EX-99.1 2 a07-2899_1ex99d1.htm EX-99.1

Exhibit 99.1

STATE STREET CORPORATION

Press Release Addendum
December 31, 2006

Table of Contents

 

 

Page

 

Financial Highlights

 

2

 

 

 

 

 

Selected Financial Information

 

 

 

 

 

 

 

Quarters and years ended December 31, 2006 and 2005

 

3

 

 

 

 

 

Quarters ended December 31, 2006 and September 30, 2006

 

4

 

 

 

 

 

Consolidated Statement of Condition

 

5

 

 

These financial schedules should be used in conjunction with State Street’s quarterly earnings press release.




STATE STREET CORPORATION
Press Release Addendum

Financial Highlights
December 31, 2006

 

 

 

Quarters Ended

 

 

 

% Change

 

 

 

 

 

 

 

 

 

Q4

 

Q4

 

(Dollars in millions, except per share amounts

 

December 31,

 

September 30,

 

December 31,

 

vs.

 

vs.

 

or where otherwise noted)

 

2006

 

2006

 

2005

 

Q3

 

Q4

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenue

 

$

1,622

 

$

1,515

 

$

1,416

 

7

%

15

%

Total Expenses

 

1,178

 

1,090

 

1,039

 

8

 

13

 

Income Tax Expense

 

135

 

147

 

128

 

(8

)

5

 

Net Income

 

309

 

278

 

249

 

11

 

24

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share

 

$

.91

 

$

.83

 

$

.74

 

10

 

23

 

Closing Price Per Share of Common Stock

 

$

67.44

 

$

62.40

 

$

55.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Dividends Declared Per Share

 

.21

 

.20

 

.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity

 

16.9

%

16.4

%

15.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets Under Custody (AUC) (in trillions)

 

$

11.85

 

$

11.27

 

$

10.12

 

 

 

 

 

Assets Under Management (AUM) (in trillions)

 

1.75

 

1.63

 

1.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

% Change

 

 

 

 

 

 

 

 

 

 

 

2006

 

 

 

 

 

 

 

December 31,

 

December 31,

 

vs.

 

 

 

 

 

(Dollars in millions, except per share amounts)

 

2006

 

2005

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenue

 

$

6,311

 

$

5,473

 

15

%

 

 

 

 

Total Expenses

 

4,540

 

4,041

 

12

 

 

 

 

 

Income Tax Expense

 

675

 

487

 

39

 

 

 

 

 

Income from Continuing Operations

 

1,096

 

945

 

16

 

 

 

 

 

Income (Loss) from Discontinued Operations

 

10

 

(107

)

 

 

 

 

 

 

Net Income

 

1,106

 

838

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings (Loss) Per Share:

 

 

 

 

 

 

 

 

 

 

 

From Continuing Operations

 

$

3.26

 

$

2.82

 

16

 

 

 

 

 

From Discontinued Operations

 

.03

 

(.32

)

 

 

 

 

 

 

Net Income

 

3.29

 

2.50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Dividends Declared Per Share

 

$

.80

 

$

.72

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity from Continuing Operations

 

16.2

%

15.3

%

 

 

 

 

 

 

Return on Equity

 

16.4

 

13.6

 

 

 

 

 

 

 

 

2




STATE STREET CORPORATION
Press Release Addendum

SELECTED FINANCIAL INFORMATION
Quarters and years ended December 31, 2006 and December 31, 2005

 

 

Quarters Ended

 

Years Ended

 

(Dollars in millions, except per share amounts)

 

December 31,
2006

 

December 31,
2005

 

% Change

 

December 31,
2006

 

December 31,
2005

 

% Change

 

Fee Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Servicing fees

 

$

698

 

$

637

 

10

%

$

2,723

 

$

2,474

 

10

%

Management fees

 

253

 

213

 

19

 

943

 

751

 

26

 

Trading services

 

203

 

182

 

12

 

862

 

694

 

24

 

Securities finance

 

90

 

73

 

23

 

386

 

330

 

17

 

Processing fees and other

 

61

 

71

 

(14

)

272

 

302

 

