State Street Corporation Declares Third-Quarter Dividend on its Common Stock and Authorization to Repurchase up to $3.0 Billion of Common Stock

BOSTON--(BUSINESS WIRE)--State Street Corporation (NYSE: STT) today announced its third quarter 2021 cash dividend of $0.57 per share of common stock, an increase of 10% from $0.52 per share of common stock in the prior quarter. The dividend is payable on October 12, 2021 to common shareholders of record at the close of business on October 1, 2021.

Additionally, State Street’s Board of Directors has approved a new common stock purchase program, authorizing the purchase of up to $3.0 billion of its common stock over the six quarters beginning in the third quarter of 2021 and continuing through the fourth quarter of 2022.

“As we continue to invest in our business for future growth, the SCB framework provides us with increased flexibility to deploy our capital,” said Chairman and Chief Executive Officer Ron O’Hanley. “The continued strength of our balance sheet, coupled with our solid performance under this year’s annual stress test, has positioned us well to increase our dividend and announce a new common stock repurchase program,” O’Hanley added.

Stock purchases may be made using various types of transactions, including open-market purchases, accelerated share repurchases or other transactions off the market, and may be made under Rule 10b5-1 trading programs. The timing and amount of any stock purchases and the type of transaction will depend on several factors, including investment opportunities, State Street’s capital position, its financial performance, market conditions and the amount of common stock issued as part of employee compensation programs. The common stock purchase program does not have specific price targets and may be suspended at any time.

About State Street Corporation

State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $40.3 trillion in assets under custody and/or administration and $3.6 trillion* in assets under management as of March 31, 2021, State Street operates globally in more than 100 geographic markets and employs approximately 39,000 worldwide. For more information, visit State Street's website at www.statestreet.com.

^{* Assets under management as of March 31, 2021 includes approximately $60 billion of assets with respect to SPDR® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.}

Forward Looking Statements

This News Release contains forward-looking statements within the meaning of United States securities laws, including statements about our goals and expectations regarding our plans to return capital to shareholders, including intentions for common stock dividends and share repurchases, as well as regarding our business, financial and capital condition, results of operations, strategies, the financial and market outlook, governmental and regulatory initiatives and developments, and the business environment. Forward-looking statements are often, but not always, identified by such forward-looking terminology as “outlook,” “guidance,” “expect,” “priority,” “objective,” “intend,” “plan,” “forecast,” “believe,” “anticipate,” “estimate,” “seek,” “may,” “will,” “trend,” “target,” “strategy” and “goal,” or similar statements or variations of such terms. These statements are not guarantees of future performance, are inherently uncertain, are based on current assumptions that are difficult to predict and involve a number of risks and uncertainties. Therefore, actual outcomes and results may differ materially from what is expressed in those statements, and those statements should not be relied upon as representing our expectations or beliefs as of any time subsequent to the time this News Release is first issued.

Important factors that may affect future results and outcomes include, but are not limited to:

• The continuation of share repurchases in upcoming quarters is subject to the approval of our Board of Directors and depends on several factors, including investment opportunities, financial performance, market conditions and our capital positions;
• We are subject to intense competition, which could negatively affect our profitability;
• We are subject to significant pricing pressure and variability in our financial results and our AUC/A and AUM;
• Our development and completion of new products and services, including State Street Alpha, may involve costs and dependencies and expose us to increased risk;
• Our business may be negatively affected by our failure to update and maintain our technology infrastructure;
• The COVID-19 pandemic continues to create significant risks and uncertainties for our business;
• Acquisitions, strategic alliances, joint ventures and divestitures, and the integration, retention and development of the benefits of our acquisitions, pose risks for our business;
• The integration of CRD may be more difficult, costly or time consuming than expected, and the anticipated benefits and cost synergies may not be fully realized;
• Competition for qualified members of our workforce is intense, and we may not be able to attract and retain the highly skilled people we need to support our business;
• We could be adversely affected by geopolitical, economic and market conditions;
• We have significant International operations, and disruptions in European and Asian economies could have an adverse effect on our consolidated results of operations or financial condition;
• Our investment securities portfolio, consolidated financial condition and consolidated results of operations could be adversely affected by changes in the financial markets;
• Our business activities expose us to interest rate risk;
• We assume significant credit risk to counterparties, who may also have substantial financial dependencies with other financial institutions, and these credit exposures and concentrations could expose us to financial loss;
• Our fee revenue represents a significant portion of our consolidated revenue and is subject to decline based on, among other factors, the investment activities of our clients;
• If we are unable to effectively manage our capital and liquidity, our consolidated financial condition, capital ratios, results of operations and business prospects could be adversely affected;
• We may need to raise additional capital or debt in the future, which may not be available to us or may only be available on unfavorable terms;
• If we experience a downgrade in our credit ratings, or an actual or perceived reduction in our financial strength, our borrowing and capital costs, liquidity and reputation could be adversely affected;
• Our business and capital-related activities, including common share repurchases, may be adversely affected by capital and liquidity standards required as a result of capital stress testing;
• We face extensive and changing government regulation in the jurisdictions in which we operate, which may increase our costs and compliance risks;
• We are subject to enhanced external oversight as a result of the resolution of prior regulatory or governmental matters;
• Our businesses may be adversely affected by government enforcement and litigation;
• We are subject to various legal proceedings relating to the manner in which we have invoiced certain expenses, and the outcome of which could materially adversely affect our results of operations or harm our business or reputation;
• Any misappropriation of the confidential information we possess could have an adverse impact on our business and could subject us to regulatory actions, litigation and other adverse effects;
• Our calculations of risk exposures, total RWA and capital ratios depend on data inputs, formulae, models, correlations and assumptions that are subject to change, which could materially impact our risk exposures, our total RWA and our capital ratios from period to period;
• Changes in accounting standards may adversely affect our consolidated financial statements;
• Changes in tax laws, rules or regulations, challenges to our tax positions and changes in the composition of our pre-tax earnings may increase our effective tax rate;
• The transition away from LIBOR may result in additional costs and increased risk exposure;
• Our control environment may be inadequate, fail or be circumvented, and operational risks could adversely affect our consolidated results of operations;
• Cost shifting to non-U.S. jurisdictions and outsourcing may expose us to increased operational risk and reputational harm and may not result in expected cost savings;
• If we, or the third parties with which we do business, experience failures, attacks or unauthorized access to our or their respective information technology systems or facilities, or disruptions to our continuous operations, this could result in significant costs, reputational damage and limits on our business activities;
• Long-term contracts expose us to pricing and performance risk;
• Our businesses may be negatively affected by adverse publicity or other reputational harm;
• We may not be able to protect our intellectual property;
• The quantitative models we use to manage our business may contain errors that could result in material harm;
• Our reputation and business prospects may be damaged if our clients incur substantial losses or are restricted in redeeming their interests in investment pools that we sponsor or manage;
• The impacts of climate change could adversely affect our business operations;
• We may incur losses as a result of unforeseen events including terrorist attacks, natural disasters, the emergence of a new pandemic or acts of embezzlement.

Other important factors that could cause actual results to differ materially from those indicated by any forward-looking statements are set forth in our 2020 Annual Report on Form 10-K and our subsequent SEC filings. We encourage investors to read these filings, particularly the sections on risk factors, for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this News Release should not by relied on as representing our expectations or beliefs as of any time subsequent to the time this News Release is first issued, and we do not undertake efforts to revise those forward-looking statements to reflect events after that time.