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 19, 2011

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 19, 2011, State Street Corporation issued a news release announcing its results of operations and related financial information for the fourth quarter of 2010.  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, 2010, which will be referenced in connection with the investor conference call to be held by State Street on January 19, 2011, is furnished with this Form 8-K as Exhibit 99.2.

Item 9.01.          Financial Statements and Exhibits.

(d) Exhibits.

State Street Corporation’s news release dated January 19, 2011, announcing fourth quarter 2010 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 19, 2011 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,
			Corporate Controller and
			Chief Accounting Officer
Date:	January 19, 2011

EXHIBIT INDEX

Exhibit No.	Description
99.1	News release dated January 19, 2011, announcing fourth quarter 2010 results of operations and related financial information.
99.2	Slide presentation pertaining to State Street’s investment portfolio as of December 31, 2010.

EX-99.1

Exhibit 99.1

State Street Reports 2010 Earnings Per Shareof $3.09 on $9.0 Billion in Revenue

Operating-Basis Earnings Per Share of $3.40 Increased 2% from $3.32in 2009

Operating-Basis Revenue Increased 7% from 2009 Driven Primarily by Increase in Servicing Fee Revenue

BOSTON--(BUSINESS WIRE)--January 19, 2011--State Street Corporation today announced full-year and fourth-quarter 2010 earnings per common share of $3.09 and $0.16, compared to $3.46 and $1.00 for the full year and the fourth quarter of 2009, respectively. Fourth-quarter earnings per share include the impact of certain actions taken to accelerate growth and to provide greater capital flexibility. These actions resulted in a loss of $0.67 per share resulting from a repositioning of the investment portfolio and a restructuring charge associated with a reduction in force and real estate consolidation of $0.21 per share. The full-year 2009 results are presented, and comparisons are made, before an extraordinary after-tax loss of $7.77 per share associated with the consolidation of the Company’s asset-backed commercial paper conduits onto its balance sheet. Revenue in 2010 was $8.953 billion, an increase of 4% from $8.640 billion in 2009 and was $2.043 billion in the fourth quarter of 2010, down 10% from $2.280 billion in the fourth quarter of 2009. Expenses of $6.842 billion in 2010 increased 15% from $5.966 billion in 2009, primarily due to a $414 million pre-tax securities finance charge recorded in the second quarter of 2010 and the fourth-quarter restructuring charge of $156 million, as well as merger and integration costs of $89 million, primarily associated with the acquisitions of Intesa Sanpaolo’s Securities Servicing business (“Intesa”) and Mourant International Finance Administration (“Mourant”). In the fourth quarter of 2010, expenses were $1.792 billion, including the above restructuring charge and merger and integration costs of $12 million primarily associated with the acquisitions, compared to $1.565 billion in the fourth quarter of 2009. Return on shareholders’ equity was 9.5% in 2010, down from 13.2% in 2009 and was 1.8% in the fourth quarter of 2010 compared to 14.0% in the fourth quarter of 2009.

Compared to the third quarter of 2010, fourth quarter 2010 earnings per share decreased 85% from $1.08 per share, primarily due to the loss associated with the investment portfolio repositioning and the restructuring charge, and revenue declined 12% from $2.310 billion, also primarily due to the loss associated with the investment portfolio repositioning. Expenses in the third quarter of 2010 were $1.527 billion. For the third quarter of 2010, return on shareholders’ equity was 12.9%.

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. Reconciliations of GAAP-basis results to operating-basis results are provided in the addendum at the end of this news release. Also see “Additional Information.” Operating-basis net interest revenue for all periods is presented on a fully taxable-equivalent basis and excludes discount accretion related to former conduit assets.

Operating-basis earnings per share in 2010 were $3.40 compared to $3.32 in 2009. Operating-basis revenue in 2010 was $8.714 billion, up 7.1% from $8.138 billion in 2009. Operating-basis expenses increased to $6.176 billion, up 9.0% from 2009. On an operating basis, return on shareholders’ equity was 10.4% in 2010 compared to 12.6% in 2009. Comparing 2010 with 2009, negative operating leverage of 190 basis points was primarily due to lower incentive compensation expense in 2009, reflecting the implementation of the Tangible Common Equity (TCE) improvement plan.

Operating-basis earnings per share in the fourth quarter of 2010 were $0.87 compared to $0.71 in the fourth quarter of 2009 and $0.86 in the third quarter of 2010. Operating-basis revenue in the fourth quarter of 2010 was $2.281 billion, an increase of 9.6% from the fourth quarter of 2009 and an increase of 5.9% from $2.154 billion in the third quarter of 2010. Operating-basis expenses in the fourth quarter of 2010 were $1.624 billion, an increase of 4.4% from the fourth quarter of 2009 and an increase of 7.0% from $1.518 billion in the third quarter of 2010. On an operating basis, comparing the fourth quarter of 2010 with the fourth quarter of 2009, the Company achieved 520 basis points of positive operating leverage. On an operating basis, return on shareholders’ equity was 9.8% in the fourth quarter, compared to 9.9% in the fourth quarter of 2009 and 10.2% in the third quarter of 2010.

Joseph L. Hooley, State Street's chairman and chief executive officer, said, “In the fourth quarter, we continued to experience favorable growth in servicing and management fees, and in addition, we saw some improvement in trading services revenue compared to the third quarter. We also maintained control over expenses, and on an operating basis in the fourth quarter we achieved 520 basis points of positive operating leverage compared to the fourth quarter of 2009.”

Commenting on the fourth-quarter actions the Company undertook, he said, “During the quarter, we took significant actions that we expect to positively impact State Street’s results in the coming years. First, we announced a multi-year plan to transform our operating model, including a comprehensive technology program, designed to increase efficiencies and position the Company for accelerated growth. Second, we repositioned our investment portfolio to provide greater flexibility for capital deployment in the future. Our capital levels are strong, significantly in excess of the current regulatory well capitalized requirements; and we are well positioned for the implementation of Basel III capital requirements as we understand them, far ahead of their required implementation dates.

He continued, “In 2010 we won mandates for $1.4 trillion in assets to be serviced, $390 billion of which are scheduled for installation in 2011. State Street Global Advisors (SSgA) continues to benefit from growth in passive and ETF assets. In 2010 SSgA added about $160 billion in gross new assets, $40 billion of which are to be installed in 2011. In January 2011, we closed the acquisition of Bank of Ireland Asset Management (BIAM), which expands SSgA’s offerings, particularly in active fundamental management. The acquisitions of the Intesa and Mourant businesses were modestly accretive in 2010, and the integrations continue to progress well and are on track to meet the outlook we previously provided. We achieved a full-year operating-basis net interest margin of 168 basis points, which excludes discount accretion.”

Hooley concluded, “While near-term we expect increased regulatory costs, as well as lower net interest revenue in 2011 due to pressure from the low interest-rate environment and the impact of the repositioning of the investment portfolio, we are well positioned to take advantage of global growth opportunities and, as the economy normalizes, we remain committed to our long-term financial goals.”

The table below provides a summary of selected financial information and key ratios for the indicated periods, presented on an operating basis where noted. Unless otherwise specified, all capital ratios referenced in this news 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 news release for reconciliations applicable to the tier 1 common and TCE ratios.

	Q4 2010			Q3 2010			Increase/(Decrease)					Q4 2009			Increase/(Decrease)
(dollars in millions)
For the quarters ended:
Total revenue(1)	$	2,281		$	2,154		$	127		5.9	%	$	2,082		$	199	9.6	%
Total expenses(1)		1,624			1,518			106		7.0	%		1,556			68	4.4	%
Earnings per common share(1)	$	0.87		$	0.86		$	0.01		1.2	%	$	0.71		$	0.16	22.5	%
Return on common equity(1)		9.8	%		10.2	%	(40 bps)						9.9	%	(10) bps
As of period end:
Total assets		160,809			172,964			(12,155	)	(7.0	)%		157,946			2,863	1.8	%
Unrealized loss on investment portfolio, after-tax		(504	)		(281	)		(223	)	(79.4	)%		(2,286	)		1,782	78.0	%
AUCM (dollars in billions)
Assets under custody and administration(2)	$	21,527		$	20,226		$	1,301		6.4	%	$	18,795		$	2,732	14.5	%
Assets under management		2,010			1,959			51		2.6	%		1,951			59	3.0	%
Total capital		22.0	%		17.1	%	490 bps						19.1	%	290 bps
Tier 1 capital ratio		20.5	%		15.8	%	470 bps						17.7	%	280 bps
Tier 1 leverage ratio		8.2	%		8.3	%	(10) bps						8.5	%	(30) bps
Tier 1 common ratio		18.1	%		13.9	%	420 bps						15.6	%	250 bps
TCE ratio		7.6	%		6.9	%	70 bps						6.6	%	100 bps
TCE/RWA ratio		17.2	%		13.3	%	390 bps						12.8	%	440 bps

(1)

Presented on an operating basis. Operating-basis results for the fourth quarter of 2009 presented in this news release have been adjusted to reflect the 2010 basis of presentation and therefore exclude discount accretion associated with the May 2009 consolidation of the former asset-backed commercial paper conduits. Consequently, these operating-basis results may differ from previously disclosed operating-basis results for the same period.