(10

)

Total fee revenue

 

1,305

 

1,176

 

11

 

5,186

 

4,551

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest revenue

 

1,226

 

861

 

42

 

4,324

 

2,930

 

48

 

Interest expense

 

910

 

619

 

47

 

3,214

 

2,023

 

59

 

Net interest revenue(1)

 

316

 

242

 

31

 

1,110

 

907

 

22

 

Provision for loan losses

 

 

 

 

 

 

 

 

 

Net interest revenue after provision for loan losses

 

316

 

242

 

31

 

1,110

 

907

 

22

 

Gains (Losses) on sales of available-for-sale investment securities, net

 

1

 

(2

)

 

 

15

 

(1

)

 

 

Gain on sale of Private Asset Management business

 

 

 

 

 

 

16

 

 

 

Total revenue

 

1,622

 

1,416

 

15

 

6,311

 

5,473

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

694

 

589

 

18

 

2,652

 

2,231

 

19

 

Information systems and communications

 

119

 

122

 

(2

)

501

 

486

 

3

 

Transaction processing services

 

121

 

118

 

3

 

496

 

449

 

10

 

Occupancy

 

94

 

89

 

6

 

373

 

391

 

(5

)

Other

 

150

 

121

 

24

 

518

 

484

 

7

 

Total operating expenses

 

1,178

 

1,039

 

13

 

4,540

 

4,041

 

12

 

Income from continuing operations before income tax expense

 

444

 

377

 

18

 

1,771

 

1,432

 

24

 

Income tax expense from continuing operations

 

135

 

128

 

 

 

675

 

487

 

 

 

Income from continuing operations

 

309

 

249

 

24

 

1,096

 

945

 

16

 

Income (Loss) from discontinued operations before income tax expense

 

 

 

 

 

16

 

(165

)

 

 

Income tax expense (benefit) from discontinued operations

 

 

 

 

 

6

 

(58

)

 

 

Income (Loss) from discontinued operations

 

 

 

 

 

10

 

(107

)

 

 

Net income

 

$

309

 

$

249

 

 

 

$

1,106

 

$

838

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share From Continuing Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

.93

 

$

.75

 

24

 

$

3.31

 

$

2.86

 

16

 

Diluted

 

.91

 

.74

 

23

 

$

3.26

 

2.82

 

16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) Per Share From Discontinued Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 

$

 

 

 

$

.03

 

$

(.33

)

 

 

Diluted

 

 

 

 

 

.03

 

(.32

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

.93

 

$

.75

 

 

 

$

3.34

 

$

2.53

 

 

 

Diluted

 

.91

 

.74

 

 

 

3.29

 

2.50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Shares Outstanding (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

331,421

 

330,689

 

 

 

331,350

 

330,361

 

 

 

Diluted

 

337,429

 

337,061

 

 

 

335,732

 

334,646

 

 

 

 

Consolidated Statement of Income prepared in accordance with accounting principles generally accepted in the United States.


(1)             Net interest revenue on a fully taxable-equivalent basis was $328 million and $253 million for the three months ended December 31, 2006 and 2005, respectively, and $1.16 billion and $949 million for the years ended December 31, 2006 and 2005, respectively.

3




STATE STREET CORPORATION
Press Release Addendum

SELECTED FINANCIAL INFORMATION
Quarters ended December 31, 2006 and September 30, 2006

 

 

Quarters Ended

 

 

 

December 31,

 

September 30,

 

 

 

(Dollars in millions, except per share amounts)

 

2006

 

2006

 

% Change

 

 

 

 

 

 

 

 

 

Fee Revenue:

 

 

 

 

 

 

 

Servicing fees

 

$

698

 

$

685

 

2

%

Management fees

 

253

 

238

 

6

 

Trading services

 

203

 

171

 

19

 

Securities finance

 

90

 

87

 

3

 

Processing fees and other

 

61

 

65

 

(6

)

Total fee revenue

 

1,305

 

1,246

 

5

 

 

 

 

 

 

 

 

 

Net Interest Revenue:

 

 

 

 

 

 

 

Interest revenue

 

