8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________

FORM 8-K

______________________

CURRENT REPORT

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

Date of Report (Date of earliest event reported): July 26, 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 (17 CFR 230.425)

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

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

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

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

Emerging growth company  ¨

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

Item 2.02.Results of Operations and Financial Condition.

On July 26, 2017, State Street Corporation issued a news release announcing its results of operations for the second-quarter of 2017. Copies of that news release and accompanying second-quarter 2017 financial information addendum are furnished herewith as Exhibits 99.1 and 99.2, respectively, and are incorporated herein by reference.

Item 7.01.Regulation FD.

On July 26, 2017, State Street Corporation made available a slide presentation providing highlights of State Street's second-quarter 2017 results of operations and related information as of June 30, 2017, which is being made available in connection with a July 26, 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 July 26, 2017, announcing its second-quarter 2017 results of operations and accompanying second-quarter 2017 financial information addendum are furnished herewith as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference in Item 2.02 hereof; and a slide presentation providing highlights of State Street's second-quarter 2017 results of operations and related information as of June 30, 2017, which is being made available in connection with a July 26, 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:	July 26, 2017

EXHIBIT INDEX

Exhibit No.	Description
99.1	State Street's news release dated July 26, 2017, announcing its second-quarter 2017 results of operations (this Exhibit 99.1 is furnished, not filed)
99.2	State Street's second-quarter 2017 financial information addendum (this Exhibit 99.2 is furnished, not filed)
99.3	Slide presentation providing highlights of State Street's second-quarter 2017 results of operations and related information as of June 30, 2017 (this Exhibit 99.3 is furnished, not filed)

EX-99.1

Exhibit 99.1

One Lincoln Street

Boston, MA 02111

News Release

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

STATE STREET REPORTS SECOND-QUARTER 2017 GAAP-BASIS

EPS OF $1.53 AND ROE OF 12.6%

2Q17 GAAP-BASIS REVENUE AND FEE REVENUE UP 9% COMPARED TO 2Q16, REFLECTING HIGHER EQUITY MARKETS AND NEW CLIENT BUSINESS MOMENTUM

2Q17 GAAP-BASIS PRE-TAX MARGIN of 27.6% AND

FEE OPERATING LEVERAGE OF -32 BASIS POINTS,

TEMPERED BY RESTRUCTURING COSTS OF $0.11 PER SHARE

On an operating-basis, results for 2Q17 compared to 2Q16 include:

•EPS was $1.67, up 14%

•ROE of 13.7%, up 140 basis points

•Revenue up 10%; and Fee revenue up 9%

•Fee operating leverage of 189 basis points

•Pre-tax operating margin of 33.3%, up 180 basis points

Boston, MA ...July 26, 2017

In announcing today’s financial results, Joseph L. Hooley, State Street’s Chairman and Chief Executive Officer, said, "We are very pleased with our second-quarter results, delivering a record level of quarterly earnings per share that reflect continued strength in global equity markets as well as momentum in our asset servicing and asset management businesses. We also for the first time exceeded $31 trillion in assets under custody and administration this quarter fueled by a combination of new business activity and higher equity markets".

1

Hooley added, "In June we celebrated our 225th anniversary. We're proud to be in a rare category of companies whose success is measured not in years or decades, but in centuries. We’ve been able to achieve this success by focusing on our clients and on key markets, while delivering new solutions to address our clients' needs. We continue to invest and obtain long-term benefits from Beacon, which is core to our next phase of advancing State Street. We're making progress in digitizing our operations and providing new capabilities and information advantages to our clients".

Hooley concluded, "We continue to prioritize returning capital to our shareholders. In June, our Board of Directors approved a $1.4 billion common stock purchase program following the Federal Reserve's review of our capital plan under its 2017 Comprehensive Capital Analysis and Review (CCAR) process. Our 2017 capital plan also includes an increase of approximately 11% in our quarterly common stock dividend to $0.42 per share starting in the third quarter of 2017."

2Q17 Highlights:

• Broad-based business momentum: Strength in equity markets and newbusiness lifted AUCA and AUM to record levels. Asset servicing AUCA grew 12% as compared to 2Q16 quarter-end (4% growth compared to 1Q17 quarter-end). Asset management AUM grew 13% as compared to 2Q16 quarter-end (2% growth compared to 1Q17 quarter-end).

• New business: New asset servicing mandates during 2Q17 totaled approximately $135 billion. Servicing assets remaining to be installed in future periods totaled approximately $370 billion at quarter-end.

• The acquired GE Asset Management (GEAM) operations delivered accretive earnings ahead of our announced plans, excluding merger and integration costs.

• Strength in trading servicesand securities finance reflecting multiple product offerings globally and higher client activity compared to 2Q16.

• Growth in net interest income driven by higher market interest rates in the U.S. and continued focus on the optimization of our liability mix.

• To achieve future cost savings and efficiencies, GAAP-basis 2Q17 results included $62 million, or $0.11 per share, in restructuring expenses related to State Street Beacon.

• Carefully pacing investments to support business expansion, while delivering positive operating-basis fee operating leverage of 189 basis-points.

• Capital: Our estimated Basel III common equity tier 1 ratio as of June 30, 2017 was 12.0% and our estimated supplementary leverage ratio was 6.2%, while delivering GAAP ROE of 12.6% and 13.7% on an operating basis.

2

2Q17 GAAP-Basis Results:

(Table presents summary results, dollars in millions, except per share amounts, or where otherwise noted)	2Q17			1Q17			Increase (Decrease)			2Q16			Increase (Decrease)
Total fee revenue	$	2,235		$	2,198		1.7	%		$	2,053		8.9	%
Net interest income	575			510			12.7			521			10.4
Total revenue	2,810			2,668			5.3			2,573			9.2
Provision for loan losses	3			(2		)	nm			4			(25.0	)
Total expenses	2,031			2,086			(2.6	)		1,860			9.2
Net income available to common shareholders	584			446			30.9			585			(0.2	)
Earnings per common share:
Diluted earnings per share	1.53			1.15			33.0			1.47			4.1
Financial ratios:
Quarterly average total assets	223,917			219,209			2.1			229,197			(2.3	)
Fee operating leverage(1)							432		bps				(32	)	bps
Operating leverage(1)							796						2
Return on average common equity	12.6		%	9.9		%	270			12.4		%	20

^nm Not meaningful

⁽¹⁾ The financial ratio represents the rate of growth of total revenue (or fee revenue) less the rate of growth of expenses relative to the preceding or prior year period, as the case may be.

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 additional meaningful analysis and comparisons of trends with respect to State Street's business operations from period to period, as well as 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. Non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, financial measures determined in conformity with GAAP. 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.

2Q17 Operating-Basis (Non-GAAP) Results:

(Table presents summary results, dollars in millions, except per share amounts, or where otherwise noted)	2Q17			1Q17			Increase (Decrease)			2Q16			Increase (Decrease)
Total fee revenue(1)	$	2,324		$	2,268		2.5	%		$	2,130		9.1	%
Net interest income(2)	617			553			11.6			546			13.0
Total revenue(1)(2)	2,941			2,781			5.8			2,675			9.9
Provision for loan losses	3			(2		)	nm			4			(25.0	)
Total expenses	1,960			2,057			(4.7	)		1,828			7.2
Net income available to common shareholders	635			468			35.7			582			9.1
Earnings per common share:
Diluted earnings per share	1.67			1.21			38.0			1.46			14.4
Financial ratios:
Fee operating leverage(3)							719		bps				189		bps
Operating leverage(3)							1,047						272
Return on average common equity	13.7		%	10.4		%	330			12.3		%	140

^nm Not meaningful

⁽¹⁾ The 1Q17 operating-basis results included a pre-tax gain of approximately $30 million on the sale of State Street's interest in BFDS/IFDS, reflecting a change in our operating-basis presentation effective in 1Q17 to include gains/losses on sales of businesses. In 2Q16, under our historical presentation, operating-basis results excluded a $53 million pre-tax gain on the sale of WM/Reuters business, and such results have not been revised.

⁽²⁾ Beginning in 1Q17, management no longer presents discount accretion associated with former conduit securities as an operating-basis adjustment. Therefore, 2Q17 and 1Q17 GAAP and operating-basis results included $6 million and $5 million, respectively, of discount accretion.  In 2Q16, operating-basis net interest income excluded $15 million of discount accretion, and such results have not been revised.

⁽³⁾ The financial ratio represents the rate of growth of total operating-basis revenue (or fee revenue) less the rate of growth of operating-basis expenses relative to the preceding or prior year period, as the case may be.

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The following table reconciles select 2Q17 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.

2Q17 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	$	776	$	584	$	1.53
Tax-equivalent non-operating adjustments
Tax-advantaged investments (processing fees and other revenue)	89
Tax-exempt investment securities (net interest income)	42
Total	131
Other non-operating adjustments
Acquisition & restructuring costs (expenses)(1)	71		46		.13
Effect on income tax of non-operating adjustments	—		5		.01
Total	71		51		.14
Operating-basis	$	978	$	635	$	1.67

⁽¹⁾ Includes a pre-tax charge of $62 million ($40 million after tax or $0.11 per share) related to State Street Beacon.

Selected Financial Information and Metrics

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

The following table presents 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 and foreign exchange rates)	2Q17		1Q17		Increase (Decrease)		2Q16		Increase (Decrease)
Assets under custody and administration(1)(2)	$	31,037	$	29,833	4.0	%	$	27,786	11.7	%
Assets under management(2)(3)	2,606		2,561		1.8		2,301		13.3
Market Indices(4):
S&P 500® daily average	2,398		2,326		3.1		2,075		15.6
MSCI EAFE® daily average	1,856		1,749		6.1		1,648		12.6
MSCI® Emerging Markets daily average	993		927		7.1		819		21.2
HFRI Asset Weighted Composite® monthly average	1,339		1,323		1.2		1,250		7.1
Barclays Capital U.S. Aggregate Bond Index® period-end	2,021		1,993		1.4		2,028		(0.3	)
Barclays Capital Global Aggregate Bond Index® period-end	471		459		2.6		482		(2.3	)
Average Foreign Exchange Rate (Euro vs. USD)	1.101		1.065		3.4		1.129		(2.5	)
Average Foreign Exchange Rate (GBP vs. USD)	1.280		1.239		3.3		1.434		(10.7	)

⁽¹⁾ Includes assets under custody of $23,362 billion, $22,505 billion and $21,354 billion, as of 2Q17, 1Q17, and 2Q16, 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.

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Assets Under Management

The following table presents 2Q17 activity in assets under management, by product category.

(Dollars in billions)	Equity			Fixed-Income			Cash(2)			Multi-Asset-Class Solutions			Alternative Investments(3)			Total
Balance as of March 31, 2017	$	1,559		$	381		$	335		$	132		$	154		$	2,561
Long-term institutional inflows(1)	63			23			—			9			4			99
Long-term institutional outflows(1)	(78		)	(20		)	—			(12		)	(11		)	(121		)
Long-term institutional flows, net	(15		)	3			—			(3		)	(7		)	(22		)
ETF flows, net	(9		)	4			—			—			1			(4		)
Cash fund flows, net	—			—			(2		)	—			—			(2		)
Total flows, net	(24		)	7			(2		)	(3		)	(6		)	(28		)
Market appreciation	50			6			—			—			—			56
Foreign exchange impact	9			4			1			2			1			17
Total market/foreign exchange impact	59			10			1			2			1			73
Balance as of June 30, 2017	$	1,594		$	398		$	334		$	131		$	149		$	2,606

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

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

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

The following table presents year-to-date activity for the period ending June 30, 2017 of assets under management, by product category.

(Dollars in billions)	Equity			Fixed-Income			Cash(2)			Multi-Asset-Class Solutions			Alternative Investments(3)			Total
Balance as of December 31, 2016	$	1,474		$	378		$	333		$	126		$	157		$	2,468
Long-term institutional inflows(1)	134			45			—			21			12			212
Long-term institutional outflows(1)	(163		)	(45		)	—			(23		)	(29		)	(260		)
Long-term institutional flows, net	(29		)	—			—			(2		)	(17		)	(48		)
ETF flows, net	1			5			—			—			2			8
Cash fund flows, net	—			—			1			—			—			1
Total flows, net	(28		)	5			1			(2		)	(15		)	(39		)
Market appreciation	131			8			(2		)	3			4			144
Foreign exchange impact	17			7			2			4			3			33
Total market/foreign exchange impact	148			15			—			7			7			177
Balance as of June 30, 2017	$	1,594		$	398		$	334		$	131		$	149		$	2,606

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

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

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

5

Revenue

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

GAAP-Basis Revenue

(Dollars in millions)	2Q17		1Q17			Increase (Decrease)		2Q16			Increase (Decrease)
Servicing fees	$	1,339	$	1,296		3.3	%	$	1,239		8.1	%
Management fees	397		382			3.9		293			35.5
Trading services revenue:
Foreign exchange trading	178		164			8.5		157			13.4
Brokerage and other fees	111		111			—		110			0.9
Total trading services revenue	289		275			5.1		267			8.2
Securities finance revenue	179		133			34.6		156			14.7
Processing fees and other revenue	31		112			(72.3	)	98			(68.4	)
Total fee revenue	2,235		2,198			1.7		2,053			8.9
Net interest income	575		510			12.7		521			10.4
Gains (losses) related to investment securities, net	—		(40		)	nm		(1		)	nm
Total Revenue	$	2,810	$	2,668		5.3		$	2,573		9.2

^nm Not meaningful

Operating-Basis (Non-GAAP) Revenue

(Dollars in millions)	2Q17		1Q17			Increase (Decrease)		2Q16			Increase (Decrease)
Servicing fees	$	1,339	$	1,296		3.3	%	$	1,287		4.0	%
Management fees	397		382			3.9		288			37.8
Trading services revenue:
Foreign exchange trading	178		164			8.5		157			13.4
Brokerage and other fees	111		111			—		110			0.9
Total trading services revenue	289		275			5.1		267			8.2
Securities finance revenue	179		133			34.6		156			14.7
Processing fees and other revenue(1)	120		182			(34.1	)	132			(9.1	)
Total fee revenue(1)	2,324		2,268			2.5		2,130			9.1
Net interest income(2)	617		553			11.6		546			13.0
Gains (losses) related to investment securities, net	—		(40		)	nm		(1		)	nm
Total Revenue(1)(2)	$	2,941	$	2,781		5.8		$	2,675		9.9

^nm Not meaningful

⁽¹⁾ The 1Q17 operating-basis results included a pre-tax gain of approximately $30 million on the sale of State Street's interest in BFDS/IFDS, reflecting a change in our operating-basis presentation effective in 1Q17 to include gains/losses on sales of businesses. In 2Q16, under our historical presentation, operating-basis results excluded a $53 million pre-tax gain on the sale of WM/Reuters business, and such results have not been revised.

⁽²⁾ Beginning in 1Q17, management no longer presents discount accretion associated with former conduit securities as an operating-basis adjustment. Therefore, 2Q17 and 1Q17 GAAP and operating-basis results included $6 million and $5 million, respectively, of discount accretion.  In 2Q16, operating-basis net interest income excluded $15 million of discount accretion, and such results have not been revised.

The following highlights primary drivers of changes in our 2Q17 revenue for the noted periods, indicating differences between our GAAP-basis and operating-basis results as appropriate.

Servicing fees increased from 2Q16, primarily due to higher global equity markets and net new business. Compared to 1Q17, servicing fees increased, primarily due to higher global equity markets, the impact of the weaker U.S. dollar, and net new business.

6

Management fees increased from 2Q16, primarily due to an estimated $72 million from the acquired GEAM business, higher global equity markets, and higher revenue-yielding net ETF flows. Compared to 1Q17, management fees increased, primarily due to higher global equity markets.

Trading services revenue increased from 2Q16 and 1Q17. The increase from both periods primarily reflects higher foreign exchange client-related volumes.

Securities finance revenue increased from 2Q16, reflecting higher revenue from enhanced custody. Compared to 1Q17, securities finance revenue increased, primarily due to seasonality and growth in enhanced custody.

Processing fees and other revenue on a GAAP-basis decreased from 2Q16, primarily reflecting the gain on the sale of the WM/Reuters business in 2Q16 and unfavorable foreign exchange swap costs. Compared to 1Q17, processing fees and other revenue decreased, primarily due to the 1Q17 gain associated with the sale of BFDS/IFDS and unfavorable foreign exchange swap costs.

Processing fees and other revenueon an operating-basis decreased from 2Q16, primarily reflecting unfavorable foreign exchange swap costs.

