State Street Corporation has announced second-quarter results per common share of USD(7.12), including an after-tax extraordinary loss of USD(7.91) per share related to the effect of the previously disclosed consolidation of the State Street-administered asset-backed commercial paper (ABCP) conduits onto the Companys balance sheet, USD(0.23) per share related to repayment of the U.S. Treasurys TARP CPP investment, and USD(0.02) per share in merger and integration costs associated with the 2007 acquisition of Investors Financial Services Corp. (Investors Financial).
Revenue of USD2.122 billion in the second quarter of 2009 is down 20.6% from USD2.672 billion in the year-ago second quarter. Total expenses in the second quarter of 2009 of USD1.364 billion are down 25.9% compared to USD1.841 billion in the year-ago second quarter. As reflected in the after-tax per share loss noted above, the Company recorded an extraordinary pre-tax loss in the second quarter of USD(6.096) billion as a result of the previously reported consolidation of the ABCP conduits.
For the second quarter of 2009, before the extraordinary loss and reflecting the effect of the equity issuances in 2008 and 2009, return on common shareholders equity was 13.0%, down from 18.6% in the second quarter of 2008.
In addition to presenting State Streets financial results in conformity with US 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.
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