1,226

 

1,103

 

11

 

Interest expense

 

910

 

837

 

9

 

Net interest revenue(1)

 

316

 

266

 

19

 

Provision for loan losses

 

 

 

 

 

Net interest revenue after provision for loan losses

 

316

 

266

 

19

 

 

 

 

 

 

 

 

 

Gains on sales of available-for-sale investment securities, net

 

1

 

3

 

 

 

Total revenue

 

1,622

 

1,515

 

7

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

Salaries and employee benefits

 

694

 

639

 

9

 

Information systems and communications

 

119

 

121

 

(2

)

Transaction processing services

 

121

 

121

 

 

Occupancy

 

94

 

91

 

3

 

Other

 

150

 

118

 

27

 

Total operating expenses

 

1,178

 

1,090

 

8

 

Income before income tax expense

 

444

 

425

 

4

 

Income tax expense

 

135

 

147

 

 

 

Net income

 

$

309

 

$

278

 

11

 

 

 

 

 

 

 

 

 

Earnings Per Share:

 

 

 

 

 

 

 

Basic

 

$

.93

 

$

.84

 

11

 

Diluted

 

.91

 

.83

 

10

 

 

 

 

 

 

 

 

 

Average Shares Outstanding (in thousands):

 

 

 

 

 

 

 

Basic

 

331,421

 

330,440

 

 

 

Diluted

 

337,429

 

335,513

 

 

 

 

Consolidated Statement of Income prepared in accordance with accounting principles generally accepted in the United States.


(1)             Net interest revenue on a fully taxable-equivalent basis was $328 million and $275 million for the three months ended   December 31, 2006 and September 30, 2006.

4




STATE STREET CORPORATION
Press Release Addendum

CONSOLIDATED STATEMENT OF CONDITION

 

 

 

December 31,

 

December 31,

 

(Dollars in millions, except per share amounts)

 

2006

 

2005

 

Assets

 

 

 

 

 

Cash and due from banks

 

$

2,368

 

$

2,684

 

Interest-bearing deposits with banks

 

5,236

 

11,275

 

Securities purchased under resale agreements

 

14,678

 

8,679

 

Trading account assets

 

785

 

764

 

Investment securities available for sale

 

60,445

 

54,979

 

Investment securities held to maturity

 

4,547

 

4,891

 

Loans and leases (net of allowance of $18)

 

8,928

 

6,464

 

Premises and equipment

 

1,560

 

1,453

 

Accrued income receivable

 

1,617

 

1,364

 

Goodwill

 

1,384

 

1,337

 

Other intangible assets

 

434

 

459

 

Other assets

 

5,371

 

3,619

 

Total assets

 

$

107,353

 

$

97,968

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Deposits:

 

 

 

 

 

Noninterest-bearing

 

$

10,194

 

$

9,402

 

Interest-bearing — U.S.

 

1,272

 

2,379

 

Interest-bearing — Non-U.S.

 

54,180

 

47,865

 

Total deposits

 

65,646

 

59,646

 

 

 

 

 

 

 

Securities sold under repurchase agreements

 

19,147

 

20,895

 

Federal funds purchased

 

2,147

 

1,204

 

Other short-term borrowings

 

2,835

 

1,219

 

Accrued taxes and other expenses

 

3,143

 

2,632

 

Other liabilities

 

4,567

 

3,346

 

Long-term debt

 

2,616

 

2,659

 

Total liabilities

 

100,101

 

91,601

 

 

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

Preferred stock, no par: authorized 3,500,000; issued none

 

 

 

 

 

Common stock, $1 par: authorized 500,000,000 shares; issued 337,126,000 and 337,126,000 shares

 

337

 

337

 

Surplus

 

399

 

266

 

Retained earnings

 

7,030

 

6,189

 

Accumulated other comprehensive loss

 

(224

)

(231

)

Treasury stock (at cost 4,688,000 and 3,501,000 shares)

 

(290

)

(194

)

Total shareholders’ equity

 

7,252

 

6,367

 

Total liabilities and shareholders’ equity

 

$

107,353

 

$

97,968

 

 

5