Net interest income increased from 2Q16, primarily due to higher market interest rates in the U.S. and disciplined liability pricing as well as improved liability mix, partially offset by a smaller investment portfolio. Compared to 1Q17, net interest income increased primarily due to higher U.S. market interest rates, disciplined liability pricing, and improved liability mix.GAAP-basis net interest income does not include a taxable equivalent adjustment.Net interestmargin,calculated based on operating-basis, increased to 127 basis points in 2Q17 from 111 basis points in 2Q16 and 117 basis points in 1Q17.

7

Expenses

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

GAAP-Basis Expenses

(Dollars in millions)	2Q17			1Q17			Increase (Decrease)		2Q16			Increase (Decrease)
Compensation and employee benefits	$	1,071		$	1,166		(8.1	)%	$	989		8.3	%
Information systems and communications	283			287			(1.4	)	270			4.8
Transaction processing services	207			197			5.1		201			3.0
Occupancy	116			110			5.5		111			4.5
Acquisition and restructuring costs(1)	71			29			144.8		20			255.0
Other	283			297			(4.7	)	269			5.2
Total Expenses	$	2,031		$	2,086		(2.6	)	$	1,860		9.2
Effective income tax rate	20.1		%	14.0		%			12.9		%

⁽¹⁾ The 2Q16 and 1Q17 acquisition costs associated with the GEAM business acquired on July 1, 2016 were $9 millionand $12 million, respectively. In 2Q17, 1Q17 and 2Q16, the restructuring costs associated with State Street Beacon were $62 million, $16 million and $13 million, respectively.

Operating-Basis (Non-GAAP) Expenses

(Dollars in millions)	2Q17			1Q17			Increase (Decrease)		2Q16			Increase (Decrease)
Compensation and employee benefits	$	1,071		$	1,166		(8.1	)%	$	992		8.0	%
Information systems and communications	283			287			(1.4	)	270			4.8
Transaction processing services	207			197			5.1		201			3.0
Occupancy	116			110			5.5		111			4.5
Other	283			297			(4.7	)	254			11.4
Total Expenses	$	1,960		$	2,057		(4.7	)	$	1,828		7.2
Effective income tax rate	31.4		%	27.8		%			27.0		%

The following highlights primary drivers of changes in our 2Q17 expenses for the noted periods, indicating differences between our GAAP-basis and operating-basis results as appropriate.

Compensation and employee benefits expenses increased from 2Q16, primarily due to increased costs to support new business, higher incentive compensation and annual merit increases, costs related to the acquired GEAM business, and regulatory initiatives, partially offset by Beacon savings. Compared to 1Q17, compensation and employee benefits expenses decreased, primarily due to 1Q17 expenses associated with the seasonal deferred incentive compensation expense for retirement-eligible employees and payroll taxes as well as Beacon savings, partially offset by timing of incentive compensation and annual merit increases, increased costs to support new business, as well as the impact of the weaker U.S. dollar.

Information systems and communications expenses increased from 2Q16, primarily due to technology infrastructure costs, new business and State Street Beacon.

Transaction processing services expenses increased from 2Q16 and 1Q17. The increase from both periods reflects higher client volumes.

Occupancy expenses increased compared to 2Q16, primarily due to the acquired GEAM business and Beacon-related global footprint investments. Compared to 1Q17, occupancy expenses increased, primarily due to Beacon-related global footprint investments.

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Other expenses increased from 2Q16, primarily reflecting increased costs associated with the acquired GEAM business and higher regulatory and insurance expenses, partially offset by lower legal related costs. Other expenses decreased from 1Q17, primarily due to lower legal related costs.

2Q17acquisition and restructuring costs of $71 million increased from $20 million and $29 million compared to 2Q16 and 1Q17, respectively.

The 2Q17 GAAP-basis effective tax rate was 20.1%compared to 12.9% in 2Q16 and 14.0% in 1Q17. The 2Q17 rate reflects a decrease in alternative energy investments compared to 2Q16.  The 1Q17 rate included tax benefits for share-based compensation, and the disposition of BFDS. The 2Q17 operating-basis effective tax ratewas 31.4% compared to 27.0% in 2Q16 and 27.8% in 1Q17. The variance in the operating-basis effective tax rate from 2Q16 and 1Q17 are the same as the above GAAP-basis commentary.

9

Capital

The following table presents our regulatory capital ratios as of June 30, 2017 and March 31, 2017. 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. Unless otherwise noted, all capital ratios presented in the table and elsewhere in this News Release refer to State Street Corporation and not State Street Bank and Trust Company.

June 30, 2017(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	12.0	%	11.3	%	11.7	%	11.0	%
Tier 1 capital ratio	15.2		14.2		14.9		14.0
Total capital ratio	16.3		15.3		16.0		15.0
Tier 1 leverage ratio	7.0		7.0		6.9		6.9
March 31, 2017
Common equity tier 1 ratio	11.2	%	11.5	%	10.9	%	11.1	%
Tier 1 capital ratio	14.4		14.7		14.0		14.4
Total capital ratio	15.4		15.9		15.1		15.5
Tier 1 leverage ratio	6.8		6.8		6.7		6.7

	State Street						State Street Bank
As of June 30, 2017 (Dollars in millions)(1)	Transitional SLR			Fully Phased-In SLR(4)			Transitional SLR			Fully Phased-In SLR(4)
Tier 1 Capital	$	15,165		$	14,888		$	16,002		$	15,737
Total assets for SLR	243,692			243,487			240,734			240,536
Supplementary Leverage Ratio	6.2		%	6.1		%	6.6		%	6.5		%
As of March 31, 2017 (Dollars in millions)
Tier 1 Capital	$	14,475		$	14,176		$	15,492		$	15,206
Total assets for SLR	238,146			237,877			235,141			234,880
Supplementary Leverage Ratio	6.1		%	6.0		%	6.6		%	6.5		%

⁽¹⁾June 30, 2017 capital ratios are preliminary estimates.

⁽²⁾ The advanced approaches-based ratios (actual and estimated) included in this presentation reflect calculations and determinations with respect to our capital and _related matters, based on State Street and external data, quantitative formulae, statistical models, historical correlations and assumptions, collectively referred to as _“advanced systems.” Refer to the addendum included with this News Release for a description of the advanced approaches and a discussion of related risks.

⁽³⁾ Estimated pro-forma fully phased-in ratios as of June 30, 2017 and March 31, 2017 (fully phased in as of January 1, 2019, as per Basel III phase-in requirements for capital) reflect capital and total risk-weighted assets calculated under the Basel III final rule. Refer to the addendum included with this News Release for reconciliations of these estimated pro-forma fully phased-in ratios to our capital ratios calculated under the currently applicable regulatory requirements.

⁽⁴⁾ Estimated pro-forma fully phased-in SLRs as of June 30, 2017 and March 31, 2017 (fully phased-in as of January 1, 2018, as per the phase-in requirements of the SLR final rule) are preliminary estimates as calculated under the SLR final rule. Refer to the addendum included with this News Release for reconciliations of these estimated pro-forma fully phased-in SLRs to our SLRs under currently applicable regulatory requirements.

Investor Conference Call and Quarterly Website Disclosures

State Street will webcast an investor conference call today, Wednesday, July 26, 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 # 35907312.

10

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 # 35907312.

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

State Street intends to publish updates to its public disclosure regarding regulatory capital, as required by the Basel III final rule, 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 2Q17, State Street expects to publish its updates during the period beginning today and ending on or about August 3, 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 $31.0 trillion in assets under custody and administration and $2.6 trillion* in assets under management as of June 30, 2017, State Street operates globally in more than 100 geographic markets and employs 35,606 worldwide. For more information, visit State Street's website at www.statestreet.com.

* Assets under management include the assets of the SPDR^® Gold ETF and the SPDR^® Long Dollar Gold Trust ETF (approximately $34 billion as _of June 30, 2017), for which State Street Global Markets, LLC, an affiliate of SSgA, serves as the distribution agent.

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.

• 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 June 30, 2017. Distribution fees from the SPDR^® Gold ETF and the SPDR^® Long Dollar Gold Trust ETF are recorded in brokerage and other fee revenue and not in management fee revenue.

• 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 under our announced common stock purchase program, accelerated share repurchases, or transactions off market, and may be made under Rule

11

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.

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 July 26, 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 income, 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; and the impact of monetary and fiscal policy in the United States and internationally on prevailing rates of interest and currency exchange rates in the markets in which we provide services to our clients;

• the credit quality, credit-agency ratings and fair values of the securities in our investment securities portfolio, a deterioration or downgrade of which could lead to other-than-temporary impairment of 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

12

operational under regulatory guidelines and our ability to deploy deposits in a profitable manner consistent with our liquidity needs, regulatory requirements and risk profile;

• the manner and timing with which the Federal Reserve and other U.S. and foreign regulators implement or reevaluate changes to the regulatory framework applicable to our operations, including implementation or modification 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, compliance programs, and changes in governmental enforcement approaches to perceived failures to comply with regulatory or legal obligations;

• our resolution plan, submitted to the Federal Reserve and FDIC in June 2017, 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 filed in June 2017 or 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;

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

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

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

13

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

• the results of our review of our billing practices, including additional 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;

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

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

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

• the possibility that our clients will incur substantial losses in investment pools for which we act as agent, 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;

14

• 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;

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

• 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 2016 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.  

15

EX-99.2

Exhibit 99.2

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
June 30, 2017
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 Holdings by Asset Class	8
Investment Portfolio Non-U.S. Investments	9
Operating-Basis (Non-GAAP) Financial Information:
Reconciliations of Operating-Basis (Non-GAAP) Financial Information	10
Reconciliations of Constant Currency FX Impacts	14
Capital:
Regulatory Capital	16
Reconciliation of Tangible Common Equity Ratio	17
Reconciliations of Fully Phased-In Capital Ratios	18
Reconciliations of Supplementary Leverage Ratios	21

This financial information should be read in conjunction with State Street's news release dated July 26, 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)	1Q16			2Q16			3Q16			4Q16			1Q17			2Q17			2Q17 vs. 2Q16			2Q17 vs. 1Q17			2Q16			2Q17			YTD 2Q17 vs. YTD 2Q16
Revenue:
Fee revenue	$	1,970		$	2,053		$	2,079		$	2,014		$	2,198		$	2,235		8.9	%		1.7	%		$	4,023		$	4,433		10.2	%
Net interest income	512			521			537			514			510			575			10.4			12.7			1,033			1,085			5.0
Gains (losses) from sales of available-for-sale securities, net	2			(1		)	6			2			(40		)	—			nm			nm			1			(40		)	nm
Losses from other-than-temporary impairment, net	—			—			(2		)	—			—			—			—			—			—			—			—
Total revenue	2,484			2,573			2,620			2,530			2,668			2,810			9.2			5.3			5,057			5,478			8.3
Provision for loan losses	4			4			—			2			(2		)	3			(25.0	)		nm			8			1			(87.5	)
Total expenses	2,050			1,860			1,984			2,183			2,086			2,031			9.2			(2.6	)		3,910			4,117			5.3
Income before income tax expense	430			709			636			345			584			776			9.4			32.9			1,139			1,360			19.4
Income tax expense (benefit)	62			92			72			(248		)	82			156			69.6			90.2			154			238			54.5
Net income (loss) from non-controlling interest	—			2			(1		)	—			—			—			nm			—			2			—			nm
Net income	368			619			563			593			502			620			0.2			23.5			987			1,122			13.7
Net income available to common shareholders	$	319		$	585		$	507		$	557		$	446		$	584		(0.2	)		30.9			$	904		$	1,030		13.9
Diluted earnings per common share	$	.79		$	1.47		$	1.29		$	1.43		$	1.15		$	1.53		4.1			33.0			$	2.25		$	2.69		19.6
Average diluted common shares outstanding (in thousands)	403,615			398,847			393,212			389,046			386,417			380,915			(4.5	)		(1.4	)		401,113			383,489			(4.4	)
Cash dividends declared per common share	$	.34		$	.34		$	.38		$	.38		$	.38		$	.38		11.8			—			$	.68		$	.76		11.8
Closing price per share of common stock (as of quarter end)	58.52			53.92			69.63			77.72			79.61			89.73			66.4			12.7			53.92			89.73			66.4
Ratios:
Return on average common equity	6.8		%	12.4		%	10.6		%	12.1		%	9.9		%	12.6		%	20		bps	270		bps	9.6		%	11.3		%	170		bps
Pre-tax operating margin	17.3			27.6			24.3			13.6			21.9			27.6			—			570			22.5			24.8			230
Common equity tier 1 risk-based capital(1)	12.3			12.0			12.3			11.7			11.2			12.0			—			80			12.0			12.0			—
Tier 1 risk-based capital(1)	14.9			15.0			15.4			14.8			14.4			15.2			20			80			15.0			15.2			20
Total risk-based capital(1)	17.1			17.1			17.6			16.0			15.4			16.3			(80	)		90			17.1			16.3			(80	)
Tier 1 leverage(1)	6.9			7.0			6.8			6.5			6.8			7.0			—			20			7.0			7.0			—
Tangible common equity(2)	6.7			6.7			6.5			6.4			6.6			6.8			10			20			6.7			6.8			10
At quarter-end:
Assets under custody and administration (in trillions)(3)	$	26.94		$	27.79		$	29.18		$	28.77		$	29.83		$	31.04		11.7	%		4.1	%		$	27.79		$	31.04		11.7	%
Asset under management (in trillions)	2.30			2.30			2.45			2.47			2.56			2.61			13.5			2.0			2.30			2.61			13.5
Total assets	243,685			255,386			256,140			242,698			236,802			238,274			(6.7	)		0.6			255,386			238,274			(6.7	)
Investment securities	102,298			103,121			99,888			97,167			94,639			95,255			(7.6	)		0.7			103,121			95,255			(7.6	)
Deposits	185,516			193,130			198,766			187,163			183,465			181,416			(6.1	)		(1.1	)		193,130			181,416			(6.1	)
Long-term debt	10,323			11,924			11,834			11,430			11,394			11,737			(1.6	)		3.0			11,924			11,737			(1.6	)
Total shareholders' equity	21,496			22,073			22,150			21,219			21,294			22,068			—			3.6			22,073			22,068			—
(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 Regulatory Capital within this package for additional information about our regulatory capital ratios for each period.
(2) Tangible common equity ratio is a non-GAAP measure. Refer to the Reconciliation of Tangible Common Equity Ratio within this package for additional information.
(3) Included assets under custody of $20.79 trillion, $21.35 trillion, $21.91 trillion, $21.73 trillion, $22.51 trillion and $23.36 trillion as of March 31, 2016, June 30, 2016, September 30, 2016, December 31, 2016, March 31, 2017 and June 30, 2017, respectively.
nm Not meaningful