(2)

Includes assets under custody of $15,860 billion, $14,860 billion, and $13,748 billion, respectively, as of period end Q4 2010, Q3 2010, and Q4 2009.

Total assets were $161 billion at December 31, 2010, including $16.6 billion in excess deposits held primarily at the Federal Reserve and at other central banks. The average balance sheet for the fourth quarter of 2010 was $160 billion, compared to $154 billion for the third quarter of 2010 and $146 billion for the fourth quarter of 2009. State Street’s regulatory capital ratios continue to be strong as of December 31, 2010, with the Company’s total capital ratio at 22.0%, its tier 1 capital ratio at 20.5% and its leverage ratio at 8.2%. In addition, at that date, the Company’s tier 1 common ratio was 18.1%, its TCE to risk-weighted assets ratio was 17.2%, and its TCE ratio was 7.6%. Ratios adjusted for the effects of the applicable methodologies provided for in the Basel III capital requirements are: total capital ratio of 11.6%, tier 1 capital ratio of 10.6%, tier 1 leverage ratio of 5.9%, and tier 1 common ratio of 9.4%. These ratios reflect State Street’s estimates of the impact of the requirements under Basel III affecting capital, based upon published statements of the Basel Committee and the Federal Reserve. See “Additional Information” below for information concerning the specified capital ratios and the addendum at the end of this news release for reconciliations of these ratios to ratios calculated under presently applicable requirements.

At December 31, 2010, the after-tax, unrealized mark-to-market losses in the investment portfolio were $504 million, up from $281 million at September 30, 2010 primarily due to the steepening of the yield curve in the second half of the fourth quarter, and down from $2.29 billion as of December 31, 2009, primarily due to significant spread compression.

In the fourth quarter of 2010, GAAP results included discount accretion of $139 million, or $0.17 per share, related to the former conduit assets. As of December 31, 2010, the Company expects a pre-tax aggregate of about $1.3 billion to accrete into interest revenue over the remaining lives of the former conduit assets, of which it expects approximately $200 million to accrete in 2011. These expectations are based on many assumptions, including holding the securities to maturity, anticipated pre-payment speeds, credit quality, and sales.

The following tables provide the components of operating-basis revenue and operating-basis expenses for the noted periods:

Operating-Basis Revenue
(dollars in millions)	Q4 2010			Q3 2010		% Increase/ (Decrease)		Q4 2009		% Increase/ (Decrease)
Servicing fees (1)	$	1,064		$	1,006	5.8	%	$	895	18.9	%
Investment management fees(1)		221			196	12.8			218	1.4
Trading services revenue		310			228	36.0			270	14.8
Securities finance revenue		69			68	1.5			83	(16.9	)
Processing fees and other revenue		71			71	---			60	18.3
Net interest revenue, fully-taxable equivalent basis(2)		550			568	(3.2	)		499	10.2
Gains (losses) related to investment securities, net		(4	)		17	(123.5	)		57	(107.0	)
Total Operating-Basis Revenue	$	2,281		$	2,154	5.9	%	$	2,082	9.6	%

(1)

The Company reclassified approximately $17 million and $13 million in the third quarter of 2010 and the fourth quarter of 2009, respectively, from management fee revenue to servicing fee revenue.

(2)

Operating-basis information for the fourth quarter of 2010, the third quarter of 2010, and the fourth quarter of 2009 included $33 million, $33 million, and $32 million, respectively, of tax-equivalent adjustments, and excluded $139 million, $189 million, and $230 million, respectively, of discount accretion. GAAP-basis net interest revenue for those periods was $656 million, $724 million, and $697 million, respectively.

Operating-Basis Expenses
(dollars in millions)	Q4 2010		Q3 2010		% Increase/ (Decrease)		Q4 2009		% Increase/ (Decrease)
Salaries and employee benefits	$	935	$	871	7.3	%	$	791	18.2	%
Information systems and communications		191		181	5.5			163	17.2
Transaction processing services		171		165	3.6			158	8.2
Occupancy		117		112	4.5			115	1.7
Other		210		189	11.1			329	(36.2	)
Total Operating-Basis Expenses	$	1,624	$	1,518	7.0	%	$	1,556	4.4	%

FOURTH-QUARTER 2010 RESULTS VS. THE FOURTH QUARTER of 2009

Servicing fees were up 19% to $1.064 billion from $895 million in the fourth quarter of 2009. The increase was attributable primarily to the impact of the acquisition of Intesa and Mourant, new business, and increases in daily average equity valuations. Total assets under custody and administration were $21.527 trillion at December 31, 2010, up 15% compared with $18.795 trillion at December 31, 2009. Daily average values for the S & P 500 Index were up 11% and the MSCI^® EAFE Index^ES increased approximately 3% from the fourth quarter of 2009.

Investment management fees, generated by State Street Global Advisors, were $221 million, up 1% from $218 million in the fourth quarter of 2009. The increase in management fees was attributable primarily to increases in the average of month-end valuations in worldwide equity markets and new business. Average month-end equity valuations increased about 12% and 3% compared to the fourth quarter of 2009 as measured by the S & P 500 and the MSCI^® EAFE index^ES, respectively. Total assets under management at December 31, 2010, were $2.010 trillion, up 3% compared to $1.951 trillion at December 31, 2009.

Trading services revenue, which includes foreign exchange trading revenue and brokerage and other fees, was $310 million for the fourth quarter of 2010, an increase of 15% from $270 million in the fourth quarter of 2009. Foreign exchange revenue increased 19% primarily due to changes in product mix offset slightly by lower volatility and volumes. Brokerage and other fees were up about 10% due primarily to an increase in electronic trading.

Securities finance revenue was $69 million in the quarter, down 17% from $83 million in the fourth quarter of 2009 due primarily to both compressed spreads and lower volumes. Processing fees and other revenue was $71 million, up from $60 million in the fourth quarter of 2009.

Net interest revenue on a fully-taxable equivalent basis, which includes discount accretion, was $689 million. On an operating basis, which excludes discount accretion, net interest revenue was $550 million, an increase of 10% from $499 million in the fourth quarter of 2009 due to a modest improvement in funding costs and the impact of deposits added in connection with the Intesa acquisition. Fully taxable-equivalent net interest margin, including the discount accretion, was 207 basis points in the fourth quarter of 2010 compared to 235 basis points in the fourth quarter of 2009. Operating-basis net interest margin was 165 basis points in the fourth quarter of 2010, compared to 161 basis points in the fourth quarter of 2009.

In the fourth quarter of 2010, on an operating basis, we recorded $3 million of net gains from sales of available-for-sale securities. Separately, we recorded $(7) million of other-than-temporary impairment, resulting in $4 million of net losses related to investment securities. As previously announced, during the fourth quarter, State Street sold investment securities of approximately $11 billion in order to increase its balance sheet flexibility in deploying capital, to enhance its capital ratios under evolving regulatory capital standards, and to reduce its exposure to certain asset classes.

Operating-basis expenses of $1.624 billion in the fourth quarter of 2010 increased 4% compared to $1.556 billion in the fourth quarter of 2009 primarily due to increases in salaries and benefits expenses and information systems and communications, offset partially by a lower level of other expenses. Salaries and benefits expenses increased 18% to $935 million, primarily due to an increase in incentive compensation and the impact of the acquisitions. Information systems and communications expenses were $191 million, an increase of 17% from $163 million due primarily to the impact of the two acquisitions. Transaction processing services expenses were up 8% to $171 million due to higher volumes in the investment servicing business, including the impact of the two acquisitions. Occupancy expenses increased to $117 million from $115 million. Other expenses decreased 36% to $210 million due to lower securities processing costs, the impact of an adverse judgment of $60 million rendered by a Netherlands court in the fourth quarter of 2009, and the impact of a $40 million insurance recovery in the fourth quarter of 2010, offset partially by increased expenses associated with the two acquisitions.

