outstanding	742			742			742			742			742			742			742			742			—		—
Series E, 7,500 shares issued and outstanding	728			728			728			728			728			728			728			728			—		—
Series F, 7,500 shares issued and outstanding	—			742			742			742			742			742			742			742			—		—
Series G, 5,000 shares issued and outstanding	—			—			—			—			—			493			493			493			nm		—
Common stock, $1 par, 750,000,000 shares authorized(4)	504			504			504			504			504			504			504			504			—		—
Surplus	9,744			9,744			9,742			9,746			9,739			9,767			9,778			9,782			0.4		—
Retained earnings	14,986			15,237			15,638			16,049			16,233			16,686			17,047			17,459			8.8		2.4
Accumulated other comprehensive income (loss)	(1,006		)	(1,011		)	(1,101		)	(1,442		)	(964		)	(997		)	(993		)	(2,040		)	41.5		105.4
Treasury stock, at cost(5)	(5,519		)	(5,830		)	(6,143		)	(6,457		)	(6,719		)	(7,083		)	(7,382		)	(7,682		)	19.0		4.1
Total shareholders' equity	20,670			21,347			21,343			21,103			21,496			22,073			22,150			21,219			0.5		(4.2	)
Non-controlling interest-equity	—			—			32			32			32			31			31			—
Total equity	20,670			21,347			21,375			21,135			21,528			22,104			22,181			21,219			0.4		(4.3	)
Total liabilities and equity	$	279,448		$	294,544		$	247,235		$	245,155		$	243,685		$	255,386		$	256,140		$	242,698		(1.0	)	(5.2	)
nm Not meaningful
	1Q15			2Q15			3Q15			4Q15			1Q16			2Q16			3Q16			4Q16
(1) Fair value of investment securities held to maturity	$	16,417		$	16,198		$	17,536		$	29,798		$	31,555		$	30,895		$	28,780		$	34,994
(2) Allowance for loan losses	41			43			48			46			47			51			51			53
(3) Accumulated depreciation for premises and equipment	4,653			4,780			4,768			4,820			4,929			3,164			3,271			3,333
(4) Common stock shares issued	503,879,642			503,879,642			503,879,642			503,879,642			503,879,642			503,879,642			503,879,642			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			118,309,341			121,940,502

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		3Q16		4Q16		4Q16 vs. 4Q15		4Q16 vs. 3Q16
Investment securities and short-duration instruments	80.4	%	81.8	%	81.2	%	79.9	%	78.5	%	78.4	%	78.7	%	78.2	%	(2.1	)%	(0.6	)%
Loans and leases	7.0		6.6		7.0		8.2		8.3		8.1		8.0		8.6		4.9		7.5
Non-interest-earning assets	12.6		11.6		11.8		11.9		13.2		13.5		13.3		13.2		10.9		(0.8	)
Total	100.0	%	100.0	%	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	%	60.3	%	58.8	%	(2.6	)	(2.5	)
Client funds not bearing interest	21.2		21.3		20.4		19.4		20.1		18.3		19.1		20.5		5.7		7.3
Other non-interest-bearing liabilities	6.9		5.6		5.1		5.6		6.3		7.0		6.0		6.4		14.3		6.7
Long-term debt and common shareholders' equity	11.2		10.7		11.8		13.4		13.4		13.1		13.2		12.9		(3.7	)	(2.3	)
Preferred shareholders' equity	0.8		0.9		1.1		1.2		1.2		1.4		1.4		1.4		16.7		—
Total	100.0	%	100.0	%	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		3Q16		4Q16		4Q16 vs. 4Q15		4Q16 vs. 3Q16
Fixed	$	1,293	$	1,748	$	2,231	$	2,151	$	2,045	$	2,023	$	1,904	$	1,702	(20.9	)%	(10.6	)%
Floating	40,306		36,931		29,973		26,891		24,795		24,313		22,988		22,470		(16.4	)	(2.3	)
Total	$	41,599	$	38,679	$	32,204	$	29,042	$	26,840	$	26,336	$	24,892	$	24,172	(16.8	)	(2.9	)

(Dollars in millions)	Quarters																							% Change
Investment Securities - Appreciation (Depreciation)	1Q15			2Q15			3Q15			4Q15			1Q16			2Q16			3Q16		4Q16			4Q16 vs. 4Q15		4Q16 vs. 3Q16
Held to maturity:
Amortized cost (book value)	$	16,245		$	16,155		$	17,463		$	29,952		$	31,212		$	30,386		$	28,368	$	35,169		17.4	%	24.0	%
Fair value	16,417			16,198			17,536			29,798			31,555			30,895			28,780		34,994			17.4		21.6
Appreciation (depreciation)	172			43			73			(154		)	343			509			412		(175		)	13.6		(142.5	)
Available for sale:
Amortized cost	95,524			84,689			79,415			69,843			70,366			71,720			70,795		61,912			(11.4	)	(12.5	)
Fair value (book value)	96,612			85,308			80,097			70,070			71,086			72,735			71,520		61,998			(11.5	)	(13.3	)
Appreciation (depreciation)	1,088			619			682			227			720			1,015			725		86			(62.1	)	(88.1	)
Pre-tax appreciation (depreciation) related to securities available for sale transferred to held to maturity	(95		)	(86		)	(70		)	23			(193		)	(197		)	35		(194		)	(943.5	)	(654.3	)
Total pre-tax appreciation (depreciation) related to investment securities portfolio	1,165			576			685			96			870			1,327			1,172		(283		)	(394.8	)	(124.1	)
Total after-tax appreciation (depreciation) related to investment securities portfolio	699			346			411			58			522			796			703		(170		)	(393.1	)	(124.2	)

(Dollars in billions)	Quarters																% Change
Securities on Loan	1Q15		2Q15		3Q15		4Q15		1Q16		2Q16		3Q16		4Q16		4Q16 vs. 4Q15		4Q16 vs. 3Q16
Average securities on loan	$	350	$	356	$	331	$	341	$	334	$	348	$	347	$	353	3.5	%	1.7	%
End-of-period securities on loan	350		333		332		323		341		348		348		364		12.7		4.6

5

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ASSETS UNDER CUSTODY AND ADMINISTRATION
	Quarters																% Change
(Dollars in billions)	1Q15		2Q15		3Q15		4Q15		1Q16		2Q16		3Q16		4Q16		4Q16 vs. 4Q15		4Q16 vs. 3Q16
Assets Under Custody and Administration
By Product Classification:
Mutual funds	$	7,073	$	7,107	$	6,698	$	6,768	$	6,728	$	6,734	$	6,906	$	6,841	1.1	%	(0.9	)%
Collective funds	7,113		7,189		6,883		7,088		7,000		7,234		7,541		7,501		5.8		(0.5	)
Pension products	5,745		5,830		5,497		5,510		5,197		5,496		5,671		5,584		1.3		(1.5	)
Insurance and other products	8,560		8,524		8,187		8,142		8,018		8,322		9,060		8,845		8.6		(2.4	)
Total Assets Under Custody and Administration	$	28,491	$	28,650	$	27,265	$	27,508	$	26,943	$	27,786	$	29,178	$	28,771	4.6		(1.4	)
By Financial Instrument:
Equities	$	15,660	$	16,006	$	14,223	$	14,888	$	14,433	$	14,960	$	16,012	$	15,833	6.3		(1.1	)
Fixed-income	9,157		8,939		9,470		9,264		9,199		9,530		9,891		9,665		4.3		(2.3	)
Short-term and other investments	3,674		3,705		3,572		3,356		3,311		3,296		3,275		3,273		(2.5	)	(0.1	)
Total Assets Under Custody and Administration	$	28,491	$	28,650	$	27,265	$	27,508	$	26,943	$	27,786	$	29,178	$	28,771	4.6		(1.4	)
By Geographic Location(1):
North America	$	21,554	$	21,667	$	20,536	$	20,842	$	20,505	$	21,072	$	21,561	$	21,544	3.4		(0.1	)
Europe/Middle East/Africa	5,590		5,621		5,452		5,387		5,159		5,356		6,107		5,734		6.4		(6.1	)
Asia/Pacific	1,347		1,362		1,277		1,279		1,279		1,358		1,510		1,493		16.7		(1.1	)
Total Assets Under Custody and Administration	$	28,491	$	28,650	$	27,265	$	27,508	$	26,943	$	27,786	$	29,178	$	28,771	4.6		(1.4	)
Assets Under Custody(2)
By Product Classification:
Mutual funds	$	6,786	$	6,744	$	6,369	$	6,413	$	6,363	$	6,361	$	6,461	$	6,395	(0.3	)	(1.0	)
Collective funds	5,626		5,674		5,412		5,642		5,589		5,788		6,080		6,100		8.1		0.3
Pension products	5,160		5,243		4,921		4,944		4,673		4,947		5,107		5,039		1.9		(1.3	)
Insurance and other products	4,406		4,403		4,245		4,259		4,163		4,258		4,262		4,191		(1.6	)	(1.7	)
Total Assets Under Custody	$	21,978	$	22,064	$	20,947	$	21,258	$	20,788	$	21,354	$	21,910	$	21,725	2.2		(0.8	)
By Geographic Location(1):
North America	$	17,221	$	17,255	$	16,379	$	16,664	$	16,420	$	16,756	$	17,074	$	17,083	2.5		0.1
Europe/Middle East/Africa	3,732		3,779		3,615		3,635		3,422		3,584		3,698		3,508		(3.5	)	(5.1	)
Asia/Pacific	1,025		1,030		953		959		946		1,014		1,138		1,134		18.2		(0.4	)
Total Assets Under Custody	$	21,978	$	22,064	$	20,947	$	21,258	$	20,788	$	21,354	$	21,910	$	21,725	2.2		(0.8	)
(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		3Q16		4Q16		4Q16 vs. 4Q15		4Q16 vs. 3Q16
Assets Under Management
By Asset Class and Investment Approach:
Equity:
Active	$	38	$	36	$	29	$	32	$	32	$	32	$	70	$	73	128.1	%	4.3	%
Passive	1,434		1,386		1,237		1,294		1,295		1,275		1,340		1,401		8.3		4.6
Total Equity	1,472		1,422		1,266		1,326		1,327		1,307		1,410		1,474		11.2		4.5
Fixed-Income:
Active	17		17		16		18		17		17		73		70		288.9		(4.1	)
Passive	306		303		300		294		310		318		318		308		4.8		(3.1	)
Total Fixed-Income	323		320		316		312		327		335		391		378		21.2		(3.3	)
Cash(1)	393		376		380		368		381		380		351		333		(9.5	)	(5.1	)
Multi-Asset-Class Solutions:
Active	31		29		26		17		17		17		19		19		11.8		—
Passive	84		89		85		86		92		100		106		107		24.4		0.9
Total Multi-Asset-Class Solutions	115		118		111		103		109		117		125		126		22.3		0.8
Alternative Investments(2):
Active	17		18		17		17		18		18		29		28		64.7		(3.4	)
Passive	123		120		113		119		134		144		140		129		8.4		(7.9	)
Total Alternative Investments	140		138		130		136		152		162		169		157		15.4		(7.1	)
Total Assets Under Management	$	2,443	$	2,374	$	2,203	$	2,245	$	2,296	$	2,301	$	2,446	$	2,468	9.9		0.9
By Geographic Location(3):
North America	$	1,549	$	1,486	$	1,409	$	1,452	$	1,491	$	1,501	$	1,641	$	1,691	16.5		3.0
Europe/Middle East/Africa	566		563		500		489		496		492		495		482		(1.4	)	(2.6	)
Asia/Pacific	328		325		294		304		309		308		310		295		(3.0	)	(4.8	)
Total Assets Under Management	$	2,443	$	2,374	$	2,203	$	2,245	$	2,296	$	2,301	$	2,446	$	2,468	9.9		0.9
(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 Funds(1)
By Asset Class:
Alternative investments	$	40	$	37	$	35	$	34	$	45	$	54	$	54	$	42	23.5	%	(22.2	)%
Cash	1		2		3		3		3		2		2		2		(33.3	)	—
Equity	356		342		323		350		349		348		370		426		21.7		15.1
Fixed-income	43		41		39		41		46		48		52		51		24.4		(1.9	)
Total Exchange-Traded Funds	$	440	$	422	$	400	$	428	$	443	$	452	$	478	$	521	21.7		9.0
(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 After-tax MTM Gain/(Loss) (in millions)(1)
12/31/2016	$	45.5		$	30.5		$	12.8		$	4.5		$	2.8		$	1.2		$	—		$	97.3		$	(170	)
	47		%	31		%	13		%	5		%	3		%	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 December 31, 2016 the after tax unrealized MTM gain/(loss) includes after-tax unrealized loss on securities available for sale of $(35) million, after-tax unrealized loss on securities held to maturity of $(105) million and after-tax unrealized loss primarily related to securities previously transferred from available for sale to held to maturity of $(30) million.