1

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED RESULTS OF OPERATIONS
	Quarters																		% Change				Year-to-Date						% Change
(Dollars in millions, except per share amounts, or where otherwise noted)	1Q16			2Q16			3Q16			4Q16			1Q17			2Q17			2Q17 vs. 2Q16		2Q17 vs. 1Q17		2Q16			2Q17			YTD 2Q17 vs. YTD 2Q16
Reported Results
Fee revenue:
Servicing fees	$	1,242		$	1,239		$	1,303		$	1,289		$	1,296		$	1,339		8.1	%	3.3	%	$	2,481		$	2,635		6.2	%
Management fees	270			293			368			361			382			397			35.5		3.9		563			779			38.4
Trading services:
Direct sales and trading	90			87			94			115			98			100			14.9		2.0		177			198			11.9
Indirect foreign exchange trading(1)	66			70			65			67			66			78			11.4		18.2		136			144			5.9
Total foreign exchange trading	156			157			159			182			164			178			13.4		8.5		313			342			9.3
Electronic foreign exchange services	44			43			41			41			41			39			(9.3	)	(4.9	)	87			80			(8.0	)
Other trading, transition management and brokerage	72			67			67			70			70			72			7.5		2.9		139			142			2.2
Total brokerage and other trading services	116			110			108			111			111			111			0.9		—		226			222			(1.8	)
Total trading services	272			267			267			293			275			289			8.2		5.1		539			564			4.6
Securities finance	134			156			136			136			133			179			14.7		34.6		290			312			7.6
Processing fees and other	52			98			5			(65		)	112			31			(68.4	)	(72.3	)	150			143			(4.7	)
Total fee revenue	1,970			2,053			2,079			2,014			2,198			2,235			8.9		1.7		4,023			4,433			10.2
Net interest income:
Interest income	629			620			647			616			650			700			12.9		7.7		1,249			1,350			8.1
Interest expense	117			99			110			102			140			125			26.3		(10.7	)	216			265			22.7
Net interest income	512			521			537			514			510			575			10.4		12.7		1,033			1,085			5.0
Gains (losses) related to investment securities, net:
Gains (losses) from sales of available-for-sale securities, net	2			(1		)	6			2			(40		)	—							1			(40		)
Losses from other-than-temporary impairment, net	—			—			(2		)	—			—			—							—			—
Gains (losses) related to investment securities, net	2			(1		)	4			2			(40		)	—			nm		nm		1			(40		)	nm
Total revenue	2,484			2,573			2,620			2,530			2,668			2,810			9.2		5.3		5,057			5,478			8.3
Provision for loan losses	4			4			—			2			(2		)	3			(25.0	)	nm		8			1			(87.5	)
Expenses:
Compensation and employee benefits	1,107			989			1,013			1,244			1,166			1,071			8.3		(8.1	)	2,096			2,237			6.7
Information systems and communications	272			270			285			278			287			283			4.8		(1.4	)	542			570			5.2
Transaction processing services	200			201			200			199			197			207			3.0		5.1		401			404			0.7
Occupancy	113			111			107			109			110			116			4.5		5.5		224			226			0.9
Acquisition and restructuring costs	104			20			42			43			29			71			255.0		144.8		124			100			(19.4	)
Other	254			269			337			310			297			283			5.2		(4.7	)	523			580			10.9
Total expenses	2,050			1,860			1,984			2,183			2,086			2,031			9.2		(2.6	)	3,910			4,117			5.3
Income before income tax expense	430			709			636			345			584			776			9.4		32.9		1,139			1,360			19.4
Income tax expense (benefit)	62			92			72			(248		)	82			156			69.6		90.2		154			238			54.5
Net income (loss) from non-controlling interest	—			2			(1		)	—			—			—			nm		—		2			—			nm
Net income	$	368		$	619		$	563		$	593		$	502		$	620		0.2		23.5		$	987		$	1,122		13.7
Effective tax rate	14.4		%	12.9		%	11.4		%	(72.3		)%	14.0		%	20.1		%					13.5		%	17.5		%

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)	1Q16			2Q16			3Q16			4Q16			1Q17			2Q17			2Q17 vs. 2Q16			2Q17 vs. 1Q17			2Q16			2Q17			YTD 2Q17 vs. YTD 2Q16
Adjustments to net income:
Dividends on preferred stock	$	(49	)	$	(33	)	$	(55	)	$	(36	)	$	(55	)	$	(36	)	9.1	%		(34.5	)%		$	(82	)	$	(91	)	11.0	%
Earnings allocated to participating securities	—			(1		)	(1		)	—			(1		)	—			nm			nm			(1		)	(1		)	—
Net income available to common shareholders	$	319		$	585		$	507		$	557		$	446		$	584		(0.2	)		30.9			$	904		$	1,030		13.9
Earnings per common share:
Basic	$	.80		$	1.48		$	1.31		$	1.45		$	1.17		$	1.56		5.4			33.3			$	2.28		$	2.72		19.3
Diluted	.79			1.47			1.29			1.43			1.15			1.53			4.1			33.0			2.25			2.69			19.6
Average common shares outstanding:
Basic	399,421			394,160			388,358			384,115			381,224			375,395			(4.8	)		(1.5	)		396,790			378,293			(4.7	)
Diluted	403,615			398,847			393,212			389,046			386,417			380,915			(4.5	)		(1.4	)		401,113			383,489			(4.4	)
Cash dividends declared per common share	$	.34		$	.34		$	.38		$	.38		$	.38		$	.38		11.8			—			$	.68		$	.76		11.8
Closing price per share of common stock (as of quarter end)	58.52			53.92			69.63			77.72			79.61			89.73			66.4			12.7			53.92			89.73			66.4
Financial ratios:
Return on average common equity	6.8		%	12.4		%	10.6		%	12.1		%	9.9		%	12.6		%	20		bps	270		bps	9.6		%	11.3		%	170		bps
Pre-tax operating margin	17.3			27.6			24.3			13.6			21.9			27.6			—			570			22.5			24.8			230
After-tax margin	12.8			22.7			19.4			22.0			16.7			20.8			(190	)		410			17.9			18.8			90
Common dividend payout ratio	42.5			22.7			28.9			26.1			32.1			24.4			7.5	%		(24.0	)%		29.7			27.7			(6.7	)%
(1) We calculate revenue for indirect foreign exchange using an attribution methodology. This methodology takes into consideration estimated effective mark-ups/downs and observed client volumes. Direct sales and trading revenue is total foreign exchange trading revenue excluding the revenue attributed to indirect foreign exchange.
nm  Not meaningful

3

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
CONSOLIDATED STATEMENT OF CONDITION
	As of Quarter End																		% Change
(Dollars in millions, except per share amounts)	1Q16			2Q16			3Q16			4Q16			1Q17			2Q17			2Q17 vs. 2Q16		2Q17 vs. 1Q17
Assets:
Cash and due from banks	$	3,735		$	4,673		$	3,490		$	1,314		$	2,909		$	3,156		(32.5	)%	8.5	%
Interest-bearing deposits with banks	65,032			75,169			79,090			70,935			66,789			63,617			(15.4	)	(4.7	)
Securities purchased under resale agreements	3,722			2,010			2,442			1,956			2,181			3,172			57.8		45.4
Trading account assets	873			890			1,063			1,024			945			896			0.7		(5.2	)
Investment securities:
Investment securities available-for-sale	71,086			72,735			71,520			61,998			58,810			59,025			(18.8	)	0.4
Investment securities held-to-maturity(1)	31,212			30,386			28,368			35,169			35,829			36,230			19.2		1.1
Total investment securities	102,298			103,121			99,888			97,167			94,639			95,255			(7.6	)	0.7
Loans and leases, net(2)	19,140			19,788			21,451			19,704			22,486			24,307			22.8		8.1
Premises and equipment, net(3)	1,949			1,994			2,042			2,062			2,101			2,137			7.2		1.7
Accrued interest and fees receivable	2,371			2,399			2,594			2,644			2,690			2,805			16.9		4.3
Goodwill	5,733			5,671			5,911			5,814			5,855			5,945			4.8		1.5
Other intangible assets	1,749			1,682			1,849			1,750			1,710			1,693			0.7		(1.0	)
Other assets	37,083			37,989			36,320			38,328			34,497			35,291			(7.1	)	2.3
Total assets	$	243,685		$	255,386		$	256,140		$	242,698		$	236,802		$	238,274		(6.7	)	0.6
Liabilities:
Deposits:
Non-interest-bearing	$	54,248		$	57,268		$	60,545		$	59,397		$	56,786		$	50,957		(11.0	)	(10.3	)
Interest-bearing -- U.S.	31,159			33,060			33,767			30,911			26,746			24,438			(26.1	)	(8.6	)
Interest-bearing -- Non-U.S.	100,109			102,802			104,454			96,855			99,933			106,021			3.1		6.1
Total deposits	185,516			193,130			198,766			187,163			183,465			181,416			(6.1	)	(1.1	)
Securities sold under repurchase agreements	4,224			4,350			4,364			4,400			4,003			3,856			(11.4	)	(3.7	)
Other short-term borrowings	1,706			1,712			1,413			1,585			1,177			1,465			(14.4	)	24.5
Accrued expenses and other liabilities	20,388			22,166			17,582			16,901			15,469			17,732			(20.0	)	14.6
Long-term debt	10,323			11,924			11,834			11,430			11,394			11,737			(1.6	)	3.0
Total liabilities	222,157			233,282			233,959			221,479			215,508			216,206			(7.3	)	0.3
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			—		—
Series D, 7,500 shares issued and outstanding	742			742			742			742			742			742			—		—
Series E, 7,500 shares issued and outstanding	728			728			728			728			728			728			—		—
Series F, 7,500 shares issued and outstanding	742			742			742			742			742			742			—		—
Series G, 5,000 shares issued and outstanding	—			493			493			493			493			493			—		—
Common stock, $1 par, 750,000,000 shares authorized(4)	504			504			504			504			504			504			—		—
Surplus	9,739			9,767			9,778			9,782			9,796			9,803			0.4		0.1
Retained earnings	16,233			16,686			17,047			17,459			17,762			18,202			9.1		2.5
Accumulated other comprehensive income (loss)	(964		)	(997		)	(993		)	(2,040		)	(1,805		)	(1,270		)	27.4		(29.6	)
Treasury stock, at cost(5)	(6,719		)	(7,083		)	(7,382		)	(7,682		)	(8,159		)	(8,367		)	18.1		2.5
Total shareholders' equity	21,496			22,073			22,150			21,219			21,294			22,068			—		3.6
Non-controlling interest-equity	32			31			31			—			—			—			nm		—
Total equity	21,528			22,104			22,181			21,219			21,294			22,068			(0.2	)	3.6
Total liabilities and equity	$	243,685		$	255,386		$	256,140		$	242,698		$	236,802		$	238,274		(6.7	)	0.6
nm Not meaningful
	1Q16			2Q16			3Q16			4Q16			1Q17			2Q17
(1) Fair value of investment securities held-to-maturity	$	31,555		$	30,895		$	28,780		$	34,994		$	35,694		$	36,169
(2) Allowance for loan losses	47			51			51			53			51			54
(3) Accumulated depreciation for premises and equipment	4,929			3,164			3,271			3,333			3,463			3,611
(4) Common stock shares issued	503,879,642			503,879,642			503,879,642			503,879,642			503,879,642			503,879,642
(5) Treasury stock shares	108,316,401			114,229,535			118,309,341			121,940,502			127,520,264			129,773,003

4

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
AVERAGE AND PERIOD-END BALANCE SHEET TRENDS
	Quarters												% Change
Average Balance Sheet Mix	1Q16		2Q16		3Q16		4Q16		1Q17		2Q17		2Q17 vs. 2Q16		2Q17 vs. 1Q17
Investment securities and short-duration instruments	78.5	%	78.4	%	78.7	%	78.2	%	78.3	%	77.8	%	(0.8	)%	(0.6	)%
Loans and leases	8.3		8.1		8.0		8.6		9.2		9.4		16.0		2.2
Non-interest-earning assets	13.2		13.5		13.3		13.2		12.5		12.8		(5.2	)	2.4
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Client funds bearing interest	59.0	%	60.2	%	60.3	%	58.8	%	59.9	%	60.7	%	0.8		1.3
Client funds not bearing interest	20.1		18.3		19.1		20.5		20.2		18.9		3.3		(6.4	)
Other non-interest-bearing liabilities	6.3		7.0		6.0		6.4		4.8		5.6		(20.0	)	16.7
Long-term debt and common shareholders' equity	13.4		13.1		13.2		12.9		13.6		13.4		2.3		(1.5	)
Preferred shareholders' equity	1.2		1.4		1.4		1.4		1.5		1.4		—		(6.7	)
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

(Dollars in millions)	Quarters												% Change
Average Asset Backed Securities	1Q16		2Q16		3Q16		4Q16		1Q17		2Q17		2Q17 vs. 2Q16		2Q17 vs. 1Q17
Fixed	$	2,045	$	2,023	$	1,904	$	1,702	$	1,285	$	1,137	(43.8	)%	(11.5	)%
Floating	24,795		24,313		22,988		22,470		21,324		22,230		(8.6	)	4.2
Total	$	26,840	$	26,336	$	24,892	$	24,172	$	22,609	$	23,367

(Dollars in millions)	Quarters																	% Change
Investment Securities - Appreciation (Depreciation)	1Q16			2Q16			3Q16		4Q16			1Q17			2Q17			2Q17 vs. 2Q16		2Q17 vs. 1Q17
Held-to-maturity:
Amortized cost (book value)	$	31,212		$	30,386		$	28,368	$	35,169		$	35,829		$	36,230		19.2	%	1.1	%
Fair value	31,555			30,895			28,780		34,994			35,694			36,169			17.1		1.3
Appreciation (depreciation)	343			509			412		(175		)	(135		)	(61		)	(112.0	)	(54.8	)
Available-for-sale:
Amortized cost	70,366			71,720			70,795		61,912			58,658			58,714			(18.1	)	0.1
Fair value (book value)	71,086			72,735			71,520		61,998			58,810			59,025			(18.8	)	0.4
Appreciation (depreciation)	720			1,015			725		86			152			311			(69.4	)	104.6
Pre-tax appreciation (depreciation) related to securities available-for-sale transferred to held-to-maturity	(193		)	(197		)	35		(194		)	(41		)	(35		)	(82.2	)	(14.6	)
Net pre-tax appreciation (depreciation) related to investment securities portfolio	870			1,327			1,172		(283		)	(24		)	215			(83.8	)	(995.8	)
Net after-tax appreciation (depreciation) related to investment securities portfolio	522			796			703		(170		)	(14		)	129			(83.8	)	(1,021.4	)

(Dollars in billions)	Quarters												% Change
Securities on Loan	1Q16		2Q16		3Q16		4Q16		1Q17		2Q17		2Q17 vs. 2Q16		2Q17 vs. 1Q17
Average securities on loan	$	334	$	348	$	347	$	353	$	368	$	384	10.3	%	4.3	%
End-of-period securities on loan	341		348		348		364		378		376		8.0		(0.5	)

5

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
ASSETS UNDER CUSTODY AND ADMINISTRATION
	Quarters												% Change
(Dollars in billions)	1Q16		2Q16		3Q16		4Q16		1Q17		2Q17		2Q17 vs. 2Q16		2Q17 vs. 1Q17
Assets Under Custody and Administration
By Product Classification:
Mutual funds	$	6,728	$	6,734	$	6,906	$	6,841	$	7,033	$	7,123	5.8	%	1.3	%
Collective funds, including ETFs	7,000		7,234		7,541		7,501		8,024		8,560		18.3		6.7
Pension products	5,197		5,496		5,671		5,584		5,775		5,937		8.0		2.8
Insurance and other products	8,018		8,322		9,060		8,845		9,001		9,417		13.2		4.6
Total Assets Under Custody and Administration	$	26,943	$	27,786	$	29,178	$	28,771	$	29,833	$	31,037	11.7		4.0
By Financial Instrument:
Equities	$	14,433	$	14,960	$	16,012	$	15,833	$	16,651	$	17,304	15.7		3.9
Fixed-income	9,199		9,530		9,891		9,665		9,786		10,117		6.2		3.4
Short-term and other investments	3,311		3,296		3,275		3,273		3,396		3,616		9.7		6.5
Total Assets Under Custody and Administration	$	26,943	$	27,786	$	29,178	$	28,771	$	29,833	$	31,037	11.7		4.0
By Geographic Location(1):
North America	$	20,505	$	21,072	$	21,561	$	21,544	$	22,361	$	23,020	9.2		2.9
Europe/Middle East/Africa	5,159		5,356		6,107		5,734		5,979		6,464		20.7		8.1
Asia/Pacific	1,279		1,358		1,510		1,493		1,493		1,553		14.4		4.0
Total Assets Under Custody and Administration	$	26,943	$	27,786	$	29,178	$	28,771	$	29,833	$	31,037	11.7		4.0
Assets Under Custody(2)
By Product Classification:
Mutual funds	$	6,363	$	6,361	$	6,461	$	6,395	$	6,499	$	6,577	3.4		1.2
Collective funds, including ETFs	5,589		5,788		6,080		6,100		6,601		7,107		22.8		7.7
Pension products	4,673		4,947		5,107		5,039		5,212		5,399		9.1		3.6
Insurance and other products	4,163		4,258		4,262		4,191		4,193		4,279		0.5		2.1
Total Assets Under Custody	$	20,788	$	21,354	$	21,910	$	21,725	$	22,505	$	23,362	9.4		3.8
By Geographic Location(1):
North America	$	16,420	$	16,756	$	17,074	$	17,083	$	17,747	$	18,223	8.8		2.7
Europe/Middle East/Africa	3,422		3,584		3,698		3,508		3,635		3,969		10.7		9.2
Asia/Pacific	946		1,014		1,138		1,134		1,123		1,170		15.4		4.2
Total Assets Under Custody	$	20,788	$	21,354	$	21,910	$	21,725	$	22,505	$	23,362	9.4		3.8
(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)	1Q16		2Q16		3Q16		4Q16		1Q17		2Q17		2Q17 vs. 2Q16		2Q17 vs. 1Q17
Assets Under Management
By Asset Class and Investment Approach:
Equity:
Active	$	32	$	32	$	70	$	73	$	77	$	82	156.3	%	6.5	%
Passive	1,295		1,275		1,340		1,401		1,482		1,512		18.6		2.0
Total Equity	1,327		1,307		1,410		1,474		1,559		1,594		22.0		2.2
Fixed-Income:
Active	17		17		73		70		69		71		317.6		2.9
Passive	310		318		318		308		312		327		2.8		4.8
Total Fixed-Income	327		335		391		378		381		398		18.8		4.5
Cash(1)	381		380		351		333		335		334		(12.1	)	(0.3	)
Multi-Asset-Class Solutions:
Active	17		17		19		19		19		18		5.9		(5.3	)
Passive	92		100		106		107		113		113		13.0		—
Total Multi-Asset-Class Solutions	109		117		125		126		132		131		12.0		(0.8	)
Alternative Investments(2):
Active	18		18		29		28		26		27		50.0		3.8
Passive	134		144		140		129		128		122		(15.3	)	(4.7	)
Total Alternative Investments	152		162		169		157		154		149		(8.0	)	(3.2	)
Total Assets Under Management	$	2,296	$	2,301	$	2,446	$	2,468	$	2,561	$	2,606	13.3		1.8
By Geographic Location(3):
North America	$	1,491	$	1,501	$	1,641	$	1,691	$	1,772	$	1,802	20.1		1.7
Europe/Middle East/Africa	496		492		495		482		486		496		0.8		2.1
Asia/Pacific	309		308		310		295		303		308		—		1.7
Total Assets Under Management	$	2,296	$	2,301	$	2,446	$	2,468	$	2,561	$	2,606	13.3		1.8
(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 and SPDR® Long Dollar Gold Trust Fund. State Street is not the investment manager for SPDR® Gold Fund and SPDR® Long Dollar Gold Trust Fund, but acts as marketing agent.
(3) Geographic mix is based on client location or fund management location.
Exchange-Traded Funds(1)
By Asset Class:
Alternative investments	$	45	$	54	$	54	$	42	$	46	$	46	(14.8	)%	—	%
Cash	3		2		2		2		2		2		—		—
Equity	349		348		370		426		457		460		32.2		0.7
Fixed-income	46		48		52		51		53		58		20.8		9.4
Total Exchange-Traded Funds	$	443	$	452	$	478	$	521	$	558	$	566	25.2		1.4
(1)  Exchange-traded funds are a component of assets under management presented above.