The effective tax rate on fourth-quarter 2010 GAAP-basis earnings was 67.2%, compared to 26.7% in the fourth quarter of 2009 due primarily to the partial write-off of a deferred tax asset associated with certain of the investment securities sold in the investment portfolio repositioning transaction. The effective tax rate on operating-basis earnings for the fourth quarter of 2010 and for the full year 2010 was 29.5% and 28.3% respectively, in line with our previously disclosed outlook. The effective tax rate on operating-basis earnings for the full year 2011 is expected to be between 28% and 29%.

FOURTH-QUARTER 2010 RESULTS VS. THIRD QUARTER 2010

Servicing fees were $1.064 billion, up 6% from $1.006 billion in the third quarter due primarily to new business installed and higher average equity valuations. Daily average values as measured by the S & P 500 and the MSCI^® EAFE index^ES increased 10%. Management fees were $221 million, up 13% from $196 million, due primarily to the higher average month-end equity market valuations as well as new business. Average month-end equity valuations were up 10% as measured by the S & P 500 and increased 8% as measured by the MSCI^® EAFE index^ES. Trading services revenue was $310 million, up 36% compared to $228 million due to higher volatility and higher volumes in foreign exchange as well as higher fees primarily from transition management in brokerage and other fees. Securities finance revenue was $69 million, up slightly from $68 million in the third quarter. Processing fees and other revenue was flat at $71 million. Fully taxable-equivalent net interest revenue in the fourth quarter of 2010 totaled $689 million, including discount accretion. On an operating basis, fully taxable-equivalent net interest revenue in the fourth quarter of 2010 was $550 million, down from $568 million due to the impact of the repositioning of the investment portfolio.

Compared to the third quarter of 2010, salaries and benefits expense increased 7% to $935 million from $871 million, primarily due to an increase in incentive compensation and fees for contract services. Information systems and communications expense was $191 million, up 6% due primarily to higher global infrastructure costs. Other expenses were $210 million, up 11%, due to miscellaneous expenses, including donations, travel expenses, professional fees and sale and promotion costs.

ADDITIONAL INFORMATION

All per share amounts represent fully diluted earnings per common share. Return on common shareholders’ equity is determined by dividing full-year or annualized net income available to common equity by average common shareholders’ equity for the period. Operating-basis return on common equity utilizes full-year or annualized operating-basis net income in the calculation. 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.

Non-GAAP Financial Measures

This news release includes financial information presented on a GAAP basis as well as on an operating basis. Operating-basis financial information is a non-GAAP presentation. 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.

This news release also includes capital ratios in addition to, or adjusted from, those calculated in accordance with applicable regulatory requirements. These include capital ratios based on tier 1 common capital and capital ratios adjusted to reflect our estimate of the application of the Basel III capital requirements. These non-regulatory and adjusted capital measures are non-GAAP financial measures. Management presently evaluates the non-GAAP capital ratios presented in this news release to aid in its understanding of State Street’s capital position under a variety of standards, including presently applicable and evolving regulatory requirements. Management believes that the use of the non-GAAP capital ratios described in this news release similarly aids in an investor's understanding of State Street's capital position and therefore is of interest to investors.

In addition to the reconciliations described in the descriptions below of the capital ratios referenced in this news release, the addendum to this news release also includes reconciliations of the following other non-GAAP financial measures referenced in this news release: operating-basis results to GAAP-basis results and Basel III-adjusted capital ratios to capital ratios calculated under presently applicable requirements.

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 and capital ratios determined in accordance with presently applicable regulatory requirements.

Capital Ratios

The total capital, the tier 1 capital, and the 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 is sometimes used by the Federal Reserve in connection with its supervisory capital assessment programs. 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.

• The total capital, 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.
• 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) total 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. Management is currently monitoring this ratio, along with the other capital ratios described in this news 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 tier 1 common capital as of December 31, 2010, September 30, 2010, and December 31, 2009 are provided in the addendum at the end of this news 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 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 TCE ratio as of December 31, 2010, September 30, 2010, and December 31, 2009 are provided in the addendum at the end of this news release.
• The ratio of tangible common equity to risk-weighted assets, or TCE/RWA ratio, is calculated by dividing consolidated total 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). 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 TCE/RWA ratio as of December 31, 2010, September 30, 2010 and December 31, 2009, are included in the addendum at the end of this news release.

INVESTOR CONFERENCE CALL

State Street will webcast an investor conference call today, Wednesday, January 19, 2011, at 9:30 a.m. EST, 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 #62663636). 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#62663636), beginning approximately two hours after the call’s completion. The telephone replay will be available for approximately two weeks following the conference call. This news release, presentation materials referred to on the conference call, and additional financial information are available on State Street’s website, at 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 $21.527 trillion in assets under custody and administration and $2.01 trillion in assets under management at December 31, 2010, State Street operates in 26 countries and more than 100 geographic markets and employs 28,670 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 news release contains forward-looking statements as defined by United States securities laws, including statements relating to our goals and expectations regarding our business, financial condition, results of operations, investment portfolio performance and strategies, the financial and market outlook, governmental and regulatory initiatives and developments, and the business environment. Forward-looking statements are often identified by such forward-looking terminology as "plan," "expect," "look," "believe," "anticipate," "estimate," "seek," "may," "will," "trend," "target,” and "goal," or similar statements or variations of such terms. These statements are not guarantees of future performance, are inherently uncertain, are based on current assumptions that are difficult to predict and involve a number of risks and uncertainties. Therefore, actual outcomes and results may differ materially from what is expressed in those statements, and those statements should not be relied upon as representing our expectations or beliefs as of any date subsequent to January 19, 2011.

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

• the manner in which the Federal Reserve implements the Dodd-Frank Act and Basel III, and whether State Street is designated as systemically important for purposes of the Dodd-Frank Act;
• material differences between the actual required capital ratios under Basel III, as applicable to State Street, when fully implemented by the Federal Reserve Board, and the estimates of such ratios provided in this news release, resulting in the need for substantial additional capital in the future;
• changes in law or regulation that may adversely affect our, our clients’ or our counterparties’ business activities and the products or services that we sell, including additional or increased taxes or assessments thereon, capital adequacy requirements and changes that expose us to risks related to compliance;
• 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 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 clients 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 clients;
• the credit quality, credit agency ratings, and fair values of the securities in our investment securities portfolio, a deterioration or downgrade of which could lead to other-than-temporary impairment of the respective securities and the recognition of an impairment loss in our consolidated statement of income;

• the finalization and execution of our previously announced planned global multi-year program designed to enhance service excellence and innovation, deliver increased efficiencies in our operating model and position us for accelerated growth, including our ability to implement programs to transform and improve technology and business processes and create efficiencies, to develop constructive vendor, outsourcing and other third-party relationships and to promote other business model enhancement and cost savings initiatives; and increases in the volatility of our GAAP-basis and operating-basis earnings resulting from a change in our estimate of the charges or expenses necessary to execute the planned global multi-year program and the resulting savings from such program;
• the maintenance of credit agency ratings for our debt and depository obligations as well as the level of credibility of credit agency ratings;
• the risks that acquired businesses will not be integrated successfully, or that the integration will take longer than anticipated, that expected synergies will not be achieved or unexpected disynergies will be experienced, that client and deposit retention goals will not be met, that other regulatory or operational challenges will be experienced and that disruptions from the transaction will harm relationships with clients, employees or regulators;
• the ability to complete acquisitions, divestitures and joint ventures, including the ability to obtain regulatory approvals, the ability to arrange financing as required, and the ability to satisfy other closing conditions;
• the performance and demand for the products and services we offer, including the level and timing of redemptions and withdrawals from our collateral pools and other collective investment products;
• the possibility of our clients 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 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 or proceedings;
• our ability to control operating risks, information technology systems risks and outsourcing risks, and our ability to protect our intellectual property rights, the possibility of errors in the quantitative models we use to manage our business and the possibility that our controls will fail or be circumvented;
• adverse publicity or other reputational harm;
• our ability to grow revenue, attract, retain and compensate highly skilled people, control expenses and attract the capital necessary to achieve our business goals and comply with regulatory requirements;
• the potential for new products and services to impose additional costs on us and expose us to increased operational risk;
• changes in accounting standards and practices; and
• changes in the interpretation of existing tax laws by U.S. and non-U.S. tax authorities that affect the amount of taxes due.

Other important factors that could cause actual results to differ materially from those indicated by any forward-looking statements are set forth in our 2009 Annual Report on Form 10-K and our subsequent SEC filings. We encourage investors to read these filings, particularly the sections on risk factors, for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this presentation speak only as of the date hereof, January 19, 2011, and we do not undertake efforts to revise those forward-looking statements to reflect events after that date.

