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x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Massachusetts
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04-2456637
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(State or other jurisdiction of incorporation)
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(I.R.S. Employer Identification No.)
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One Lincoln Street
Boston, Massachusetts
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02111
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(Address of principal executive office)
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(Zip Code)
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617-786-3000
(Registrant’s telephone number, including area code)
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Securities registered pursuant to Section 12(b) of the Act:
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(Title of Each Class)
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(Name of each exchange on which registered)
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Common Stock, $1 par value per share
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New York Stock Exchange
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Depositary Shares, each representing a 1/4,000th ownership interest in a share of Non-Cumulative Perpetual Preferred Stock, Series C, without par value per share
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New York Stock Exchange
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Depositary Shares, each representing a 1/4,000th ownership interest in a share of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D, without par value per share
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New York Stock Exchange
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Depositary Shares, each representing a 1/4,000th ownership interest in a share of Non-Cumulative Perpetual Preferred Stock, Series E, without par value per share
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New York Stock Exchange
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Depositary Shares, each representing a 1/100th ownership interest in a share of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, without par value per share
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New York Stock Exchange
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Large accelerated filer
x
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Accelerated filer
¨
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Non-accelerated filer
¨
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Smaller reporting company
¨
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(Do not check if a smaller reporting company)
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PART I
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Item 1
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Item 1A
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Item 1B
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Item 2
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Item 3
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Item 4
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PART II
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Item 5
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Item 6
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Item 7
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Item 7A
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Item 8
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Item 9
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Item 9A
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Item 9B
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PART III
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Item 10
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Item 11
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Item 12
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Item 13
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Item 14
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PART IV
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Item 15
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ACRONYMS
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ABS
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Asset-backed securities
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FSB
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Financial Stability Board
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AIFMD
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Alternative Investment Fund Managers Directive
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FSOC
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Financial Stability Oversight Council
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FX
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Foreign exchange
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AFS
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Available-for-sale
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GAAP
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Generally accepted accounting principals
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ALCO
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Asset-Liability Committee
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GCR
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Global credit review
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ALLL
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Allowance for loan and lease losses
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G-SIB
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Global systemically important banks
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AML
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Anti-money laundering
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HQLA
(1)
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High-quality liquid assets
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AOCI
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Accumulated other comprehensive income (loss)
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HTM
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Held-to-maturity
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AUCA
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Assets under custody and administration
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IDI
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Insured depository institution
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AUM
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Assets under management
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ISDA
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International Swaps and Derivatives Association
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BCBS
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Basel Committee on Banking Supervision
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LCR
(1)
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Liquidity coverage ratio
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BCRC
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Business Conduct Risk Committee
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LDA model
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Loss distribution approach model
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BOC
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Basel Oversight Committee
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LEDR
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Loss Event Data Repository
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CAP
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Capital adequacy process
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LTD
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Long term debt
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CCAR
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Comprehensive Capital Analysis and Review
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MiFID
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Markets in Financial Instruments Directive
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CD
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Certificates of deposit
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MRAC
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Management Risk and Capital Committee
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CEO
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Chief Executive Officer
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MRC
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Model Risk Committee
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CET1
(1)
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Common equity tier 1
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MVG
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Model Validation Group
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CFO
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Chief Financial Officer
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NAV
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Net asset value
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CFP
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Contingency funding plan
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NIR
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Net interest revenue
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CFTC
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Commodity Futures Trading Commission
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NSFR
(1)
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Net stable funding ratio
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CIS
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Corporate Information Security
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NYSE
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New York Stock Exchange
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CLO
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Collateralized loan obligations
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OCI
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Other comprehensive income (loss)
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COSO
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Committee of Sponsoring Organizations of the Treadway Commission
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OFAC
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Office of Foreign Assets Control
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ORM
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Operational risk management
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CRE
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Commercial real estate
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OTTI
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Other-than-temporary-impairment
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CRO
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Chief Risk Officer
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Parent Company
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State Street Corporation
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CRPC
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Credit Risk & Policy Committee
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PCA
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Prompt corrective action
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CVA
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Credit valuation adjustment
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PD
(1)
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Probability-of-default
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DIF
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Deposit Insurance Fund
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PRA
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Prudential Regulatory Authority (U.K.)
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Dodd-Frank Act
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Dodd-Frank Wall Street Reform and Consumer Protection Act
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P&L
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Profit-and-loss
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RC
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Risk Committee
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E&A Committee
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Examining and Audit Committee
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RCSA
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Risk and control self-assessment
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EAD
(1)
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Exposure-at-default
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RWA
(1)
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Risk-weighted assets
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ECB
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European Central Bank
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SEC
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Securities and Exchange Commission
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ECC
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Executive Compensation Committee
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SERP
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Supplemental executive retirement plans
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EMIR
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European Market Infrastructure Resolution
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SIFI
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Systemically important financial institutions
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EPS
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Earnings per share
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SLR
(1)
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Supplementary leverage ratio
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ERISA
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Employee Retirement Income Security Act
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SOX
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Sarbanes-Oxley Act of 2002
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ERM
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Enterprise Risk Management
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SSGA
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State Street Global Advisors
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ETF
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Exchange-Traded Fund
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SSGA FM
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State Street Global Advisors Funds Management, Inc.
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EVE
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Economic value of equity
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FASB
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Financial Accounting Standards Board
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SSGA Ltd.
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State Street Global Advisors Limited
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FCA
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Financial Conduct Authority
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State Street Bank
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State Street Bank and Trust Company
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FDIC
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Federal Deposit Insurance Corporation
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TLAC
(1)
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Total loss-absorbing capacity
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FDICIA
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Federal Deposit Insurance Corporation Improvement Act of 1991
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TMRC
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Trading and Markets Risk Committee
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TORC
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Technology and Operational Risk Committee
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Federal Reserve
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Board of Governors of the Federal Reserve System
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UCITS
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Undertakings for Collective Investments in Transferable Securities
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FFELP
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Federal Family Education Loan Program
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UOM
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Unit of measure
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FHLB
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Federal Home Loan Bank of Boston
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VaR
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Value-at-risk
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FRB
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Federal Reserve Bank of Boston
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VIE
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Variable interest entity
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•
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Method 1: Assesses systemic importance based upon five equally-weighted components: size, interconnectedness, complexity, cross-jurisdictional activity and substitutability
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•
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Method 2: Alters the calculation from Method 1 by factoring in a wholesale funding score in place of substitutability and applying a 2x multiplier to the sum of the five components
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•
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the financial strength and continuing viability of the counterparties with which we or our clients do business and to which we have
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•
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increases in the volatility of, or declines in the level of, our net interest revenue, 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;
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•
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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;
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•
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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;
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•
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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;
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•
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our ability to attract deposits and other low-cost, short-term funding, our ability to manage levels of such deposits and the relative portion of our deposits that are determined to be operational under regulatory guidelines and our ability to deploy deposits in a profitable manner consistent with our liquidity requirements and risk profile;
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•
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the manner and timing with which the Federal Reserve and other U.S. and foreign regulators implement changes to the regulatory framework applicable to our operations, including implementation of the Dodd-Frank Act, the Basel III final rule and European legislation (such as the Alternative Investment Fund Managers Directive, Undertakings for Collective Investment in Transferable Securities Directives and Markets in Financial Instruments Directive II); among other consequences, these regulatory changes impact the levels of regulatory capital we must maintain, acceptable levels of credit exposure to third parties, margin requirements applicable to derivatives, and
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adverse changes in the regulatory ratios that we are required or will be required to meet, whether arising under the Dodd-Frank Act or the Basel III final rule, 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 the calculation of our capital ratios that cause changes in those ratios as they are measured from period to period;
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•
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increasing requirements to obtain the prior approval of the Federal Reserve or our other U.S. and non-U.S. regulators for the use, allocation or distribution of our capital or other specific capital actions or programs, including acquisitions, dividends and stock purchases, without which our growth plans, distributions to shareholders, share repurchase programs or other capital initiatives may be restricted;
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•
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changes in law or regulation, or the enforcement of 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;
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•
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financial market disruptions or economic recession, whether in the U.S., Europe, Asia or other regions;
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•
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our ability to develop and execute State Street Beacon, our multi-year program to create cost efficiencies through changes to our operations and to further digitize our service delivery to our clients, any failure of which, in whole or in part, may among other things, reduce our competitive position, diminish the cost-effectiveness of our systems and processes or provide an
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•
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our ability to promote a strong culture of risk management, operating controls, compliance oversight and governance that meet our expectations and those of our clients and our regulators;
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•
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the results of our review of the manner in which we invoiced certain client expenses, including the amount of expenses determined to be reimbursable, as well as potential consequences of such review including with respect to our client relationships and potential investigations by regulators;
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the results of, and costs associated with, governmental or regulatory inquiries and investigations, litigation and similar claims, disputes, or proceedings;
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•
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the potential for losses arising from our investments in sponsored investment funds;
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•
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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 liquidity or valuation of assets underlying those pools;
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•
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our ability to anticipate and manage the level and timing of redemptions and withdrawals from our collateral pools and other collective investment products;
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•
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the credit agency ratings of our debt and depository obligations and investor and client perceptions of our financial strength;
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•
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adverse publicity, whether specific to State Street or regarding other industry participants or industry-wide factors, or other reputational harm;
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•
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our ability to control operational risks, data security breach risks and outsourcing risks, 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;
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•
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our ability to expand our use of technology to enhance the efficiency, accuracy and reliability of our operations and our dependencies on information technology and our ability to control related risks, including cyber-crime and other threats to our information technology infrastructure and systems and their effective operation both independently and with external systems, and complexities and costs of protecting the security of our systems and data;
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•
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our ability to grow revenue, manage expenses, attract and retain highly skilled people and raise the capital necessary to achieve our business goals and comply with regulatory requirements and expectations;
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changes or 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;
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changes or potential changes in the amount of compensation we receive from clients for our services, and the mix of services provided by us that clients choose;
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our 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;
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the risks that our 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 negative synergies or liabilities 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;
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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;
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•
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changes in accounting standards and practices; and
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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.
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•
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Short-term credit.
The degree of client demand for short-term credit tends to increase during periods of market turbulence, which may expose us to further counterparty-related risks. For example, investors in collective investment vehicles for which we act as custodian may experience significant redemption activity due to adverse market or economic news. Our relationship with our clients and the nature of the settlement process for some types of payments may result in the extension of short-term credit in such circumstances. For some types of clients, we provide credit to allow them to leverage their portfolios, which may expose
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•
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Industry and country risks.
In addition to our exposure to financial institutions, we are from time to time exposed to concentrated credit risk at an industry or country level. This concentration risk also applies to groups of unrelated counterparties that may have similar investment strategies involving one or more particular industries, regions, or other characteristics. These unrelated counterparties may concurrently experience adverse effects to their performance, liquidity or reputation due to events or other factors affecting such investment strategies. Though potentially not material individually (relative to any one such counterparty), our aggregated credit exposures to such a group of counterparties could expose us to a single market or political event or a correlated set of events.
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•
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Unavailability of netting
. We are generally not able to net exposures across counterparties that are affiliated entities and may not be able in all circumstances to net exposures to the same legal entity across multiple products. As a consequence, we may incur a loss in relation to one entity or product even though our exposure to an entity's affiliates or across product types is over-collateralized.
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•
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Subcustodian risks
. Our use of unaffiliated subcustodians exposes us to credit risk, in addition to other risks, such as operational risk, dependencies on credit extensions and risks of the legal systems of the jurisdictions in which the subcustodians operate, each of which risks may be material. These risks are amplified due to changing regulatory requirements with respect to our financial exposures in the event those subcustodians are unable to return a client’s assets, including, in some cases, requirements that we be responsible for resulting losses suffered by our clients.
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•
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Settlement risks
. We are exposed to settlement risks, particularly in our payments and foreign exchange activities. Those activities may lead to losses in the event of a counterparty breach, failure to provide credit extensions or an operational error. Due to our membership in several industry clearing or settlement exchanges, we may be required to guarantee obligations and liabilities, or provide financial support, in the event that other members do not honor their obligations
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•
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Securities lending and repurchase agreement indemnification
. On behalf of clients enrolled in our securities lending program, we lend securities to banks, broker/dealers and other institutions. In the event of a failure of the borrower to return such securities, we typically agree to indemnify our clients for the amount by which the fair market value of those securities exceeds the proceeds of the disposition of the collateral recalled from the borrower in connection with such transaction. Borrowers are generally required to provide collateral equal to a contractually-agreed percentage equal to or in excess of the fair market value of the loaned securities. As the fair market value of the loaned securities changes, additional collateral is provided by the borrower or collateral is returned to the borrower. In addition, our clients often purchase securities or other financial instruments from financial counterparties, including broker/dealers, under repurchase arrangements, frequently as a method of reinvesting the cash collateral they receive from lending their securities. Under these arrangements, the counterparty is obligated to repurchase these securities or financial instruments from the client at the same price (plus an agreed rate of return) at some point in the future. The value of the collateral is intended to exceed the counterparty's payment obligation, and collateral is adjusted daily to account for shortfall under, or excess over, the agreed-upon collateralization level. As with the securities lending program, we agree to indemnify our clients from any loss that would arise on a default by the counterparty under these repurchase arrangements if the proceeds from the disposition of the securities or other financial assets held as collateral are less than the amount of the repayment obligation by the client's counterparty. In such instances of counterparty default, for both securities lending and repurchase agreements, we, rather than our client, are exposed to the risks associated with collateral value.
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•
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Stable value arrangements
. We provide benefit-responsive contracts, known as wraps, to defined contribution plans that offer a stable value option to their participants. During the financial crisis, the book value of obligations under many of these contracts exceeded the market value of the underlying portfolio holdings. Concerns regarding the portfolio of investments protected by such contracts, or regarding the investment manager overseeing such an investment option, may result in redemption demands from stable value products covered by benefit-responsive contracts at a time when the portfolio's market value is less than its book value, potentially exposing us to risk of loss.
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•
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U.S. Municipal obligations remarketing credit facilities
. We provide credit facilities in connection with the remarketing of U.S. municipal obligations, potentially exposing us to credit exposure to the municipalities issuing such bonds and to their increased liquidity demands. In the current economic environment, where municipalities are subject to increased investor concern, the risks associated with such businesses increase.
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•
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Senior secured bank loans.
In recent years, we have increased our investment in senior secured bank loans. We invest in these loans to non-investment grade borrowers through participation in loan syndications in the non-investment grade lending market. We rate these loans as "speculative" under our internal risk-rating framework, and these loans have significant exposure to credit losses relative to higher-rated loans. We are therefore at a higher risk of default with respect to these investments relative to other of our investments activities. In addition, unlike other financial institutions that may have an active role in managing individual loan compliance, our investment in these loans is generally as a passive investor with limited control. As our investment in these loans has increased, we have also experienced increases in our provision for loan losses. As this portfolio grows and becomes more seasoned, our allowance for loan losses related to these loans may increase through additional provisions for credit losses.
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•
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Asset class concentration
. Our investment portfolio continues to have significant concentrations in several classes of securities, including agency residential mortgage-backed securities, commercial mortgage-backed securities and other asset-backed securities, and securities with concentrated exposure to consumers. These classes and types of securities experienced significant liquidity, valuation and credit quality deterioration during the financial crisis that began in mid-2007. We also hold non-U.S. mortgage-backed and asset-backed securities with exposures to European countries, whose sovereign-debt markets have experienced increased stress since
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•
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Effects of market conditions
. If market conditions deteriorate, our investment portfolio could experience a decline in liquidity and market value, regardless of our credit view of our portfolio holdings. For example, we recorded significant losses not related to credit in connection with the consolidation of our off-balance sheet asset-backed commercial paper conduits in 2009 and the repositioning of our investment portfolio in 2010. In addition, in general, deterioration in credit quality, or changes in management's expectations regarding repayment timing or in management's investment intent to hold securities to maturity, in each case with respect to our portfolio holdings, could result in other-than-temporary impairment. Similarly, if a material portion of our investment portfolio were to experience credit deterioration our capital ratios as calculated pursuant to the Basel III final rule could be adversely affected. This risk is greater with portfolios of investment securities than with holdings of U.S. Treasury securities.
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•
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Effects of interest rates
. Our investment portfolio is further subject to changes in both U.S. and non-U.S. (primarily in Europe) interest rates, and could be negatively affected by changes in those rates, whether or not expected, particularly by a quicker-than-anticipated increase in interest rates or by monetary policy that results in persistently low or negative rates of interest. This has been the case, for example, with respect to ECB monetary policy, including negative interest rates in some jurisdictions, with associated negative effects on our net interest revenue and net interest margin. The effect on our net interest revenue has been exacerbated by the effects of the strong U.S. dollar relative to other currencies, particularly the Euro. If ECB monetary policy continues to pressure European interest rates
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•
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meet clients' demands for return of their deposits;
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•
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extend credit to our clients in connection with our custody business; and
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•
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fund the pool of long- and intermediate-term assets that are included in the investment securities carried in our consolidated statement of condition.
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Name
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Age
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Position
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Joseph L. Hooley
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58
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|
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Chairman and Chief Executive Officer
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Michael W. Bell
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52
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|
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Executive Vice President and Chief Financial Officer
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Jeffrey N. Carp
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59
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Executive Vice President, Chief Legal Officer and Secretary
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Jeffrey D. Conway
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50
|
|
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Executive Vice President
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Gunjan Kedia
|
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45
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|
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Executive Vice President
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Andrew Kuritzkes
|
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55
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|
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Executive Vice President and Chief Risk Officer
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Sean P. Newth
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40
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|
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Senior Vice President, Chief Accounting Officer and Controller
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Ronald P. O'Hanley
|
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59
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Chief Executive Officer and President of State Street Global Advisors
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James S. Phalen
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65
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Vice Chairman
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Alison A. Quirk
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54
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|
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Executive Vice President
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Michael F. Rogers
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58
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President and Chief Operating Officer
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Wai-Kwong Seck
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60
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Executive Vice President
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ITEM 5.
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MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
(Dollars in millions, except per share amounts; shares in thousands)
|
|
Total Number of Shares Purchased Under Publicly Announced Program
|
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Average Price Paid Per Share
|
|
Approximate Dollar Value of Shares Purchased Under Publicly Announced Program
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Approximate Dollar Value of Shares Yet to be Purchased Under Publicly Announced Program
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|||||||
Period:
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|
|
|
|
|
|
|
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|||||||
October 1 - October 31, 2015
|
|
666
|
|
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$
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69.14
|
|
|
$
|
46
|
|
|
$
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1,084
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|
November 1 - November 30, 2015
|
|
2,355
|
|
|
71.80
|
|
|
169
|
|
|
915
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December 1 - December 31, 2015
|
|
1,948
|
|
|
69.23
|
|
|
135
|
|
|
780
|
|
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Total
|
|
4,969
|
|
|
$
|
70.44
|
|
|
$
|
350
|
|
|
$
|
780
|
|
|
2010
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
||||||||||||
State Street Corporation
|
$
|
100
|
|
|
$
|
89
|
|
|
$
|
106
|
|
|
$
|
167
|
|
|
$
|
182
|
|
|
$
|
157
|
|
S&P 500 Index
|
100
|
|
|
102
|
|
|
118
|
|
|
157
|
|
|
178
|
|
|
181
|
|
||||||
S&P Financial Index
|
100
|
|
|
83
|
|
|
107
|
|
|
145
|
|
|
167
|
|
|
164
|
|
||||||
KBW Bank Index
|
100
|
|
|
77
|
|
|
101
|
|
|
139
|
|
|
152
|
|
|
153
|
|
FOR THE YEARS ENDED DECEMBER 31:
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2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
||||||||||
Total fee revenue
(1)
|
$
|
8,278
|
|
|
$
|
8,010
|
|
|
$
|
7,570
|
|
|
$
|
7,069
|
|
|
$
|
7,176
|
|
Net interest revenue
|
2,088
|
|
|
2,260
|
|
|
2,303
|
|
|
2,538
|
|
|
2,333
|
|
|||||
Gains (losses) related to investment securities, net
(2)
|
(6
|
)
|
|
4
|
|
|
(9
|
)
|
|
23
|
|
|
67
|
|
|||||
Total revenue
(1)
|
10,360
|
|
|
10,274
|
|
|
9,864
|
|
|
9,630
|
|
|
9,576
|
|
|||||
Provision for loan losses
|
12
|
|
|
10
|
|
|
6
|
|
|
(3
|
)
|
|
—
|
|
|||||
Total expenses
|
8,050
|
|
|
7,827
|
|
|
7,192
|
|
|
6,886
|
|
|
7,058
|
|
|||||
Income before income tax expense
(1)
|
2,298
|
|
|
2,437
|
|
|
2,666
|
|
|
2,747
|
|
|
2,518
|
|
|||||
Income tax expense
(1)(3)
|
318
|
|
|
415
|
|
|
616
|
|
|
700
|
|
|
611
|
|
|||||
Net income
(1)
|
$
|
1,980
|
|
|
$
|
2,022
|
|
|
$
|
2,050
|
|
|
$
|
2,047
|
|
|
$
|
1,907
|
|
Adjustments to net income
(4)
|
(132
|
)
|
|
(64
|
)
|
|
(34
|
)
|
|
(42
|
)
|
|
(38
|
)
|
|||||
Net income available to common shareholders
(1)
|
$
|
1,848
|
|
|
$
|
1,958
|
|
|
$
|
2,016
|
|
|
$
|
2,005
|
|
|
$
|
1,869
|
|
PER COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per common share
(1)
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
4.53
|
|
|
$
|
4.62
|
|
|
$
|
4.52
|
|
|
$
|
4.23
|
|
|
$
|
3.79
|
|
Diluted
|
4.47
|
|
|
4.53
|
|
|
4.43
|
|
|
4.17
|
|
|
3.77
|
|
|||||
Cash dividends declared
|
1.32
|
|
|
1.16
|
|
|
1.04
|
|
|
.96
|
|
|
.72
|
|
|||||
Closing market price (at year end)
|
$
|
66.36
|
|
|
$
|
78.50
|
|
|
$
|
73.39
|
|
|
$
|
47.01
|
|
|
$
|
40.31
|
|
AT YEAR END:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities
|
$
|
100,022
|
|
|
$
|
112,636
|
|
|
$
|
116,914
|
|
|
$
|
121,061
|
|
|
$
|
109,153
|
|
Average total interest-earning assets
|
220,456
|
|
|
209,054
|
|
|
178,101
|
|
|
167,615
|
|
|
147,657
|
|
|||||
Total assets
|
245,192
|
|
|
274,119
|
|
|
243,291
|
|
|
222,582
|
|
|
216,827
|
|
|||||
Deposits
|
191,627
|
|
|
209,040
|
|
|
182,268
|
|
|
164,181
|
|
|
157,287
|
|
|||||
Long-term debt
|
11,534
|
|
|
10,042
|
|
|
9,699
|
|
|
7,429
|
|
|
8,131
|
|
|||||
Total shareholders' equity
(1)
|
21,103
|
|
|
21,328
|
|
|
20,248
|
|
|
20,824
|
|
|
19,366
|
|
|||||
Assets under custody and administration (in billions)
|
27,508
|
|
|
28,188
|
|
|
27,427
|
|
|
24,371
|
|
|
21,807
|
|
|||||
Assets under management (in billions)
|
2,245
|
|
|
2,448
|
|
|
2,345
|
|
|
2,086
|
|
|
1,845
|
|
|||||
Number of employees
|
32,356
|
|
|
29,970
|
|
|
29,430
|
|
|
29,650
|
|
|
29,740
|
|
|||||
RATIOS:
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average common shareholders' equity
(1)
|
9.8
|
%
|
|
9.8
|
%
|
|
10.2
|
%
|
|
10.3
|
%
|
|
9.9
|
%
|
|||||
Return on average assets
(1)
|
0.79
|
|
|
0.85
|
|
|
0.99
|
|
|
1.06
|
|
|
1.09
|
|
|||||
Common dividend payout
(1)
|
28.99
|
|
|
25.03
|
|
|
22.89
|
|
|
22.57
|
|
|
18.96
|
|
|||||
Average common equity to average total assets
(1)
|
7.5
|
|
|
8.4
|
|
|
9.6
|
|
|
9.7
|
|
|
11.2
|
|
|||||
Net interest margin, fully taxable-equivalent basis
|
1.03
|
|
|
1.16
|
|
|
1.37
|
|
|
1.59
|
|
|
1.67
|
|
|||||
Common equity tier 1 ratio
(1)(5)
|
12.5
|
|
|
12.4
|
|
|
15.3
|
|
|
17.1
|
|
|
16.8
|
|
|||||
Tier 1 capital ratio
(1)(5)
|
15.3
|
|
|
14.5
|
|
|
17.1
|
|
|
19.1
|
|
|
18.8
|
|
|||||
Total capital ratio
(1)(5)
|
17.4
|
|
|
16.4
|
|
|
19.5
|
|
|
20.6
|
|
|
20.5
|
|
|||||
Tier 1 leverage ratio
(1)(5)
|
6.9
|
|
|
6.3
|
|
|
6.8
|
|
|
7.1
|
|
|
7.3
|
|
|||||
Supplementary leverage ratio
(1)(6)
|
6.2
|
|
|
5.6
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
ITEM 7.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
TABLE 1: OVERVIEW OF FINANCIAL RESULTS
|
|||||||||||
|
|
|
|
|
|
||||||
Years Ended December 31,
|
2015
|
|
2014
|
|
2013
|
||||||
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
||||||
Total fee revenue
(1)
|
$
|
8,278
|
|
|
$
|
8,010
|
|
|
$
|
7,570
|
|
Net interest revenue
|
2,088
|
|
|
2,260
|
|
|
2,303
|
|
|||
Gains (losses) related to investment securities, net
|
(6
|
)
|
|
4
|
|
|
(9
|
)
|
|||
Total revenue
(1)
|
10,360
|
|
|
10,274
|
|
|
9,864
|
|
|||
Provision for loan losses
|
12
|
|
|
10
|
|
|
6
|
|
|||
Total expenses
|
8,050
|
|
|
7,827
|
|
|
7,192
|
|
|||
Income before income tax expense
(1)
|
2,298
|
|
|
2,437
|
|
|
2,666
|
|
|||
Income tax expense
(1)
|
318
|
|
|
415
|
|
|
616
|
|
|||
Net income
(1)
|
$
|
1,980
|
|
|
$
|
2,022
|
|
|
$
|
2,050
|
|
Adjustments to net income:
|
|
|
|
|
|
||||||
Dividends on preferred stock
(2)
|
(130
|
)
|
|
(61
|
)
|
|
(26
|
)
|
|||
Earnings allocated to participating securities
(3)
|
(2
|
)
|
|
(3
|
)
|
|
(8
|
)
|
|||
Net income available to common shareholders
(1)
|
$
|
1,848
|
|
|
$
|
1,958
|
|
|
$
|
2,016
|
|
Earnings per common share
(1)
:
|
|
|
|
|
|
||||||
Basic
|
$
|
4.53
|
|
|
$
|
4.62
|
|
|
$
|
4.52
|
|
Diluted
|
4.47
|
|
|
4.53
|
|
|
4.43
|
|
|||
Average common shares outstanding (in thousands):
|
|
|
|
|
|
||||||
Basic
|
407,856
|
|
|
424,223
|
|
|
446,245
|
|
|||
Diluted
|
413,638
|
|
|
432,007
|
|
|
455,155
|
|
|||
Cash dividends declared per common share
|
$
|
1.32
|
|
|
$
|
1.16
|
|
|
$
|
1.04
|
|
Return on average common equity
(1)
|
9.8
|
%
|
|
9.8
|
%
|
|
10.2
|
%
|
|
|
|
•
|
In October 2015, we announced the next phase of our multi-year transformation program, which we refer to as State Street Beacon. We expect to deliver cost efficiencies through changes in our operational processes, and further digitize our processes and interfaces with clients. We expect State Street Beacon, which includes the targeted staff reductions that we announced with our third quarter 2015 results, to generate approximately $550 million in estimated annualized pre-tax expense savings over the next five years, including approximately $75 million in 2016. The full effect of the savings generated each year will be realized the following year. To implement State Street Beacon, we expect to incur aggregate pre-tax restructuring costs of approximately $300 million to $400 million over the five- year period ending December 31, 2020. Estimated pre-tax expense savings relate only to State Street Beacon, include the effects of the targeted staff reductions announced as part of our third quarter of 2015 financial results, and are based on projected improvement from our full-year 2015 operating-basis expenses, all else equal. Actual expenses may increase or decrease in the future due to other factors.
|
•
|
In
2015
, we secured new asset servicing mandates of
$797.5 billion
; of that total, approximately
$444.9 billion
was installed prior to
December 31, 2015
, with the remaining balance expected to be installed in
2016
or later.
|
•
|
Net outflows of AUM totaled
$151 billion
, which does not include
$13 billion
of new asset management business which was awarded to SSGA but not installed as of
December 31, 2015
.
|
•
|
During
2015
, we recorded legal charges of $415 million or $0.76 per share. Of that, $400 million was to increase our legal accrual associated with our indirect foreign exchange business prior to 2010. The total legal accrual associated with this matter as of the time of filing this Form 10-K is $565 million. The legal accrual is further discussed under "Legal and Regulatory Matters" in Note
13
to the consolidated financial statements included under Item 8 of this Form 10-K.
|
•
|
During
2015
, we declared common stock dividends of
$1.32
per share, totaling approximately
$536 million
.
|
•
|
During
2015
, we purchased approximately
20.5 million
shares of our common stock at an average per-share cost of
$74.07
and an aggregate cost of approximately
$1.52 billion
. We have approximately
$780 million
remaining under our current
$1.8 billion
program approved by our Board in
March 2015
.
|
•
|
During the fourth quarter of 2015, we identified and corrected an error that originated in prior periods relating to certain expenses billed to certain of our asset servicing clients, which misstated our servicing revenue. This error misstated our servicing fee revenue. Based on the results of our analysis, we determined that the error was immaterial to each of the prior reporting periods affected. However, we concluded that correcting the error in the year ended December 31, 2015 would materially misstate the consolidated results of operations for that period. Accordingly, our financial results for all prior periods presented herein have been revised for the correction of this error. Refer to "Investment Servicing" under "Line of Business Information" within this Management's Discussion and Analysis, and Note
1
to the consolidated financial statements included under Item 8 of this Form 10-K.
|
•
|
Total revenue in
2015
increased
1%
compared to
2014
, primarily due to a
3%
increase in total fee revenue, partially offset by a decline in net interest revenue.