7

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO HOLDINGS BY ASSET CLASS
June 30, 2017	Ratings
(Dollars in billions, or where otherwise noted)	UST/AGY			AAA			AA			A			BBB			<BBB			NR			Book Value(1)		Book Value (% Total)		Net Unrealized After-tax MTM Gain/(Loss) (In millions)(2)			Fixed Rate/ Floating Rate
Government & agency securities	72		%	15		%	9		%	4		%	—		%	—		%	—		%	$	25.0	26.3	%	$	23		98% / 2%
Asset-backed securities	—			70			19			3			5			3			—			23.7		24.9		50			5% / 95%
Student loans	—			40			37			2			15			6			—			8.6		36.3		(2		)
Credit cards	—			100			—			—			—			—			—			3.1		13.1		(9		)
Auto & equipment	—			84			12			4			—			—			—			2.1		8.9		3
Non-U.S. residential mortgage backed securities	—			86			9			3			—			2			—			8.0		33.7		57
Collateralized loan obligation	—			100			—			—			—			—			—			1.2		5.1		4
Sub-prime	—			10			16			18			4			52			—			0.3		1.2		(4		)
Other	—			27			73			—			—			—			—			0.4		1.7		1
Mortgage-backed securities	95			4			—			—			—			1			—			22.4		23.6		(123		)	92% / 8%
Agency MBS	100			—			—			—			—			—			—			21.2		94.6		(134		)
Non-Agency MBS	—			74			1			1			5			18			1			1.2		5.4		11
CMBS	46			54			—			—			—			—			—			4.8		5.1		(12		)	68% / 32%
Corporate bonds	—			—			13			50			36			1			—			4.1		4.3		—			91% / 9%
Covered bonds	—			100			—			—			—			—			—			4.0		4.2		14			13% / 87%
Municipal bonds	—			33			62			5			—			—			—			8.0		8.4		157			100% / 0%
Clipper tax-exempt bonds/other	—			43			40			14			1			—			2			3.0		3.2		20			33% / 67%
Total Portfolio	44		%	33		%	14		%	5		%	3		%	1		%	—		%	$	95.0	100.0	%	$	129		66% / 34%
Book Value	$	41.5		$	31.5		$	13.4		$	4.6		$	2.9		$	1.0		$	0.1		$	95.0
(1) Portfolio amounts are expressed at book value; book value includes the amortized cost of transferred securities at the time they were transferred.
(2) At June 30, 2017 the after-tax unrealized MTM gain/(loss) includes after-tax unrealized gain on securities available-for-sale of $187 million, after-tax unrealized loss on securities held-to-maturity of $(37) million and after-tax unrealized loss primarily related to securities previously transferred from available-for-sale to held to maturity of $(21) million.

8

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
INVESTMENT PORTFOLIO NON-U.S. INVESTMENTS
				Book Value (In billions)
June 30, 2017	Book Value (In billions)		Average Rating	Gov't/Agency(1)		ABS FRMBS		ABS All Other		Corporate Bonds		Covered Bonds		Other
United Kingdom	$	6.0	AAA	$	—	$	3.6	$	1.4	$	0.3	$	0.7	$	—
Australia	4.9		AAA	0.8		1.9		0.3		0.3		0.6		1.0
Canada	3.7		AAA	2.5		—		—		0.1		1.1		—
Netherlands	1.6		AAA	—		1.3		—		0.2		0.1		—
France	1.6		AA	0.8		0.1		0.2		0.2		0.3		—
Japan	1.1		A	1.1		—		—		—		—		—
Italy	0.9		AA	0.1		0.5		0.3		—		—		—
Belgium	0.8		AA	0.5		0.1		—		—		0.2		—
Germany	0.8		AAA	0.1		—		0.7		—		—		—
Hong Kong	0.6		AA	0.6		—		—		—		—		—
Spain	0.6		AA	—		0.3		0.3		—		—		—
Norway	0.5		AAA	—		—		—		—		0.5		—
Sweden	0.4		AAA	—		—		—		0.1		0.3		—
Singapore	0.3		AAA	0.3		—		—		—		—		—
Other	0.8		AA	0.2		0.2		0.1		0.1		0.2		—
Total Non-U.S. Investments(2)	$	24.6		$	7.0	$	8.0	$	3.3	$	1.3	$	4.0	$	1.0
U.S. Investments	70.4
Total Portfolio	$	95.0
(1) Sovereign debt is reflected in the government agency column.
(2) Country of collateral used except for corporates where country of issuer is used.

9

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 additional meaningful analysis and comparisons of trends with respect to State Street’s business operations from period to period, as well as information (such as capital ratios calculated under regulatory standards scheduled to be effective in the future or other standards) that management also uses in evaluating State Street’s business and activities.

    Our operating-basis financial results adjust our GAAP-basis financial results to both: (1) exclude the impact of revenue and expenses outside of State Street’s normal course of business, such as restructuring charges; and (2) present revenue from non-taxable sources, such as interest income from tax-exempt investment securities and processing fees and other revenue associated with tax-advantaged adjustments, on a fully taxable-equivalent basis. Management believes that operating-basis financial information facilitates an investor's further understanding and analysis of State Street's financial performance and trends, including providing additional insight into our underlying margin and profitability, in addition to financial information prepared and reported in conformity with GAAP. The tax-equivalent adjustments allow for more meaningful comparisons of yields and margins on assets and the evaluation of investment opportunities with different tax profiles.

    Beginning with the first quarter of 2017, we are simplifying our operating-basis presentation of our financial results and will no longer exclude, as part of the non-ordinary course adjustment, the effects of gains/losses on sales of businesses or the discount accretion associated with former conduit securities. In the first quarter of 2017, operating-basis results included a pre-tax gain of approximately $30 million on the sale of our transfer agency joint venture interests. In the first and second quarters of 2017, operating-basis results included $5 million and $6 million, respectively, of discount accretion. These changes resulted in total increases in operating-basis revenue of $35 million and $6 million in the first and second quarters of 2017, respectively, relative to our historical operating-basis presentation. Note that in the second quarter of 2016, operating-basis results excluded a pre-tax gain of approximately $53 million on the sale of the WM/Reuters business. We believe that that these changes to our operating-basis presentation simplify the overall presentation of our financial results, making them easier to understand, while, overall, continuing to facilitate a useful and helpful additional understanding of our financial results.

    We also believe 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 may present 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.

    We provide 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, is unable to provide a reconciliation of our operating-basis forward-looking financial estimates and expectations to a GAAP-basis presentation.

    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.

10

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)		1Q16			2Q16			3Q16			4Q16			1Q17			2Q17			2Q17 vs. 2Q16			2Q17 vs. 1Q17			2Q16			2Q17			YTD 2Q17 vs. YTD 2Q16
Total Revenue(1)(2)(3):
Total revenue, GAAP-basis		$	2,484		$	2,573		$	2,620		$	2,530		$	2,668		$	2,810		9.2	%		5.3	%		$	5,057		$	5,478		8.3	%
	Adjustment to processing fees and other revenue (see below)	63			34			134			186			70			89									97			159
	Adjustment to net interest income (see below)	27			25			—			33			43			42									52			85
	Adjustment to servicing and management fee revenue (see below)	—			43			—			—			—			—									43			—
Total revenue, operating-basis		$	2,574		$	2,675		$	2,754		$	2,749		$	2,781		$	2,941		9.9			5.8			$	5,249		$	5,722		9.0
Fee Revenue(1)(3):
Total fee revenue, GAAP-basis		$	1,970		$	2,053		$	2,079		$	2,014		$	2,198		$	2,235		8.9			1.7			$	4,023		$	4,433		10.2
	Tax-equivalent adjustment associated with tax-advantaged investments	63			87			134			186			70			89									150			159
	Gain on sale of WM/Reuters Business	—			(53		)	—			—			—			—									(53		)	—
	Expense billing matter, net	—			43			—			—			—			—									43			—
Total fee revenue, operating-basis		$	2,033		$	2,130		$	2,213		$	2,200		$	2,268		$	2,324		9.1			2.5			$	4,163		$	4,592		10.3
Servicing Fees:
Total servicing fees, GAAP-basis		$	1,242		$	1,239		$	1,303		$	1,289		$	1,296		$	1,339		8.1			3.3			$	2,481		$	2,635		6.2
	Expense billing matter	—			48			—			—			—			—									48			—
Total servicing fees, operating-basis		$	1,242		$	1,287		$	1,303		$	1,289		$	1,296		$	1,339		4.0			3.3			$	2,529		$	2,635		4.2
Management Fees:
Total management fees, GAAP-basis		$	270		$	293		$	368		$	361		$	382		$	397		35.5			3.9			$	563		$	779		38.4
	Expense billing matter	—			(5		)	—			—			—			—									(5		)	—
Total management fees, operating-basis		$	270		$	288		$	368		$	361		$	382		$	397		37.8			3.9			$	558		$	779		39.6
Processing Fees and Other Revenue(1):
Total processing fees and other revenue, GAAP-basis		$	52		$	98		$	5		$	(65	)	$	112		$	31		(68.4	)		(72.3	)		$	150		$	143		(4.7	)
	Tax-equivalent adjustment associated with tax-advantaged investments	63			87			134			186			70			89									150			159
	Gain on sale of WM/Reuters Business	—			(53		)	—			—			—			—									(53		)	—
Total processing fees and other revenue, operating-basis		$	115		$	132		$	139		$	121		$	182		$	120		(9.1	)		(34.1	)		$	247		$	302		22.3
Net Interest Income & Net Interest Margin(2)(4):
Net interest income, GAAP-basis		$	512		$	521		$	537		$	514		$	510		$	575		10.4	%		12.7	%		$	1,033		$	1,085		5.0	%
	Tax-equivalent adjustment associated with tax-exempt investment securities	42			40			42			43			43			42									82			85
Net interest income, fully taxable-equivalent basis		$	554		$	561		$	579		$	557		$	553		$	617								$	1,115		$	1,170
	Average interest earning assets	194,081			198,243			202,155			202,194			191,840			195,287									196,162			193,573
Net interest margin, fully taxable-equivalent basis		1.15		%	1.14		%	1.14		%	1.09		%	1.17		%	1.27		%	13		bps	10		bps	1.14		%	1.22		%	8		bps
Net interest income, fully taxable-equivalent basis		$	554		$	561		$	579		$	557		$	553		$	617								$	1,115		$	1,170
	Discount accretion associated with former conduit securities	(15		)	(15		)	(42		)	(10		)	—			—									(30		)	—
Net interest income, operating-basis		$	539		$	546		$	537		$	547		$	553		$	617		13.0	%		11.6	%		$	1,085		$	1,170		7.8	%
	Average interest earning assets	194,081			198,243			202,155			202,194			191,840			195,287									196,162			193,573
Net interest margin, operating-basis		1.12		%	1.11		%	1.06		%	1.08		%	1.17		%	1.27		%	16		bps	10		bps	1.11		%	1.22		%	11		bps
	Effect of discount accretion	0.03		%	0.03		%	0.08		%	0.01		%	—		%	—		%							0.03		%	—		%

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)		1Q16			2Q16			3Q16			4Q16			1Q17			2Q17			2Q17 vs. 2Q16			2Q17 vs. 1Q17				2Q16			2Q17			YTD 2Q17 vs. YTD 2Q16
Expenses(3):
Total expenses, GAAP-basis		$	2,050		$	1,860		$	1,984		$	2,183		$	2,086		$	2,031		9.2	%		(2.6	)%			$	3,910		$	4,117		5.3	%
	Severance costs associated with staffing realignment	(3		)	3			9			2			—			—										—			—
	Provisions for legal contingencies	—			—			(42		)	1			—			—										—			—
	Expense billing matter, net	—			(15		)	—			—			—			—										(15		)	—
	Acquisition costs	(7		)	(7		)	(33		)	(22		)	(12		)	(9		)								(14		)	(21		)
	Restructuring charges, net	(97		)	(13		)	(9		)	(21		)	(17		)	(62		)								(110		)	(79		)
Total expenses, operating-basis		$	1,943		$	1,828		$	1,909		$	2,143		$	2,057		$	1,960		7.2			(4.7	)			$	3,771		$	4,017		6.5
Compensation and Employee Benefits Expenses:
Total compensation and employee benefits expenses, GAAP-basis		$	1,107		$	989		$	1,013		$	1,244		$	1,166		$	1,071		8.3			(8.1	)			$	2,096		$	2,237		6.7
	Severance costs associated with staffing realignment	(3		)	3			9			2			—			—										—			—
Total compensation and employee benefits expenses, operating-basis		$	1,104		$	992		$	1,022		$	1,246		$	1,166		$	1,071		8.0			(8.1	)			$	2,096		$	2,237		6.7
Other Expenses:
Total other expenses, GAAP-basis		$	254		$	269		$	337		$	310		$	297		$	283		5.2			(4.7	)			$	523		$	580		10.9
	Provisions for legal contingencies	—			—			(42		)	1			—			—										—			—
	Expense billing matter, net	—			(15		)	—			—			—			—										(15		)	—
Total other expenses, operating-basis		$	254		$	254		$	295		$	311		$	297		$	283		11.4			(4.7	)			$	508		$	580		14.2
Income Before Income Tax Expense:
Income before income tax expense, GAAP-basis		$	430		$	709		$	636		$	345		$	584		$	776		9.4			32.9				$	1,139		$	1,360		19.4
	Net pre-tax effect of non-operating adjustments to revenue and expenses	197			134			209			259			142			202										331			344
Income before income tax expense, operating-basis		$	627		$	843		$	845		$	604		$	726		$	978		16.0			34.7				$	1,470		$	1,704		15.9
Pre-tax operating margin(5):
Pre-tax operating margin, GAAP-basis		17.3		%	27.6		%	24.3		%	13.6		%	21.9		%	27.6		%	—		bps	570		bps	4.6	22.5		%	24.8		%	230		bps
	Net effect of non-operating adjustments	7.1			3.9			6.4			8.4			4.2			5.7										5.5			5.0
Pre-tax operating margin, operating-basis		24.4		%	31.5		%	30.7		%	22.0		%	26.1		%	33.3		%	180		bps	720		bps	1.7	28.0		%	29.8		%	180		bps
Income Tax Expense:
Income tax expense (benefit), GAAP-basis		$	62		$	92		$	72		$	(248	)	$	82		$	156		69.6	%		90.2	%			$	154		$	238		54.5	%
	Aggregate tax-equivalent adjustments	105			127			176			229			113			131										232			244
	Net tax effect of non-operating adjustments	15			10			8			10			7			20										25			27
Income tax expense (benefit), operating-basis		$	182		$	229		$	256		$	(9	)	$	202		$	307		34.1			52.0				$	411		$	509		23.8
Effective Tax Rate:
Income before income tax expense, operating-basis		$	627		$	843		$	845		$	604		$	726		$	978		16.0			34.7				$	1,470		$	1,704		15.9
Income tax expense, operating-basis		182			229			256			(9		)	202			307										411			509
Effective tax rate, operating-basis		29.1		%	27.0		%	30.3		%	(1.5		)%	27.8		%	31.4		%	440		bps	360		bps		27.9		%	29.9		%	200		bps
Net Income Available to Common Shareholders:
Net income available to common shareholders, GAAP-basis		$	319		$	585		$	507		$	557		$	446		$	584		(0.2	)%		30.9	%			$	904		$	1,030		13.9	%
	Net after-tax effect of non-operating adjustments to processing fees and other revenue, net interest income, expenses and income tax expense	77			(3		)	25			20			22			51										74			73
Net income available to common shareholders, operating-basis		$	396		$	582		$	532		$	577		$	468		$	635		9.1			35.7				$	978		$	1,103		12.8