8

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO HOLDINGS BY ASSET CLASS
	Ratings
December 31, 2016	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	78	%	11	%	6	%	5	%	—	%	—	%	—	%	$	27.8	28.6	%	$	16		98% / 2%
Asset-backed securities	—		70		17		3		6		4		—		22.8		23.4		(47		)	7% / 93%
Student loans	—		41		33		4		16		6		—		8.6		37.7		(74		)
Credit cards	—		100		—		—		—		—		—		2.8		12.3		(14		)
Auto & equipment	—		92		8		—		—		—		—		2.1		9.2		1
Non-US residential mortgage backed securities	—		86		8		3		1		2		—		7.7		33.8		43
Collateralized loan obligation	—		99		1		—		—		—		—		1.0		4.4		7
Sub-prime	—		9		15		21		2		53		—		0.3		1.3		(10		)
Other	—		23		77		—		—		—		—		0.3		1.3		—
Mortgage-backed securities	95		4		—		—		—		1		—		24.0		24.7		(185		)	92% / 8%
Agency MBS	100		—		—		—		—		—		—		22.6		94.2		(191		)
Non-Agency MBS	—		72		2		1		5		20		—		1.4		5.8		6
CMBS	29		68		2		—		—		1		—		3.8		3.9		(18		)	72% / 28%
Corporate bonds	—		—		16		48		35		1		—		3.5		3.6		(5		)	91% / 9%
Covered bonds	—		100		—		—		—		—		—		3.8		3.9		13			14% / 86%
Municipal bonds	—		33		62		5		—		—		—		8.3		8.5		53			99% / 1%
Clipper tax-exempt bonds/other	—		45		41		12		1		—		1		3.3		3.4		3			24% / 76%
Total Portfolio	47	%	31	%	13	%	5	%	3	%	1	%	—	%	$	97.3	100.0	%	$	(170	)	68% / 32%
(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 December 31, 2016 the after-tax unrealized MTM gain/(loss) includes after-tax unrealized loss on securities available for sale of $(35) million, after-tax unrealized loss on securities held to maturity of $(105) million and after-tax unrealized loss primarily related to securities previously transferred from available for sale to held to maturity of $(30) million.

9

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO NON-U.S. INVESTMENTS
				Book Value (In billions)
December 31, 2016	Book Value (In billions)		Average Rating	Gov't/Agency(1)		ABS FRMBS		ABS All Other		Corporate Bonds		Covered Bonds		Other
United Kingdom	$	5.6	AAA	$	—	$	3.6	$	1.1	$	0.2	$	0.7	$	—
Australia	4.7		AAA	0.8		1.7		0.3		0.3		0.7		0.9
Canada	3.0		AAA	1.9		—		—		0.1		1.0		—
Netherlands	1.8		AAA	—		1.5		0.1		0.1		0.1		—
Japan	1.3		A	1.3		—		—		—		—		—
Germany	1.0		AAA	0.1		—		0.9		—		—		—
France	1.0		AA	0.2		—		0.2		0.2		0.4		—
Italy	0.7		AA	0.1		0.4		0.2		—		—		—
Korea	0.6		AA	0.6		—		—		—		—		—
Norway	0.5		AAA	—		—		—		—		0.5		—
Spain	0.4		A	—		0.2		0.2		—		—		—
Finland	0.2		AAA	—		—		—		—		0.2		—
Ireland	0.1		AAA	—		0.1		—		—		—		—
Other	1.6		AA	1.0		0.1		—		0.2		0.3		—
Total Non-U.S. Investments(2)	$	22.5		$	6.0	$	7.6	$	3.0	$	1.1	$	3.9	$	0.9
U.S. Investments	74.8
Total Portfolio	$	97.3
(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 $18.3 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, 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, where notable, presents operating-basis financial information which also excludes the estimated results of operations of the GE Asset Management business (acquired on July 1, 2016) and other metrics (e.g. the fourth quarter 2016 acceleration of compensation expense or the effects of changes in foreign expense rates), as this presentation aids the comparability of financial results to prior periods that did not include those events. 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			3Q16		4Q16			4Q16 vs. 4Q15		4Q16 vs. 3Q16		2015			2016			2016 vs. 2015
Total Revenue:
Total revenue, GAAP-basis		$2,600		$2,608		$2,614			$2,538			$2,484		$2,573			$	2,620	$	2,530		(0.3	)%	(3.4	)%	$	10,360		$	10,207		(1.5	)%
	Adjustment to processing fees and other revenue (see below)	53		98		12			31			63		34			134		186							194			417
	Adjustment to net interest revenue (see below)	19		21		16			19			27		25			—		33							75			85
	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			$	2,754	$	2,749		6.2		(0.2	)	$	10,629		$	10,752		1.2
Fee Revenue:
Total fee revenue, GAAP-basis		$2,055		$2,076		$2,103			$2,044			$1,970		$2,053			$	2,079	$	2,014		(1.5	)	(3.1	)	$	8,278		$	8,116		(2.0	)
	Tax-equivalent adjustment associated with tax-advantaged investments	53		98		95			113			63		87			134		186							359			470
	Gain on sale of CRE and CRE loan extinguishment / paydown	—		—		(83		)	(82		)	—		—			—		—							(165		)	—
	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			$	2,213	$	2,200		6.0		(0.6	)	$	8,472		$	8,576		1.2
Servicing Fees:
Total servicing fees, GAAP-basis		$1,268		$1,319		$1,289			$1,277			$1,242		$1,239			$	1,303	$	1,289		0.9		(1.1	)	$	5,153		$	5,073		(1.6	)
	Expense billing matter	—		—		—			—			—		48			—		—							—			48
Total servicing fees, operating-basis		$1,268		$1,319		$1,289			$1,277			$1,242		$1,287			$	1,303	$	1,289		0.9		(1.1	)	$	5,153		$	5,121		(0.6	)
Management Fees:
Total management fees, GAAP-basis		$	301	$	304	$	287		$	282		$	270	$	293		$	368	$	361		28.0		(1.9	)	$	1,174		$	1,292		10.1
	Expense billing matter	—		—		—			—			—		(5		)	—		—							—			(5		)
Total management fees, operating-basis		$	301	$	304	$	287		$	282		$	270	$	288		$	368	$	361		28.0		(1.9	)	$	1,174		$	1,287		9.6
Processing Fees and Other Revenue:
Total processing fees and other revenue, GAAP-basis		$	61	$	17	$	120		$	111		$	52	$	98		$	5	$	(65	)	(158.6	)	(1,400.0	)	$	309		$	90		(70.9	)
	Tax-equivalent adjustment associated with tax-advantaged investments	53		98		95			113			63		87			134		186							359			470
	Gain on sale of CRE and CRE loan extinguishment / paydown	—		—		(83		)	(82		)	—		—			—		—							(165		)	—
	Gain on sale of WM/Reuters Business	—		—		—			—			—		(53		)	—		—							—			(53		)
Total processing fees and other revenue, operating-basis		$	114	$	115	$	132		$	142		$	115	$	132		$	139	$	121		(14.8	)	(12.9	)	$	503		$	507		0.8

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			3Q16			4Q16			4Q16 vs. 4Q15			4Q16 vs. 3Q16			2015			2016			2016 vs. 2015
Net Interest Revenue & Net Interest Margin:
Net interest revenue, GAAP-basis		$	546		$	535		$	513		$	494		$	512		$	521		$	537		$	514		4.0	%		(4.3	)%		$	2,088		$	2,084		(0.2	)%
	Tax-equivalent adjustment associated with tax-exempt investment securities	44			44			43			42			42			40			42			43									173			167
Net interest revenue, fully taxable-equivalent basis(1)		$	590		$	579		$	556		$	536		$	554		$	561		$	579		557									$	2,261		$	2,251
	Average interest earning assets(1)	226,359			233,411			221,424			200,899			194,081			198,243			202,155			202,194									220,456			199,184
Net interest margin, fully taxable-equivalent basis(1)		1.06		%	1.00		%	1.00		%	1.06		%	1.15		%	1.14		%	1.14		%	1.09		%	3		bps	(5	)	bps	1.03		%	1.13		%	10		bps
Net interest revenue, fully taxable-equivalent basis(1)		$	590		$	579		$	556		$	536		$	554		$	561		579			557									$	2,261		$	2,251
	Discount accretion associated with former conduit securities	(25		)	(23		)	(27		)	(23		)	(15		)	(15		)	(42		)	(10		)							(98		)	(82		)
Net interest revenue, operating-basis(1)		$	565		$	556		$	529		$	513		$	539		$	546		$	537		$	547		6.6	%		1.9	%		$	2,163		$	2,169		0.3	%
	Average interest earning assets(1)	226,359			233,411			221,424			200,899			194,081			198,243			202,155			202,194									220,456			199,184
Net interest margin, operating-basis(1)		1.01		%	0.96		%	0.95		%	1.01		%	1.12		%	1.11		%	1.06		%	1.08		%	7		bps	2		bps	0.98		%	1.09		%	11		bps
	Effect of discount accretion	0.05		%	0.04		%	0.05		%	0.05		%	0.03		%	0.03		%	0.08		%	0.01		%							0.05		%	0.04		%
Expenses:
Total expenses, GAAP-basis		$2,097			$2,134			$1,962			$1,857			$2,050			$1,860			$	1,984		$	2,183		17.6	%		10.0	%		$	8,050		$	8,077		0.3	%
	Severance costs associated with staffing realignment	1			—			(75		)	1			(3		)	3			9			2									(73		)	11
	Provisions for legal contingencies	(150		)	(250		)	—			(15		)	—			—			(42		)	1									(415		)	(41		)
	Expense billing matter, net	—			—			—			(17		)	—			(15		)	—			—									(17		)	(15		)
	Acquisition costs	(5		)	(3		)	(7		)	(5		)	(7		)	(7		)	(33		)	(22		)							(20		)	(69		)
	Restructuring charges, net	(1		)	—			(3		)	(1		)	(97		)	(13		)	(9		)	(21		)							(5		)	(140		)
Total expenses, operating-basis		$1,942			$1,881			$1,877			$1,820			$1,943			$1,828			$	1,909		$	2,143		17.7			12.3			$	7,520		$	7,823		4.0
Compensation and Employee Benefits Expenses:
Total compensation and employee benefits expenses, GAAP-basis		$1,087			$	984		$	1,051		$	939		$	1,107		$	989		$	1,013		$	1,244		32.5			22.8			$	4,061		$	4,353		7.2
	Severance costs associated with staffing realignment	1			—			(75		)	1			(3		)	3			9			2									(73		)	11
Total compensation and employee benefits expenses, operating-basis(2)		$1,088			$	984		$	976		$	940		$	1,104		$	992		$	1,022		$	1,246		32.6			21.9			$	3,988		$	4,364		9.4
Other Expenses:
Total other expenses, GAAP-basis		$	447		$	588		$	325		$	345		$	254		$	269		$	337		$	310		(10.1	)		(8.0	)		$	1,705		$	1,170		(31.4	)
	Provisions for legal contingencies	(150		)	(250		)	—			(15		)	—			—			(42		)	1									(415		)	(41		)
	Expense billing matter, net	—			—			—			(17		)	—			(15		)	—			—									(17		)	(15		)
Total other expenses, operating-basis		$	297		$	338		$	325		$	313		$	254		$	254		$	295		$	311		(0.6	)		5.4			$	1,273		$	1,114		(12.5	)
Income Before Income Tax Expense:
Income before income tax expense, GAAP-basis		$	499		$	472		$	647		$	680		$	430		$	709		$	636		$	345		(49.3	)		(45.8	)		$	2,298		$	2,120		(7.7	)
	Net pre-tax effect of non-operating adjustments to revenue and expenses	227			372			113			87			197			134			209			259									799			799
Income before income tax expense, operating-basis		$	726		$	844		$	760		$	767		$	627		$	843		$	845		$	604		(21.3	)		(28.5	)		$	3,097		$	2,919		(5.7	)

