Slide 1: State Street Corporation Second Quarter 2013 Financial Highlights
LIMITED ACCESS State Street Corporation Second Quarter 2013 Financial Highlights July 19, 2013 Exhibit 99.3
Slide 2: Forward-Looking Statements
2 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, results of operations, investment portfolio performance and strateg
Slide 3: Second-Quarter 2013 Financial Highlights
3 • GAAP-basis EPS of $1.24 up 27% from $0.98 in both Q1 ’13 and Q2 ’12 • GAAP-basis revenue increased 5% to $2.56 billion from $2.44 billion in Q1 ’13; up from $2.42 billion in Q2 ’12 • Operating-basis(1) EPS of $1.24 increased 29% from $0.96 in Q1 ’13; up 23% from $1.01 in Q2 ’12 • Total operating
Slide 4: Second-Quarter 2013 Financial Highlights (Continued)
4 Second-Quarter 2013 Financial Highlights(1) (Continued) • Market-driven revenue – Foreign-exchange trading revenue increased 17% to $171 million from Q1 ’13 due to higher volumes and volatilities – Securities finance revenue increased 68% to $131 million from Q1 ’13 due to slightly higher spreads
Slide 5: Second-Quarter 2013 Financial Highlights (Continued)
5 Second-Quarter 2013 Financial Highlights (Continued) • Strong capital position – Return of capital to shareholders through common stock purchases and dividends – Purchased approximately 8.5 million shares of our common stock in Q2 ’13, at an average price of $65.73 per share for a total cost of ap
Slide 6: Summary of Second-Quarter 2013 GAAP-Basis Financial Results
6 Summary of Second-Quarter 2013 GAAP-Basis Financial Results $ in millions, except per share data Q2 '13 Q1 '13 Q2 '12 vs Q1 '13 vs Q2 '12 Revenue 2,560$ 2,435$ 2,423$ 5.1% 5.7% Expenses 1,798$ 1,826$ 1,772$ (1.5)% 1.5% Earnings per share (EPS) 1.24$ 0.98$ 0.98$ 26.5% 26.5% Return on average common
Slide 7: Summary of Second-Quarter 2013 Operating-Basis (Non-GAAP) Financial Results
7 Summary of Second-Quarter 2013 Operating-Basis (Non-GAAP) Financial Results(1) (1) Results presented on an operating basis, a non-GAAP presentation. Refer to the addendum linked to this presentation for explanations of our non-GAAP financial measures and for reconciliations of our operating-basis
Slide 8: Operating-Basis (Non-GAAP) Revenue
8 Operating-Basis (Non-GAAP) Revenue(1) (1) Results presented on an operating basis, a non-GAAP presentation. 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. Key Drivers • Sequ
Slide 9: Operating-Basis (Non-GAAP) Expenses
9 Operating-Basis (Non-GAAP) Expenses(1) Key Drivers • Compensation and employee benefits expenses decreased from Q1 ’13 due primarily to the effect of the Q1 ’13 equity incentive compensation expense for retirement-eligible employees and payroll taxes; decreased from Q2 ’12 primarily due to savings
Slide 10: Balance Sheet Strategy and Investment Portfolio Highlights
10 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 appetite • Target p
Slide 11: Capital: Returning Capital to Shareholders is a Priority
11 Capital Footnotes (1) and (2) provided on page 12. Second-Quarter 2013 Highlights • Maintained strong capital position • In Q2 ’13, purchased approximately 8.5 million common shares at an average price of $65.73 per share and a total cost of approximately $560 million • $1.5 billion remaining ava
Slide 12: Capital footnotes
12 (1) Unless otherwise specified, all capital ratios referenced in the table on page 11 and elsewhere in this presentation refer to State Street Corporation and not State Street Bank and Trust Company. Refer to the addendum linked to this presentation for a further description of these ratios, and
Slide 13: Appendix
13 APPENDIX A. Investment Portfolio B. Non-GAAP Measures and Capital Ratios Pages 14-20 21
Slide 14: A. Investment Portfolio
B STATE STREET. A. Investment Portfolio
Slide 15: Investment Portfolio as of June 30, 2013
15 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 Government / Agency Structured Securities Unsec
Slide 16: Investment Portfolio highlights
16 • Assets selected using rigorous credit process • Diversified by asset class and geography • 88.2% rated AAA / AA • Constructed to perform well through periods of economic weakness • Unrealized after-tax available for sale (AFS) gain and held to maturity (HTM) mark-to-market (MTM) loss net to $(1
Slide 17: Investment Portfolio by ratings and asset class
17 Ratings(1) Book Value ($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 62% 18% 20% — — — — $9.2 7.9% $(164) 92% / 8% Asset-backed securities — 67% 26% 3% 1% 3% — 53.2 45.9
Slide 18: Asset-backed securities holdings
18 Ratings(1) Book Value ($B) Book Value (% Total) Unrealized After-tax MTM Gain / (Loss) ($M) Investment UST / AGY AAA AA A BBB <BBB Not Rated Student Loans — 31% 66% 2% — 1% — $16.8 31.6% $(202) Credit Cards — 99% — — 1% — — 10.9 20.5 (6) Auto/Equipment — 98% — 1% 1% — — 4.7 8.8 8 Non-US RMBS — 81
Slide 19: Mortgage-backed Securities Holdings as of June 30, 2013
19 Ratings(1) Book Value ($B) Book Value (% Total) Unrealized After-tax MTM Gain / (Loss) ($M) Investment UST / AGY AAA AA A BBB <BBB Not Rated Agency MBS 100% — — — — — — $26.4 76.3% $31 Non-Agency MBS — 26% 9% 19% 12% 34% — 2.1 6.1 (2) CMBS 2% 79% 9% 8% 1% 1% — 6.1 17.6 (7) TOTAL MBS 77% 15% 2% 3%
Slide 20: Non-U.S. Investment Summary as of June 30, 2013
20 Gov't/Agency 11.9% ABS: FRMBS 49.1% ABS: All Other 23.2% Corp 6.0% Cov'd 6.3% Other 3.5% AAA 76.8% AA 11.0% A 6.1% BBB 3.0% BB 2.4% <BB 0.7% NR 0.0% Non-U.S. Investments: Ratings Non-U.S. Investments: Asset Class (1) Sovereign debt is reflected in the government agency column. (2) Country of coll
Slide 21: B. Non-GAAP Measures and Capital Ratios
21 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 go to www.statestreet.com/stockholder and click on “Filings &