STATE STREET CORPORATION
Earnings Release Addendum
CONSOLIDATED FINANCIAL HIGHLIGHTS
December 31, 2010
	Quarters Ended										% Change
											Q4 2010			Q4 2010
(Dollars in millions, except per share amounts	December 31,				September 30,			December 31,			vs.			vs.
or where otherwise noted)	2010				2010			2009			Q3 2010			Q4 2009
Revenue:
Fee revenue	$	1,735		$	1,569		$	1,526			11		%	14		%
Net interest revenue		656			724			697			(9	)		(6	)
Net gains (losses) from sales of available-for-sale securities (1)		(341	)		91			108
Losses from other-than-temporary impairment		(7	)		(74	)		(51	)
Total Revenue		2,043			2,310			2,280			(12	)		(10	)
Provision for Loan Losses		(1	)		1			35
Total Expenses:
Expenses from operations		1,624			1,518			1,556			7			4
Restructuring charges		156			-			-
Merger and integration costs and U.K. bonus tax, net		12			9			9
Income tax expense		169			236			182
Net Income		83			546			498			(85	)		(83	)
Net Income Available to Common Shareholders		81			540			498
Diluted Earnings Per Common Share		.16			1.08			1.00			(85	)		(84	)
Average Diluted Common Shares Outstanding (in thousands)		499,232			498,159			497,615
Cash Dividends Declared Per Common Share	$	.01		$	.01		$	.01
Closing Price Per Share of Common Stock (at quarter end)		46.34			37.66			43.54
Ratios:
Return on common equity before extraordinary loss		1.8		%	12.9		%	14.0		%
Net interest margin, fully taxable-equivalent basis		2.07			2.36			2.35
Tier 1 risk-based capital		20.5			15.8			17.7
Total risk-based capital		22.0			17.1			19.1
Tier 1 leverage		8.2			8.3			8.5
Tier 1 common to risk-weighted assets (2)		18.1			13.9			15.6
Tangible common equity to tangible assets (2)		7.6			6.9			6.6
Tangible common equity to risk-weighted assets (2)		17.2			13.3			12.8
At Quarter End:
Assets Under Custody and Administration (3) (in trillions)	$	21.53		$	20.23		$	18.79
Assets Under Management (in trillions)		2.01			1.96			1.95
	Years Ended							% Change
								2010
	December 31,				December 31,			vs.
(Dollars in millions, except per share amounts)	2010				2009			2009
Revenue:
Fee revenue	$	6,540		$	5,935			10		%
Net interest revenue		2,699			2,564			5
Net gains (losses) from sales of available-for-sale securities (1)		(55	)		368
Losses from other-than-temporary impairment		(231	)		(227	)
Total Revenue		8,953			8,640			4
Provision for Loan Losses		25			149
Total Expenses:
Expenses from operations		6,176			5,667			9
Securities lending charge		414			-
Provision for legal exposure		-			250
Restructuring charges		156			-
Merger and integration costs and U.K. bonus tax, net		96			49
Income tax expense(4)		530			722
Net Income Before Extraordinary Loss		1,556			1,803			(14	)
Extraordinary Loss, Net of Tax		-			(3,684	)
Net Income (Loss)		1,556			(1,881	)
Net Income Before Extraordinary Loss Available to Common Shareholders		1,540			1,640
Net Income (Loss) Available to Common Shareholders		1,540			(2,044	)
Diluted Earnings Per Common Share Before Extraordinary Loss	$	3.09		$	3.46			(11	)
Diluted Earnings (Loss) Per Common Share		3.09			(4.31	)
Average Diluted Common Shares Outstanding (in thousands):		497,924			474,003
Cash Dividends Declared Per Common Share	$	.04		$	.04
Return on Common Equity Before Extraordinary Loss		9.5		%	13.2		%
Net interest margin, fully taxable-equivalent basis		2.24			2.19
(1) Fourth quarter of 2010 includes a net loss of $344 million related to a restructuring of the investment portfolio.
(2) Refer to accompanying reconciliations for additional information.
(3) Includes assets under custody of $15.86 trillion, $14.86 trillion, and $13.75 trillion, respectively.
(4) Year ended December 31, 2010 reflects a discrete tax benefit of $180 million generated by the restructuring of former non-U.S. conduit assets.

STATE STREET CORPORATION
Earnings Release Addendum
SELECTED CONSOLIDATED FINANCIAL INFORMATION
Quarters and Years Ended December 31, 2010 and December 31, 2009
	Quarters Ended										Years Ended
	December 31,			December 31,							December 31,			December 31,
(Dollars in millions, except per share amounts)	2010			2009				% Change			2010			2009			% Change
Fee Revenue:
Servicing fees	$	1,064			$	895		19		%	$	3,938		$	3,334		18		%
Management fees		221				218		1				829			766		8
Trading services		310				270		15				1,106			1,094		1
Securities finance		69				83		(17	)			318			570		(44	)
Processing fees and other		71				60		18				349			171		104
Total fee revenue		1,735				1,526		14				6,540			5,935		10
Net Interest Revenue:
Interest revenue		834				877		(5	)			3,462			3,286		5
Interest expense		178				180		(1	)			763			722		6
Net interest revenue (1)		656				697		(6	)			2,699			2,564		5
Gains (Losses) related to investment securities, net:
Net gains (losses) from sales of available-for-sale securities		(341	)			108						(55	)		368
Losses from other-than-temporary impairment		(39	)			(257	)					(651	)		(1,155	)
Losses not related to credit		32				206						420			928
Gains (Losses) related to investment securities, net		(348	)			57						(286	)		141
Total revenue		2,043				2,280		(10.4	)			8,953			8,640		3.6
Provision for loan losses		(1	)			35						25			149
Expenses:
Salaries and employee benefits		935				791		18				3,524			3,037		16
Information systems and communications		191				163		17				713			656		9
Transaction processing services		171				158		8				653			583		12
Occupancy		117				115		2				463			475		(3	)
Securities lending charge		-				-						414			-
Provision for legal exposure		-				-						-			250
Restructuring charges		156				-						156			-
Merger and integration costs		12				9		33				89			49		82
Other		210				329		(36	)			830			916		(9	)
Total expenses		1,792				1,565		14.5				6,842			5,966		14.7
Income before income tax expense and extraordinary loss		252				680		(63	)			2,086			2,525		(17	)
Income tax expense		169				182						530			722
Income before extraordinary loss		83				498		(83	)			1,556			1,803		(14	)
Extraordinary loss, net of tax		-				-						-			(3,684	)
Net income (loss)	$	83			$	498					$	1,556		$	(1,881	)
Adjustments to net income (loss):
Prepayment of preferred stock discount	$	-			$	-					$	-		$	(106	)
Dividend on preferred stock		-				-						-			(46	)
Accretion of preferred stock discount		-				-						-			(11	)
Earnings allocated to participating securities		(2	)			-						(16	)		-
		(2	)			-						(16	)		(163	)
Net income before extraordinary loss available to common shareholders	$	81			$	498					$	1,540		$	1,640
Net income (loss) available to common shareholders	$	81			$	498					$	1,540		$	(2,044	)
Earnings Per Common Share Before Extraordinary Loss:
Basic	$	.17			$	1.01		(83	)		$	3.11		$	3.50		(11	)
Diluted		.16				1.00		(84	)			3.09			3.46		(11	)
Earnings (Loss) Per Common Share:
Basic	$	.17			$	1.01		(83	)		$	3.11		$	(4.32	)	(172	)
Diluted		.16				1.00		(84	)			3.09			(4.31	)	(172	)
Average Common Shares Outstanding (in thousands):
Basic		495,758				493,459						495,394			470,602
Diluted		499,232				497,615						497,924			474,003
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 $689 million and $729 million for the quarters ended December 31, 2010 and 2009, respectively, and $2.83 billion and $2.69 billion for the years ended December 31, 2010 and 2009, respectively. These amounts include tax-equivalent adjustments of $33 million and $32 million for the quarters ended December 31, 2010 and 2009, respectively, and $129 million and $126 million for the years ended December 31, 2010 and 2009, respectively.