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			3Q16			4Q16			4Q16 vs. 4Q15			4Q16 vs. 3Q16			2015			2016			2016 vs. 2015
Pre-tax operating margin:
Pre-tax operating margin, GAAP-basis		19.2		%	18.1		%	24.8		%	26.8		%	17.3		%	27.6		%	24.3		%	13.6		%	(1,320	)	bps	(1,070	)	bps	22.2		%	20.8		%	(140	)	bps
	Net effect of non-operating adjustments	8.0			12.8			4.0			2.8			7.1			3.9			6.4			8.4									6.9			6.3
Pre-tax operating margin, operating-basis(3)		27.2		%	30.9		%	28.8		%	29.6		%	24.4		%	31.5		%	30.7		%	22.0		%	(760	)	bps	(870	)	bps	29.1		%	27.1		%	(200	)	bps
Income Tax Expense:
Income tax expense, GAAP-basis		$	94		$	54		$	67		$	103		$	62		$	92		$	72		$	(248	)	(340.8	)%		(444.4	)%		$	318		$	(22	)	(106.9	)%
	Aggregate tax-equivalent adjustments	97			142			138			155			105			127			176			229									532			637
	Italian deferred tax liability	—			—			25			(33		)	—			—			—			—									(8		)	—
	Net tax effect of non-operating adjustments	16			54			13			18			15			10			8			10									101			43
Income tax expense, operating-basis		$	207		$	250		$	243		$	243		$	182		$	229		$	256		$	(9	)	(103.7	)		(103.5	)		$	943		$	658		(30.2	)
Effective Tax Rate:
Income before income tax expense, operating-basis		$	726		$	844		$	760		$	767		$	627		$	843		$	845		$	604		(21.3)			(28.5)			$	3,097		$	2,919		(5.7)
Income tax expense, operating-basis		207			250			243			243			182			229			256			(9		)							943			658
Effective tax rate, operating-basis(4)		28.4		%	29.6		%	32.0		%	31.8		%	29.1		%	27.0		%	30.3		%	(1.5		)%	(3,330.0)		bps	(3,180.0)		bps	30.4		%	22.5		%	(790.0)		bps
Net Income Available to Common Shareholders:
Net income available to common shareholders, GAAP-basis		$	373		$	389		$	539		$	547		$	319		$	585		$	507		$	557		1.8	%		9.9	%		$	1,848		$	1,968		6.5	%
	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		)	25			20									174			119
Net income available to common shareholders, operating-basis		$	487		$	565		$	476		$	494		$	396		$	582		$	532		$	577		16.8			8.5			$	2,022		$	2,087		3.2
Diluted Earnings per Common Share(5):
Diluted earnings per common share, GAAP-basis		$	.89		$	.93		$	1.31		$	1.34		$	.79		$	1.47		$	1.29		$	1.43		6.7			10.9			$	4.47		$	4.97		11.2
	Severance costs associated with staffing realignment	—			—			.11			—			.01			(.01		)	(.01		)	—									.11			(.02		)
	Provisions for legal contingencies	.36			.37			—			.02			—			—			.11			.02									.76			.13
	Expense billing matter, net	—			—			—			.03			—			.10			—			—									.03			.10
	Acquisition costs	.01			—			.01			.01			.01			.01			.05			.03									.03			.11
	Restructuring charges, net	—			—			—			—			.15			.02			.01			.02									.01			.21
	Effect on income tax of non-operating adjustments	(.06		)	.08			.02			(.04		)	.04			(.01		)	(.03		)	(.01		)							—			—
	Discount accretion associated with former conduit securities	(.04		)	(.02		)	(.04		)	(.03		)	(.02		)	(.02		)	(.07		)	(.01		)							(.14		)	(.13		)
	Gain on sale of CRE and CRE loan extinguishment / paydown	—			—			(.12		)	(.12		)	—			—			—			—									(.24		)	—
	Italian deferred tax liability	—			—			(.14		)	—			—			—			—			—									(.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		$	1.35		$	1.48		22.3			9.6			$	4.89		$	5.27		7.8

13

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		3Q16			4Q16			4Q16 vs. 4Q15		4Q16 vs. 3Q16		2015			2016			2016 vs. 2015
Return on Average Common Equity:
Return on average common equity, GAAP-basis		7.9	%	8.2	%	11.3	%	11.6	%	6.8	%	12.4	%	10.6		%	12.1		%	50	bps	150	bps	9.8		%	10.5		%	70	bps
	Severance costs associated with staffing realignment	—		—		1.0		—		—		(.1	)	(.1		)	—							.2			—
	Provisions for legal contingencies	3.2		3.3		—		.2		—		—		.9			.2							1.6			.3
	Expense billing matter, net	—		—		—		.3		—		.8		—			—							.1			.2
	Acquisition costs	.1		—		.1		.1		.1		.1		.3			.3							.1			.2
	Restructuring charges, net	—		—		—		—		1.3		.2		.1			.1							—			.4
	Effect on income tax of non-operating adjustments	(.5	)	.7		.1		(.3	)	.4		(.1	)	(.2		)	(.1		)					—			—
	Discount accretion associated with former conduit securities	(.3	)	(.3	)	(.3	)	(.3	)	(.2	)	(.2	)	(.5		)	(.1		)					(.3		)	(.3		)
	Gain on sale of CRE and CRE loan extinguishment / paydown	—		—		(1.0	)	(1.1	)	—		—		—			—							(.5		)	—
	Italian deferred tax liability	—		—		(1.2	)	—		—		—		—			—							(.3		)	—
	Gain on sale of WM/Reuters Business	—		—		—		—		—		(0.8	)	—			—							—			(.2		)
Return on average common equity, operating-basis(6)		10.4	%	11.9	%	10.0	%	10.5	%	8.4	%	12.3	%	11.1		%	12.5		%	200	bps	140	bps	10.7		%	11.1		%	40	bps
Fee Operating Leverage:
Total fee revenue, operating-basis (as reconciled above)		$2,108		$2,174		$2,115		$2,075		$2,033		$2,130		$	2,213		$	2,200		6.02%				$	8,472		$	8,576		1.23%
Total expenses, operating-basis (as reconciled above)		1,942		1,881		1,877		1,820		1,943		1,828		1,909			2,143			17.75				7,520			7,823			4.03
Fee operating leverage																				(1,173)	bps									(280)	bps
Operating Leverage:
Total revenue, operating-basis (as reconciled above)		$2,672		$2,727		$2,642		$2,588		$2,574		$2,675		$	2,754		$	2,749		6.22%				$	10,629		$	10,752		1.16%
Total expenses, operating-basis (as reconciled above)		1,942		1,881		1,877		1,820		1,943		1,828		1,909			2,143			17.75				7,520			7,823			4.03
Operating leverage																				(1,153)	bps									(287)	bps
Fee Operating Leverage excluding acquired operations and accelerated compensation expense:
Total fee revenue, operating-basis (as reconciled above)		$2,108		$2,174		$2,115		$2,075		$2,033		$2,130		$	2,213		$	2,200						$	8,472		$	8,576
	Impact of acquired operations	—		—		—		—		—		—		(65		)	(64		)					—			(129		)
Total fee revenue, operating-basis excluding acquired operations		$2,108		$2,174		$2,115		$2,075		$2,033		$2,130		$	2,148		$	2,136		2.94%				$	8,472		$	8,447		(0.30)%
Total expenses, operating-basis (as reconciled above)		$1,942		$1,881		$1,877		$1,820		$1,943		$1,828		$	1,909		$	2,143						$	7,520		$	7,823
	Impact of accelerated compensation expense	—		—		—		—		—		—		—			(249		)					—			(249		)
	Impact of acquired operations	—		—		—		—		—		—		(57		)	(58		)					—			(115		)
Total expenses, operating-basis excluding accelerated compensation expense		$1,942		$1,881		$1,877		$1,820		$1,943		$1,828		$	1,852		$	1,836		0.88				$	7,520		$	7,459		(0.81)
Fee operating leverage excluding acquired operations and accelerated compensation expense																				206	bps									51	bps

14

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	3Q16			4Q16			4Q16 vs. 4Q15		4Q16 vs. 3Q16	2015		2016			2016 vs. 2015
Operating Leverage excluding acquired operations and accelerated compensation expense:
Total revenue, operating-basis (as reconciled above)		$2,672	$2,727	$2,642	$2,588	$2,574	$2,675	$	2,754		$	2,749					$	10,629	$	10,752
	Impact of acquired operations	—	—	—	—	—	—	(65		)	(64		)				—		(129		)
Total revenue, operative-basis excluding acquired operations		$2,672	$2,727	$2,642	$2,588	$2,574	$2,675	$	2,689		$	2,685		3.75%			$	10,629	$	10,623		(0.06)%
Total expenses, operating-basis (as reconciled above)		$1,942	$1,881	$1,877	$1,820	$1,943	$1,828	$	1,909		$	2,143					$	7,520	$	7,823
	Impact of accelerated compensation expense	—	—	—	—	—	—	—			(249		)				—		(249		)
	Impact of acquired operations	—	—	—	—	—	—	(57		)	(58		)				—		(115		)
Total expenses, operating-basis excluding accelerated compensation expense		$1,942	$1,881	$1,877	$1,820	$1,943	$1,828	$	1,852		$	1,836		0.88			$	7,520	$	7,459		(0.81)
Operating leverage excluding acquired operations and accelerated compensation expense														287	bps							75	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) Compensation and employee benefits includes $249 million of accelerated compensation expense ($161 million after tax) for the fourth quarter and year to date December 31, 2016.
(3) Pre-tax operating margin for the first, second, third and fourth quarters of 2015 and first, second, third and fourth quarters of 2016 was calculated by dividing income before income tax expense by total revenue.
(4) Excluding tax benefits related to accelerated compensation expense and acquired operations the effective tax rate was 30.2% for year to date December 31, 2016.
(5) Diluted earnings per common share information for year to date December 31, 2015 do not equal the sum of the quarters.
(6) Excluding the effects of accelerated compensation expense and acquired operations the return on average common equity was 11.4% for year to date December 31, 2016.

