8-K

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 8-K
CURRENT REPORT

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


Date of Report (Date of earliest event reported): January 20, 2010

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 offices)	(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:

⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

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

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

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

Item 2.02     Results of Operations and Financial Condition.

On January 20, 2010, State Street Corporation issued a news release announcing its results of operations and related financial information for the fourth quarter of 2009.  A copy of that news release is furnished herewith as Exhibit 99.1, and is incorporated herein by reference.

In addition, a copy of a slide presentation pertaining to State Street’s investment portfolio as of December 31, 2009, which will be referenced in connection with the investor conference call to be held by State Street on January 20, 2010, is furnished with this 8-K as Exhibit 99.2.

Item 9.01     Financial Statements and Exhibits.

(d) Exhibits.

State Street Corporation’s news release dated January 20, 2010, announcing fourth quarter 2009 results of operations and related financial information, is furnished herewith as Exhibit 99.1, and a slide presentation pertaining to State Street’s investment portfolio which will be made available in connection with the investor conference call referenced in the January 20, 2010 news release, is furnished herewith as Exhibit 99.2.

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/ James J. Malerba
		Name:	James J. Malerba
		Title:	Executive Vice President and
			Corporate Controller
Date:	January 20, 2010

EXHIBIT INDEX

Exhibit No.	Description
99.1	News release dated January 20, 2010, announcing fourth quarter 2009 results of operations and related financial information.
99.2	Slide presentation pertaining to State Street’s investment portfolio as of December 31, 2009.

EX-99.1

Exhibit 99.1

State Street Reports Fourth-Quarter Earnings Per Share of $1.00

Total Revenue Increases 2% Compared to Third Quarter with Servicing Fees up 6% and Management Fees up 5%

Achieves Full-Year Positive Operating Leverage Compared to 2008

BOSTON--(BUSINESS WIRE)--January 20, 2010--State Street Corporation today announced fourth-quarter 2009 earnings per common share of $1.00 on revenue of $2.280 billion compared with $0.54 per share on revenue of $2.673 billion in the fourth quarter of 2008. Expenses in the fourth quarter of 2009 are $1.565 billion, compared with $2.311 billion in the fourth quarter of 2008. For the fourth quarter of 2009, return on common shareholders’ equity was 14.0%, up from 8.4% in the fourth quarter of 2008.

Compared to the third quarter of 2009, fourth-quarter 2009 results improved from $0.66 per share on revenue of $2.236 billion. Expenses in the third quarter of 2009 were $1.733 billion. For the third quarter of 2009, return on common shareholders’ equity was 10.2%.

The 2009 results included an after-tax extraordinary loss of $(3.684) billion or $(7.77) per share related to the effect of the May 2009 consolidation of the State Street-administered asset-backed commercial paper conduits onto the Company’s balance sheet. In 2009, State Street reported full-year earnings per share of $3.46, before the extraordinary loss, on revenue of $8.640 billion compared with earnings per share of $4.30 on revenue of $10.693 billion in 2008. Including the extraordinary loss, the full-year 2009 loss per share was $(4.31). Return on common shareholders’ equity was 13.2% in 2009 before the extraordinary loss, compared with 14.8% in 2008.

In addition to presenting State Street’s financial results in conformity with U.S. generally accepted accounting principles (GAAP), management also presents results on an “operating basis” in order to highlight comparable financial trends and other characteristics with respect to State Street’s ongoing business operations from period to period. A full reconciliation of operating-basis results to GAAP results is included in the addendum at the end of this press release. Also see “Additional Information.” Net interest revenue on an operating basis for all periods is presented on a fully taxable-equivalent basis.

Operating-basis results for 2009 exclude a pre-tax provision of $(250) million or $(0.37) per share related to an increase in the reserve established in 2007 to address legal exposure related to losses incurred by investors in certain fixed-income strategies managed by State Street Global Advisors, $(106) million or $(0.22) per share related to repayment of the U.S. Treasury’s TARP Capital Purchase Program investment and $(49) million, or $(0.06) per share, of pre-tax merger and integration costs associated with the 2007 acquisition of Investors Financial Services Corp., which includes the fourth-quarter and third-quarter 2009 effects of $(9) million or $(0.01) per share and $(11) million or $(0.01) per share, respectively, for pre-tax merger and integration costs associated with that acquisition.

“Operating-basis” results for full-year 2008 exclude previously reported net pre-tax effects of $(751) million, or $(1.31) per share and for the fourth quarter of 2008 exclude previously reported net pre-tax effects of $(723) million, or $(1.04) per share. These items, including the related tax effects, are more fully described in the reconciliations of full-year and fourth-quarter 2008 operating-basis results in the addendum at the end of this press release.

The table below provides a summary of selected financial information and key ratios for the indicated periods, presented on an operating basis where noted. The tier 1 capital and tier 1 leverage ratios are capital ratios used regularly by bank regulatory authorities to evaluate the Company’s capital adequacy. The tier 1 common ratio was used by the Federal Reserve in connection with its Supervisory Capital Assessment Program. The TCE and TCE/risk-weighted assets ratios are other capital ratios management believes provide additional context for understanding and assessing the Company’s capital adequacy. Unless otherwise specified, all capital ratios referenced in this press release refer to State Street Corporation and not State Street Bank and Trust Company. See “Additional Information” for a further description of these ratios and the addendum at the end of this press release for reconciliations applicable to the TCE ratios.

	Q4 2009			Q3 2009			Increase/(Decrease)					Q4 2008			Increase/(Decrease)
Selected Financial Information and Key Ratios
(Dollars in millions)
Total revenue(1)	$	2,312		$	2,267		$	45		2.0	%	$	2,641		$	(329	)	(12.5	%)
Total expenses(1)		1,556			1,472			84		5.7	%		1,528			28		1.8	%
Total assets (2)		157,946			163,277			(5,331	)	(3.3	%)		173,631			(15,685	)	(9.0	%)
Unrealized loss on investment Portfolio, after-tax(2)		(2,286	)		(2,985	)		699		23.4	%		(6,316	)		4,030		63.8	%
AUCM (dollars in billions):
Assets under custody and administration(2)(3)	$	18,795		$	17,935		$	860		4.8	%	$	15,907		$	2,888		18.2	%
Assets under management(2)		1,911			1,735			176		10.1	%		1,444			467		32.3	%
Earnings per common share(1)	$	0.99		$	1.05		$	(0.06	)	(5.7	%)	$	1.58		$	(0.59	)	(37.3	%)
Return on common equity(1)		13.8	%		16.2	%	(240) bps						24.3	%	(1050) bps
Tier 1 capital ratio(2)		17.5	%		15.3	%	220 bps						20.3	%	(280) bps
Tier 1 leverage ratio(2)		8.5	%		8.0	%	50 bps						7.8	%	70 bps
Tier 1 common ratio(2)		15.3	%		13.3	%	200 bps						15.5	%	(20) bps
TCE ratio(2)		6.6	%		5.6	%	100 bps						4.6	%	200 bps
TCE/RWA ratio(2)		12.6	%		10.2	%	240 bps						7.3	%	530 bps
(1) Presented on an operating basis.
(2) As of period end.
(3) Includes assets under custody of $13,748 billion, $13,260 billion, and $12,041 billion, respectively as of the end of Q4 2009, Q3 2009 and Q4 2008.

Operating-basis earnings per common share in the fourth quarter of 2009 are $0.99 per share down 37.3% from $1.58 per share in the fourth quarter of 2008. Operating-basis revenue of $2.312 billion in the fourth quarter of 2009 is down 12.5% from $2.641 billion in the fourth quarter a year ago. Operating-basis expenses of $1.556 billion in the fourth quarter of 2009 are up 1.8% from $1.528 billion in the year-ago quarter. For the fourth quarter of 2009, operating-basis return on common shareholders’ equity is 13.8%, down from 24.3% for the fourth quarter of 2008.

Operating-basis results for the full-year 2009 include earnings per share of $4.11 on revenue of $8.759 billion compared with earnings per share of $5.61 on revenue of $10.477 billion in 2008. Operating basis expenses for the full-year 2009 are $5.667 billion compared with $6.780 billion in 2008.

Total assets are $158 billion at December 31, 2009, compared with $163 billion at September 30, 2009 and $174 billion at December 31, 2008. Excluding $22 billion in excess deposits held at the Federal Reserve and other central banks at December 31, 2009, $22 billion at September 30, 2009, and $52 billion at December 31, 2008, the normalized balance sheet was $136 billion at December 31, 2009, compared to a normalized balance sheet of $141 billion at September 30, 2009 and $122 billion as of December 31, 2008. State Street’s regulatory capital ratios continue to be strong as of December 31, 2009, with the Company’s tier 1 capital ratio at 17.5% and leverage ratio at 8.5%. In addition, the Company’s tier 1 common ratio is 15.3%, its TCE to risk-weighted assets ratio is 12.6%, and its TCE ratio is 6.6%, well ahead of the projected TCE ratio of 4.91% the Company targeted in February 2009 at its Investor and Analyst Forum, which had been adjusted for consolidation of the asset-backed commercial paper conduits. This performance is due to organic capital generation, the successful equity raise in May, and the improvement in unrealized losses in the investment portfolio.

At December 31, 2009, the after-tax, unrealized mark-to-market losses in the investment portfolio are $2.29 billion, down from $2.98 billion at September 30, 2009, and down about 65% from $6.32 billion as of December 31, 2008.

Ronald E. Logue, State Street's chairman and chief executive officer, said, "In 2009 we focused on strengthening our capital, servicing our clients, and controlling expenses. For the full year, we added $1.13 trillion in assets to be serviced as well as $248 billion in net new business in asset management. Also, on an operating basis, we achieved full-year positive operating leverage compared to 2008. In particular, investment manager operations outsourcing, alternative investment servicing, as well as passive management and ETF strategies generated new business and, based on the current pipeline, that trend is continuing. Our core business momentum also continues; on a quarter-over-quarter basis, we grew our servicing fee and management fee revenue, and in the fourth quarter we announced two proposed cash acquisitions, that of the securities services business of Intesa Sanpaolo, a premier provider of investment services in Italy and Luxembourg and that of Mourant International Finance Administration, a leading servicer of alternative investment servicing.”

Joseph L. Hooley, president and chief operating officer added, “Given the past year’s quarterly momentum in servicing fee and management fee revenue, we are increasingly confident in our ability to grow revenue during 2010. However, we continue to face headwinds from the impact of market-driven revenue and expect the transition in market-driven revenue that began in 2009 to continue into 2010. Including discount accretion associated with the former conduit assets, we expect operating-basis earnings per share in 2010 to be modestly below the lower end of our 10 to 15 percent range. However, to create more transparency and to underscore our confidence in our core businesses, going forward, we will report our operating-basis financial results excluding both merger and integration costs as well as the impact of conduit discount accretion. On this basis, 2009 operating-basis revenue would have been $8.138 billion and operating-basis earnings per share would have been $3.32. We expect our 2010 operating-basis earnings per share, excluding merger and integration costs and conduit discount accretion, to be only slightly above the level of 2009, reflecting in part increased outstanding average shares.”