STATE STREET CORPORATION
Earnings Release Addendum
SELECTED CONSOLIDATED FINANCIAL INFORMATION
Quarters Ended December 31, 2010 and September 30, 2010
	Quarters Ended
		December 31,			September 30,
(Dollars in millions, except per share amounts)		2010			2010		% Change
Fee Revenue:
Servicing fees	$	1,064		$	1,006		6		%
Management fees		221			196		13
Trading services		310			228		36
Securities finance		69			68		1
Processing fees and other		71			71		-
Total fee revenue		1,735			1,569		11
Net Interest Revenue:
Interest revenue		834			904		(8	)
Interest expense		178			180		(1	)
Net interest revenue (1)		656			724		(9	)
Gains (Losses) related to investment securities, net:
Net gains (losses) from sales of available-for-sale securities		(341	)		91
Losses from other-than-temporary impairment		(39	)		(132	)
Losses not related to credit		32			58
Gains (Losses) related to investment securities, net		(348	)		17
Total revenue		2,043			2,310		(11.6	)
Provision for loan losses		(1	)		1
Expenses:
Salaries and employee benefits		935			857		9
Information systems and communications		191			181		6
Transaction processing services		171			165		4
Occupancy		117			112		4
Restructuring charges		156			-
Merger and integration costs		12			23		(48	)
Other		210			189		11
Total expenses		1,792			1,527		17.4
Income before income tax expense		252			782		(68	)
Income tax expense		169			236
Net income	$	83		$	546		(85	)
Earnings allocated to participating securities	$	(2	)	$	(6	)
Net income available to common shareholders	$	81		$	540
Earnings Per Common Share:
Basic	$	.17		$	1.09		(84	)
Diluted		.16			1.08		(85	)
Average Common Shares Outstanding (in thousands):
Basic		495,758			495,729
Diluted		499,232			498,159
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 $689 million and $757 million for the quarters ended December 31, 2010 and September 30, 2010 respectively. These amounts include tax-equivalent adjustments of $33 million for both of the quarters ended December 31, 2010 and September 30, 2010.

STATE STREET CORPORATION
Earnings Release Addendum
SELECTED CONSOLIDATED OPERATING-BASIS FINANCIAL INFORMATION
Quarters and Years Ended December 31, 2010 and December 31, 2009
	Quarters Ended (1)										Years Ended (1)
	December 31,				December 31,						December 31,				December 31,
(Dollars in millions, except per share amounts)	2010				2009			% Change			2010				2009				% Change
Fee Revenue:
Servicing fees	$	1,064			$	895		19		%	$	3,938			$	3,334			18		%
Management fees		221				218		1				829				766			8
Trading services		310				270		15				1,106				1,094			1
Securities finance		69				83		(17	)			318				570			(44	)
Processing fees and other		71				60		18				349				171			104
Total fee revenue		1,735				1,526		14				6,540				5,935			10
Net Interest Revenue:
Interest revenue, operating basis		728				679		7				2,879				2,767			4
Interest expense		178				180		(1	)			763				705			8
Net interest revenue, operating basis		550				499		10				2,116				2,062			3
Gains (Losses) related to investment securities, net		(4	)			57						58				141
Total revenue, operating basis (2)		2,281				2,082		9.6				8,714				8,138			7.1
Provision for loan losses		(1	)			35						25				149
Expenses:
Salaries and employee benefits		935				791		18				3,517				3,037			16
Information systems and communications		191				163		17				713				656			9
Transaction processing services		171				158		8				653				583			12
Occupancy		117				115		2				463				475			(3	)
Other		210				329		(36	)			830				916			(9	)
Total expenses, operating basis (2)		1,624				1,556		4.4				6,176				5,667			9.0
Income before income tax expense, operating basis		658				491		34				2,513				2,322			8
Income tax expense, operating basis		184				106						676				566
Tax-equivalent adjustment		33				32						129				126
Net income, operating basis	$	441			$	353		25			$	1,708			$	1,630			5
Adjustments to net income:
Dividend on preferred stock	$	-			$	-					$	-			$	(46	)
Accretion of preferred stock discount		-				-						-				(11	)
Earnings allocated to participating securities		(6	)			-						(18	)			-
		(6	)			-						(18	)			(57	)
Net income available to common shareholders, operating basis	$	435			$	353					$	1,690			$	1,573
Diluted earnings per common share, operating basis	$	.87			$	.71		23			$	3.40			$	3.32			2
Average diluted common shares outstanding (in thousands)		499,232				497,615						497,924				474,003
Return on common equity, operating basis		9.8		%		9.9	%					10.4		%		12.6		%

(1)

Refer to the accompanying reconciliation of reported results to operating-basis results.

(2)

For the quarter ended December 31, 2010, positive operating leverage in the year-over-year comparison was 520 basis points, based on an increase in total operating-basis revenue of 9.6 and an increase in total operating-basis expenses of 4.4%. For the year ended December 31, 2010, negative operating leverage in the year-over-year comparison was 190 basis points, based on an increase in total operating-basis revenue of 7.1% and an increase in total operating-basis expenses of 9.0%.

STATE STREET CORPORATION
Earnings Release Addendum
SELECTED CONSOLIDATED OPERATING-BASIS FINANCIAL INFORMATION
Quarters Ended December 31, 2010 and September 30, 2010
	Quarters Ended (1)
	December 31,				September 30,
(Dollars in millions, except per share amounts)	2010				2010				% Change
Fee Revenue:
Servicing fees	$	1,064			$	1,006			6		%
Management fees		221				196			13
Trading services		310				228			36
Securities finance		69				68			1
Processing fees and other		71				71			-
Total fee revenue		1,735				1,569			11
Net Interest Revenue:
Interest revenue, operating basis		728				748			(3	)
Interest expense		178				180			(1	)
Net interest revenue, operating basis		550				568			(3	)
Gains (Losses) related to investment securities, net		(4	)			17
Total revenue, operating basis (2)		2,281				2,154			5.9
Provision for loan losses		(1	)			1
Expenses:
Salaries and employee benefits		935				871			7
Information systems and communications		191				181			6
Transaction processing services		171				165			4
Occupancy		117				112			4
Other		210				189			11
Total expenses, operating basis (2)		1,624				1,518			7.0
Income before income tax expense, operating basis		658				635			4
Income tax expense		184				170
Tax-equivalent adjustment		33				33
Net income, operating basis	$	441			$	432			2
Earnings allocated to participating securities	$	(6	)		$	(5	)
Net income available to common shareholders	$	435			$	427
Diluted earnings per common share, operating basis	$	.87			$	.86			1
Average diluted common shares outstanding (in thousands)		499,232				498,159
Return on common equity, operating basis		9.8		%		10.2		%

(1)	Refer to the accompanying reconciliation of reported results to operating-basis results.
(2)	For the quarter ended December 31, 2010, negative operating leverage in the quarter-over-quarter comparison was 110 basis points, based on an increase in total operating-basis revenue of 5.9% and an increase in total operating-basis expenses of 7.0%.

STATE STREET CORPORATION
Earnings Release Addendum
RECONCILIATION OF REPORTED RESULTS TO OPERATING-BASIS RESULTS
Quarter and Year Ended December 31, 2010
(Dollars in millions, except per share amounts)	Quarter Ended December 31, 2010													Year Ended December 31, 2010
	Reported									Operating					Reported								Operating
	Results				Adjustments					Results					Results			Adjustments					Results
Fee Revenue:
Servicing fees	$	1,064								$	1,064			$	3,938								$	3,938
Management fees		221									221				829									829
Trading services		310									310				1,106									1,106
Securities finance		69									69				318									318
Processing fees and other		71									71				349									349
Total fee revenue		1,735									1,735				6,540									6,540
Net Interest Revenue:
Interest revenue		834			$	(106	)	(1	)		728				3,462			$	(583	)	(8	)		2,879
Interest expense		178				-					178				763				-					763
Net interest revenue		656				(106	)				550				2,699				(583	)				2,116
Gains (Losses) related to investment securities, net		(348	)			344		(2	)		(4	)			(286	)			344		(2	)		58
Total revenue		2,043				238					2,281				8,953				(239	)				8,714
Provision for loan losses		(1	)			-					(1	)			25				-					25
Expenses:
Salaries and employee benefits		935				-					935				3,524				(7	)	(9	)		3,517
Information systems and communications		191				-					191				713				-					713
Transaction processing services		171				-					171				653				-					653
Occupancy		117				-					117				463				-					463
Securities lending charge		-				-					-				414				(414	)	(10	)		-
Restructuring charges		156				(156	)	(3	)		-				156				(156	)	(3	)		-
Merger and integration costs		12				(12	)	(4	)		-				89				(89	)	(4	)		-
Other		210				-					210				830				-					830
Total expenses		1,792				(168	)				1,624				6,842				(666	)				6,176
Income before income tax expense		252				406					658				2,086				427					2,513
Income tax expense		169				15		(5	)		184				530				146		(11	)		676
Tax-equivalent adjustment		-				33		(6	)		33				-				129		(6	)		129
Net Income	$	83			$	358				$	441			$	1,556			$	152				$	1,708
Earnings allocated to participating securities	$	(2	)		$	(4	)	(7	)	$	(6	)		$	(16	)		$	(2	)	(7	)	$	(18	)
Net income available to common shareholders	$	81			$	354				$	435			$	1,540			$	150				$	1,690
Diluted earnings per common share	$	.16			$	.71				$	.87			$	3.09			$	.31				$	3.40
Average diluted common shares outstanding (in thousands)		499,232				499,232					499,232				497,924				497,924					497,924
Return on common equity		1.8		%		8.0		%			9.8		%		9.5		%		0.9		%			10.4		%

