State Street Corporation · NYSE:STT
State Street — Goldman Sachs 2020 U.S. Financial Services Conference
17 slides from State Street's conference presentation, Dec 9, 2020
Slide 1: Goldman Sachs U.S. Financial Services Conference
December 9, 2020 Goldman Sachs U.S. Financial Services Conference Ronald P. O’Hanley Chairman & Chief Executive Officer
Slide 2: Preface and forward-looking statements
Preface and forward-looking statements This presentation contains forward-looking statements as defined by United States securities laws. These statements are not guarantees of future performance, are inherently uncertain, are based on assumptions that are difficult to predict and have a number of r
Slide 3: 3Q20 YTD highlights
3Q20 YTD highlights All comparisons are to corresponding prior year periods unless noted otherwise AUC/A Alpha wins AUM Business metrics 1 $36.6T 7 clients $3.1T +11% ~1/3 AUC/A wins +7% Financial Fee revenue Total expenses Earnings per share A performance (Ex-notable items, non-GAAP) +4% (2)% +19%
Slide 4: Revenue trends
Revenue trends +2% Servicing fees ($M) Total fee revenue ($M) +2% 3Q20 YTD Performance: +4% 3Q20 YTD Performance: -9% -5% $4,135 • Moderating pricing $7,128 $7,083 • Improvement in nearly all pressure $6,779 fee revenue lines $3,860 $3,775 • ~$1.3T of client assets • Higher servicing and onboarded Y
Slide 5: Strategically pivoting Investment Services to an enterprise outsource solutions model
Strategically pivoting Investment Services to an enterprise outsource solutions model Enterprise Outsource Solutions Provider Unique client value proposition State Street AlphaSM Enterprise outsourcing capabilities are underpinned by our integrated front-to-back Alpha platform solution Client covera
Slide 6: Alpha front-to-back platform driving revenue growth and client operational efficiencies
State Street Alpha Alpha front-to-back platform driving revenue growth and client operational efficiencies 1 Alpha, enabled by CRD, is expanding our capabilities 2 Creating a unique client value proposition • The Alpha platform connects middle and back • Targeted tech and ops cost reduction of offic
Slide 7: Enhancing our Institutional Services strategy to drive future growth
Institutional Services Enhancing our Institutional Services strategy to drive future growth Key Objectives: 2021 Planned ActionsA: • Improve client experience • Expand net promoter score program Client • Foster a One State Street solution • Increase accountability and performance coverage • Broaden
Slide 8: Improving productivity and driving operating efficiencies
Operating Model Improving productivity and driving operating efficiencies Expenses Operating model improvements A (Ex-notable items, non-GAAP, $B) Simplifying and standardizing across the franchise +1% -2% ex-CRD B -2% • Transform Infrastructure: establishing a global data center consolidation plan,
Slide 9: Summary
Summary Navigating the operating environment and planning for future growth • Demonstrated progress in a challenging operating environment 3Q20 YTD – Improved year-to-date business and performance metrics Review (Ex-notable items, – Fee revenue growth, positive operating leverage and strong EPS grow
Slide 10: Fireside Chat & Q&A
Fireside Chat & Q&A Ronald P. O’Hanley Eric Aboaf Alex Blostein 10
Slide 11: Appendix
Driving State Street revenue through Alpha: 12 Illustrative State Street Alpha case studies Reconciliation of notable items 13 Appendix Endnotes 14 Definitions 15 Non-GAAP measures 16 Forward-looking statements 17 11
Slide 12: Driving State Street revenue through Alpha
Driving State Street revenue through Alpha Illustrative case studies: Deepening client relationships to drive core revenue growthA Global Asset Manager #1 Global Asset Manager #2 Global Asset Owner Official Institution Alpha Global transformation Unified global model Consolidated platform Front-to-b
Slide 13: Reconciliation of notable items
Reconciliation of notable items FY % Change Year-to-Date % Change FY2019 vs. YTD3Q20 vs. (Dollars in millions) 2018 2019 FY2018 3Q19 3Q20 YTD3Q19 Total fee revenue, GAAP-basis 9,454 9,147 (3.2)% 6,779 7,083 4.5 % Legal and related 8 Total fee revenue, excluding notable items 9,462 9,147 (3.3)% 6,779
Slide 14: Endnotes
Endnotes 1. AUC/A and AUM comparisons are period-end 3Q20 vs. period-end 3Q19. Alpha wins were ~1/3 of total 3Q20 Investment Servicing AUC/A wins of $249B. New asset servicing mandates, including announced front-to- back investment servicing clients, may be subject to completion of definitive agreem
Slide 15: Definitions
Definitions 1. 2018 A: Actual results for the full year 2018 2. 2019 A: Actual results for the full year 2019 3. 2020 E: Estimated results for the full year 2020 4. AUC/A: Assets under custody and/or administration 5. AUM: Assets under management 6. Bps: Basis points, with one basis point representi
Slide 16: Non-GAAP measures
Non-GAAP measures In addition to presenting State Street's financial results in conformity with U.S. generally accepted accounting principles, or GAAP, management also presents certain financial information on a basis that excludes or adjusts one or more items from GAAP. This latter basis is a non-G
Slide 17: Forward-looking statements
Forward-looking statements This presentation (and the conference call referenced herein) contains forward-looking statements within the meaning of United States securities laws, including statements about our goals and expectations regarding our business, financial and capital condition, results of
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