Hooley concluded, “We begin 2010 from a position of strength. We believe we are well positioned globally and that, over economic and market cycles, we will maintain our long-term financial goals of operating-basis revenue growth of 8 percent to 12 percent, growth in operating-basis earnings per share of 10 percent to 15 percent, and operating-basis return on equity of between 14 percent and 17 percent.”

In 2009, discount accretion of $621 million, or $0.79 per share, contributed to State Street’s capital strength, and the Company expects about $900 million, or $1.08 per share, in 2010, and expects about $5.3 billion in total on a pre-tax basis to accrete into revenue over the life of the assets, based on anticipated pre-payment speeds, credit quality and assuming the company holds the securities to maturity.

FOURTH-QUARTER 2009 RESULTS VS. YEAR-AGO FOURTH QUARTER

Servicing fees are up 5% to $882 million from $842 million in last year’s fourth quarter. The increase is attributable primarily to the increase in daily average equity valuations and new business. Total assets under custody and administration are $18.795 trillion at December 31, 2009, up 18%, compared with $15.907 trillion at December 31, 2008. Daily average values for the S&P 500 Index are up 19% and the MSCI^® EAFE Index^SM increased approximately 28% from the fourth quarter of 2008.

Investment management fees, generated by State Street Global Advisors, are $231 million, up 11% from $209 million in the year-ago quarter. The increase in management fees is attributable primarily to the increase in average month-end equity valuations, as well as net new business, with the increase in assets partly offset by a change in asset mix. Average month-end equity valuations are up about 17% as measured by the S & P 500 and are up 28% as measured by the MSCI EAFE index^SM. Total assets under management at December 31, 2009, are $1.911 trillion, up 32% compared to $1.444 trillion at December 31, 2008.

Trading services revenue, which includes foreign exchange trading revenue and brokerage and other fees, is $270 million for the fourth quarter of 2009, down 35% from $418 million in the fourth quarter a year-ago. The 57% decrease in foreign exchange revenue is primarily due to lower volatility and lower volumes. Brokerage and other fees increased 47% due primarily to strength in transition management and increases in electronic trading.

Securities finance revenue is $83 million in the quarter, down 75% from $329 million in the year-ago fourth quarter due primarily to compressed spreads as well as lower volumes.

Processing fees and other is $60 million, down 28% from $83 million in the fourth quarter of 2008 due to several factors, none of which is material.

Net interest revenue on an operating basis is $729 million, a decrease of 10% from $811 million in the year-ago fourth quarter due primarily to the impact of the continuing low interest-rate environment, and the decline in customer balances from the abnormally high levels in the fourth quarter of 2008, offset partially by the impact of discount accretion from the consolidated conduit assets. Net interest margin of 235 basis points in the fourth quarter was up slightly from the fourth quarter of 2008; excluding discount accretion, the net interest margin would have been 161 basis points. The net interest margin for the full year is 220 basis points including discount accretion and would have been 169 basis points excluding discount accretion.

In the quarter, due to the improving markets, we recorded $108 million of net gains from sales of securities, partially offset by $51 million of other-than-temporary impairment related to credit, resulting in $57 million of net gains related to investment securities. In addition, we recorded a $35 million provision for loan losses, primarily related to commercial real estate exposures.

Operating-basis expenses in the fourth quarter of 2009 increased to $1.556 billion, up 1.8% from $1.528 billion in the year-ago quarter, primarily as a result of a 13% increase in salaries and benefits. In the fourth quarter of 2008, we reversed approximately 50% of previously accrued full-year incentive compensation, resulting in a low level of salaries and benefits expense for the quarter. Transaction processing expense of $158 million increased 9% attributable to higher volumes in the investment servicing business, offset partially by a 7% reduction in occupancy expense, from $124 million to $115 million. Other expenses declined 17%, from $398 million to $329 million partially due to a lower level of governmental fees paid in 2009 compared to 2008.

The effective tax rate on operating-basis earnings for the fourth quarter of 2009 is 28.5%, down from 35.3% on the same basis for the fourth quarter of 2008. The decrease in the rate is the result of an increase in the proportion of earnings from non-U.S. subsidiaries where the intention is to reinvest the earnings indefinitely overseas, as well as to certain adjustments in prior year tax accruals. The effective tax rate on operating-basis earnings for the full year 2010 is expected to be approximately 30%.

FOURTH-QUARTER 2009 RESULTS VS. THIRD QUARTER 2009

The following information is presented on an operating basis. Earnings per common share in the fourth quarter of 2009 are $0.99, a decrease of 5.7% compared with $1.05 in the third quarter of 2009. Total revenue in the fourth quarter of $2.312 billion, is up 2.0% from $2.267 billion in the third quarter of 2009. Total expenses for the fourth quarter of 2009 are $1.556, up 5.7% from $1.472 billion in the third quarter of 2009. Return on common shareholders’ equity of 13.8% in the fourth quarter compares with 16.2% in the third quarter.

The table below provides the components of operating-basis revenue:

Operating-Basis Revenue					Increase/(Decrease)
(Dollars in millions)	Q4 2009		Q3 2009		$			%
Servicing fees	$	882	$	833	$	49		5.9	%
Investment management fees		231		219		12		5.5
Trading services revenue		270		269		1		0.4
Securities finance revenue		83		105		(22	)	(21.0	)
Processing fees and other revenue		60		45		15		33.3
Net interest revenue, fully-taxable equivalent basis(1)		729		754		(25	)	(3.3	)
Gains related to investment securities, net		57		42		15		35.7
Total Operating-Basis Revenue	$	2,312	$	2,267	$	45		2.0	%

(1) The fourth quarter of 2009 and the third quarter of 2009 include $32 million and $31 million tax-equivalent adjustments, which increased GAAP-basis net interest revenue of $697 million and $723 million, respectively, for the periods.

Servicing fees are $882 million, up 6% from $833 million in the third quarter due primarily to new business as well as the increase in daily average equity valuations. Management fees are $231 million up 5% from $219 million primarily due to the increase in the average month-end equity valuations, and net new business. Trading services revenue is $270 million, compared to $269 million. Securities finance revenue is $83 million, down 21% from $105 million in the prior quarter primarily due to compressed spreads, partially offset by slightly increased volumes. Processing fees and other revenue increased from $45 million to $60 million. Net interest revenue on a fully taxable-equivalent basis is $729 million, down 3% from $754 million due to a lower level of discount accretion ($230 million versus $279 million) caused by the absence of one-time pay-downs and slower prepayment rates, offset partially by the impact of the investment strategy which we began to execute in the third quarter.

The table below provides the components of operating-basis expenses:

Operating-Basis Expenses					Increase/(Decrease)
(Dollars in millions)	Q4 2009		Q3 2009		$			%
Salaries and employee benefits	$	791	$	819	$	(28	)	(3.4	)
Information systems and communications		163		165		(2	)	(1.2	)
Transaction processing services		158		148		10		6.8
Occupancy		115		118		(3	)	(2.5	)
Other		329		222		107		48.2
Total Operating-Basis Expenses	$	1,556	$	1,472	$	84		5.7	%

Compared to the third quarter of 2009, salaries and employee benefits expense decreased 3% to $791 million from $819 million primarily due to a $50 million decrease in discretionary cash incentive compensation accruals recorded in the fourth quarter. Transaction processing expenses increased 7% due to higher volumes in the investment servicing business and other expenses increased 48% to $329 million due primarily to an adverse judgment of $60 million rendered by a Netherlands court in connection with SSgA’s appointment of Lehman Brothers as prime broker for certain investment funds, and other securities processing costs. All other lines were approximately flat on a quarter-to-quarter basis.

ADDITIONAL INFORMATION

All per share amounts represent fully diluted earnings per common share. Return on common shareholders’ equity is determined by dividing annualized net income available to common shareholders by average common shareholders’ equity for the period. Positive operating leverage is defined as the excess rate of growth of total revenue over the rate of growth of total expenses, each determined on an operating basis.

This press release includes financial information presented on a GAAP basis as well as on an operating basis. Management measures and compares certain financial information on an operating basis, as it believes that this presentation supports meaningful comparisons from period to period and the analysis of comparable financial trends with respect to State Street’s normal ongoing business operations. Management believes that operating-basis financial information, which reports revenue from non-taxable sources on a fully taxable-equivalent basis and excludes the impact of revenue and expenses outside of the normal course of business, facilitates an investor’s understanding and analysis of State Street’s underlying financial performance and trends in addition to financial information prepared in accordance with GAAP. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. A full reconciliation of operating-basis results to GAAP results is included in the addendum at the end of this press release.

Management believes that the use of other non-GAAP financial measures in the calculation of identified capital ratios is useful to understanding State Street’s capital position and of interest to investors. Below is a description of, and other information with respect to, the capital ratios referenced in this press release.

• The tier 1 risk-based capital, or tier 1 capital, and tier 1 leverage ratios, as applicable, are each calculated in accordance with applicable bank regulatory requirements and, as permitted, exclude the impact of commercial paper purchased under the Federal Reserve Bank of Boston’s AMLF.
• The tier 1 risk-based common, or tier 1 common, ratio is calculated by dividing (a) tier 1 capital less non-common elements including qualifying perpetual preferred stock, qualifying minority interest in subsidiaries and qualifying trust preferred securities, by (b) risk-weighted assets, which assets are calculated in accordance with applicable bank regulatory requirements. The tier 1 common ratio is not required by GAAP or on a recurring basis by bank regulations. However, this ratio was used by the Federal Reserve in connection with its stress test administered to the 19 largest U.S. bank holding companies under the Supervisory Capital Assessment Program, the results of which were announced on May 7, 2009. Although we understand that the Federal Reserve does not intend to prospectively require calculation of the tier 1 common ratio, due to the recent timing of the Supervisory Capital Assessment Program, management is currently monitoring this ratio, along with the other capital ratios described in this press release, in evaluating State Street’s capital levels and believes that, at this time, the ratio may be of interest to investors.

Reconciliations with respect to unaudited tier 1 common capital as of December 31, 2009, September 30, 2009 and December 31, 2008 are provided in the addendum at the end of this press release.

• The ratio of tangible common equity to adjusted tangible assets, or 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 commercial paper purchased under the AMLF and 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 bank 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. Reconciliations with respect to the calculation of the unaudited TCE ratio as of December 31, 2009, September 30, 2009, and December 31, 2008 are provided in the addendum at the end of this press release.
• The ratio of tangible common equity to risk-weighted assets, or TCE/RWA ratio, is calculated by dividing total consolidated common shareholders’ equity (reduced by goodwill and other intangible assets net of related deferred taxes) by total risk-weighted assets (determined in accordance with applicable bank regulatory requirements). As permitted by bank regulations, total risk-weighted assets exclude commercial paper purchased under the AMLF. The TCE/RWA ratio is not required by GAAP or by bank 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/RWA ratio, our TCE/RWA ratio is not necessarily comparable to similar capital measures disclosed or used by other companies in the financial services industry. Tangible common equity is a non-GAAP financial measure and should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. Reconciliations with respect to the calculation of the unaudited TCE/RWA ratio as of December 31, 2009, September 30, 2009, and December 31, 2008 are included in the addendum at the end of this press release.