|
•
|
Total revenue in
2015
included a
$165 million
pre-tax gain from the sale of commercial real estate in the third-quarter of 2015 and final paydown in the fourth-quarter of a commercial real estate loan, both acquired as a result of the Lehman Brothers bankruptcy.
|
•
|
In
2015
, we recorded a $
61 million
reduction to our income tax expense related to an Italian deferred tax liability as a consequence of our European legal entity restructuring activities.
|
•
|
Servicing fee revenue increased
1%
in
2015
compared to
2014
, primarily due to net new business, partially offset by
$203 million
due to the effect of the stronger U.S. dollar.
|
•
|
Management fee revenue decreased
3%
in
2015
compared to
2014
, primarily due to
$43 million
from the effect of the stronger U.S. dollar, partially offset by net new business.
|
•
|
Total expenses in
2015
increased
3%
compared to
2014
, primarily driven by an increase in expenses due to
$415 million
in legal accruals, as well as higher information systems and communications costs to support new business and other expenses from professional services, partially offset by a $108 million decrease in acquisition and restructuring costs and
$251 million
from the effect of the stronger U.S. dollar.
|
•
|
Return on average common shareholders' equity remained flat at
9.8%
in
2015
compared to 2014.
|
TABLE 2: TOTAL REVENUE
|
|||||||||||||||||
|
Years Ended December 31,
|
|
% Change 2015 vs. 2014
|
|
% Change 2014 vs. 2013
|
||||||||||||
(Dollars in millions)
|
2015
|
|
2014
|
|
2013
|
|
|
||||||||||
Fee revenue:
|
|
|
|
|
|
|
|
|
|
||||||||
Servicing fees
(1)
|
$
|
5,153
|
|
|
$
|
5,108
|
|
|
$
|
4,799
|
|
|
1
|
%
|
|
6
|
%
|
Management fees
|
1,174
|
|
|
1,207
|
|
|
1,106
|
|
|
(3
|
)
|
|
9
|
|
|||
Trading services:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange trading
|
690
|
|
|
607
|
|
|
589
|
|
|
14
|
|
|
3
|
|
|||
Brokerage and other trading services
|
456
|
|
|
477
|
|
|
505
|
|
|
(4
|
)
|
|
(6
|
)
|
|||
Total trading services
|
1,146
|
|
|
1,084
|
|
|
1,094
|
|
|
6
|
|
|
(1
|
)
|
|||
Securities finance
|
496
|
|
|
437
|
|
|
359
|
|
|
14
|
|
|
22
|
|
|||
Processing fees and other
|
309
|
|
|
174
|
|
|
212
|
|
|
78
|
|
|
(18
|
)
|
|||
Total fee revenue
(1)
|
8,278
|
|
|
8,010
|
|
|
7,570
|
|
|
3
|
|
|
6
|
|
|||
Net interest revenue:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest revenue
|
2,488
|
|
|
2,652
|
|
|
2,714
|
|
|
(6
|
)
|
|
(2
|
)
|
|||
Interest expense
|
400
|
|
|
392
|
|
|
411
|
|
|
2
|
|
|
(5
|
)
|
|||
Net interest revenue
|
2,088
|
|
|
2,260
|
|
|
2,303
|
|
|
(8
|
)
|
|
(2
|
)
|
|||
Gains (losses) related to investment securities, net
|
(6
|
)
|
|
4
|
|
|
(9
|
)
|
|
|
|
|
|||||
Total revenue
(1)
|
$
|
10,360
|
|
|
$
|
10,274
|
|
|
$
|
9,864
|
|
|
1
|
|
|
4
|
|
|
|
|
•
|
A
10%
increase or decrease in worldwide equity valuations, over the relevant periods for which our servicing and management fees are calculated, would result in a corresponding change in our total revenue of approximately
2%
; and
|
•
|
A
10%
increase or decrease in worldwide fixed income security valuations, over the relevant periods for which our servicing and management fees are calculated, would result in a corresponding change in our total revenue of approximately
1%
.
|
TABLE 3: DAILY, MONTH-END AND YEAR-END INDICES
|
||||||||||||||||||||||||||
|
Daily Averages of Indices
|
|
Averages of Month-End Indices
|
|
Year-End Indices
|
|||||||||||||||||||||
|
Twelve Months Ended December 31,
|
|
Twelve Months Ended December 31,
|
|
As of December 31,
|
|||||||||||||||||||||
|
2015
|
|
2014
|
|
% Change
|
|
2015
|
|
2014
|
|
% Change
|
|
2015
|
|
2014
|
|
% Change
|
|||||||||
S&P 500
®
|
2,061
|
|
|
1,931
|
|
|
7
|
%
|
|
2,052
|
|
|
1,944
|
|
|
6
|
%
|
|
2,044
|
|
|
2,059
|
|
|
(1
|
)%
|
NASDAQ
®
|
4,946
|
|
|
4,375
|
|
|
13
|
|
|
4,933
|
|
|
4,415
|
|
|
12
|
|
|
5,007
|
|
|
4,736
|
|
|
6
|
|
MSCI EAFE
®
|
1,809
|
|
|
1,888
|
|
|
(4
|
)
|
|
1,806
|
|
|
1,891
|
|
|
(4
|
)
|
|
1,716
|
|
|
1,775
|
|
|
(3
|
)
|
MSCI Emerging
|
918
|
|
|
1,008
|
|
|
(9
|
)
|
|
910
|
|
|
1,009
|
|
|
(10
|
)
|
|
794
|
|
|
956
|
|
|
(17
|
)
|
TABLE 4: AVERAGE BALANCES AND INTEREST RATES - FULLY TAXABLE-EQUIVALENT BASIS
|
||||||||||||||||||||||||||||||||
|
Years Ended December 31,
|
|||||||||||||||||||||||||||||||
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||||||||||||||
(Dollars in millions; fully taxable-equivalent basis)
|
Average
Balance
|
|
Interest
Revenue/
Expense
|
|
Rate
|
|
Average
Balance
|
|
Interest
Revenue/
Expense
|
|
Rate
|
|
Average
Balance |
|
Interest
Revenue/ Expense |
|
Rate
|
|||||||||||||||
Interest-bearing deposits with banks
|
$
|
69,753
|
|
|
$
|
208
|
|
|
.30
|
%
|
|
$
|
55,353
|
|
|
$
|
196
|
|
|
.35
|
%
|
|
$
|
28,946
|
|
|
$
|
125
|
|
|
.43
|
%
|
Securities purchased under resale agreements
|
3,233
|
|
|
62
|
|
|
1.92
|
|
|
4,077
|
|
|
38
|
|
|
.94
|
|
|
5,766
|
|
|
45
|
|
|
.77
|
|
||||||
Trading account assets
|
1,194
|
|
|
1
|
|
|
.08
|
|
|
959
|
|
|
1
|
|
|
.13
|
|
|
748
|
|
|
—
|
|
|
—
|
|
||||||
Investment securities
|
105,611
|
|
|
2,069
|
|
|
1.96
|
|
|
116,809
|
|
|
2,317
|
|
|
1.98
|
|
|
117,696
|
|
|
2,429
|
|
|
2.06
|
|
||||||
Loans and leases
|
17,948
|
|
|
311
|
|
|
1.73
|
|
|
15,912
|
|
|
266
|
|
|
1.67
|
|
|
13,781
|
|
|
253
|
|
|
1.84
|
|
||||||
Other interest-earning assets
|
22,717
|
|
|
10
|
|
|
.04
|
|
|
15,944
|
|
|
7
|
|
|
.05
|
|
|
11,164
|
|
|
4
|
|
|
.04
|
|
||||||
Average total interest-earning assets
|
$
|
220,456
|
|
|
$
|
2,661
|
|
|
1.21
|
|
|
$
|
209,054
|
|
|
$
|
2,825
|
|
|
1.36
|
|
|
$
|
178,101
|
|
|
$
|
2,856
|
|
|
1.60
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S.
|
$
|
30,819
|
|
|
$
|
51
|
|
|
.16
|
%
|
|
$
|
21,296
|
|
|
$
|
21
|
|
|
.10
|
%
|
|
$
|
8,862
|
|
|
$
|
10
|
|
|
.12
|
%
|
Non-U.S.
|
102,491
|
|
|
46
|
|
|
.05
|
|
|
109,003
|
|
|
78
|
|
|
.07
|
|
|
100,391
|
|
|
83
|
|
|
.08
|
|
||||||
Securities sold under repurchase agreements
|
8,875
|
|
|
1
|
|
|
.01
|
|
|
8,817
|
|
|
—
|
|
|
—
|
|
|
8,436
|
|
|
1
|
|
|
.01
|
|
||||||
Federal funds purchased
|
21
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
298
|
|
|
—
|
|
|
—
|
|
||||||
Other short-term borrowings
|
3,826
|
|
|
6
|
|
|
.15
|
|
|
4,177
|
|
|
5
|
|
|
.12
|
|
|
3,785
|
|
|
59
|
|
|
1.57
|
|
||||||
Long-term debt
|
10,333
|
|
|
250
|
|
|
2.42
|
|
|
9,309
|
|
|
245
|
|
|
2.63
|
|
|
8,415
|
|
|
232
|
|
|
2.75
|
|
||||||
Other interest-bearing liabilities
|
6,471
|
|
|
46
|
|
|
.71
|
|
|
7,351
|
|
|
43
|
|
|
.59
|
|
|
6,457
|
|
|
26
|
|
|
.40
|
|
||||||
Average total interest-bearing liabilities
|
$
|
162,836
|
|
|
$
|
400
|
|
|
.25
|
|
|
$
|
159,973
|
|
|
$
|
392
|
|
|
.25
|
|
|
$
|
136,644
|
|
|
$
|
411
|
|
|
.30
|
|
Interest-rate spread
|
|
|
|
|
0.96
|
%
|
|
|
|
|
|
1.11
|
%
|
|
|
|
|
|
1.30
|
%
|
||||||||||||
Net interest revenue—fully taxable-equivalent basis
|
|
|
$
|
2,261
|
|
|
|
|
|
|
$
|
2,433
|
|
|
|
|
|
|
$
|
2,445
|
|
|
|
|||||||||
Net interest margin—fully taxable-equivalent basis
|
|
|
|
|
1.03
|
%
|
|
|
|
|
|
1.16
|
%
|
|
|
|
|
|
1.37
|
%
|
||||||||||||
Tax-equivalent adjustment
|
|
|
(173
|
)
|
|
|
|
|
|
(173
|
)
|
|
|
|
|
|
(142
|
)
|
|
|
||||||||||||
Net interest revenue—GAAP basis
|
|
|
$
|
2,088
|
|
|
|
|
|
|
$
|
2,260
|
|
|
|
|
|
|
$
|
2,303
|
|
|
|
TABLE 5: TOTAL DISCOUNT ACCRETION IN INTEREST REVENUE
|
|||
(in millions)
|
Discount Accretion in Interest Revenue
|
||
Years Ending:
|
|||
2009
|
$
|
621
|
|
2010
|
712
|
|
|
2011
|
220
|
|
|
2012
|
215
|
|
|
2013
|
137
|
|
|
2014
|
119
|
|
|
2015
|
98
|
|
|
Total Discount Accretion
|
$
|
2,122
|
|
TABLE 6: U.S. AND NON-U.S. SHORT-DURATION ADVANCES
|
|||||||||||
|
Years Ended December 31,
|
||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Average U.S. short-duration advances
|
$
|
2,351
|
|
|
$
|
2,355
|
|
|
$
|
2,356
|
|
Average non-U.S. short-duration advances
|
1,404
|
|
|
1,512
|
|
|
1,393
|
|
|||
Average total short-duration advances
|
$
|
3,755
|
|
|
$
|
3,867
|
|
|
$
|
3,749
|
|
Average short-duration advances to average loans and leases
|
21
|
%
|
|
24
|
%
|
|
27
|
%
|
TABLE 7: INVESTMENT SECURITIES GAINS (LOSSES), NET
|
|
|
|||||||||
|
Years Ended December 31,
|
||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Net realized gains (losses) from sales of available-for-sale securities
|
$
|
(5
|
)
|
|
$
|
15
|
|
|
$
|
14
|
|
Net impairment losses:
|
|
|
|
|
|
||||||
Gross losses from other-than-temporary impairment
|
(1
|
)
|
|
(1
|
)
|
|
(21
|
)
|
|||
Losses reclassified (from) to other comprehensive income
|
—
|
|
|
(10
|
)
|
|
(2
|
)
|
|||
Net impairment losses
(1)
|
(1
|
)
|
|
(11
|
)
|
|
(23
|
)
|
|||
Gains (losses) related to investment securities, net
|
$
|
(6
|
)
|
|
$
|
4
|
|
|
$
|
(9
|
)
|
|
|
|
|
|
|
||||||
(1)
Net impairment losses, recognized in our consolidated statement of income, were composed of the following:
|
|
|
|
|
|
||||||
Impairment associated with expected credit losses
|
$
|
—
|
|
|
$
|
(10
|
)
|
|
$
|
(11
|
)
|
Impairment associated with management’s intent to sell impaired securities prior to recovery in value
|
—
|
|
|
—
|
|
|
(6
|
)
|
|||
Impairment associated with adverse changes in timing of expected future cash flows
|
(1
|
)
|
|
(1
|
)
|
|
(6
|
)
|
|||
Net impairment losses
|
$
|
(1
|
)
|
|
$
|
(11
|
)
|
|
$
|
(23
|
)
|
TABLE 8: EXPENSES
|
|||||||||||||||||
|
Years Ended December 31,
|
|
% Change 2015 vs. 2014
|
|
% Change 2014 vs. 2013
|
||||||||||||
(Dollars in millions)
|
2015
|
|
2014
|
|
2013
|
|
|
||||||||||
Compensation and employee benefits
|
$
|
4,061
|
|
|
$
|
4,060
|
|
|
$
|
3,800
|
|
|
—
|
%
|
|
7
|
%
|
Information systems and communications
|
1,022
|
|
|
976
|
|
|
935
|
|
|
5
|
|
|
4
|
|
|||
Transaction processing services
|
793
|
|
|
784
|
|
|
733
|
|
|
1
|
|
|
7
|
|
|||
Occupancy
|
444
|
|
|
461
|
|
|
467
|
|
|
(4
|
)
|
|
(1
|
)
|
|||
Acquisition costs
|
20
|
|
|
58
|
|
|
76
|
|
|
(66
|
)
|
|
(24
|
)
|
|||
Restructuring charges, net
|
5
|
|
|
75
|
|
|
28
|
|
|
(93
|
)
|
|
168
|
|
|||
Other:
|
|
|
|
|
|
|
|
|
|
|
|||||||
Professional services
|
490
|
|
|
440
|
|
|
392
|
|
|
11
|
|
|
12
|
|
|||
Amortization of other intangible assets
|
197
|
|
|
222
|
|
|
214
|
|
|
(11
|
)
|
|
4
|
|
|||
Securities processing costs
|
79
|
|
|
68
|
|
|
52
|
|
|
16
|
|
|
31
|
|
|||
Regulatory fees and assessments
|
115
|
|
|
74
|
|
|
72
|
|
|
55
|
|
|
3
|
|
|||
Other
|
824
|
|
|
609
|
|
|
423
|
|
|
35
|
|
|
44
|
|
|||
Total other
|
1,705
|
|
|
1,413
|
|
|
1,153
|
|
|
21
|
|
|
23
|
|
|||
Total expenses
|
$
|
8,050
|
|
|
$
|
7,827
|
|
|
$
|
7,192
|
|
|
3
|
|
|
9
|
|
Number of employees at year-end
|
32,356
|
|
|
29,970
|
|
|
29,430
|
|
|
|
|
|
TABLE 9: INVESTMENT SERVICING LINE OF BUSINESS RESULTS
|
|
|||||||||||||||
|
|
|
|
|
|
|
% Change 2015 vs. 2014
|
% Change 2014 vs. 2013
|
||||||||
(Dollars in millions, except where otherwise noted)
|
2015
|
|
2014
|
|
2013
|
|
||||||||||
Servicing fees
(1)
|
$
|
5,153
|
|
|
$
|
5,108
|
|
|
$
|
4,799
|
|
|
1
|
%
|
6
|
%
|
Trading services
|
1,108
|
|
|
1,039
|
|
|
1,027
|
|
|
7
|
|
1
|
|
|||
Securities finance
|
496
|
|
|
437
|
|
|
359
|
|
|
14
|
|
22
|
|
|||
Processing fees and other
|
325
|
|
|
179
|
|
|
206
|
|
|
82
|
|
(13
|
)
|
|||
Total fee revenue
(1)
|
7,082
|
|
|
6,763
|
|
|
6,391
|
|
|
5
|
|
6
|
|
|||
Net interest revenue
|
2,086
|
|
|
2,245
|
|
|
2,278
|
|
|
(7
|
)
|
(1
|
)
|
|||
Gains (losses) related to investment securities, net
|
(6
|
)
|
|
4
|
|
|
(9
|
)
|
|
nm
|
|
nm
|
|
|||
Total revenue
(1)
|
9,162
|
|
|
9,012
|
|
|
8,660
|
|
|
2
|
|
4
|
|
|||
Provision for loan losses
|
12
|
|
|
10
|
|
|
6
|
|
|
20
|
|
67
|
|
|||
Total expenses
|
6,990
|
|
|
6,648
|
|
|
6,190
|
|
|
5
|
|
7
|
|
|||
Income before income tax expense
(1)
|
$
|
2,160
|
|
|
$
|
2,354
|
|
|
$
|
2,464
|
|
|
(8
|
)
|
(4
|
)
|
Pre-tax margin
(1)
|
24
|
%
|
|
26
|
%
|
|
28
|
%
|
|
|
|
|
||||
Average assets (in billions)
|
$
|
246.6
|
|
|
$
|
234.2
|
|
|
$
|
203.2
|
|
|
|
|
|
|
|
TABLE 10: COMPONENTS OF ASSETS UNDER CUSTODY AND ADMINISTRATION
|
||||||||||||||||||||||||||
As of December 31,
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2014-2015 Annual Growth Rate
|
|
2011-2015 Compound Annual Growth Rate
|
||||||||||||
(Dollars in billions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mutual funds
|
|
$
|
6,768
|
|
|
$
|
6,992
|
|
|
$
|
6,811
|
|
|
$
|
5,852
|
|
|
$
|
5,265
|
|
|
(3
|
)%
|
|
6
|
%
|
Collective funds
|
|
7,088
|
|
|
6,949
|
|
|
6,428
|
|
|
5,363
|
|
|
4,437
|
|
|
2
|
|
|
12
|
|
|||||
Pension products
|
|
5,510
|
|
|
5,746
|
|
|
5,851
|
|
|
5,339
|
|
|
4,837
|
|
|
(4
|
)
|
|
3
|
|
|||||
Insurance and other products
|
|
8,142
|
|
|
8,501
|
|
|
8,337
|
|
|
7,817
|
|
|
7,268
|
|
|
(4
|
)
|
|
3
|
|
|||||
Total
|
|
$
|
27,508
|
|
|
$
|
28,188
|
|
|
$
|
27,427
|
|
|
$
|
24,371
|
|
|
$
|
21,807
|
|
|
(2
|
)
|
|
6
|
|
TABLE 11: COMPOSITION OF ASSETS UNDER CUSTODY AND ADMINISTRATION
|
||||||||||||||||||||||||||
As of December 31,
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2014-2015 Annual Growth Rate
|
|
2011-2015 Compound Annual Growth Rate
|
||||||||||||
(Dollars in billions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equities
|
|
$
|
14,888
|
|
|
$
|
15,876
|
|
|
$
|
15,050
|
|
|
$
|
12,276
|
|
|
$
|
10,849
|
|
|
(6
|
)%
|
|
8
|
%
|
Fixed-income
|
|
9,264
|
|
|
8,739
|
|
|
9,072
|
|
|
8,885
|
|
|
8,317
|
|
|
6
|
|
|
3
|
|
|||||
Short-term and other investments
|
|
3,356
|
|
|
3,573
|
|
|
3,305
|
|
|
3,210
|
|
|
2,641
|
|
|
(6
|
)
|
|
6
|
|
|||||
Total
|
|
$
|
27,508
|
|
|
$
|
28,188
|
|
|
$
|
27,427
|
|
|
$
|
24,371
|
|
|
$
|
21,807
|
|
|
(2
|
)
|
|
6
|
|
TABLE 12: GEORGRAPHIC MIX OF ASSETS UNDER CUSTODY AND ADMINISTRATION
(1)
|
||||||||||||||||||||
(Dollars in billions)
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
||||||||||
North America
|
|
$
|
20,842
|
|
|
$
|
21,217
|
|
|
$
|
20,764
|
|
|
$
|
18,463
|
|
|
$
|
16,368
|
|
Europe/Middle East/Africa
|
|
5,387
|
|
|
5,633
|
|
|
5,511
|
|
|
4,801
|
|
|
4,400
|
|
|||||
Asia/Pacific
|
|
1,279
|
|
|
1,338
|
|
|
1,152
|
|
|
1,107
|
|
|
1,039
|
|
|||||
Total
|
|
$
|
27,508
|
|
|
$
|
28,188
|
|
|
$
|
27,427
|
|
|
$
|
24,371
|
|
|
$
|
21,807
|
|
|
|
TABLE 13: TRADING SERVICES REVENUE
|
|
|
|||||||||||||||
Years Ended December 31,
|
2015
|
|
2014
|
|
2013
|
|
% Change 2015 vs. 2014
|
|
% Change 2014 vs. 2013
|
||||||||
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange trading:
|
|
|
|
|
|
|
|
|
|
||||||||
Direct sales and trading
|
$
|
410
|
|
|
$
|
361
|
|
|
$
|
304
|
|
|
14
|
%
|
|
19
|
%
|
Indirect foreign exchange trading
|
280
|
|
|
246
|
|
|
285
|
|
|
14
|
|
|
(14
|
)
|
|||
Total foreign exchange trading
|
690
|
|
|
607
|
|
|
589
|
|
|
14
|
|
|
3
|
|
|||
Brokerage and other trading services:
|
|
|
|
|
|
|
|
|
|
||||||||
Electronic foreign exchange services
|
175
|
|
|
181
|
|
|
218
|
|
|
(3
|
)
|
|
(17
|
)
|
|||
Other trading, transition management and brokerage
|
243
|
|
|
251
|
|
|
220
|
|
|
(3
|
)
|
|
14
|
|
|||
Total brokerage and other trading services
|
418
|
|
|
432
|
|
|
438
|
|
|
(3
|
)
|
|
(1
|
)
|
|||
Total trading services revenue
|
$
|
1,108
|
|
|
$
|
1,039
|
|
|
$
|
1,027
|
|
|
7
|
|
|
1
|
|
TABLE 14: INVESTMENT MANAGEMENT LINE OF BUSINESS RESULTS
|
|
|
||||||||||||||||
(Dollars in millions, except where otherwise noted)
|
|
2015
|
|
2014
|
|
2013
|
|
% Change 2015 vs. 2014
|
|
% Change 2014 vs. 2013
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Management fees
|
|
$
|
1,174
|
|
|
$
|
1,207
|
|
|
$
|
1,106
|
|
|
(3
|
)%
|
|
9
|
%
|
Trading services
|
|
38
|
|
|
45
|
|
|
67
|
|
|
(16
|
)
|
|
(33
|
)
|
|||
Processing fees and other
|
|
(16
|
)
|
|
(5
|
)
|
|
6
|
|
|
nm
|
|
|
nm
|
|
|||
Total fee revenue
|
|
1,196
|
|
|
1,247
|
|
|
1,179
|
|
|
(4
|
)
|
|
6
|
|
|||
Net interest revenue
|
|
2
|
|
|
15
|
|
|
25
|
|
|
(87
|
)
|
|
(40
|
)
|
|||
Total revenue
|
|
1,198
|
|
|
1,262
|
|
|
1,204
|
|
|
(5
|
)
|
|
5
|
|
|||
Total expenses
|
|
962
|
|
|
960
|
|
|
822
|
|
|
—
|
|
|
17
|
|
|||
Income before income tax expense
|
|
$
|
236
|
|
|
$
|
302
|
|
|
$
|
382
|
|
|
(22
|
)
|
|
(21
|
)
|
Pre-tax margin
|
|
20
|
%
|
|
24
|
%
|
|
32
|
%
|
|
|
|
|
|||||
Average assets (in billions)
|
|
$3.9
|
|
$3.9
|
|
$3.8
|
|
|
|
|
|
|
TABLE 15: ASSETS UNDER MANAGMENT BY ASSET CLASS AND INVESTMENT APPROACH
(1)
|
||||||||||||||||||||||||||
As of December 31,
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2014-2015 Annual Growth Rate
|
|
2011-2015 Compound Annual Growth Rate
|
||||||||||||
(Dollars in billions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Active
|
|
$
|
32
|
|
|
$
|
39
|
|
|
$
|
42
|
|
|
$
|
45
|
|
|
$
|
46
|
|
|
(18
|
)%
|
|
(9
|
)%
|
Passive
|
|
1,293
|
|
|
1,436
|
|
|
1,334
|
|
|
1,047
|
|
|
893
|
|
|
(10
|
)
|
|
10
|
|
|||||
Total Equity
|
|
1,325
|
|
|
1,475
|
|
|
1,376
|
|
|
1,092
|
|
|
939
|
|
|
(10
|
)
|
|
9
|
|
|||||
Fixed-Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Active
|
|
18
|
|
|
17
|
|
|
16
|
|
|
17
|
|
|
16
|
|
|
6
|
|
|
3
|
|
|||||
Passive
|
|
294
|
|
|
302
|
|
|
311
|
|
|
325
|
|
|
271
|
|
|
(3
|
)
|
|
2
|
|
|||||
Total Fixed-Income
|
|
312
|
|
|
319
|
|
|
327
|
|
|
342
|
|
|
287
|
|
|
(2
|
)
|
|
2
|
|
|||||
Cash
(1)
|
|
369
|
|
|
399
|
|
|
385
|
|
|
369
|
|
|
380
|
|
|
(8
|
)
|
|
(1
|
)
|
|||||
Multi-Asset-Class Solutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Active
|
|
17
|
|
|
30
|
|
|
23
|
|
|
23
|
|
|
15
|
|
|
(43
|
)
|
|
3
|
|
|||||
Passive
|
|
86
|
|
|
97
|
|
|
110
|
|
|
94
|
|
|
70
|
|
|
(11
|
)
|
|
5
|
|
|||||
Total Multi-Asset-Class Solutions
|
|
103
|
|
|
127
|
|
|
133
|
|
|
117
|
|
|
85
|
|
|
(19
|
)
|
|
5
|
|
|||||
Alternative Investments
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Active
|
|
17
|
|
|
17
|
|
|
14
|
|
|
18
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|||||
Passive
|
|
119
|
|
|
111
|
|
|
110
|
|
|
148
|
|
|
137
|
|
|
7
|
|
|
(3
|
)
|
|||||
Total Alternative Investments
|
|
136
|
|
|
128
|
|
|
124
|
|
|
166
|
|
|
154
|
|
|
6
|
|
|
(3
|
)
|
|||||
Total
|
|
$
|
2,245
|
|
|
$
|
2,448
|
|
|
$
|
2,345
|
|
|
$
|
2,086
|
|
|
$
|
1,845
|
|
|
(8
|
)
|
|
5
|
|
|
|
TABLE 16: EXCHANGE - TRADED FUNDS BY ASSET CLASS
(1)(2)
|
||||||||||||||||||||||||||
As of December 31,
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2014-2015 Annual Growth Rate
|
|
2011-2015 Compound Annual Growth Rate
|
||||||||||||
(Dollars in billions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Alternative Investments
(2)
|
|
$
|
34
|
|
|
$
|
38
|
|
|
$
|
39
|
|
|
79
|
|
|
68
|
|
|
(11
|
)%
|
|
(16
|
)%
|
||
Cash
|
|
3
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
200
|
|
|
11
|
|
|||||
Equity
|
|
350
|
|
|
388
|
|
|
325
|
|
|
227
|
|
|
184
|
|
|
(10
|
)
|
|
17
|
|
|||||
Fixed-income
|
|
41
|
|
|
39
|
|
|
34
|
|
|
30
|
|
|
20
|
|
|
5
|
|
|
20
|
|
|||||
Total Exchange-Traded Funds
|
|
$
|
428
|
|
|
$
|
466
|
|
|
$
|
399
|
|
|
$
|
337
|
|
|
$
|
274
|
|
|
(8
|
)
|
|
12
|
|
|
|
TABLE 17: GEOGRAPHIC MIX OF ASSETS UNDER MANAGEMENT
(1)
|
||||||||||||||||||||
As of December 31,
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
||||||||||
(Dollars in billions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North America
|
|
$
|
1,452
|
|
|
$
|
1,568
|
|
|
$
|
1,456
|
|
|
$
|
1,288
|
|
|
$
|
1,190
|
|
Europe/Middle East/Africa
|
|
489
|
|
|
559
|
|
|
560
|
|
|
480
|
|
|
428
|
|
|||||
Asia/Pacific
|
|
304
|
|
|
321
|
|
|
329
|
|
|
318
|
|
|
227
|
|
|||||
Total
|
|
$
|
2,245
|
|
|
$
|
2,448
|
|
|
$
|
2,345
|
|
|
$
|
2,086
|
|
|
$
|
1,845
|
|
|
|
TABLE 18: ACTIVITY IN ASSETS UNDER MANAGEMENT BY PRODUCT CATEGORY
|
|||||||||||||||||||||||
(In billions)
|
Equity
|
|
Fixed-Income
|
|
Cash
(2)
|
|
Multi-Asset-Class Solutions
|
|
Alternative Investments
(3)
|
|
Total
|
||||||||||||
Balance as of December 31, 2012
|
$
|
1,092
|
|
|
$
|
342
|
|
|
$
|
369
|
|
|
$
|
117
|
|
|
$
|
166
|
|
|
$
|
2,086
|
|
Long-term institutional inflows
(1)
|
256
|
|
|
70
|
|
|
—
|
|
|
32
|
|
|
13
|
|
|
371
|
|
||||||
Long-term institutional outflows
(1)
|
(283
|
)
|
|
(71
|
)
|
|
—
|
|
|
(28
|
)
|
|
(21
|
)
|
|
(403
|
)
|
||||||
Long-term institutional flows, net
|
(27
|
)
|
|
(1
|
)
|
|
—
|
|
|
4
|
|
|
(8
|
)
|
|
(32
|
)
|
||||||
ETF flows, net
|
33
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
12
|
|
||||||
Cash fund flows, net
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
17
|
|
||||||
Total flows, net
|
6
|
|
|
3
|
|
|
17
|
|
|
4
|
|
|
(33
|
)
|
|
(3
|
)
|
||||||
Market appreciation
(2)
|
291
|
|
|
(4
|
)
|
|
(1
|
)
|
|
12
|
|
|
(5
|
)
|
|
293
|
|
||||||
Foreign exchange impact
(2)
|
(13
|
)
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(31
|
)
|
||||||
Total market/foreign exchange impact
|
278
|
|
|
(18
|
)
|
|
(1
|
)
|
|
12
|
|
|
(9
|
)
|
|
262
|
|
||||||
Balance as of December 31, 2013
|
1,376
|
|
|
327
|
|
|
385
|
|
|
133
|
|
|
124
|
|
|
2,345
|
|
||||||
Long-term institutional inflows
(1)
|
285
|
|
|
80
|
|
|
—
|
|
|
43
|
|
|
13
|
|
|
421
|
|
||||||
Long-term institutional outflows
(1)
|
(297
|
)
|
|
(103
|
)
|
|
—
|
|
|
(35
|
)
|
|
(11
|
)
|
|
(446
|
)
|
||||||
Long-term institutional flows, net
|
(12
|
)
|
|
(23
|
)
|
|
—
|
|
|
8
|
|
|
2
|
|
|
(25
|
)
|
||||||
ETF flows, net
|
31
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
34
|
|
||||||
Cash fund flows, net
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
19
|
|
||||||
Total flows, net
|
19
|
|
|
(18
|
)
|
|
19
|
|
|
8
|
|
|
—
|
|
|
28
|
|
||||||
Market appreciation
|
113
|
|
|
27
|
|
|
—
|
|
|
(9
|
)
|
|
11
|
|
|
142
|
|
||||||
Foreign exchange impact
|
(33
|
)
|
|
(17
|
)
|
|
(5
|
)
|
|
(5
|
)
|
|
(7
|
)
|
|
(67
|
)
|
||||||
Total market/foreign exchange impact
|
80
|
|
|
10
|
|
|
(5
|
)
|
|
(14
|
)
|
|
4
|
|
|
75
|
|
||||||
Balance as of December 31, 2014
|
1,475
|
|
|
319
|
|
|
399
|
|
|
127
|
|
|
128
|
|
|
2,448
|
|
||||||
Long-term institutional inflows
(1)
|
277
|
|
|
62
|
|
|
—
|
|
|
51
|
|
|
33
|
|
|
423
|
|
||||||
Long-term institutional outflows
(1)
|
(363
|
)
|
|
(70
|
)
|
|
—
|
|
|
(59
|
)
|
|
(31
|
)
|
|
(523
|
)
|
||||||
Long-term institutional flows, net
|
(86
|
)
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
|
2
|
|
|
(100
|
)
|
||||||
ETF flows, net
|
(29
|
)
|
|
5
|
|
|
1
|
|
|
—
|
|
|
(1
|
)
|
|
(24
|
)
|
||||||
Cash fund flows, net
|
—
|
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
||||||
Total flows, net
|
(115
|
)
|
|
(3
|
)
|
|
(26
|
)
|
|
(8
|
)
|
|
1
|
|
|
(151
|
)
|
||||||
Market appreciation
|
(13
|
)
|
|
3
|
|
|
—
|
|
|
(12
|
)
|
|
16
|
|
|
(6
|
)
|
||||||
Foreign exchange impact
|
(21
|
)
|
|
(7
|
)
|
|
(5
|
)
|
|
(4
|
)
|
|
(9
|
)
|
|
(46
|
)
|
||||||
Total market/foreign exchange impact
|
(34
|
)
|
|
(4
|
)
|
|
(5
|
)
|
|
(16
|
)
|
|
7
|
|
|
(52
|
)
|
||||||
Balance as of December 31, 2015
|
$
|
1,326
|
|
|
$
|
312
|
|
|
$
|
368
|
|
|
$
|
103
|
|
|
$
|
136
|
|
|
$
|
2,245
|
|
|
|
TABLE 19: AVERAGE STATEMENT OF CONDITION
(1)
|
|||||||
Years Ended December 31,
|
2015
|
|
2014
|
||||
(In millions)
|
Average Balance
|
|
Average Balance
|
||||
Assets:
|
|
|
|
||||
Interest-bearing deposits with banks
|
$
|
69,753
|
|
|
$
|
55,353
|
|
Securities purchased under resale agreements
|
3,233
|
|
|
4,077
|
|
||
Trading account assets
|
1,194
|
|
|
959
|
|
||
Investment securities
|
105,611
|
|
|
116,809
|
|
||
Loans and leases
|
17,948
|
|
|
15,912
|
|
||
Other interest-earning assets
|
22,717
|
|
|
15,944
|
|
||
Average total interest-earning assets
|
220,456
|
|
|
209,054
|
|
||
Cash and due from banks
|
2,460
|
|
|
4,139
|
|
||
Other noninterest-earning assets
|
27,548
|
|
|
24,935
|
|
||
Average total assets
|
$
|
250,464
|
|
|
$
|
238,128
|
|
Liabilities and shareholders’ equity:
|
|
|
|
||||
Interest-bearing deposits:
|
|
|
|
||||
U.S.