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)		1Q16			2Q16			3Q16			4Q16			1Q17			2Q17			2Q17 vs. 2Q16			2Q17 vs. 1Q17			2Q16			2Q17			YTD 2Q17 vs. YTD 2Q16
Diluted Earnings per Common Share(1)(2):
Diluted earnings per common share, GAAP-basis		$	.79		$	1.47		$	1.29		$	1.43		$	1.15		$	1.53		4.1	%		33.0	%		$	2.25		$	2.69		19.6	%
	Severance costs associated with staffing realignment	.01			(.01		)	(.01		)	—			—			—									—			—
	Provisions for legal contingencies	—			—			.11			.02			—			—									—			—
	Expense billing matter, net	—			.10			—			—			—			—									.10			—
	Acquisition costs	.01			.01			.05			.03			.02			.02									.02			.03
	Restructuring charges, net	.15			.02			.01			.02			.03			.11									.17			.14
	Effect on income tax of non-operating adjustments	.04			(.01		)	(.03		)	(.01		)	.01			.01									.04			.02
	Discount accretion associated with former conduit securities	(.02		)	(.02		)	(.07		)	(.01		)	—			—									(.04		)	—
	Gain on sale of WM/Reuters Business	—			(.10		)	—			—			—			—									(.10		)	—
Diluted earnings per common share, operating-basis		$	.98		$	1.46		$	1.35		$	1.48		$	1.21		$	1.67		14.4			38.0			$	2.44		$	2.88		18.0
Return on Average Common Equity(1)(2):
Return on average common equity, GAAP-basis		6.8		%	12.4		%	10.6		%	12.1		%	9.9		%	12.6		%	20		bps	270		bps	9.6		%	11.3		%	170		bps
	Severance costs associated with staffing realignment	—			(.1		)	(.1		)	—			—			—									—			—
	Provisions for legal contingencies	—			—			.9			.2			—			—									—			—
	Expense billing matter, net	—			.8			—			—			—			—									.4			—
	Acquisition costs	.1			.1			.3			.3			.2			.1									.1			.1
	Restructuring charges, net	1.3			.2			.1			.1			.2			.9									.7			.5
	Effect on income tax of non-operating adjustments	.4			(.1		)	(.2		)	(.1		)	.1			.1									.2			.1
	Discount accretion associated with former conduit securities	(.2		)	(.2		)	(.5		)	(.1		)	—			—									(.2		)	—
	Gain on sale of WM/Reuters Business	—			(.8		)	—			—			—			—									(.4		)	—
Return on average common equity, operating-basis		8.4		%	12.3		%	11.1		%	12.5		%	10.4		%	13.7		%	140		bps	330		bps	10.4		%	12.0		%	160		bps
Fee Operating Leverage, GAAP-Basis:
Total fee revenue, GAAP-basis (as reconciled above)		$	1,970		$	2,053		$	2,079		$	2,014		$	2,198		$	2,235		8.87	%		1.68	%		$	4,023		$	4,433		10.19	%
Total expenses, GAAP-basis (as reconciled above)		2,050			1,860			1,984			2,183			2,086			2,031			9.19			(2.64	)		3,910			4,117			5.29
Fee operating leverage, GAAP-basis																				(32	)	bps	432		bps							490		bps
Fee Operating Leverage, Operating-Basis(1):
Total fee revenue, operating-basis (as reconciled above)		$	2,033		$	2,130		$	2,213		$	2,200		$	2,268		$	2,324		9.11	%		2.47	%		$	4,163		$	4,592		10.31	%
Total expenses, operating-basis (as reconciled above)		1,943			1,828			1,909			2,143			2,057			1,960			7.22			(4.72	)		3,771			4,017			6.52
Fee operating leverage, operating-basis																				189		bps	719		bps							379		bps
Operating Leverage, GAAP-Basis:
Total revenue, GAAP-basis (as reconciled above)		$	2,484		$	2,573		$	2,620		$	2,530		$	2,668		$	2,810		9.21	%		5.32	%		$	5,057		$	5,478		8.33	%
Total expenses, GAAP-basis (as reconciled above)		2,050			1,860			1,984			2,183			2,086			2,031			9.19			(2.64	)		3,910			4,117			5.29
Operating leverage, GAAP-basis																				2		bps	796		bps							304		bps
Operating Leverage, Operating-Basis(1)(2):
Total revenue, operating-basis (as reconciled above)		$	2,574		$	2,675		$	2,754		$	2,749		$	2,781		$	2,941		9.94	%		5.75	%		$	5,249		$	5,722		9.01	%
Total expenses, operating-basis (as reconciled above)		1,943			1,828			1,909			2,143			2,057			1,960			7.22			(4.72	)		3,771			4,017			6.52
Operating leverage, operating-basis																				272		bps	1,047		bps							249		bps
(1) The first quarter of 2017 GAAP and operating-basis results included a pre-tax gain of approximately $30 million on the sale of State Street's interest in Boston Financial Data Services, Inc. (BFDS) and International Financial Data Services Limited (IFDS Ltd), reflecting a change in our operating-basis presentation effective the first quarter of 2017 to include gains/losses on sales of businesses. In the second quarter of 2016, under our historical presentation, operating-basis results excluded a $53 million pre-tax gain on the sale of WM/Reuters business, and such results have not been revised.
(2) Beginning in the first quarter of 2017, management no longer presents discount accretion associated with former conduit securities as an operating-basis adjustment. Therefore, first and second quarter 2017 GAAP and operating-basis results included $5 million and $6 million, respectively, of discount accretion.  In the first, second, third and fourth quarters of 2016, operating-basis net interest income excluded $15 million, $15 million, $42 million and $10 million of discount accretion, respectively, and such results have not been revised.
(3) The impact of acquired operations on total revenue and fee revenue contributed approximately $65 million, $64 million, $71 million and $72 million for the third and fourth quarters of 2016 and first and second quarters of 2017, respectively. The impact of acquired operations on expenses contributed approximately $57 million, $58 million, $51 million and $51 million for the third and fourth quarters of 2016 and first and second quarters of 2017, respectively, excluding merger and integration charges and financing costs.
(4) Fully taxable-equivalent net interest margin for the periods presented above represented fully taxable-equivalent net interest income composed of GAAP-basis net interest income plus tax-equivalent adjustments, on an annualized basis, as a percentage of average total interest-earning assets for the quarters presented.
(5) Pre-tax operating margin was calculated by dividing income before income tax expense by total revenue.

13

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)	2Q16			1Q17			2Q17		2Q17 vs. 2Q16			2Q17 vs. 1Q17		2Q17 vs. 2Q16		2Q17 vs. 1Q17		2Q17 vs. 2Q16		2Q17 vs. 1Q17
Fee revenue:
Servicing fees	$	1,239		$	1,296		$	1,339	$	(10	)	$	13	$	1,349	$	1,326	8.9	%	2.3	%
Management fees	293			382			397		(3		)	2		400		395		36.5		3.4
Trading services	267			275			289		(5		)	4		294		285		10.1		3.6
Securities finance	156			133			179		(1		)	—		180		179		15.4		34.6
Processing fees and other	98			112			31		1			1		30		30		(69.4	)	(73.2	)
Total fee revenue	2,053			2,198			2,235		(18		)	20		2,253		2,215		9.7		0.8
Net interest income	521			510			575		(7		)	2		582		573		11.7		12.4
Gains (losses) related to investment securities, net	(1		)	(40		)	—		—			—		—		—		nm		nm
Total revenue	$	2,573		$	2,668		$	2,810	$	(25	)	$	22	$	2,835	$	2,788	10.2		4.5
Expenses:
Compensation and employee benefits	$	989		$	1,166		$	1,071	$	(10	)	$	10	$	1,081	$	1,061	9.3		(9.0	)
Information systems and communications	270			287			283		(1		)	1		284		282		5.2		(1.7	)
Transaction processing services	201			197			207		(2		)	1		209		206		4.0		4.6
Occupancy	111			110			116		(1		)	1		117		115		5.4		4.5
Other	289			326			354		(2		)	3		356		351		23.2		7.7
Total expenses	$	1,860		$	2,086		$	2,031	$	(16	)	$	16	$	2,047	$	2,015	10.1		(3.4	)

GAAP-Basis YTD Comparison	Reported					Currency Translation Impact			Excluding Currency Impact			% Change Constant Currency
(Dollars in millions)	2016		2017			YTD 2017 vs. YTD 2016			2017			YTD 2017 vs. YTD 2016
Fee revenue:
Servicing fees	$	2,481	$	2,635		$	(22	)	$	2,657		7.1	%
Management fees	563		779			(7		)	786			39.6
Trading services	539		564			(10		)	574			6.5
Securities finance	290		312			(1		)	313			7.9
Processing fees and other	150		143			(4		)	147			(2.0	)
Total fee revenue	4,023		4,433			(44		)	4,477			11.3
Net interest income	1,033		1,085			(13		)	1,098			6.3
Gains (losses) related to investment securities, net	1		(40		)	—			(40		)	nm
Total revenue	$	5,057	$	5,478		$	(57	)	$	5,535		9.5
Expenses:
Compensation and employee benefits	$	2,096	$	2,237		$	(26	)	$	2,263		8.0
Information systems and communications	542		570			(2		)	572			5.5
Transaction processing services	401		404			(4		)	408			1.7
Occupancy	224		226			(4		)	230			2.7
Other	647		680			(8		)	688			6.3
Total expenses	$	3,910	$	4,117		$	(44	)	$	4,161		6.4
nm Not meaningful

14

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)	2Q16			1Q17			2Q17		2Q17 vs. 2Q16			2Q17 vs. 1Q17		2Q17 vs. 2Q16		2Q17 vs. 1Q17		2Q17 vs. 2Q16		2Q17 vs. 1Q17
Fee revenue:
Servicing fees	$	1,287		$	1,296		$	1,339	$	(10	)	$	13	$	1,349	$	1,326	4.8	%	2.3	%
Management fees	288			382			397		(3		)	2		400		395		38.9		3.4
Trading services	267			275			289		(5		)	4		294		285		10.1		3.6
Securities finance	156			133			179		(1		)	—		180		179		15.4		34.6
Processing fees and other	132			182			120		1			1		119		119		(9.8	)	(34.6	)
Total fee revenue	2,130			2,268			2,324		(18		)	20		2,342		2,304		10.0		1.6
Net interest income	546			553			617		(7		)	2		624		615		14.3		11.2
Gains (losses) related to investment securities, net	(1		)	(40		)	—		—			—		—		—		nm		nm
Total revenue	$	2,675		$	2,781		$	2,941	$	(25	)	$	22	$	2,966	$	2,919	10.9		5.0
Expenses:
Compensation and employee benefits	$	992		$	1,166		$	1,071	$	(10	)	$	10	$	1,081	$	1,061	9.0		(9.0	)
Information systems and communications	270			287			283		(1		)	1		284		282		5.2		(1.7	)
Transaction processing services	201			197			207		(2		)	1		209		206		4.0		4.6
Occupancy	111			110			116		(1		)	1		117		115		5.4		4.5
Other	254			297			283		(2		)	2		285		281		12.2		(5.4	)
Total expenses	$	1,828		$	2,057		$	1,960	$	(16	)	$	15	$	1,976	$	1,945	8.1		(5.4	)

Operating-Basis YTD Comparison
	Reported					Currency Translation Impact			Excluding Currency Impact			% Change Constant Currency
(Dollars in millions)	2016		2017			YTD 2017 vs. YTD 2016			2017			YTD 2017 vs. YTD 2016
Fee revenue:
Servicing fees	$	2,529	$	2,635		$	(22	)	$	2,657		5.1	%
Management fees	558		779			(7		)	786			40.9
Trading services	539		564			(10		)	574			6.5
Securities finance	290		312			(1		)	313			7.9
Processing fees and other	247		302			(4		)	306			23.9
Total fee revenue	4,163		4,592			(44		)	4,636			11.4
Net interest income	1,085		1,170			(13		)	1,183			9.0
Gains (losses) related to investment securities, net	1		(40		)	—			(40		)	nm
Total revenue	$	5,249	$	5,722		$	(57	)	$	5,779		10.1
Expenses:
Compensation and employee benefits	$	2,096	$	2,237		$	(26	)	$	2,263		8.0
Information systems and communications	542		570			(2		)	572			5.5
Transaction processing services	401		404			(4		)	408			1.7
Occupancy	224		226			(4		)	230			2.7
Other	508		580			(7		)	587			15.6
Total expenses	$	3,771	$	4,017		$	(43	)	$	4,060		7.7
nm Not meaningful

15

STATE STREET CORPORATION

EARNINGS RELEASE ADDENDUM

REGULATORY CAPITAL

     The accompanying materials present capital ratios in addition to, or adjusted from, those calculated in conformity with applicable regulatory requirements. These include capital ratios based on tangible common equity, as well as capital ratios adjusted to reflect our estimate of the impact of the relevant Basel III requirements, as specified in the July 2013 final rule issued by the Board of Governors of the Federal Reserve System, referred to as the Basel III final rule. These non-regulatory and adjusted capital measures are non-GAAP financial measures. Management currently calculates the non-GAAP capital ratios presented in the news release to aid in its understanding of State Street’s capital position under a variety of standards, including currently applicable and transitioning regulatory requirements. Management believes that the use of the non-GAAP capital ratios presented in the accompanying materials similarly aids in an investor's understanding of State Street's capital position and therefore is of interest to investors.

     The common equity tier 1 risk-based capital, or CET1, tier 1 risk-based capital, total risk-based capital and tier 1 leverage ratios have each been calculated in conformity with applicable regulatory requirements as of the dates that each was first publicly disclosed. The capital component, or numerator, of these ratios was calculated in conformity with the provisions of the Basel III final rule. For the periods below the total risk-weighted assets component, or denominator, used in the calculation of the CET1, tier 1 risk-based capital and total risk-based capital ratios were each calculated in conformity with the advanced approaches and standardized approach provisions of Basel III, as the case may be.

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

     The tangible common equity, or TCE, ratio is an additional capital ratio that management believes provides context useful in understanding and assessing State Street's capital adequacy. The TCE ratio is calculated by dividing consolidated total common shareholders’ equity by consolidated total assets, after reducing both amounts by goodwill and other intangible assets net of related deferred taxes. Total assets reflected in the TCE ratio also exclude cash balances on deposit at the Federal Reserve Bank and other central banks in excess of required reserves. The TCE ratio is not required by GAAP or by banking regulations, but is a metric used by management to evaluate the adequacy of State Street’s capital levels. Since there is no authoritative requirement to calculate the TCE ratio, our TCE ratio is not necessarily comparable to similar capital measures disclosed or used by other companies in the financial services industry. Tangible common equity and adjusted tangible assets are non-GAAP financial measures and should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP or other applicable requirements. Reconciliations with respect to the calculation of the TCE ratios are provided within the Reconciliation of Tangible Common Equity Ratio within this package.

