10-K/APeriod: FY2016

STATE STREET CORP Annual Report (Amendment), Year Ended Dec 31, 2016

Filed March 27, 2017For Securities:STTSTT-PG

Summary

State Street Corporation's 2017 10-K filing highlights its position as a leading financial services provider, with a strong focus on institutional investors globally. The company operates through two main segments: Investment Servicing, which provides core custody and related value-added services, and Investment Management, primarily through State Street Global Advisors (SSGA), offering a wide range of asset management strategies. As of December 31, 2016, State Street managed a significant $28.77 trillion in assets under custody and administration (AUCA) and $2.47 trillion in assets under management (AUM). The filing also details the company's robust regulatory environment, particularly in light of the Dodd-Frank Act and Basel III implementation, which impose stringent capital and liquidity requirements. State Street, designated as a Global Systemically Important Bank (G-SIB), is subject to higher capital surcharges and enhanced prudential standards. The company is actively managing its risk exposures, including credit, liquidity, operational, and market risks, through a comprehensive enterprise-wide risk management framework. Financially, in 2016, State Street reported total revenue of $10.2 billion, with fee revenue making up approximately 80% of this total. The company also actively engaged in capital return to shareholders through dividends and share repurchases, demonstrating a commitment to shareholder value while navigating the complex regulatory and economic landscape.

Financial Statements
Beta
Revenue$10.21B
Interest Expense$428.00M
Net Income$2.14B
EPS (Basic)$5.03
EPS (Diluted)$4.97
Shares Outstanding (Basic)391.49M
Shares Outstanding (Diluted)396.09M

Key Highlights

  • 1State Street manages $28.77 trillion in Assets Under Custody and Administration (AUCA) and $2.47 trillion in Assets Under Management (AUM) as of December 31, 2016, serving institutional investors globally.
  • 2The company operates through two primary lines of business: Investment Servicing and Investment Management (SSGA).
  • 3State Street is subject to significant regulatory oversight, including the Dodd-Frank Act and Basel III, and is classified as a Global Systemically Important Bank (G-SIB), necessitating higher capital and liquidity requirements.
  • 4Fee revenue constitutes the majority of State Street's revenue, representing approximately 80% of total revenue in 2016.
  • 5The company actively returned capital to shareholders through dividends and share repurchases in 2016, demonstrating a commitment to shareholder value.
  • 6State Street is focused on managing various risks, including credit, liquidity, operational, market, strategic, and model risk through a comprehensive enterprise risk management framework.
  • 7The company incurred $142 million in restructuring charges related to its 'State Street Beacon' transformation program in 2016, aimed at digitizing the business and lowering expenses.

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