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State Street Corporation Announces Planned Increase to Its Quarterly Common Stock Dividend to $0.42 per Share and an Authorization to Purchase Up to $1.4 Billion of its Common Stock

BOSTON--(BUSINESS WIRE)--State Street Corporation (NYSE:STT) today announced that the Federal Reserve did not object to the Company's capital plan, reviewed by the Federal Reserve as part of the 2017 Comprehensive Capital Analysis and Review (CCAR) process. The capital plan includes a proposed common stock dividend increase and a new common stock purchase program.

The capital plan proposes an increase to the quarterly common stock dividend to $0.42 per share, from $0.38 per share, beginning in the third quarter of 2017. State Street’s Board of Directors will consider this increase in common stock dividend at its regularly scheduled meeting in July 2017. Additionally, State Street’s Board has approved a new common stock purchase program authorizing the purchase of up to $1.4 billion of its common stock that was included in the capital plan. The program will be effective July 1, 2017 and extend through June 30, 2018. The capital plan includes no net issuance of preferred shares over the program period of July 1, 2017 through June 30, 2018.

State Street’s third quarter 2017 common stock and other stock dividends, including the declaration, timing and amount thereof, remain subject to consideration and approval by State Street’s Board of Directors at the relevant times. State Street may commence purchases of its common stock under the new authorization beginning July 1, 2017. 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 of stock purchases, type of transaction and number of shares purchased will depend on several factors, including market conditions and State Street’s capital position, its financial performance, the amount of common stock issued as part of employee compensation programs 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 $29.8 trillion in assets under custody and administration and $2.6 trillion* in assets under management as of March 31, 2017, State Street operates in more than 100 geographic markets worldwide, including the US, Canada, Europe, the Middle East and Asia. For more information, visit State Street’s website at www.statestreet.com.

* Assets under management include approximately $33 billion as of March 31, 2017, for which State Street Global Markets, LLC, an affiliate of SSGA, serves as the distribution agent.

Forward-Looking Statements

This news release contains forward-looking statements as defined by United States securities laws, including statements relating to the content of, and our goals and expectations regarding, our capital plan, involving common stock dividends and purchases, issuances of preferred stock and other capital actions, and expectations for returning capital to shareholders. Forward-looking statements are often, but not always, identified by such forward-looking terminology as “plan,” “propose,” “priority,” “intend,” “expect,” “may,” “will,” “objective,” “forecast,” “outlook,” “believe,” “anticipate,” “estimate,” “seek,” “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 date subsequent to June 28, 2017.

Factors that could cause changes in the expectations or assumptions on which forward-looking statements are based cannot be foreseen with certainty and include, but are not limited to:

  • changes in our leverage or other regulatory capital ratios resulting from increases in client deposits, interest rates or other factors;
  • increases in the volatility of, or declines in the level of, our net interest income, changes in the composition or valuation 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, the valuation of the U.S. dollar relative to other currencies in which we record revenue or accrue expenses and the performance and volatility of securities, credit, currency and other markets in the U.S. and internationally; and the impact of monetary and fiscal policy in the United States and...

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