INVESTOR CONFERENCE CALL

State Street will webcast an investor conference call today, Wednesday, January 20, 2010, at 9:00 a.m. EDT, available at www.statestreet.com/stockholder. The conference call will also be available via telephone, at +1 706/679-5594 or +1 888/391-4233 (Conference ID #49105957). Recorded replays of the conference call will be available on the web site, and by telephone at +1 706/645-9291 or +1 800/642-1687 (Conference ID#49105957) , beginning approximately two hours after the call’s completion. The telephone replay will be available for two weeks following the conference call. This press release, presentation materials referred to on the conference call, and additional financial information are available on State Street’s website, at www.statestreet.com/stockholder under “Investor Information--Latest News, Annual Reports and Financial Trends—Financial Trends,” and “Investor Events and Presentations.”

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 $18.795 trillion in assets under custody and administration and $1.911 trillion in assets under management at December 31, 2009, State Street operates in 25 countries and more than 100 geographic markets and employs 27,310 worldwide. For more information, visit State Street’s web site at www.statestreet.com or call +1 877/639-7788 [NEWS STT] toll-free in the United States and Canada, or +1 678/999-4577 outside those countries.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements as defined by United States securities laws, including statements about our about our goals and expectations regarding our business, financial condition, results of operations and strategies, the financial and market outlook, governmental and regulatory initiatives and developments, and the business environment. 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 the date of this press release.

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

• financial market disruptions and the economic recession, whether in the U.S. or internationally, and monetary and other governmental actions, including regulation, taxes and fees, designed to address or otherwise be responsive to such disruptions and recession, including actions taken in the U.S. and internationally to address the financial and economic disruptions that began in 2007;
• increases in the potential volatility of, or declines in the levels of, our net interest revenue, changes in the composition of the assets on our consolidated balance sheet and the possibility that we may be required to change the manner in which we fund those assets;
• the financial strength and continuing viability of the counterparties with which we or our customers do business and to which we have investment, credit or financial exposure;
• the liquidity of the U.S. and international securities markets, particularly the markets for fixed-income securities, and the liquidity requirements of our customers;
• 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 income statement recognition of an impairment loss;
• the maintenance of credit agency ratings for our debt and depository obligations as well as the level of credibility of credit agency ratings;
• the ability to complete our announced and pending acquisitions, including the ability to obtain regulatory approvals in multiple jurisdictions and the satisfaction of other closing conditions;
• the risks that acquired businesses will not be integrated successfully, or will take longer than anticipated, that expected synergies will not be achieved or unexpected disynergies will be experienced, that customer 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 relationships with customers, employees or regulators;
• the possibility of our customers incurring substantial losses in investment pools where we act as agent, and the possibility of further general reductions in the valuation of assets;
• our ability to attract deposits and other low-cost, short-term funding;
• potential changes to the competitive environment, including changes due to the effects of consolidation, extensive and changing government regulation and perceptions of State Street as a suitable service provider or counterparty;
• the level and volatility of interest rates and the performance and volatility of securities, credit, currency and other markets in the U.S. and internationally;
• our ability to measure the fair value of the investment securities on our consolidated balance sheet;
• the results of litigation, government investigations and similar disputes and, in particular, the effect of current or potential proceedings concerning State Street Global Advisors’, or SSgA’s, active fixed-income strategies and other investment products;
• the enactment of legislation and changes in regulation and enforcement that impact us and our customers;
• adverse publicity or other reputational harm;
• our ability to pursue acquisitions, strategic alliances and divestures, finance future business acquisitions and obtain regulatory approvals and consents for acquisitions;
• the performance and demand for the products and services we offer, including the level and timing of withdrawals from our collective investment products;
• our ability to grow revenue, attract and/or retain and compensate highly skilled people, control expenses and attract the capital necessary to achieve our business goals and comply with regulatory requirements;
• our ability to control operating risks, information technology systems risks and outsourcing risks, the possibility of errors in the quantitative models we use to manage our business and the possibility that our controls will fail or be circumvented;
• the potential for new products and services to impose additional costs on us and expose us to increased operational risk, and our ability to protect our intellectual property rights;
• changes in government regulation or new legislation, which may increase our costs, expose us to risk related to compliance or impact our customers;
• 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 impact 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 2008 Annual Report on Form 10-K, our Current Report on Form 8-K dated May 18, 2009, 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 press release speak only as of the date hereof, January 20, 2010, and we do not undertake efforts to revise those forward-looking statements to reflect events after this date.

Earnings Press Release Addendum
Consolidated Financial Highlights
December 31, 2009
		Quarters Ended									% Change
											Q4 2009			Q4 2009
(Dollars in millions, except per share amounts or where otherwise noted)		December 31,			September 30,			December 31,			vs.			vs.
		2009			2009			2008			Q3 2009			Q4 2008
Revenue:
Fee revenue	$	1,526		$	1,471		$	1,881
Net interest revenue		697			723			843
Net gains from sales of available-for-sale securities		108			141			27
Losses from other-than-temporary impairment		(51	)		(99	)		(78	)
Total Revenue		2,280			2,236			2,673			2		%	(15	)	%
Provision for Loan Losses		35			16			-
Total Expenses:
Expenses from operations		1,556			1,472			1,528			6			2
Non-operating provisions		-			250			756		(1)
Merger and integration costs		9			11			27			(18	)		(67	)
Net Income		498			327			256			52			95
Net Income Available to Common Shareholders		498			327			234			52			113
Diluted Earnings Per Common Share		1.00			.66			.54			52			85
Average Diluted Common Shares Outstanding (in thousands)		497,615			498,290			431,902
Cash Dividends Declared Per Common Share	$	.01		$	.01		$	.24
Closing Price Per Share of Common Stock (at quarter end)		43.54			52.60			39.33
Ratios:
Return on common equity		14.0		%	10.2		%	8.4		%
Net interest margin, fully taxable-equivalent basis		2.35			2.47			2.00
Tier 1 risk-based capital		17.5			15.3			20.3
Total risk-based capital		18.8			16.5			21.6
Tier 1 leverage		8.5			8.0			7.8
Tier 1 common to risk-weighted assets (2)		15.3			13.3			15.5
Tangible common equity to tangible assets (2)		6.6			5.6			4.6
Tangible common equity to risk-weighted assets (2)		12.6			10.2			7.3
At Quarter End:
Assets Under Custody and Administration(3) (AUA) (in trillions)	$	18.79		$	17.94		$	15.91
Assets Under Management (AUM) (in trillions)		1.91			1.74			1.44
(1) Composed of $450 million charge associated with SSgA Stable Value Funds and $306 million of restructuring costs associated with reduction in workforce and other cost initiatives.
(2) Refer to accompanying reconciliation for additional information.
(3) Includes assets under custody of $13.75 trillion, $13.26 trillion, and $12.04 trillion, respectively.
	Years Ended							% Change
								2009
		December 31,			December 31,			vs.
(Dollars in millions, except per share amounts)		2009			2008			2008
Revenue:
Fee revenue	$	5,935		$	7,747
Net interest revenue		2,564			2,650
Net gains from sales of available-for-sale securities		368			68
Losses from other-than-temporary impairment		(227	)		(122	)
Gain on sale of CitiStreet interest, net of exit and other associated costs		-			350
Total Revenue		8,640			10,693			(19	)	%
Provision for Loan Losses		149			-
Total Expenses:
Expenses from operations		5,917			7,736			(24	)
Merger and integration costs		49			115			(57	)
Income Before Extraordinary Loss		1,803			1,811			-
Extraordinary Loss, Net of Tax		(3,684	)		-
Net Income (Loss)		(1,881	)		1,811			(204	)
Net Income Before Extraordinary Loss Available to Common Shareholders		1,640			1,789			(8	)
Net Income (Loss) Available to Common Shareholders		(2,044	)		1,789			(214	)
Diluted Earnings Per Common Share Before Extraordinary Loss	$	3.46		$	4.30			(20	)
Diluted Earnings (Loss) Per Common Share		(4.31	)		4.30			(200	)
Average Diluted Common Shares Outstanding (in thousands):		474,003			416,100
Cash Dividends Declared Per Common Share	$	.04		$	.95			(96	)
Return on Common Equity Before Extraordinary Loss		13.2		%	14.8		%
Net interest margin, fully taxable-equivalent basis		2.19			2.08