15

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF CONSTANT CURRENCY FX IMPACTS
GAAP-Basis Quarter Comparison
	Reported							Currency Translation Impact						Excluding Currency Impact						% Change Constant Currency
(Dollars in millions)	4Q15		3Q16		4Q16			4Q16 vs. 4Q15			4Q16 vs. 3Q16			4Q16 vs. 4Q15			4Q16 vs. 3Q16			4Q16 vs. 4Q15		4Q16 vs. 3Q16
Fee revenue:
Servicing fees	$	1,277	$	1,303	$	1,289		$	(16	)	$	(14	)	$	1,305		$	1,303		2.2	%	—	%
Management fees	282		368		361			(7		)	(4		)	368			365			30.5		(0.8	)
Trading services	247		267		293			(2		)	(1		)	295			294			19.4		10.1
Securities finance	127		136		136			—			—			136			136			7.1		—
Processing fees and other	111		5		(65		)	(2		)	(2		)	(63		)	(63		)	nm		nm
Total fee revenue	2,044		2,079		2,014			(27		)	(21		)	2,041			2,035			(0.1	)	(2.1	)
Net interest revenue	494		537		514			(7		)	(3		)	521			517			5.5		(3.7	)
Gains (losses) related to investment securities, net	—		4		2			—			—			2			2			nm		(50.0	)
Total revenue	$	2,538	$	2,620	$	2,530		$	(34	)	$	(24	)	$	2,564		$	2,554		1.0		(2.5	)
Expenses:
Compensation and employee benefits	$	939	$	1,013	$	1,244		$	(18	)	$	(12	)	$	1,262		$	1,256		34.4		24.0
Information systems and communications	261		285		278			—			(2		)	278			280			6.5		(1.8	)
Transaction processing services	194		200		199			(3		)	(2		)	202			201			4.1		0.5
Occupancy	112		107		109			(3		)	(1		)	112			110			—		2.8
Other	351		379		353			(3		)	(3		)	356			356			1.4		(6.1	)
Total expenses	$	1,857	$	1,984	$	2,183		$	(27	)	$	(20	)	$	2,210		$	2,203		19.0		11.0

GAAP-Basis YTD Comparison
	Reported					Currency Translation Impact			Excluding Currency Impact		% Change
(Dollars in millions)	2015			2016		YTD 2016 vs. YTD 2015			2016		YTD 2016 vs. YTD 2015
Fee revenue:
Servicing fees	$	5,153		$	5,073	$	(42	)	$	5,115	(0.7	)%
Management fees	1,174			1,292		(17		)	1,309		11.5
Trading services	1,146			1,099		(5		)	1,104		(3.7	)
Securities finance	496			562		—			562		13.3
Processing fees and other	309			90		(3		)	93		(69.9	)
Total fee revenue	8,278			8,116		(67		)	8,183		(1.1	)
Net interest revenue	2,088			2,084		(18		)	2,102		0.7
Gains (losses) related to investment securities, net	(6		)	7		—			7		(216.7	)
Total revenue	$	10,360		$	10,207	$	(85	)	$	10,292	(0.7	)
Expenses:
Compensation and employee benefits	$	4,061		$	4,353	$	(44	)	$	4,397	8.3
Information systems and communications	1,022			1,105		(8		)	1,113		8.9
Transaction processing services	793			800		(5		)	805		1.5
Occupancy	444			440		(6		)	446		0.5
Other	1,730			1,379		(5		)	1,384		(20.0	)
Total expenses	$	8,050		$	8,077	$	(68	)	$	8,145	1.2

16

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF CONSTANT CURRENCY FX IMPACTS (Continued)
Operating-Basis Quarter Comparison
	Reported						Currency Translation Impact						Excluding Currency Impact				% Change Constant Currency
(Dollars in millions)	4Q15		3Q16		4Q16		4Q16 vs. 4Q15			4Q16 vs. 3Q16			4Q16 vs. 4Q15		4Q16 vs. 3Q16		4Q16 vs. 4Q15		4Q16 vs. 3Q16
Fee revenue:
Servicing fees	$	1,277	$	1,303	$	1,289	$	(16	)	$	(14	)	$	1,305	$	1,303	2.2	%	—	%
Management fees	282		368		361		(7		)	(4		)	368		365		30.5		(0.8	)
Trading services	247		267		293		(2		)	(1		)	295		294		19.4		10.1
Securities finance	127		136		136		—			—			136		136		7.1		—
Processing fees and other	142		139		121		(2		)	(2		)	123		123		(13.4	)	(11.5	)
Total fee revenue	2,075		2,213		2,200		(27		)	(21		)	2,227		2,221		7.3		0.4
Net interest revenue	513		537		547		(7		)	(3		)	554		550		8.0		2.4
Gains (losses) related to investment securities, net	—		4		2		—			—			2		2		nm		(50.0	)
Total revenue	$	2,588	$	2,754	$	2,749	$	(34	)	$	(24	)	$	2,783	$	2,773	7.5		0.7
Expenses:
Compensation and employee benefits	$	940	$	1,022	$	1,246	$	(18	)	$	(12	)	$	1,264	$	1,258	34.5		23.1
Information systems and communications	261		285		278		—			(2		)	278		280		6.5		(1.8	)
Transaction processing services	194		200		199		(3		)	(2		)	202		201		4.1		0.5
Occupancy	112		107		109		(3		)	(1		)	112		110		—		2.8
Other	313		295		311		(3		)	(3		)	314		314		0.3		6.4
Total expenses	$	1,820	$	1,909	$	2,143	$	(27	)	$	(20	)	$	2,170	$	2,163	19.2		13.3

Operating-Basis YTD Comparison
	Reported					Currency Translation Impact			Excluding Currency Impact		% Change
(Dollars in millions)	2015			2016		YTD 2016 vs. YTD 2015			2016		YTD 2016 vs. YTD 2015
Fee revenue:
Servicing fees	$	5,153		$	5,121	$	(42	)	$	5,163	0.2	%
Management fees	1,174			1,287		(17		)	1,304		11.1
Trading services	1,146			1,099		(5		)	1,104		(3.7	)
Securities finance	496			562		—			562		13.3
Processing fees and other	503			507		(3		)	510		1.4
Total fee revenue	8,472			8,576		(67		)	8,643		2.0
Net interest revenue	2,163			2,169		(18		)	2,187		1.1
Gains (losses) related to investment securities, net	(6		)	7		—			7		(216.7	)
Total revenue	$	10,629		$	10,752	$	(85	)	$	10,837	2.0
Expenses:
Compensation and employee benefits	$	3,988		$	4,364	$	(44	)	$	4,408	10.5
Information systems and communications	1,022			1,105		(8		)	1,113		8.9
Transaction processing services	793			800		(5		)	805		1.5
Occupancy	444			440		(6		)	446		0.5
Other	1,273			1,114		(5		)	1,119		(12.1	)
Total expenses	$	7,520		$	7,823	$	(68	)	$	7,891	4.9

17

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF CONSTANT CURRENCY FX IMPACTS (Continued)
Operating-Basis Quarter Comparison Excluding Acquired Operations
	Reported Excluding Acquired Operations						Currency Translation Impact						Excluding Currency Impact				% Change Constant Currency
(Dollars in millions)	4Q15		3Q16		4Q16		4Q16 vs. 4Q15			4Q16 vs. 3Q16			4Q16 vs. 4Q15		4Q16 vs. 3Q16		4Q16 vs. 4Q15		4Q16 vs. 3Q16
Fee revenue:
Servicing fees	$	1,277	$	1,303	$	1,289	$	(16	)	$	(14	)	$	1,305	$	1,303	2.2	%	—	%
Management fees	282		303		297		(7		)	(4		)	304		301		7.8		(0.7	)
Trading services	247		267		293		(2		)	(1		)	295		294		19.4		10.1
Securities finance	127		136		136		—			—			136		136		7.1		—
Processing fees and other	142		139		121		(2		)	(2		)	123		123		(13.4	)	(11.5	)
Total fee revenue	2,075		2,148		$	2,136	(27		)	(21		)	2,163		2,157		4.2		0.4
Net interest revenue	513		537		547		(7		)	(3		)	554		550		8.0		2.4
Gains (losses) related to investment securities, net	—		4		2		—			—			2		2		nm		(50.0	)
Total revenue	$	2,588	$	2,689	$	2,685	$	(34	)	$	(24	)	$	2,719	$	2,709	5.1		0.7
Expenses:
Compensation and employee benefits	$	940	$	996	$	1,222	$	(18	)	$	(12	)	$	1,240	$	1,234	31.9		23.9
Information systems and communications	261		279		272		—			(2		)	272		274		4.2		(1.8	)
Transaction processing services	194		197		196		(3		)	(2		)	199		198		2.6		0.5
Occupancy	112		105		106		(3		)	(1		)	109		107		(2.7	)	1.9
Other	313		275		289		(3		)	(3		)	292		292		(6.7	)	6.2
Total expenses	$	1,820	$	1,852	$	2,085	$	(27	)	$	(20	)	$	2,112	$	2,105	16.0		13.7

Operating Basis YTD Comparison Excluding Acquired Operations
	Reported Excluding Acquired Operations					Currency Translation Impact			Excluding Currency Impact		% Change
(Dollars in millions)	2015			2016		YTD 2016 vs. YTD 2015			2016		YTD 2016 vs. YTD 2015
Fee revenue:
Servicing fees	$	5,153		$	5,121	$	(42	)	$	5,163	0.2	%
Management fees	1,174			1,158		(17		)	1,175		0.1
Trading services	1,146			1,099		(5		)	1,104		(3.7	)
Securities finance	496			562		—			562		13.3
Processing fees and other	503			507		(3		)	510		1.4
Total fee revenue	8,472			8,447		(67		)	8,514		0.5
Net interest revenue	2,163			2,169		(18		)	2,187		1.1
Gains (losses) related to investment securities, net	(6		)	7		—			7		(216.7	)
Total revenue	$	10,629		$	10,623	$	(85	)	$	10,708	0.7
Expenses:
Compensation and employee benefits	$	3,988		$	4,314	$	(44	)	$	4,358	9.3
Information systems and communications	1,022			1,093		(8		)	1,101		7.7
Transaction processing services	793			794		(5		)	799		0.8
Occupancy	444			435		(6		)	441		(0.7	)
Other	1,273			1,072		(5		)	1,077		(15.4	)
Total expenses	$	7,520		$	7,708	$	(68	)	$	7,776	3.4

18

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF CONSTANT CURRENCY FX IMPACTS (Continued)
Operating-Basis Quarter Comparison Excluding Accelerated Compensation Expense
	Reported Excluding Accelerated Compensation Expense						Currency Translation Impact						Excluding Currency Impact				% Change Constant Currency
(Dollars in millions)	4Q15		3Q16		4Q16		4Q16 vs. 4Q15			4Q16 vs. 3Q16			4Q16 vs. 4Q15		4Q16 vs. 3Q16		4Q16 vs. 4Q15		4Q16 vs. 3Q16
Fee revenue:
Servicing fees	$	1,277	$	1,303	$	1,289	$	(16	)	$	(14	)	$	1,305	$	1,303	2.2	%	—	%
Management fees	282		368		361		(7		)	(4		)	368		365		30.5		(0.8	)
Trading services	247		267		293		(2		)	(1		)	295		294		19.4		10.1
Securities finance	127		136		136		—			—			136		136		7.1		—
Processing fees and other	142		139		121		(2		)	(2		)	123		123		(13.4	)	(11.5	)
Total fee revenue	2,075		2,213		2,200		(27		)	(21		)	2,227		2,221		7.3		0.4
Net interest revenue	513		537		547		(7		)	(3		)	554		550		8.0		2.4
Gains (losses) related to investment securities, net	—		4		2		—			—			2		2		nm		(50.0	)
Total revenue	$	2,588	$	2,754	$	2,749	$	(34	)	$	(24	)	$	2,783	$	2,773	7.5		0.7
Expenses:
Compensation and employee benefits	$	940	$	1,022	$	997	$	(18	)	$	(12	)	$	1,015	$	1,009	8.0		(1.3	)
Information systems and communications	261		285		278		—			(2		)	278		280		6.5		(1.8	)
Transaction processing services	194		200		199		(3		)	(2		)	202		201		4.1		0.5
Occupancy	112		107		109		(3		)	(1		)	112		110		—		2.8
Other	313		295		311		(3		)	(3		)	314		314		0.3		6.4
Total expenses	$	1,820	$	1,909	$	1,894	$	(27	)	$	(20	)	$	1,921	$	1,914	5.5		0.3

Operating Basis YTD Comparison Excluding Accelerated Compensation Expense
	Reported Excluding Accelerated Compensation Expense					Currency Translation Impact			Excluding Currency Impact		% Change
(Dollars in millions)	2015			2016		YTD 2016 vs. YTD 2015			2016		YTD 2016 vs. YTD 2015
Fee revenue:
Servicing fees	$	5,153		$	5,121	$	(42	)	$	5,163	0.2	%
Management fees	1,174			1,287		(17		)	1,304		11.1
Trading services	1,146			1,099		(5		)	1,104		(3.7	)
Securities finance	496			562		—			562		13.3
Processing fees and other	503			507		(3		)	510		1.4
Total fee revenue	8,472			8,576		(67		)	8,643		2.0
Net interest revenue	2,163			2,169		(18		)	2,187		1.1
Gains (losses) related to investment securities, net	(6		)	7		—			7		(216.7	)
Total revenue	$	10,629		$	10,752	$	(85	)	$	10,837	2.0
Expenses:
Compensation and employee benefits	$	3,988		$	4,115	$	(44	)	$	4,159	4.3
Information systems and communications	1,022			1,105		(8		)	1,113		8.9
Transaction processing services	793			800		(5		)	805		1.5
Occupancy	444			440		(6		)	446		0.5
Other	1,273			1,114		(5		)	1,119		(12.1	)
Total expenses	$	7,520		$	7,574	$	(68	)	$	7,642	1.6

19

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF CONSTANT CURRENCY FX IMPACTS (Continued)
AUCA and AUM Quarter Comparison
	Reported						Currency Translation Impact						Excluding Currency Impact				% Change Constant Currency
(Dollars in billions)	4Q15		3Q16		4Q16		4Q16 vs. 4Q15			4Q16 vs. 3Q16			4Q16 vs. 4Q15		4Q16 vs. 3Q16		4Q16 vs. 4Q15		4Q16 vs. 3Q16
Assets Under Custody and Administration	$	27,508	$	29,178	$	28,771	$	(431	)	$	(298	)	$	29,202	$	29,069	6.2	%	(0.4	)%
Assets Under Management	2,245		2,446		2,468		(20		)	(38		)	2,488		2,506		10.8		2.5
nm Not meaningful

20

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. For the periods below the total risk-weighted assets component, or denominator, used in the calculation of the CET1, tier 1 risk-based capital and total risk-based capital ratios were each calculated in conformity with the advanced approaches and standardized approach provisions of Basel III, as the case may be.