(1)	Represents tax-equivalent adjustment of $33 million, which is not included in reported results, net of $139 million of discount accretion related to former conduit assets.
(2)	Represents a net loss related to a restructuring of the investment portfolio.
(3)	Represents restructuring charges related to a business operations and information technology enhancements program.
(4)	Represents merger and integration costs.
(5)	Represents net tax effect of non-operating adjustments.
(6)	Represents tax-equivalent adjustment, which is not included in reported results.
(7)	Represents effect of the difference between reported and operating-basis earnings on allocation to participating securities.
(8)	Represents tax-equivalent adjustment of $129 million, which is not included in reported results, net of $712 million of discount accretion related to former conduit assets.
(9)	Represents a tax on bonus payments to employees in the U.K.
(10)	Represents a charge, including related costs of $9 million, to provide for a one-time cash contribution of $330 million to SSgA lending fund collateral pools and $75 million to establish a reserve to address potential inconsistencies in connection with the implementation of redemption restrictions applicable to cash collateral pools underlying the agency lending program.
(11)	Represents a discrete tax benefit of $180 million generated by the restructuring of former non-U.S. conduit assets and the net tax effect of non-operating adjustments.

STATE STREET CORPORATION
Earnings 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	$	895							$	895		$	3,334								$	3,334
Management fees		218								218			766									766
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		$	(198	)	(1	)		679			3,286			$	(519	)	(5	)		2,767
Interest expense		180			-					180			722				(17	)	(6	)		705
Net interest revenue		697			(198	)				499			2,564				(502	)				2,062
Gains related to investment securities, net		57			-					57			141				-					141
Total revenue		2,280			(198	)				2,082			8,640				(502	)				8,138
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	)	(7	)		-
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			(189	)				491			2,525				(203	)				2,322
Income tax expense		182			(76	)	(3	)		106			722				(156	)	(3	)		566
Tax-equivalent adjustment		-			32		(4	)		32			-				126		(4	)		126
Income before extraordinary loss		498			(145	)				353			1,803				(173	)				1,630
Extraordinary loss, net of tax		-			-					-			(3,684	)			3,684		(8	)		-
Net income (loss)	$	498		$	(145	)			$	353		$	(1,881	)		$	3,511				$	1,630
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		$	(145	)			$	353		$	1,640			$	(67	)			$	1,573
Net income (loss) available to common shareholders	$	498		$	(145	)			$	353		$	(2,044	)		$	3,617				$	1,573
Diluted earnings per common share before extraordinary loss	$	1.00		$	(.29	)			$	.71		$	3.46			$	(.14	)			$	3.32
Diluted earnings (loss) per common share		1.00			(.29	)				.71			(4.31	)			7.63					3.32
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	%		(4.1	)	%			9.9	%		13.2		%		(0.6	)	%			12.6		%

(1)	Represents tax-equivalent adjustment of $32 million, which is not included in reported results, net of $230 million of discount accretion related to former conduit assets.
(2)	Represents merger and integration costs.
(3)	Represents net tax effect of non-operating adjustments.
(4)	Represents tax-equivalent adjustment, which is not included in reported results.
(5)	Represents tax-equivalent adjustment of $126 million, which is not included in reported results, net of $24 million of revenue related to the AMLF and $621 million of discount accretion related to former conduit assets.
(6)	Represents interest expense related to the AMLF.
(7)	Represents provision for legal exposure associated with certain fixed-income strategies managed by SSgA.
(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 redemption of the U.S. Treasury's preferred stock investment under the TARP Capital Purchase Program.

STATE STREET CORPORATION
Earnings Release Addendum
RECONCILIATION OF REPORTED RESULTS TO OPERATING-BASIS RESULTS
Quarter Ended September 30, 2010
(Dollars in millions, except per share amounts)	Quarter Ended September 30, 2010
	Reported									Operating
	Results				Adjustments					Results
Fee Revenue:
Servicing fees	$	1,006								$	1,006
Management fees		196									196
Trading services		228									228
Securities finance		68									68
Processing fees and other		71									71
Total fee revenue		1,569									1,569
Net Interest Revenue:
Interest revenue		904			$	(156	)	(1	)		748
Interest expense		180				-					180
Net interest revenue		724				(156	)				568
Gains related to investment securities, net		17				-					17
Total revenue		2,310				(156	)				2,154
Provision for loan losses		1				-					1
Expenses:
Salaries and employee benefits		857				14		(2	)		871
Information systems and communications		181				-					181
Transaction processing services		165				-					165
Occupancy		112				-					112
Merger and integration costs		23				(23	)	(3	)		-
Other		189				-					189
Total expenses		1,527				(9	)				1,518
Income before income tax expense		782				(147	)				635
Income tax expense		236				(66	)	(4	)		170
Tax-equivalent adjustment		-				33		(5	)		33
Net Income	$	546			$	(114	)			$	432
Earnings allocated to participating securities	$	(6	)		$	1		(6	)	$	(5	)
Net income available to common shareholders	$	540			$	(113	)			$	427
Diluted earnings per common share	$	1.08			$	(.22	)			$	.86
Average diluted common shares outstanding (in thousands)		498,159				498,159					498,159
Return on common equity		12.9		%		(2.7	)	%			10.2		%

(1)	Represents tax-equivalent adjustment of $33 million, which is not included in reported results, net of $189 million of discount accretion related to former conduit assets.
(2)	Represents partial reversal of expense associated with a tax on bonus payments to employees in the U.K.
(3)	Represents merger and integration costs.
(4)	Represents net tax effect of non-operating adjustments.
(5)	Represents tax-equivalent adjustment, which is not included in reported results.
(6)	Represents effect of the difference between reported and operating-basis earnings on allocation to participating securities.

STATE STREET CORPORATION
Earnings Release Addendum
CONSOLIDATED STATEMENT OF CONDITION
	December 31,			September 30,			December 31,
(Dollars in millions, except per share amounts)	2010			2010			2009
Assets
Cash and due from banks	$	3,615		$	4,583		$	2,641
Interest-bearing deposits with banks		22,234			24,560			26,632
Securities purchased under resale agreements		2,928			3,941			2,387
Trading account assets		479			1,485			148
Investment securities available for sale		81,881			80,719			72,699
Investment securities held to maturity		12,249			17,577			20,877
Loans and leases (net of allowance of $100, $101 and $79)		11,857			13,665			10,729
Premises and equipment		1,843			1,835			1,953
Accrued income receivable		1,733			1,767			1,497
Goodwill		5,597			5,521			4,550
Other intangible assets		2,593			2,812			1,810
Other assets		13,800			14,499			12,023
Total assets	$	160,809		$	172,964		$	157,946
Liabilities
Deposits:
Noninterest-bearing	$	17,464		$	17,313		$	11,969
Interest-bearing -- U.S.		6,957			9,823			5,956
Interest-bearing -- Non-U.S.		74,228			77,898			72,137
Total deposits		98,649			105,034			90,062
Securities sold under repurchase agreements		7,599			8,671			10,542
Federal funds purchased		7,748			5,308			4,532
Other short-term borrowings		8,694			13,657			20,200
Accrued taxes and other liabilities		11,779			14,152			9,281
Long-term debt		8,553			8,573			8,838
Total liabilities		143,022			155,395			143,455
Shareholders' Equity
Preferred stock, no par: authorized 3,500,000; none issued
Common stock, $1 par: authorized 750,000,000 shares; 502,064,454 , 502,029,493 and 495,365,571 shares issued		502			502			495
Surplus		9,356			9,310			9,180
Retained earnings		8,634			8,556			7,071
Accumulated other comprehensive loss		(689	)		(782	)		(2,238	)
Treasury stock (at cost 420,016, 437,953 and 431,832 shares)		(16	)		(17	)		(17	)
Total shareholders' equity		17,787			17,569			14,491
Total liabilities and shareholders' equity	$	160,809		$	172,964		$	157,946