|
$
|
30,819
|
|
|
$
|
21,296
|
|
Non-U.S.
|
102,491
|
|
|
109,003
|
|
||
Total interest-bearing deposits
|
133,310
|
|
|
130,299
|
|
||
Securities sold under repurchase agreements
|
8,875
|
|
|
8,817
|
|
||
Federal funds purchased
|
21
|
|
|
20
|
|
||
Other short-term borrowings
|
3,826
|
|
|
4,177
|
|
||
Long-term debt
|
10,333
|
|
|
9,309
|
|
||
Other interest-bearing liabilities
|
6,471
|
|
|
7,351
|
|
||
Average total interest-bearing liabilities
|
162,836
|
|
|
159,973
|
|
||
Noninterest-bearing deposits
|
51,675
|
|
|
44,041
|
|
||
Other noninterest-bearing liabilities
(2)
|
14,626
|
|
|
12,935
|
|
||
Preferred shareholders’ equity
|
2,418
|
|
|
1,181
|
|
||
Common shareholders’ equity
(2)
|
18,909
|
|
|
19,998
|
|
||
Average total liabilities and shareholders’ equity
(2)
|
$
|
250,464
|
|
|
$
|
238,128
|
|
|
|
TABLE 20: CARRYING VALUES OF INVESTMENT SECURITIES
|
|||||||||||
|
As of December 31,
|
||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Available for sale:
|
|
|
|
|
|
||||||
U.S. Treasury and federal agencies:
|
|||||||||||
Direct obligations
|
$
|
5,718
|
|
|
$
|
10,655
|
|
|
$
|
709
|
|
Mortgage-backed securities
|
18,165
|
|
|
20,714
|
|
|
23,563
|
|
|||
Asset-backed securities:
|
|
|
|
|
|
||||||
Student loans
(1)
|
7,176
|
|
|
12,460
|
|
|
14,542
|
|
|||
Credit cards
|
1,341
|
|
|
3,053
|
|
|
8,210
|
|
|||
Sub-prime
|
419
|
|
|
951
|
|
|
1,203
|
|
|||
Other
|
1,764
|
|
|
4,145
|
|
|
5,064
|
|
|||
Total asset-backed securities
|
10,700
|
|
|
20,609
|
|
|
29,019
|
|
|||
Non-U.S. debt securities:
|
|
|
|
|
|
||||||
Mortgage-backed securities
|
7,071
|
|
|
9,606
|
|
|
11,029
|
|
|||
Asset-backed securities
|
3,267
|
|
|
3,226
|
|
|
5,390
|
|
|||
Government securities
|
4,355
|
|
|
3,909
|
|
|
3,761
|
|
|||
Other
|
4,834
|
|
|
5,428
|
|
|
4,727
|
|
|||
Total non-U.S. debt securities
|
19,527
|
|
|
22,169
|
|
|
24,907
|
|
|||
State and political subdivisions
|
9,746
|
|
|
10,820
|
|
|
10,263
|
|
|||
Collateralized mortgage obligations
|
2,987
|
|
|
5,339
|
|
|
5,269
|
|
|||
Other U.S. debt securities
|
2,624
|
|
|
4,109
|
|
|
4,980
|
|
|||
U.S. equity securities
|
39
|
|
|
39
|
|
|
34
|
|
|||
Non-U.S. equity securities
|
3
|
|
|
2
|
|
|
1
|
|
|||
U.S. money-market mutual funds
|
542
|
|
|
449
|
|
|
422
|
|
|||
Non-U.S. money-market mutual funds
|
19
|
|
|
8
|
|
|
7
|
|
|||
Total
|
$
|
70,070
|
|
|
$
|
94,913
|
|
|
$
|
99,174
|
|
|
|
|
|
|
|
||||||
Held to maturity
(2)
:
|
|
|
|
|
|
||||||
U.S. Treasury and federal agencies:
|
|||||||||||
Direct obligations
|
$
|
20,878
|
|
|
$
|
5,114
|
|
|
$
|
5,041
|
|
Mortgage-backed securities
|
610
|
|
|
62
|
|
|
91
|
|
|||
Asset-backed securities:
|
|
|
|
|
|
||||||
Student loans
(1)
|
1,592
|
|
|
1,814
|
|
|
1,627
|
|
|||
Credit cards
|
897
|
|
|
897
|
|
|
762
|
|
|||
Other
|
366
|
|
|
577
|
|
|
782
|
|
|||
Total asset-backed securities
|
2,855
|
|
|
3,288
|
|
|
3,171
|
|
|||
Non-U.S. debt securities:
|
|
|
|
|
|
||||||
Mortgage-backed securities
|
2,202
|
|
|
3,787
|
|
|
4,211
|
|
|||
Asset-backed securities
|
1,415
|
|
|
2,868
|
|
|
2,202
|
|
|||
Government securities
|
239
|
|
|
154
|
|
|
2
|
|
|||
Other
|
65
|
|
|
72
|
|
|
192
|
|
|||
Total non-U.S. debt securities
|
3,921
|
|
|
6,881
|
|
|
6,607
|
|
|||
State and political subdivisions
|
1
|
|
|
9
|
|
|
24
|
|
|||
Collateralized mortgage obligations
|
1,687
|
|
|
2,369
|
|
|
2,806
|
|
|||
Total
|
$
|
29,952
|
|
|
$
|
17,723
|
|
|
$
|
17,740
|
|
|
|
TABLE 21: INVESTMENT PORTFOLIO BY EXTERNAL CREDIT RATING
|
|||||
|
December 31, 2015
|
|
December 31, 2014
|
||
AAA
(1)
|
80
|
%
|
|
73
|
%
|
AA
|
12
|
|
|
17
|
|
A
|
5
|
|
|
6
|
|
BBB
|
2
|
|
|
2
|
|
Below BBB
|
1
|
|
|
2
|
|
|
100
|
%
|
|
100
|
%
|
|
|
TABLE 22: NON-U.S. DEBT SECURITIES
|
|||||||
|
As of December 31,
|
||||||
(In millions)
|
2015
|
|
2014
|
||||
Available for sale:
|
|
|
|
||||
United Kingdom
|
$
|
5,754
|
|
|
$
|
6,925
|
|
Australia
|
3,316
|
|
|
3,401
|
|
||
Canada
|
2,400
|
|
|
2,711
|
|
||
Netherlands
|
1,839
|
|
|
3,219
|
|
||
Japan
|
1,348
|
|
|
860
|
|
||
South Korea
|
1,052
|
|
|
920
|
|
||
Germany
|
990
|
|
|
810
|
|
||
France
|
954
|
|
|
1,407
|
|
||
Norway
|
524
|
|
|
438
|
|
||
Italy
|
389
|
|
|
464
|
|
||
Finland
|
319
|
|
|
513
|
|
||
Belgium
|
234
|
|
|
120
|
|
||
Sweden
|
123
|
|
|
103
|
|
||
Other
(1)
|
285
|
|
|
278
|
|
||
Total
|
$
|
19,527
|
|
|
$
|
22,169
|
|
Held to maturity:
|
|
|
|
||||
United Kingdom
|
$
|
1,067
|
|
|
$
|
1,779
|
|
Australia
|
917
|
|
|
1,712
|
|
||
Germany
|
832
|
|
|
1,651
|
|
||
Netherlands
|
684
|
|
|
1,128
|
|
||
Singapore
|
129
|
|
|
154
|
|
||
Spain
|
108
|
|
|
155
|
|
||
Italy
|
59
|
|
|
79
|
|
||
Ireland
|
10
|
|
|
68
|
|
||
Other
(2)
|
115
|
|
|
155
|
|
||
Total
|
$
|
3,921
|
|
|
$
|
6,881
|
|
|
|
TABLE 23: STATE AND MUNICIPAL OBLIGORS
(1)
|
||||||||||||||
(Dollars in millions)
|
Total Municipal
Securities
|
|
Credit and
Liquidity
Facilities
(2)
|
|
Total
|
|
% of Total Municipal
Exposure
|
|||||||
December 31, 2015
|
|
|
|
|
|
|
||||||||
State of Issuer:
|
|
|
|
|
|
|
|
|||||||
Texas
|
$
|
1,250
|
|
|
$
|
1,962
|
|
|
$
|
3,212
|
|
|
17
|
%
|
California
|
444
|
|
|
2,220
|
|
|
2,664
|
|
|
14
|
|
|||
New York
|
817
|
|
|
1,259
|
|
|
2,076
|
|
|
11
|
|
|||
Massachusetts
|
927
|
|
|
731
|
|
|
1,658
|
|
|
9
|
|
|||
Maryland
|
454
|
|
|
413
|
|
|
867
|
|
|
5
|
|
|||
Total
|
$
|
3,892
|
|
|
$
|
6,585
|
|
|
$
|
10,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
December 31, 2014
|
|
|
|
|
|
|
||||||||
State of Issuer:
|
|
|
|
|
|
|
|
|||||||
Texas
|
$
|
1,326
|
|
|
$
|
1,405
|
|
|
$
|
2,731
|
|
|
15
|
%
|
California
|
458
|
|
|
1,837
|
|
|
2,295
|
|
|
12
|
|
|||
New York
|
920
|
|
|
996
|
|
|
1,916
|
|
|
10
|
|
|||
Massachusetts
|
989
|
|
|
847
|
|
|
1,836
|
|
|
10
|
|
|||
Maryland
|
446
|
|
|
416
|
|
|
862
|
|
|
5
|
|
|||
Total
|
$
|
4,139
|
|
|
$
|
5,501
|
|
|
$
|
9,640
|
|
|
|
|
|
|
|
TABLE 24: CONTRACTUAL MATURITIES AND YIELDS
|
|||||||||||||||||||||||||||
As of December 31, 2015
|
Under 1
Year
|
|
1 to 5
Years
|
|
6 to 10
Years
|
|
Over 10
Years
|
||||||||||||||||||||
(In millions)
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
||||||||||||
Available for sale
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Direct obligations
|
$
|
2,000
|
|
|
0.63
|
%
|
|
$
|
3,223
|
|
|
0.88
|
%
|
|
$
|
40
|
|
|
3.05
|
%
|
|
$
|
455
|
|
|
2.05
|
%
|
Mortgage-backed securities
|
78
|
|
|
4.04
|
|
|
2,501
|
|
|
2.65
|
|
|
3,858
|
|
|
3.42
|
|
|
11,728
|
|
|
3.00
|
|
||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Student loans
|
339
|
|
|
0.66
|
|
|
3,702
|
|
|
0.88
|
|
|
2,054
|
|
|
0.83
|
|
|
1,081
|
|
|
1.08
|
|
||||
Credit cards
|
2
|
|
|
0.93
|
|
|
259
|
|
|
1.37
|
|
|
1,080
|
|
|
1.68
|
|
|
—
|
|
|
—
|
|
||||
Sub-prime
|
1
|
|
|
2.69
|
|
|
5
|
|
|
1.59
|
|
|
3
|
|
|
1.48
|
|
|
410
|
|
|
1.15
|
|
||||
Other
|
19
|
|
|
1.73
|
|
|
220
|
|
|
0.51
|
|
|
1,260
|
|
|
1.63
|
|
|
265
|
|
|
1.85
|
|
||||
Total asset-backed securities
|
361
|
|
|
|
|
4,186
|
|
|
|
|
4,397
|
|
|
|
|
1,756
|
|
|
|
||||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
1,103
|
|
|
1.74
|
|
|
3,375
|
|
|
1.67
|
|
|
648
|
|
|
1.22
|
|
|
1,945
|
|
|
2.87
|
|
||||
Asset-backed securities
|
485
|
|
|
0.61
|
|
|
2,394
|
|
|
0.72
|
|
|
220
|
|
|
0.63
|
|
|
168
|
|
|
0.54
|
|
||||
Government securities
|
2,736
|
|
|
2.99
|
|
|
1,619
|
|
|
0.46
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other
|
1,410
|
|
|
5.81
|
|
|
2,886
|
|
|
1.36
|
|
|
538
|
|
|
0.53
|
|
|
—
|
|
|
—
|
|
||||
Total non-U.S. debt securities
|
5,734
|
|
|
|
|
10,274
|
|
|
|
|
1,406
|
|
|
|
|
2,113
|
|
|
|
||||||||
State and political subdivisions
(2)
|
542
|
|
|
9.69
|
|
|
2,450
|
|
|
9.61
|
|
|
5,001
|
|
|
10.83
|
|
|
1,753
|
|
|
9.06
|
|
||||
Collateralized mortgage obligations
|
350
|
|
|
3.89
|
|
|
80
|
|
|
2.75
|
|
|
472
|
|
|
3.21
|
|
|
2,085
|
|
|
3.08
|
|
||||
Other U.S. debt securities
|
948
|
|
|
3.73
|
|
|
1,500
|
|
|
4.24
|
|
|
142
|
|
|
3.63
|
|
|
34
|
|
|
0.89
|
|
||||
Total
|
$
|
10,013
|
|
|
|
|
$
|
24,214
|
|
|
|
|
$
|
15,316
|
|
|
|
|
$
|
19,924
|
|
|
|
||||
Held to maturity
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Direct obligations
|
$
|
—
|
|
|
—
|
%
|
|
$
|
11,348
|
|
|
1.89
|
%
|
|
$
|
9,440
|
|
|
2.30
|
%
|
|
$
|
90
|
|
|
0.57
|
%
|
Mortgage-backed securities
|
1
|
|
|
5.00
|
|
|
12
|
|
|
5.00
|
|
|
—
|
|
|
—
|
|
|
597
|
|
|
3.02
|
|
||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Student loans
|
—
|
|
|
—
|
|
|
193
|
|
|
1.05
|
|
|
304
|
|
|
1.16
|
|
|
1,095
|
|
|
0.97
|
|
||||
Credit cards
|
—
|
|
|
—
|
|
|
680
|
|
|
0.77
|
|
|
217
|
|
|
0.74
|
|
|
—
|
|
|
—
|
|
||||
Other
|
60
|
|
|
0.68
|
|
|
227
|
|
|
0.70
|
|
|
76
|
|
|
0.56
|
|
|
3
|
|
|
0.91
|
|
||||
Total asset-backed securities
|
60
|
|
|
|
|
1,100
|
|
|
|
|
597
|
|
|
|
|
1,098
|
|
|
|
||||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
435
|
|
|
0.99
|
|
|
507
|
|
|
0.89
|
|
|
95
|
|
|
3.18
|
|
|
1,165
|
|
|
1.22
|
|
||||
Asset-backed securities
|
201
|
|
|
0.97
|
|
|
1,067
|
|
|
0.58
|
|
|
147
|
|
|
1.00
|
|
|
—
|
|
|
—
|
|
||||
Government securities
|
129
|
|
|
0.72
|
|
|
110
|
|
|
0.25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other
|
22
|
|
|
0.88
|
|
|
43
|
|
|
0.10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total non-U.S. debt securities
|
787
|
|
|
|
|
1,727
|
|
|
|
|
242
|
|
|
|
|
1,165
|
|
|
|
||||||||
State and political subdivisions
(2)
|
1
|
|
|
6.73
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Collateralized mortgage obligations
|
251
|
|
|
3.94
|
|
|
142
|
|
|
2.81
|
|
|
489
|
|
|
1.52
|
|
|
805
|
|
|
1.99
|
|
||||
Total
|
$
|
1,100
|
|
|
|
|
$
|
14,329
|
|
|
|
|
$
|
10,768
|
|
|
|
|
$
|
3,755
|
|
|
|
|
|
|
|
TABLE 25: AMORTIZED COST, FAIR VALUE AND NET UNREALIZED GAINS (LOSSES) OF INVESTMENT SECURITIES
|
|||||||||||||||||||||||
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
(In millions)
|
Amortized Cost
|
|
Net Unrealized Gains(Losses)
|
|
Fair Value
|
|
Amortized Cost
|
|
Net Unrealized Gains(Losses)
|
|
Fair Value
|
||||||||||||
Available for sale
(1)
|
$
|
69,843
|
|
|
$
|
227
|
|
|
$
|
70,070
|
|
|
$
|
94,108
|
|
|
$
|
805
|
|
|
$
|
94,913
|
|
Held to maturity
(1)
|
29,952
|
|
|
(154
|
)
|
|
29,798
|
|
|
17,723
|
|
|
119
|
|
|
17,842
|
|
||||||
Total investment securities
|
$
|
99,795
|
|
|
$
|
73
|
|
|
$
|
99,868
|
|
|
$
|
111,831
|
|
|
$
|
924
|
|
|
$
|
112,755
|
|
Net after-tax unrealized gain (loss)
|
|
|
$
|
44
|
|
|
|
|
|
|
$
|
554
|
|
|
|
|
|
|
|
TABLE 27: CONTRACTUAL MATURITIES FOR LOANS AND LEASES
|
|
|
|
|
|
|
|
||||||||
|
As of December 31, 2015
|
||||||||||||||
(In millions)
|
Total
|
|
Under 1 Year
|
|
1 to 5 Years
|
|
Over 5 Years
|
||||||||
Institutional:
|
|
|
|
|
|
|
|
||||||||
Investment funds:
|
|
|
|
|
|
|
|
||||||||
U.S.
|
$
|
11,136
|
|
|
$
|
9,395
|
|
|
$
|
1,726
|
|
|
$
|
15
|
|
Non-U.S.
|
1,678
|
|
|
1,139
|
|
|
539
|
|
|
—
|
|
||||
Commercial and financial:
|
|
|
|
|
|
|
|
||||||||
U.S.
|
4,671
|
|
|
559
|
|
|
2,180
|
|
|
1,932
|
|
||||
Non-U.S.
|
278
|
|
|
61
|
|
|
42
|
|
|
175
|
|
||||
Purchased receivables:
|
|
|
|
|
|
|
|
||||||||
U.S.
|
93
|
|
|
—
|
|
|
71
|
|
|
22
|
|
||||
Non-U.S.
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Lease financing:
|
|
|
|
|
|
|
|
||||||||
U.S.
|
337
|
|
|
—
|
|
|
—
|
|
|
337
|
|
||||
Non-U.S.
|
578
|
|
|
96
|
|
|
194
|
|
|
288
|
|
||||
Total institutional
|
18,771
|
|
|
11,250
|
|
|
4,752
|
|
|
2,769
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
U.S.
|
28
|
|
|
—
|
|
|
28
|
|
|
—
|
|
||||
Total loans and leases
|
$
|
18,799
|
|
|
$
|
11,250
|
|
|
$
|
4,780
|
|
|
$
|
2,769
|
|
TABLE 28: CLASSIFICATION OF LOAN AND LEASE BALANCES DUE AFTER ONE YEAR
|
|
||
|
As of December 31, 2015
|
||
(In millions)
|
|
||
Loans and leases with predetermined interest rates
|
$
|
2,652
|
|
Loans and leases with floating or adjustable interest rates
|
4,897
|
|
|
Total
|
$
|
7,549
|
|
TABLE 29: ALLOWANCE FOR LOAN LOSSES
|
|
|
|
|
|
|
|||||||||||||
|
Years Ended December 31,
|
||||||||||||||||||
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
$
|
38
|
|
|
$
|
28
|
|
|
$
|
22
|
|
|
$
|
22
|
|
|
$
|
100
|
|
Provision for loan losses
(1)
|
12
|
|
|
10
|
|
|
6
|
|
|
(3
|
)
|
|
—
|
|
|||||
Charge-offs
(2)
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(78
|
)
|
|||||
Recoveries
(3)
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|||||
Ending balance
|
$
|
46
|
|
|
$
|
38
|
|
|
$
|
28
|
|
|
$
|
22
|
|
|
$
|
22
|
|
TABLE 30: CROSS-BORDER OUTSTANDINGS
(1)
|
|||||||||||
(In millions)
|
Investment Securities and Other Assets
|
|
Derivatives and Securities on Loan
|
|
Total Cross-Border Outstandings
|
||||||
December 31, 2015
|
|
|
|
|
|
||||||
United Kingdom
|
$
|
16,965
|
|
|
$
|
1,589
|
|
|
$
|
18,554
|
|
Japan
|
17,328
|
|
|
87
|
|
|
17,415
|
|
|||
Germany
|
12,111
|
|
|
569
|
|
|
12,680
|
|
|||
Australia
|
4,035
|
|
|
292
|
|
|
4,327
|
|
|||
Canada
|
3,156
|
|
|
1,113
|
|
|
4,269
|
|
|||
Luxembourg
|
3,034
|
|
|
514
|
|
|
3,548
|
|
|||
December 31, 2014
|
|
|
|
|
|
|
|
|
|||
United Kingdom
|
$
|
15,288
|
|
|
$
|
1,769
|
|
|
$
|
17,057
|
|
Japan
|
9,465
|
|
|
644
|
|
|
10,109
|
|
|||
Australia
|
5,981
|
|
|
1,039
|
|
|
7,020
|
|
|||
Netherlands
|
4,425
|
|
|
330
|
|
|
4,755
|
|
|||
Canada
|
3,227
|
|
|
974
|
|
|
4,201
|
|
|||
Germany
|
3,075
|
|
|
792
|
|
|
3,867
|
|
|||
December 31, 2013
|
|
|
|
|
|
||||||
United Kingdom
|
$
|
15,422
|
|
|
$
|
1,697
|
|
|
$
|
17,119
|
|
Australia
|
7,309
|
|
|
672
|
|
|
7,981
|
|
|||
Netherlands
|
4,542
|
|
|
277
|
|
|
4,819
|
|
|||
Canada
|
3,675
|
|
|
620
|
|
|
4,295
|
|
|||
Germany
|
4,062
|
|
|
147
|
|
|
4,209
|
|
|||
France
|
2,887
|
|
|
735
|
|
|
3,622
|
|
|||
Japan
|
2,445
|
|
|
605
|
|
|
3,050
|
|
|
|
•
|
credit and counterparty risk;
|
•
|
liquidity risk, funding and management;
|
•
|
operational risk;
|
•
|
information technology risk;
|
•
|
market risk associated with our trading activities;
|
•
|
market risk associated with our non-trading activities, which we refer to as asset-and-liability management, and which consists primarily of interest-rate risk;
|
•
|
strategic risk;
|
•
|
model risk; and
|
•
|
reputational, fiduciary and business conduct risk.
|
▪
|
A culture of risk awareness that extends across all of our business activities;
|
▪
|
The identification, classification and quantification of State Street's material risks;
|
▪
|
The establishment of our risk appetite and associated limits and policies, and our compliance with these limits;
|
▪
|
The establishment of a risk management structure at the “top of the house” that enables the control and coordination of risk-taking across the business lines;
|
▪
|
The implementation of stress testing practices and a dynamic risk-assessment capability;
|
▪
|
A direct link between risk and strategic-decision making processes and incentive compensation practices; and
|
▪
|
The overall flexibility to adapt to the ever-changing business and market conditions.
|
|
Form 10-K Page Number
|
Strategic
Risk Management
|
Management Risk Governance Committee Structure
|
|||||||||
|
|
|
|
|
|
|
|
|
|
Executive Management Committees:
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
Management Risk and Capital Committee
(MRAC) |
|
Business Conduct Risk Committee
(BCRC) |
|
Technology and Operational Risk Committee
(TORC) |
|||||
|
|
|
|
|
|
|
|
|
|
Risk Committees:
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
Asset-Liability Committee (ALCO)
|
|
Credit Risk and Policy Committee
(CRPC) |
|
Fiduciary Review Committee
|
|
Operational Risk Committee
|
|
Technology Risk Governance Committee
|
|
|
|
|
|
|
|
|
|
|
|
Trading and Market Risk Committee (TMRC)
|
|
Basel Oversight Committee
(BOC) |
|
New Business and Product Approval Committee
|
|
Executive Continuity Steering Committee
|
|
Executive Information Security Committee
|
|
|
|
|
|
|
|
|
|
|
|
Recovery and Resolution Planning Executive Committee
|
|
Model Risk Committee
(MRC) |
|
Compliance and Ethics Committee
|
|
Third Party Risk Management Steering Committee
|
|
Access Control Board
|
|
|
|
|
|
|
|
|
|
|
|
CCAR Steering Committee
|
|
SSGA Risk Committee
|
|
Legal Entity Oversight Committee
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Country Risk Committee
|
|
|
|
|
|
|
|
|
•
|
“Vertical” business unit-aligned risk groups that support business managers with risk management, measurement and monitoring activities;
|
•
|
“Horizontal” risk groups that monitor the risks that cross all of our business units (for example, credit and operational risk); and
|
•
|
Risk oversight for international activities, which combines intersecting “Verticals” and “Horizontals” through a hub and spoke model to provide important regional and legal entity perspectives to the global risk framework.
|
•
|
The approval of the policies of our global risk, capital and liquidity management frameworks, including our risk appetite framework;
|
•
|
The monitoring and assessment of our capital adequacy based on internal policies and regulatory requirements;
|
•
|
The oversight of our firm-wide risk identification, model risk governance, stress testing and Recovery and Resolution Plan programs; and
|
•
|
The ongoing monitoring and review of risks undertaken within the businesses, and our senior management oversight and approval of risk strategies and tactics.