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

	Quarters
	1Q16						2Q16						3Q16						4Q16						1Q17						2Q17
(Dollars in millions)	Basel III Advanced Approaches(1)			Basel III Standardized Approach(2)			Basel III Advanced Approaches(1)			Basel III Standardized Approach(2)			Basel III Advanced Approaches(1)			Basel III Standardized Approach(2)			Basel III Advanced Approaches(1)			Basel III Standardized Approach(2)			Basel III Advanced Approaches(1)			Basel III Standardized Approach(2)			Basel III Advanced Approaches(1)			Basel III Standardized Approach(2)
RATIOS:
Common equity tier 1 capital	12.3		%	12.5		%	12.0		%	12.0		%	12.3		%	12.5		%	11.7		%	11.6		%	11.2		%	11.5		%	12.0		%	11.3		%
Tier 1 capital	14.9			15.1			15.0			15.0			15.4			15.7			14.8			14.7			14.4			14.7			15.2			14.2
Total capital	17.1			17.3			17.1			17.1			17.6			17.9			16.0			16.0			15.4			15.9			16.3			15.3
Tier 1 leverage	6.9			6.9			7.0			7.0			6.8			6.8			6.5			6.5			6.8			6.8			7.0			7.0
Supporting Calculations:
Common equity tier 1 capital	$	12,404		$	12,404		$	12,518		$	12,518		$	12,269		$	12,269		$	11,624		$	11,624		$	11,319		$	11,319		$	12,007		$	12,007
Total risk-weighted assets	100,633			99,617			104,012			104,492			99,736			98,374			99,301			99,876			100,843			98,494			99,897			106,595
Common equity tier 1 risk-based capital	12.3		%	12.5		%	12.0		%	12.0		%	12.3		%	12.5		%	11.7		%	11.6		%	11.2		%	11.5		%	12.0		%	11.3		%
Tier 1 capital	$	15,032		$	15,032		$	15,642		$	15,642		$	15,407		$	15,407		$	14,717		$	14,717		$	14,475		$	14,475		$	15,165		$	15,165
Total risk-weighted assets	100,633			99,617			104,012			104,492			99,736			98,374			99,301			99,876			100,843			98,494			99,897			106,595
Tier 1 risk-based capital ratio	14.9		%	15.1		%	15.0		%	15.0		%	15.4		%	15.7		%	14.8		%	14.7		%	14.4		%	14.7		%	15.2		%	14.2		%
Total capital	$	17,191		$	17,248		$	17,794		$	17,869		$	17,560		$	17,632		$	15,909		$	15,967		$	15,542		$	15,617		$	16,243		$	16,314
Total risk-weighted assets	100,633			99,617			104,012			104,492			99,736			98,374			99,301			99,876			100,843			98,494			99,897			106,595
Total risk-based capital ratio	17.1		%	17.3		%	17.1		%	17.1		%	17.6		%	17.9		%	16.0		%	16.0		%	15.4		%	15.9		%	16.3		%	15.3		%
Tier 1 capital	$	15,032		$	15,032		$	15,642		$	15,642		$	15,407		$	15,407		$	14,717		$	14,717		$	14,475		$	14,475		$	15,165		$	15,165
Adjusted quarterly average assets	217,029			217,029			222,666			222,666			226,093			226,093			226,310			226,310			212,361			212,361			216,940			216,940
Tier 1 leverage ratio	6.9		%	6.9		%	7.0		%	7.0		%	6.8		%	6.8		%	6.5		%	6.5		%	6.8		%	6.8		%	7.0		%	7.0		%
(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.

16

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF TANGIBLE COMMON EQUITY RATIO
The following table presents the calculation of State Street's ratios of tangible common equity to total tangible assets.
		Quarters
(Dollars in millions)		1Q16			2Q16			3Q16			4Q16			1Q17			2Q17
Consolidated total assets		$	243,685		$	255,386		$	256,140		$	242,698		$	236,802		$	238,274
Less:
Goodwill		5,733			5,671			5,911			5,814			5,855			5,945
Other intangible assets		1,749			1,682			1,849			1,750			1,710			1,693
Cash balances held at central banks in excess of required reserves		58,639			67,710			67,571			62,037			59,780			56,326
Adjusted assets		177,564			180,323			180,809			173,097			169,457			174,310
Plus related deferred tax liabilities		698			688			685			655			649			651
Total tangible assets	A	$	178,262		$	181,011		$	181,494		$	173,752		$	170,106		$	174,961
Consolidated total common shareholders' equity		$	18,793		$	18,877		$	18,954		$	18,023		$	18,098		$	18,872
Less:
Goodwill		5,733			5,671			5,911			5,814			5,855			5,945
Other intangible assets		1,749			1,682			1,849			1,750			1,710			1,693
Adjusted equity		11,311			11,524			11,194			10,459			10,533			11,234
Plus related deferred tax liabilities		698			688			685			655			649			651
Total tangible common equity	B	$	12,009		$	12,212		$	11,879		$	11,114		$	11,182		$	11,885
Tangible common equity ratio	B/A	6.7		%	6.7		%	6.5		%	6.4		%	6.6		%	6.8		%

17

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF FULLY PHASED-IN CAPITAL RATIOS
Fully phased-in pro-forma estimates of common equity tier 1 capital include 100% of the accumulated other comprehensive income component of common shareholder’s equity, including accumulated other comprehensive income attributable to available-for-sale securities, cash flow hedges and defined benefit pension plans, as well as 100% of applicable deductions, including but not limited to, intangible assets net of deferred tax liabilities. Fully phased-in pro-forma estimates of tier 1 and total capital both reflect the transition of trust preferred capital securities from tier 1 capital to total capital. For both Basel III advanced and standardized approaches, fully phased-in pro-forma estimates of risk-weighted assets reflect the exclusion of intangible assets, offset by additions related to non-significant equity exposures and deferred tax assets related to temporary differences. All fully phased-in ratios are preliminary estimates, based on our interpretations of the Basel III final rule as of the date each such ratio was first announced publicly and as applied to our businesses and operations as of the date of such ratio.
The following tables reconcile our fully phased-in estimated pro-forma common equity tier 1 capital, tier 1 capital, total capital and tier 1 leverage ratios, calculated in conformity with the Basel III final rule, as of the dates indicated, to those same ratios calculated in conformity with the applicable regulatory requirements as of such dates.
As of June 30, 2017 (Dollars in millions)	Basel III Advanced Approaches			Phase-In Provisions			Basel III Advanced Approaches Fully Phased-In Pro-Forma Estimate			Basel III Standardized Approach			Phase-In Provisions			Basel III Standardized Approach Fully Phased-In Pro-Forma Estimate
Common equity tier 1 capital	$	12,007		$	(315	)	$	11,692		$	12,007		$	(315	)	$	11,692
Tier 1 capital	15,165			(277		)	14,888			15,165			(277		)	14,888
Total capital	16,243			(278		)	15,965			16,314			(277		)	16,037
Risk weighted assets	99,897			65			99,962			106,595			61			106,656
Adjusted quarterly average assets	216,940			(205		)	216,735			216,940			(205		)	216,735
Capital ratios:
Common equity tier 1 capital	12.0		%				11.7		%	11.3		%				11.0		%
Tier 1 capital	15.2						14.9			14.2						14.0
Total capital	16.3						16.0			15.3						15.0
Tier 1 leverage	7.0						6.9			7.0						6.9
As of March 31, 2017 (Dollars in millions)	Basel III Advanced Approaches			Phase-In Provisions			Basel III Advanced Approaches Fully Phased-In Pro-Forma Estimate			Basel III Standardized Approach			Phase-In Provisions			Basel III Standardized Approach Fully Phased-In Pro-Forma Estimate
Common equity tier 1 capital	$	11,319		$	(339	)	$	10,980		$	11,319		$	(339	)	$	10,980
Tier 1 capital	14,475			(299		)	14,176			14,475			(299		)	14,176
Total capital	15,542			(299		)	15,243			15,617			(299		)	15,318
Risk weighted assets	100,843			134			100,977			98,494			127			98,621
Adjusted quarterly average assets	212,361			(270		)	212,091			212,361			(270		)	212,091
Capital ratios:
Common equity tier 1 capital	11.2		%				10.9		%	11.5		%				11.1		%
Tier 1 capital	14.4						14.0			14.7						14.4
Total capital	15.4						15.1			15.9						15.5
Tier 1 leverage	6.8						6.7			6.8						6.7

18

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATION OF FULLY PHASED-IN CAPITAL RATIOS (Continued)
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		$	(769	)	$	10,855		$	11,624		$	(769	)	$	10,855
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	99,301			33			99,334			99,876			31			99,907
Adjusted quarterly average assets	226,310			(474		)	225,836			226,310			(474		)	225,836
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 quarterly 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
STATE STREET CORPORATION

19

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 quarterly 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 quarterly 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

20

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF SUPPLEMENTARY LEVERAGE RATIOS
In 2014, U.S. banking regulators issued final rules implementing a supplementary leverage ratio, or SLR, for certain bank holding companies, like State Street, and their insured depository institution subsidiaries, like State Street Bank. We refer to these final rules as the SLR final rule. Under the SLR final rule, upon implementation as of January 1, 2018, (i) State Street Bank must maintain an SLR of at least 6% to be well capitalized under the U.S. banking regulators’ Prompt Corrective Action framework and (ii) if State Street maintains an SLR of at least 5%, it is not subject to limitations on distribution and discretionary bonus payments under the SLR final rule. Beginning with reporting for March 31, 2015, State Street was required to include SLR disclosures with its other Basel disclosures.
Estimated pro forma fully phased-in SLR ratios 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 26, 2017 and as applied to our businesses and operations for the periods below.
The following tables reconcile our estimated pro forma fully-phased in SLR ratios 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 June 30, 2017 (Dollars in millions)	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	15,165		A	$	14,888		$	16,002		$	15,737
On-and off-balance sheet leverage exposure	250,325				250,325			246,971			246,971
Less: regulatory deductions	(6,633		)		(6,838		)	(6,237		)	(6,435		)
Total assets for SLR	243,692			B	243,487			240,734			240,536
Supplementary Leverage Ratio	6.2		%	A/B	6.1		%	6.6		%	6.5		%
	State Street							State Street Bank
As of March 31, 2017 (Dollars in millions)	Transitional SLR				Fully Phased-In SLR			Transitional SLR			Fully Phased-In SLR
Tier 1 Capital	$	14,475		C	$	14,176		$	15,492		$	15,206
On-and off-balance sheet leverage exposure	244,964				244,964			241,563			241,563
Less: regulatory deductions	(6,818		)		(7,087		)	(6,422		)	(6,683		)
Total assets for SLR	238,146			D	237,877			235,141			234,880
Supplementary Leverage Ratio	6.1		%	C/D	6.0		%	6.6		%	6.5		%
	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		E	$	14,051		$	15,805		$	15,169
On-and off-balance sheet leverage exposure	257,509				257,509			253,487			253,487
Less: regulatory deductions	(6,476		)		(6,950		)	(6,078		)	(6,532		)
Total assets for SLR	251,033			F	250,559			247,409			246,955
Supplementary Leverage Ratio	5.9		%	E/F	5.6		%	6.4		%	6.1		%

21

STATE STREET CORPORATION
EARNINGS RELEASE ADDENDUM
RECONCILIATIONS OF SUPPLEMENTARY LEVERAGE RATIOS (Continued)
	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		G	$	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			H	250,694			246,306			246,032
Supplementary Leverage Ratio	6.1		%	G/H	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		I	$	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			J	248,767			244,483			244,226
Supplementary Leverage Ratio	6.3		%	I/J	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		K	$	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			L	241,436			237,292			236,970
Supplementary Leverage Ratio	6.2		%	K/L	6.0		%	6.4		%	6.2		%

22

EX-99.3

Second Quarter 2017 Financial Highlights July 26, 2017 (NYSE: STT) Exhibit 99.3

1 This presentation includes certain highlights of, and also material supplemental to, State Street Corporation’s news release announcing its second quarter 2017 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 as defined by United States securities laws. These statements are not guarantees of future performance, are inherently uncertain, are based on assumptions that are difficult to predict and have a number of risks and uncertainties. The forward-looking statements in this presentation speak only as of July 26, 2017, and State Street does not undertake efforts to revise forward-looking statements. See “Forward-Looking Statements” in the Appendix for more information, including a description of certain factors that could affect future results and outcomes. Financial information in this presentation is presented on an operating-basis, a non-GAAP presentation, unless stated otherwise. Refer to the Appendix for explanations of our non- GAAP financial measures, including changes made to our operating-basis presentation, and to the Addendum for reconciliations of our operating-basis financial information. Preface and forward-looking statements

2 Summary of GAAP & Operating-basis (non-GAAP) Results nm Not meaningful Refer to the Appendix included with this presentation for footnotes 1 and 2. 2Q16 1Q17 2Q17 1Q17 2Q16 2Q16 1Q17 2Q17 1Q17 2Q16 Revenue: Servicing fees 1,239$ 1,296$ 1,339$ 3% 8% 1,287$ 1,296$ 1,339$ 3% 4% Management fees 293 382 397 4 36 288 382 397 4 38 Foreign exchange (FX) trading 157 164 178 9 13 157 164 178 9 13 Brokerage & other trading services 110 111 111 - 1 110 111 111 - 1 Trading services 267 275 289 5 8 267 275 289 5 8 Securities finance 156 133 179 35 15 156 133 179 35 15 Processing fees and other1 98 112 31 (72) (68) 132 182 120 (34) (9) Total fee revenue1 2,053 2,198 2,235 2 9 2,130 2,268 2,324 3 9 Net interest income (NII)2 521 510 575 13 10 546 553 617 12 13 Net gains/(losses) related to investment securities (1) (40) - nm nm (1) (40) - nm nm Total revenue1,2 2,573 2,668 2,810 5 9 2,675 2,781 2,941 6 10 Provision for loan losses 4 (2) 3 nm (25) 4 (2) 3 nm (25) Expenses: Compensation and employee benefits 989 1,166 1,071 (8) 8 992 1,166 1,071 (8) 8 Information systems and communications 270 287 283 (1) 5 270 287 283 (1) 5 Transaction processing services 201 197 207 5 3 201 197 207 5 3 Occupancy 111 110 116 6 5 111 110 116 6 5 Acquisition and restructuring costs 20 29 71 145 255 - - - - - Other 269 297 283 (5) 5 254 297 283 (5) 11 Total expenses 1,860 2,086 2,031 (3) 9 1,828 2,057 1,960 (5) 7 Income before income tax expenses 709 584 776 33 9 843 726 978 35 16 Income tax expense (benefit) 92 82 156 90 70 229 202 307 52 34 Net income/(loss) from non-controlling interest 2 - - nm nm 2 - - - nm Net income 619 502 620 24 0 616 524 671 28 9 Dividends on preferred stock (33) (55) (36) (35) 9 (33) (55) (36) (35) 9 Earnings allocated to participating securities (1) (1) - nm nm (1) (1) - nm nm Net income available to common shareholders 585$ 446$ 584$ 31 (0) 582$ 468$ 635$ 36 9 Diluted earnings per share (EPS) 1.47$ 1.15$ 1.53$ 33 4 1.46$ 1.21$ 1.67$ 38 14 Return on average common equity (ROE) 12.4% 9.9% 12.6% 270bps 20bps 12.3% 10.4% 13.7% 330bps 140bps GAAP-basis Financials $ in millions, except per share data Operating-basis Financials % ∆ % ∆Quarters Quarters

3 Progress on strategic priorities supported a strong quarter and first half of the year 2Q17 results driven by continued strength in equity markets, broad-based new business activity, and higher U.S. market interest rates: Growth in AUCA and AUM led to our highest levels, which drove strong fee revenue growth Higher U.S. market interest rates, disciplined liability pricing, and improvements in liability mix resulted in higher NII and NIM Beacon’s benefits are helping to fund investments to drive further operational efficiencies and future growth Generated positive fee operating leverage Maintained a high quality balance sheet and strong capital ratios while delivering higher returns Strategy for long-term growth fueled by Beacon and The Way Ahead Outlook for rest of 2017 improved driven by supportive conditions 2Q17 Highlights Operating-Basis (Non-GAAP)

4 • Growth of 12% in AUCA and 13% in AUM led to our highest levels: − $31.0T in AUCA (including $2.2T in ETF AUA) − $2.6T in AUM • New business wins of ~$135B in AUCA and new business yet to be installed of ~$370B • Global Markets momentum continues – moved up two notches in the Euromoney (Real Money) FX Survey to become the 5th largest FX service provider • Completed the integration of the acquired GE Asset Management (GEAM) business in 2Q17, which had already turned accretive ahead of schedule in 1Q17 • Making investments to address clients’ needs on numerous fronts, including for: − SEC Modernization − Collateral Management − Continuous Net Settlement − Outsourced Chief Investment Officer (OCIO) − Market Entry Solutions Advance our digital leadership through Beacon Progress on strategic priorities in 2Q17 supported a strong first half of the year Continue to invest in new products and solutions Achieve our financial goals • Driving scale of our global model and adapting new technology: − Transaction Processing − Fund Accounting − Fund Administration • Differentiating speed: improving NAV delivery speeds by 20-30 minutes • Investing in next generation talent and technology; developing future platform architecture, expanding cloud adoption, and investing in global agile and design capabilities Drive growth from the core franchise • EPS increased 14% from 2Q161 • ROE of 13.7% increased 140bps from 2Q161 • Generated 189bps of positive fee operating leverage from 2Q16 (272bps of overall operating leverage) and achieved pre-tax operating margin of 33.3% • Declared 3Q17 common stock dividends per share of $0.42, up 11% from 2Q16; approved a new common stock purchase program authorizing the purchase of up to $1.4B in common stock2 Operating-Basis (Non-GAAP) Refer to the Appendix included with this presentation for footnotes 1 and 2.

