State Street Corporation · NYSE:STT
State Street — Shareholder Meeting (May 2013)
33 slides from State Street's shareholder meeting presentation, May 15, 2013
Slide 1: Positioned for Growth: Annual Meeting of Shareholders
Jay Hooley Chairman, President and Chief Executive Officer Annual Meeting of Shareholders May 15, 2013 Positioned for Growth
Slide 2: Forward-Looking Statements
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 and capital condition (including without limitation, our capital ratios under Ba
Slide 3: Agenda
3 Positioned for Growth Agenda 2012 Performance Business Strategy 2013 Progress Corporate Citizenship Summary
Slide 4: 2012 Performance
4 2012 Performance
Slide 5: We Have a Strong Foundation
5 We Have a Strong Foundation Strong Global Footprint Long-Term Shareholder Value Among Highest Capital Ratios in Industry Focused Strategy Fueled by Macro Trends Strong Global Footprint No. 1 or No. 2 Position in High-Growth Markets
Slide 6: Our Actions Have Driven Positive Results
6 Our Actions Have Driven Positive Results 1 Results presented on an operating basis, a non-GAAP presentation. See Appendix for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information. The Appendix is available on State Street’s website (w
Slide 7: Solid Performance in 2012: Summary of Operating-Basis Results
7 Solid Performance in 2012: Summary of 2012 Operating-Basis (Non-GAAP) Financial Results1 1 Results presented on an operating basis, a non-GAAP presentation. See Appendix for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information. The Ap
Slide 8: In 2012 We Performed Well
8 In 2012 We Performed Well1 … 1 Results presented on an operating basis, a non-GAAP presentation. See Appendix for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information. The Appendix is available on State Street’s website (www.statestre
Slide 9: … and Outperformed Our Primary Peers
9 … and Outperformed Our Primary Peers1 1 As described in the Appendix: (i) data for each of State Street Corporation (STT), The Bank of New York Mellon Corporation (BK) and Northern Trust Corporation (NTRS) is derived from the relevant company’s public filings, earnings announcements or related mat
Slide 10: Business Strategy
10 Business Strategy
Slide 11: Macro Trends Fuel Our Confidence for Continued Growth
11 Macro Trends Fuel Our Confidence for Continued Growth Globalization Retirement Savings Regulation and Complexity LONG-TERM TRENDS Drive New Revenue Optimize Capital Leverage Power of Core Franchise STRATEGY PRIORITIES • Extending our geographic reach • Pursuing high-growth markets • Expanding our
Slide 12: Extending Our Geographic Reach
12 Extending Our Geographic Reach Our Powerful Global Franchise Sets Us Apart in Meeting the Needs of the Largest Global Asset Managers Why Clients Choose Us Broad Set of Global Servicing Solutions Uniform Global Platform Leader in Middle Office Solutions-Based Asset Management Leader in Technology
Slide 13: Deepening Client Relationships
13 Deepening Client Relationships We Generate Strong Organic Growth as Our Key Clients Grow and Diversify 1 As of December 31, 2012. All data is period end. • ~80 of our top 100 clients have had a relationship with State Street for at least 10 years • With solutions in nearly every domicile, State S
Slide 14: Pursuing High Growth Markets: Alternative Investment Solutions
14 Pursuing High Growth Markets Our Alternative Investment Solutions Business Has Grown at More Than Twice the Rate of the Market1 Source: HF Market - Hedge Fund Research, January 2013; PE Market - Preqin, October 2012; RE Market - Towers Watson, July 2012; RE Market (2005,2006) - PI Online Acquisit
Slide 15: We Lead the Industry in Alternative Asset Servicing
15 $1,045B2 $670B $563B $467B $411B $355B $246B $165B $0 $200 $400 $600 $800 $1,000 $1,200 STT CITCO BNY JPM C SS&C GlobeOp NTRS HSBC We Lead the Industry in Alternative Asset Servicing Globally Asset Class Coverage Across Europe, North America and Asia-Pacific Region 1 HFM Week AUA Survey Assets as
Slide 16: Expanding Our Solutions: State Street Global Advisors
16 Broad Capabilities Expanding Our Solutions State Street Global Advisors is Well Positioned for Growth in 2013 and Beyond 1 As of December 31, 2012. 2 Operating leverage is defined as the rate of growth of total investment management revenue less the rate of growth of total investment management e
Slide 17: Expanding Our Solutions: Leading Sponsor of ETFs
17 Expanding Our Solutions Leading Sponsor of ETFs 1 As of 3/31/13. 2 Source: Deutsche Bank Markets Research, January 11, 2013. ETFs, $354B, 16%1 Powerful Brand Record ETF AUM (as of 3.31.13) • $354 B New Product Introductions • Since 2011, 64 products launched globally – Europe: 32 – US: 26 – Austr