|
•
|
ALCO
oversees the management of our consolidated statement of condition and the management of our global liquidity, our interest-rate risk, and our non-traded market risk positions, as well as the business activities of our Global Treasury group and the risks associated with the generation of net interest revenue and overall balance sheet management. ALCO’s roles and responsibilities are designed to work complementary to, and be coordinated with, MRAC, which approves our corporate risk appetite and associated balance sheet strategy;
|
•
|
CRPC has primary responsibility for the oversight and review of credit and counterparty risk across business units, as well as oversight, review and approval of the credit risk policies and guidelines; the Committee consists of senior executives within ERM, and reviews policies and guidelines related to all aspects of our business which give rise to credit risk; our business units are also represented on the CRPC; credit risk policies and guidelines are reviewed periodically, but at least annually;
|
•
|
TMRC
reviews the effectiveness of, and approves, the market risk framework at least annually; it is the senior oversight and decision-making committee for risk management within our global markets businesses; the TMRC is responsible for the formulation of guidelines, strategies and workflows with respect to the measurement, monitoring and control of our trading market risk, and also approves market risk tolerance limits, collateral and margin policies, and trading authorities; the TMRC meets regularly to monitor the management of our trading market risk activities;
|
•
|
BOC provides oversight and governance over Basel related regulatory requirements, assesses compliance with respect to Basel regulations and approves all material methodologies and changes, policies and reporting;
|
•
|
The Recovery and Resolution Planning Executive Committee oversees the development of recovery and resolution plans as required by banking regulators;
|
•
|
MRC
monitors the overall level of model risk and provides oversight of the model governance process pertaining to financial models, including the validation of key models and the ongoing monitoring of model
|
•
|
The CCAR Steering Committee provides primary supervision of the stress tests performed in conformity with the Federal Reserve's CCAR process and the Dodd-Frank Act, and is responsible for the overall management, review, and approval of all material assumptions, methodologies, and results of each stress scenario;
|
•
|
The SSGA Risk Committee is the most senior oversight and decision making committee for risk management within SSGA; the committee is responsible for overseeing the alignment of SSGA's strategy, budget, and risk appetite, as well as alignment with State Street corporate-wide strategies and risk management standards; and
|
•
|
The Country Risk Committee oversees the identification, assessment, monitoring, reporting and mitigation, where necessary, of country risks.
|
•
|
The Fiduciary Review Committee reviews and assesses the fiduciary risk management programs of those units in which we serve in a fiduciary capacity;
|
•
|
The New Business and Product Approval Committee provides oversight of the evaluation of the risk inherent in proposed new products or services and new business, and extensions of existing products or services, evaluations including economic justification, material risk, compliance, regulatory and legal considerations, and capital and liquidity analyses;
|
•
|
The Compliance and Ethics Committee provides review and oversight of our compliance programs, including its culture of compliance and high standards of ethical behavior; and
|
•
|
The Legal Entity Oversight Committee establishes standards with respect to the governance of State Street legal entities, monitors adherence to those standards, and oversees the ongoing evaluation of our legal entity structure, including the formation, maintenance and dissolution of legal entities.
|
•
|
TORC
|
•
|
The Technology Risk Governance Committee provides regular reporting to TORC and escalates technology risk issues to TORC, as appropriate;
|
•
|
The Executive Continuity Steering Committee reviews overall business continuity program performance, provides for executive accountability for compliance with the business continuity program and standards, and reviews and approves major changes or exceptions to program policy and standards;
|
•
|
The Executive Information Security Committee is responsible for managing the Enterprise Information Security posture and program, including cyber security protections, provides enterprise-wide oversight of the Information Security Program to provide that controls are measured and managed, and serves as an escalation point for issues identified during the execution of information technology activities and risk mitigation;
|
•
|
The Third Party Risk Management Steering Committee provides oversight over the vendor management program, approves policies, and serves as an escalation path for program compliance exceptions;
|
•
|
The Access Control Board establishes and provides appropriate governance and controls over our access control security framework; and
|
•
|
The Operational Risk Committee, along with the support of regional business or entity-specific working groups and committees, is responsible for oversight of our operational risk programs, including determining that the implementation of those programs is designed to identify, manage, and control operational risk in an effective and consistent manner across the firm.
|
▪
|
Default risk - the risk that a counterparty fails to meet its contractual payment obligations;
|
▪
|
Country risk - the risk that we may suffer a loss, in any given country, due to any of the following reasons: deterioration of economic conditions, political and social upheaval, nationalization and appropriation of assets, government repudiation of indebtedness, exchange controls, and disruptive currency depreciation or devaluation; and
|
▪
|
Settlement risk - the risk that the settlement or clearance of transactions will fail, which arises whenever the exchange of cash, securities and/or other assets is not simultaneous.
|
•
|
We measure and consolidate credit risks to each counterparty, or group of counterparties, in accordance with a “one-obligor” principle that aggregates risks across our business units;
|
•
|
ERM reviews and approves all extensions of credit, or material changes to extensions of credit (such as changes in term, collateral structure or covenants), in accordance with assigned credit-approval authorities;
|
•
|
Credit-approval authorities are assigned to individuals according to their qualifications, experience and training, and these authorities are periodically reviewed. Our largest exposures require approval by the Credit Committee, a sub-committee of the CRPC. With respect to small and low-risk extensions of credit to certain types of counterparties, approval authority is granted to individuals outside of ERM;
|
•
|
We seek to avoid or limit undue concentrations of risk. Counterparty (or groups of counterparties), industry, country and product-specific concentrations of risk
|
•
|
We determine the creditworthiness of counterparties through a detailed risk assessment, including the use of comprehensive internal risk-rating methodologies;
|
•
|
We review all extensions of credit and the creditworthiness of counterparties at least annually. The nature and extent of these reviews are determined by the size, nature and term of the extensions of credit and the creditworthiness of the counterparty; and
|
•
|
We subject all corporate policies and guidelines to annual review as an integral part of our periodic assessment of our risk appetite.
|
•
|
The assessment of the creditworthiness of new counterparties and, in conjunction with our risk appetite statement, the development of appropriate credit limits for our products and services, including loans, foreign exchange, securities finance, placements and repurchase agreements;
|
•
|
The use of an automated process for limit approvals for certain low-risk counterparties, as defined in our credit risk guidelines, based on the counterparty’s probability-of-default, or
PD
, rating class;
|
•
|
The development of approval authority matrices based on PD; riskier counterparties with higher ratings require higher levels of approval for a comparable PD and limit size compared to less risky counterparties with lower ratings;
|
•
|
The analysis of risk concentration trends using historical PD and exposure-at-default, or
EAD
, data;
|
•
|
The standardization of rating integrity testing by GCR using rating parameters;
|
•
|
The determination of the level of management review of short-duration advances depending on PD; riskier counterparties with higher rating class values generally trigger higher levels of management escalation for comparable short-duration advances compared to less risky counterparties with lower rating-class values;
|
•
|
The monitoring of credit facility utilization levels using EAD values and the identification of instances where counterparties have exceeded limits;
|
•
|
The aggregation and comparison of counterparty exposures with risk appetite levels to determine if businesses are maintaining appropriate risk levels; and
|
•
|
The determination of our regulatory capital requirements for the AIRB provided in the Basel framework.
|
•
|
Collateral.
In many parts of our business, we regularly require or agree for collateral to be received from or provided to clients and counterparties in connection with contracts that incur credit risk. In our trading businesses, this collateral is typically in the form of cash and high-grade securities (government securities and other bonds or equity securities). Credit risks in our non-trading and securities finance businesses are also often secured by bonds and equity securities and by other types of assets. Collateral serves to reduce the risk of loss inherent in an exposure by improving the prospect of recovery in the event of a counterparty default. While collateral is often an alternative source of repayment, it generally does not replace the requirement within our policies and guidelines for high-quality underwriting standards.
|
•
|
Netting.
Netting is a mechanism that allows institutions and counterparties to net offsetting exposures and payment obligations against one another through the use of qualifying master netting agreements. A master netting agreement allows the netting of rights and obligations arising under derivative or other transactions that
|
•
|
Guarantees.
A guarantee is a financial instrument that results in credit support being provided by a third party, (i.e., the protection provider) to the underlying obligor (the beneficiary of the provided protection) on account of an exposure owing by the obligor. The protection provider may support the underlying exposure either in whole or in part. Support of this kind may take different forms. Typical forms of guarantees provided to State Street include financial guarantees, letters of credit, bankers’ acceptances, PUA contracts and insurance.
|
•
|
Annual Reviews.
A formal review of counterparties is conducted at least annually and includes a thorough review of operating performance, primary risk factors and our internal credit risk rating. This annual review also includes a review of current and proposed credit limits, an assessment of our ongoing risk appetite and verification that supporting legal documentation remains effective.
|
•
|
Interim Monitoring.
Periodic monitoring of our largest and riskiest counterparties is undertaken more frequently, utilizing financial information, market indicators and other relevant credit and performance measures. The nature and extent of this interim monitoring is individually tailored to certain counterparties and/or industry sectors to identify material changes to the risk profile of a counterparty (or group of counterparties) and assign an updated internal risk rating in a timely manner.
|
•
|
Separate and objective assessments of our credit and counterparty exposures to determine the nature and extent of risk undertaken by the business units;
|
•
|
Periodic credit process and credit product reviews, focusing on and assessing credit analysis, policy compliance, prudent transaction structure and underwriting standards, administration and documentation, risk-rating integrity, and relevant trends;
|
•
|
Identification and monitoring of developing counterparty, market and/or industry sector trends to limit risk of loss and protect capital;
|
•
|
Regular and formal reporting of reviews, including findings and requisite actions to remedy identified deficiencies;
|
•
|
Allocation of resources for specialized risk assessments (on an as-needed basis);
|
•
|
Assessment of the level of the allowance for loan and lease losses and OTTI; and
|
•
|
Liaison with auditors and regulatory personnel on matters relating to risk rating, reporting, and measurement.
|
•
|
Structural liquidity management addresses liquidity by monitoring and directing the composition of our consolidated statement of condition. Structural liquidity is measured by metrics such as the percentage of total wholesale funds to consolidated total assets, and the percentage of non-government investment securities to client deposits. In
|
•
|
Tactical liquidity management addresses our day-to-day funding requirements and is largely driven by changes in our primary source of funding, which are client deposits. Fluctuations in client deposits may be supplemented with short-term borrowings, which generally include commercial paper and certificates of deposit.
|
•
|
Stress testing and contingent funding planning are longer-term strategic liquidity risk management practices. Regular and ad hoc liquidity stress testing are performed under various severe but plausible scenarios at the consolidated level and at significant subsidiaries, including State Street Bank. These tests contemplate severe market and State Street-specific events under various time horizons and severities. Tests contemplate the impact of material changes in key funding sources, credit ratings, additional collateral requirements, contingent uses of funding, systemic shocks to the financial markets, and operational failures based on market and State Street-specific assumptions. The stress tests evaluate the required level of funding versus available sources in an adverse environment. As stress testing contemplates potential forward-looking scenarios, results also serve as a trigger to activate specific liquidity stress levels and contingent funding actions.
|
TABLE 32: COMPONENTS OF HQLA BY TYPE OF ASSET
|
||||||||
(In millions)
|
|
December 31, 2015
|
|
December 31, 2014
|
||||
Excess Central Bank Balances
|
|
$
|
66,063
|
|
|
$
|
85,176
|
|
U.S. Treasuries
|
|
22,518
|
|
|
10,308
|
|
||
Other Investment securities
|
|
16,952
|
|
|
16,545
|
|
||
Foreign government
|
|
3,861
|
|
|
3,554
|
|
||
Total
|
|
$
|
109,394
|
|
|
$
|
115,583
|
|
|
|
|
|
|
TABLE 33: CLIENT DEPOSITS
|
|||||||||||||||
|
|
|
Average Balance
|
||||||||||||
|
December 31,
|
|
Year Ended December 31,
|
||||||||||||
(In millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Client deposits
(1)
|
$
|
177,907
|
|
|
$
|
195,276
|
|
|
$
|
171,425
|
|
|
$
|
167,470
|
|
|
|
|
|
TABLE 34: CREDIT RATINGS
|
|||||||
|
As of December 31, 2015
|
||||||
|
Standard &
Poor’s
|
|
Moody’s
Investors
Service
|
|
Fitch
|
|
Dominion Bond Rating Service
|
State Street:
|
|
|
|
|
|
|
|
Short-term commercial paper
|
A-1
|
|
P-1
|
|
F1+
|
|
R-1 (Middle)
|
Senior debt
|
A
|
|
A2
|
|
AA-
|
|
AA (Low)
|
Subordinated debt
|
A-
|
|
A2
|
|
A+
|
|
A (High)
|
Trust preferred capital securities
|
BBB
|
|
A3
|
|
BBB+
|
|
A (High)
|
Preferred stock
|
BBB
|
|
Baa1
|
|
BBB
|
|
A (Low)
|
Outlook
|
Stable
|
|
Stable
|
|
Stable
|
|
Stable
|
State Street Bank:
|
|
|
|
|
|
|
|
Short-term deposits
|
A-1+
|
|
P-1
|
|
F1+
|
|
R-1 (High)
|
Long-term deposits
|
AA-
|
|
Aa2
|
|
AA+
|
|
AA
|
Senior debt
|
AA-
|
|
A1
|
|
AA
|
|
AA
|
Long-term counterparty/issuer
|
AA-
|
|
A1
|
|
AA
|
|
-
|
Subordinated debt
|
A
|
|
A1
|
|
A+
|
|
AA (Low)
|
Outlook
|
Stable
|
|
Stable
|
|
Stable
|
|
Stable
|
TABLE 35: LONG-TERM CONTRACTUAL CASH OBLIGATIONS
|
|||||||||||||||||||
|
PAYMENTS DUE BY PERIOD
|
||||||||||||||||||
As of December 31, 2015
(In millions) |
Total
|
|
Less than 1
year
|
|
1-3
years
|
|
4-5
years
|
|
Over 5
years
|
||||||||||
Long-term debt
(1) (2)
|
$
|
13,408
|
|
|
$
|
1,729
|
|
|
$
|
2,480
|
|
|
$
|
2,172
|
|
|
$
|
7,027
|
|
Operating leases
|
1,300
|
|
|
198
|
|
|
362
|
|
|
242
|
|
|
498
|
|
|||||
Capital lease obligations
(2)
|
384
|
|
|
58
|
|
|
110
|
|
|
91
|
|
|
125
|
|
|||||
Total contractual cash obligations
|
$
|
15,092
|
|
|
$
|
1,985
|
|
|
$
|
2,952
|
|
|
$
|
2,505
|
|
|
$
|
7,650
|
|
|
|
|
|
•
|
Obligations which will be settled in cash, primarily in less than one year, such as client deposits, federal funds purchased, securities sold under repurchase agreements and other short-term borrowings. Additional information about deposits, federal funds purchased, securities sold under repurchase agreements and other short-term borrowings is provided in Notes
8
and
9
to the consolidated financial statements included under Item 8 of this Form 10-K.
|
•
|
Obligations related to derivative instruments because the derivative-related amounts recorded in our consolidated statement of condition as of
December 31, 2015
did not represent the amounts that may ultimately be paid under the contracts upon settlement. Additional information about our derivative instruments is provided in Note
10
to the consolidated financial statements included under Item 8 of this Form 10-K. We have obligations under pension and other post-retirement benefit plans, more fully described in Note
19
to the consolidated financial statements included under Item 8 of this Form 10-K, which are not included in
Table 35: Long-Term Contractual Cash Obligations
.
|
TABLE 36: OTHER COMMERCIAL COMMITMENTS
|
|
|
|
|
|||||||||||||||
|
DURATION OF COMMITMENT
|
||||||||||||||||||
As of December 31, 2015
(In millions) |
Total
amounts
committed
(1)
|
|
Less than
1 year
|
|
1-3
years
|
|
4-5
years
|
|
Over 5
years
|
||||||||||
Indemnified securities financing
|
$
|
320,436
|
|
|
$
|
320,436
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Unfunded commitments to extend credit
|
22,580
|
|
|
17,225
|
|
|
2,528
|
|
|
2,665
|
|
|
162
|
|
|||||
Asset purchase agreements
|
3,990
|
|
|
1,271
|
|
|
1,922
|
|
|
797
|
|
|
—
|
|
|||||
Standby letters of credit
|
4,700
|
|
|
1,276
|
|
|
2,548
|
|
|
876
|
|
|
—
|
|
|||||
Purchase obligations
(2)
|
304
|
|
|
53
|
|
|
89
|
|
|
68
|
|
|
94
|
|
|||||
Total commercial commitments
|
$
|
352,010
|
|
|
$
|
340,261
|
|
|
$
|
7,087
|
|
|
$
|
4,406
|
|
|
$
|
256
|
|
|
|
|
|
•
|
A common understanding of operational risk management and its supporting processes;
|
•
|
The clarification of responsibilities for the management of operational risk across State Street;
|
•
|
The alignment of business priorities with risk management objectives;
|
•
|
The active management of risk and early identification of emerging risks;
|
•
|
The consistent application of policies and the collection of data for risk management and measurement; and
|
•
|
The estimation of our operational risk capital requirement.
|
•
|
The global head of Operational Risk, a member of the CRO’s executive management team, leads ERM’s corporate ORM group.
ORM is responsible for the strategy, evolution and consistent implementation of our operational risk guidelines, framework and supporting tools across State Street. ORM reviews and analyzes operational key risk information, events, metrics and indicators at the business unit and corporate level for purposes of risk management, reporting and escalation to the CRO, senior management and governance committees;
|
•
|
ERM’s Corporate Risk Analytics group develops and maintains operational risk capital estimation models, and ERM's Operations group calculates State Street's required capital for operational risk;
|
•
|
ERM’s
MVG
independently validates the quantitative models used to measure operational risk, and ORM performs validation checks on the output of the model;
|
•
|
CIS establishes the framework, policies and related programs to measure, monitor and report on information security risks, including the effectiveness of cyber security program protections.
|
•
|
Corporate Audit performs separate reviews of the application of operational risk management practices and methodologies utilized across State Street.
|
•
|
The
RCSA
program seeks to understand the risks associated with day-to-day activities, and the effectiveness of controls intended to manage potential exposures arising from these activities. These risks are typically frequent in nature but generally not severe in terms of exposure;
|
•
|
The Material Risk Identification process utilizes a bottom-up approach to identify State Street’s most significant risk exposures across all on- and off-balance sheet risk-taking activities. The program is specifically designed to consider risks that could have a material impact irrespective of their likelihood or frequency. This can include risks that may have an impact on longer-term business objectives, such as significant change management activities or long-term strategic initiatives;
|
•
|
The Scenario Analysis program focuses on the set of risks with the highest severity and most relevance from a capital perspective. These are generally referred to as “tail risks," and serve as important benchmarks for our loss distribution approach model (see below); they also provide inputs into stress testing; and
|
•
|
Business-specific programs to identify, assess and measure risk, including new business and product review and approval, new client screening, and, as deemed appropriate, targeted risk assessments.
|
•
|
Internal loss event data is collected from across State Street in conformity with our operating loss policy that establishes the requirements for collecting and reporting individual loss events. We categorize the
|
•
|
External loss event data provides information with respect to loss event severity from other financial institutions to inform our capital estimation process of events in similar business units at other banking organizations. This information supplements the data pool available for use in our LDA model. Assessments of the sufficiency of internal data and the relevance of external data are completed before pooling the two data sources for use in our LDA model.
|
•
|
Scenario analysis workshops are conducted annually across State Street to inform management of the less frequent but most severe, or “tail,” risks that the organization faces. The workshops are attended by senior business unit managers, other support and control partners and business-aligned risk management staff. The workshops are designed to capture information about the significant risks and to estimate potential exposures for individual risks should a loss event occur. Workshops are aligned with specific UOMs and business units where appropriate. The results of these workshops are used to benchmark our LDA model results to determine that our calculation of required capital considers relevant risk-related information.
|
•
|
Business environment and internal control factors
are gathered as part of our scenario analysis program to inform the scenario
|
•
|
A trading market risk management process led by ERM, separate from the business units' discrete activities;
|
•
|
Clearly defined responsibilities and authorities for the primary groups involved in trading market risk management;
|
•
|
A trading market risk measurement methodology that captures correlation effects and allows aggregation of market risk across risk types, markets and business lines;
|
•
|
Daily monitoring, analysis, and reporting of market risk exposures associated with trading activities against market risk limits;
|
•
|
A defined limit structure and escalation process in the event of a market risk limit excess;
|
•
|
Use of VaR models to measure the one-day market risk exposure of trading positions;
|
•
|
Use of VaR as a ten-day-based regulatory capital measure of the market risk exposure of trading positions;
|
•
|
Use of non-VaR-based limits and other controls;
|
•
|
Use of stressed-VaR models, stress-testing analysis and scenario analysis to support the trading market risk measurement and management process by assessing how portfolios and global business lines perform under extreme market conditions;
|
•
|
Use of back-testing as a diagnostic tool to assess the accuracy of VaR models and other risk management techniques; and
|
•
|
A new product approval process that requires market risk teams to assess trading-related market risks and apply risk tolerance limits to proposed new products and business activities.
|
•
|
Compared to a shorter observation period, a two-year observation period is slower to reflect increases in market volatility (although temporary increases in market volatility will affect the calculation of VaR for a longer period); consequently, in periods of sudden increases in volatility or increasing volatility, in each case relative to the prior two-year period, the calculation of VaR may understate current risk;
|
•
|
Compared to a longer observation period, a two-year observation period may not reflect as many past periods of volatility in the markets, because such past volatility is no longer in the observation period; consequently, historical market scenarios of high volatility, even if similar to current or likely future market circumstances, may fall outside the two-year observation period, resulting in a potential understatement of current risk;
|
•
|
The VaR-based measure is calibrated to a specified level of confidence and does not indicate the potential magnitude of losses beyond this confidence level;
|
•
|
In certain cases, VaR-based measures approximate the impact of changes in risk factors on the values of positions and portfolios; this may happen because the number of inputs included in the VaR model is necessarily limited; for example, yield curve risk factors do not exist for all future dates;
|
•
|
The use of historical market information may not be predictive of future events, particularly those that are extreme in nature; this “backward-looking” limitation can cause VaR to understate or overstate risk;
|
•
|
The effect of extreme and rare market movements is difficult to estimate; this may result from non-linear risk sensitivities as well as the potential for actual volatility and correlation levels to differ from assumptions implicit in the VaR calculations; and
|
•
|
Intra-day risk is not captured.
|
TABLE 37: TEN-DAY VaR ASSOCIATED WITH TRADING ACTIVITIES FOR COVERED POSITIONS
|
|||||||||||||||||||||||||||||||
|
Year Ended December 31, 2015
|
|
Year Ended December 31, 2014
|
|
As of December 31, 2015
|
|
As of December 31, 2014
|
||||||||||||||||||||||||
(In thousands)
|
Average
|
|
Maximum
|
|
Minimum
|
|
Average
|
|
Maximum
|
|
Minimum
|
|
VaR
|
|
VaR
|
||||||||||||||||
Global Markets
|
$
|
5,279
|
|
|
$
|
17,649
|
|
|
$
|
2,977
|
|
|
$
|
6,365
|
|
|
$
|
12,327
|
|
|
$
|
2,273
|
|
|
$
|
4,269
|
|
|
$
|
4,566
|
|
Global Treasury
|
1,517
|
|
|
5,273
|
|
|
333
|
|
|
4,027
|
|
|
6,467
|
|
|
683
|
|
|
368
|
|
|
4,759
|
|
||||||||
Total VaR
|
$
|
5,733
|
|
|
$
|
16,700
|
|
|
$
|
2,912
|
|
|
$
|
8,100
|
|
|
$
|
12,278
|
|
|
$
|
3,244
|
|
|
$
|
4,052
|
|
|
$
|
8,281
|
|
TABLE 38: TEN-DAY STRESSED VaR ASSOCIATED WITH TRADING ACTIVITIES FOR COVERED POSITIONS
|
|||||||||||||||||||||||||||||||
|
Year Ended December 31, 2015
|
|
Year Ended December 31, 2014
|
|
As of December 31, 2015
|
|
As of December 31, 2014
|
||||||||||||||||||||||||
(In thousands)
|
Average
|
|
Maximum
|
|
Minimum
|
|
Average
|
|
Maximum
|
|
Minimum
|
|
Stressed VaR
|
|
Stressed VaR
|
||||||||||||||||
Global Markets
|
$
|
39,524
|
|
|
$
|
65,860
|
|
|
$
|
20,601
|
|
|
$
|
32,639
|
|
|
$
|
64,510
|
|
|
$
|
15,625
|
|
|
$
|
36,757
|
|
|
$
|
30,255
|
|
Global Treasury
|
27,626
|
|
|
47,929
|
|
|
8,028
|
|
|
36,344
|
|
|
59,253
|
|
|
10,454
|
|
|
8,080
|
|
|
39,050
|
|
||||||||
Total Stressed VaR
|
$
|
63,149
|
|
|
$
|
95,692
|
|
|
$
|
35,557
|
|
|
$
|
61,874
|
|
|
$
|
89,053
|
|
|
$
|
29,689
|
|
|
$
|
43,293
|
|
|
$
|
58,945
|
|
TABLE 39: TEN-DAY VaR ASSOCIATED WITH TRADING ACTIVITIES BY RISK FACTOR
(1)
|
|||||||||||||||||||||||
|
As of December 31, 2015
|
|
As of December 31, 2014
|
||||||||||||||||||||
(In thousands)
|
Foreign Exchange Risk
|
|
Interest Rate Risk
|
|
Volatility Risk
|
|
Foreign Exchange Risk
|
|
Interest Rate Risk
|
|
Volatility Risk
|
||||||||||||
By component:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Global Markets
|
$
|
2,817
|
|
|
$
|
3,582
|
|
|
$
|
4
|
|
|
$
|
5,584
|
|
|
$
|
3,230
|
|
|
$
|
349
|
|
Global Treasury
|
148
|
|
|
345
|
|
|
—
|
|
|
—
|
|
|
4,759
|
|
|
—
|
|
||||||
Total VaR
|
$
|
2,831
|
|
|
$
|
3,472
|
|
|
$
|
4
|
|
|
$
|
5,584
|
|
|
$
|
5,892
|
|
|
$
|
349
|
|
TABLE 40: TEN-DAY STRESSED VaR ASSOCIATED WITH TRADING ACTIVITIES BY RISK FACTOR
(1)
|
|||||||||||||||||||||||
|
As of December 31, 2015
|
|
As of December 31, 2014
|
||||||||||||||||||||
(In thousands)
|
Foreign Exchange Risk
|
|
Interest Rate Risk
|
|
Volatility Risk
|
|
Foreign Exchange Risk
|
|
Interest Rate Risk
|
|
Volatility Risk
|
||||||||||||
By component:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Global Markets
|
$
|
13,199
|
|
|
$
|
40,928
|
|
|
$
|
7
|
|
|
$
|
8,305
|
|
|
$
|
39,220
|
|
|
$
|
468
|
|
Global Treasury
|
176
|
|
|
7,963
|
|
|
—
|
|
|
—
|
|
|
39,050
|
|
|
—
|
|
||||||
Total Stressed VaR
|
$
|
12,939
|
|
|
$
|
47,658
|
|
|
$
|
7
|
|
|
$
|
8,305
|
|
|
$
|
62,923
|
|
|
$
|
468
|
|
|
|
|
TABLE 41: NIR ESTIMATED EXPOSURE
|
|||||||||||||
|
Estimated Exposure to
Net Interest Revenue
|
||||||||||||
(Dollars in millions)
|
December 31,
2015 |
|
December 31,
2014 |
||||||||||
Rate change:
|
Exposure
|
|
% of Base NIR
|
|
Exposure
|
|
% of Base NIR
|
||||||
+100 bps shock
|
$
|
471
|
|
|
20.8
|
%
|
|
$
|
384
|
|
|
16.6
|
%
|
–100 bps shock
|
(181
|
)
|
|
(8.0
|
)
|
|
(328
|
)
|
|
(14.2
|
)
|
||
+100 bps ramp
|
198
|
|
|
8.8
|
|
|
149
|
|
|
6.5
|
|
||
–100 bps ramp
|
(96
|
)
|
|
(4.2
|
)
|
|
(192
|
)
|
|
(8.3
|
)
|
TABLE 42: ESTIMATED EVE EXPOSURES
|
|||||||||||||
|
Estimated Sensitivity of
Economic Value of Equity
|
||||||||||||
(Dollars in millions)
|
December 31,
2015 |
|
December 31,
2014 |
||||||||||
Rate change:
|
Exposure
|
|
% of Tier 1/Tier 2 Capital
|
|
Exposure
|
|
% of Tier 1/Tier 2 Capital
|
||||||
+200 bps shock
|
$
|
(2,355
|
)
|
|
(13.4
|
)%
|
|
$
|
(2,291
|
)
|
|
(12.8
|
)%
|
–200 bps shock
|
1,655
|
|
|
9.4
|
|
|
942
|
|
|
5.3
|
|
•
|
A model risk governance program that defines roles and responsibilities, including the authority to restrict model usage, provides policies and guidance, monitors compliance, and reports regularly to the Board on the overall degree of model risk across the corporation;
|
•
|
A model development process that focuses on sound design and computational accuracy, and includes activities designed to test for robustness, stability, and sensitivity to assumptions; and
|
•
|
An independent model validation function designed to verify that models are conceptually sound, computationally accurate, are performing as expected, and are in line with their design objectives.
|
•
|
Risk Management - identification, measurement, monitoring and forecasting of different types of risk and their combined impact on capital adequacy;
|
•
|
Capital Management - determination of optimal capital levels; and
|
•
|
Business Management - strategic planning, budgeting, forecasting, and performance management.