5 2Q17 financial highlights compared to 2Q16: • EPS growth of 14% driven by strong fee revenue and NII growth from higher equity markets, new business wins as well as client activity, and higher U.S. market interest rates • Generated positive fee operating leverage of 189bps while carefully pacing investments to drive future growth • Improved pre-tax operating margin to 33.3%, an increase of 180bps • ROE improved 140bps to 13.7% through stronger earnings and capital return YTD2Q17 financial highlights compared to YTD2Q16: • EPS growth of 18% • Generated positive fee operating leverage of 379bps • Improved pre-tax operating margin to 29.8% • ROE of 12.0% improved 160bps Results driven by higher equity markets and broad-based new business wins Diluted EPS ($) ROE (%) +140bps 2Q17 13.7 1Q17 10.4 4Q16 12.5 3Q16 11.1 2Q16 12.3 1.21 1.48 1.35 1.46 1.67 +14% 2Q17 1Q17 4Q16 3Q16 2Q16 Operating-Basis (Non-GAAP)1 Refer to the Appendix included with this presentation for footnote 1.

6 Market growth and continued business momentum across product areas lifted AUCA and AUM to our highest levels Assets Under Custody and Administration (AUCA) $ in trillions, as of period-end Assets Under Management (AUM) $ in billions, as of period-end 29.828.829.227.8 31.0 +4% +12% 2Q17 1Q17 4Q16 3Q16 2Q16 2,561,4682,446 2,301 2,606 3Q16 4Q16 2Q16 +2% +13% 2Q17 1Q17 • 2Q17 AUCA increased 12% from 2Q16 primarily reflecting: −Growth from market appreciation −Strong flows and new business in both the U.S. and EMEA, across a breadth of products • 2Q17 AUM increased 13% from 2Q16 primarily reflecting: − Growth from market appreciation − Growth from the acquired GEAM business including follow on wins (now at total AUM1 of ~$125B, up from $110B) Refer to the Appendix included with this presentation for footnote 1.

7 2Q17 vs 2Q16: • Servicing fees increased primarily due to strengthening equity markets, net new business and client flows • Management fees increased primarily driven by an estimated $72M from the acquired GEAM business, strengthening equity markets, and higher revenue- yielding net ETF flows • Trading services increased primarily driven by higher client-related volumes in FX trading • Securities finance increased primarily driven by continued growth from enhanced custody client volumes • Processing fees and other decreased primarily reflecting unfavorable FX swap costs • Stronger U.S. dollar negatively impacted total fee revenue by ~$18M Strong fee revenue growth driven by both higher equity markets and client business activity Fee Revenue ($M) 267 275 288 382 1,287 1,296 182 179 289 397 1,339 2,324 120 +9%, 3% due to GEAM 2Q17 3Q16 2,200 4Q16 1Q17 2,268 133 2,213 2Q16 2,130 132 156 Ex FX Servicing fees 4% 5% Management fees 38% 39% Trading services 8% 10% Securities finance revenue 15% 15% Processing fees and other (9%) (10%) Total Fee revenue 9% 10% 2Q17 v 2Q16 % Change Operating-Basis (Non-GAAP)1 Refer to the Appendix included with this presentation for footnote 1.

8 2Q17 vs 2Q16: • NII and NIM increased primarily due to the higher U.S. market interest rate environment, continued disciplined liability pricing, and improvements in liability mix, partially offset by a smaller investment portfolio • Average interest earning assets relatively flat Higher U.S. market interest rates, disciplined liability pricing, and improvements in liability mix resulted in higher NII and NIM Average Interest Earning Assets ($B) NII1 and NIM ($M, %) 553547537546 617 1.17 1.081.06 1.11 1.27 300 400 500 600 700 0.80 1.00 1.20 1.40 1.60 NII +13% NIM +16bps 2Q17 1Q17 4Q16 3Q16 2Q16 NIM 2Q16 3Q16 4Q16 1Q17 2Q17 198 202 202 192 195 Refer to the Appendix included with this presentation for footnote 1. Operating-Basis (Non-GAAP)

9 Notable Items & GEAM: • 7% expense growth from 2Q16, with 3% or ~$51M due to expenses related to the acquired GEAM business 2Q17 vs 2Q16: • Compensation and employee benefits increased primarily driven by new business activity, higher incentive compensation and annual merit increases, costs associated with the acquired GEAM business, and higher costs for regulatory initiatives, partially offset by savings from Beacon • Information systems & communications increased primarily driven by technology infrastructure costs, new business and Beacon • Transaction processing increased primarily driven by higher client activity volume • Occupancy increased primarily due to the addition of the acquired GEAM business and Beacon-related global footprint investments • Other increased primarily driven by the addition of the acquired GEAM sub-advisory fees and higher regulatory and insurance expense, partially offset by lower legal related costs • Stronger U.S. dollar favorably impacted total expenses by ~$16M Expenses continue to support new business activity, offset by savings from Beacon Expenses ($M) 297 270 287 992 1,166 254 283 207 283 1,071 +7%, 3% due to GEAM 2Q17 1,960 4Q16 1Q17 2,057 110 197 116 111 201 3Q16 2,143 1,909 2Q16 1,828 Operating-Basis (Non-GAAP) Ex FX Compensati n & benefits 8% 9% Info systems & comm 5% 5% Transaction processing 3% 4% Occupancy 5% 5% Other 11% 12% Total Expense 7% 8% 2Q17 v 2Q16 % Change Expenses Ex Notable Comp Items 1,828 1,909 1,8941 1,9031 1,960 2491 1541 Refer to the Appendix included with this presentation for footnote 1.

10 Example Adoption Metrics: 2015 2016 2Q17 •Fund Accounting: e.g., new NAV tool adoption 25% 65% 71% •Fund Administration: e.g., ASC 815 financial reporting tool adoption1,2 25% 84% 100% Category: Key Initiatives: Highlights: Driving scale of our global model Expanding connectivity across the enterprise Investing in next generation of platforms • Improving speed, quality, and client experience across Global Services, including: -Transaction Processing -Fund Accounting -Fund Administration •Digitizing how we receive and process data; exception-based processing •Expanding follow-the-sun model to service global clients around the clock through diverse time zones •Expanding across SSGA and Corporate Groups •Investing in core technology platforms •Re-designing operating models •Enterprise-wide governance and spend management Fueling innovation and growth •Innovating business solutions for client needs in a dynamic market environment •Examples: Reporting solutions for SEC Modernization, Collateral Management, Continuous Net Settlement Beacon initiatives are driving value to clients and across the enterprise •Upgrading core platform architecture: improving performance, automation and resiliency to drive scale •Integrating new technologies: distributed ledger technologies, automation and cloud technologies •Investing in IT capabilities: improving access and standardization •Enhance services, performance, and capacity, while reducing costs •Adoption of cloud technologies to enhance our operational environment •Proactively addressing regulatory changes, data privacy needs and the management of clients’ information •SSGA Beacon focus: digitizing data and processes to evolve operating model and enhance solutions for clients •Corporate Beacon focus: driving global process standardization; investing in capabilities and technology •Centralized procurement and real estate management •Co-creation and partnership: 100+ clients engaged YTD •Investments in 10+ solutions in growth areas •New solutions, including for SEC Modernization regulatory changes, have generated meaningful client discussions and have an encouraging pipeline •Transaction Processing: Improved straight through processing (STP), enhancing controls & services, while reducing risk. Since 2015: -STP of Global Trades for N.A. clients continually increasing -Reduced defect rates for Income Processing by 37% -Reduced pricing defect rates for Derivatives Hub by 74% Refer to the Appendix included with this presentation for footnotes 1 and 2.

11 Year Over Year Changes: ∆ from 2015 to 2016 ∆ from 2016 to 2017 Expense benefits $210 $230 Investment expenses ($35) ($90) Net expense savings $175 $140 Beacon’s benefits are helping to fund investments to drive both future savings and future growth Breakdown of Benefits by Beacon Driver: (%) Contribution to Gross Expense Benefits 2016 Actual 2017 Estimate Transaction Processing, Fund Accounting, Fund Administration and operating model optimizations 80% 70% Application, platform rationalization and optimization 10% 15% Corporate divisions, procurement, real estate optimization and SSGA 10% 15% Beacon Operating-Basis Financials1,2: ($M, FY) Continuing to invest to improve effectiveness, efficiency and risk excellence, while also driving future revenue opportunities Driving scale of our global model Expanding connectivity across the enterprise Investing in next generation of platforms Operating-Basis (Non-GAAP) Refer to the Appendix included with this presentation for footnotes 1 and 2.

12 2Q171 Investment Portfolio Highlights as of June 30, 2017 Investment Portfolio: • Size2: $95.0B • Credit profile: 91% rated AAA/AA • Fixed-rate / floating-rate mix: 66% / 34% • Duration: 2.4 years • Diversified mix of Treasuries, Agency MBS, Munis, Asset- backed Securities, and other debt investments and equity securities 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: approximately ($0.8)B Continue to maintain a high-quality balance sheet and strong capital ratios Refer to the Appendix included with this presentation for footnotes 1 to 7. 2Q17 Quarter-End Capital3 Positions %, as of June 30, 2017 Capital Ratios: 4Q16 1Q17 2Q17 Basel III Ratios: Common equity tier 1 ratio4 (lower of advanced and standardized approaches) Tier 1 leverage ratio: State Street Corporation 11.6 6.5 11.2 6.8 11.3 7.0 Supplementary Leverage Ratios: State Street Corporation State Street Bank and Trust Company 5.9 6.4 6.1 6.6 6.2 6.6 Estimated Pro Forma Fully Phased-in Basel III Ratios: Fully phased-in (effective January 1, 2019) common equity tier 1 ratio (lower of advanced and standardized approaches)5,6 Fully phased-in (effective January 1, 2018) supplementary leverage ratios7 State Street Corporation State Street Bank and Trust Company 10.9 5.6 6.1 10.9 6.0 6.5 11.0 6.1 6.5

13 Outlook for 2017 improved driven by supportive conditions Category 2017 Outlook / Objective (vs 2016 where applicable): Assumptions Full-year 2017 total fee revenue growth: • 6 - 7% • Previously 4 - 6% • Under the market conditions as of July 2017 (previously January 2017) • Including the contributions of the acquired GEAM business 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 Beacon and including the contributions of the acquired GEAM operations Expense management: • Beacon pre-tax net expense savings of at least $140M1,2 • Beacon expense savings to partially offset expenses to support new business, continued business investments, and merit and depreciation increases • Expect restructuring charges as Beacon continues to progress NII scenario: • $2.43B - $2.45B or up 12 - 13% • Previously $2.27B - $2.3B or up 4 - 6% • Assuming current interest rate expectations across the curve and currencies, which includes a late year rise in the U.S. • NII will also depend on the size of our balance sheet, client deposit behavior, balance sheet management activity and the impact of FX swap costs Effective tax rate of: • 30 - 32% • Excludes the impact of any potential tax law changes (given present high level of uncertainty) Balance Sheet: • Reduce interest earning assets 0 - 5% • Reduction in client deposits and wholesale CDs Operating-Basis (Non-GAAP) Refer to the Appendix included with this presentation for footnotes 1 and 2.

14 APPENDIX YTD GAAP & Operating-basis (non-GAAP) Results 15 The Way Ahead 16 Beacon 17 The Acquired Operations of GE Asset Management 18 2Q17 vs 1Q17 Variances for Fee Revenue, NII and Expenses 19 – 21 Slide Footnotes 22 – 23 Forward Looking Statements 24 Non-GAAP Measures 25 Definitions 26

15 Summary of YTD GAAP & Operating-basis (non-GAAP) Results YTD YTD % ∆ YTD YTD % ∆ 2Q16 2Q17 YTD 2Q16 2Q17 YTD Revenue: Servicing fees 2,481$ 2,635$ 6% 2,529$ 2,635$ 4% Management fees 563 779 38 558 779 40 Foreign exchange (FX) trading 313 342 9 313 342 9 Brokerage & other trading services 226 222 (2) 226 222 (2) Trading services 539 564 5 539 564 5 Securities finance 290 312 8 290 312 8 Processing fees and other1 150 143 (5) 247 302 22 Total fee revenue1 4,023 4,433 10 4,163 4,592 10 Net interest income (NII)2 1,033 1,085 5 1,085 1,170 8 Net gains/(losses) related to investment securities 1 (40) nm 1 (40) nm Total revenue1,2 5,057 5,478 8 5,249 5,722 9 Provision for loan losses 8 1 (88) 8 1 (88) Expenses: Compensation and employee benefits 2,096 2,237 7 2,096 2,237 7 Information systems and communications 542 570 5 542 570 5 Transaction processing services 401 404 1 401 404 1 Occupancy 224 226 1 224 226 1 Acquisition and restructuring costs 124 100 (19) - - - Other 523 580 11 508 580 14 Total expenses 3,910 4,117 5 3,771 4,017 7 Income before income tax expenses 1,139 1,360 19 1,470 1,704 16 Income tax expense (benefit) 154 238 55 411 509 24 Net income/(loss) from non-controlling interest 2 - nm 2 - nm Net income 987 1,122 14 1,061 1,195 13 Dividends on preferred stock (82) (91) 11 (82) (91) 11 Earnings allocated to participating securities (1) (1) - (1) (1) - Net income available to common shareholders 904$ 1,030$ 14 978$ 1,103$ 13 Diluted earnings per share (EPS) 2.25$ 2.69$ 20 2.44$ 2.88$ 18 Return on average common equity (ROE) 9.6% 11.3% 170bps 10.4% 12.0% 160bps $ in millions, except per share data GAAP-basis Financials Operating-basis Financials nm Not meaningful Refer to the Appendix included with this presentation for footnotes 1 and 2.

16 The Way Ahead Long-term Shareholder Value Building on Our Strong Core Achieving a Digital Enterprise Investing in Opportunities for Growth Maintaining Financial Strength 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-Basis Financial Goals1 Revenue Growth of 8%-12%, EPS Growth of 10%-15% and ROE of 12%-15% 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.

17 Beacon on track to deliver financial benefits to be achieved through 2020 1 Estimated pre-tax expense savings improvement relate only to 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 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. Refer to the Appendix of this presentation 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 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 ~$300M - $400M from 2016 through 2020 • Expect restructuring charges to be announced as Beacon progresses, including charges of $142M for 2016 and $78M for YTD2Q17 ($62M in 2Q17 and $16M in 1Q17)

18 • Associated AUM1 of the acquired GEAM operations was $125B at June 30, 2017, up from the ~$110B announced at acquisition on July 1, 2016 • Excluding merger and integration charges, the transaction was accretive to operating-basis2 EPS since the three-quarter period ended March 31, 2017, which was one quarter ahead of plan • In the first full year ending June 30, 2017, fee revenue from the transaction exceeded $270M3: – In 2Q17 the acquired business contributed estimated operating-basis2 fee revenue of ~$72M and estimated operating- basis expenses of ~$51M, excluding merger and integration charges and financing costs – For the four-quarter period ended June 30, 2017 the acquired business contributed estimated operating-basis2 fee revenue of ~$272M and estimated operating-basis expenses of ~$217M, excluding merger and integration charges and financing costs • Total acquisition and restructuring costs of ~$75M are now largely complete: – 2016: ~$53M –YTD2Q17: ~$21M (with $12M in 1Q17 and $9M in 2Q17) GE Asset Management operations are financially accretive to 1Q17 and 2Q17 earnings, excluding merger & integration charges, and the integration is largely complete 1 The associated AUM includes assets from acquired clients invested into various SSGA funds and new business from these clients since the acquisition date. 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 This fee revenue 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 were approximately $13M for the referenced twelve month period.

