BOSTON--(BUSINESS WIRE)--
State Street Corporation (NYSE:STT) today announced a quarterly dividend
of $0.24 per share of common stock, payable April 16, 2012, to
stockholders of record as of April 2, 2012, and representing an increase
of $0.06 per share, or 33%, from the $0.18 per share of common stock
dividend paid on January 17, 2012. This increase restores the dividend
to its previous split-adjusted high of $0.24 per share of common stock,
most recently paid on January 15, 2009.
State Street also announced that its Board of Directors has approved a
new common stock purchase program authorizing the purchase of up to $1.8
billion of common stock through March 31, 2013. This new program follows
the Company’s 2011 common stock purchase program, completed in November
2011, under which it purchased approximately $675 million of its common
stock and reinforces the Company’s intent to prioritize a return of
capital to shareholders.
In connection with the 2012 Comprehensive Capital Analysis and Review of
bank holding companies, the Federal Reserve reviewed State Street’s
capital plan and did not object to the Company’s requested capital
actions.
State Street may commence common stock purchases 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, financial performance and investment opportunities. 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 $21.8 trillion in assets under custody and administration
and $1.9 trillion in assets under management at December 31, 2011, State
Street operates in 26 countries and more than 100 geographic markets and
employs 28,670 worldwide. For more information, visit State Street’s web
site at www.statestreet.com
or call +1 877/639-7788 [NEWS STT] toll-free in the United States and
Canada, or +1 678/999-4577 outside those countries.
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 dividends and share repurchases, and expectations for returning
capital to shareholders. Forward-looking statements are often, but not
always, identified by such forward-looking terminology as "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, 2012.
Important factors that may affect future results and outcomes include,
but are not limited to:
-
the manner in which the Federal Reserve and other regulators implement
the Dodd-Frank Act, Basel III, European directives with respect to
banking and financial instruments and other regulatory initiatives in
the U.S. and internationally, including regulatory developments that
result in changes to our operating model or other changes to the
provision of our services;
-
adverse changes in required regulatory capital ratios, whether arising
under the Dodd-Frank Act, Basel II or Basel III, or due to changes in
regulatory positions or regulations in jurisdictions in which we
engage in banking activities;
-
approvals required by the Federal Reserve or other regulators for the
use, allocation or distribution of our capital or other specific
capital actions or programs, including acquisitions, dividends and
equity repurchases, that may restrict or limit our growth plans,
distributions to shareholders, equity purchase programs or other
capital initiatives;
-
changes in law or regulation that may adversely affect our, our
clients’ or our counterparties’ business activities and the products
or services that we sell, including additional or increased taxes or
assessments thereon, capital adequacy requirements and changes that
expose us to risks related to compliance;
-
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 or other regions internationally;
-
increases in the volatility of, or declines in the level of, our net
interest revenue, changes in the composition of the assets on our
consolidated statement of condition and the possibility that we may be
required to 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 maintenance of credit agency ratings for our debt and depository
obligations as well as the level of credibility of credit agency
ratings;
-
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, resulting in increased
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 where we act as agent, and the possibility of
significant reductions in the valuation of assets;
-
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, attract and/or retain and compensate
highly skilled people, control expenses and attract 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
consolidation, and perceptions of State Street as a suitable service
provider or counterparty;
-
potential changes in how clients compensate us for our services, and
the mix of services that clients choose from us;
-
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 relationships with clients, employees or
regulators;
-
the ability to complete acquisitions, divestitures and joint ventures,
including the ability to obtain regulatory approvals, the ability to
arrange financing as required and the ability to satisfy closing
conditions;
-
our ability to recognize emerging clients’ needs and to develop
products that are responsive to such trends and profitable to the
company; the performance of and demand for the products and services
we offer, including the level and timing of redemptions and
withdrawals from our collateral pools and other collective investment
products; and the potential for new products and services to impose
additional costs on us and expose us to increased operational risk;
-
our ability to measure the fair value of the investment securities on
our consolidated statement of condition;
-
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 2011 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, 2012, and we do not undertake efforts
to revise those forward-looking statements to reflect events after that
date.
State Street Corporation
Investors:
S. Kelley MacDonald, +1
617-664-3477
or
Media:
Hannah Grove, +1 617-664-3377
Source: State Street Corporation