STATE STREET CORPORATION
Earnings Press Release Addendum
SELECTED CONSOLIDATED FINANCIAL INFORMATION
Quarters and Years Ended December 31, 2009 and December 31, 2008
	Quarters Ended									Years Ended
	December 31,			December 31,						December 31,			December 31,
(Dollars in millions, except per share amounts)	2009			2008			% Change			2009			2008				% Change
Fee Revenue:
Servicing fees	$	882		$	842		5		%	$	3,276			$	3,745		(13	)	%
Management fees		231			209		11				824				1,028		(20	)
Trading services		270			418		(35	)			1,094				1,467		(25	)
Securities finance		83			329		(75	)			570				1,230		(54	)
Processing fees and other		60			83		(28	)			171				277		(38	)
Total fee revenue		1,526			1,881		(19	)			5,935				7,747		(23	)
Net Interest Revenue:
Interest revenue		877			1,427		(39	)			3,286				4,879		(33	)
Interest expense		180			584		(69	)			722				2,229		(68	)
Net interest revenue (1)		697			843		(17	)			2,564				2,650		(3	)
Gains (Losses) related to investment securities, net:
Net gains from sales of available-for-sale securities		108			27						368				68
Losses from other-than-temporary impairment		(257	)		(78	)					(1,155	)			(122	)
Losses not related to credit		206			-						928				-
Gains (Losses) related to investment securities, net		57			(51	)					141				(54	)
Gain from sale of CitiStreet interest, net of exit and other associated costs		-			-						-				350
Total revenue		2,280			2,673		(15	)			8,640				10,693		(19	)
Provision for loan losses		35			-						149				-
Expenses:
Salaries and employee benefits		791			698		13				3,037				3,842		(21	)
Information systems and communications		163			163		-				656				633		4
Transaction processing services		158			145		9				583				644		(9	)
Occupancy		115			124		(7	)			475				465		2
Provision for legal exposure		-			-						250				-
Provision for investment account infusion		-			450						-				450
Restructuring chargers		-			306						-				306
Merger and integration costs		9			27		(67	)			49				115		(57	)
Other		329			398		(17	)			916				1,396		(34	)
Total expenses		1,565			2,311		(32	)			5,966				7,851		(24	)
Income before income tax expense and extraordinary loss		680			362		88				2,525				2,842		(11	)
Income tax expense		182			106						722				1,031
Income before extraordinary loss		498			256		95				1,803				1,811		-
Extraordinary loss, net of tax		-			-						(3,684	)			-
Net income (loss)	$	498		$	256		95			$	(1,881	)		$	1,811		(204	)
Adjustments to net income (loss):
Prepayment of preferred stock discount	$	-		$	-					$	(106	)		$	-
Dividend on preferred stock		-			(18	)					(46	)			(18	)
Accretion of preferred stock discount		-			(4	)					(11	)			(4	)
		-			(22	)					(163	)			(22	)
Net income before extraordinary loss available to common shareholders
	$	498		$	234		113			$	1,640			$	1,789		(8	)
Net income (loss) available to common shareholders	$	498		$	234		113			$	(2,044	)		$	1,789		(214	)
Earnings Per Common Share Before Extraordinary Loss:
Basic(2)	$	1.01		$	.54		87			$	3.50			$	4.32		(19	)
Diluted		1.00			.54		85				3.46				4.30		(20	)
Earnings (Loss) Per Common Share:
Basic (3)	$	1.01		$	.54		87			$	(4.32	)		$	4.32		(200	)
Diluted		1.00			.54		85				(4.31	)			4.30		(200	)
Average Common Shares Outstanding (in thousands):
Basic		493,459			431,042						470,602				413,182
Diluted		497,615			431,902						474,003				416,100
Selected consolidated financial information presented above was prepared in accordance with accounting principles generally accepted in the United States.
(1) Net interest revenue on a fully taxable-equivalent basis was $729 million and $871 million for the quarters ended December 31, 2009 and 2008, respectively, and $2.69 billion and $2.75 billion for the years ended December 31, 2009 and 2008, respectively. These amounts include tax-equivalent adjustments of $32 million and $28 million for the quarters ended December 31, 2009 and 2008, respectively, and $126 million and $104 million for the years ended December 31, 2009 and 2008 respectively.
(2) Basic earnings per common share before extraordinary loss on distributed earnings were $.01 and $.24 for the quarters ended December 31, 2009 and 2008, respectively, and $.27 and $.94 for the years ended December 31, 2009 and 2008, respectively. Basic earnings per common share before extraordinary loss on undistributed earnings were $1.00 and $.30 for the quarters ended December 31, 2009 and 2008, respectively, and $3.23 and $3.38 for the years ended December 31, 2009 and 2008, respectively.
(3) Basic earnings per common share on distributed earnings were $.01 and $.24 for the quarters ended December 31, 2009 and 2008, respectively, and $.27 and $.94 for the years ended December 31, 2009 and 2008, respectively. Basic earnings per common share on undistributed earnings were $1.00 and $.30 for the quarters ended December 31, 2009 and 2008, respectively, and ($4.59) and $3.38 for the years ended December 31, 2009 and 2008, respectively.

STATE STREET CORPORATION
Earnings Press Release Addendum
SELECTED CONSOLIDATED FINANCIAL INFORMATION
Quarters Ended December 31, 2009 and September 30, 2009
	Quarters Ended
		December 31,			September 30,
(Dollars in millions, except per share amounts)		2009			2009		% Change
Fee Revenue:
Servicing fees	$	882		$	833		6		%
Management fees		231			219		5
Trading services		270			269		-
Securities finance		83			105		(21	)
Processing fees and other		60			45		33
Total fee revenue		1,526			1,471		4
Net Interest Revenue:
Interest revenue		877			898		(2	)
Interest expense		180			175		3
Net interest revenue (1)		697			723		(4	)
Gains (Losses) related to investment securities, net:
Net gains from sales of available-for-sale securities		108			141		(23	)
Losses from other-than-temporary impairment		(257	)		(828	)	(69	)
Losses not related to credit		206			729		(72	)
Gains (Losses) related to investment securities, net		57			42		36
Total revenue		2,280			2,236		2
Provision for loan losses		35			16		119
Expenses:
Salaries and employee benefits		791			819		(3	)
Information systems and communications		163			165		(1	)
Transaction processing services		158			148		7
Occupancy		115			118		(3	)
Provision for legal exposure		-			250		(100	)
Merger and integration costs		9			11		(18	)
Other		329			222		48
Total expenses		1,565			1,733		(10	)
Income before income tax expense		680			487		40
Income tax expense		182			160		14
Net income	$	498		$	327		52
Earnings Per Common Share:
Basic (2)	$	1.01		$	.66		53
Diluted		1.00			.66		52
Average Common Shares Outstanding (in thousands):
Basic		493,459			493,453
Diluted		497,615			498,290
Selected consolidated financial Information presented above was prepared in accordance with accounting principles generally accepted in the United States.
(1) Net interest revenue on a fully taxable-equivalent basis was $729 million and $754 million for the quarters ended December 31, 2009 and September 30, 2009, respectively. These amounts include tax-equivalent adjustments of $32 million and $31 million for the quarters ended December 31, 2009 and September 30, 2009, respectively.
(2) Basic earnings per common share on distributed earnings were $.01 for both the quarters ended December 31, 2009 and September 30, 2009, and on undistributed earnings were $1.00 and $.65 for the quarters ended December 31, 2009 and September 30, 2009, respectively.

STATE STREET CORPORATION
Earnings Press Release Addendum
SELECTED CONSOLIDATED OPERATING-BASIS FINANCIAL INFORMATION
Quarters and Years Ended December 31, 2009 and December 31, 2008
	Quarters Ended (1)										Years Ended (1)
	December 31,			December 31,							December 31,			December 31,
(Dollars in millions, except per share amounts)	2009			2008				% Change			2009			2008				% Change
Fee Revenue:
Servicing fees	$	882		$	842			5		%	$	3,276		$	3,745			(13	)	%
Management fees		231			209			11				824			1,028			(20	)
Trading services		270			418			(35	)			1,094			1,467			(25	)
Securities finance		83			329			(75	)			570			1,230			(54	)
Processing fees and other		60			83			(28	)			171			277			(38	)
Total fee revenue		1,526			1,881			(19	)			5,935			7,747			(23	)
Net Interest Revenue:
Interest revenue, operating basis		909			1,133			(20	)			3,388			4,714			(28	)
Interest expense		180			322			(44	)			705			1,930			(63	)
Net interest revenue, operating basis		729			811			(10	)			2,683			2,784			(4	)
Gains (Losses) related to investment securities, net		57			(51	)						141			(54	)
Total revenue, operating basis (2)		2,312			2,641			(12.46	)			8,759			10,477			(16.40	)
Provision for loan losses		35			-							149			-
Expenses:
Salaries and employee benefits		791			698			13				3,037			3,842			(21	)
Information systems and communications		163			163			-				656			633			4
Transaction processing services		158			145			9				583			644			(9	)
Occupancy		115			124			(7	)			475			465			2
Other		329			398			(17	)			916			1,196			(23	)
Total expenses, operating basis (2)		1,556			1,528			1.83				5,667			6,780			(16.42	)
Income before income tax expense, operating basis		721			1,113			(35	)			2,943			3,697			(20	)
Income tax expense, operating basis		197			383							811			1,236
Tax-equivalent adjustment		32			28							126			104
Net income, operating basis	$	492		$	702			(30	)		$	2,006		$	2,357			(15	)
Net income available to common shareholders, operating basis	$	492		$	680			(28	)		$	1,949		$	2,335			(17	)
Diluted earnings per common share, operating basis	$	.99		$	1.58			(37	)		$	4.11		$	5.61			(27	)
Average diluted common shares outstanding (in thousands)		497,615			431,902							474,003			416,100
Return on common equity, operating basis		13.8	%		24.3		%					15.6	%		19.3		%
(1) Refer to the accompanying reconciliation of reported results to operating-basis results.
(2) For the quarter ended December 31, 2009, negative operating leverage in the year-over-year comparison was 1,429 basis points, based on a decline in total operating-basis revenue of 12.46% and an increase in total operating-basis expenses of 1.83%. For the year ended December 31, 2009, positive operating leverage in the year-over-year comparison was 2 basis points, based on a decline in total operating-basis revenue of 16.40% and a decline in total operating-basis expenses of 16.42%

STATE STREET CORPORATION
Earnings Press Release Addendum
SELECTED CONSOLIDATED OPERATING-BASIS FINANCIAL INFORMATION
Quarters Ended December 31, 2009 and September 30, 2009
	Quarters Ended (1)
		December 31,			September 30,
(Dollars in millions, except per share amounts)		2009			2009		% Change
Fee Revenue:
Servicing fees	$	882		$	833		6		%
Management fees		231			219		5
Trading services		270			269		-
Securities finance		83			105		(21	)
Processing fees and other		60			45		33
Total fee revenue		1,526			1,471		4
Net Interest Revenue:
Interest revenue, operating basis		909			929		(2	)
Interest expense		180			175		3
Net interest revenue, operating basis		729			754		(3	)
Gains (Losses) related to investment securities, net		57			42
Total revenue, operating basis (2)		2,312			2,267		1.99
Provision for loan losses		35			16
Expenses:
Salaries and employee benefits		791			819		(3	)
Information systems and communications		163			165		(1	)
Transaction processing services		158			148		7
Occupancy		115			118		(3	)
Other		329			222		48
Total expenses, operating basis (2)		1,556			1,472		5.71
Income before income tax expense, operating basis		721			779		(7	)
Income tax expense		197			225
Tax-equivalent adjustment		32			31
Net income, operating basis	$	492		$	523		(6	)
Diluted earnings per common share, operating basis	$	.99		$	1.05		(6	)
Average diluted common shares outstanding (in thousands)		497,615			498,290
Return on common equity, operating basis		13.8	%		16.2	%
(1) Refer to the accompanying reconciliation of reported results to operating-basis results.
(2) For the quarter ended December 31, 2009, negative operating leverage in the quarter-over-quarter comparison was 372 basis points, based on an increase in total operating-basis revenue of 1.99% and an increase in total operating-basis expenses of 5.71%.