|
TABLE 43: BASEL III FINAL RULES TRANSITION ARRANGEMENTS AND MINIMUM RISK-BASED CAPITAL RATIOS
(1),(2)
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|||||
Capital conservation buffer (Common Equity Tier 1)
|
|
—
|
%
|
|
0.625
|
%
|
|
1.250
|
%
|
|
1.875
|
%
|
|
2.500
|
%
|
G-SIB surcharge (CET1)
(1)
|
|
—
|
|
|
0.375
|
|
|
0.750
|
|
|
1.125
|
|
|
1.500
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Minimum common equity tier 1
(3)
|
|
4.5
|
|
|
5.500
|
|
|
6.500
|
|
|
7.500
|
|
|
8.500
|
|
Minimum tier 1 capital
(3)
|
|
6.0
|
|
|
7.000
|
|
|
8.000
|
|
|
9.000
|
|
|
10.000
|
|
Minimum total capital
(3)
|
|
8.0
|
|
|
9.000
|
|
|
10.000
|
|
|
11.000
|
|
|
12.000
|
|
|
|
|
|
TABLE 44: REGULATORY CAPITAL STRUCTURE AND RELATED REGULATORY CAPITAL RATIOS
|
|||||||||||||||||||||||||||||||||||
|
|
|
State Street
|
|
State Street Bank
|
||||||||||||||||||||||||||||||
(Dollars in millions)
|
|
Basel III Advanced Approaches December 31, 2015
(1)
|
|
Basel III Standardized Approach December 31, 2015
(2)
|
|
Basel III Advanced Approaches December 31, 2014
(1)
|
|
Basel III Transitional Approach December 31, 2014
(3)
|
|
Basel III Advanced Approaches December 31, 2015
(1)
|
|
Basel III Standardized Approach December 31, 2015
(2)
|
|
Basel III Advanced Approaches December 31, 2014
(1)
|
|
Basel III Transitional Approach December 31, 2014
(3)
|
|||||||||||||||||||
Common shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Common stock and related surplus
|
|
$
|
10,250
|
|
|
$
|
10,250
|
|
|
$
|
10,295
|
|
|
$
|
10,295
|
|
|
$
|
10,938
|
|
|
$
|
10,938
|
|
|
$
|
10,867
|
|
|
$
|
10,867
|
|
|||
Retained earnings
(8)
|
|
16,049
|
|
|
16,049
|
|
|
14,737
|
|
|
14,737
|
|
|
10,655
|
|
|
10,655
|
|
|
9,270
|
|
|
9,270
|
|
|||||||||||
Accumulated other comprehensive income (loss)
|
|
(1,422
|
)
|
|
(1,422
|
)
|
|
(642
|
)
|
|
(642
|
)
|
|
(1,230
|
)
|
|
(1,230
|
)
|
|
(536
|
)
|
|
(536
|
)
|
|||||||||||
Treasury stock, at cost
|
|
(6,457
|
)
|
|
(6,457
|
)
|
|
(5,158
|
)
|
|
(5,158
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Total
(8)
|
|
|
18,420
|
|
|
18,420
|
|
|
19,232
|
|
|
19,232
|
|
|
20,363
|
|
|
20,363
|
|
|
19,601
|
|
|
19,601
|
|
||||||||||
Regulatory capital adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Goodwill and other intangible assets, net of associated deferred tax liabilities
(4)
|
|
(5,927
|
)
|
|
(5,927
|
)
|
|
(5,869
|
)
|
|
(5,869
|
)
|
|
(5,631
|
)
|
|
(5,631
|
)
|
|
(5,577
|
)
|
|
(5,577
|
)
|
|||||||||||
Other adjustments
|
|
(60
|
)
|
|
(60
|
)
|
|
(36
|
)
|
|
(36
|
)
|
|
(85
|
)
|
|
(85
|
)
|
|
(128
|
)
|
|
(128
|
)
|
|||||||||||
Common equity tier 1 capital
(8)
|
|
12,433
|
|
|
12,433
|
|
|
13,327
|
|
|
13,327
|
|
|
14,647
|
|
|
14,647
|
|
|
13,896
|
|
|
13,896
|
|
|||||||||||
Preferred stock
|
|
2,703
|
|
|
2,703
|
|
|
1,961
|
|
|
1,961
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Trust preferred capital securities subject to phase-out from tier 1 capital
|
|
237
|
|
|
237
|
|
|
475
|
|
|
475
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Other adjustments
|
|
(109
|
)
|
|
(109
|
)
|
|
(145
|
)
|
|
(145
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Tier 1 capital
(8)
|
|
|
15,264
|
|
|
15,264
|
|
|
15,618
|
|
|
15,618
|
|
|
14,647
|
|
|
14,647
|
|
|
13,896
|
|
|
13,896
|
|
||||||||||
Qualifying subordinated long-term debt
|
|
1,358
|
|
|
1,358
|
|
|
1,618
|
|
|
1,618
|
|
|
1,371
|
|
|
1,371
|
|
|
1,634
|
|
|
1,634
|
|
|||||||||||
Trust preferred capital securities phased out of tier 1 capital
|
|
713
|
|
|
713
|
|
|
475
|
|
|
475
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
ALLL and other
|
|
12
|
|
|
66
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
66
|
|
|
—
|
|
|
—
|
|
|||||||||||
Other adjustments
|
|
2
|
|
|
2
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Total capital
(8)
|
|
|
$
|
17,349
|
|
|
$
|
17,403
|
|
|
$
|
17,715
|
|
|
$
|
17,715
|
|
|
$
|
16,026
|
|
|
$
|
16,084
|
|
|
$
|
15,530
|
|
|
$
|
15,530
|
|
||
Risk-weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Credit risk
|
|
|
$
|
51,733
|
|
|
$
|
93,515
|
|
|
$
|
66,874
|
|
|
$
|
87,502
|
|
|
$
|
47,677
|
|
|
$
|
89,164
|
|
|
$
|
59,836
|
|
|
$
|
84,433
|
|
||
Operational risk
|
|
|
43,882
|
|
|
NA
|
|
|
35,866
|
|
|
NA
|
|
|
43,324
|
|
|
NA
|
|
|
35,449
|
|
|
NA
|
|
||||||||||
Market risk
(5)
|
|
|
3,937
|
|
|
2,378
|
|
|
5,087
|
|
|
2,910
|
|
|
3,939
|
|
|
2,378
|
|
|
5,048
|
|
|
2,909
|
|
||||||||||
Total risk-weighted assets
|
|
$
|
99,552
|
|
|
$
|
95,893
|
|
|
$
|
107,827
|
|
|
$
|
90,412
|
|
|
$
|
94,940
|
|
|
$
|
91,542
|
|
|
$
|
100,333
|
|
|
$
|
87,342
|
|
|||
Adjusted quarterly average assets
|
|
$
|
221,880
|
|
|
$
|
221,880
|
|
|
$
|
247,740
|
|
|
$
|
247,740
|
|
|
$
|
217,358
|
|
|
$
|
217,358
|
|
|
$
|
243,549
|
|
|
$
|
243,549
|
|
|||
Capital Ratios:
(8)
|
Minimum Requirements
(6)
2015
|
Minimum Requirements
(7)
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Common equity tier 1 capital
|
4.5
|
%
|
4.0
|
%
|
12.5
|
%
|
|
13.0
|
%
|
|
12.4
|
%
|
|
14.7
|
%
|
|
15.4
|
%
|
|
16.0
|
%
|
|
13.8
|
%
|
|
15.9
|
%
|
||||||||
Tier 1 capital
|
6.0
|
|
5.5
|
|
15.3
|
|
|
15.9
|
|
|
14.5
|
|
|
17.3
|
|
|
15.4
|
|
|
16.0
|
|
|
13.8
|
|
|
15.9
|
|
||||||||
Total capital
|
8.0
|
|
8.0
|
|
17.4
|
|
|
18.1
|
|
|
16.4
|
|
|
19.6
|
|
|
16.9
|
|
|
17.6
|
|
|
15.5
|
|
|
17.8
|
|
||||||||
Tier 1 leverage
|
4.0
|
|
4.0
|
|
6.9
|
|
|
6.9
|
|
|
6.3
|
|
|
6.3
|
|
|
6.7
|
|
|
6.7
|
|
|
5.7
|
|
|
5.7
|
|
|
|
|
|
TABLE 45: CAPITAL ROLL-FORWARD
|
|||||||||||
|
State Street
|
||||||||||
(In millions)
|
Basel III Advanced Approaches December 31, 2015
|
|
Basel III Standardized Approach December 31, 2015
|
|
Twelve Months Ended December 31, 2014
|
||||||
Common equity tier 1 capital:
|
|
|
|
|
|
||||||
Common equity tier 1 capital balance, beginning of period
(1)
|
$
|
13,327
|
|
|
$
|
13,327
|
|
|
$
|
12,252
|
|
Net income
(1)
|
1,980
|
|
|
1,980
|
|
|
2,022
|
|
|||
Changes in treasury stock, at cost
|
(1,299
|
)
|
|
(1,299
|
)
|
|
(1,465
|
)
|
|||
Dividends declared
|
(666
|
)
|
|
(666
|
)
|
|
(551
|
)
|
|||
Goodwill and other intangible assets, net of associated deferred tax liabilities
|
(58
|
)
|
|
(58
|
)
|
|
1,874
|
|
|||
Effect of certain items in accumulated other comprehensive income (loss)
|
(780
|
)
|
|
(780
|
)
|
|
(857
|
)
|
|||
Other adjustments
|
(71
|
)
|
|
(71
|
)
|
|
52
|
|
|||
Changes in common equity tier 1 capital
|
(894
|
)
|
|
(894
|
)
|
|
1,075
|
|
|||
Common equity tier 1 capital balance, end of period
(1)
|
12,433
|
|
|
12,433
|
|
|
13,327
|
|
|||
Additional tier 1 capital:
|
|
|
|
|
|
||||||
Tier 1 capital balance, beginning of period
(1)
|
15,618
|
|
|
15,618
|
|
|
13,693
|
|
|||
Change in common equity tier 1 capital
|
(894
|
)
|
|
(894
|
)
|
|
1,075
|
|
|||
Net issuance of preferred stock
|
742
|
|
|
742
|
|
|
1,470
|
|
|||
Trust preferred capital securities phased out of tier 1 capital
|
(238
|
)
|
|
(238
|
)
|
|
(475
|
)
|
|||
Other adjustments
|
36
|
|
|
36
|
|
|
(145
|
)
|
|||
Changes in tier 1 capital
|
(354
|
)
|
|
(354
|
)
|
|
1,925
|
|
|||
Tier 1 capital balance, end of period
(1)
|
15,264
|
|
|
15,264
|
|
|
15,618
|
|
|||
Tier 2 capital:
|
|
|
|
|
|
||||||
Tier 2 capital balance, beginning of period
|
2,097
|
|
|
2,097
|
|
|
1,892
|
|
|||
Net issuance and changes in long-term debt qualifying as tier 2
|
(260
|
)
|
|
(260
|
)
|
|
(300
|
)
|
|||
Trust preferred capital securities phased into tier 2 capital
|
238
|
|
|
238
|
|
|
475
|
|
|||
Changes in ALLL and other
|
12
|
|
|
66
|
|
|
—
|
|
|||
Change in other adjustments
|
(2
|
)
|
|
(2
|
)
|
|
30
|
|
|||
Changes in tier 2 capital
|
(12
|
)
|
|
42
|
|
|
205
|
|
|||
Tier 2 capital balance, end of period
|
2,085
|
|
|
2,139
|
|
|
2,097
|
|
|||
Total capital:
|
|
|
|
|
|
||||||
Total capital balance, beginning of period
(1)
|
17,715
|
|
|
17,715
|
|
|
15,585
|
|
|||
Changes in tier 1 capital
|
(354
|
)
|
|
(354
|
)
|
|
1,925
|
|
|||
Changes in tier 2 capital
|
(12
|
)
|
|
42
|
|
|
205
|
|
|||
Total capital balance, end of period
(1)
|
$
|
17,349
|
|
|
$
|
17,403
|
|
|
$
|
17,715
|
|
TABLE 46: ADVANCED APPROACHES RWA ROLL-FORWARD
|
||||||||
|
|
State Street
|
||||||
(In millions)
|
|
December 31, 2015
|
|
December 31, 2014
|
||||
Total risk-weighted assets, beginning of period
|
|
$
|
107,827
|
|
|
$
|
111,015
|
|
Changes in credit risk-weighted assets
|
|
|
|
|
||||
Net increase (decrease) in investment securities-wholesale
|
|
597
|
|
|
(1,082
|
)
|
||
Net increase (decrease) in loans and leases
|
|
(944
|
)
|
|
1,381
|
|
||
Net increase (decrease) in securitization exposures
|
|
(9,569
|
)
|
|
(5,949
|
)
|
||
Net increase (decrease) in repo-style transaction exposures
|
|
842
|
|
|
99
|
|
||
Net increase (decrease) in OTC derivatives exposures
|
|
(1,317
|
)
|
|
444
|
|
||
Net increase (decrease) in all other
(1)
|
|
(4,750
|
)
|
|
888
|
|
||
Net increase (decrease) in credit risk-weighted assets
|
|
(15,141
|
)
|
|
(4,219
|
)
|
||
Net increase (decrease) in credit valuation adjustment
|
|
(618
|
)
|
|
(80
|
)
|
||
Net increase (decrease) in market risk-weighted assets
|
|
(532
|
)
|
|
1,230
|
|
||
Net increase (decrease) in operational risk-weighted assets
|
|
8,016
|
|
|
(119
|
)
|
||
Total risk-weighted assets, end of period
|
|
$
|
99,552
|
|
|
$
|
107,827
|
|
|
|
|
TABLE 47: STANDARDIZED APPROACH RWA ROLL-FORWARD
|
||||
|
State Street
|
|||
(In millions)
|
|
Twelve Months Ended December 31, 2015
|
||
Total estimated risk-weighted assets, beginning of period
(1)
|
|
$
|
125,011
|
|
Changes in credit risk-weighted assets:
|
|
|
||
Net increase (decrease) in investment securities- wholesale
|
|
(2,579
|
)
|
|
Net increase (decrease) in loans and leases
|
|
(539
|
)
|
|
Net increase (decrease) in securitization exposures
|
|
(9,569
|
)
|
|
Net increase (decrease) in repo-style transaction exposures
|
|
(7,535
|
)
|
|
Net increase (decrease) in OTC derivatives exposures
|
|
(4,007
|
)
|
|
Net increase (decrease) in all other
(2)
|
|
(4,357
|
)
|
|
Net increase (decrease) in credit risk-weighted assets
|
|
(28,586
|
)
|
|
Net increase (decrease) in market risk-weighted assets
|
|
(532
|
)
|
|
Total risk-weighted assets, end of period
|
|
$
|
95,893
|
|
|
|
|
TABLE 48: REGULATORY CAPITAL STRUCTURE AND RELATED REGULATORY CAPITAL RATIOS - STATE STREET
|
|||||||||||||||||||||||||||
December 31, 2015 (Dollars in millions)
|
|
|
|
|
Basel III Advanced Approaches
|
|
Phase-In Provisions
|
|
Basel III Advanced Approaches Fully Phased-In Pro-Forma Estimate
(1)
|
|
Basel III Standardized Approach
|
|
Phase-In Provisions
|
|
Basel III Standardized Approach Fully Phased-In Pro-Forma Estimate
(1)
|
||||||||||||
Total common shareholders' equity
|
|
|
|
|
$
|
18,420
|
|
|
$
|
(21
|
)
|
|
$
|
18,399
|
|
|
$
|
18,420
|
|
|
$
|
(21
|
)
|
|
$
|
18,399
|
|
Regulatory capital adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill and other intangible assets, net of associated deferred tax liabilities
|
|
|
|
|
(5,927
|
)
|
|
(818
|
)
|
|
(6,745
|
)
|
|
(5,927
|
)
|
|
(818
|
)
|
|
(6,745
|
)
|
||||||
Other adjustments
|
|
|
|
|
(60
|
)
|
|
(90
|
)
|
|
(150
|
)
|
|
(60
|
)
|
|
(90
|
)
|
|
(150
|
)
|
||||||
Common equity tier 1 capital
|
|
|
|
|
12,433
|
|
|
(929
|
)
|
|
11,504
|
|
|
12,433
|
|
|
(929
|
)
|
|
11,504
|
|
||||||
Additional tier 1 capital:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Preferred stock
|
|
|
|
|
2,703
|
|
|
—
|
|
|
2,703
|
|
|
2,703
|
|
|
—
|
|
|
2,703
|
|
||||||
Trust preferred capital securities
|
|
|
|
|
237
|
|
|
(237
|
)
|
|
—
|
|
|
237
|
|
|
(237
|
)
|
|
—
|
|
||||||
Other adjustments
|
|
|
|
|
(109
|
)
|
|
90
|
|
|
(19
|
)
|
|
(109
|
)
|
|
90
|
|
|
(19
|
)
|
||||||
Additional tier 1 capital
|
|
|
|
|
2,831
|
|
|
(147
|
)
|
|
2,684
|
|
|
2,831
|
|
|
(147
|
)
|
|
2,684
|
|
||||||
Tier 1 capital
|
|
|
|
|
15,264
|
|
|
(1,076
|
)
|
|
14,188
|
|
|
15,264
|
|
|
(1,076
|
)
|
|
14,188
|
|
||||||
Tier 2 capital:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Qualifying subordinated long-term debt
|
|
|
|
|
1,358
|
|
|
—
|
|
|
1,358
|
|
|
1,358
|
|
|
—
|
|
|
1,358
|
|
||||||
Trust preferred capital securities
|
|
|
|
|
713
|
|
|
132
|
|
|
845
|
|
|
713
|
|
|
132
|
|
|
845
|
|
||||||
ALLL and other
|
|
|
|
|
12
|
|
|
—
|
|
|
12
|
|
|
66
|
|
|
—
|
|
|
66
|
|
||||||
Other
|
|
|
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
||||||
Tier 2 capital
|
|
|
|
|
2,085
|
|
|
130
|
|
|
2,215
|
|
|
2,139
|
|
|
130
|
|
|
2,269
|
|
||||||
Total capital
|
|
|
|
|
$
|
17,349
|
|
|
$
|
(946
|
)
|
|
$
|
16,403
|
|
|
$
|
17,403
|
|
|
$
|
(946
|
)
|
|
$
|
16,457
|
|
Risk weighted assets
|
|
|
|
|
$
|
99,552
|
|
|
$
|
(406
|
)
|
|
$
|
99,146
|
|
|
$
|
95,893
|
|
|
$
|
(382
|
)
|
|
$
|
95,511
|
|
Adjusted average assets
|
|
|
|
|
221,880
|
|
|
(545
|
)
|
|
221,335
|
|
|
221,880
|
|
|
(545
|
)
|
|
221,335
|
|
||||||
Total assets for SLR
|
|
|
|
|
246,857
|
|
|
(545
|
)
|
|
246,312
|
|
|
246,857
|
|
|
(545
|
)
|
|
246,312
|
|
||||||
Capital ratios
(2)
:
|
Minimum Requirement 2015
|
Minimum Requirement 2019
|
Minimum Requirement Including Capital Conservation Buffer of 2.5% and G-SIB 1.5% 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Common equity tier 1 capital
(3)
|
4.5%
|
4.5%
|
8.5%
|
|
12.5
|
%
|
|
|
|
11.6
|
%
|
|
13.0
|
%
|
|
|
|
12.0
|
%
|
||||||||
Tier 1 capital
|
6.0
|
6.0
|
10.0
|
|
15.3
|
|
|
|
|
14.3
|
|
|
15.9
|
|
|
|
|
14.9
|
|
||||||||
Total capital
|
8.0
|
8.0
|
12.0
|
|
17.4
|
|
|
|
|
16.5
|
|
|
18.1
|
|
|
|
|
17.2
|
|
||||||||
Tier 1 leverage
|
4.0
|
4.0
|
NA
|
|
6.9
|
|
|
|
|
6.4
|
|
|
6.9
|
|
|
|
|
6.4
|
|
||||||||
Supplementary leverage
|
NA
|
5.0
|
NA
|
|
6.2
|
|
|
|
|
5.8
|
|
|
6.2
|
|
|
|
|
5.8
|
|
|
|
|
|
|
TABLE 49: REGULATORY CAPITAL STRUCTURE AND RELATED REGULATORY CAPITAL RATIOS - STATE STREET BANK
|
|||||||||||||||||||||||||||
December 31, 2015 (Dollars in millions)
|
|
|
|
|
Basel III Advanced Approaches
|
|
Phase-In Provisions
|
|
Basel III Advanced Approaches Fully Phased-In Pro-Forma Estimate
(1)
|
|
Basel III Standardized Approach
|
|
Phase-In Provisions
|
|
Basel III Standardized Approach Fully Phased-In Pro-Forma Estimate
(1)
|
||||||||||||
Total common shareholders' equity
|
|
|
|
|
$
|
20,363
|
|
|
$
|
(9
|
)
|
|
$
|
20,354
|
|
|
$
|
20,363
|
|
|
$
|
(9
|
)
|
|
$
|
20,354
|
|
Regulatory capital adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill and other intangible assets, net of associated deferred tax liabilities
|
|
|
|
|
(5,631
|
)
|
|
(769
|
)
|
|
(6,400
|
)
|
|
(5,631
|
)
|
|
(769
|
)
|
|
(6,400
|
)
|
||||||
Other adjustments
|
|
|
|
|
(85
|
)
|
|
—
|
|
|
(85
|
)
|
|
(85
|
)
|
|
—
|
|
|
(85
|
)
|
||||||
Common equity tier 1 capital
|
|
|
|
|
14,647
|
|
|
(778
|
)
|
|
13,869
|
|
|
14,647
|
|
|
(778
|
)
|
|
13,869
|
|
||||||
Additional tier 1 capital:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Preferred stock
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Trust preferred capital securities
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other adjustments
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Additional tier 1 capital
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Tier 1 capital
|
|
|
|
|
14,647
|
|
|
(778
|
)
|
|
13,869
|
|
|
14,647
|
|
|
(778
|
)
|
|
13,869
|
|
||||||
Tier 2 capital:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Qualifying subordinated long-term debt
|
|
|
|
|
1,371
|
|
|
—
|
|
|
1,371
|
|
|
1,371
|
|
|
—
|
|
|
1,371
|
|
||||||
Trust preferred capital securities
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
ALLL and other
|
|
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|
66
|
|
|
—
|
|
|
66
|
|
||||||
Other
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Tier 2 capital
|
|
|
|
|
1,379
|
|
|
—
|
|
|
1,379
|
|
|
1,437
|
|
|
—
|
|
|
1,437
|
|
||||||
Total capital
|
|
|
|
|
$
|
16,026
|
|
|
$
|
(778
|
)
|
|
$
|
15,248
|
|
|
$
|
16,084
|
|
|
$
|
(778
|
)
|
|
$
|
15,306
|
|
Risk weighted assets
|
|
|
|
|
$
|
94,940
|
|
|
$
|
(860
|
)
|
|
$
|
94,080
|
|
|
$
|
91,542
|
|
|
$
|
(812
|
)
|
|
$
|
90,730
|
|
Adjusted average assets
|
|
|
|
|
217,358
|
|
|
(500
|
)
|
|
216,858
|
|
|
217,358
|
|
|
(500
|
)
|
|
216,858
|
|
||||||
Total assets for SLR
|
|
|
|
|
242,200
|
|
|
(500
|
)
|
|
241,700
|
|
|
242,200
|
|
|
(500
|
)
|
|
241,700
|
|
||||||
Capital ratios
(2)
:
|
Minimum Requirement 2015
|
Minimum Requirement 2019
|
Minimum Requirement Including Capital Conservation Buffer of 2.5% and G-SIB 1.5% 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Common equity tier 1 capital
(3)
|
4.5%
|
4.5%
|
8.5%
|
|
15.4
|
%
|
|
|
|
14.7
|
%
|
|
16.0
|
%
|
|
|
|
15.3
|
%
|
||||||||
Tier 1 capital
|
6.0
|
6.0
|
10.0
|
|
15.4
|
|
|
|
|
14.7
|
|
|
16.0
|
|
|
|
|
15.3
|
|
||||||||
Total capital
|
8.0
|
8.0
|
12.0
|
|
16.9
|
|
|
|
|
16.2
|
|
|
17.6
|
|
|
|
|
16.9
|
|
||||||||
Tier 1 leverage
|
4.0
|
4.0
|
NA
|
|
6.7
|
|
|
|
|
6.4
|
|
|
6.7
|
|
|
|
|
6.4
|
|
||||||||
Supplementary leverage
|
NA
|
6.0
|
NA
|
|
6.0
|
|
|
|
|
5.7
|
|
|
6.0
|
|
|
|
|
5.7
|
|
|
|
|
|
|
TABLE 50: SUPPLEMENTARY LEVERAGE RATIO
|
||||||||||||
December 31, 2015
|
|
Transitional SLR
|
|
Phase-In Provisions
|
|
Fully Phased-in Pro Forma SLR Estimate
|
||||||
(Dollars in millions)
|
|
|
|
|||||||||
State Street:
|
|
|
|
|
|
|
||||||
Tier 1 capital
|
|
$
|
15,264
|
|
|
$
|
(1,076
|
)
|
|
$
|
14,188
|
|
On- and off-balance sheet leverage exposure
|
|
252,752
|
|
|
—
|
|
|
252,752
|
|
|||
Less: regulatory deductions
|
|
(5,895
|
)
|
|
(545
|
)
|
|
(6,440
|
)
|
|||
Total assets for SLR
|
|
$
|
246,857
|
|
|
$
|
(545
|
)
|
|
$
|
246,312
|
|
Supplementary leverage ratio
|
|
6.2
|
%
|
|
(0.4
|
)%
|
|
5.8
|
%
|
|||
|
|
|
|
|
|
|
||||||
State Street Bank:
|
|
|
|
|
|
|
||||||
Tier 1 capital
|
|
$
|
14,647
|
|
|
$
|
(778
|
)
|
|
$
|
13,869
|
|
On- and off-balance sheet leverage exposure
|
|
247,737
|
|
|
—
|
|
|
247,737
|
|
|||
Less: regulatory deductions
|
|
(5,537
|
)
|
|
(500
|
)
|
|
(6,037
|
)
|
|||
Total assets for SLR
|
|
$
|
242,200
|
|
|
$
|
(500
|
)
|
|
$
|
241,700
|
|
Supplementary leverage ratio
|
|
6.0
|
%
|
|
(0.3
|
)%
|
|
5.7
|
%
|
TABLE 51: PREFERRED STOCK ISSUED AND OUTSTANDING
|
||||||||||||||||||||
|
Issuance Date
|
|
Depositary Shares Issued
|
|
Ownership Interest per Depositary Share
|
|
Liquidation Preference Per Share
|
|
Liquidation Preference Per Depositary Share
|
|
Net Proceeds of Offering (in millions)
|
|
Redemption Date
(1)
|
|||||||
Preferred Stock:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Series C
|
August 2012
|
|
20,000,000
|
|
|
1/4,000th
|
|
$
|
100,000
|
|
|
$
|
25
|
|
|
$
|
488
|
|
|
September 15, 2017
|
Series D
|
February 2014
|
|
30,000,000
|
|
|
1/4,000th
|
|
100,000
|
|
|
25
|
|
|
742
|
|
|
March 15, 2024
|
|||
Series E
|
November 2014
|
|
30,000,000
|
|
|
1/4,000th
|
|
100,000
|
|
|
25
|
|
|
728
|
|
|
December 15, 2019
|
|||
Series F
|
May 2015
|
|
750,000
|
|
|
1/100th
|
|
100,000
|
|
|
1,000
|
|
|
742
|
|
|
September 15, 2020
|
|
|
|
|
TABLE 52: PREFERRED STOCK DIVIDENDS
|
|||||||||||||||||||||||
|
Years Ended December 31,
|
||||||||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||||||||
|
Dividends Declared
|
|
Dividends Declared per Depositary Share
|
|
Total (in millions)
|
|
Dividends Declared
|
|
Dividends Declared per Depositary Share
|
|
Total (in millions)
|
||||||||||||
Preferred Stock:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Series C
|
$
|
5,250
|
|
|
$
|
1.32
|
|
|
$
|
26
|
|
|
$
|
5,252
|
|
|
$
|
1.32
|
|
|
$
|
26
|
|
Series D
|
5,900
|
|
|
1.48
|
|
|
44
|
|
|
4,605
|
|
|
1.15
|
|
|
35
|
|
||||||
Series E
|
6,333
|
|
|
1.60
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Series F
|
1,663
|
|
|
16.63
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
|
|
|
$
|
130
|
|
|
|
|
|
|
$
|
61
|
|
TABLE 53: SHARES REPURCHASED
|
||||||||||||||||||
|
Year Ended December 31, 2015
|
|||||||||||||||||
|
Amount Authorized
(in billions)
|
|
Shares Purchased
(in millions)
|
|
Average Cost
per Share
|
|
Total Purchased
(in millions)
|
|
Amount Remaining Under the Program
(in millions)
|
|||||||||
2015 Program
|
$
|
1.8
|
|
|
14.2
|
|
|
$
|
73.72
|
|
|
$
|
1,050
|
|
|
$
|
780
|
|
2014 Program
|
1.7
|
|
|
6.3
|
|
|
74.88
|
|
|
470
|
|
|
—
|
|
||||
Total
|
|
|
20.5
|
|
|
$
|
74.07
|
|
|
$
|
1,520
|
|
|
|
TABLE 54: COMMON STOCK DIVIDENDS
|
|||||||||||||||
|
Years Ended December 31,
|
||||||||||||||
|
Dividends Declared per Share
|
|
Total (in millions)
|
|
Dividends Declared per Share
|
|
Total (in millions)
|
||||||||
|
2015
|
|
2014
|
||||||||||||
Common Stock
|
$
|
1.32
|
|
|
$
|
536
|
|
|
$
|
1.16
|
|
|
$
|
490
|
|
|
Years Ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
||||||
Fee revenue:
|
|
|
|
|
|
||||||
Servicing fees
|
$
|
5,153
|
|
|
$
|
5,108
|
|
|
$
|
4,799
|
|
Management fees
|
1,174
|
|
|
1,207
|
|
|
1,106
|
|
|||
Trading services
|
1,146
|
|
|
1,084
|
|
|
1,094
|
|
|||
Securities finance
|
496
|
|
|
437
|
|
|
359
|
|
|||
Processing fees and other
|
309
|
|
|
174
|
|
|
212
|
|
|||
Total fee revenue
|
8,278
|
|
|
8,010
|
|
|
7,570
|
|
|||
Net interest revenue:
|
|
|
|
|
|
||||||
Interest revenue
|
2,488
|
|
|
2,652
|
|
|
2,714
|
|
|||
Interest expense
|
400
|
|
|
392
|
|
|
411
|
|
|||
Net interest revenue
|
2,088
|
|
|
2,260
|
|
|
2,303
|
|
|||
Gains (losses) related to investment securities, net:
|
|
|
|
|
|
||||||
Net gains (losses) from sales of available-for-sale securities
|
(5
|
)
|
|
15
|
|
|
14
|
|
|||
Losses from other-than-temporary impairment
|
(1
|
)
|
|
(1
|
)
|
|
(21
|
)
|
|||
Losses reclassified (from) to other comprehensive income
|
—
|
|
|
(10
|
)
|
|
(2
|
)
|
|||
Gains (losses) related to investment securities, net
|
(6
|
)
|
|
4
|
|
|
(9
|
)
|
|||
Total revenue
|
10,360
|
|
|
10,274
|
|
|
9,864
|
|
|||
Provision for loan losses
|
12
|
|
|
10
|
|
|
6
|
|
|||
Expenses:
|
|
|
|
|
|
||||||
Compensation and employee benefits
|
4,061
|
|
|
4,060
|
|
|
3,800
|
|
|||
Information systems and communications
|
1,022
|
|
|
976
|
|
|
935
|
|
|||
Transaction processing services
|
793
|
|
|
784
|
|
|
733
|
|
|||
Occupancy
|
444
|
|
|
461
|
|
|
467
|
|
|||
Acquisition and restructuring costs
|
25
|
|
|
133
|
|
|
104
|
|
|||
Professional services
|
490
|
|
|
440
|
|
|
392
|
|
|||
Amortization of other intangible assets
|
197
|
|
|
222
|
|
|
214
|
|
|||
Other
|
1,018
|
|
|
751
|
|
|
547
|
|
|||
Total expenses
|
8,050
|
|
|
7,827
|
|
|
7,192
|
|
|||
Income before income tax expense
|
2,298
|
|
|
2,437
|
|
|
2,666
|
|
|||
Income tax expense
|
318
|
|
|
415
|
|
|
616
|
|
|||
Net income
|
$
|
1,980
|
|
|
$
|
2,022
|
|
|
$
|
2,050
|
|
Net income available to common shareholders
|
$
|
1,848
|
|
|
$
|
1,958
|
|
|
$
|
2,016
|
|
Earnings per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
4.53
|
|
|
$
|
4.62
|
|
|
$
|
4.52
|
|
Diluted
|
4.47
|
|
|
4.53
|
|
|
4.43
|
|
|||
Average common shares outstanding (in thousands):
|
|
|
|
|
|
||||||
Basic
|
407,856
|
|
|
424,223
|
|
|
446,245
|
|
|||
Diluted
|
413,638
|
|
|
432,007
|
|
|
455,155
|
|
|||
Cash dividends declared per common share
|
$
|
1.32
|
|
|
$
|
1.16
|
|
|
$
|
1.04
|
|
|
Years Ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
(In millions)
|
|
|
|
|
|
||||||
Net income
|
$
|
1,980
|
|
|
$
|
2,022
|
|
|
$
|
2,050
|
|
Other comprehensive income (loss), net of related taxes:
|
|
|
|
|
|
||||||
Foreign currency translation, net of related taxes of ($101), ($94) and ($20), respectively
|
(735
|
)
|
|
(889
|
)
|
|
95
|
|
|||
Net unrealized gains (losses) on available-for-sale securities, net of related taxes of ($195), ($269) and ($521), respectively
|
(331
|
)
|
|
437
|
|
|
(826
|
)
|
|||
Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, net of related taxes of $5, ($15) and $56, respectively
|
12
|
|
|
(24
|
)
|
|
86
|
|
|||
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of $8, $12 and $11, respectively
|
13
|
|
|
18
|
|
|
18
|
|
|||
Net unrealized gains (losses) on cash flow hedges, net of related taxes of $24, $74 and $62, respectively
|
17
|
|
|
115
|
|
|
92
|
|
|||
Net unrealized gains on retirement plans, net of related taxes of $51, ($50) and $71, respectively
|
89
|
|
|
(69
|
)
|
|
80
|
|
|||
Other comprehensive income (loss)
|
(935
|
)
|
|
(412
|
)
|
|
(455
|
)
|
|||
Total comprehensive income
|
$
|
1,045
|
|
|
$
|
1,610
|
|
|
$
|
1,595
|
|
|
December 31,
|
||||||
|
2015
|
|
2014
|
||||
(Dollars in millions, except per share amounts)
|
|
|
|
||||
Assets:
|
|
|
|
||||
Cash and due from banks
|
$
|
1,207
|
|
|
$
|
1,855
|
|
Interest-bearing deposits with banks
|
75,338
|
|
|
93,523
|
|
||
Securities purchased under resale agreements
|
3,404
|
|
|
2,390
|
|
||
Trading account assets
|
849
|
|
|
924
|
|
||
Investment securities available for sale
|
70,070
|
|
|
94,913
|
|
||
Investment securities held to maturity (fair value of $29,798 and $17,842)
|
29,952
|
|
|
17,723
|
|
||
Loans and leases (less allowance for losses of $46 and $38)
|
18,753
|
|
|
18,161
|
|
||
Premises and equipment (net of accumulated depreciation of $4,820 and $4,599)
|
1,894
|
|
|
1,937
|
|
||
Accrued interest and fees receivable
|
2,346
|
|
|
2,242
|
|
||
Goodwill
|
5,671
|
|
|
5,826
|
|
||
Other intangible assets
|
1,768
|
|
|
2,025
|
|
||
Other assets
|
33,940
|
|
|
32,600
|
|
||
Total assets
|
$
|
245,192
|
|
|
$
|
274,119
|
|
Liabilities:
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Noninterest-bearing
|
$
|
65,800
|
|
|
$
|
70,490
|
|
Interest-bearing—U.S.