     The advanced approaches-based ratios (actual and estimated) included in this presentation reflect calculations and determinations with respect to our capital and related matters, based on State Street and external data, quantitative formula, statistical models, historical correlations and assumptions, collectively referred to as “advanced systems,” in effect and used by us for those purposes as of the respective date of each ratio’s first public announcement. Significant components of these advanced systems involve the exercise of judgment by us and our regulators, and these advanced systems may not, individually or collectively, precisely represent or calculate the scenarios, circumstances, outputs or other results for which they are designed or intended. Due to the influence of changes in these advanced systems, whether resulting from changes in data inputs, regulation or regulatory supervision or interpretation, State Street-specific or market activities or experiences or other updates or factors, we expect that our advanced systems and our capital ratios calculated in conformity with the Basel III framework will change and may be volatile over time, and that those latter changes or volatility could be material as calculated and measured from period to period.

     The tangible common equity, or TCE, ratio is an additional capital ratio that management believes provides context useful in understanding and assessing State Street's capital adequacy. The TCE ratio is calculated by dividing consolidated total common shareholders’ equity by consolidated total assets, after reducing both amounts by goodwill and other intangible assets net of related deferred taxes. Total assets reflected in the TCE ratio also exclude cash balances on deposit at the Federal Reserve Bank and other central banks in excess of required reserves. The TCE ratio is not required by GAAP or by banking regulations, but is a metric used by management to evaluate the adequacy of State Street’s capital levels. Since there is no authoritative requirement to calculate the TCE ratio, our TCE ratio is not necessarily comparable to similar capital measures disclosed or used by other companies in the financial services industry. Tangible common equity and adjusted tangible assets are non-GAAP financial measures and should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP or other applicable requirements. Reconciliations with respect to the calculation of the TCE ratios are provided on page 22 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						3Q16						4Q16
(Dollars in millions)	Basel III Advanced Approaches(1)			Basel III Standardized Approach(2)			Basel III Advanced Approaches(1)			Basel III Standardized Approach(2)			Basel III Advanced Approaches(1)			Basel III Standardized Approach(2)			Basel III Advanced Approaches(1)			Basel III Standardized Approach(2)			Basel III Advanced Approaches(1)			Basel III Standardized Approach(2)			Basel III Advanced Approaches(1)			Basel III Standardized Approach(2)			Basel III Advanced Approaches(1)			Basel III Standardized Approach(2)			Basel III Advanced Approaches(1)			Basel III Standardized Approach(2)
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		%	12.3		%	12.5		%	11.7		%	11.6		%
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			15.4			15.7			14.8			14.7
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			17.6			17.9			16.0			16.0
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			6.8			6.8			6.5			6.5
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		$	12,518		$	12,518		$	12,269		$	12,269		$	11,624		$	11,624
Total risk-weighted assets	103,998			121,946			104,533			109,788			104,365			105,765			99,552			95,893			100,633			99,617			104,012			104,492			99,736			98,374			99,374			99,954
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		%	12.3		%	12.5		%	11.7		%	11.6		%
Tier 1 capital	$	14,598		$	14,598		$	15,401		$	15,401		$	15,361		$	15,361		$	15,264		$	15,264		$	15,032		$	15,032		$	15,642		$	15,642		$	15,407		$	15,407		$	14,717		$	14,717
Total risk-weighted assets	103,998			121,946			104,533			109,788			104,365			105,765			99,552			95,893			100,633			99,617			104,012			104,492			99,736			98,374			99,374			99,954
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		%	15.4		%	15.7		%	14.8		%	14.7		%
Total capital	$	16,752		$	16,752		$	17,554		$	17,554		$	17,526		$	17,583		$	17,349		$	17,403		$	17,191		$	17,248		$	17,794		$	17,869		$	17,560		$	17,632		$	15,909		$	15,967
Total risk-weighted assets	103,998			121,946			104,533			109,788			104,365			105,765			99,552			95,893			100,633			99,617			104,012			104,492			99,736			98,374			99,374			99,954
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		%	17.6		%	17.9		%	16.0		%	16.0		%
Tier 1 capital	$	14,598		$	14,598		$	15,401		$	15,401		$	15,361		$	15,361		$	15,264		$	15,264		$	15,032		$	15,032		$	15,642		$	15,642		$	15,407		$	15,407		$	14,717		$	14,717
Adjusted quarterly average assets	252,406			252,406			257,227			257,227			244,553			244,553			221,880			221,880			217,029			217,029			222,666			222,666			226,093			226,093			226,310			226,310
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		%	6.8		%	6.8		%	6.5		%	6.5		%
(1) CET1, tier 1 capital, total capital and tier 1 leverage ratios for each period above were calculated in conformity with the advanced approaches provisions of the Basel III final rule.
(2) CET1, tier 1 capital, total capital, and tier 1 leverage ratios for each period above were calculated in conformity with the standardized approach provisions of the Basel III final rule.

21

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			3Q16			4Q16
Consolidated total assets		$	279,448		$	294,544		$	247,235		$	245,155		$	243,685		$	255,386		$	256,140		$	242,698
Less:
Goodwill		5,663			5,729			5,716			5,671			5,733			5,671			5,911			5,814
Other intangible assets		1,892			1,871			1,820			1,768			1,749			1,682			1,849			1,750
Cash balances held at central banks in excess of required reserves		71,740			106,202			60,160			66,259			58,639			67,710			67,571			62,037
Adjusted assets		200,153			180,742			179,539			171,457			177,564			180,323			180,809			173,097
Plus related deferred tax liabilities		814			834			713			694			698			688			685			655
Total tangible assets	A	$	200,967		$	181,576		$	180,252		$	172,151		$	178,262		$	181,011		$	181,494		$	173,752
Consolidated total common shareholders' equity		$	18,709		$	18,643		$	18,640		$	18,399		$	18,793		$	18,877		$	18,954		$	18,023
Less:
Goodwill		5,663			5,729			5,716			5,671			5,733			5,671			5,911			5,814
Other intangible assets		1,892			1,871			1,820			1,768			1,749			1,682			1,849			1,750
Adjusted equity		11,154			11,043			11,104			10,960			11,311			11,524			11,194			10,459
Plus related deferred tax liabilities		814			834			713			694			698			688			685			655
Total tangible common equity	B	$	11,968		$	11,877		$	11,817		$	11,654		$	12,009		$	12,212		$	11,879		$	11,114
Tangible common equity ratio	B/A	6.0		%	6.5		%	6.6		%	6.8		%	6.7		%	6.7		%	6.5		%	6.4		%

22

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 December 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	$	11,624		$	(770	)	$	10,854		$	11,624		$	(770	)	$	10,854
Tier 1 capital	14,717			(666		)	14,051			14,717			(666		)	14,051
Total capital	15,909			(667		)	15,242			15,967			(667		)	15,300
Risk weighted assets	99,374			34			99,408			99,954			31			99,985
Adjusted average assets	226,310			(475		)	225,835			226,310			(475		)	225,835
Capital ratios:
Common equity tier 1 capital	11.7		%				10.9		%	11.6		%				10.9		%
Tier 1 capital	14.8						14.1			14.7						14.1
Total capital	16.0						15.3			16.0						15.3
Tier 1 leverage	6.5						6.2			6.5						6.2
As of September 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	$	12,269		$	(537	)	$	11,732		$	12,269		$	(537	)	$	11,732
Tier 1 capital	15,407			(479		)	14,928			15,407			(479		)	14,928
Total capital	17,560			(525		)	17,035			17,632			(525		)	17,107
Risk weighted assets	99,736			(528		)	99,208			98,374			(497		)	97,877
Adjusted average assets	226,093			(297		)	225,796			226,093			(297		)	225,796
Capital ratios:
Common equity tier 1 capital	12.3		%				11.8		%	12.5		%				12.0		%
Tier 1 capital	15.4						15.0			15.7						15.3
Total capital	17.6						17.2			17.9						17.5
Tier 1 leverage	6.8						6.6			6.8						6.6

23

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF FULLY PHASED-IN CAPITAL RATIOS (Continued)
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	$	12,518		$	(452	)	$	12,066		$	12,518		$	(452	)	$	12,066
Tier 1 capital	15,642			(393		)	15,249			15,642			(393		)	15,249
Total capital	17,794			(438		)	17,356			17,869			(438		)	17,431
Risk weighted assets	104,012			65			104,077			104,492			62			104,554
Adjusted average assets	222,666			(283		)	222,383			222,666			(283		)	222,383
Capital ratios:
Common equity tier 1 capital	12.0		%				11.6		%	12.0		%				11.5		%
Tier 1 capital	15.0						14.7			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

24

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF FULLY PHASED-IN CAPITAL RATIOS (Continued)
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			(406		)	99,146			95,893			(382		)	95,511
Adjusted average assets	221,880			(545		)	221,335			221,880			(545		)	221,335
Capital ratios:
Common equity tier 1 capital	12.5		%				11.6		%	13.0		%				12.0		%
Tier 1 capital	15.3						14.3			15.9						14.9
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

25

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF FULLY PHASED-IN CAPITAL RATIOS (Continued)
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

26

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 for the periods below are preliminary estimates by State Street (in each case, fully phased-in as of January 1, 2018, as per the phase-in requirements of the SLR final rule), calculated based on our interpretations of the SLR final rule as of July 27, 2016 and as applied to our businesses and operations for the periods below.
The following tables reconcile our estimated pro forma fully-phased in SLR ratios for the periods below 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 December 31, 2016 (Dollars in millions)	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	14,717		A	$	14,051		$	15,805		$	15,169
On-and off-balance sheet leverage exposure	257,508				257,508			253,488			253,488
Less: regulatory deductions	(6,476		)		(6,950		)	(6,078		)	(6,532		)
Total assets for SLR	251,032			B	250,558			247,410			246,956
Supplementary Leverage Ratio	5.9		%	A/B	5.6		%	6.4		%	6.1		%
	State Street							State Street Bank
As of September 30, 2016 (Dollars in millions)	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	15,407		C	$	14,928		$	15,817		$	15,374
On-and off-balance sheet leverage exposure	257,179				257,179			252,104			252,104
Less: regulatory deductions	(6,188		)		(6,485		)	(5,798		)	(6,072		)
Total assets for SLR	250,991			D	250,694			246,306			246,032
Supplementary Leverage Ratio	6.1		%	C/D	6.0		%	6.4		%	6.2		%
	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	$	15,642		E	$	15,249		$	15,742		$	15,385
On-and off-balance sheet leverage exposure	254,999				254,999			250,061			250,061
Less: regulatory deductions	(5,949		)		(6,232		)	(5,578		)	(5,835		)
Total assets for SLR	249,050			F	248,767			244,483			244,226
Supplementary Leverage Ratio	6.3		%	E/F	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		G	$	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			H	241,436			237,292			236,970
Supplementary Leverage Ratio	6.2		%	G/H	6.0		%	6.4		%	6.2		%