STATE STREET CORPORATION
Earnings Press Release Addendum
RECONCILIATION OF REPORTED RESULTS TO OPERATING-BASIS RESULTS
Quarter and Year Ended December 31, 2009
(Dollars in millions, except per share amounts)	Quarter Ended December 31, 2009										Year Ended December 31, 2009
		Reported						Operating				Reported							Operating
		Results		Adjustments				Results				Results			Adjustments				Results
Fee Revenue:
Servicing fees	$	882						$	882		$	3,276							$	3,276
Management fees		231							231			824								824
Trading services		270							270			1,094								1,094
Securities finance		83							83			570								570
Processing fees and other		60							60			171								171
Total fee revenue		1,526							1,526			5,935								5,935
Net Interest Revenue:
Interest revenue		877		$	32		(1)		909			3,286			$	102		(4)		3,388
Interest expense		180			-				180			722				(17	)	(5)		705
Net interest revenue		697			32				729			2,564				119				2,683
Gains (Losses) related to investment securities, net		57			-				57			141				-				141
Total revenue		2,280			32				2,312			8,640				119				8,759
Provision for loan losses		35			-				35			149				-				149
Expenses:
Salaries and employee benefits		791			-				791			3,037				-				3,037
Information systems and communications		163			-				163			656				-				656
Transaction processing services		158			-				158			583				-				583
Occupancy		115			-				115			475				-				475
Provision for legal exposure		-			-				-			250				(250	)	(6)		-
Merger and integration costs		9			(9	)	(2)		-			49				(49	)	(2)		-
Other		329			-				329			916				-				916
Total expenses		1,565			(9	)			1,556			5,966				(299	)			5,667
Income before income tax expense and extraordinary loss		680			41				721			2,525				418				2,943
Income tax expense		182			15		(3)		197			722				89		(7)		811
Tax-equivalent adjustment		-			32		(1)		32			-				126		(1)		126
Income before extraordinary loss		498			(6	)			492			1,803				203				2,006
Extraordinary loss, net of tax		-			-				-			(3,684	)			3,684		(8)		-
Net income (loss)	$	498		$	(6	)		$	492		$	(1,881	)		$	3,887			$	2,006
Adjustments to net income (loss):
Prepayment of preferred stock discount	$	-		$	-			$	-		$	(106	)		$	106		(9)	$	-
Dividend on preferred stock		-			-				-			(46	)			-				(46	)
Accretion of preferred stock discount		-			-				-			(11	)			-				(11	)
		-			-				-			(163	)			106				(57	)
Net income before extraordinary loss available to common shareholders
	$	498		$	(6	)		$	492		$	1,640			$	309			$	1,949
Net income (loss) available to common shareholders	$	498		$	(6	)		$	492		$	(2,044	)		$	3,993			$	1,949
Diluted earnings per common share before extraordinary loss	$	1.00		$	(.01	)		$	.99		$	3.46			$	.65			$	4.11
Diluted earnings (loss) per common share		1.00			(.01	)			.99			(4.31	)			8.42				4.11
Average diluted common shares outstanding (in thousands)		497,615			497,615				497,615			474,003				474,003				474,003
Return on common equity before extraordinary loss		14.0	%		(0.2	)	%		13.8	%		13.2		%		2.4		%		15.6		%
(1) Represents tax-equivalent adjustment which is not included in reported results.
(2) Represents merger and integration costs recorded in connection with the acquisition of Investors Financial.
(3) Represents $3 million and $11 million of income tax benefits related to merger and integration costs and provision for legal exposure associated with certain fixed-income strategies managed by SSgA, respectively.
(4) Represents tax-equivalent adjustment of $126 million, which is not included in reported results, net of $24 million of revenue related to the AMLF.
(5) Represents interest expense related to the AMLF.
(6) Represents provision for legal exposure associated with certain fixed-income strategies managed by SSgA.
(7) Represents $3 million of income tax expense related to the AMLF, net of $20 million and $72 million of income tax benefits related to merger and integration costs and provision for legal exposure associated with certain fixed-income strategies managed by SSgA, respectively.
(8) Represents extraordinary loss related to the May 2009 consolidation of the asset-backed commercial paper conduits onto State Street's balance sheet.
(9) Represents prepayment of the preferred stock discount in connection with the June 2009 repayment of the U.S.Treasury's preferred stock investment under the TARP Capital Purchase Program.

STATE STREET CORPORATION
Earnings Press Release Addendum
RECONCILIATION OF REPORTED RESULTS TO OPERATING-BASIS RESULTS
Quarter and Year Ended December 31, 2008
(Dollars in millions, except per share amounts)	Quarter Ended December 31, 2008												Year Ended December 31, 2008
	Reported									Operating				Reported							Operating
	Results				Adjustments					Results				Results			Adjustments				Results
Fee Revenue:
Servicing fees	$	842							$	842			$	3,745							$	3,745
Management fees		209								209				1,028								1,028
Trading services		418								418				1,467								1,467
Securities finance		329								329				1,230								1,230
Processing fees and other		83								83				277								277
Total fee revenue		1,881								1,881				7,747								7,747
Net Interest Revenue:
Interest revenue		1,427			$	(294	)	(1)		1,133				4,879			$	(165	)	(8)		4,714
Interest expense		584				(262	)	(2)		322				2,229				(299	)	(2)		1,930
Net interest revenue		843				(32	)			811				2,650				134				2,784
Gains (Losses) related to investment securities, net		(51	)			-				(51	)			(54	)			-				(54	)
Gain on sale of CitiStreet interest, net of exit and other associated costs		-				-				-				350				(350	)	(9)		-
Total revenue		2,673				(32	)			2,641				10,693				(216	)			10,477
Provision for loan losses		-				-				-				-				-				-
Expenses:
Salaries and employee benefits		698				-				698				3,842				-				3,842
Information systems and communications		163				-				163				633				-				633
Transaction processing services		145				-				145				644				-				644
Occupancy		124				-				124				465				-				465
Provision for investment account infusion		450				(450	)	(3)		-				450				(450	)	(3)		-
Restructuring charges		306				(306	)	(4)		-				306				(306	)	(4)		-
Merger and integration costs		27				(27	)	(5)		-				115				(115	)	(5)		-
Other		398				-				398				1,396				(200	)	(10)		1,196
Total expenses		2,311				(783	)			1,528				7,851				(1,071	)			6,780
Income before income taxes		362				751				1,113				2,842				855				3,697
Income tax expense		106				277		(6)		383				1,031				205		(11)		1,236
Tax-equivalent adjustment		-				28		(7)		28				-				104		(7)		104
Net income	$	256			$	446			$	702			$	1,811			$	546			$	2,357
Net income available to common shareholders	$	234			$	446			$	680			$	1,789			$	546			$	2,335
Diluted earnings per common share	$	.54			$	1.04			$	1.58			$	4.30			$	1.31			$	5.61
Average diluted common shares outstanding (in thousands)		431,902				431,902				431,902				416,100				416,100				416,100
Return on common equity		8.4		%		15.9		%		24.3		%		14.8		%		4.5		%		19.3		%
Reported results reflect State Street's Consolidated Statement of Income prepared in accordance with accounting principles generally accepted in the United States.
(1) Represents tax-equivalent adjustment of $28 million, which is not included in reported results, and $322 million of revenue related to AMLF.
(2) Represents interest expense related to the AMLF.
(3) Represents a charge associated with SSgA Stable Value Funds.
(4)Represents restructuring costs associated with reduction in workforce and other cost initiatives.
(5) Represents merger and integration costs recorded in connection with the acquisition of Investors Financial.
(6) Represents $24 million of income tax expense related to the AMLF, net of $180 million of income tax benefit related to SSgA Stable Value Funds, $112 million of income tax benefit related to restructuring costs, and $9 million of income tax benefit related to merger and integration costs associated with the acquisition of Investors Financial.
(7) Represents taxable-equivalent adjustment, which is not included in reported results.
(8) Represents taxable-equivalent adjustment of $104 million for the year ended December 31, 2008, which is not included in reported results, plus a $98 million charge associated with SILO leveraged lease transactions, net of $367 million of revenue related to the AMLF.
(9) Represents gain on the July 2008 sale of CitiStreet interest, net of exit and other associated costs.
(10) Represents a charge to provide for estimated net exposure on an indemnification obligation associated with collateralized repurchase agreements.
(11) Represents $27 million of income tax expense related to the AMLF, $39 million of income tax expense related to the reserve for SILO's and $140 million of income tax expense related to the gain from sale of CitiStreet interest, net of $180 million of income tax benefit related to SSgA Stable Value Funds, $112 million of income tax benefit related to restructuring costs, $39 million of income tax benefit related to merger and integration costs associated with the acquisition of Investors Financial and $80 million of income tax benefit related to the provision for estimated net exposure on an indemnification obligation associated with collateralized repurchase agreements.

STATE STREET CORPORATION
Earnings Press Release Addendum
RECONCILIATION OF REPORTED RESULTS TO OPERATING-BASIS RESULTS
Quarter Ended September 30, 2009
(Dollars in millions, except per share amounts)	Quarter Ended September 30, 2009
		Reported							Operating
		Results		Adjustments					Results
Fee Revenue:
Servicing fees	$	833						$	833
Management fees		219							219
Trading services		269							269
Securities finance		105							105
Processing fees and other		45							45
Total fee revenue		1,471							1,471
Net Interest Revenue:
Interest revenue		898		$	31		(1)		929
Interest expense		175			-				175
Net interest revenue		723			31				754
Gains (Losses) related to investment securities, net		42			-				42
Total revenue		2,236			31				2,267
Provision for loan losses		16			-				16
Expenses:
Salaries and employee benefits		819			-				819
Information systems and communications		165			-				165
Transaction processing services		148			-				148
Occupancy		118			-				118
Provision for legal exposure		250			(250	)	(2)		-
Merger and integration costs		11			(11	)	(3)		-
Other		222			-				222
Total expenses		1,733			(261	)			1,472
Income before income tax expense and extraordinary loss		487			292				779
Income tax expense		160			65		(4)		225
Tax-equivalent adjustment		-			31		(1)		31
Net income	$	327		$	196			$	523
Diluted earnings per common share	$	.66		$	.39			$	1.05
Average diluted common shares outstanding (in thousands)		498,290			498,290				498,290
Return on common equity		10.2	%		6.0	%			16.2	%
(1) Represents tax-equivalent adjustment, which is not included in reported results.
(2) Represents provision for legal exposure associated with certain fixed-income strategies managed by SSgA.
(3) Represents merger and integration costs recorded in connection with the acquisition of Investors Financial.
(4) Represents income tax benefits of $4 million and $61 million related to merger and integration costs and provision for legal exposure associated with certain fixed-income strategies managed by SSgA, respectively.