Slide 18: Driving Operating Efficiencies
18 Driving Operating Efficiencies Business Operations and IT Transformation Program Foundation in Place to Reap Benefits 2012 Accomplishments Automation Benefits • Created new global Centers of Excellence • Achieved 20% targeted automation benefits Workforce Optimization & Simplified Technology • Es
Slide 19: 2013 Progress
19 2013 Progress
Slide 20: Summary of First-Quarter 2013 Operating-Basis Results
20 Summary of First-Quarter 2013 Operating-Basis (Non-GAAP) Financial Results1 1 Results presented on an operating basis, a non-GAAP presentation. See Appendix for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis financial information. The Appendix is av
Slide 21: Strong Capital Position: Federal Reserve CCAR Stress Test Results
21 Strong Capital Position: Results of Federal Reserve’s 2013 CCAR Stress Test* Projected Minimum Tier 1 Common Capital Ratio Under Hypothetical Supervisory Stress Scenario as Conducted by the Federal Reserve and Including Company Proposed Capital Actions 13.2% 9.7% 8.6% 8.2% 7.8% 7.5% 7.0% 6.9% 6.8
Slide 22: Return of Capital to Shareholders Remains a Priority
22 Return of Capital to Shareholders Remains a Priority Dividend Payout • Increased quarterly common stock dividend by $0.02 to $0.26 per share Common Stock Purchase Program • Board approved a common-stock purchase program of up to $2.1B through March 31, 2014
Slide 23: Our Total Return Significantly Outperformed Primary Peers
23 Our Total Return Significantly Outperformed Primary Peers and Broader Financial Index Since the Last Annual Meeting … Source: FactSet Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar -30% -20% -10% 0% 10% 20% 30% 40% 1‐Year Total Return: 3/31/2012 ‐ 3/31/2013 State Street Corporation S & P Financi
Slide 24: Corporate Citizenship
24 Corporate Citizenship
Slide 25: Investing in Our Communities
25 Investing in Our Communities 2012 Highlights • $21.3 million in Foundation grants to organizations globally • Allocated nearly $2 million in MA for Academic Achievement Programs with focus on nonprofits aligned with the Boston Public Schools to close the achievement gap (Teach for America) • Fund
Slide 26: Corporate Responsibility Leadership
26 Corporate Responsibility Leadership Annual CR Report is the Only Independently Verified Report Among US-based Financial Services Firms Organization 2012 Rankings Dow Jones Sustainability World and North America Indices Listed on both indices for seventh consecutive year 2012 Ireland Green Awards
Slide 27: Summary
27 Summary
Slide 28: Moving Forward
28 Moving Forward Macro Trends Fueling Proven Strategy Priorities Driving Future Growth Setting the Bar High on Corporate Responsibility Committed to Long-Term Shareholder Value
Slide 29: Appendix
Appendix The foregoing presentation includes financial information presented on a GAAP basis as well as on a non-GAAP, or “operating basis.” Management measures and compares certain financial information on an operating basis, as it believes that this presentation supports meaningful comparisons fro
Slide 30: 2012 YTD vs. 2011 YTD Reconciliation
2012 YTD vs. (Dollars in millions, except per share amounts) 2011 YTD Total Revenue: Total revenue, GAAP basis $ 9,649 $ 9,594 0.57 % Tax-equivalent adjustment associated with tax-exempt investment securities 124 128 Tax-equivalent adjustment associated with tax-advantaged investments 126 62 Loss fr
Slide 31: 2012 YTD vs. 2011 YTD Diluted EPS and ROE Reconciliation
2012 YTD vs. 2011 YTD Diluted Earnings per Common Share: Diluted earnings per common share, GAAP basis $ 4.20 $ 3.79 10.8 % Loss from sale of Greek investment securities .06 - Provisions for litigation exposure and other costs .12 - Special one-time additional charitable contribution .04 - Acquisiti
Slide 32: Q1 2013 vs. Q1 2012 Reconciliation
Q1 2013 vs. (Dollars in millions, except per share amounts) Q1 2012 Total Revenue: Total revenue, GAAP basis $ 2,435 $ 2,421 0.6 % Tax-equivalent adjustment associated with tax-exempt investment securities 32 31 Tax-equivalent adjustment associated with tax-advantaged investments 34 18 Discount accr
Slide 33: Peer Comparison: Operating-Basis Pre-tax Operating Margin
LIMITED ACCESS 33 Peer Comparison: Operating-Basis (Non-GAAP) Pre-tax Operating Margin Page 9 of this presentation contains a comparison of pre-tax operating margin for State Street Corporation (STT), The Bank of New York Mellon Corporation (BK) and Northern Trust Corporation (NTRS). The data in the