27

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF SUPPLEMENTARY LEVERAGE RATIOS (Continued)
	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		I	$	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			J	246,312			242,200			241,700
Supplementary Leverage Ratio	6.2		%	I/J	5.8		%	6.0		%	5.7		%
	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		K	$	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			L	270,274			265,797			265,354
Supplementary Leverage Ratio	5.7		%	K/L	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		M	$	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			N	284,945			281,075			280,336
Supplementary Leverage Ratio	5.4		%	M/N	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		O	$	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			P	282,034			278,326			277,571
Supplementary Leverage Ratio	5.2		%	O/P	4.9		%	4.9		%	4.8		%

28

EX-99.3

State Street Corporation Fourth-Quarter 2016 Financial Highlights January 25, 2017 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 fourth quarter and full year 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 United States securities laws, including statements about our goals and expectations regarding our business, financial and capital condition, results of operations, strategies, the financial and market outlook, dividend and stock purchase programs, governmental and regulatory initiatives and developments, and the business environment. Forward-looking statements are often, but not always, identified by such forward-looking terminology as “outlook,” “expect,” "priority," “objective,” “intend,” “plan,” “forecast,” “believe,” “anticipate,” “estimate,” “seek,” “may,” “will,” “trend,” “target,” “strategy” and “goal,” or similar statements or variations of such terms. These statements are not guarantees of future performance, are inherently uncertain, are based on current assumptions that are difficult to predict and involve a number of risks and uncertainties. Therefore, actual outcomes and results may differ materially from what is expressed in those statements, and those statements should not be relied upon as representing our expectations or beliefs as of any date subsequent to January 25, 2017. Important factors that may affect future results and outcomes include, but are not limited to: 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 needs, regulatory 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, resolution 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 have a credible resolution plan by July 2017, or that plan 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 to be filed on July 1, 2017 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 or non-objection 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 corporate activities, including, without limitation, acquisitions, dividends and stock purchases, without which our growth plans, distributions to shareholders, share repurchase programs or other capital or corporate initiatives may be restricted; changes in law or regulation, or the enforcement of law or regulation, that may adversely affect our business activities or those of our clients or our counterparties, and the products or services that we sell, including additional or increased taxes or assessments thereon, capital adequacy requirements, margin requirements and changes that expose us to risks related to the adequacy of our controls or compliance programs; economic or financial market disruptions in the U.S. or internationally, including that which may result from recessions or political instability, for example, the U.K.'s referendum to exit from the European Union may continue to disrupt financial markets or economic growth in Europe or similarly, financial markets may react sharply or abruptly to actions taken by the new Presidential Administration in the United States; our ability to develop and execute State Street Beacon, our multi-year transformation program to digitize our business, deliver significant value and innovation for our clients and lower expenses across the organization, any failure of which, in whole or in part, may among other things, reduce our competitive position, diminish the cost-effectiveness of our systems and processes or provide an insufficient return on our associated investment; our ability to promote a strong culture of risk management, operating controls, compliance oversight, ethical behavior and governance that meets our expectations and those of our clients and our regulators, and the financial, regulatory, reputation and other consequences of our failure to meet such expectations; the 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, including, without limitation, that a resolution of the SEC's previously disclosed investigation concerning six EMEA-based (Europe, Middle- East and Africa) clients that were overcharged for transition management services in 2010 and 2011, on the previously disclosed terms agreed upon in principle with the SEC Staff or otherwise, is not final and is subject to completion of negotiations with the SEC Staff, followed by review and consideration by the SEC, and the terms of any such settlement, including, without limitation, the amount of the related penalty, remain subject to change; due to the large pools of assets controlled by our institutional clients, we are subject to the risk of potentially significant variability in our assets under custody and administration and assets under management, and correspondingly in our fee revenue and results of operations, in the event of the loss or gain of any one client or the re-balancing or reinvestment of a significant portion of any one or more clients’ assets into lower-or higher-fee asset classes, and we are subject to significant pressure to reduce the fees we charge for our services as a result of the considerable market influence exerted by those clients and other competitive forces; 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 (including those of our third-party service providers) and their effective operation both independently and with external systems, and complexities and costs of protecting the security of such systems and data; 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. 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 should not by relied on as representing our expectations or beliefs as of any time subsequent to the time this news release is first issued, and we do not undertake efforts to revise those forward-looking statements to reflect events after that time.

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, 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. Our 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 1 Diluted earnings per common share for year to date December 31, 2016 does not equal the sum of the quarters. % Change $ in millions 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 4Q16 vs 4Q15 4Q16 vs 3Q16 2015 2016 2016 vs 2015 Fee revenue: Servicing fees 1,296$ 1,268$ 1,319$ 1,289$ 1,277$ 1,242$ 1,239$ 1,303$ 1,289$ 0.9% (1.1)% 5,153$ 5,073$ (1.6)% Management fees 299 301 304 287 282 270 293 368 361 28.0 (1.9) 1,174 1,292 10.1 Trading services 293 324 281 294 247 272 267 267 293 18.6 9.7 1,146 1,099 (4.1) Securities finance revenue 106 101 155 113 127 134 156 136 136 7.1 - 496 562 13.3 Processing fees and other 57 61 17 120 111 52 98 5 (65) nm nm 309 90 nm Total fee revenue 2,051 2,055 2,076 2,103 2,044 1,970 2,053 2,079 2,014 (1.5) (3.1) 8,278 8,116 (2.0) Net interest revenue (NIR) 574 546 535 513 494 512 521 537 514 4.0 (4.3) 2,088 2,084 (0.2) Net gain/(loss) related to investment securities - (1) (3) (2) - 2 (1) 4 2 nm nm (6) 7 nm Total revenue 2,625 2,600 2,608 2,614 2,538 2,484 2,573 2,620 2,530 (0.3) (3.4) 10,360 10,207 (1.5) Provision for Loan Losses 4 4 2 5 1 4 4 - 2 12 10 Expenses: Compensation and employee benefits 972 1,087 984 1,051 939 1,107 989 1,013 1,244 32.5 22.8 4,061 4,353 7.2 Information systems and communications 246 247 249 265 261 272 270 285 278 6.5 (2.5) 1,022 1,105 8.1 Transaction processing services 201 197 201 201 194 200 201 200 199 2.6 (0.5) 793 800 0.9 Occupancy 113 113 109 110 112 113 111 107 109 (2.7) 1.9 444 440 (0.9) Acquisition and restructuring costs 52 6 3 10 6 104 20 42 43 616.7 2.4 25 209 736.0 Other 473 447 588 325 345 254 269 337 310 (10.1) (8.0) 1,705 1,170 (31.4) Total expenses 2,057 2,097 2,134 1,962 1,857 2,050 1,860 1,984 2,183 17.6 10.0 8,050 8,077 0.3 Income before income tax expense 564 499 472 647 680 430 709 636 345 (49.3) (45.8) 2,298 2,120 (7.7) Income tax expense 76 94 54 67 103 62 92 72 (248) (340.8) (444.4) 318 (22) (106.9) Net income (loss) from minority interest - - - 1 (1) - 2 (1) - nm nm - 1 nm Net income 488 405 418 581 576 368 619 563 593 3.0 5.3 1,980 2,143 8.2 Earnings per share (EPS) 1 1.11$ 0.89$ 0.93$ 1.31$ 1.34$ 0.79$ 1.47$ 1.29$ 1.43$ 6.7 10.9 4.47$ 4.97$ 11.2 Return on average common equity (ROE) 9.4% 7.9% 8.2% 11.3% 11.6% 6.8% 12.4% 10.6% 12.1% 9.8% 10.5% Pre-tax operating margin 21.5% 19.2% 18.1% 24.8% 26.8% 17.3% 27.6% 24.3% 13.6% 22.2% 20.8% Average diluted common shares outstanding (in millions) 424.3 418.8 416.7 412.2 407.0 403.6 398.8 393.2 389.0 413.6 396.1 nm - not meaningful % Change Full YearQuarters

5 In 2016 we made substantial progress on our strategic priorities Strategic Priorities: 2016 Performance (Versus 2015, Where Applicable): 1. Become a digital leader in financial services: • By leveraging our strength as a middle and back office provider to deliver integrated solutions that improve the data, speed and services to our clients • Investing in solutions to deliver client value across businesses including data and analytics to help clients adapt to or comply with SEC Modernization • Leveraging DataGX capabilities to support Asset Owner clients as they in-source asset management 2. Drive growth from core franchise: • Achieved new asset servicing wins of approximately $180B in 4Q16 and approximately $1.4T for 2016, including: First State Super Australia; Sumitomo Mitsui Asset Management Co., Ltd.; and PIMCO • Expanded relationship with Allianz Global Investors in 4Q16 to provide additional custody and accounting servicing and to deliver a broad spectrum of global investment servicing solutions • As a result of a decision to diversify providers, Blackrock will move a portion of their assets, largely common trust funds, currently with State Street to another service provider. We remain a significant service provider to them • Approximately $440B of servicing commitments remaining to be installed as of December 31, 2016 3. Continuous investment in new products and solutions to drive revenue and differentiation: • Expanded SSGA’s suite of Environmental, Social and Governance (ESG) solutions • Investing in Blockchain-inspired application trials designed to automate transactions for syndicated loans, securities lending and collateral management • Recently launched Currenex X2 - a next generation institutional foreign exchange (FX) trading platform 4. Increased focus on expense management: • Fee operating leverage of (280)bps. Generated positive fee operating leverage of 51bps, excluding a (331)bps impact from the 4Q16 acceleration of compensation expense • Generated through State Street Beacon approximately $175M in estimated annual pre-tax expense savings1 in 2016, which is up $100M from our original 2016 target of $75M 5. Leverage strong capital position to return capital to shareholders2: • Quarterly common stock dividends declared per share of $0.38 in 4Q16 • $325M in common stock (4.2M shares) bought back in 4Q16 • As of December 31, 2016, we had approximately $750M remaining under our June 2016 common stock purchase program2 authorizing the purchase of up to $1,400M through June 30, 2017 • Refer to the Appendix included with this presentation for footnotes 1 to 2.

6 2017 Strategic Priorities: 1. Advance our digital leadership through State Street Beacon 2. Drive growth from core franchise 3. Continue to invest in new products and solutions 4. Achieve our financial goals, including generating positive fee operating leverage and continuing to return capital to shareholders We are focused on our 2017 strategic priorities and look forward to updating you on our progress throughout the year

7 Notable items in 4Q16 netted to $0.13 per share benefit1 4Q16 Operating-Basis (Non-GAAP) Financial Highlights2 Notable Items in 4Q16: • Income taxes include items that represent aggregate benefits of $0.54 per share1: • A $145M tax benefit from the designation of certain of our foreign earnings as indefinitely invested overseas, based on a review of our need for capital, liquidity and future investment • A $66M tax benefit attributable to incremental foreign tax credits and a foreign affiliate tax loss • Compensation expenses include an increase of $249M pre-tax ($161M after-tax or $0.41 per share1 after tax) from an acceleration of the expense associated with deferred cash-settled incentive compensation awards that would have been recognized over the remaining term of the awards (1-4 years depending on the award). The expense that would otherwise have been associated with the amended awards will no longer be reflected in future periods: • The deferred portion of many of our bonus-eligible employees’ total compensation had become disproportionate relative to our peer organizations, hindering our efforts to attract and retain talent • We expect that the acceleration of the expense will enable us to increase the immediate cash incentive component of incentive compensation in future years (i.e., for 2017 incentive compensation awarded in 2018): • The expense was accomplished by removing the continued service requirement associated with existing deferred cash-settled incentive compensation awards for employees below the executive vice president level; the change did not affect deferred equity-settled compensation awards (which in the aggregate represent a majority of the outstanding deferred incentive compensation awards for the relevant employees), and we expect that future deferred cash-settled incentive compensation awards will retain the continued service requirements • The payment schedule of the amended cash-settled awards has not changed and continues to include other forfeiture clauses, as applicable • The acceleration of the expense is expected to financially allow us to increase the cash component of incentive compensation in future periods relative to the mix in our awards in recent years and that the impact of the increased immediate cash awards in 2017 will approximately offset the going-forward effects of the 2016 expense acceleration in 2017. We expect the expense impact of immediate and deferred incentive compensation awards will depend upon corporate performance and market, regulatory and other factors and conditions including the form of those awards • Refer to the Appendix included with this presentation for footnotes 1 to 2.

