State Street Corporation · NYSE:STT
State Street — Barclays Global Financial Services Conference 2018
17 slides from State Street's conference presentation, Sep 13, 2018
Slide 1: State Street at Barclays Financial Services Conference
State Street at Barclays Financial Services Conference Ron O’Hanley President and Chief Operating Officer Thursday, September 13, 2018
Slide 2: Preface and forward-looking statements
Preface and forward-looking statements This presentation (and the discussion accompanying it) 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 diffic
Slide 3: Executive Summary
Executive Summary Strong broad-based franchise within one global enterprise Delivering towards our 2018 financial objectives with strong first-half 2018 results compared to the first half of 2017 reflecting continued strength across our businesses Growth in fee revenue driven by increased servicing
Slide 4: 1H 2018 Financial Highlights
1H 2018 Financial Highlights All $M unless noted otherwise B Fee Revenue Net Interest Income Expenses +7% +20% +7% A A 4,736 1,302 4,415 4,433 4,472 1,219 4,117 4,152 1,085 1H17 2H17 1H18 1H17 2H17 1H18 1H17 2H17 1H18 C Pre-Tax Operating Margin Fee & Total Op Leverage Diluted EPS Total Op Leverage (
Slide 5: State Street Today
State Street Today Investment Servicing Investment Management Asset Markets Information Asset Servicing & Research & Data Analytics Management • Providing customized • Delivering investment • Offering investment data • Providing access to asset servicing solutions research, foreign aggregation and i
Slide 6: Organic and inorganic growth supporting business expansion
Organic and inorganic growth supporting business expansion Driven by technology transformation 2010 – Beyond Charles River Development3 2000s (Planned 4Q18)* GE Asset Mgmt. (2016)* • Enhanced electronic trading venues providing increased 90s liquidity & market access State Street Global Currenex (20
Slide 7: Investment services client segment revenue opportunities
Investment services client segment revenue opportunities Top four sub-segments represent approximately 2/3rds of industry asset pools A For illustrative purposes only High Global Giants 14 1 Global Asset Managers 2 Large, Sophisticated Asset Owners Emerging Institutions 3 Global Insurance firms 13 L
Slide 8: Aligning our Global Services business to client needs
Aligning our Global Services business to client needs Strategic goal to move to a seamless asset servicing platform Global Client Services & Relations • Strengthen and deepen client North America relationships NA Asset • Provide simplified single route to (NA) Asset Owners market Managers • Enhance
Slide 9: Front-to-back investment servicing platform
Front-to-back investment servicing platform An attractive value proposition Market Projected Enabling Front- Key Activities SizeA Growth Rate11 to-Back Strategy ● Portfolio Modeling & Construction ● Investment Risk & Compliance Front ● Integrating Front-to-Back Platform Office 12 Data Management ~$6
Slide 10: State Street at Barclays Financial Services Conference Questions
State Street at Barclays Financial Services Conference Questions Ron O’Hanley, President and Chief Operating Officer and Eric W. Aboaf, Chief Financial Officer Answers Thursday, September 13, 2018 10
Slide 11: Appendix
Appendix Endnotes 12 Forward-looking statements 13 Non-GAAP measures 14 Reconciliations of non-GAAP 15 – 16 financial information Definitions 17 11
Slide 12: Slide endnotes
Slide endnotes 1 Period end as of June 30, 2018. ~$34T of AUCA includes most of the Middle Office AUA. 2 Source: State Street and McKinsey Global Institute, Global Capital Markets, December 31, 2016. This represents State Street’s AUCA ($29T) as a proportion of total global financial assets ($270T).
Slide 13: Forward-looking statements
Forward-looking statements This presentation (and the discussion accompanying it) 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 operati
Slide 14: 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 non-GAAP basis. In general, our non-GAAP financial results adjust selected GAAP-basis fi
Slide 15: Reconciliations of non-GAAP financial information
Reconciliations of non-GAAP financial information 1H18 vs (Dollars in millions, except per share amounts) 1Q17 2Q17 1H17 3Q17 4Q17 2H17 1Q18 2Q18 1H18 1H17 Total fee revenue $ 2,198 $ 2,235 $ 4,433 $ 2,242 $ 2,230 $ 4,472 $ 2,378 $ 2,358 $ 4,736 7% Net interest income 510 575 1,085 603 616 1,219 643
Slide 16: Reconciliations of non-GAAP financial information
Reconciliations of non-GAAP financial information (Dollars in millions) 1Q16 2Q16 1H16 1Q17 2Q17 1H17 1H17 vs 1H16 Operating Leverage, GAAP-Basis: Total revenue, GAAP-basis $ 2,484 $ 2,573 $ 5,057 $ 2,668 $ 2,810 $ 5,478 8.3% Total expenses, GAAP-basis 2,050 1,860 3,910 2,086 2,031 4,117 5.3% Operat
Slide 17: Definitions
Definitions AUA Assets under administration AUCA Assets under custody and/or administration AUM Assets under management Bps Basis points Diluted earnings per share (EPS) Net income available to common shareholders divided by diluted average common shares outstanding ETF Exchange-traded fund Fee oper
State Street — Barclays Global Financial Services Conference 2018 on 6ix