State Street Reports 4Q Earnings

State Street Corporation announced fourth quarter 2009 earnings per common share of $1.00 on revenue of $2.280 billion compared with $0.54 per share on revenue of $2.673 billion in the fourth quarter of 2008. Expenses in the fourth quarter of

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State Street Corporation announced fourth-quarter 2009 earnings per common share of $1.00 on revenue of $2.280 billion compared with $0.54 per share on revenue of $2.673 billion in the fourth quarter of 2008. Expenses in the fourth quarter of 2009 are $1.565 billion, compared with $2.311 billion in the fourth quarter of 2008. For the fourth quarter of 2009, return on common shareholders equity was 14.0%, up from 8.4% in the fourth quarter of 2008.

Compared to the third quarter of 2009, fourth-quarter 2009 results improved from $0.66 per share on revenue of $2.236 billion. Expenses in the third quarter of 2009 were $1.733 billion.

For the third quarter of 2009, return on common shareholders equity was 10.2%.

The 2009 results included an after-tax extraordinary loss of $(3.684) billion or $(7.77) per share related to the effect of the May 2009 consolidation of the State Street-administered asset-backed commercial paper conduits onto the Companys balance sheet. In 2009, State Street reported full-year earnings per share of $3.46, before the extraordinary loss, on revenue of $8.640 billion compared with earnings per share of $4.30 on revenue of $10.693 billion in 2008. Including the extraordinary loss, the full-year 2009 loss per share was $(4.31). Return on common shareholders equity was 13.2% in 2009 before the extraordinary loss, compared with 14.8% in 2008.

In addition to presenting State Streets financial results in conformity with U.S. generally accepted accounting principles (GAAP), management also presents results on an operating basis in order to highlight comparable financial trends and other characteristics with respect to State Streets ongoing business operations from period to period. A full reconciliation of operating-basis results to GAAP results is included in the addendum at the end of this press release. Also see Additional Information. Net interest revenue on an operating basis for all periods is presented on a fully taxable-equivalent basis.

Operating-basis results for 2009 exclude a pre-tax provision of $(250) million or $(0.37) per share related to an increase in the reserve established in 2007 to address legal exposure related to losses incurred by investors in certain fixed-income strategies managed by State Street Global Advisors, $(106) million or $(0.22) per share related to repayment of the U.S. Treasurys TARP Capital Purchase Program investment and $(49) million, or $(0.06) per share, of pre-tax merger and integration costs associated with the 2007 acquisition of Investors Financial Services Corp., which includes the fourth-quarter and third-quarter 2009 effects of $(9) million or $(0.01) per share and $(11) million or $(0.01) per share, respectively, for pre-tax merger and integration costs associated with that acquisition.

For more complete information please visit www.statestreet.com

D.C.

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