8 2016 results driven by continued expense control and common stock purchases 5.27 4.895.05 4.51 3.92 2016 vs 2015 7.8% 2016 2015 2014 2013 2012 Operating-Basis (Non-GAAP) EPS1 ($) Full Year 2016 compared to 20151: • EPS of $5.27 increased 7.8%, including a net $0.13 per share3 benefit associated with the 4Q16 tax benefits and the acceleration of compensation expense • Total fee revenue of $8.6B up 1.2% • Net interest margin (NIM) of 1.09%, up from 0.98% • Total revenue of $10.8B up 1.2% • Total expenses of $7.8B up 4.0% including the 4Q16 acceleration of compensation expense and the expenses associated with the GEAM operations; down 0.8% excluding these expenses4 • Relative to full-year 2015, the stronger U.S. dollar negatively impacted fee revenue by approximately $67M and favorably impacted expenses by $68M • Effective tax rate of 22.5% decreased 790bps including notable 4Q16 tax benefits and was 30.2% excluding them5 • Pre-tax operating margin of 27.1% decreased 200bps including the 4Q16 acceleration of compensation expense and the expenses associated with the GEAM operations, up 60bps excluding them4 • ROE of 11.1% increased 40bps 4Q16 compared to 4Q15 highlights1: • EPS of $1.48 increased 22%, including a net $0.13 per share6 benefit associated with the 4Q16 tax benefits and the acceleration of compensation expense; up 12% excluding these items4 • ROE increased to 12.5%, excluding the 4Q16 tax gains and the acceleration of compensation expenses increased to 11.4%4 • Pre-tax operating margin decreased to 22.0% and increased to 31.0% excluding the 4Q16 acceleration of compensation expense7 • Refer to the Appendix included with this presentation for footnotes 1 to 7. Capital2: • Purchased approximately $325M of our common stock in 4Q16 • Declared a common stock dividend during 4Q16 of $0.38 per share • As of December 31, 2016, we had approximately $750M remaining under our June 2016 common stock purchase program authorizing the purchase of up to $1,400M through June 30, 2017

9 Excluding the acceleration of compensation expense, generated positive fee operating leverage in both 4Q16 and full year 2016 compared to the same periods in 2015 Operating-Basis (Non-GAAP) Results1 4Q16 vs 4Q15 Operating Leverage Fee Operating Leverage As reported Impact of compensation expense acceleration Impact of acquired GEAM operations2 (1,153)bps 1,374bps 66bps (1,173)bps 1,374bps 5bps Excluding GEAM and compensation expense acceleration 287bps 206bps Full Year 2016 vs 2015 Operating Leverage Fee Operating Leverage As reported Impact of compensation expense acceleration Impact of acquired GEAM operations2 (287)bps 331bps 31bps (280)bps 331bps 0bps Excluding GEAM and compensation expense acceleration 75bps 51ps 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 GEAM has now been integrated into SSGA’s operations. Therefore, the contribution of revenue, expenses and AUM are informed estimates.

10 4Q16 operating-basis (non-GAAP) fee revenue was up 4% from 4Q15 excluding the contribution from the acquired GEAM operations and the impact of the stronger U.S. dollar1, reflecting improved market conditions and new business wins Operating-Basis (Non-GAAP) Fee Revenue2 ($M) 247 293 282 361 121 127 4Q16 vs 4Q15 +6.0% 4Q16 2,200 136 1,289 4Q15 2,075 142 1,277 GEAM: • Estimated contribution from the acquired GEAM3 operations of $64M to management fee revenue Operating-basis (non-GAAP)2 variances 4Q16 vs 4Q15: • The stronger U.S. dollar negatively impacted total fee revenue by approximately $27M (including approximately $16M on servicing fees and $7M on management fees) and NIR by approximately $7M • Servicing fees increased $12M or 1%, and $28M or 2% excluding the impact of the currency translation1, driven by net new business across our servicing lines partially offset by client redemptions in the hedge fund business and asset mix changes – AUCA increased $1.3T or 5% and $1.7T or 6%, excluding the impact of currency translation1, primarily driven by market increases and new business, partially offset by client activity • Management fees increased $79M or 28% and $22M or 8%, excluding the impact of currency translation and the acquired GEAM operations1. This increase was primarily driven by the elimination of money market fee waivers, higher global equity markets, strong ETF flows, partially offset by outflows in cash and sovereign funds. – AUM increased $223B or 10% reflecting $112B in AUM from the acquired GEAM business, $52B in ETF net flows and markets increases, partially offset by short term outflows • Trading services increased, driven by strong client flows in FX due to higher volatility relative to 4Q15 and higher transition management activity • Securities finance revenue increased, driven by steady client growth in enhanced custody primarily offset by lower agency revenue • Processing fees and other revenue decreased, due to unfavorable valuation adjustments (including the impact of higher FX swap costs) and lower revenue from joint ventures, partially offset by higher revenue associated with tax advantaged investments 4Q16 vs 4Q15 Excluding Currency Translation1 7% 2% 30% 19% 7% (13)% 4Q16 vs 4Q15 1% 28% 19% 7% (15)% Processing fees and other Securities finance revenue Trading services Management fees Servicing fees AUCA and AUM ($B) 4Q15 4Q16 % Change 4Q16 vs 4Q15 AUCA 27,508 28,771 5% AUM 2,245 2,468 10% • Refer to the Appendix included with this presentation for footnotes 1 to 3.

11 4Q16 operating-basis (non-GAAP) fee revenue was slightly up from 3Q16 excluding the impact of the strengthening U.S. dollar1 Operating-Basis (Non-GAAP) Fee Revenue2 ($M) GEAM: • Estimated contribution from the acquired GEAM3 operations of $64M to management fee revenue Operating-basis (non-GAAP)2 variances 4Q16 vs 3Q16: • The stronger U.S. dollar negatively impacted total fee revenue by approximately $21M (including approximately $14M on servicing fees and $4M on management fees) and NIR by approximately $3M • Servicing fees decreased $14M or 1% and were flat to the prior quarter, excluding the impact of currency translation1. New business was offset by client redemptions in the hedge fund business, change in asset mix, and rotation out of the emerging markets – AUCA decreased $407B or 1% and $109B or less than 1%, excluding the impact of currency translation1 as market declines were modestly offset by new business • Management fees decreased $7M or 2% and $3M or 1%, excluding the impact of currency translation1. The decrease was primarily driven by cash outflows partially offset by strong ETF inflows and investment performance – AUM increased $22B or 1% and $60B or 2%, excluding the impact of currency translation1. Strength in ETF net flows were highest in two years, led by SPY and Select Sectors, partially offset by short term outflows particularly in securities lending assets related to asset mix shift to more non-cash collaterals • Trading services increased driven by continued strong client flows in FX due to higher volatility and higher transition management activity • Securities finance revenue flat primarily due to continued growth in enhanced custody approximately offset by lower agency revenue • Processing fees and other revenue decreased due to unfavorable valuation adjustments (including the impact of higher FX swap costs) and lower revenue from joint ventures, partially offset by higher revenue associated with tax advantaged investments 4Q16 vs 3Q16 (1)% (2)% 10% ---% (13)% 267 293 368 361 121 136 1,303 136 1,289 3Q16 4Q16 vs 3Q16 -0.6% 2,213 139 4Q16 2,200 4Q16 vs 3Q16 Excluding Currency Translation1 0.4% ---% (1)% 10% ---% (12)% Trading services Management fees Servicing fees Processing fees and other Securities finance revenue 3Q16 4Q16 % Change 4Q16 vs 3Q16 AUCA 29,178 28,771 (1)% AUM 2,446 2,468 1% AUCA and AUM ($B) • Refer to the Appendix included with this presentation for footnotes 1 to 3.

12 4Q16 operating-basis (non-GAAP) net interest revenue (NIR) and NIM benefitted from higher Federal Funds Rate at end of 4Q16 and continued disciplined liability pricing 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, %) 547537546539513 1.081.061.111.121.01 0 100 200 300 400 500 600 0.00 0.50 1.00 1.50 2.00 3Q16 4Q16 NIR 4Q16 vs 4Q15 +6.6% NIR 4Q16 vs 3Q16 +1.9% 2Q16 1Q16 4Q15 NIM NIR Operating-basis (non-GAAP)1 variance 4Q16 vs 4Q15: • Net interest revenue was up 6.6 %, primarily due to higher market interest rates in the U.S., disciplined liability pricing and several discrete security prepayments in the investment portfolio that represented approximately $8M in NIR, partially offset by a continued decline in foreign security yields Operating-basis (non-GAAP)1 variance 4Q16 vs 3Q16: • Net interest revenue was up 1.9%, primarily due to a decrease in wholesale funding from elevated levels in 3Q16 and several discrete security prepayments in the investment portfolio that represented approximately $8M in NIR, partially offset by a continued decline in foreign security yields 4Q15 1Q16 2Q16 3Q16 4Q16 201 194 198 202 202

13 4Q16 operating-basis (non-GAAP) expenses were up 0.9% versus 4Q15 and down 0.9% versus 3Q16, excluding acquired GEAM operations expenses and the acceleration of compensation expense1 Operating-Basis (Non-GAAP) Expenses2 ($M) 313 295 311 194 200 199 261 285 278 940 1,022 997 109107 249 2,143 3Q16 4Q16 4Q16 vs 4Q15 +17.7% 1,909 4Q16 vs 3Q16 +12.3% 4Q15 1,820 112 Notable Items and GEAM: • Compensation and employee benefits expense in 4Q16 includes acceleration of expense associated with outstanding deferred cash incentive employee compensation of $249M • Estimated contribution from the acquired GEAM3 operations of $58M to expenses, primarily in compensation and benefits expenses, information systems and communication expenses and other expenses Operating-basis (non-GAAP)2 variances 4Q16 vs 4Q15: • The stronger U.S. dollar favorably impacted total expenses by approximately $27M • Compensation and employee benefits expense increased primarily due to costs associated with the acceleration of certain deferred cash settled awards, higher incentive compensation, increased costs associated with the acquired GEAM business, and higher costs to support regulatory initiatives and new business, partially offset by State Street Beacon savings • Information systems and communication expenses increased due to investments supporting new business and State Street Beacon, and the impact of the acquired GEAM business • Other expenses decreased slightly due to lower professional services fees and travel expenses, partially offset by higher costs associated with the acquired GEAM business and higher securities processing costs Operating-basis (non-GAAP)2 variances 4Q16 vs 3Q16: • The stronger U.S. dollar favorably impacted total expenses by approximately $20M • Compensation and employee benefits expenses increased primarily due to costs associated with the acceleration of certain deferred cash settled awards, partially offset by impact of the stronger U.S. dollar, one fewer payroll day in 4Q16, and State Street Beacon savings • Other expenses increased primarily due to higher professional services and securities processing costs, partially offset by lower insurance expenses 4Q16 vs 4Q15 nm 6% 7% 3% (3)% (1)% 4Q16 vs 3Q16 nm (2)% (3)% (1)% 2% 5% Compensation and employee benefits Acceleration of compensation expense in 4Q16 Occupancy Transaction processing services Information systems and communications Other 4Q16 vs 3Q16 Excluding Currency Translation4 13% nm (1)% (2)% 1% 3% 6% 4Q16 vs 4Q15 Excluding Currency Translation4 19% nm 8% 7% 4% ---% ---% • Refer to the Appendix included with this presentation for footnotes 1 to 4.