|
29,958
|
|
|
33,012
|
|
||
Interest-bearing—non-U.S.
|
95,869
|
|
|
105,538
|
|
||
Total deposits
|
191,627
|
|
|
209,040
|
|
||
Securities sold under repurchase agreements
|
4,499
|
|
|
8,925
|
|
||
Federal funds purchased
|
6
|
|
|
21
|
|
||
Other short-term borrowings
|
1,748
|
|
|
4,381
|
|
||
Accrued expenses and other liabilities
|
14,643
|
|
|
20,382
|
|
||
Long-term debt
|
11,534
|
|
|
10,042
|
|
||
Total liabilities
|
224,057
|
|
|
252,791
|
|
||
Commitments, guarantees and contingencies (Notes 12 and 13)
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
||||
Preferred stock, no par, 3,500,000 shares authorized:
|
|
|
|
||||
Series C, 5,000 shares issued and outstanding
|
491
|
|
|
491
|
|
||
Series D, 7,500 shares issued and outstanding
|
742
|
|
|
742
|
|
||
Series E, 7,500 shares issued and outstanding
|
728
|
|
|
728
|
|
||
Series F, 7,500 shares issued and outstanding
|
742
|
|
|
—
|
|
||
Common stock, $1 par, 750,000,000 shares authorized:
|
|
|
|
||||
503,879,642 and 503,880,120 shares issued
|
504
|
|
|
504
|
|
||
Surplus
|
9,746
|
|
|
9,791
|
|
||
Retained earnings
|
16,049
|
|
|
14,737
|
|
||
Accumulated other comprehensive income (loss)
|
(1,442
|
)
|
|
(507
|
)
|
||
Treasury stock, at cost (104,227,647 and 88,684,969 shares)
|
(6,457
|
)
|
|
(5,158
|
)
|
||
Total shareholders’ equity
|
21,103
|
|
|
21,328
|
|
||
Non-controlling interest-equity
|
32
|
|
|
—
|
|
||
Total equity
|
21,135
|
|
|
21,328
|
|
||
Total liabilities and equity
|
$
|
245,192
|
|
|
$
|
274,119
|
|
(Dollars in millions, except per share amounts, shares in thousands)
|
PREFERRED
STOCK
|
|
COMMON STOCK
|
|
Surplus
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
TREASURY STOCK
|
|
Total
|
||||||||||||||||||||
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||||||
Balance as of December 31, 2012
|
$
|
489
|
|
|
503,900
|
|
|
$
|
504
|
|
|
$
|
9,667
|
|
|
$
|
11,707
|
|
|
$
|
360
|
|
|
45,238
|
|
|
$
|
(1,902
|
)
|
|
$
|
20,825
|
|
Net income
|
|
|
|
|
|
|
|
|
2,050
|
|
|
|
|
|
|
|
|
2,050
|
|
||||||||||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
(455
|
)
|
|
|
|
|
|
(455
|
)
|
||||||||||||||
Accretion of issuance costs
|
2
|
|
|
|
|
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
—
|
|
|||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Common stock - $1.04 per share
|
|
|
|
|
|
|
|
|
(463
|
)
|
|
|
|
|
|
|
|
(463
|
)
|
||||||||||||||
Preferred stock
|
|
|
|
|
|
|
|
|
(26
|
)
|
|
|
|
|
|
|
|
|
|||||||||||||||
Common stock acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
31,237
|
|
|
(2,040
|
)
|
|
(2,040
|
)
|
|||||||||||||
Common stock awards and options exercised, including income tax benefit of $51
|
|
|
(17
|
)
|
|
|
|
113
|
|
|
|
|
|
|
(6,709
|
)
|
|
249
|
|
|
362
|
|
|||||||||||
Other
|
|
|
|
|
|
|
(4
|
)
|
|
(1
|
)
|
|
|
|
(12
|
)
|
|
|
|
(5
|
)
|
||||||||||||
Balance as of December 31, 2013
|
491
|
|
|
503,883
|
|
|
504
|
|
|
9,776
|
|
|
13,265
|
|
|
(95
|
)
|
|
69,754
|
|
|
(3,693
|
)
|
|
20,248
|
|
|||||||
Net income
|
|
|
|
|
|
|
|
|
2,022
|
|
|
|
|
|
|
|
|
2,022
|
|
||||||||||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
(412
|
)
|
|
|
|
|
|
(412
|
)
|
||||||||||||||
Preferred stock issued
|
1,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,470
|
|
||||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Common stock - $1.16 per share
|
|
|
|
|
|
|
|
|
(490
|
)
|
|
|
|
|
|
|
|
(490
|
)
|
||||||||||||||
Preferred stock
|
|
|
|
|
|
|
|
|
(61
|
)
|
|
|
|
|
|
|
|
(61
|
)
|
||||||||||||||
Common stock acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
23,749
|
|
|
(1,650
|
)
|
|
(1,650
|
)
|
|||||||||||||
Common stock awards and options exercised, including income tax benefit of $72
|
|
|
(3
|
)
|
|
|
|
17
|
|
|
|
|
|
|
(4,805
|
)
|
|
185
|
|
|
202
|
|
|||||||||||
Other
|
|
|
|
|
|
|
(2
|
)
|
|
1
|
|
|
|
|
(13
|
)
|
|
|
|
(1
|
)
|
||||||||||||
Balance as of December 31, 2014
|
$
|
1,961
|
|
|
503,880
|
|
|
504
|
|
|
9,791
|
|
|
14,737
|
|
|
(507
|
)
|
|
88,685
|
|
|
(5,158
|
)
|
|
21,328
|
|
||||||
Net income
|
|
|
|
|
|
|
|
|
1,980
|
|
|
|
|
|
|
|
|
1,980
|
|
||||||||||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
(935
|
)
|
|
|
|
|
|
(935
|
)
|
||||||||||||||
Preferred stock issued
|
742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
742
|
|
||||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common stock - $1.32 per share
|
|
|
|
|
|
|
|
|
(536
|
)
|
|
|
|
|
|
|
|
(536
|
)
|
||||||||||||||
Preferred stock
|
|
|
|
|
|
|
|
|
(130
|
)
|
|
|
|
|
|
|
|
(130
|
)
|
||||||||||||||
Common stock acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
20,521
|
|
|
(1,520
|
)
|
|
(1,520
|
)
|
|||||||||||||
Common stock awards and options exercised, including income tax benefit of $70
|
|
|
|
|
|
|
(41
|
)
|
|
|
|
|
|
(4,976
|
)
|
|
221
|
|
|
180
|
|
||||||||||||
Other
|
|
|
|
|
|
|
(4
|
)
|
|
(2
|
)
|
|
|
|
(2
|
)
|
|
|
|
(6
|
)
|
||||||||||||
Balance as of December 31, 2015
|
$
|
2,703
|
|
|
503,880
|
|
|
$
|
504
|
|
|
$
|
9,746
|
|
|
$
|
16,049
|
|
|
$
|
(1,442
|
)
|
|
104,228
|
|
|
$
|
(6,457
|
)
|
|
$
|
21,103
|
|
|
Years Ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
(In millions)
|
|
|
|
|
|
||||||
Operating Activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
1,980
|
|
|
$
|
2,022
|
|
|
$
|
2,050
|
|
Adjustments to reconcile net income to net cash used in operating activities:
|
|
|
|
|
|
||||||
Deferred income tax (benefit) expense
|
(168
|
)
|
|
60
|
|
|
128
|
|
|||
Amortization of other intangible assets
|
197
|
|
|
222
|
|
|
214
|
|
|||
Other non-cash adjustments for depreciation, amortization and accretion, net
|
596
|
|
|
477
|
|
|
461
|
|
|||
Losses (gains) related to investment securities, net
|
6
|
|
|
(4
|
)
|
|
9
|
|
|||
Change in trading account assets, net
|
75
|
|
|
(81
|
)
|
|
(206
|
)
|
|||
Change in accrued interest and fees receivable, net
|
(104
|
)
|
|
(119
|
)
|
|
(153
|
)
|
|||
Change in collateral deposits, net
|
(6,662
|
)
|
|
(4,362
|
)
|
|
(4,046
|
)
|
|||
Change in unrealized losses (gains) on foreign exchange derivatives, net
|
982
|
|
|
(2,042
|
)
|
|
(128
|
)
|
|||
Change in other assets, net
|
1,164
|
|
|
3,612
|
|
|
(819
|
)
|
|||
Change in accrued expenses and other liabilities, net
|
(48
|
)
|
|
(635
|
)
|
|
133
|
|
|||
Other, net
|
579
|
|
|
289
|
|
|
333
|
|
|||
Net cash used in operating activities
|
(1,403
|
)
|
|
(561
|
)
|
|
(2,024
|
)
|
|||
Investing Activities:
|
|
|
|
|
|
||||||
Net decrease (increase) in interest-bearing deposits with banks
|
18,185
|
|
|
(29,266
|
)
|
|
(13,494
|
)
|
|||
Net (increase) decrease in securities purchased under resale agreements
|
(1,014
|
)
|
|
3,840
|
|
|
(1,214
|
)
|
|||
Proceeds from sales of available for sale securities
|
12,309
|
|
|
9,766
|
|
|
10,261
|
|
|||
Proceeds from maturities of available for sale securities
|
28,025
|
|
|
36,120
|
|
|
37,529
|
|
|||
Purchases of available for sale securities
|
(25,397
|
)
|
|
(43,146
|
)
|
|
(39,097
|
)
|
|||
Proceeds from maturities of held to maturity securities
|
3,842
|
|
|
3,217
|
|
|
2,080
|
|
|||
Purchases of held to maturity securities
|
(9,398
|
)
|
|
(3,778
|
)
|
|
(8,415
|
)
|
|||
Net increase in loans
|
(561
|
)
|
|
(4,785
|
)
|
|
(1,214
|
)
|
|||
Purchases of equity investments and other long-term assets
|
(366
|
)
|
|
(182
|
)
|
|
(272
|
)
|
|||
Purchases of premises and equipment, net
|
(703
|
)
|
|
(427
|
)
|
|
(388
|
)
|
|||
Other, net
|
73
|
|
|
149
|
|
|
139
|
|
|||
Net cash provided by (used in) investing activities
|
24,995
|
|
|
(28,492
|
)
|
|
(14,085
|
)
|
|||
Financing Activities:
|
|
|
|
|
|
||||||
Net (decrease) increase in time deposits
|
(9,878
|
)
|
|
54,404
|
|
|
(14,507
|
)
|
|||
Net (decrease) increase in all other deposits
|
(7,535
|
)
|
|
(27,632
|
)
|
|
32,594
|
|
|||
Net (decrease) increase in other short-term borrowings
|
(7,074
|
)
|
|
1,575
|
|
|
(1,155
|
)
|
|||
Proceeds from issuance of long-term debt, net of issuance costs
|
2,983
|
|
|
994
|
|
|
2,485
|
|
|||
Payments for long-term debt and obligations under capital leases
|
(1,155
|
)
|
|
(788
|
)
|
|
(134
|
)
|
|||
Proceeds from issuance of preferred stock
|
742
|
|
|
1,470
|
|
|
—
|
|
|||
Proceeds from exercises of common stock options
|
4
|
|
|
14
|
|
|
121
|
|
|||
Purchases of common stock
|
(1,520
|
)
|
|
(1,650
|
)
|
|
(2,040
|
)
|
|||
Excess tax benefit related to stock-based compensation
|
70
|
|
|
72
|
|
|
50
|
|
|||
Repurchases of common stock for employee tax withholding
|
(222
|
)
|
|
(232
|
)
|
|
(189
|
)
|
|||
Payments for cash dividends
|
(655
|
)
|
|
(539
|
)
|
|
(486
|
)
|
|||
Net cash (used in) provided by financing activities
|
(24,240
|
)
|
|
27,688
|
|
|
16,739
|
|
|||
Net (decrease) increase
|
(648
|
)
|
|
(1,365
|
)
|
|
630
|
|
|||
Cash and due from banks at beginning of period
|
1,855
|
|
|
3,220
|
|
|
2,590
|
|
|||
Cash and due from banks at end of period
|
$
|
1,207
|
|
|
$
|
1,855
|
|
|
$
|
3,220
|
|
|
|
|
|
|
|
||||||
Supplemental disclosure:
|
|
|
|
|
|
||||||
Interest paid
|
$
|
385
|
|
|
$
|
398
|
|
|
$
|
416
|
|
Income taxes paid, net
|
211
|
|
|
358
|
|
|
406
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 16. Regulatory
Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note
|
2
|
|
Page
|
||
Note
|
3
|
|
Page
|
||
Note
|
4
|
|
Page
|
||
Note
|
5
|
|
Page
|
||
Note
|
10
|
|
Page
|
||
Offsetting Arrangements
|
Note
|
11
|
|
Page
|
|
Note
|
13
|
|
Page
|
||
Note
|
14
|
|
Page
|
||
Note
|
16
|
|
Page
|
||
Note
|
18
|
|
Page
|
||
Note
|
22
|
|
Page
|
||
Note
|
23
|
|
Page
|
|
Year Ended December 31, 2014
|
|
Year Ended December 31, 2013
|
||||||||||||||||
(In millions, except per share amounts)
|
Previously Reported
|
Correction
|
Revised
|
|
Previously Reported
|
Correction
|
Revised
|
||||||||||||
Servicing fee revenue
|
$
|
5,129
|
|
$
|
(21
|
)
|
$
|
5,108
|
|
|
$
|
4,819
|
|
$
|
(20
|
)
|
$
|
4,799
|
|
Total revenue
|
10,295
|
|
(21
|
)
|
10,274
|
|
|
9,884
|
|
(20
|
)
|
9,864
|
|
||||||
Income before income tax expense
|
2,458
|
|
(21
|
)
|
2,437
|
|
|
2,686
|
|
(20
|
)
|
2,666
|
|
||||||
Income tax expense
|
421
|
|
(6
|
)
|
415
|
|
|
550
|
|
66
|
|
616
|
|
||||||
Net income
|
2,037
|
|
(15
|
)
|
2,022
|
|
|
2,136
|
|
(86
|
)
|
2,050
|
|
||||||
Earnings per share:
|
|
|
|
|
|
|
|
||||||||||||
Basic
|
$
|
4.65
|
|
$
|
(0.03
|
)
|
$
|
4.62
|
|
|
$
|
4.71
|
|
$
|
(0.19
|
)
|
$
|
4.52
|
|
Diluted
|
4.57
|
|
(0.04
|
)
|
4.53
|
|
|
4.62
|
|
(0.19
|
)
|
4.43
|
|
|
December 31, 2014
|
||||||||
(In millions, except per share amounts)
|
Previously Reported
|
Correction
|
Revised
|
||||||
Total assets
|
$
|
274,119
|
|
$
|
—
|
|
$
|
274,119
|
|
Total liabilities
|
252,646
|
|
145
|
|
252,791
|
|
|||
Retained earnings
|
14,882
|
|
(145
|
)
|
14,737
|
|
|||
Total equity
|
21,473
|
|
(145
|
)
|
21,328
|
|
|||
Total liabilities and shareholders' equity
|
274,119
|
|
—
|
|
274,119
|
|
•
|
Quoted prices for similar assets or liabilities in active markets;
|
•
|
Quoted prices for identical or similar assets or liabilities in non-active markets;
|
•
|
Pricing models whose inputs are observable for substantially the full term of the asset or liability; and
|
•
|
Pricing models whose inputs are derived principally from, or corroborated by, observable market information through correlation or other means for substantially the full term of the asset or liability.
|
•
|
The fair value of our investment securities categorized in level 3 is measured using information obtained from third-party sources, typically non-binding broker or dealer quotes, or through the use of internally-developed pricing models. Management has evaluated its methodologies used to measure fair value, but has considered the level of observable market information to be insufficient to categorize the securities in level 2.
|
•
|
The fair value of foreign exchange contracts, primarily options, is measured using an option-pricing model. Because of a limited number of observable transactions, certain model inputs are not observable, such as implied volatility surface, but are derived from observable market information.
|
|
Fair-Value Measurements on a Recurring Basis
|
||||||||||||||||||
|
as of December 31, 2015
|
||||||||||||||||||
(In millions)
|
Quoted Market
Prices in Active
Markets
(Level 1)
|
|
Pricing Methods
with Significant
Observable
Market Inputs
(Level 2)
|
|
Pricing Methods
with Significant
Unobservable
Market Inputs
(Level 3)
|
|
Impact of Netting
(1)
|
|
Total Net
Carrying Value
in Consolidated
Statement of
Condition
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading account assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government securities
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
$
|
32
|
|
||
Non-U.S. government securities
|
479
|
|
|
—
|
|
|
—
|
|
|
|
|
479
|
|
||||||
Other
|
10
|
|
|
328
|
|
|
—
|
|
|
|
|
338
|
|
||||||
Total trading account assets
|
521
|
|
|
328
|
|
|
—
|
|
|
|
|
849
|
|
||||||
AFS Investment securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
||||||||||
Direct obligations
|
5,206
|
|
|
512
|
|
|
—
|
|
|
|
|
5,718
|
|
||||||
Mortgage-backed securities
|
—
|
|
|
18,165
|
|
|
—
|
|
|
|
|
18,165
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Student loans
|
—
|
|
|
6,987
|
|
|
189
|
|
|
|
|
7,176
|
|
||||||
Credit cards
|
—
|
|
|
1,341
|
|
|
—
|
|
|
|
|
1,341
|
|
||||||
Sub-prime
|
—
|
|
|
419
|
|
|
—
|
|
|
|
|
419
|
|
||||||
Other
(2)
|
—
|
|
|
—
|
|
|
1,764
|
|
|
|
|
1,764
|
|
||||||
Total asset-backed securities
|
—
|
|
|
8,747
|
|
|
1,953
|
|
|
|
|
10,700
|
|
||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities
|
—
|
|
|
7,071
|
|
|
—
|
|
|
|
|
7,071
|
|
||||||
Asset-backed securities
|
—
|
|
|
3,093
|
|
|
174
|
|
|
|
|
3,267
|
|
||||||
Government securities
|
—
|
|
|
4,355
|
|
|
—
|
|
|
|
|
4,355
|
|
||||||
Other
(3)
|
—
|
|
|
4,579
|
|
|
255
|
|
|
|
|
4,834
|
|
||||||
Total non-U.S. debt securities
|
—
|
|
|
19,098
|
|
|
429
|
|
|
|
|
19,527
|
|
||||||
State and political subdivisions
|
—
|
|
|
9,713
|
|
|
33
|
|
|
|
|
9,746
|
|
||||||
Collateralized mortgage obligations
|
—
|
|
|
2,948
|
|
|
39
|
|
|
|
|
2,987
|
|
||||||
Other U.S. debt securities
|
—
|
|
|
2,614
|
|
|
10
|
|
|
|
|
2,624
|
|
||||||
U.S. equity securities
|
—
|
|
|
39
|
|
|
—
|
|
|
|
|
39
|
|
||||||
Non-U.S. equity securities
|
—
|
|
|
3
|
|
|
—
|
|
|
|
|
3
|
|
||||||
U.S. money-market mutual funds
|
—
|
|
|
542
|
|
|
—
|
|
|
|
|
542
|
|
||||||
Non-U.S. money-market mutual funds
|
—
|
|
|
19
|
|
|
—
|
|
|
|
|
19
|
|
||||||
Total investment securities available for sale
|
5,206
|
|
|
62,400
|
|
|
2,464
|
|
|
|
|
70,070
|
|
||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange contracts
|
—
|
|
|
11,311
|
|
|
5
|
|
|
$
|
(6,562
|
)
|
|
4,754
|
|
||||
Interest-rate contracts
|
—
|
|
|
135
|
|
|
—
|
|
|
(115
|
)
|
|
20
|
|
|||||
Other derivative contracts
|
—
|
|
|
5
|
|
|
—
|
|
|
(2
|
)
|
|
3
|
|
|||||
Total derivative instruments
|
—
|
|
|
11,451
|
|
|
5
|
|
|
(6,679
|
)
|
|
4,777
|
|
|||||
Other
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Total assets carried at fair value
|
$
|
5,729
|
|
|
$
|
74,179
|
|
|
$
|
2,469
|
|
|
$
|
(6,679
|
)
|
|
$
|
75,698
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accrued expenses and other liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading account liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government securities
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
Non-U.S. government securities
|
76
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
76
|
|
|||||
Other
|
5
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|||||
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange contracts
|
—
|
|
|
10,863
|
|
|
5
|
|
|
(6,995
|
)
|
|
3,873
|
|
|||||
Interest-rate contracts
|
—
|
|
|
182
|
|
|
—
|
|
|
(24
|
)
|
|
158
|
|
|||||
Other derivative contracts
|
—
|
|
|
103
|
|
|
—
|
|
|
(2
|
)
|
|
101
|
|
|||||
Total derivative instruments
|
—
|
|
|
11,148
|
|
|
5
|
|
|
(7,021
|
)
|
|
4,132
|
|
|||||
Other
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Total liabilities carried at fair value
|
$
|
88
|
|
|
$
|
11,161
|
|
|
$
|
5
|
|
|
$
|
(7,021
|
)
|
|
$
|
4,233
|
|
|
|
|
|
|
Fair-Value Measurements on a Recurring Basis
|
||||||||||||||||||
|
as of December 31, 2014
|
||||||||||||||||||
(In millions)
|
Quoted Market
Prices in Active
Markets
(Level 1)
|
|
Pricing Methods
with Significant
Observable
Market Inputs
(Level 2)
|
|
Pricing Methods
with Significant
Unobservable
Market Inputs
(Level 3)
|
|
Impact of Netting
(1)
|
|
Total Net
Carrying Value
in Consolidated
Statement of
Condition
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading account assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government securities
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
$
|
20
|
|
||
Non-U.S. government securities
|
378
|
|
|
—
|
|
|
—
|
|
|
|
|
378
|
|
||||||
Other
|
20
|
|
|
506
|
|
|
—
|
|
|
|
|
526
|
|
||||||
Total trading account assets
|
418
|
|
|
506
|
|
|
—
|
|
|
|
|
924
|
|
||||||
AFS Investment securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
||||||||||
Direct obligations
|
10,056
|
|
|
599
|
|
|
—
|
|
|
|
|
10,655
|
|
||||||
Mortgage-backed securities
|
—
|
|
|
20,714
|
|
|
—
|
|
|
|
|
20,714
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Student loans
|
—
|
|
|
12,201
|
|
|
259
|
|
|
|
|
12,460
|
|
||||||
Credit cards
|
—
|
|
|
3,053
|
|
|
—
|
|
|
|
|
3,053
|
|
||||||
Sub-prime
|
—
|
|
|
951
|
|
|
—
|
|
|
|
|
951
|
|
||||||
Other
(2)
|
—
|
|
|
365
|
|
|
3,780
|
|
|
|
|
4,145
|
|
||||||
Total asset-backed securities
|
—
|
|
|
16,570
|
|
|
4,039
|
|
|
|
|
20,609
|
|
||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities
|
—
|
|
|
9,606
|
|
|
—
|
|
|
|
|
9,606
|
|
||||||
Asset-backed securities
|
—
|
|
|
2,931
|
|
|
295
|
|
|
|
|
3,226
|
|
||||||
Government securities
|
—
|
|
|
3,909
|
|
|
—
|
|
|
|
|
3,909
|
|
||||||
Other
(3)
|
—
|
|
|
5,057
|
|
|
371
|
|
|
|
|
5,428
|
|
||||||
Total non-U.S. debt securities
|
—
|
|
|
21,503
|
|
|
666
|
|
|
|
|
22,169
|
|
||||||
State and political subdivisions
|
—
|
|
|
10,782
|
|
|
38
|
|
|
|
|
10,820
|
|
||||||
Collateralized mortgage obligations
|
—
|
|
|
4,725
|
|
|
614
|
|
|
|
|
5,339
|
|
||||||
Other U.S. debt securities
|
—
|
|
|
4,100
|
|
|
9
|
|
|
|
|
4,109
|
|
||||||
U.S. equity securities
|
—
|
|
|
39
|
|
|
—
|
|
|
|
|
39
|
|
||||||
Non-U.S. equity securities
|
—
|
|
|
2
|
|
|
—
|
|
|
|
|
2
|
|
||||||
U.S. money-market mutual funds
|
—
|
|
|
449
|
|
|
—
|
|
|
|
|
449
|
|
||||||
Non-U.S. money-market mutual funds
|
—
|
|
|
8
|
|
|
—
|
|
|
|
|
8
|
|
||||||
Total investment securities available for sale
|
10,056
|
|
|
79,491
|
|
|
5,366
|
|
|
|
|
94,913
|
|
||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange contracts
|
—
|
|
|
15,054
|
|
|
81
|
|
|
$
|
(7,211
|
)
|
|
7,924
|
|
||||
Interest-rate contracts
|
—
|
|
|
77
|
|
|
—
|
|
|
(68
|
)
|
|
9
|
|
|||||
Other derivative contracts
|
—
|
|
|
2
|
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
|||||
Total derivative instruments
|
—
|
|
|
15,133
|
|
|
81
|
|
|
(7,280
|
)
|
|
7,934
|
|
|||||
Total assets carried at fair value
|
$
|
10,474
|
|
|
$
|
95,130
|
|
|
$
|
5,447
|
|
|
$
|
(7,280
|
)
|
|
$
|
103,771
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accrued expenses and other liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange contracts
|
$
|
—
|
|
|
$
|
14,851
|
|
|
$
|
74
|
|
|
$
|
(8,879
|
)
|
|
$
|
6,046
|
|
Interest-rate contracts
|
—
|
|
|
239
|
|
|
—
|
|
|
(46
|
)
|
|
193
|
|
|||||
Other derivative contracts
|
—
|
|
|
61
|
|
|
9
|
|
|
(1
|
)
|
|
69
|
|
|||||
Total derivative instruments
|
—
|
|
|
15,151
|
|
|
83
|
|
|
(8,926
|
)
|
|
6,308
|
|
|||||
Total liabilities carried at fair value
|
$
|
—
|
|
|
$
|
15,151
|
|
|
$
|
83
|
|
|
$
|
(8,926
|
)
|
|
$
|
6,308
|
|
|
|
|
|
|
Fair-Value Measurements Using Significant Unobservable Inputs
|
||||||||||||||||||||||
|
Year Ended December 31, 2015
|
||||||||||||||||||||||
|
Fair Value as of
December 31, 2014 |
|
Total Realized and
Unrealized (Gains) Losses |
|
Issuances
|
|
Settlements
|
|
Fair Value as of
December 31, 2015 (1) |
|
Change in
Unrealized (Gains) Losses Related to Financial Instruments Held as of December 31, 2015 |
||||||||||||
(In millions)
|
Recorded
in Revenue |
|
|||||||||||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accrued expenses and other liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts
|
$
|
74
|
|
|
$
|
23
|
|
|
$
|
12
|
|
|
$
|
(104
|
)
|
|
$
|
5
|
|
|
$
|
(7
|
)
|
Other
|
9
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
||||||
Total derivative instruments
|
83
|
|
|
23
|
|
|
12
|
|
|
(113
|
)
|
|
5
|
|
|
(7
|
)
|
||||||
Total liabilities carried at fair value
|
$
|
83
|
|
|
$
|
23
|
|
|
$
|
12
|
|
|
$
|
(113
|
)
|
|
$
|
5
|
|
|
$
|
(7
|
)
|
|
|
|
|
|
Fair-Value Measurements Using Significant Unobservable Inputs
|
||||||||||||||||||||||||||||||||||||||
|
Twelve Months Ended December 31, 2014
|
||||||||||||||||||||||||||||||||||||||
|
Fair Value as of December 31,
2013 |
|
Total Realized and
Unrealized Gains (Losses) |
|
Purchases
|
|
Sales
|
|
Settlements
|
|
Transfers
into Level 3 |
|
Transfers
out of Level 3 |
|
Fair Value as of
December 31, 2014 |
|
Change in
Unrealized (Gains) Losses Related to Financial Instruments Held as of December 31, 2014 |
||||||||||||||||||||||
(In millions)
|
Recorded
in
Revenue
|
|
Recorded
in Other
Comprehensive
Income
|
|
|||||||||||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Investment securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
U.S. Treasury and federal agencies, mortgage-backed securities
|
$
|
716
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
168
|
|
|
$
|
—
|
|
|
$
|
(14
|
)
|
|
$
|
—
|
|
|
$
|
(870
|
)
|
|
$
|
—
|
|
|
|
||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Student loans
|
423
|
|
|
2
|
|
|
1
|
|
|
24
|
|
|
(75
|
)
|
|
(37
|
)
|
|
—
|
|
|
(79
|
)
|
|
259
|
|
|
|
|||||||||||
Credit cards
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||||||||
Other
|
4,532
|
|
|
65
|
|
|
(28
|
)
|
|
282
|
|
|
—
|
|
|
(1,071
|
)
|
|
—
|
|
|
—
|
|
|
3,780
|
|
|
|
|||||||||||
Total asset-backed securities
|
4,979
|
|
|
67
|
|
|
(27
|
)
|
|
306
|
|
|
(75
|
)
|
|
(1,132
|
)
|
|
—
|
|
|
(79
|
)
|
|
4,039
|
|
|
|
|||||||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Mortgage-backed securities
|
375
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(375
|
)
|
|
—
|
|
|
|
|||||||||||
Asset-backed securities
|
798
|
|
|
6
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(272
|
)
|
|
76
|
|
|
(312
|
)
|
|
295
|
|
|
|
|||||||||||
Other
|
464
|
|
|
—
|
|
|
1
|
|
|
55
|
|
|
(1
|
)
|
|
(41
|
)
|
|
85
|
|
|
(192
|
)
|
|
371
|
|
|
|
|||||||||||
Total non-U.S. debt securities
|
1,637
|
|
|
6
|
|
|
—
|
|
|
55
|
|
|
(1
|
)
|
|
(313
|
)
|
|
161
|
|
|
(879
|
)
|
|
666
|
|
|
|
|||||||||||
State and political subdivisions
|
43
|
|
|
1
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
38
|
|
|
|
|||||||||||
Collateralized mortgage obligations
|
162
|
|
|
—
|
|
|
1
|
|
|
633
|
|
|
(6
|
)
|
|
(32
|
)
|
|
—
|
|
|
(144
|
)
|
|
614
|
|
|
|
|||||||||||
Other U.S. debt securities
|
8
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
|
|||||||||||
Total investment securities available for sale
|
7,545
|
|
|
74
|
|
|
(28
|
)
|
|
1,162
|
|
|
(82
|
)
|
|
(1,494
|
)
|
|
161
|
|
|
(1,972
|
)
|
|
5,366
|
|
|
|
|||||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Derivative instruments, Foreign exchange contracts
(1)
|
19
|
|
|
36
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
81
|
|
|
$
|
44
|
|
|||||||||
Total derivative instruments
|
19
|
|
|
36
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
81
|
|
|
44
|
|
||||||||||
Total assets carried at fair value
|
$
|
7,564
|
|
|
$
|
110
|
|
|
$
|
(28
|
)
|
|
$
|
1,198
|
|
|
$
|
(82
|
)
|
|
$
|
(1,504
|
)
|
|
$
|
161
|
|
|
$
|
(1,972
|
)
|
|
$
|
5,447
|
|
|
$
|
44
|
|
|
Fair-Value Measurements Using Significant Unobservable Inputs
|
||||||||||||||||||||||
|
Twelve Months Ended December 31, 2014
|
||||||||||||||||||||||
|
Fair Value as of December 31,
2013 |
|
Total Realized and
Unrealized (Gains) Losses |
|
Issuances
|
|
Settlements
|
|
Fair Value as of
December 31, 2014 (1) |
|
Change in
Unrealized (Gains) Losses Related to Financial Instruments Held as of December 31, 2014 |
||||||||||||
(In millions)
|
Recorded
in Revenue |
|
