2013-03-14 22:35:49 -
One Lincoln Street
Boston, MA 02111
United States of America
State Street Corporation Announces an Authorization to Purchase Up to $2.1
Billion of its Common Stock
BOSTON March 14, 2013 -- State Street Corporation, ("the Company") (NYSE:STT)
today announced that its Board of Directors has approved a new common stock
purchase program authorizing the purchase of up to $2.1 billion of its common
stock through March 31, 2014, reinforcing the Company's priority to return
capital to its shareholders. This new common stock purchase program
authorization follows the 2013 Comprehensive Capital Analysis and Review (CCAR)
process under which the Federal Reserve reviewed State Street's 2013 capital
plan and did not object to the Company's requested capital actions. The 2013
authorization represents an increase from the $1.8 billion 2012 common stock
purchase program previously authorized and executed from April 2012 through
February 2013.
State Street may commence purchases of its common stock under this new
authorization at any time. Stock purchases may be made in various types of
transactions, including open-market purchases or transactions off the market,
and may be made under Rule 10b5-1 trading programs. The timing of stock
purchases and number of shares purchased will depend on several factors,
including market conditions and State Street's capital position, its financial
performance and investment opportunities. The common stock purchase program does
not have specific price targets and may be suspended at any time.
Previously, on February 21, 2013, State Street announced a quarterly common
stock dividend of $0.26 per share payable on April 12, 2013 to shareholders of
record as of April 1, 2013. This dividend represents an increase of $0.02 per
share from the $0.24 per share of common stock quarterly dividend paid on
January 15, 2013.
Additional Information
State Street Corporation, like other companies covered by the provisions of
Section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act
(Dodd-Frank Act), is required to conduct stress tests semi-annually and to
disclose summary results of those stress tests under the severely adverse
scenario established by the Board of Governors of the Federal Reserve System.
State Street's disclosure can be found on its website, at
www.statestreet.com/stockholder under "Investor Relations".
Forward-Looking Statements
This news release contains forward-looking statements as defined by United
States securities laws, including statements relating to our goals and
expectations regarding our capital plans, involving common stock purchases and
dividends, and expectations for returning capital to shareholders. Forward-
looking statements are often, but not always, identified by such forward-looking
terminology as "intend," "plan," "expect," "look,"
"believe," "anticipate,"
"estimate," "seek," "may," "will," "trend,"
"target," 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 date subsequent to March
14, 2013.
Important factors that may affect future results and outcomes include, but are
not limited to:
* the financial strength and continuing viability of the counterparties with
which we or our clients do business and to which we have investment, credit
or financial exposure, including, for example, the direct and indirect
effects on counterparties of the current sovereign-debt risks in Europe and
other regions;
* financial market disruptions or economic recession, whether in the U.S.,
Europe, Asia or other regions;
* increases in the volatility of, or declines in the level of, our net
interest revenue, changes in the composition of the assets recorded in our
consolidated statement of condition (and our ability to measure the fair
value of investment securities) and the possibility that we may change the
manner in which we fund those assets;
* the liquidity of the U.S. and international securities markets, particularly
the markets for fixed-income securities and inter-bank credits, and the
liquidity requirements of our clients;
* the level and volatility of interest rates and the performance and
volatility of securities, credit, currency and other markets in the U.S. and
internationally;
* the credit quality, credit-agency ratings and fair values of the securities
in our investment securities portfolio, a deterioration or downgrade of
which could lead to other-than-temporary impairment of the respective
securities and the recognition of an impairment loss in our consolidated
statement of income;
* our ability to attract deposits and other low-cost, short-term funding, and
our ability to deploy deposits in a profitable manner consistent with our
liquidity requirements and risk profile;
* the manner and timing with which the Federal Reserve and other U.S. and
foreign regulators implement the Dodd-Frank Act, the Basel II and Basel III
capital and liquidity standards, and European legislation with respect to
the levels of regulatory capital we must maintain, our credit exposure to
third parties, margin requirements applicable to derivatives, banking and
financial activities and other regulatory initiatives in the U.S. and
internationally, including regulatory developments that result in changes to
our structure or operating model, increased costs or other changes to how we
provide services;
* adverse changes in the regulatory capital ratios that we are required to
meet, whether arising under the Dodd-Frank Act, the Basel II or Basel III