STATE STREET CORPORATION
Earnings Press Release Addendum
TANGIBLE COMMON EQUITY AND TIER 1 COMMON RATIOS
As of Period End
The table set forth below presents the calculations of State Street's ratios of tangible common equity to total tangible assets and to total risk-weighted assets, and its ratios of tier 1 common capital to total risk-weighted assets.
		For the periods ended
		December 31,			September 30,			December 31,
(Dollars in millions)			2009			2009			2008
Consolidated Total Assets		$	157,946		$	163,277		$	173,631
Less:
Goodwill			4,550			4,554			4,527
Other intangible assets			1,810			1,845			1,851
AMLF investment securities			-			-			6,087
Excess reserves held at central banks			21,731			22,125			51,739
Adjusted assets			129,855			134,753			109,427
Plus:
Deferred tax liability			521			524			560
Total tangible assets	A	$	130,376		$	135,277		$	109,987
Consolidated Total Common Shareholders' Equity		$	14,491		$	13,440		$	10,891
Less:
Goodwill			4,550			4,554			4,527
Intangible assets			1,810			1,845			1,851
Adjusted equity			8,131			7,041			4,513
Plus deferred tax liability			521			524			560
Total tangible common equity	B	$	8,652		$	7,565		$	5,073
Tangible common equity ratio	B/A		6.6	%		5.6	%		4.6	%
Ratio of tangible common equity to total risk-weighted assets	B/D		12.6	%		10.2	%		7.3	%
Tier 1 capital		$	12,005		$	11,271		$	14,090
Less:
Trust preferred securities			1,450			1,450			1,450
TARP preferred stock			-			-			1,883
Tier 1 common capital	C	$	10,555		$	9,821		$	10,757
Total risk-weighted assets	D		68,786			73,823			69,585
Ratio of tier 1 common capital to total risk-weighted assets	C/D		15.3	%		13.3	%		15.5	%

STATE STREET CORPORATION
Earnings Press Release Addendum
OPERATING-BASIS RESULTS ADJUSTED FOR ACCRETION
Quarter and Year Ended December 31, 2009
(Dollars in millions, except per share amounts)	Quarter Ended December 31, 2009								Year Ended December 31, 2009
							Adjusted									Adjusted
	Operating						Operating			Operating						Operating
	Results		Accretion				Results			Results		Accretion				Results
Fee Revenue:
Servicing fees	$	882					$	882	$	3,276						$	3,276
Management fees		231						231		824							824
Trading services		270						270		1,094							1,094
Securities finance		83						83		570							570
Processing fees and other		60						60		171							171
Total fee revenue		1,526						1,526		5,935							5,935
Net Interest Revenue:
Interest revenue		909	$	(230	)	(1)		679		3,388		$	(621	)	(1)		2,767
Interest expense		180		-				180		705			-				705
Net interest revenue		729		(230	)			499		2,683			(621	)			2,062
Gains (Losses) related to investment securities, net		57		-				57		141			-				141
Total revenue		2,312		(230	)			2,082		8,759			(621	)			8,138
Income before income tax expense		721		(230	)			491		2,943			(621	)			2,322
Income tax expense (benefit)		197		(91	)			106		811			(246	)			565
Tax-equivalent adjustment		32		-				32		126			-				126
Net income	$	492	$	(139	)		$	353	$	2,006		$	(375	)		$	1,631
Adjustments to net income:
Dividend on preferred stock	$	-	$	-			$	-	$	(46	)	$	-			$	(46	)
Accretion of preferred stock discount		-		-				-		(11	)		-				(11	)
		-		-				-		(57	)		-				(57	)
Net income available to common shareholders	$	492	$	(139	)		$	353	$	1,949		$	(375	)		$	1,574
Diluted earnings per common share	$	0.99	$	(.28	)		$	.71	$	4.11		$	(.79	)		$	3.32
Average diluted common shares outstanding (in thousands)		497,615		497,615				497,615		474,003			474,003				474,003
(1) Represents accretion for the period of a portion of the aggregate difference between the fair value and the par value of the asset-backed commercial paper conduits' investment securities on the date of consolidation of the conduits onto the balance sheet.

STATE STREET CORPORATION
Earnings Press Release Addendum
OPERATING-BASIS RESULTS ADJUSTED FOR ACCRETION
Quarter Ended September 30, 2009
(Dollars in millions, except per share amounts)	Quarter Ended September 30, 2009
							Adjusted
	Operating						Operating
	Results		Accretion				Results
Fee Revenue:
Servicing fees	$	833					$	833
Management fees		219						219
Trading services		269						269
Securities finance		105						105
Processing fees and other		45						45
Total fee revenue		1,471						1,471
Net Interest Revenue:
Interest revenue		929	$	(279	)	(1)		650
Interest expense		175		-				175
Net interest revenue		754		(279	)			475
Gains (Losses) related to investment securities, net		42		-				42
Total revenue		2,267		(279	)			1,988
Income before income tax expense		779		(279	)			500
Income tax expense (benefit)		225		(110	)			115
Tax-equivalent adjustment		31		-				31
Net income	$	523	$	(169	)		$	354
Diluted earnings per common share	$	1.05	$	(.34	)		$	.71
Average diluted common shares outstanding (in thousands)		498,290		498,290				498,290
(1) Represents accretion for the period of a portion of the aggregate difference between the fair value and the par value of the asset-backed commercial paper conduits' investment securities on the date of consolidation of the conduits onto the balance sheet.

STATE STREET CORPORATION
Earnings Press Release Addendum
OPERATING-BASIS RESULTS ADJUSTED FOR ACCRETION
Quarter Ended June 30, 2009
(Dollars in millions, except per share amounts)	Quarter Ended June 30, 2009
								Adjusted
	Operating							Operating
	Results			Accretion				Results
Fee Revenue:
Servicing fees	$	795						$	795
Management fees		193							193
Trading services		310							310
Securities finance		201							201
Processing fees and other		17							17
Total fee revenue		1,516							1,516
Net Interest Revenue:
Interest revenue		804		$	(112	)	(1)		692
Interest expense		193			-				193
Net interest revenue		611			(112	)			499
Gains (Losses) related to investment securities, net		26			-				26
Total revenue		2,153			(112	)			2,041
Income before income tax expense		787			(112	)			675
Income tax expense (benefit)		247			(44	)			203
Tax-equivalent adjustment		31			-				31
Net income	$	509		$	(68	)		$	441
Adjustments to net income (loss):
Dividend on preferred stock	$	(21	)	$	-			$	(21	)
Accretion of preferred stock discount		(5	)		-				(5	)
		(26	)		-				(26	)
Net income available to common shareholders	$	483		$	(68	)		$	415
Diluted earnings per common share	$	1.04		$	(.15	)		$	.89
Average diluted common shares outstanding (in thousands)		465,814			465,814				465,814
(1) Represents accretion for the period of a portion of the aggregate difference between the fair value and the par value of the asset-backed commercial paper conduits' investment securities on the date of consolidation of the conduits onto the balance sheet.

STATE STREET CORPORATION
Earnings Press Release Addendum
CONSOLIDATED STATEMENT OF CONDITION
	December 31,			September 30,			December 31,
(Dollars in millions, except per share amounts)	2009			2009			2008
Assets
Cash and due from banks	$	2,641		$	5,027		$	3,181
Interest-bearing deposits with banks		26,632			27,479			55,733
Securities purchased under resale agreements		2,387			1,579			1,635
Trading account assets		148			150			815
Investment securities available for sale		72,699			71,675			54,163
Investment securities held to maturity purchased under money
market liquidity facility		-			-			6,087
Investment securities held to maturity		20,877			21,267			15,767
Loans and leases (net of allowance of $79, $53 and $18)		10,729			11,406			9,113
Premises and equipment		1,953			1,947			2,011
Accrued income receivable		1,497			1,618			1,738
Goodwill		4,550			4,554			4,527
Other intangible assets		1,810			1,845			1,851
Other assets		12,023			14,730			17,010
Total assets	$	157,946		$	163,277		$	173,631
Liabilities
Deposits:
Noninterest-bearing	$	11,969		$	13,572		$	32,785
Interest-bearing -- U.S.		5,956			5,327			4,558
Interest-bearing -- Non-U.S.		72,137			72,869			74,882
Total deposits		90,062			91,768			112,225
Securities sold under repurchase agreements		10,542			11,890			11,154
Federal funds purchased		4,532			4,949			1,082
Short-term borrowings under money market liquidity facility		-			-			6,042
Other short-term borrowings		20,200			20,724			11,555
Accrued taxes and other liabilities		9,281			11,661			14,380
Long-term debt		8,838			8,845			4,419
Total liabilities		143,455			149,837			160,857
Shareholders' Equity
Preferred stock, no par: authorized 3,500,000; 20,000 shares issued and outstanding
		-			-			1,883
Common stock, $1 par: authorized 750,000,000 shares; 495,365,571, 494,652,372 and 431,976,032 shares issued
		495			495			432
Surplus		9,180			9,159			6,992
Retained earnings		7,071			6,579			9,135
Accumulated other comprehensive loss		(2,238	)		(2,776	)		(5,650	)
Treasury stock (at cost 431,832, 429,499 and 418,354 shares)		(17	)		(17	)		(18	)
Total shareholders' equity		14,491			13,440			12,774
Total liabilities and shareholders' equity	$	157,946		$	163,277		$	173,631

CONTACT:
State Street Corporation
Edward J. Resch, +1 617-664-1110
or
Investors:
Kelley MacDonald, +1 617-664-3477
or
Media:
Hannah Grove, +1 617-664-3377

EX-99.2

Exhibit 99.2

Investment Portfolio and Selected Capital Data As of December 31, 2009 January 20, 2010

Asset-backed securities (ABS)Mortgage-backed securitiesCommercial mortgage-backed securities (CMBS) $25 billion   $57 billion  $10 billion  Corporate bondsMunicipals  TreasuriesAgency debenturesAgency mortgagesSmall Business Administration loansOECD governments Investment Portfolio  Government / Agency  Structured Securities  Unsecured Credit  Portfolio amounts are expressed at Book Value; Book Value includes the amortized cost of the transferred securities at the time they were transferred.OECD=Organization for Economic Cooperation and Development  ASSETS: INVESTMENT PORTFOLIO (PERIOD END 12/31/09)  $30 billio  nUS$ in billions AAA AA A BBB <BBB NR Total 12/31/04(2) $35.2 $0.7 $1.2 $0.1 - $0.5 $37.7  93.4% 1.9% 3.3% 0.3% - 1.1% 100.0% 12/31/07 $67.0 $4.9 $2.2 $0.8 - $0.8 $75.7  88.5% 6.5% 2.9% 1.1% - 1.0% 100.0% 12/31/08 $61.6 $8.8 $3.9 $2.9 $0.8 $0.8 $78.8  78.2% 11.1% 4.9% 3.7% 1.1% 1.0% 100.0% 12/31/09 $66.8 $11.3 $6.8 $3.5 $7.5 $1.4 $97.3  68.6% 11.6% 7.0% 3.6% 7.8% 1.4% 100.0%  

Assets selected using rigorous credit processDiversified by asset class and geography  80.2% AAA / AA ratedConstructed to perform well through periods of economic weaknessUnrealized after-tax available for sale (AFS) & held to maturity (HTM) mark to market (MTM) loss = $(2.286)B(1)  INVESTMENT PORTFOLIO DETAIL (PERIOD END 12/31/09)  Investment Portfolio  Portfolio amounts are expressed at Book Value; Book Value includes the amortized cost of the transferred securities at the time they were transferred.  (1) At 12/31/09: After-Tax Unrealized MTM Gain/(Loss) includes after-tax unrealized loss on securities available for sale of $(1,316)M, after-tax unrealized gain on securities held to maturity of $31M and after-tax unrealized loss remaining on securities transferred from available for sale to held to maturity of $(1,001)M.(2) First year-end after adoption of current investment portfolio strategy.US$ in billions AAA AA A BBB <BBB NR Total 12/31/04(2) $35.2 $0.7 $1.2 $0.1 - $0.5 $37.7  93.4% 1.9% 3.3% 0.3% - 1.1% 100.0% 12/31/07 $67.0 $4.9 $2.2 $0.8 - $0.8 $75.7  88.5% 6.5% 2.9% 1.1% - 1.0% 100.0% 12/31/08 $61.6 $8.8 $3.9 $2.9 $0.8 $0.8 $78.8  78.2% 11.1% 4.9% 3.7% 1.1% 1.0% 100.0% 12/31/09 $66.8 $11.3 $6.8 $3.5 $7.5 $1.4 $97.3  68.6% 11.6% 7.0% 3.6% 7.8% 1.4% 100.0%  

