Slide 1: Third-Quarter 2013 Financial Highlights
LIMITED ACCESS State Street Corporation Third-Quarter 2013 Financial Highlights October 22, 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 and capital condition, results of operations, investment portfolio performance
Slide 3: Third-Quarter 2013 Financial Summary
3 • GAAP-basis earnings per share, or EPS, of $1.17 decreased 5.6% from $1.24 in Q2 ’13 and decreased 14.0% from $1.36 in Q3 ’12 • Total GAAP-basis revenue decreased 5.3% to $2.43 billion from $2.56 billion in Q2 ’13 and was up 2.9% from $2.36 billion in Q3 ’12 • Operating-basis(1) EPS of $1.19 decr
Slide 4: Year-to-Date and Third-Quarter 2013 Financial Highlights
4 Year-to-Date and Third-Quarter 2013 Financial Highlights(1) • Key operating-basis (non-GAAP)(1) financial metrics – EPS of $3.38 for the nine months ended September 30, 2013, a 19.4% increase compared to the same period in 2012 – EPS of $1.19 for Q3 ’13, a 4.0% decrease sequentially and an increas
Slide 5: Third-Quarter 2013 Financial Highlights (Continued)
5 Third-Quarter 2013 Financial Highlights(1) (Continued) • Operating-basis (non-GAAP)(1) net interest revenue (NIR) and net interest margin (NIM) – Operating-basis NIR(1) and NIM(1) were pressured by the low interest-rate environment as expected – NIR decreased 5.0% to $553 million from Q2 ’13 due t
Slide 6: Summary of Third-Quarter 2013 GAAP-Basis Financial Results
6 Summary of Third-Quarter 2013 GAAP-Basis Financial Results $ in millions, except per share data Q3 '13 Q2 '13 Q3 '12 vs Q2 '13 vs Q3 '12 Revenue 2,425$ 2,560$ 2,356$ (5.3)% 2.9% Expenses 1,722 1,798 1,415 (4.2) 21.7 Earnings per share (EPS) 1.17 1.24 1.36 (5.6) (14.0) Return on average common equi
Slide 7: Summary of Third-Quarter 2013 Operating-Basis (Non-GAAP) Financial Results
7 Summary of Third-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 f
Slide 8: Summary of Nine Months Ended September 30, 2013 GAAP-Basis Financial Results
8 Summary of Nine Months Ended September 30, 2013 GAAP-Basis Financial Results $ in millions, except per share data September 30, 2013 September 30, 2012 % change Revenue 7,420$ 7,200$ 3.1% Expenses 5,346 5,022 6.5 EPS 3.40 3.19 6.6 ROE 10.4% 10.7% Pre-tax operating margin 28.0 30.3 Average diluted
Slide 9: Summary of Nine Months 2013 Operating-Basis (Non-GAAP) Financial Results
9 Summary of Nine Months Ended September 30, 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
Slide 10: GAAP-Basis Revenue
10 GAAP-Basis Revenue $ in millions Q3 '13 Q2 '13 Q3 '12 Servicing fees 1,211$ 0.8% 10.1% Management fees 276 (0.4) 10.0 Trading services revenue 256 (13.5) 10.3 Securities finance revenue 74 (43.5) (18.7) Processing fees and other revenue 66 - 46.7 Net interest revenue 546 (8.4) (11.8) Gains (losse
Slide 11: GAAP-Basis Expenses
11 GAAP-Basis Expenses NM – not meaningful $ in millions Q3 '13 Q2 '13 Q3 '12 Compensation and employee benefits 903$ (1.5)% (1.4)% Information systems and communications 235 - 11.4 Transaction processing services 185 (0.5) 8.8 Occupancy 113 (0.9) (1.7) Claims resolution - - NM Acquisition and restr
Slide 12: Operating-Basis (Non-GAAP) Revenue
12 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. (2) Estimates are
Slide 13: Operating-Basis (Non-GAAP) Expenses
13 Operating-Basis (Non-GAAP) Expenses(1) Key Drivers • Compensation and employee benefits expenses decreased from Q3 ’12 primarily due to savings associated with the execution of the Business Operations and Information Technology Transformation program and lower benefit costs, partially offset by a
Slide 14: Balance Sheet Highlights Third Quarter 2013
14 Balance Sheet Highlights Third Quarter 2013(1) (2) Investment Portfolio • Size: $117 billion, unchanged from end of Q2 ‘13 • Credit profile: approximately 88% AAA / AA • Fixed-rate/Floating-rate mix: 44% / 56% • Duration: 1.9 years • Unrealized after-tax mark-to-market (MTM) loss: $79 million • O
Slide 15: Capital
15 Capital Footnotes (1), (2) and (3) provided on page 16. Third-Quarter 2013 Highlights • Maintained a strong capital position • In Q3 ’13, purchased approximately 8.2 million common shares at an average price of $68.57 per share and a total cost of approximately $560 million • $1 billion remaining
Slide 16: Capital Footnotes
16 (1) Unless otherwise specified, all capital ratios referenced above and elsewhere in this presentation refer to State Street and not State Street Bank and Trust Company, or State Street Bank. Refer to the addendum linked to this presentation for a further description of these ratios, and for reco
Slide 17: Appendix
17 APPENDIX A. Investment Portfolio B. Non-GAAP Measures and Capital Ratios Pages 18-24 25
Slide 18: A. Investment Portfolio
B STATE STREET. A. Investment Portfolio
Slide 19: Investment Portfolio as of September 30, 2013
19 Portfolio amounts are expressed at book value; book value includes the amortized cost of transferred securities at the time they were transferred. OECD=Organization for Economic Cooperation and Development FFELP=Federal Family Education Loan Program Government / Agency Structured Securities Unsec
Slide 20: Investment Portfolio Credit Quality
20 • Assets selected using rigorous credit process • Diversified by asset class and geography • 88.2% rated AAA / AA • Constructed to perform well through periods of economic weakness • Unrealized after-tax available for sale (AFS) gain, and held to maturity (HTM) mark-to-market (MTM) loss net to =
Slide 21: Investment Portfolio Ratings and Book Value
21 Ratings(1) Book Value ($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% — — — — $9.3 8.0% $(210) 92% / 8% Asset-backed securities — 68% 24% 4% 1% 3% — 54.6 46.8
Slide 22: Asset-Backed Securities Holdings
22 Ratings(1) Book Value ($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% — $16.6 30.4% $(121) Credit Cards — 99% — — 1% — — 10.8 19.8 (6) Auto/Equipment — 98% — 1% 1% — — 5.0 9.1 6 Non-US RMBS — 82
Slide 23: Mortgage-Backed Securities Holdings
23 Ratings(1) Book Value ($B) Book Value (% Total) Unrealized After-tax MTM Gain / (Loss) ($M) Investment UST / AGY AAA AA A BBB <BBB Not Rated Agency MBS 100% — — — — — — $24.6 74.8% $11 Non-Agency MBS — 36% 8% 14% 13% 29% — 2.2 6.7 2 CMBS 2% 81% 8% 7% 1% 1% — 6.1 18.5 (1) TOTAL MBS 75% 18% 2% 2% 1
Slide 24: Non-U.S. Investment Summary
24 Non-U.S. Investments: Ratings Non-U.S. Investments: Asset Class (1) Sovereign debt is reflected in the government agency column. (2) Country of collateral used except for corporates, where country of issuer is used. Excludes equity securities of approximately $0.2 billion. (1) Investment Portfoli
Slide 25: B. Non-GAAP Measures and Capital Ratios
25 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 &