19 Market growth and business momentum continued to support fee revenue growth Fee Revenue ($M) 2Q17 vs 1Q17: • Servicing fees increased primarily due to higher equity markets, the impact of the weaker U.S. dollar, and net new business • Management fees increased driven by strengthening equity markets • Trading services increased reflecting higher client- related volumes in FX trading • Securities finance increased primarily due to seasonality and continued growth from enhanced custody client volumes • Processing fees and other decreased primarily due to the 1Q17 pre-tax gain associated with the sale of the BFDS/IFDS UK joint venture interests of $30M and unfavorable FX swap costs • U.S. dollar favorably impacted total fee revenue by ~$20M 267 275 289 288 382 397 1,287 1,296 1,339 182 +3% 2Q17 2,324 120 179 1Q17 2,268 133 4Q16 2,200 3Q16 2,213 2Q16 2,130 132 156 Operating-Basis (Non-GAAP)1 Ex FX Servicing fe s 3% 2% Management fees 4% 3% Trading services 5% 4% Securities finance revenue 35% 35% Processing fees and other (34%) (35%) Total Fee Revenue 3% 2% 2Q17 v 1Q17 % Change Refer to the Appendix included with this presentation for footnote 1.

20 Higher U.S. market interest rates and improvements in liability mix resulted in higher NII and NIM Average Interest Earning Assets ($B) NII1 and NIM ($M, %) 553547537546 617 1.17 1.081.06 1.11 1.27 300 400 500 600 700 0.80 1.00 1.20 1.40 1.60 1Q17 4Q16 3Q16 2Q16 2Q17 NII +12% NIM +10bps NIM 2Q17 vs 1Q17: • NII and NIM increased primarily due to the higher U.S. market interest rate environment and improvements in liability mix, including a $4B reduction in wholesale CD funding • Average interest earning assets increased primarily attributable to an increase in U.S. dollar client deposit balances 2Q16 3Q16 4Q16 1Q17 2Q17 198 202 202 192 195 Refer to the Appendix included with this presentation for footnote 1. Operating-Basis (Non-GAAP)

21 2Q17 vs 1Q17: • Compensation and employee benefits decreased primarily due to the seasonal deferred incentive compensation expense in 1Q17 and savings from Beacon, partially offset by timing of incentive compensation and annual merit increases, and new business activity • Transaction processing increased primarily driven by increased client activity volume • Occupancy increased primarily due to Beacon-related global footprint investments • Other decreased primarily due to lower legal related costs • U.S. dollar negatively impacted total expenses by ~$15M Expenses ($M) Operating-Basis (Non-GAAP) 297 270 287 992 1,166 254 283 207 283 1,071 1,909 2Q16 1,828 111 201 -5% 2Q17 1,960 116 1Q17 2,057 110 197 4Q16 2,143 3Q16 2491 1541 Expenses Ex Notable Comp Items 1,828 1,909 1,8941 1,9031 1,960 Ex FX Compensation & benefits (8%) (9%) Info systems & comm (1%) (2%) Transaction processing 5% 5% Occupancy 6% 5% Other (5%) (5%) Total Expense (5%) (5%) 2Q17 v 1Q17 % Change Expenses continue to support new business activity, offset by savings from Beacon Refer to the Appendix included with this presentation for footnote 1.

22 Footnotes to slide 2 & 15: 1 The 1Q17 operating-basis results included a pre-tax gain of approximately $30M on the sale of State Street's interest in Boston Financial Data Services, Inc. (BFDS) and International Financial Data Services Limited (IFDS Ltd), reflecting a change in our operating-basis presentation effective in 1Q17 to include gains/losses on sales of businesses. In 2Q16, under our historical presentation, operating-basis results excluded a $53M pretax gain on the sale of WM/Reuters business, and such results have not been revised. 2 Beginning in 1Q17, management will no longer present discount accretion associated with former conduit securities as an operating-basis adjustment. Therefore, 1Q17 and 2Q17 operating-basis results included $5M and $6M, respectively, of discount accretion. In 1Q16 and 2Q16, operating-basis net interest income excluded $15M of discount accretion for both periods, and such results have not been revised. Footnotes to slide 4: 1 The 1Q17 operating-basis results included a pre-tax gain of approximately $30M on the sale of State Street's interest in Boston Financial Data Services, Inc. (BFDS) and International Financial Data Services Limited (IFDS Ltd), reflecting a change in our operating-basis presentation effective in 1Q17 to include gains/losses on sales of businesses. In 2Q16, under our historical presentation, operating-basis results excluded a $53M pretax gain on the sale of WM/Reuters business, and such results have not been revised. Beginning in 1Q17, management will no longer present discount accretion associated with former conduit securities as an operating-basis adjustment. Therefore, 1Q17 and 2Q17 operating-basis results included $5M and $6M, respectively, of discount accretion. In 2Q16, operating-basis net interest income excluded $15M of discount accretion, and such results have not been revised. 2 State Street’s common stock and other stock dividends, including the declaration, timing and amount thereof, remain subject to cons ideration 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, accelerated share repurchases, 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. Footnote to slides 5: 1 The 1Q17 operating-basis results included a pre-tax gain of approximately $30M on the sale of State Street's interest in Boston Financial Data Services, Inc. (BFDS) and International Financial Data Services Limited (IFDS Ltd), reflecting a change in our operating-basis presentation effective in 1Q17 to include gains/losses on sales of businesses. In 2Q16, under our historical presentation, operating-basis results excluded a $53M pretax gain on the sale of WM/Reuters business, and such results have not been revised. Beginning in 1Q17, management will no longer present discount accretion associated with former conduit securities as an operating-basis adjustment. Therefore, 1Q17 and 2Q17 operating-basis results included $5M and $6M, respectively, of discount accretion. In 2Q16, 3Q16 and 4Q16, operating-basis net interest income excluded $15M, $42M and $10M of discount accretion, respectively, and such results have not been revised. Footnote to slide 6: 1 The associated AUM includes assets from acquired clients invested into various SSGA funds and new business from these clients since the acquisition date. Footnote to slides 7 & 19: 1 The 1Q17 operating-basis results included a pre-tax gain of approximately $30M on the sale of State Street's interest in Boston Financial Data Services, Inc. (BFDS) and International Financial Data Services Limited (IFDS Ltd), reflecting a change in our operating-basis presentation effective in 1Q17 to include gains/losses on sales of businesses. In 2Q16, under our historical presentation, operating-basis results excluded a $53M pretax gain on the sale of WM/Reuters business, and such results have not been revised. Footnote to slide 8 & 20: 1 Beginning in 1Q17, management will no longer present discount accretion associated with former conduit securities as an operating-basis adjustment. Therefore, 1Q17 and 2Q17 operating-basis results included $5M and $6M, respectively, of discount accretion. In 2Q16, 3Q16 and 4Q16, operating-basis net interest income excluded $15M, $42M and $10M of discount accretion, respectively, and such results have not been revised. Slide Footnotes

23 Footnote to slides 9 & 21: 1 Total expenses of $2,143M for 4Q16 included $249M of accelerated compensation expense. Excluding this amount, total expenses for 4Q16 were $1,894M. Total expenses of $2,057M for 1Q17 included $154M of seasonal deferred incentive compensation expense for retirement-eligible employees and payroll taxes. Excluding this amount, total expenses for 1Q17 were $1,903M. Footnote to slide 10: 1 ASC 815 reporting tool adoption is part of a broader global reporting digitization effort to facilitate quicker, less manual reporting, including our tools and processes to address SEC Modernization. 2 The adoption percentage is calculated based on the current scope of funds that are required to conform with U.S. accounting standards codification (ASC) rule 815 – Derivatives and Hedging, which provides comprehensive guidance on derivative and hedging transactions, resulting in increased reporting requirements for impacted reporting entities, including for U.S. domiciled mutual funds. Footnotes to slide 11 & 13: 1 Estimated year-over-year pre-tax expense savings improvement relate only to 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 The operating-basis presentation of Beacon savings excludes restructuring charges, which are expected to be announced as Beacon progresses, including charges of $142M for 2016 and $78M for YTD2Q17 ($62M in 2Q17 and $16M in 1Q17). Footnotes to slide 12: 1 As of period-end where applicable. 2 Investment portfolio includes the amortized cost of transferred securities at the time they were transferred. 3 Unless otherwise specified, all capital ratios referenced on this slide and elsewhere in this presentation refer to State Street Corporation, or State Street, and not State Street Bank and Trust Company, or State Street Bank. The lower of 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 the addendum included with this presentation for a further description of these ratios and for reconciliations applicable to State Street’s estimated pro forma fully phased-in Basel III ratios. June 30, 2017 capital ratios are presented as of quarter-end and are preliminary estimates. 4 4Q16 and 2Q17 based on standardized approach, and 1Q17 based on advanced approach. 5 Estimated pro forma fully phased-in ratios as of June 30, 2017 (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 January 25, 2017, April 26, 2017 and July 26, 2017, respectively as applied to our businesses and operations as of December 31, 2016, March 31, 2017 and June 30, 2017, respectively. Refer to the addendum included with this presentation for reconciliations of these estimated pro forma fully phased-in ratios to our capital ratios calculated under the currently applicable regulatory requirements. 6 1Q17 based on Advanced Approach and 2Q17 based on standardized approach. 7 The estimated pro forma fully phased-in SLRs are as of December 31, 2016, March 31, 2017 and June 30, 2017, respectively (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, 2017, April 26, 2017 and July 26, 2017, respectively, and as applied to our businesses and operations as of December 31, 2016, March 31, 2017 and June 30, 2017, respectively. Refer to the addendum included with this presentation for reconciliations of these estimated pro forma fully phased-in SLRs to our SLRs under currently applicable regulatory requirements. Slide Footnotes

24 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 July 26, 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 income, 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; and the impact of monetary and fiscal policy in the United States and internationally on prevailing rates of interest and currency exchange rates in the markets in which we provide services to our clients; the credit quality, credit-agency ratings and fair values of the securities in our investment securities portfolio, a deterioration or downgrade of which could lead to other-than temporary impairment of 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 or reevaluate changes to the regulatory framework applicable to our operations, including implementation or modification 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, compliance programs, and changes in governmental enforcement approaches to perceived failures to comply with regulatory or legal obligations; our resolution plan, submitted to the Federal Reserve and FDIC in June 2017, 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 filed in June 2017 or 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; requirements to obtain the prior approval or non-objection of the Federal Reserve or other U.S. and non-U.S. regulators for the use, allocation or distribution of our capital or other specific capital actions or corporate activities, including, without limitation, acquisitions, investments in subsidiaries, dividends and stock purchases, without which our growth plans, distributions to shareholders, share repurchase programs or other capital or corporate initiatives may be restricted; changes in law or regulation, or the enforcement of law or regulation, that may adversely affect our business activities or those of our clients or our counterparties, and the products or services that we sell, including additional or increased taxes or assessments thereon, capital adequacy requirements, margin requirements and changes that expose us to risks related to the adequacy of our controls or compliance programs; economic or financial market disruptions in the U.S. or internationally, including those which may result from recessions or political instability; for example, the U.K.'s decision to exit from the European Union may continue to disrupt financial markets or economic growth in Europe or, similarly, financial markets may react sharply or abruptly to actions taken by the new 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 impact on our compliance and controls enhancement programs of the appointment of a monitor under the deferred prosecution agreement with the DOJ and compliance consultant expected to be appointed under a potential settlement with the SEC, including the potential for such monitor and compliance consultant to require changes to our programs or to identify other issues that require substantial expenditures, changes in our operations, or payments to clients or reporting to U.S. authorities; the results of our review of our billing practices, including additional 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; changes or potential changes in the amount of compensation we receive from clients for our services, and the mix of services provided by us that clients choose; the large institutional clients on which we focus are often able to exert considerable market influence, and this, combined with strong competitive market forces, subjects us to significant pressure to reduce the fees we charge, to potentially significant changes in our assets under custody and administration or our assets under management in the event of the acquisition or loss of a client, in whole or in part, and to potentially significant changes in our fee revenue in the event a client re-balances or changes its investment approach or otherwise re-directs assets to lower- or higher-fee asset classes; the potential for losses arising from our investments in sponsored investment funds; the possibility that our clients will incur substantial losses in investment pools for which we act as agent, 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; 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 evolving needs of our clients and to develop products that are responsive to such trends and profitable to us, the performance of and demand for the products and services we offer, and the potential for new products and services to impose additional costs on us and expose us to increased operational risk; 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 2016 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. Forward-looking statements

25 Non-GAAP measures In addition to presenting State Street’s financial results in conformity with U.S. generally accepted accounting principles, or GAAP, management also presents results on a non-GAAP, or "operating" basis, as it believes that this presentation supports additional meaningful analysis and comparisons of trends with respect to State Street’s business operations from period to period, as well as information (such as capital ratios calculated under regulatory standards scheduled to be effective in the future or other standards) that management also uses in evaluating State Street’s business and activities. Our operating-basis financial results adjust our GAAP-basis financial results to both: (1) exclude the impact of revenue and expenses outside of State Street’s normal course of business, such as restructuring charges; and (2) present revenue from non-taxable sources, such as interest income from tax-exempt investment securities and processing fees and other revenue associated with tax-advantaged adjustments, on a fully taxable-equivalent basis. Management believes that operating-basis financial information facilitates an investor's further understanding and analysis of State Street's financial performance and trends, including providing additional insight into our underlying margin and profitability, in addition to financial information prepared and reported in conformity with GAAP. The tax-equivalent adjustments allow for more meaningful comparisons of yields and margins on assets and the evaluation of investment opportunities with different tax profiles. Beginning with the first quarter of 2017, we are simplifying our operating-basis presentation of our financial results and will no longer exclude, as part of the non-ordinary course adjustment, the effects of gains/losses on sales of businesses or the discount accretion associated with former conduit securities. In the first quarter of 2017, operating-basis results included a pre-tax gain of approximately $30 million on the sale of our transfer agency joint venture interests. In the first and second quarters of 2017, operating-basis results included $5 million and $6 million, respectively, of discount accretion. These changes resulted in total increases in operating-basis revenue of $35 million and $6 million in the first and second quarters of 2017, respectively, relative to our historical operating-basis presentation. Note that in the second quarter of 2016, operating-basis results excluded a pre-tax gain of approximately $53 million on the sale of the WM/Reuters business. We believe that that these changes to our operating-basis presentation simplify the overall presentation of our financial results, making them easier to understand, while, overall, continuing to facilitate a useful and helpful additional understanding of our financial results. We also believe 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 may present 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. We provide 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 therefore, in general, is unable to provide a reconciliation of our operating-basis forward-looking financial estimates and expectations to a GAAP-basis presentation. 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”.

26 Available-for-sale (AFS) Available for sale security that is purchased with the intent of holding before it reaches maturity AUA Assets under administration AUCA Assets under custody and administration AUM Assets under management Bps Basis points Diluted earnings per share (EPS) Net income available to common shareholders divided by diluted average common shares outstanding ETF Exchange-trade fund Fee operating leverage Rate of growth of total fee revenue less the rate of growth of expenses, relative to the successive prior year period, as applicable GE Asset Management (GEAM) The acquired GE Asset Management operations Net interest income (NII) Income earned on interest bearing assets less interest paid on interest bearing liabilities; Net interest income was disclosed as net interest revenue prior to 1Q17 Net asset value (NAV) The value per share of a mutual fund or an ETF on a specific date or time Net interest margin (NIM) Net interest income divided by average interest-earning assets Operating leverage Rate of growth of total revenue less the rate of growth of total expenses, relative to the successive prior year period, as applicable Pre-tax operating margin Income before income tax expense divided by total revenue STP Straight through processing Return on equity (ROE) (Net income less dividends on preferred stock) divided by average common equity Year to date (YTD) The cumulative amount of time within a fiscal year up to the end of the quarter indicated (i.e., YTD2Q17 is equivalent to the six months ended June 30, 2017) Definitions