Investment Portfolio (1) Securities/municipals and corporate issuers added to negative credit watch within the respective quarter, excluding downgrades. (2) Securities/municipals and corporate issuers downgraded in respective quarter.  We report downgrades based on the lower of the Moody’s or S & P ratings; based on this methodology approximately $0.5 billion of the $1.3 billion has been downgraded by another rating agency and reported in previous quarters, leaving $0.8 billion net new downgrades in the fourth quarter. At 12/31/09: After-Tax Unrealized MTM Gain/(Loss) includes after-tax unrealized loss on securities available for sale of $(1,316)M, after-tax unrealized gain on securities held to maturity of $31M and after-tax unrealized loss remaining on securities transferred from available for sale to held to maturity of $(1,001)M. Due to Syncora wrap. Previously discounted or impaired.  INVESTMENT PORTFOLIO (AT PERIOD END)  Portfolio amounts are expressed at Book Value; Book Value includes the amortized cost of the transferred securities at the time they were transferred.Q4 ‘08 Q1 ‘09 Q2 ‘09 Q3 ‘09 Q4 ‘09 Q4 ‘09  Asset Value Size of portfolio $78.8B $77.5B $86.7B $97.6B $97.3B — Ratings 78.2% AAA 11.1% AA 73.1% AAA 11.2% AA 67.3% AAA 12.3% AA 68.8% AAA 11.6% AA 68.6% AAA 11.6% AA — Unrealized after-tax MTM gain/(loss) $(6,316)M  $(5,851)M  $(4,747)M  $(2,985)M  $(2,286)M(3) — Credit watch(1) 62 308 88 125 70 $1.9B Credit watch ex Munis(1) 21 173 84 123 68 $1.8B Downgrades(2) 935 423 380 344 112 $1.3B Downgrades ex Munis(2) 164 287 164 307 76 $1.2B Defaults  0 0 7(4)   0 6(5) $46M

I

Investment Portfolio  HOLDINGS BY ASSET CLASS (PERIOD END 12/31/09)  Portfolio amounts are expressed at Book Value; Book Value includes the amortized cost of the transferred securities at the time they were transferred.  (1) At 12/31/09: After-Tax Unrealized MTM Gain/(Loss) includes after-tax unrealized loss on securities available for sale of $(1,316)M, after-tax unrealized gain on securities held to maturity of $31M and after-tax unrealized loss remaining on securities transferred from available for sale to held to maturity of $(1,001)M. Ratings  Book Value  ($B)  Book Value (% Total)  Unrealized After-tax  MTM Gain/(Loss) ($M)   Investment  AAA  AA  A  BBB  <BBB  NR     # CUSIPS  Government/Agency securities  97%  —  3%  —  —  —  14.9  15.3  8  496  Asset-backed securities  68%  13%  8%  4%  7%  —  44.7  45.9  (1,389)  1,410  Mortgage-backed securities  72%  3%  3%  4%  18%  —  23.6  24.3  (780)  1,740  Commercial mortgage-backed securities  90%  3%  4%  3%  —  —  4.1  4.2  (172)  140  Corporate bonds  1%  18%  54%  27%  —  —  2.6  2.7  52  174  Municipal bonds  12%  54%  24%  6%  —  4%  2.7  2.8  61  5,278  Clipper tax-exempt bonds/other  15%  57%  1%  —  —  27%  4.7  4.8  (66)  493  TOTAL PORTFOLIO  68.6%  11.6%  7.0%  3.6%  7.8%  1.4%  97.3  100.0  (2,286)(1) 9,731

Investment Portfolio  ASSET-BACKED SECURITIES HOLDINGS (PERIOD END 12/31/09)  Portfolio amounts are expressed at Book Value; Book Value includes the amortized cost of the transferred securities at the time they were transferred. RMBS = Residential Mortgage Backed Securities; CLO = Collateralized Loan Obligation; HELOC = Home Equity Line of Credit Ratings  Book Value  ($B)  Book Value (% Total)  Unrealized After-tax  MTM Gain/(Loss) ($M)   Investment  AAA  AA  A  BBB  <BBB  NR     # CUSIPS  Student Loans  88%  11%  1%  —  —  —  12.6  28.2  (445)  216  Credit Cards  86%  —  6%  6%  2%  —  7.3  16.4  60  174  Auto/Equipment  76%  4%  17%  3%  —  —  1.8  4.0  32  88  Foreign RMBS  72%  13%  11%  2%  2%  —  13.8  30.9  105  405  CLOs  38%  43%  11%  5%  3%  —  2.2 4.9  64  75  Sub-Prime  12%  27%  11%  6%  44%  —  5.1  11.4  (1,141)  353  HELOC  —  24%  1%  10%  65%  —  0.5  1.1  (32)  45  Other  24%  10%  25%  26%  15%  —  1.4  3.1  (32)  54  TOTAL ABS  68.3%  13.1%  7.8%  3.6%  7.2%  —  44.7  100.0  (1,389)  1,410

Investment Portfolio  ASSET- BACKED SECURITIES COLLATERALIZED BY SUB-PRIME FIRST- LIEN MORTGAGES (AT PERIOD END)  (1) Securities/municipals and corporate issuers added to negative credit watch within the respective quarter, excluding downgrades.(2) Securities/municipals and corporate Issuers downgraded in respective quarter.  Portfolio amounts are expressed at Book Value; Book Value includes the amortized cost of the transferred securities at the time they were transferred.  Q4 ’08 Q1 ’09 Q2 ’09 Q3 ’09 Q4 ’09 Q4 ‘09 Asset Value Size of portfolio $5.8B $5.7B $5.5B $5.2B $5.1B — Ratings 38% AAA 32% AA, 10% A 17% BBB, 3% <BBB 17% AAA 28% AA, 9% A 10% BBB, 36% <BBB 14% AAA 29% AA, 9% A 11% BBB, 37% <BBB 13% AAA 26% AA, 11% A 6% BBB, 44% <BBB 12% AAA 27% AA, 11% A 6% BBB, 44% <BBB  Credit enhancement 42.7% 42.3% 41.7% 40.9% 40.9% — Unrealized MTM After-tax Gain/(Loss) $(1,210)M $(1,458)M $(1,544)M $(1,282)M $(1,141)M — Credit watch(1) 3 30 0 8 1 $0M Downgrades(2) 75 150 22 103 17 $40M Defaults 0 0 0 0 0 $0

Investment Portfolio  HCL = historic cumulative loss; Avg. CE = average credit enhancement; CRE= Commercial Real Estate; SFL = STT’s stressed future losses; Coverage = Avg. CE/SFLSee Appendix for additional information.  STRESS COVERAGE: ASSET-BACKED SECURITIES PORTFOLIO (PERIOD END 12/31/09) Govt. student loans: $11.7B HCL: < 0.1% Avg. CE: >100% - 98% govt. guarantee + 6.5% CE SFL: 12% - Historic default rate before government guarantees with 0% recoveries With >100% credit enhancement, no risk of loss Private student loans: $0.9B HCL: 4.46% - With insurance Avg. CE: 13.6%  SFL: 9.9% - Assumes no insurance; industry/rating agency assumption Coverage: 1.37x Credit cards: $7.3B HCL: 9.51% = Wgtd. avg. charge-offs Avg. CE: 23.79% SFL: 12.24% - Industry projected wgtd. avg. charge-offs Coverage: 1.95x Auto/equipment: $1.8B HCL: 0.8% - Excluding wrapped deals Avg. CE: 13.4% - Excluding wrapped deals SFL: 1.9% - Using worst vintage in 10 years (2001) blended by portfolio weighting, excluding wrapped deals Coverage: 7.10x Foreign RMBS: $13.8B HCL: 0.23% Avg. CE: 9.76% SFL: 1.90% - Aggregate regional projection averaged by holdings Coverage: 5.12x  CLO/CREs: $2.2B HCL: 2.79% - Current Gross Defaults Avg. CE: 28.28% SFL: 8.0% - Industry projection of 12% default rate with only half the long-term recovery rate of 70% Coverage: 3.53x Sub-prime: $5.1B HCL: 8.9% Avg. CE: 40.90% - AAA 58.12%, AA 53.11% SFL: 32.01% - Roll rate analysis average cumulative loss across all vintages Coverage: 1.28X HELOC: $0.5B HCL: 0% - With insurance Avg. CE: 2.5% overcollateralization plus monoline insurance SFL: If all monoline wrappers except FSA fail and defaults stay elevated in perpetuity, and we have 0% recoveries, pre-tax loss is = $(19.36)M   

Investment Portfolio  MORTGAGE-BACKED SECURITIES HOLDINGS (PERIOD END 12/31/09)  Ratings Book Value  ($B) Book Value (% Total) Unrealized After-tax  MTM Gain/(Loss) ($M)   Investment AAA AA A BBB <BBB NR     # CUSIPS Agency MBS 100% — — — — — 15.5 56.0 45 1,315 Non-Agency MBS 19% 9% 7% 12% 53% — 8.1 29.2 (825) 425 CMBS 90% 3% 4% 3% — — 4.1 14.8 (172) 140 TOTAL MBS 74.9% 3.0% 2.7% 3.9% 15.5% — 27.7 100.0 (952) 1,880

Investment Portfolio  STRESS COVERAGE: MORTGAGE-BACKED SECURITIES PORTFOLIO (PERIOD END 12/31/09)  HCL = historic cumulative loss; Avg. CE = average credit enhancement; SFL = STT’s stressed future losses; Coverage = CE/SFLSee Appendix for additional information. Agency MBS: $15.5B 100% AAA-backed primarily by Fannie Mae, Freddie Mac & Ginnie Mae Securities No losses expected Non-Agency Prime MBS: $6.3B      HCL: 1.32% Avg. CE: 8.67% SFL: 5.34% - Roll rate analysis Coverage: 1.62X Alt-A: $1.8B HCL: 3.30% Avg. CE: 19.29% SFL: 16.49% - Roll rate analysis Coverage: 1.17X CMBS: $4.1B HCL: 0.18% Avg. CE: 25.09% SFL: 10% - Highest historic cumulative loss for any single CMBS deal Coverage: 2.51X

Investment Portfolio Philosophy: Assets are purchased based on an independent assessment of their underlying credit quality, not based on the insurance “wrap” provided As a result, our exposure to “wraps” for protection is secondary and is relatively small Diversified by monoline insurer $3.3B of insurance covers 4,079 issues Municipal bonds: $1.95B (3,977 issues) Sub-prime asset-backed securities: $75M (26 issues) Home Equity Lines of Credit: $450M (48 issues) If all securities were “unwrapped,” the 80.2% AAA/AA rating would become 79.3% AAA/AA rating*  INVESTMENT PORTFOLIO - MONOLINE INSURANCE COVERAGE (PERIOD END 12/31/09)  * Estimate based on rating agency methodology.