STATE STREET CORPORATION
Earnings Release Addendum
Tangible Common Equity and Tier 1 Common Ratios - Reconciliations
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)		2010			2010			2009
Consolidated Total Assets		$	160,809		$	172,964		$	157,946
Less:
Goodwill			5,597			5,521			4,550
Other intangible assets			2,593			2,812			1,810
Excess reserves held at central banks			16,612			20,217			21,731
Adjusted assets			136,007			144,414			129,855
Plus deferred tax liabilities			747			803			521
Total tangible assets	A	$	136,754		$	145,217		$	130,376
Consolidated Total Common Shareholders' Equity		$	17,787		$	17,569		$	14,491
Less:
Goodwill			5,597			5,521			4,550
Intangible assets			2,593			2,812			1,810
Adjusted equity			9,597			9,236			8,131
Plus deferred tax liability			747			803			521
Total tangible common equity	B	$	10,344		$	10,039		$	8,652
Tangible common equity ratio	B/A		7.6	%		6.9	%		6.6	%
Ratio of tangible common equity to total risk-weighted assets	B/D		17.2	%		13.3	%		12.8	%
Tier 1 capital		$	12,318		$	11,964		$	12,005
Less trust preferred securities			1,450			1,450			1,450
Tier 1 common capital	C	$	10,868			10,514		$	10,555
Total risk-weighted assets	D		60,203			75,625			67,691
Ratio of tier 1 common capital to total risk-weighted assets	C/D		18.1	%		13.9	%		15.6	%

STATE STREET CORPORATION
BASEL III CAPITAL RECONCILIATION
December 31, 2010
		Current Requirements (1)				Basel III Requirements (2)
	(Dollars in millions)
	Tier 1 capital	$	12,318		A	$	11,460
	Less trust preferred securities		1,450				1,305
	Tier 1 common capital		10,868		B		10,155
	Total capital		13,225		C		12,441
	Total risk-weighted assets		60,203		D		107,698
	Adjusted quarterly average assets		150,896		E		195,896
	Tier 1 capital ratio		20.5	%	A/D		10.6	%
	Total capital ratio		22.0	%	C/D		11.6	%
	Tier 1 common ratio		18.1	%	B/D		9.4	%
	Tier 1 leverage ratio	8.2		%	A/E		5.9	%
	(1) Actual (unaudited) total capital, tier 1 capital and tier 1 leverage ratios were calculated in accordance with currently applicable bank regulatory requirements. Tier 1 common ratio was 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 (tier 1 common capital), by (b) total risk-weighted assets, which were calculated in accordance with currently applicable bank regulatory requirements.
	(2) For purposes of the calculations in accordance with Basel III (see below), total capital, tier 1 capital and tier 1 leverage ratios and total risk-weighted assets were calculated based on State Street’s estimates, based upon published statements of the Basel Committee and the Federal Reserve, of the effects of the requirements under Basel III affecting capital. The tier 1 common ratio is calculated by dividing (a) tier 1 common capital (as described in footnote (1), but with tier 1 capital calculated in accordance with Basel III by (b) total risk-weighted assets, which are calculated in accordance with Basel III. State Street reports its financial ratios in accordance with the requirements of the Board of Governors of the Federal Reserve System, which has not yet adopted Basel III. There remains considerable uncertainty concerning the timing for adoption and implementation of Basel III by the Federal Reserve. When adopted, the Federal Reserve may implement Basel III with some or more modifications or adjustments. Therefore, State Street’s current understanding of Basel III, as reflected in the table above, may be different from the ultimate application of Basel III by the Federal Reserve to State Street.

(A)	Tier 1 capital used in the calculation of the tier 1 capital and tier 1 leverage ratios decreased by $858 million, as a result of applying estimated Basel III requirements to tier 1 capital of $12.318 billion as of December 31, 2010. Total capital used in the calculation of the total capital ratio decreased by $784 million, as a result of applying estimated Basel III requirements to total capital of $13.225 billion as of December 31, 2010.
(B)	Tier 1 common capital used in the calculation of the tier 1 common ratio was $10.155 billion, reflecting the adjustments to tier 1 capital described in (A) above. Tier 1 common capital used in the calculation is therefore calculated as adjusted tier 1 capital of $11.460 billion less non-common elements of capital, composed of trust preferred securities of $1.305 billion as of December 31, 2010, resulting in tier 1 common capital of $10.155 billion. At December 31, 2010, there was no qualifying perpetual preferred stock or qualifying minority interest in subsidiaries.
(C)	Total risk-weighted assets used in the calculation of the total capital, tier 1 capital and tier 1 common ratios increased by $47.495 billion as a result of applying estimated Basel III requirements to total risk-weighted assets of $60.203 billion as of December 31, 2010.
(D)	Consolidated adjusted quarterly average assets used in the calculation of the leverage ratio increased by $45.000 billion as a result of applying estimated Basel III requirements to the actual consolidated adjusted quarterly average assets as of December 31, 2010 of $150.896 billion.

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 As of December 31, 2010

2 Asset-backed securities (ABS) Mortgage-backed securities (MBS) Commercial mortgage-backed securities (CMBS) $35 billion $12 billion Corporate bonds  Municipals Treasuries  Agency debentures  Agency mortgages  Small Business Administration loans  OECD governments  FFELP Student Loans 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 FFELP=Federal Family Education Loan Program ASSETS: INVESTMENT PORTFOLIO (PERIOD END 12/31/10) $48 billion

3 Assets selected using rigorous credit process Diversified by asset class and geography 89.6% AAA / AA rated Constructed to perform well through periods of economic weaknessUnrealized after-tax available for sale (AFS) & held to maturity (HTM) mark to market (MTM) loss = $(0.504)B(1) INVESTMENT PORTFOLIO DETAIL (PERIOD END 12/31/10) 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 At 12/31/10: After-tax Unrealized MTM Gain/(Loss) includes after-tax unrealized loss on securities available for sale of $(270)M, after-tax unrealized gain on securities held to maturity of $197M and after-tax unrealized loss primarily related to securities transferred from available for sale to held to maturity of $(431)M. Certain securities previously categorized as Not Rated, are now included in the AAA category, based on Moody’s/S&P ratings. US$ in billions        AAA AA A BBB <BBB Not Rated(2) Total 12/31/10 $74.8 $10.6 $5.5 $2.3 $1.9 $0.2 $95.3  78.5% 11.1% 5.8% 2.4% 2.0% 0.2% 100.0% 12/31/09 $67.9 $11.3 $6.8 $3.5 $7.5 $0.3 $97.3  69.7% 11.6% 7.0% 3.6% 7.8% 0.3% 100.0% 12/31/08 $62.0 $8.8 $3.9 $2.9 $0.8 $0.4 $78.8  78.6% 11.1% 4.9% 3.7% 1.1% 0.6% 100.0% 12/31/07 $67.4 $4.9 $2.2 $0.8 - $0.4 $75.7  89.0% 6.5% 2.9% 1.1% - 0.5% 100.0%

4 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 experiencing one or more downgrades in respective quarter.  We report credit profiles based on the lower of the Moody’s or S & P ratings; based on this methodology approximately $0.4 billion of the $0.9 billion has been downgraded by another rating agency and reported in previous quarters, leaving $0.5 billion net new downgrades in the fourth quarter of 2010. At 12/31/10: After-tax Unrealized MTM Gain/(Loss) includes after-tax unrealized loss on securities available for sale of $(270)M, after-tax unrealized gain on securities held to maturity of $197M and after-tax unrealized loss primarily related to securities transferred from available for sale to held to maturity of $(431)M. All 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 ‘09 Q1 ‘10 Q2 ‘10 Q3 ‘10 Q4 ‘10 Q4 ‘10 Asset Value Size of portfolio $97.3B $95.6B $100.2B $99.6B $95.3B — Ratings 69.7% AAA 11.6% AA 69.5% AAA 11.7% AA 71.4% AAA 10.9% AA 71.3% AAA 11.1% AA 78.5% AAA 11.1% AA — Unrealized after-tax MTM gain/(loss) $(2,286)M $(1,435)M $(994)M $(281)M $(504)M(3) — Credit watch(1) 70 391 165 62 31 $0.6B Credit watch ex Munis(1) 68 391 164 62 30 $0.6B Downgrades(2) 112 189 239 120 39 $0.9B Downgrades ex Munis(2) 76 181 233 117 33 $0.9B Defaults(4) 6 9 4 13 3 $36M