|||||||||||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accrued expenses and other liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts
(2)
|
$
|
17
|
|
|
$
|
25
|
|
|
$
|
39
|
|
|
$
|
(7
|
)
|
|
$
|
74
|
|
|
$
|
35
|
|
Other
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
||||||
Total derivative instruments
|
26
|
|
|
25
|
|
|
39
|
|
|
(7
|
)
|
|
83
|
|
|
35
|
|
||||||
Total liabilities carried at fair value
|
$
|
26
|
|
|
$
|
25
|
|
|
$
|
39
|
|
|
$
|
(7
|
)
|
|
$
|
83
|
|
|
$
|
35
|
|
|
|
|
|
|
Twelve Months Ended December 31,
|
||||||||||||||||||||||
|
Total Realized and
Unrealized Gains (Losses) Recorded in Revenue |
|
Change in Unrealized Gains (Losses) Related to Financial instruments Held as of December 31,
|
||||||||||||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||
Fee revenue:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trading services
|
$
|
25
|
|
|
$
|
11
|
|
|
$
|
63
|
|
|
$
|
3
|
|
|
$
|
9
|
|
|
$
|
(1
|
)
|
Total fee revenue
|
25
|
|
|
11
|
|
|
63
|
|
|
3
|
|
|
9
|
|
|
(1
|
)
|
||||||
Net interest revenue
|
56
|
|
|
74
|
|
|
62
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total revenue
|
$
|
81
|
|
|
$
|
85
|
|
|
$
|
125
|
|
|
$
|
3
|
|
|
$
|
9
|
|
|
$
|
(1
|
)
|
|
|
Quantitative Information about Level-3 Fair-Value Measurements
|
||||||||||||||||
|
|
Fair Value
|
|
|
|
|
|
Weighted-Average
|
||||||||||
(Dollars in millions)
|
|
As of December 31, 2015
|
|
As of December 31, 2014
|
|
Valuation Technique
|
|
Significant
Unobservable Input (1) |
|
As of December 31, 2015
|
|
As of December 31, 2014
|
||||||
Significant unobservable inputs readily available to State Street:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Asset-backed securities, other
|
|
$
|
28
|
|
|
$
|
59
|
|
|
Discounted cash flows
|
|
Credit spread
|
|
0.1
|
%
|
|
0.2
|
%
|
State and political subdivisions
|
|
33
|
|
|
38
|
|
|
Discounted cash flows
|
|
Credit spread
|
|
2.2
|
|
|
2.1
|
|
||
Derivative instruments, foreign exchange contracts
|
|
5
|
|
|
81
|
|
|
Option model
|
|
Volatility
|
|
9.3
|
|
|
9.1
|
|
||
Total
|
|
$
|
66
|
|
|
$
|
178
|
|
|
|
|
|
|
|
|
|
||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivative instruments, foreign exchange contracts
|
|
$
|
5
|
|
|
$
|
74
|
|
|
Option model
|
|
Volatility
|
|
9.2
|
|
|
9.0
|
|
Derivative instruments, other
(2)
|
|
—
|
|
|
9
|
|
|
Discounted cash flows
|
|
Participant redemptions
|
|
—
|
|
|
5.2
|
|
||
Total
|
|
$
|
5
|
|
|
$
|
83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
Significant Unobservable Inputs Readily Available to State Street
(1)
|
|
Significant Unobservable Inputs Not Developed by State Street and Not Readily Available
(2)
|
|
Total Assets and Liabilities with Significant Unobservable Inputs
|
||||||
(In millions)
|
|
|
|
|
|
|
||||||
Assets:
|
|
|
|
|
|
|
||||||
Asset-backed securities, student loans
|
|
$
|
—
|
|
|
$
|
189
|
|
|
$
|
189
|
|
Asset-backed securities, other
|
|
28
|
|
|
1,736
|
|
|
1,764
|
|
|||
Non-U.S. debt securities, asset-backed securities
|
|
—
|
|
|
174
|
|
|
174
|
|
|||
Non-U.S. debt securities, other
|
|
—
|
|
|
255
|
|
|
255
|
|
|||
State and political subdivisions
|
|
33
|
|
|
—
|
|
|
33
|
|
|||
Collateralized mortgage obligations
|
|
—
|
|
|
39
|
|
|
39
|
|
|||
Other U.S. debt securities
|
|
—
|
|
|
10
|
|
|
10
|
|
|||
Derivative instruments, foreign exchange contracts
|
|
5
|
|
|
—
|
|
|
5
|
|
|||
Total
|
|
$
|
66
|
|
|
$
|
2,403
|
|
|
$
|
2,469
|
|
Liabilities:
|
|
|
|
|
|
|
||||||
Derivative instruments, foreign exchange contracts
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
Total
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
|
|
|
|
December 31, 2014
|
|
Significant Unobservable Inputs Readily Available to State Street
(1)
|
|
Significant Unobservable Inputs Not Developed by State Street and Not Readily Available
(2)
|
|
Total Assets and Liabilities with Significant Unobservable Inputs
|
||||||
(In millions)
|
|
|
|
|
|
|
||||||
Assets:
|
|
|
|
|
|
|
||||||
Asset-backed securities, student loans
|
|
$
|
—
|
|
|
$
|
259
|
|
|
$
|
259
|
|
Asset-backed securities, other
|
|
59
|
|
|
3,721
|
|
|
3,780
|
|
|||
Non-U.S. debt securities, asset-backed securities
|
|
—
|
|
|
295
|
|
|
295
|
|
|||
Non-U.S. debt securities, other
|
|
—
|
|
|
371
|
|
|
371
|
|
|||
State and political subdivisions
|
|
38
|
|
|
—
|
|
|
38
|
|
|||
Collateralized mortgage obligations
|
|
—
|
|
|
614
|
|
|
614
|
|
|||
Other U.S. debt securities
|
|
—
|
|
|
9
|
|
|
9
|
|
|||
Derivative instruments, foreign exchange contracts
|
|
81
|
|
|
—
|
|
|
81
|
|
|||
Total
|
|
$
|
178
|
|
|
$
|
5,269
|
|
|
$
|
5,447
|
|
Liabilities:
|
|
|
|
|
|
|
||||||
Derivative instruments, foreign exchange contracts
|
|
$
|
74
|
|
|
$
|
—
|
|
|
$
|
74
|
|
Derivative instruments, other
|
|
9
|
|
|
—
|
|
|
9
|
|
|||
Total
|
|
$
|
83
|
|
|
$
|
—
|
|
|
$
|
83
|
|
|
|
|
|
|
•
|
For financial instruments that have quoted market prices, those quoted prices are used to estimate fair value.
|
•
|
For financial instruments that have no defined maturity, have a remaining maturity of 180 days or less, or reprice frequently to a market rate, we assume that the fair value of these instruments approximates their reported value, after taking into consideration any applicable credit risk.
|
•
|
For financial instruments for which no quoted market prices are available, fair value is estimated using information obtained from independent third parties, or by discounting the expected cash flows using an estimated current market interest rate for the financial instrument.
|
|
|
|
|
|
|
Fair-Value Hierarchy
|
||||||||||||||
December 31, 2015
|
|
Reported Amount
|
|
Estimated Fair Value
|
|
Quoted Market Prices in Active Markets (Level 1)
|
|
Pricing Methods with Significant Observable Market Inputs (Level 2)
|
|
Pricing Methods with Significant Unobservable Market Inputs (Level 3)
|
||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
|
$
|
1,207
|
|
|
$
|
1,207
|
|
|
$
|
1,207
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest-bearing deposits with banks
|
|
75,338
|
|
|
75,338
|
|
|
—
|
|
|
75,338
|
|
|
—
|
|
|||||
Securities purchased under resale agreements
|
|
3,404
|
|
|
3,404
|
|
|
—
|
|
|
3,404
|
|
|
—
|
|
|||||
Investment securities held to maturity
|
|
29,952
|
|
|
29,798
|
|
|
—
|
|
|
29,798
|
|
|
—
|
|
|||||
Net loans (excluding leases)
(1)
|
|
17,838
|
|
|
17,792
|
|
|
—
|
|
|
17,667
|
|
|
125
|
|
|||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing
|
|
$
|
65,800
|
|
|
$
|
65,800
|
|
|
$
|
—
|
|
|
$
|
65,800
|
|
|
$
|
—
|
|
Interest-bearing - U.S.
|
|
29,958
|
|
|
29,958
|
|
|
—
|
|
|
29,958
|
|
|
—
|
|
|||||
Interest-bearing - non-U.S.
|
|
95,869
|
|
|
95,869
|
|
|
—
|
|
|
95,869
|
|
|
—
|
|
|||||
Securities sold under repurchase agreements
|
|
4,499
|
|
|
4,499
|
|
|
—
|
|
|
4,499
|
|
|
—
|
|
|||||
Federal funds purchased
|
|
6
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|||||
Other short-term borrowings
|
|
1,748
|
|
|
1,748
|
|
|
—
|
|
|
1,748
|
|
|
—
|
|
|||||
Long-term debt
|
|
11,534
|
|
|
11,604
|
|
|
—
|
|
|
11,215
|
|
|
389
|
|
|
|
|
|
|
|
|
|
|
|
Fair-Value Hierarchy
|
||||||||||||||
December 31, 2014
|
|
Reported Amount
|
|
Estimated Fair Value
|
|
Quoted Market Prices in Active Markets (Level 1)
|
|
Pricing Methods with Significant Observable Market Inputs (Level 2)
|
|
Pricing Methods with Significant Unobservable Market Inputs (Level 3)
|
||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
|
$
|
1,855
|
|
|
$
|
1,855
|
|
|
$
|
1,855
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest-bearing deposits with banks
|
|
93,523
|
|
|
93,523
|
|
|
—
|
|
|
93,523
|
|
|
—
|
|
|||||
Securities purchased under resale agreements
|
|
2,390
|
|
|
2,390
|
|
|
—
|
|
|
2,390
|
|
|
—
|
|
|||||
Investment securities held to maturity
|
|
17,723
|
|
|
17,842
|
|
|
—
|
|
|
17,842
|
|
|
—
|
|
|||||
Net loans (excluding leases)
|
|
17,158
|
|
|
17,131
|
|
|
—
|
|
|
16,964
|
|
|
167
|
|
|||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing
|
|
$
|
70,490
|
|
|
$
|
70,490
|
|
|
$
|
—
|
|
|
$
|
70,490
|
|
|
$
|
—
|
|
Interest-bearing - U.S.
|
|
33,012
|
|
|
33,012
|
|
|
—
|
|
|
33,012
|
|
|
—
|
|
|||||
Interest-bearing - non-U.S.
|
|
105,538
|
|
|
105,538
|
|
|
—
|
|
|
105,538
|
|
|
—
|
|
|||||
Securities sold under repurchase agreements
|
|
8,925
|
|
|
8,925
|
|
|
—
|
|
|
8,925
|
|
|
—
|
|
|||||
Federal funds purchased
|
|
21
|
|
|
21
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|||||
Other short-term borrowings
|
|
4,381
|
|
|
4,381
|
|
|
—
|
|
|
4,381
|
|
|
—
|
|
|||||
Long-term debt
|
|
10,042
|
|
|
10,229
|
|
|
—
|
|
|
9,382
|
|
|
847
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Gross
Unrealized
|
|
Fair
Value
|
||||||||||||||||||||
(In millions)
|
Gains
|
|
Losses
|
|
Gains
|
|
Losses
|
|
|||||||||||||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Direct obligations
|
$
|
5,717
|
|
|
$
|
6
|
|
|
$
|
5
|
|
|
$
|
5,718
|
|
|
$
|
10,573
|
|
|
$
|
83
|
|
|
$
|
1
|
|
|
$
|
10,655
|
|
Mortgage-backed securities
|
18,168
|
|
|
131
|
|
|
134
|
|
|
18,165
|
|
|
20,648
|
|
|
193
|
|
|
127
|
|
|
20,714
|
|
||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Student loans
(1)
|
7,358
|
|
|
16
|
|
|
198
|
|
|
7,176
|
|
|
12,478
|
|
|
106
|
|
|
124
|
|
|
12,460
|
|
||||||||
Credit cards
|
1,378
|
|
|
—
|
|
|
37
|
|
|
1,341
|
|
|
3,077
|
|
|
10
|
|
|
34
|
|
|
3,053
|
|
||||||||
Sub-prime
|
448
|
|
|
2
|
|
|
31
|
|
|
419
|
|
|
1,005
|
|
|
2
|
|
|
56
|
|
|
951
|
|
||||||||
Other
(2)
|
1,724
|
|
|
43
|
|
|
3
|
|
|
1,764
|
|
|
4,055
|
|
|
100
|
|
|
10
|
|
|
4,145
|
|
||||||||
Total asset-backed securities
|
10,908
|
|
|
61
|
|
|
269
|
|
|
10,700
|
|
|
20,615
|
|
|
218
|
|
|
224
|
|
|
20,609
|
|
||||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Mortgage-backed securities
|
7,010
|
|
|
72
|
|
|
11
|
|
|
7,071
|
|
|
9,442
|
|
|
168
|
|
|
4
|
|
|
9,606
|
|
||||||||
Asset-backed securities
|
3,272
|
|
|
2
|
|
|
7
|
|
|
3,267
|
|
|
3,215
|
|
|
11
|
|
|
—
|
|
|
3,226
|
|
||||||||
Government securities
|
4,348
|
|
|
7
|
|
|
—
|
|
|
4,355
|
|
|
3,899
|
|
|
10
|
|
|
—
|
|
|
3,909
|
|
||||||||
Other
(3)
|
4,817
|
|
|
29
|
|
|
12
|
|
|
4,834
|
|
|
5,383
|
|
|
52
|
|
|
7
|
|
|
5,428
|
|
||||||||
Total non-U.S. debt securities
|
19,447
|
|
|
110
|
|
|
30
|
|
|
19,527
|
|
|
21,939
|
|
|
241
|
|
|
11
|
|
|
22,169
|
|
||||||||
State and political subdivisions
|
9,402
|
|
|
371
|
|
|
27
|
|
|
9,746
|
|
|
10,532
|
|
|
325
|
|
|
37
|
|
|
10,820
|
|
||||||||
Collateralized mortgage obligations
|
2,993
|
|
|
16
|
|
|
22
|
|
|
2,987
|
|
|
5,280
|
|
|
71
|
|
|
12
|
|
|
5,339
|
|
||||||||
Other U.S. debt securities
|
2,611
|
|
|
31
|
|
|
18
|
|
|
2,624
|
|
|
4,033
|
|
|
88
|
|
|
12
|
|
|
4,109
|
|
||||||||
U.S. equity securities
|
33
|
|
|
9
|
|
|
3
|
|
|
39
|
|
|
29
|
|
|
10
|
|
|
—
|
|
|
39
|
|
||||||||
Non-U.S. equity securities
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||||
U.S. money-market mutual funds
|
542
|
|
|
—
|
|
|
—
|
|
|
542
|
|
|
449
|
|
|
—
|
|
|
—
|
|
|
449
|
|
||||||||
Non-U.S. money-market mutual funds
|
19
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
||||||||
Total
|
$
|
69,843
|
|
|
$
|
735
|
|
|
$
|
508
|
|
|
$
|
70,070
|
|
|
$
|
94,108
|
|
|
$
|
1,229
|
|
|
$
|
424
|
|
|
$
|
94,913
|
|
Held to maturity
(4)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Direct obligations
|
$
|
20,878
|
|
|
$
|
2
|
|
|
$
|
217
|
|
|
$
|
20,663
|
|
|
$
|
5,114
|
|
|
$
|
—
|
|
|
$
|
147
|
|
|
$
|
4,967
|
|
Mortgage-backed securities
|
610
|
|
|
2
|
|
|
8
|
|
|
604
|
|
|
62
|
|
|
4
|
|
|
—
|
|
|
66
|
|
||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Student loans
(1)
|
1,592
|
|
|
—
|
|
|
47
|
|
|
1,545
|
|
|
1,814
|
|
|
2
|
|
|
4
|
|
|
1,812
|
|
||||||||
Credit cards
|
897
|
|
|
—
|
|
|
1
|
|
|
896
|
|
|
897
|
|
|
2
|
|
|
—
|
|
|
899
|
|
||||||||
Other
|
366
|
|
|
2
|
|
|
1
|
|
|
367
|
|
|
577
|
|
|
3
|
|
|
1
|
|
|
579
|
|
||||||||
Total asset-backed securities
|
2,855
|
|
|
2
|
|
|
49
|
|
|
2,808
|
|
|
3,288
|
|
|
7
|
|
|
5
|
|
|
3,290
|
|
||||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Mortgage-backed securities
|
2,202
|
|
|
109
|
|
|
26
|
|
|
2,285
|
|
|
3,787
|
|
|
177
|
|
|
22
|
|
|
3,942
|
|
||||||||
Asset-backed securities
|
1,415
|
|
|
4
|
|
|
3
|
|
|
1,416
|
|
|
2,868
|
|
|
14
|
|
|
1
|
|
|
2,881
|
|
||||||||
Government securities
|
239
|
|
|
—
|
|
|
1
|
|
|
238
|
|
|
154
|
|
|
—
|
|
|
—
|
|
|
154
|
|
||||||||
Other
|
65
|
|
|
—
|
|
|
—
|
|
|
65
|
|
|
72
|
|
|
—
|
|
|
—
|
|
|
72
|
|
||||||||
Total non-U.S. debt securities
|
3,921
|
|
|
113
|
|
|
30
|
|
|
4,004
|
|
|
6,881
|
|
|
191
|
|
|
23
|
|
|
7,049
|
|
||||||||
State and political subdivisions
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||||||
Collateralized mortgage obligations
|
1,687
|
|
|
60
|
|
|
29
|
|
|
1,718
|
|
|
2,369
|
|
|
107
|
|
|
15
|
|
|
2,461
|
|
||||||||
Total
|
$
|
29,952
|
|
|
$
|
179
|
|
|
$
|
333
|
|
|
$
|
29,798
|
|
|
$
|
17,723
|
|
|
$
|
309
|
|
|
$
|
190
|
|
|
$
|
17,842
|
|
|
|
|
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
||||||||||||||||||
December 31, 2015
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
||||||||||||
(In millions)
|
|
|
|
|
|
||||||||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Direct obligations
|
$
|
3,123
|
|
|
$
|
4
|
|
|
$
|
121
|
|
|
$
|
1
|
|
|
$
|
3,244
|
|
|
$
|
5
|
|
Mortgage-backed securities
|
5,729
|
|
|
48
|
|
|
3,166
|
|
|
86
|
|
|
8,895
|
|
|
134
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Student loans
|
2,841
|
|
|
54
|
|
|
3,217
|
|
|
144
|
|
|
6,058
|
|
|
198
|
|
||||||
Credit cards
|
838
|
|
|
7
|
|
|
490
|
|
|
30
|
|
|
1,328
|
|
|
37
|
|
||||||
Sub-prime
|
7
|
|
|
—
|
|
|
387
|
|
|
31
|
|
|
394
|
|
|
31
|
|
||||||
Other
|
720
|
|
|
3
|
|
|
43
|
|
|
—
|
|
|
763
|
|
|
3
|
|
||||||
Total asset-backed securities
|
4,406
|
|
|
64
|
|
|
4,137
|
|
|
205
|
|
|
8,543
|
|
|
269
|
|
||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
1,457
|
|
|
7
|
|
|
437
|
|
|
4
|
|
|
1,894
|
|
|
11
|
|
||||||
Asset-backed securities
|
2,190
|
|
|
7
|
|
|
22
|
|
|
—
|
|
|
2,212
|
|
|
7
|
|
||||||
Government securities
|
1,691
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,691
|
|
|
—
|
|
||||||
Other
|
1,548
|
|
|
5
|
|
|
527
|
|
|
7
|
|
|
2,075
|
|
|
12
|
|
||||||
Total non-U.S. debt securities
|
6,886
|
|
|
19
|
|
|
986
|
|
|
11
|
|
|
7,872
|
|
|
30
|
|
||||||
State and political subdivisions
|
206
|
|
|
1
|
|
|
658
|
|
|
26
|
|
|
864
|
|
|
27
|
|
||||||
Collateralized mortgage obligations
|
1,511
|
|
|
14
|
|
|
217
|
|
|
8
|
|
|
1,728
|
|
|
22
|
|
||||||
Other U.S. debt securities
|
475
|
|
|
9
|
|
|
178
|
|
|
9
|
|
|
653
|
|
|
18
|
|
||||||
U.S. equity securities
|
—
|
|
|
—
|
|
|
5
|
|
|
3
|
|
|
5
|
|
|
3
|
|
||||||
Total
|
$
|
22,336
|
|
|
$
|
159
|
|
|
$
|
9,468
|
|
|
$
|
349
|
|
|
$
|
31,804
|
|
|
$
|
508
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Direct obligations
|
$
|
16,370
|
|
|
$
|
120
|
|
|
$
|
3,005
|
|
|
$
|
97
|
|
|
$
|
19,375
|
|
|
$
|
217
|
|
Mortgage-backed
|
560
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
560
|
|
|
8
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Student loans
|
896
|
|
|
25
|
|
|
615
|
|
|
22
|
|
|
1,511
|
|
|
47
|
|
||||||
Credit cards
|
636
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
636
|
|
|
1
|
|
||||||
Other
|
102
|
|
|
—
|
|
|
31
|
|
|
1
|
|
|
133
|
|
|
1
|
|
||||||
Total asset-backed securities
|
1,634
|
|
|
26
|
|
|
646
|
|
|
23
|
|
|
2,280
|
|
|
49
|
|
||||||
Non-U.S. mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
338
|
|
|
2
|
|
|
524
|
|
|
24
|
|
|
862
|
|
|
26
|
|
||||||
Asset-backed securities
|
1,015
|
|
|
3
|
|
|
69
|
|
|
—
|
|
|
1,084
|
|
|
3
|
|
||||||
Government securities
|
128
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
128
|
|
|
1
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
43
|
|
|
—
|
|
|
43
|
|
|
—
|
|
||||||
Total non-U.S. debt securities
|
1,481
|
|
|
6
|
|
|
636
|
|
|
24
|
|
|
2,117
|
|
|
30
|
|
||||||
Collateralized mortgage obligations
|
634
|
|
|
9
|
|
|
537
|
|
|
20
|
|
|
1,171
|
|
|
29
|
|
||||||
Total
|
$
|
20,679
|
|
|
$
|
169
|
|
|
$
|
4,824
|
|
|
$
|
164
|
|
|
$
|
25,503
|
|
|
$
|
333
|
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
||||||||||||||||||
December 31, 2014
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
||||||||||||
(In millions)
|
|
|
|
|
|
||||||||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Direct obligations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
167
|
|
|
$
|
1
|
|
|
$
|
167
|
|
|
$
|
1
|
|
Mortgage-backed securities
|
2,569
|
|
|
9
|
|
|
6,466
|
|
|
118
|
|
|
9,035
|
|
|
127
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Student loans
|
1,473
|
|
|
15
|
|
|
5,025
|
|
|
109
|
|
|
6,498
|
|
|
124
|
|
||||||
Credit cards
|
344
|
|
|
1
|
|
|
1,270
|
|
|
33
|
|
|
1,614
|
|
|
34
|
|
||||||
Sub-prime
|
—
|
|
|
—
|
|
|
896
|
|
|
56
|
|
|
896
|
|
|
56
|
|
||||||
Other
|
547
|
|
|
1
|
|
|
791
|
|
|
9
|
|
|
1,338
|
|
|
10
|
|
||||||
Total asset-backed securities
|
2,364
|
|
|
17
|
|
|
7,982
|
|
|
207
|
|
|
10,346
|
|
|
224
|
|
||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
1,350
|
|
|
2
|
|
|
170
|
|
|
2
|
|
|
1,520
|
|
|
4
|
|
||||||
Other
|
581
|
|
|
4
|
|
|
328
|
|
|
3
|
|
|
909
|
|
|
7
|
|
||||||
Total non-U.S. debt securities
|
1,931
|
|
|
6
|
|
|
498
|
|
|
5
|
|
|
2,429
|
|
|
11
|
|
||||||
State and political subdivisions
|
610
|
|
|
3
|
|
|
1,315
|
|
|
34
|
|
|
1,925
|
|
|
37
|
|
||||||
Collateralized mortgage obligations
|
731
|
|
|
2
|
|
|
311
|
|
|
10
|
|
|
1,042
|
|
|
12
|
|
||||||
Other U.S. debt securities
|
327
|
|
|
2
|
|
|
244
|
|
|
10
|
|
|
571
|
|
|
12
|
|
||||||
Total
|
$
|
8,532
|
|
|
$
|
39
|
|
|
$
|
16,983
|
|
|
$
|
385
|
|
|
$
|
25,515
|
|
|
$
|
424
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Direct obligations
|
$
|
76
|
|
|
$
|
1
|
|
|
$
|
4,891
|
|
|
$
|
146
|
|
|
$
|
4,967
|
|
|
$
|
147
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Student Loans
|
780
|
|
|
3
|
|
|
192
|
|
|
1
|
|
|
972
|
|
|
4
|
|
||||||
Other
|
124
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
124
|
|
|
1
|
|
||||||
Total asset-backed securities
|
904
|
|
|
4
|
|
|
192
|
|
|
1
|
|
|
1,096
|
|
|
5
|
|
||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
507
|
|
|
3
|
|
|
590
|
|
|
19
|
|
|
1,097
|
|
|
22
|
|
||||||
Asset-backed securities
|
699
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
699
|
|
|
1
|
|
||||||
Total non-U.S. debt securities
|
1,206
|
|
|
4
|
|
|
590
|
|
|
19
|
|
|
1,796
|
|
|
23
|
|
||||||
Collateralized mortgage obligations
|
422
|
|
|
4
|
|
|
547
|
|
|
11
|
|
|
969
|
|
|
15
|
|
||||||
Total
|
$
|
2,608
|
|
|
$
|
13
|
|
|
$
|
6,220
|
|
|
$
|
177
|
|
|
$
|
8,828
|
|
|
$
|
190
|
|
|
Under 1
Year
|
|
1 to 5
Years
|
|
6 to 10
Years
|
|
Over 10
Years
|
|
Total
|
||||||||||
(In millions)
|
|
|
|
|
|||||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
||||||||||
Direct obligations
|
$
|
2,000
|
|
|
$
|
3,223
|
|
|
$
|
40
|
|
|
$
|
455
|
|
|
$
|
5,718
|
|
Mortgage-backed securities
|
78
|
|
|
2,501
|
|
|
3,858
|
|
|
11,728
|
|
|
18,165
|
|
|||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Student loans
|
339
|
|
|
3,702
|
|
|
2,054
|
|
|
1,081
|
|
|
7,176
|
|
|||||
Credit cards
|
2
|
|
|
259
|
|
|
1,080
|
|
|
—
|
|
|
1,341
|
|
|||||
Sub-prime
|
1
|
|
|
5
|
|
|
3
|
|
|
410
|
|
|
419
|
|
|||||
Other
|
19
|
|
|
220
|
|
|
1,260
|
|
|
265
|
|
|
1,764
|
|
|||||
Total asset-backed securities
|
361
|
|
|
4,186
|
|
|
4,397
|
|
|
1,756
|
|
|
10,700
|
|
|||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities
|
1,103
|
|
|
3,375
|
|
|
648
|
|
|
1,945
|
|
|
7,071
|
|
|||||
Asset-backed securities
|
485
|
|
|
2,394
|
|
|
220
|
|
|
168
|
|
|
3,267
|
|
|||||
Government securities
|
2,736
|
|
|
1,619
|
|
|
—
|
|
|
—
|
|
|
4,355
|
|
|||||
Other
|
1,410
|
|
|
2,886
|
|
|
538
|
|
|
—
|
|
|
4,834
|
|
|||||
Total non-U.S. debt securities
|
5,734
|
|
|
10,274
|
|
|
1,406
|
|
|
2,113
|
|
|
19,527
|
|
|||||
State and political subdivisions
|
542
|
|
|
2,450
|
|
|
5,001
|
|
|
1,753
|
|
|
9,746
|
|
|||||
Collateralized mortgage obligations
|
350
|
|
|
80
|
|
|
472
|
|
|
2,085
|
|
|
2,987
|
|
|||||
Other U.S. debt securities
|
948
|
|
|
1,500
|
|
|
142
|
|
|
34
|
|
|
2,624
|
|
|||||
Total
|
$
|
10,013
|
|
|
$
|
24,214
|
|
|
$
|
15,316
|
|
|
$
|
19,924
|
|
|
$
|
69,467
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
||||||||||
Direct obligations
|
$
|
—
|
|
|
$
|
11,348
|
|
|
$
|
9,440
|
|
|
$
|
90
|
|
|
$
|
20,878
|
|
Mortgage-backed securities
|
1
|
|
|
12
|
|
|
—
|
|
|
597
|
|
|
610
|
|
|||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Student loans
|
—
|
|
|
193
|
|
|
304
|
|
|
1,095
|
|
|
1,592
|
|
|||||
Credit cards
|
—
|
|
|
680
|
|
|
217
|
|
|
—
|
|
|
897
|
|
|||||
Other
|
60
|
|
|
227
|
|
|
76
|
|
|
3
|
|
|
366
|
|
|||||
Total asset-backed securities
|
60
|
|
|
1,100
|
|
|
597
|
|
|
1,098
|
|
|
2,855
|
|
|||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities
|
435
|
|
|
507
|
|
|
95
|
|
|
1,165
|
|
|
2,202
|
|
|||||
Asset-backed securities
|
201
|
|
|
1,067
|
|
|
147
|
|
|
—
|
|
|
1,415
|
|
|||||
Government securities
|
129
|
|
|
110
|
|
|
—
|
|
|
—
|
|
|
239
|
|
|||||
Other
|
22
|
|
|
43
|
|
|
—
|
|
|
—
|
|
|
65
|
|
|||||
Total non-U.S. debt securities
|
787
|
|
|
1,727
|
|
|
242
|
|
|
1,165
|
|
|
3,921
|
|
|||||
State and political subdivisions
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Collateralized mortgage obligations
|
251
|
|
|
142
|
|
|
489
|
|
|
805
|
|
|
1,687
|
|
|||||
Total
|
$
|
1,100
|
|
|
$
|
14,329
|
|
|
$
|
10,768
|
|
|
$
|
3,755
|
|
|
$
|
29,952
|
|
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Gross realized gains from sales of AFS investment securities
|
$
|
57
|
|
|
$
|
64
|
|
|
$
|
104
|
|
Gross realized losses from sales of AFS investment securities
|
(62
|
)
|
|
(49
|
)
|
|
(90
|
)
|
|||
Net impairment losses:
|
|
|
|
|
|
||||||
Gross losses from OTTI
|
(1
|
)
|
|
(1
|
)
|
|
(21
|
)
|
|||
Losses reclassified (from) to other comprehensive income
|
—
|
|
|
(10
|
)
|
|
(2
|
)
|
|||
Net impairment losses
(1)
|
(1
|
)
|
|
(11
|
)
|
|
(23
|
)
|
|||
Gains (losses) related to investment securities, net
|
$
|
(6
|
)
|
|
$
|
4
|
|
|
$
|
(9
|
)
|
(1)
Net impairment losses, recognized in our consolidated statement of income, were composed of the following:
|
|
|
|
|
|
||||||
Impairment associated with expected credit losses
|
$
|
—
|
|
|
$
|
(10
|
)
|
|
$
|
(11
|
)
|
Impairment associated with management's intent to sell impaired securities prior to recovery in value
|
—
|
|
|
—
|
|
|
(6
|
)
|
|||
Impairment associated with adverse changes in timing of expected future cash flows
|
(1
|
)
|
|
(1
|
)
|
|
(6
|
)
|
|||
Net impairment losses
|
$
|
(1
|
)
|
|
$
|
(11
|
)
|
|
$
|
(23
|
)
|
|
Twelve Months Ended December 31,
|
||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Balance, beginning of period
|
$
|
115
|
|
|
$
|
122
|
|
|
$
|
124
|
|
Additions:
|
|
|
|
|
|
||||||
Losses for which OTTI was not previously recognized
|
1
|
|
|
—
|
|
|
14
|
|
|||
Losses for which OTTI was previously recognized
|
—
|
|
|
11
|
|
|
9
|
|
|||
Deductions:
|
|
|
|
|
|
||||||
Previously recognized losses related to securities sold or matured
|
(24
|
)
|
|
(12
|
)
|
|
(25
|
)
|
|||
Losses related to securities intended or required to be sold
|
—
|
|
|
(6
|
)
|
|
—
|
|
|||
Balance, end of period
|
$
|
92
|
|
|
$
|
115
|
|
|
$
|
122
|
|
•
|
the identification and evaluation of securities that have indications of potential OTTI, such as issuer-specific concerns, including deteriorating financial condition or bankruptcy;
|
•
|
the analysis of expected future cash flows of securities, based on quantitative and qualitative factors;
|
•
|
the analysis of the collectability of those future cash flows, including information about past events, current conditions, and reasonable and supportable forecasts;
|
•
|
the analysis of the underlying collateral for mortgage- and asset-backed securities;
|
•
|
the analysis of individual impaired securities, including consideration of the length of time the security has been in an unrealized loss position, the anticipated recovery period, and the magnitude of the overall price decline;
|
•
|
evaluation of factors or triggers that could cause individual securities to be deemed OTTI and those that would not support OTTI; and
|
•
|
documentation of the results of these analyses.