Investment Portfolio  INVESTMENT PORTFOLIO—MONOLINE INSURANCE COVERAGE (PERIOD END 12/31/09)  AAA AA A BBB <BBB NR Total Credit quality 68.6% 11.6% 7.0% 3.6% 7.8% 1.4% 100% Credit quality unwrapped* 68.5% 10.8% 7.7% 3.8% 7.7% 1.5% 100%   AAA & AA Combined Credit quality 80.2% Credit quality unwrapped* 79.3%   * Estimate based on rating agency methodology.

Investment Portfolio  TOTAL MONOLINE EXPOSURE (PERIOD END 12/31/09)  Includes Investment Portfolio, Galleon, Clipper, Schooner, Spinaker, and CTEC positions. CTEC and Portfolio muni's are reported in separate columns. # - Number of cusips

Selected Capital Data  CAPITAL STRUCTURE (AT PERIOD END)  For a description, and as applicable, a reconciliation of the above ratios, see “Additional Information” in, and the addendum to, the accompanying fourth quarter 2009 State Street Corporation earnings press release dated January 20, 2010.Minimum “Well Cap” Tier 1 Leverage applies to State Street Bank only.    State Street Corp    State Street Bank    "Well Cap"    Q3 ‘09        Q4 ‘09           Q3 ‘09        Q4 ‘09 Tier 1 Leverage 5%   8.02%   8.52%    7.38%   8.19%   Tier 1 Capital 6%   15.27%   17.45%    14.21%   17.02%   Tier 1 Common Ratio    13.30%   15.34%        Total Capital 10%   16.53%   18.84%    15.70%   18.67%   Tangible Common Equity 5.59% 6.64% TCE / RWA 10.25% 12.58%

Selected Capital Data  TCE IMPROVEMENT PLAN  For a description, and as applicable, a reconciliation of the above ratios, see “Additional Information” in, and the addendum to, the accompanying fourth quarter 2009 State Street Corporation earnings press release dated January 20, 2010.  Q1 ‘09 Q2 ‘09 Q3 ’09 Q4 ’09   TCE Ratio at beginning of period 1.19% 2.22% 4.96% 5.59% Organic capital +29 bps +51 bps +17 bps +30 bps Dividend reduction +8 bps +8 bps +8 bps +8 bps Price improvement +30 bps +51 bps +61 bps +29 bps Securities paying down / maturing +21 bps +26 bps +19 bps +18 bps Capital issuance +0 bps +188 bps +0 bps +0 bps TARP repay (include warrant) +0 bps -9 bps -2 bps +2 bps Balance sheet change +15 bps -41 bps -40 bps +18 bps TCE Ratio at end of period 2.22% 4.96% 5.59% 6.64%

Selected Capital Data  TCE CALCULATIONS (AT PERIOD END) – STATE STREET CORP Tangible Common Equity Ratio     Regulatory Ratios     Q3 ‘09 Q4 ‘09    Q3 ‘09 Q4 ‘09 Common equity 13,440 14,491    Tier 1 capital 11,271 12,005       Total goodwill and intangibles 6,399 6,360    Tier 1 common 9,821 10,555 Adjusted equity 7,041 8,131    Total capital 12,202 12,961       DTL - nondeductible purchased intangibles 524 521      Tangible common equity 7,565 8,652    Adjusted average assets 140,501 140,980       Risk-weighted assets 73,823 68,786 Total assets - end of period 163,277 157,946      Less:      Tier 1 leverage ratio 8.02% 8.52%       Total goodwill and intangibles 6,399 6,360    Tier 1 capital ratio 15.27% 17.45%       Deposits with central bank 22,125 21,731    Tier 1 common ratio 13.30% 15.34% Adjusted assets 134,753 129,855    Total capital ratio 16.53% 18.84%       DTL - nondeductible purchased intangibles 524 521      Total tangible assets 135,277 130,376             Tangible common equity ratio 5.59% 6.64%

Investment Portfolio APPENDIX

Investment Portfolio - Appendix  The following is intended to provide a general overview of the terms, analysis and our monthly surveillance process used in the foregoing slides that discuss State Street Corporation’s (“State Street”) investment portfolio. As a general matter, the preceding slides summarize key performance statistics including credit enhancement and the stress analysis, as determined by State Street for each asset position. It should be noted that slides represent a point in time depiction and that results can fluctuate each month. We place our securities into asset classes using industry standard nomenclature. Some of the asset classes detailed in the slides include government student loans (“Govt. student loans”), private student loans, credit cards, automobile and equipment (“Auto/equipment”), foreign residential mortgage-backed security (“Foreign RMBS”), collateralized loan obligations (“CLOs”), sub-prime mortgages (“Sub-prime”), Home Equity Line of Credit (“HELOC”), agency mortgage-backed security (“Agency MBS”), non-agency mortgage-backed security, non-alternative A (“Non-Agency MBS, Non-Alt-A”), non-agency mortgage-backed security, alternative A (“Non-Agency MBS, Alt-A”), and commercial mortgage-backed securities (“CMBS”). As noted in the slides, State Street’s investment portfolio contains asset-backed securities (“ABS”) and mortgage-backed securities (“MBS”). ABS represent a secured interest in a pool of assets, while MBS represent ownership of an undivided interest in a group of mortgages. In evaluating each asset position for potential stressed future losses (“SFL”), State Street considers a number of factors including historical cumulative loss (“HCL”), average credit enhancement (“Avg. CE”), and State Street’s coverage amount (“Coverage”). The calculation of each of these factors is discussed in detail and with more specificity below. SFL Stressed future losses are State Street’s estimate of potential future losses under a stressed economic scenario. We can not provide a generic calculation applicable across all asset classes as our estimates for each asset class are unique and in many cases are not a calculation, but a figure based upon our subjective assessment of relevant worst case historical performance. In the cases where we calculate a projected loss ourselves we describe the calculation in the slides. As SFL can be based upon historical worst case scenarios, SFL will vary among the asset classes, which we describe in our slides. Certain assumptions made by State Street in estimating SFL for various asset classes are set forth below.  INFORMATION CONCERNING OUR INVESTMENT PORTFOLIO

Investment Portfolio - Appendix  Government Student Loans:  Based on the average Sallie Mae Non-consolidation FFELP vintages 2001-2006. Private Student Loans:  Based on forecasted private student loan gross default rates of 17.85% with a recovery rate of approximately 48%. Credit Cards:  Based on the average industry projections for peak charge-offs in the current credit cycle. Auto/Equipment:  Based on the worst annual cumulative net loss vintage (2001) going back to 1997 using 65% Barclay’s prime auto index, 34% Barclay’s near prime auto index, and 1% Barclay’s sub prime index, consistent with the split of the portfolio’s prime, near prime, and sub prime auto holdings after backing out deals wrapped by monoline insurers. This is combined with the worst experience of an agency international auto index on a 33% US, 67% non-US weighted basis. Foreign RMBS:  Applied the following assumptions weighted by regional exposure Australian MBS: 0.0% No losses expected Dutch MBS: 0.5% Based on historical Dutch performance, which in recent years has been 0.05% UK Prime MBS: 2.5% Used a simple average of five worst historical performing vintages, using historical severities UK Non-conforming: 7.5% No historical performance available, so used 3X Prime, which is consistent with that used by rating agencies Spanish MBS: 3.0% Used a 4x multiple to the worst performing Spanish RMBS transaction’s cumulative default rate and a historically   conservative recovery rate.  Italian MBS: 1.5% Used a 2x multiple to the worst performing Italian RMBS transaction’s cumulative default rate and a historically   conservative recovery rate. Russian MBS: 8.0% Used a 4x multiple to the worst performing Russian RMBS transaction’s cumulative default rate and a historically   conservative recovery rate. Greek MBS: 1.0% Used an additional 2-3x stress to the worst performing Greek RMBS transaction’s cumulative gross default figure,   which was 0.7% Portuguese MBS: 4.0% Used a 4x multiple to the worst performing Portuguese RMBS transaction’s cumulative default rate and a    historically conservative recovery rate. CLOs:  Based on an industry projection of 12% spec. grade default rate with half of the long-term recovery rate on senior secured bank loans of 70%. The average recovery rate of 70% is from data covering issues from 1982-2005.

Subprime:  Calculated by applying projected loss assumptions to the remaining pool of mortgages based upon the stage within the delinquency pipeline, (i.e. current to foreclosure), to obtain a projected future gross loss. A 70% severity rate for 2006 and 2007 vintages, a 65% for 2005 vintages, and a 55% severity rate for vintages prior to 2005 was applied to obtain the stressed future net loss. HELOC:  Main assumptions include – 100% loss severity, projected loss rate of current 3-month average loss rate and projected payment rates at current 3-month average payment rates. Agency MBS:  No losses are assumed due to implied (Fannie Mae and Freddie Mac) or explicit (Ginnie Mae) government guarantee. Non-Agency MBS (Prime):  Calculated by applying projected loss assumptions to the remaining pool of mortgages based upon the stage within the delinquency pipeline, (i.e. current to foreclosure), to obtain a projected future gross loss. An interpolated severity based on current LTV and a future negative HPA assumption. Non-Agency MBS (Alt-A):  Calculated by applying projected loss assumptions to the remaining pool of mortgages based upon the stage within the delinquency pipeline, (i.e. current to foreclosure), to obtain a projected future gross loss. An interpolated severity based on current LTV and a future negative HPA assumption. CMBS:  Based on the worst historical cumulative loss ever experienced by any one CMBS securitized deal. Investment Portfolio - Appendix

Investment Portfolio - Appendix HCL Historical cumulative loss is determined by State Street based upon data obtained from third party providers. Avg. CE Credit enhancement is determined by State Street based upon data obtained from third party providers. CE can include excess spread for the most recent year, over-collateralization, cash reserves, and subordination. Coverage Coverage is calculated by dividing CE by SFL, which results in the coverage multiple. Coverage is provided as a measure of excess enhancement above our projected future losses under a stressed economic scenario. As noted above and in the slides, in performing these calculations we collect and use information provided by third party providers. The information we used to create these slides included information from the latest surveillance reports that included data from servicer reports received during the most recent month. Third party sources use assumptions, judgments and estimates in determining data, and different third parties may provide different data. It should be noted that certain securities report on a quarterly vs. monthly basis. For those securities, the most recent available information was used. It should be noted that industry information, rather than portfolio experience was used in certain instances where industry information resulted in a more conservative approach. State Street does not independently verify the data obtained from third party providers that is used in determining and estimating SFL, HCL, Avg. CE and Coverage and the information is subject to the risk of inaccuracy. As noted above and in the slides, State Street’s estimates are based upon various subjective assumptions, and there is no assurance that these assumptions accurately predict maximum potential or likely future losses.