14 1 As of period-end where applicable. 2 Excludes foreign T-Bills 3 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. 4 Assumptions for NIR include no change in client behavior, please see discussion in State Street’s 3Q16 Quarterly Report on Form 10-Q filed with the SEC. Continue to maintain high-quality balance sheet… 4Q161 Balance Sheet Highlights Investment portfolio • Size: $97.28B • Credit profile: 91.3% rated AAA/AA • Fixed-rate/floating-rate mix: 68%/32% • Duration: 2.5 years • Unrealized after-tax mark-to-market (MTM) loss: $170M • Purchases2: $6.2B with average tax-equivalent yield of 2.06% • Discount accretion remaining and expected to accrue over the remaining lives of the former conduit securities3: $127.5M Interest-rate risk metrics • Unrealized after-tax available-for-sale MTM loss sensitivity in a hypothetical up 100bps shock to quarter-end spot interest rates (all else equal): approximately ($0.8)B • Estimated time period to earn back this loss from increased NIR4, run-off, and pull-to-par valuation effects is expected to be approximately 7 quarters Senior secured bank loans • Total portfolio size: $3.6B • Floating rate • Credit: primarily BB/B • 4Q16 provision for loan losses: $1.9M • Total allowance for credit losses: $45.4M

15 • Refer to the Appendix included with this presentation for footnotes 1 to 4. …and our capital ratios remain strong, though most ratios declined slightly in 4Q16 due to the impact of rising interest rates on Other Comprehensive Income (OCI) 4Q16 Quarter-End Capital1 Positions Dec 31, 2015 Sept 30, 2016 Dec 31, 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 12.5% 13.0% 6.9% 6.7% 12.3% 12.5% 6.8% 7.1% 11.7% 11.6% 6.5% 7.1% Supplementary leverage ratios: State Street Corporation State Street Bank and Trust Company 6.2% 6.0% 6.1% 6.4% 5.9% 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 11.6% 12.0% 5.8% 5.7% 11.8% 12.0% 6.0% 6.2% 10.9% 10.9% 5.6% 6.1% • Common equity tier 1 ratio decreased primarily driven by a decrease in the after-tax unrealized mark-to-market position within the AFS investment portfolio due to higher interest rates, and reductions in FX translation due to a stronger U.S. Dollar • Fully-phased-in supplementary leverage ratio at the Corporation and the Bank decreased driven by a lower after-tax unrealized mark-to- market position within the AFS investment portfolio

16 • Associated AUM of the acquired GEAM operations was $118B at December 31, 2016, including the new OCIO GE UK plan that will begin generating revenue in 2017 • Excluding merger and integration charges, the transaction is expected to be accretive to operating-basis2 EPS for the first full twelve–month period ending June 30, 2017 • In the first full twelve-month period ending June 30, 2017, fee revenue from the transaction is expected to exceed $270M3: – In 4Q16 the acquired business contributed estimated1 operating-basis2 fee revenue of approximately $64M and estimated1 operating-basis2 expenses of approximately $58M, excluding merger and integration charges and financing costs – For the first six months post acquisition the acquired business contributed estimated1 operating-basis2 fee revenue of approximately $129M and estimated1 operating-basis2 expenses of approximately $115M, excluding merger and integration charges and financing costs • Total projected acquisition and restructuring costs: approximately $80M through 2018 (including $29M taken in 3Q16 and $20M taken in 4Q16) The acquired GEAM operations1 are on track to deliver accretive operating-basis2 earnings for the 12 months ending June 30, 2017 1 GEAM has now been integrated into SSGA’s operations. Therefore, the contribution of revenue, expenses and AUM are informed estimates. 2 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. 3 The fee revenue target does not include the impact of certain costs that are recorded as a reduction of revenue in our management fee revenue line. Costs not included in the fee revenue target include 12b-1 expenses, subadvisor fees and unitary fee expenses and are expected to total approximately $13M for the referenced twelve month period. In addition, assuming that the stronger U.S. dollar exchange rate relative to major currencies post April 2016 continues at, or becomes stronger than, current levels, the fee revenue attributable to the acquired GEAM operations during the 12 months ending June 30, 2017, is likely to trend toward the lower end of the previously announced $270M-$300M target range due to the international revenues generated by these operations.

17 2017 Outlook1: Expect new business wins to generate solid fee revenue growth, together with expense initiatives, to generate positive fee operating leverage Refer to the Appendix included with this presentation for footnotes 1 to 4. Category: 2017 Outlook/ Objective2 (Vs 2016 where applicable): Assumptions: Full-year 2017 operating- basis total fee revenue growth: • 4-6% • Under current market conditions in January 20172 • Including the contributions of the acquired GEAM operations • Including the anticipated impact of the strengthening of the USD relative to major currencies during 4Q16 Fee operating leverage, excluding 4Q16 $249M acceleration of compensation expense: • 100-200bps • Expect variability across quarters, with continued focus on expense management partially offset by continued regulatory pressure, expenses associated with supporting new business wins, investments in strategic initiatives including State Street Beacon and including the contributions of the acquired GEAM operations Expense management: • State Street Beacon pre-tax expense savings of $140M3 • State Street Beacon expense savings to partially offset expenses to support new business, continued business investments, and merit and depreciation increases • Expect restructuring charges as State Street Beacon continues to progress Operating-basis net interest revenue (NIR) scenarios: • Static: $2.2B - $2.23B or up 1-3% • Rising: $2.27B - $2.3B or up 4-6% • Static: assuming market rates to remain at December 31, 2016 levels • Rising: assuming U.S. central bank rate hikes of 0.25% both in March and September 2017; correspondingly, expect market rates to trend higher from current levels; continued quantitative easing in major markets outside of the U.S. • NIR in both scenarios will also depend on the size of our balance sheet, client deposit behavior, balance sheet management activity and the impact of FX swap costs Operating-basis effective tax rate of: • 30-32% • Excludes the impact of any potential4 tax law changes (given present high level of uncertainty) In 1Q17 we expect the incremental amount attributed to equity compensation expense for retirement-eligible employees and payroll taxes to be approximately $155M (relative to $122M in 1Q16)

18 2017 Balance Sheet & Capital Outlook: Returning capital to shareholders remains a priority • Under both Static and Rising interest rate scenarios1, the balance sheet is projected to modestly decline during 2017 due to client deposits and wholesale CD run-off (range of $0- 15B) with a potential resulting decrease in average earning assets of approximately 0-5% compared to the 4Q16 average earning asset levels • As of December 31, 2016, we had approximately $750M remaining under our June 2016 common stock purchase program authorizing the purchase of up to $1,400M through June 30, 20172 • The evolution of our capital planning, including meeting regulatory capital and liquidity expectations, may lead to issuances of preferred shares and/or long-term debt in 2017: –Expect Tier 1 (T1) leverage to be constraining capital requirement near-term –Maintaining Common Equity T1 (CET) minimum target of 10% –Continue to manage deposit levels to mitigate impact on T1 and Supplementary Leverage Ratios (SLR) –Dividends on currently outstanding3 preferred shares are expected to be approximately $182M in 2017 ($55.3M in 1Q17 and 3Q17, $35.6M in 2Q17 and 4Q17) • Final TLAC rule issued in December 2016 was largely in-line with our expectations. Based on the external long term debt requirements linked to SLR, we currently estimate that we will need to issue incremental debt of $2B 1 See scenarios presented on prior slide. 2 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. 3 As of December 31, 2016.

19 Appendix State Street Beacon 20 Footnotes to Slides 5, 7, 8, 10,11,13,15 & 17 21-24 Definitions 25-26 Non-GAAP Measures, Regulatory Capital Ratios and Reconciliations 27-28

20 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 27 and 28 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: − Generated $175M in estimated annual pre-tax expense savings in 2016 − Expect at least $140M in additional annual pre-tax net expense savings in 2017 • Annual pre-tax 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 $142M for 2016

21 Footnotes to Slides 5, 7, 8, 10,11,13 15 & 17

22 Footnotes to slides 5, 7 & 8 1 Estimated year-over-year 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), 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. 2 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: 1 Non-GAAP per share information is calculated based on average common shares outstanding. Refer to the addendum linked to this presentation for explanations of our non-GAAP financial measures and for reconciliations of our historical non-GAAP financial information. 2 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. Footnotes to slide 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. 2 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. 3 Non-GAAP per share information is calculated based on average common shares outstanding. Refer to the addendum linked to this presentation for explanations of our non-GAAP financial measures and for reconciliations of our historical non-GAAP financial information. 4 Includes operating-basis (non-GAAP) financial information, excluding the effects of the 4Q16 acceleration of compensation expense and the revenues and expenses associated with the GEAM business, as applicable. This is 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 non-GAAP financial information. 5 Includes operating-basis (non-GAAP) financial information, excluding the effects of the 4Q16 tax benefits, as applicable. This is 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 non-GAAP financial information. 6 Includes operating-basis (non-GAAP) financial information, excluding the effects of the 4Q16 acceleration of compensation expense, as applicable. This is 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 non-GAAP financial information. 7 Includes operating-basis (non-GAAP) financial information, excluding the effects of the 4Q16 acceleration of compensation expense and the effects of the 4Q16 tax benefits, as applicable. This is 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 non-GAAP financial information. Footnotes to slide 8:

23 Footnotes to slides 10,11 & 13 Footnotes to slides 10 & 11: 1 Includes operating-basis (non-GAAP) information, excluding the effects of changes in foreign exchange rates and the revenues and expenses associated with the GEAM business, as applicable. This presentation is 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 non-GAAP financial information. 2 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. 3 GEAM has now been integrated into SSGA’s operations. Therefore, the contribution of revenue, expenses and AUM are informed estimates. nm = not meaningful. 1 Includes operating-basis (non-GAAP) financial information, excluding the effects of the 4Q16 accretion of compensation expense and the revenues and expenses associated with the GEAM business, as applicable. This is 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 financial information. 2 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. 3 GEAM has now been integrated into SSGA’s operations. Therefore, the contribution of revenue, expenses and AUM are informed estimates. 4 Includes operating-basis (non-GAAP) information, excluding the effects of changes in foreign exchange rates. This presentation is 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 non-GAAP financial information. Footnotes to slide 13:

24 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 Daily averages as of January 23, 2017: S&P 2269, MSCI EAFE 1712, MSCI Emerging 886 3 Estimated year-over-year 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), 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 Based upon our initial review of potential U.S. tax reform legislation, we do not expect that there will be a significant impact in 2017. In addition, at this stage there are very substantial uncertainties as to how it would impact State Street and other financial services entities on either an absolute or relative basis. Footnotes to slide 17: Footnotes to slide 15: 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. December 31, 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 December 31, 2016 and June 30, 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 October 26, 2016 and July 27, 2016, respectively as applied to our businesses and operations as of December 31, 2016 and September 30, 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 December 31, 2016 and September 30, 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 January 25, 2016 and October 26, 2016, respectively, and as applied to our businesses and operations as of December 31, 2016 and September 30, 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.

25 Definitions

26 Definitions Available for sale (AFS) Available for sale security that is purchased with the intent of holding before it reaches maturity AUCA Assets under custody and administration AUM Assets under management Diluted earnings per share (EPS) Net income available to common shareholders divided by diluted average common shares outstanding Fee Operating Leverage Rate of growth of total fee revenue less the rate of growth of expenses, each as determined on an operating basis GE Asset Management (GEAM) The acquired GE Asset Management operations Foreign Exchange (FX) Foreign exchange Net interest margin (NIM) Net interest revenue divided by average interest-earning assets Net interest revenue (NIR) Revenues earned on interest bearing assets less interest paid on interest bearing liabilities Operating Leverage Rate of growth of total revenue less the rate of growth of total expenses, each as determined on an operating basis Outsourced Chief Investment Officer (OCIO) Outsourced CIO - third party provider manages the investment portfolio Pre-tax operating margin Income before income tax expense divided by total revenue Return on equity (ROE) (Net income less dividends on preferred stock) divided by average common equity

27 Non-GAAP Measures, Regulatory Capital Ratios and Reconciliations

28 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 believe 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, 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, where notable, presents operating-basis financial information which also excludes the estimated results of operations of the GE Asset Management business (acquired on July 1, 2016) and other metrics (e.g. the fourth quarter 2016 acceleration of compensation expense or the effects of changes in foreign expense rates), as this presentation aids the comparability of financial results to prior periods that did not include those events. 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. 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 2017 assumes an estimated $15M to $25M of such discount accretion, excluding the impact of potential significant unexpected prepayments. 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”.