State Street Corporation · NYSE:STT
State Street — Barclays Global Financial Services Conference 2015
18 slides from State Street's conference presentation, Sep 17, 2015
Slide 1: State Street Global Services: Well positioned for secular growth trends
State Street Global Services Well positioned for secular growth trends Barclays Global Financial Services Conference Gunjan Kedia Executive Vice President Head of Investment Servicing, Americas September 17, 2015 STT: NYSE
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements within the meaning of U.S. securities laws, including statements about our goals and expectations regarding our business, financial and capital condition, results of operations, investment portfolio performance and stra
Slide 3: A strong global franchise
A strong global franchise Global: Europe, Middle Revenue: $10.3B Americas: East & Africa: Asia Pacific: Servicing Fees: $5.1B AUCA: $28.2T Revenue: $5,945M Revenue: $3,472M Revenue: $878M AUM: $2.45T AUCA: $21.22T AUCA: $5.63T AUCA: $1.34T Markets: 100 AUM: $1,568B AUM: $559B AUM: $321B Employees: 3
Slide 4: Multi-dimensional growth strategy over decades
Multi-dimensional growth strategy over decades Illustrative: New Investment Vehicles 1970’s Alternatives Today New Technology Solutions Service Solutions Extensions Official institutions Exchange Traded Funds Institutions Funds New Arenas Enhanced Credit Trading Research Securities FX Custody Servic
Slide 5: Our leadership positions
Our leadership positions Assets Serviced by Global Custodian US Mutual Funds Global Middle Office Outsourcing (AUCA $T) (Daily Published NAVs) (Outsourced Assets $T) 29 28 12,028 11 21 16 9 9 6 2,098 2 2 1,552 1,113 1 1 1 726 BK STT JPM C HSBC BNPP NTRS STT BK JPM USB BBH STT NTRS BBH BK BNPP JPM So
Slide 6: Growing with our clients
Growing with our clients Case Study: Global Asset Manager Assets Under Custody & Administration at State Street ($B) Average Number of Products used by State Street Clients1 17 14 CAGR 31.8% 324 284 269 267 196 8 71 66 47 Top 1000 Top 100 Top 25 2007 2008 2009 2010 2011 2012 2013 2014 Middle Global
Slide 7: Looking ahead: Global Services priorities
Looking ahead: Global Services priorities Drive market share in high growth areas: Our Foundation: Alternatives, ETFs, Offshore funds • Client satisfaction • Service quality Innovate for consistent product leadership • Risk Excellence • Talent depth and knowledge Expand presence in key emerging econ
Slide 8: Driving market share in high growth areas
Driving market share in high growth areas Alternative Investment Market Assets1 2008-2014 CAGR (AUA $B) 8,500 11.6% 7,100 7,700 Key Initiatives: 6,300 5,800 5,000 4,400 • Sector Solutions focus on five core client segments to drive business development 16% 19.6% 2008 2009 2010 2011 2012 2013 2014 •
Slide 9: Innovating for consistent product leadership
Innovating for consistent product leadership Trends Driving Opportunity Solutions • Liquid Alternatives Convergence of • Enhanced Asset Owner-Asset Managers Client Segments • Active, Non-transparent ETFs • Enhanced Custody • Liquidity Solutions • Money Market Reform Regulation • SEC Financial report
Slide 10: Expanding presence in key emerging economies
Expanding presence in key emerging economies State Street’s Footprint in Asia Pacific Region1 Australia and Japan: • Superannuation, Japan ITM2 funds • Asset owners’ increasing sophistication demand solutions such as alternatives China servicing, data & analytics South Japan Korea India Macau Taiwan
Slide 11: Digitizing our enterprise
Digitizing our enterprise Illustrative Example Transformation program laid the foundation Comprehensive Liquidity Solutions • Resiliency Leverage state-of-the-art data warehousing technology to aggregate data from multiple sources • Patented Cloud technology Innovate faster Enterprise-level liqu
Slide 12: State Street Global Services – Results built on…
State Street Global Services – Results built on… Well Focused positioned A strong strategy with for secular franchise four growth priorities trends • Deep global client • Globalization • Leadership in high- relationships • Retirement savings growth areas • Market leading product • Heightened • Innov
Slide 13: Q&A
13 O&A STATE STREET.
Slide 14: Appendix
Appendix This Appendix includes financial information presented on a GAAP basis as well as on a non-GAAP, or “operating basis,” in addition to other measures not presented in conformity with GAAP and used in the calculation of identified capital ratios. Management measures and compares certain finan
Slide 15: Continue to expect full year 2015 results in line with expectations
Continue to expect full year 2015 results in line with expectations communicated on January 23, 20151 • Continue to expect operating-basis total fee revenue growth to be in the range of 4%-7% for 2015 compared to 2014: – Weaker Euro to USD exchange rate in 2015 placing downward pressures on fee grow
Slide 16: 2015 Outlook
2015 Outlook1 as disclosed on January 23, 2015 See slide 15 for outlook as of September 17, 2015 Strong growth in our fee revenue, partially offset by the impact of low interest rates and a higher effective tax rate • Aiming for full-year 2015 operating-basis total fee revenue1 growth of 4%-7% compa
Slide 17: 2015 Outlook
2015 Outlook1 as disclosed on January 23, 2015 See slide 15 for outlook as of September 17, 2015 Expense management remains a priority • Expense management remains a priority; while there continues to be upward pressure on regulatory compliance costs, our focus will be on: – Controlling expenses and
Slide 18: 2015 Outlook
2015 Outlook1 as disclosed on January 23, 2015 Illustrative Scenarios See slide 15 for outlook as of September 17, 2015 As illustrated below, operating-basis NIR1 likely to decline in 2015 from 2014 Static Scenario Rising Scenario Primary Drivers2 State Street $2.07B-$2.17B $2.15B-$2.25B • Short-ter
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