8-KRegulation FDExhibits & Filings

STATE STREET CORP 8-K Report, Regulation FD Disclosure (Sep 17, 2015)

Filed September 17, 2015For Securities:STTSTT-PG

Summary

This 8-K filing from State Street Corporation (STT) on September 17, 2015, details its presentation at the Barclays Global Financial Services Conference. The company highlights its strong global franchise and strategic positioning for secular growth trends driven by globalization, retirement savings needs, increasing complexity in financial markets, and heightened regulation. State Street emphasizes its multi-dimensional growth strategy, which has historically involved expanding into new geographies, customer segments, investment vehicles, and technological solutions. The presentation underscores State Street's leadership positions in key areas such as custody and administration (AUCA), ETF administration, and alternative investment servicing, supported by a foundation of client satisfaction, service quality, and risk excellence. Looking ahead, State Street outlines its Global Services priorities, focusing on driving market share in high-growth areas like Alternatives and ETFs, innovating for consistent product leadership, expanding its presence in emerging economies, and digitizing its enterprise through technological advancements and process automation. The company also provides its 2015 financial outlook, expecting total fee revenue growth to outpace expense growth and projecting Net Interest Revenue (NIR) to be impacted by prevailing low interest rates and deposit trends, with updated scenarios considering potential Federal Reserve rate hikes.

Key Highlights

  • 1State Street is well-positioned for secular growth trends driven by globalization, retirement savings, increasing complexity, and heightened regulation.
  • 2The company has a strong global franchise with significant market leadership positions in assets under custody and administration (AUCA), ETF administration, and alternative investment servicing.
  • 3State Street's growth strategy is multi-dimensional, encompassing new geographies, customer segments, investment vehicles, and technology solutions.
  • 4Key priorities for Global Services include driving market share in high-growth areas (Alternatives, ETFs), innovating product leadership, expanding in emerging markets, and digitizing its enterprise.
  • 5The company provided an updated 2015 financial outlook, expecting operating-basis total fee revenue growth to outpace operating-basis expense growth by at least 200 basis points.
  • 6Net Interest Revenue (NIR) for 2015 is expected to be impacted by low interest rates and deposit levels, with updated scenarios factoring in potential Federal Reserve rate increases.
  • 7State Street is undertaking a significant business operations and IT transformation program aimed at achieving substantial run-rate savings through automation and efficiency improvements.

Frequently Asked Questions

State Street is focused on leveraging four key secular growth trends: globalization, the increasing need for retirement savings, growing complexity in financial markets, and heightened regulation.

The main priorities for State Street's Global Services business are to drive market share in high-growth areas like Alternatives and ETFs, innovate to maintain product leadership, expand its presence in key emerging economies, and digitize its enterprise through technology and automation.

For the full year 2015, State Street expects operating-basis total fee revenue growth to outpace operating-basis expense growth by at least 200 basis points. This outlook assumes the achievement of their targeted 4%-7% operating basis total fee revenue growth.

State Street's Net Interest Revenue (NIR) in 2015 is expected to be impacted by prevailing low interest rates and client deposit levels. The company provided updated scenarios considering potential Federal Reserve rate hikes, which could affect NIR positively, as well as foreign exchange rates and client cash deposit trends.