Slide 1: State Street Corporation Third-Quarter 2012 Financial Highlights
LIMITED ACCESS State Street Corporation Third-Quarter 2012 Financial Highlights October 16, 2012 Exhibit 99.3
Slide 2: Forward-Looking Statements
LIMITED ACCESS Forward-Looking Statements This presentation contains forward-looking statements as defined by United States securities laws, including statements relating to our goals and expectations regarding our business, financial condition, (including without limitation, Basel III capital ratio
Slide 3: Third-Quarter 2012 Financial Highlights
LIMITED ACCESS • GAAP EPS of $1.36 includes a net pre-tax benefit of $277 million (net after-tax benefit of $166 million, or $0.35 per share) – The net pre-tax benefit of $277 million is composed of: – a $362 million benefit related to claims associated with the 2008 Lehman Brothers bankruptcy; part
Slide 4: Third-Quarter 2012 Financial Highlights (Continued)
LIMITED ACCESS Third-Quarter 2012 Financial Highlights(1) (Continued) • Market-driven revenue continues to be pressured from the Eurozone crisis, a persistent low interest-rate environment and weak trading activity – Foreign-exchange trading weak due to low volatility and changes in mix – Operating-
Slide 5: Summary of GAAP Financial Results
LIMITED ACCESS Summary of GAAP Financial Results % change $ in millions, except per share data Q3 ’12 Q2 ’12 Q3 ’11 Revenue $2,356 (2.8)% (2.9)% Expenses $1,415 (20.2)% (21.3)% EPS(1) $1.36 38.8% 23.6% Q3 ’12 Q2 ’12 Q3 ‘11 ROE 13.3% 10.0% 11.2% Average diluted shares outstanding 480.0 488.5 494.8 (1
Slide 6: Summary of Operating-Basis (Non-GAAP) Financial Results
LIMITED ACCESS Summary of Operating-Basis (Non-GAAP) Financial Results(1) (1) Results presented on an operating basis, a non-GAAP presentation. Refer to the addendum included with this presentation for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis fin
Slide 7: Operating-Basis (Non-GAAP) Revenue
LIMITED ACCESS Operating-Basis (Non-GAAP) Revenue(1) (1) Results presented on an operating basis, a non-GAAP presentation. Refer to the addendum included with this presentation for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information. K
Slide 8: Operating-Basis (Non-GAAP) Expenses
LIMITED ACCESS Operating-Basis (Non-GAAP) Expenses(1) % change $ in millions Q3’12 Q2’12 Q3’11 Compensation and employee benefits $916 (2.8)% (5.1)% Information systems and communications 211 1.4 10.5 Transaction processing services 170 (1.2) (5.6) Occupancy 115 - (3.4) Other 252 (13.4) (2.3) Total
Slide 9: Balance Sheet Strategy and Investment Portfolio Highlights
LIMITED ACCESS Balance Sheet Strategy and Investment Portfolio Highlights Balance Sheet Strategy Guidelines Invest in high quality assets • Invest through the cycle • Solid credit profile: ~90% AAA / AA rated • Diversify by asset class and geography Prudently manage balance sheet within risk appetit
Slide 10: Capital
LIMITED ACCESS Capital (1) All capital ratios in this presentation refer to State Street Corporation and not State Street Bank and Trust Company. Total risk-based capital, or total capital, tier 1 risk-based capital, or tier 1 capital, and tier 1 leverage ratios are calculated in accordance with cur
Slide 11: Addendum
LIMITED ACCESS 11 ADDENDUM A. Investment Portfolio B. Non-GAAP Measures and Capital Ratios 11
Slide 12: A. Investment Portfolio
LIMITED ACCESS 12 A. Investment Portfolio As of September 30, 2012 12
Slide 13: Investment Portfolio Assets as of September 30, 2012
LIMITED ACCESS Portfolio amounts are expressed at Book Value; Book Value includes the amortized cost of transferred securities at the time they were transferred. OECD=Organization for Economic Cooperation and Development FFELP=Federal Family Education Loan Program Investment Portfolio Assets: Invest
Slide 14: Investment portfolio credit quality and diversification
LIMITED ACCESS • Assets selected using rigorous credit process • Diversified by asset class and geography • 88.1% AAA / AA rated • Constructed to perform well through periods of economic weakness • Unrealized after-tax available for sale (AFS) and held to maturity (HTM) mark to market (MTM) gain = $
Slide 15: Investment Portfolio Ratings and Unrealized Gain/(Loss)
LIMITED ACCESS Ratings(1) Book Value ($B) Book Value (% Total) Unrealized After-tax MTM Gain / (Loss) ($M) Investment UST / AGY AAA AA A BBB <BBB Not Rated Fixed Rate / Floating Rate Government / Agency Securities 44% 32% 24% — — — — 5.4 4.7 12 84% / 16% Asset-backed Securities — 63% 28% 6% 1% 2% —
Slide 16: Asset-Backed Securities Holdings
LIMITED ACCESS Ratings(1) Book Value ($B) Book Value (% Total) Unrealized After-tax MTM Gain / (Loss) ($M) Investment UST / AGY AAA AA A BBB <BBB Not Rated Student Loans — 27% 69% 3% — 1% — 17.0 32.0 (316) Credit Cards — 98% — 1% 1% — — 11.7 22.0 46 Auto / Equipment — 99% — 1% — — — 4.3 8.1 10 Forei
Slide 17: Mortgage-backed Securities Holdings as of September 30, 2012
LIMITED ACCESS Ratings(1) Book Value ($B) Book Value (% Total) Unrealized After-tax MTM Gain / (Loss) ($M) Investment UST / AGY AAA AA A BBB <BBB Not Rated Agency MBS 100% — — — — — — 31.4 80.3 414 Non-Agency MBS — 27% 4% 27% 8% 34% — 2.5 6.4 6 CMBS 2% 75% 9% 11% 2% 1% — 5.2 13.3 95 TOTAL MBS 81% 12
Slide 18: Non-US Investments by Country
LIMITED ACCESS September 30, 2012 Book Book Value ($ billion) Value Average Gov't/ ABS ABS Corporate Covered ($B) Rating Agency FRMBS All Other Bonds Bonds Other United Kingdom 11.0 AAA - 8.2 2.3 0.3 0.2 - Australia 5.9 AA - 2.7 1.3 0.2 0.3 1.4 Netherlands 3.0 AAA - 2.8 0.1 0.1 - - Canada 2.0 AAA 1.
Slide 19: B. Non-GAAP Measures and Capital Ratios
LIMITED ACCESS 19 B. Non-GAAP Measures and Capital Ratios Refer to the addendum linked to this presentation for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information. To access the addendum Click Here. 19