5 Investment Portfolio HOLDINGS BY ASSET CLASS (PERIOD END 12/31/10) Portfolio amounts are expressed at Book Value; Book Value includes the amortized cost of the transferred securities at the time they were transferred. Certain “other” securities previously categorized as Not Rated, are now included in the AAA category, based on Moody’s/S&P ratings. At 12/31/10: After-tax Unrealized MTM Gain/(Loss) includes after-tax unrealized loss on securities available for sale of $(270)M, after-tax unrealized gain on securities held to maturity of $197M and after-tax unrealized loss primarily related to securities transferred from available for sale to held to maturity of $(431)M. Ratings (1) Book Value  ($B) Book Value (% Total) Unrealized After-tax  MTM Gain/(Loss) ($M)  Investment AAA AA A BBB <BBB Not Rated     # CUSIPS Government/Agency securities 100% — — — — — 10.4 10.9 43 461 Asset-backed securities 79% 10% 7% 2% 2% — 42.6 44.7 (629) 1,031 Mortgage-backed securities 95% 1% — 1% 3% — 26.4 27.7 52 1,598 Commercial mortgage-backed securities 79% 11% 7% 3% — — 4.2 4.4 8 161 Corporate bonds 4% 17% 48% 31% — — 3.6 3.8 76 216 Municipal bonds 12% 68% 14% 4% — 2% 3.7 3.9 44 5,986 Clipper tax-exempt bonds/other 40% 57% 1% — — 2% 4.4 4.6 (98) 428 TOTAL PORTFOLIO 79% 11% 6% 2% 2% 0% 95.3 100.0 (504)(2) 9,881

6 Investment Portfolio ASSET-BACKED SECURITIES HOLDINGS (PERIOD END 12/31/10) 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 Not Rated     # CUSIPS Student Loans 88% 8% 3% 1% — — 15.0 35.2 (337) 240 Credit Cards 97% — 2% 1% — — 8.1 19.0 15 128 Auto/Equipment 96% — 3% — 1% — 1.5 3.5 1 52 Foreign RMBS 80% 8% 11% 1% — — 12.8 30.1 (111) 282 CLOs 30% 57% 12% — 1% — 2.1 4.9 45 68 Sub-Prime 15% 26% 13% 8% 38% — 2.2 5.2 (207) 219 HELOC — 15% — — 85% — 0.1 0.2 (30) 11 Other 1% 22% 46% 28% 3% — 0.8 1.9 (5) 31 TOTAL ABS 79% 10% 7% 2% 2% — 42.6 100.0 (629) 1,031

7 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.Securities/municipals and corporate Issuers downgraded in respective quarter. Previously discounted or impaired.  Portfolio amounts are expressed at Book Value; Book Value includes the amortized cost of the transferred securities at the time they were transferred.  Q4 ’09 Q1 ’10 Q2 ’10 Q3 ’10 Q4 ’10 Q4 ‘10 Asset Value Size of portfolio $5.1B $4.8B $4.6B $4.5B $2.2B — Ratings 12% AAA 27% AA, 11% A 6% BBB, 44% <BBB 11% AAA 26% AA, 11% A 4% BBB, 48% <BBB 9% AAA 19% AA, 11% A 3% BBB, 58% <BBB 9% AAA 14% AA, 8% A 4% BBB, 65% <BBB 15% AAA 26% AA, 13% A 8% BBB, 38% <BBB  Credit enhancement 40.9% 41.2% 41.1% 41.0% 53.2% — Unrealized MTM After-tax Gain/(Loss) $(1,141)M $(987)M $(924)M $(811)M $(207)M — Credit watch(1) 1 205 72 11 1 $15M Downgrades(2) 17 43 109 66 1 $10M Defaults 0 0 2(3) 6(3) 0 $0M

8  Investment Portfolio  HCL = historic cumulative loss; Avg. CE = average credit enhancement; CRE= Commercial Real Estate; SFL = STT’s stressed future losses; Coverage = Avg. CE/SFL See Appendix for additional information.   STRESS COVERAGE: ASSET-BACKED SECURITIES PORTFOLIO (PERIOD END 12/31/10) Govt. student loans: $14.1B HCL: < 0.2% Avg. CE: >100% - 97% govt. guarantee + 7.5% CE SFL: 12% - Historic default rate before government guarantees with 0% recoveries With >100% Avg. CE, evaluated as no risk of loss Private student loans: $0.9B HCL: 6.30% - With insurance Avg. CE: 16.30% SFL: 13.4% - Assumes no insurance; industry/rating agency assumption Coverage: 1.2x Credit Cards: $8.1B HCL: 7.78% - Wgtd. avg. charge-offs Avg. CE: 30.06% SFL: 12.02% - Industry projected wgtd. avg. charge-offs Coverage: 2.50x Auto/Equipment: $1.5B HCL: 0.58% - Excluding wrapped deals Avg. CE: 16.18% - Excluding wrapped deals SFL: 1.66% - Using worst vintage in 10 years (2001) blended by portfolio weighting, excluding wrapped deals Coverage: 9.72x Foreign RMBS: $12.8B HCL: 0.20% Avg. CE: 11.61% SFL: 1.81% - Aggregate regional projection averaged by holdings Coverage: 6.41x CLO/CREs: $2.1B HCL: 1.30% - Current Gross Defaults Avg. CE: 31.11% SFL: 9.6% - Historical annual 4% default rate over 4 years with 60% loss severity Coverage: 3.24x Sub-prime: $2.2B HCL: 7.77% Avg. CE: 53.15% - AAA 59.88%, AA 63.99% SFL: 27.98% - Roll rate analysis average cumulative loss across all vintages Coverage: 2.39x – Gives benefit to bonds carried at a discount HELOC: $0.1B HCL: 0% - With insurance Avg. CE: 1.27 % overcollateralization plus monoline insurance SFL: If all monoline wrappers except FSA fail and defaults stay elevated in perpetuity, and we have 20% recoveries, on a present value basis pre-tax loss is = $0M

9  Investment Portfolio  MORTGAGE-BACKED SECURITIES HOLDINGS (PERIOD END 12/31/10)  Ratings Book Value  ($B) Book Value   (% Total) Unrealized After-tax  MTM Gain/(Loss) ($M)  Investment AAA AA A BBB <BBB Not Rated     # CUSIPS Agency MBS 100% — — — — — 23.8 77.8 162 1,369 Non-Agency MBS 49% 8% 4% 8% 31% — 2.6 8.5 (110) 229 CMBS 79% 11% 7% 3% — — 4.2 13.7 8 161 TOTAL MBS 93% 2% 1% 1% 3% — 30.6 100.0 60 1,759

10  Investment Portfolio  STRESS COVERAGE: MORTGAGE-BACKED SECURITIES PORTFOLIO (PERIOD END 12/31/10)  HCL = historic cumulative loss; Avg. CE = average credit enhancement; SFL = STT’s stressed future losses; Coverage = CE/SFL  See Appendix for additional information. Agency MBS: $23.8B 100% AAA-backed primarily by Fannie Mae, Freddie Mac & Ginnie Mae Securities No losses expected Non-Agency Prime MBS: $1.6B      HCL: 0.84% Avg. CE: 7.46% SFL: 5.12% - Roll rate analysis Coverage: 3.07x - Gives benefit to bonds carried at a discount Alt-A: $1.0B HCL: 3.04% Avg. CE: 17.09% SFL: 13.56% - Roll rate analysis Coverage: 3.05x - Gives benefit to bonds carried at a discount CMBS: $4.2B HCL: 0.929% Avg. CE: 24.96% SFL: 8.1% - Highest historic cumulative loss for any single CMBS cohort Coverage: 3.08x

11 Investment Portfolio APPENDIX

12  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

13  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 calculation 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% per annum 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 what we understand rating agencies use Spanish MBS: 3.5% Used a 2x multiple to the worst performing Spanish RMBS transaction’s cumulative default rate and a historically  conservative recovery rate Italian MBS: 3.0% 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: 1.5% Used an additional 2x stress to the worst performing Greek RMBS transaction’s cumulative gross default figure, Portuguese MBS: 5.0% Used a 2x multiple to the worst performing Portuguese RMBS transaction’s cumulative default rate and a    historically conservative recovery rate  CLOs:  Based on Moody’s average issuer-weighted default rate of 4% for B2-rated issuers during 1983-2009 period over assumed WAL of 4 years with 60% loss severity.  According to Moody’s, the highest loss severity rate on 1st lien loans in the 1990-2009 period was 46.6% in 1993.

14  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:  Calculated by applying the highest cumulative loss experienced by any cohort vintage (1986) over the time period 1972-2002 as reported in Commercial Mortgage Defaults: 30 Years of History by Howard Esaki and Masumi Goldman, as it appeared in the Winter 2005 issue of CMBS World magazine. Investment Portfolio - Appendix 

15  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.  For subprime, non-agency prime MBS, and Alt-A, coverage is calculated by dividing the break even loss value by SFL.  The break even loss is calculated by a third party provider.  It represents  the loss value a bond can withstand before experiencing a principal loss after giving benefit to all credit enhancement, both structural and excess spread, as well as any discount to the carrying value of the bond (eg. due to purchase discount or impairment).   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.