XML 514 R22.htm IDEA: XBRL DOCUMENT v3.23.1
Regulatory Capital
 3 Months Ended
Mar. 31, 2023
Banking and Thrift, Other Disclosure [Abstract]  
Regulatory Capital Regulatory Capital
For additional information on our regulatory capital, including the regulatory capital requirements administered by federal banking agencies, which we are subject to, refer to pages 167 to 168 in Note 16 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2022 Form 10-K.
As of March 31, 2023, we and State Street Bank exceeded all regulatory capital adequacy requirements to which we were subject to. As of March 31, 2023, State Street Bank was categorized as “well capitalized” under the applicable regulatory capital adequacy framework, and exceeded all “well capitalized” ratio guidelines to which it was subject. Management believes that no conditions or events have occurred since March 31, 2023 that have changed the capital categorization of State Street Bank.
The following table presents the regulatory capital structure, total RWA, related regulatory capital ratios and the minimum required regulatory capital ratios for us and State Street Bank as of the dates indicated.
State Street Corporation
State Street Bank
(Dollars in millions)Basel III Advanced Approaches March 31, 2023Basel III Standardized Approach March 31, 2023Basel III Advanced Approaches December 31, 2022Basel III Standardized Approach December 31, 2022Basel III Advanced Approaches March 31, 2023Basel III Standardized Approach March 31, 2023Basel III Advanced Approaches December 31, 2022Basel III Standardized Approach December 31, 2022
 Common shareholders' equity:
Common stock and related surplus$11,228 $11,228 $11,234 $11,234 $13,033 $13,033 $13,033 $13,033 
Retained earnings27,342 27,342 27,028 27,028 16,340 16,340 16,975 16,975 
Accumulated other comprehensive income (loss)(3,272)(3,272)(3,711)(3,711)(3,000)(3,000)(3,428)(3,428)
Treasury stock, at cost(12,524)(12,524)(11,336)(11,336)— — — — 
Total22,774 22,774 23,215 23,215 26,373 26,373 26,580 26,580 
Regulatory capital adjustments:
Goodwill and other intangible assets, net of associated deferred tax liabilities(8,527)(8,527)(8,545)(8,545)(8,268)(8,268)(8,288)(8,288)
Other adjustments(1)
(218)(218)(123)(123)(108)(108)(19)(19)
 Common equity tier 1 capital14,029 14,029 14,547 14,547 17,997 17,997 18,273 18,273 
Preferred stock1,976 1,976 1,976 1,976 — — — — 
 Tier 1 capital16,005 16,005 16,523 16,523 17,997 17,997 18,273 18,273 
Qualifying subordinated long-term debt1,369 1,369 1,376 1,376 541 541 542 542 
Allowance for credit losses— 161 — 120 — 161 — 120 
 Total capital$17,374 $17,535 $17,899 $18,019 $18,538 $18,699 $18,815 $18,935 
 Risk-weighted assets:
Credit risk(2)
$64,034 $113,869 $61,108 $105,739 $57,476 $112,093 $54,675 $104,184 
Operational risk(3)
42,549 NA42,763 NA42,192 NA42,325 NA
Market risk1,713 1,713 1,488 1,488 1,713 1,713 1,488 1,488 
Total risk-weighted assets$108,296 $115,582 $105,359 $107,227 $101,381 $113,806 $98,488 $105,672 
Adjusted quarterly average assets$268,747 $268,747 $275,678 $275,678 $266,192 $266,192 $273,220 $273,220 
Capital Ratios:
2023 Minimum Requirements(4)
2022 Minimum Requirements(4)
Common equity tier 1 capital8.0 %8.0 %13.0 %12.1 %13.8 %13.6 %17.8 %15.8 %18.6 %17.3 %
Tier 1 capital9.5 9.5 14.8 13.8 15.7 15.4 17.8 15.8 18.6 17.3 
Total capital11.5 11.5 16.0 15.2 17.0 16.8 18.3 16.4 19.1 17.9 
Tier 1 leverage(5)
4.0 4.0 6.0 6.0 6.0 6.0 6.8 6.8 6.7 6.7 
(1) Other adjustments within CET1 capital primarily include AOCI hedges that are not recognized at fair value on the balance sheet, the overfunded portion of our defined benefit pension plan obligation net of associated deferred tax liabilities, disallowed deferred tax assets, and other required credit risk-based deductions.
(2) Under the advanced approaches, credit risk RWA includes a CVA which reflects the risk of potential fair value adjustments for credit risk reflected in our valuation of OTC derivative contracts. We used a simple CVA approach in conformity with the Basel III advanced approaches.
(3) Under the current advanced approaches rules and regulatory guidance concerning operational risk models, RWA attributable to operational risk can vary substantially from period-to-period, without direct correlation to the effects of a particular loss event on our results of operations and financial condition and impacting dates and periods that may differ from the dates and periods as of and during which the loss event is reflected in our financial statements, with the timing and categorization dependent on the processes for model updates and, if applicable, model revalidation and regulatory review and related supervisory processes. An individual loss event can have a significant effect on the output of our operational RWA under the advanced approaches depending on the severity of the loss event and its categorization among the seven Basel-defined UOMs.
(4) Minimum requirements include a CCB of 2.5% and a SCB of 2.5% for the advanced approaches and the standardized approach, respectively, a G-SIB surcharge of 1.0% and a countercyclical buffer of 0%.
(5)State Street Bank is required to maintain a minimum Tier 1 leverage ratio of 5% as it is the insured depository institution subsidiary of State Street Corporation, a U.S. G-SIB.
NA Not applicable