capital and liquidity standards or due to changes in regulatory positions,
practices or regulations in jurisdictions in which we engage in banking
activities, including changes in internal or external data, formulae,
models, assumptions or other advanced systems used in calculating our
capital ratios that cause changes in those ratios as they are measured from
period to period;
* increasing requirements to obtain the prior approval of the Federal Reserve
or our other regulators for the use, allocation or distribution of our
capital or other specific capital actions or programs, including
acquisitions, dividends and equity purchases, without which our growth
plans, distributions to shareholders, equity purchase programs or other
capital initiatives may be restricted;
* changes in law or regulation that may adversely affect our business
activities or those of our clients or our counterparties, and the products
or services that we sell, including additional or increased taxes or
assessments thereon, capital adequacy requirements, margin requirements and
changes that expose us to risks related to the adequacy of our controls or
compliance programs;
* our ability to promote a strong culture of risk management, operating
controls, compliance oversight and governance that meet our expectations or
those of our clients and our regulators;
* the credit agency ratings of our debt and depository obligations and
investor and client perceptions of our financial strength;
* delays or difficulties in the execution of our previously announced Business
Operations and Information Technology Transformation program, which could
lead to changes in our estimates of the charges, expenses or savings
associated with the planned program and may cause volatility of our
earnings;
* the results of, and costs associated with, government investigations,
litigation, and similar claims, disputes, or proceedings;
* the possibility that our clients will incur substantial losses in investment
pools for which we act as agent, and the possibility of significant
reductions in the valuation of assets underlying those pools;
* adverse publicity or other reputational harm;
* dependencies on information technology, complexities and costs of protecting
the security of our systems and difficulties with protecting our
intellectual property rights;
* our ability to grow revenue, control expenses, attract and retain highly
skilled people and raise the capital necessary to achieve our business goals
and comply with regulatory requirements;
* potential changes to the competitive environment, including changes due to
regulatory and technological changes, the effects of industry consolidation,
and perceptions of State Street as a suitable service provider or
counterparty;
* potential changes in how and in what amounts clients compensate us for our
services, and the mix of services provided by us that clients choose;
* the ability to complete acquisitions, joint ventures and divestitures,
including the ability to obtain regulatory approvals, the ability to arrange
financing as required and the ability to satisfy closing conditions;
* the risks that acquired businesses and joint ventures will not achieve their
anticipated financial and operational benefits or will not be integrated
successfully, or that the integration will take longer than anticipated,
that expected synergies will not be achieved or unexpected disynergies will
be experienced, that client and deposit retention goals will not be met,
that other regulatory or operational challenges will be experienced and that
disruptions from the transaction will harm our relationships with our
clients, our employees or regulators;
* our ability to recognize emerging needs of our clients and to develop
products that are responsive to such trends and profitable to us; the
performance of and demand for the products and services we offer; and the
potential for new products and services to impose additional costs on us and
expose us to increased operational risk;
* our ability to anticipate and manage the level and timing of redemptions and
withdrawals from our collateral pools and other collective investment
products;
* our ability to control operating risks, data security breach risks,
information technology systems risks and outsourcing risks, and our ability
to protect our intellectual property rights, the possibility of errors in
the quantitative models we use to manage our business and the possibility
that our controls will prove insufficient, fail or be circumvented;
* changes in accounting standards and practices; and
* changes in tax legislation and in the interpretation of existing tax laws by
U.S. and non-U.S. tax authorities that affect the amount of taxes due.
Other important factors that could cause actual results to differ materially
from those indicated by any forward-looking statements are set forth in our
2012 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 speak only as of the date hereof, March 14, 2013, and we do
not undertake efforts to revise those forward-looking statements to reflect
events after that date.
Investor Relations Contact: Valerie Haertel
Telephone: +1 617/664-3477
Media Contact: Hannah Grove
Telephone: +1 617/664-3377
Disclosure of Company-Run Stress Test Results:
hugin.info/152939/R/1685491/552180.docx
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: State Street Corporation via Thomson Reuters ONE
[HUG#1685491]