|
•
|
certain macroeconomic drivers;
|
•
|
certain industry-specific drivers;
|
•
|
the length of time the security has been impaired;
|
•
|
the severity of the impairment;
|
•
|
the cause of the impairment and the financial condition and near-term prospects of the issuer;
|
•
|
activity in the market with respect to the issuer's securities, which may indicate adverse credit conditions; and
|
•
|
our intention not to sell, and the likelihood that we will not be required to sell, the security for a period of time sufficient to allow for its recovery in value.
|
(In millions)
|
December 31, 2015
|
|
December 31, 2014
|
||||
Institutional:
|
|
|
|
||||
Investment funds:
|
|
|
|
||||
U.S.
|
$
|
11,136
|
|
|
$
|
11,388
|
|
Non-U.S.
|
1,678
|
|
|
2,333
|
|
||
Commercial and financial:
|
|
|
|
||||
U.S.
|
4,671
|
|
|
3,061
|
|
||
Non-U.S.
|
278
|
|
|
256
|
|
||
Purchased receivables:
|
|
|
|
||||
U.S.
|
93
|
|
|
124
|
|
||
Non-U.S.
|
—
|
|
|
6
|
|
||
Lease financing:
|
|
|
|
||||
U.S.
|
337
|
|
|
335
|
|
||
Non-U.S.
|
578
|
|
|
668
|
|
||
Total institutional
|
18,771
|
|
|
18,171
|
|
||
Commercial real estate:
|
|
|
|
||||
U.S.
|
28
|
|
|
28
|
|
||
Total loans and leases
|
18,799
|
|
|
18,199
|
|
||
Allowance for loan losses
|
(46
|
)
|
|
(38
|
)
|
||
Loans and leases, net of allowance for loan losses
|
$
|
18,753
|
|
|
$
|
18,161
|
|
(In millions)
|
2015
|
|
2014
|
||||
Net rental income receivable
|
$
|
1,159
|
|
|
$
|
1,284
|
|
Estimated residual values
|
89
|
|
|
89
|
|
||
Unearned income
|
(333
|
)
|
|
(370
|
)
|
||
Investment in leveraged lease financing
|
915
|
|
|
1,003
|
|
||
Less: related deferred income tax liabilities
|
(334
|
)
|
|
(326
|
)
|
||
Net investment in leveraged lease financing
|
$
|
581
|
|
|
$
|
677
|
|
|
Institutional
|
|
|
|
|
||||||||||||||||||
December 31, 2015
|
Investment
Funds
|
|
Commercial and Financial
|
|
Purchased
Receivables
|
|
Lease
Financing
|
|
Commercial Real Estate
|
|
Total
Loans and
Leases
|
||||||||||||
(In millions)
|
|
|
|
|
|||||||||||||||||||
Investment grade
(1)
|
$
|
12,415
|
|
|
$
|
1,780
|
|
|
$
|
93
|
|
|
$
|
888
|
|
|
$
|
28
|
|
|
$
|
15,204
|
|
Speculative
(2)
|
399
|
|
|
3,138
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
3,564
|
|
||||||
Special mention
(3)
|
—
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
||||||
Total
|
$
|
12,814
|
|
|
$
|
4,949
|
|
|
$
|
93
|
|
|
$
|
915
|
|
|
$
|
28
|
|
|
$
|
18,799
|
|
|
Institutional
|
|
|
|
|
||||||||||||||||||
December 31, 2014
|
Investment
Funds
|
|
Commercial and Financial
|
|
Purchased
Receivables
|
|
Lease
Financing
|
|
Commercial Real Estate
|
|
Total
Loans and
Leases
|
||||||||||||
(In millions)
|
|
|
|
|
|||||||||||||||||||
Investment grade
(1)
|
$
|
13,304
|
|
|
$
|
1,011
|
|
|
$
|
130
|
|
|
$
|
976
|
|
|
$
|
—
|
|
|
$
|
15,421
|
|
Speculative
(2)
|
417
|
|
|
2,306
|
|
|
—
|
|
|
27
|
|
|
28
|
|
|
2,778
|
|
||||||
Total
|
$
|
13,721
|
|
|
$
|
3,317
|
|
|
$
|
130
|
|
|
$
|
1,003
|
|
|
$
|
28
|
|
|
$
|
18,199
|
|
|
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
(In millions)
|
Institutional
|
|
Commercial Real Estate
|
|
Total Loans and Leases
|
|
Institutional
|
|
Commercial Real Estate
|
|
Total Loans and Leases
|
||||||||||||
Loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Collectively evaluated for impairment
(1)
|
$
|
18,771
|
|
|
$
|
28
|
|
|
$
|
18,799
|
|
|
$
|
18,171
|
|
|
$
|
28
|
|
|
$
|
18,199
|
|
Total
|
$
|
18,771
|
|
|
$
|
28
|
|
|
$
|
18,799
|
|
|
$
|
18,171
|
|
|
$
|
28
|
|
|
$
|
18,199
|
|
|
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||
(In millions)
|
Recorded Investment
|
|
Unpaid
Principal
Balance
(1)
|
|
Recorded Investment
|
|
Unpaid
Principal
Balance
(1)
|
||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
||||||||
CRE—property development—acquired credit-impaired
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
—
|
|
|
$
|
34
|
|
CRE—other—acquired credit-impaired
|
—
|
|
|
22
|
|
|
—
|
|
|
22
|
|
||||
Total CRE
|
$
|
—
|
|
|
$
|
56
|
|
|
$
|
—
|
|
|
$
|
56
|
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
(In millions)
|
Total Loans and Leases
|
|
Total Loans and Leases
|
|
Total Loans and Leases
|
||||||
Allowance for loan losses
(1)(2)
:
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
38
|
|
|
$
|
28
|
|
|
$
|
22
|
|
Provision for loan losses
|
12
|
|
|
10
|
|
|
6
|
|
|||
Charge-offs
|
(4
|
)
|
|
—
|
|
|
—
|
|
|||
Ending balance
|
$
|
46
|
|
|
$
|
38
|
|
|
$
|
28
|
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||||||||
(In millions)
|
Investment
Servicing
|
|
Investment
Management
|
|
Total
|
|
Investment
Servicing
|
|
Investment
Management
|
|
Total
|
||||||||||||
Goodwill:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
$
|
5,793
|
|
|
$
|
33
|
|
|
$
|
5,826
|
|
|
$
|
5,999
|
|
|
$
|
37
|
|
|
$
|
6,036
|
|
Foreign currency translation
|
(152
|
)
|
|
(3
|
)
|
|
(155
|
)
|
|
(206
|
)
|
|
(4
|
)
|
|
(210
|
)
|
||||||
Ending balance
|
$
|
5,641
|
|
|
$
|
30
|
|
|
$
|
5,671
|
|
|
$
|
5,793
|
|
|
$
|
33
|
|
|
$
|
5,826
|
|
|
Years Ended December 31,
|
||||||||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||||||||
(In millions)
|
Investment
Servicing
|
|
Investment
Management
|
|
Total
|
|
Investment
Servicing
|
|
Investment
Management
|
|
Total
|
||||||||||||
Other intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
$
|
1,998
|
|
|
$
|
27
|
|
|
$
|
2,025
|
|
|
$
|
2,321
|
|
|
$
|
39
|
|
|
$
|
2,360
|
|
Acquisitions
|
16
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization
|
(187
|
)
|
|
(10
|
)
|
|
(197
|
)
|
|
(213
|
)
|
|
(9
|
)
|
|
(222
|
)
|
||||||
Foreign currency translation and other, net
|
(74
|
)
|
|
(2
|
)
|
|
(76
|
)
|
|
(110
|
)
|
|
(3
|
)
|
|
(113
|
)
|
||||||
Ending balance
|
$
|
1,753
|
|
|
$
|
15
|
|
|
$
|
1,768
|
|
|
$
|
1,998
|
|
|
$
|
27
|
|
|
$
|
2,025
|
|
|
Years Ended December 31,
|
||||||||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||||||||
(In millions)
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
||||||||||||
Other intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Client relationships
|
$
|
2,486
|
|
|
$
|
(1,198
|
)
|
|
$
|
1,288
|
|
|
$
|
2,569
|
|
|
$
|
(1,088
|
)
|
|
$
|
1,481
|
|
Core deposits
|
667
|
|
|
(246
|
)
|
|
421
|
|
|
688
|
|
|
(219
|
)
|
|
469
|
|
||||||
Other
|
147
|
|
|
(88
|
)
|
|
59
|
|
|
214
|
|
|
(139
|
)
|
|
75
|
|
||||||
Total
|
$
|
3,300
|
|
|
$
|
(1,532
|
)
|
|
$
|
1,768
|
|
|
$
|
3,471
|
|
|
$
|
(1,446
|
)
|
|
$
|
2,025
|
|
(In millions)
|
December 31, 2015
|
|
December 31, 2014
|
||||
Collateral deposits, net
|
$
|
21,465
|
|
|
$
|
18,134
|
|
Derivative instruments, net
|
4,777
|
|
|
7,934
|
|
||
Bank-owned life insurance
|
3,078
|
|
|
2,402
|
|
||
Investments in joint ventures and other unconsolidated entities
|
2,034
|
|
|
1,798
|
|
||
Accounts receivable
|
1,018
|
|
|
513
|
|
||
Receivable for securities settlement
|
311
|
|
|
218
|
|
||
Prepaid expenses
|
284
|
|
|
259
|
|
||
Deferred tax assets, net of valuation allowance
(1)
|
182
|
|
|
214
|
|
||
Income taxes receivable
|
154
|
|
|
396
|
|
||
Deposits with clearing organizations
|
127
|
|
|
197
|
|
||
Other
|
510
|
|
|
535
|
|
||
Total
|
$
|
33,940
|
|
|
$
|
32,600
|
|
|
|
|
Securities Sold Under
Repurchase Agreements
|
|
Federal Funds Purchased
|
||||||||||||||||||||
(Dollars in millions)
|
2015
|
|
2014
|
|
2013
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||
Balance as of December 31
|
$
|
4,499
|
|
|
$
|
8,925
|
|
|
$
|
7,953
|
|
|
$
|
6
|
|
|
$
|
21
|
|
|
$
|
19
|
|
Maximum outstanding as of any month-end
|
10,977
|
|
|
10,955
|
|
|
11,538
|
|
|
29
|
|
|
29
|
|
|
570
|
|
||||||
Average outstanding during the year
|
8,875
|
|
|
8,817
|
|
|
8,436
|
|
|
21
|
|
|
20
|
|
|
298
|
|
||||||
Weighted-average interest rate as of year-end
|
.020
|
%
|
|
.005
|
%
|
|
.003
|
%
|
|
.03
|
%
|
|
.01
|
%
|
|
.13
|
%
|
||||||
Weighted-average interest rate for the year
|
.01
|
|
|
.00
|
|
|
.01
|
|
|
.01
|
|
|
.00
|
|
|
.00
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Tax-Exempt
Investment Program
|
|
Corporate Commercial Paper
Program
|
||||||||||||||||||||
(Dollars in millions)
|
2015
|
|
2014
|
|
2013
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||
Balance as of December 31
|
$
|
1,748
|
|
|
$
|
1,870
|
|
|
$
|
1,948
|
|
|
$
|
—
|
|
|
$
|
2,485
|
|
|
$
|
1,819
|
|
Maximum outstanding as of any month-end
|
1,865
|
|
|
1,938
|
|
|
2,135
|
|
|
2,919
|
|
|
2,485
|
|
|
2,535
|
|
||||||
Average outstanding during the year
|
1,807
|
|
|
1,903
|
|
|
2,030
|
|
|
1,897
|
|
|
2,136
|
|
|
1,632
|
|
||||||
Weighted-average interest rate as of year-end
|
.03
|
%
|
|
.06
|
%
|
|
.09
|
%
|
|
.00
|
%
|
|
.16
|
%
|
|
.14
|
%
|
||||||
Weighted-average interest rate for the year
|
.06
|
|
|
.08
|
|
|
.13
|
|
|
.26
|
|
|
.17
|
|
|
.18
|
|
(In millions)
|
|
||
Collateralized by securities purchased under resale agreements
|
$
|
202
|
|
Collateralized by investment securities
|
4,195
|
|
|
Collateralized by trading account assets
|
102
|
|
|
Total
|
$
|
4,499
|
|
|
U.S. Government
Securities Sold
|
|
Repurchase
Agreements
|
||||||||
(In millions)
|
Amortized
Cost
|
|
Fair Value
|
|
Amortized
Cost
|
||||||
Overnight maturity
|
$
|
4,348
|
|
|
$
|
4,284
|
|
|
$
|
4,195
|
|
As of December 31,
|
2015
|
|
2014
|
||||
(In millions)
|
|
|
|
||||
Statutory business trusts:
|
|
|
|
||||
Floating-rate subordinated notes due to State Street Capital Trust IV in 2037
|
$
|
800
|
|
|
$
|
800
|
|
Floating-rate subordinated notes due to State Street Capital Trust I in 2028
|
155
|
|
|
155
|
|
||
Parent company and non-banking subsidiary issuances:
|
|
|
|
||||
3.55% notes due 2025
(1)
|
1,307
|
|
|
—
|
|
||
2.55% notes due 2020
(1)
|
1,199
|
|
|
—
|
|
||
3.70% notes due in 2023
(1)
|
1,050
|
|
|
1,043
|
|
||
3.30% notes due 2024
(1)
|
1,013
|
|
|
999
|
|
||
2.875% notes due 2016
|
1,001
|
|
|
1,005
|
|
||
3.10% subordinated notes due 2023
(1)
|
997
|
|
|
983
|
|
||
4.375% notes due 2021
(1)
|
740
|
|
|
730
|
|
||
4.956% junior subordinated debentures due 2018
(1)
|
519
|
|
|
528
|
|
||
Floating-rate notes due 2020
|
500
|
|
|
—
|
|
||
1.35% notes due 2018
(1)
|
496
|
|
|
492
|
|
||
5.375% notes due 2017
(1)
|
449
|
|
|
450
|
|
||
Long-term capital leases
|
334
|
|
|
769
|
|
||
7.35% notes due 2026
|
150
|
|
|
150
|
|
||
State Street Bank issuances:
|
|
|
|
||||
Floating-rate extendible notes due 2016
|
—
|
|
|
900
|
|
||
5.25% subordinated notes due 2018
|
424
|
|
|
433
|
|
||
5.30% subordinated notes due 2016
|
400
|
|
|
405
|
|
||
Floating-rate subordinated notes due 2015
|
—
|
|
|
200
|
|
||
Total long-term debt
|
$
|
11,534
|
|
|
$
|
10,042
|
|
|
|
|
|
(1)
|
We have entered into interest-rate swap agreements, recorded as fair value hedges, to modify our interest expense on these senior and subordinated notes from a fixed rate to a floating rate. As of
December 31, 2015
, the carrying value of long-term debt associated with these fair value hedges increased
$105 million
. As of
December 31, 2014
, the carrying value of long-term debt associated with these fair value hedges increased
$76 million
. Refer to Note
10
for additional information about fair value hedges.
|
(In millions)
|
December 31,
2015 |
|
December 31,
2014 |
||||
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Interest-rate contracts:
|
|
|
|
||||
Swap agreements and forwards
|
$
|
336
|
|
|
$
|
645
|
|
Options and caps purchased
|
—
|
|
|
7
|
|
||
Options and caps written
|
—
|
|
|
7
|
|
||
Futures
|
2,621
|
|
|
3,939
|
|
||
Foreign exchange contracts:
|
|
|
|
||||
Forward, swap and spot
|
1,274,277
|
|
|
1,231,344
|
|
||
Options purchased
|
403
|
|
|
2,767
|
|
||
Options written
|
404
|
|
|
2,404
|
|
||
Credit derivative contracts:
|
|
|
|
||||
Credit swap agreements
|
141
|
|
|
191
|
|
||
Commodity and equity contracts:
|
|
|
|
||||
Commodity
(1)
|
113
|
|
|
26
|
|
||
Equity
(1)
|
87
|
|
|
2
|
|
||
Other:
|
|
|
|
||||
Stable value contracts
|
24,583
|
|
|
23,409
|
|
||
Deferred value awards
(2)
|
320
|
|
|
210
|
|
||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Interest-rate contracts:
|
|
|
|
||||
Swap agreements
|
9,398
|
|
|
6,077
|
|
||
Foreign exchange contracts:
|
|
|
|
||||
Forward and swap
|
4,515
|
|
|
2,705
|
|
|
|
|
December 31, 2015
(1)
|
||
(In millions)
|
Fair
Value
Hedges
|
||
Investment securities available for sale
|
$
|
1,698
|
|
Long-term debt
(2)
|
7,700
|
|
|
Total
|
$
|
9,398
|
|
|
December 31, 2014
(1)
|
||
(In millions)
|
Fair
Value Hedges |
||
Investment securities available for sale
|
$
|
2,577
|
|
Long-term debt
(2)
|
3,500
|
|
|
Total
|
$
|
6,077
|
|
|
|
Derivative Assets
(1)
|
|||||||
|
Fair Value
|
||||||
(In millions)
|
December 31, 2015
|
|
December 31, 2014
|
||||
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Foreign exchange contracts
|
$
|
10,799
|
|
|
$
|
14,626
|
|
Interest-rate contracts
|
2
|
|
|
15
|
|
||
Other derivative contracts
|
5
|
|
|
2
|
|
||
Total
|
$
|
10,806
|
|
|
$
|
14,643
|
|
Derivatives designated as hedging instruments:
|
|
|
|
||||
Foreign exchange contracts
|
$
|
517
|
|
|
$
|
509
|
|
Interest-rate contracts
|
133
|
|
|
62
|
|
||
Total
|
$
|
650
|
|
|
$
|
571
|
|
|
|
Derivative Liabilities
(1)
|
|||||||
|
Fair Value
|
||||||
(In millions)
|
December 31, 2015
|
|
December 31, 2014
|
||||
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Foreign exchange contracts
|
$
|
10,795
|
|
|
$
|
14,922
|
|
Other derivative contracts
|
103
|
|
|
70
|
|
||
Interest-rate contracts
|
2
|
|
|
16
|
|
||
Total
|
$
|
10,900
|
|
|
$
|
15,008
|
|
Derivatives designated as hedging instruments:
|
|
|
|
||||
Interest-rate contracts
|
$
|
180
|
|
|
$
|
223
|
|
Foreign exchange contracts
|
73
|
|
|
3
|
|
||
Total
|
$
|
253
|
|
|
$
|
226
|
|
|
|
|
Location of Gain (Loss) on
Derivative in Consolidated
Statement of Income
|
Amount of Gain (Loss) on Derivative Recognized
in Consolidated Statement of Income
|
|||||||||||
|
|
|
Years Ended December 31,
|
||||||||||
(In millions)
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|||||||
Foreign exchange contracts
|
Trading services revenue
|
|
$
|
686
|
|
|
$
|
612
|
|
|
$
|
586
|
|
Interest-rate contracts
|
Trading services revenue
|
|
(2
|
)
|
|
1
|
|
|
2
|
|
|||
Credit derivative contracts
|
Trading services revenue
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|||
Credit derivative contracts
|
Processing fees and other revenue
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
|||
Other derivative contracts
|
Trading services revenue
|
|
8
|
|
|
(2
|
)
|
|
—
|
|
|||
Total
|
|
|
$
|
691
|
|
|
$
|
611
|
|
|
$
|
589
|
|
|
Location of (Gain) Loss on
Derivative in Consolidated
Statement of Income
|
Amount of (Gain) Loss on Derivative Recognized
in Consolidated Statement of Income
|
|||||||||||
|
|
|
Years Ended December 31,
|
||||||||||
(In millions)
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|||||||
Other derivative contracts
|
Compensation and employee benefits
|
|
$
|
149
|
|
|
$
|
106
|
|
|
14
|
|
|
Total
|
|
|
$
|
149
|
|
|
$
|
106
|
|
|
$
|
14
|
|
|
Location of Gain (Loss) on Derivative in Consolidated Statement of Income
|
Amount of Gain
(Loss) on Derivative
Recognized in
Consolidated
Statement of Income
|
|
Hedged Item in Fair Value Hedging Relationship
|
|
Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income
|
Amount of Gain
(Loss) on Hedged
Item Recognized in
Consolidated
Statement of Income
|
||||||||||||||||||||
|
|
Years Ended December 31,
|
|
|
|
|
Years Ended December 31,
|
||||||||||||||||||||
(In millions)
|
|
2015
|
|
2014
|
|
2013
|
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||
Derivatives designated as fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Foreign exchange contracts
|
Processing fees and
other revenue |
$
|
(101
|
)
|
|
$
|
(92
|
)
|
|
(183
|
)
|
|
Investment securities
|
|
Processing fees and
other revenue |
$
|
101
|
|
|
$
|
92
|
|
|
$
|
183
|
|
|
Foreign exchange contracts
|
Processing fees and other revenue
|
(241
|
)
|
|
—
|
|
|
—
|
|
|
FX deposit
|
|
Processing fees and other revenue
|
241
|
|
|
—
|
|
|
—
|
|
||||||
Interest-rate contracts
|
Processing fees and
other revenue
|
16
|
|
|
(44
|
)
|
|
32
|
|
|
Available-for-sale securities
|
|
Processing fees and
other revenue
(1)
|
(17
|
)
|
|
39
|
|
|
(30
|
)
|
||||||
Interest-rate contracts
|
Processing fees and
other revenue |
61
|
|
|
150
|
|
|
(192
|
)
|
|
Long-term debt
|
|
Processing fees and
other revenue |
(54
|
)
|
|
(138
|
)
|
|
175
|
|
||||||
Total
|
|
$
|
(265
|
)
|
|
$
|
14
|
|
|
$
|
(343
|
)
|
|
|
|
|
$
|
271
|
|
|
$
|
(7
|
)
|
|
$
|
328
|
|
|
|
|
|
|
|
Amount of Gain
(Loss) on Derivative
Recognized in Other
Comprehensive
Income
|
|
Location of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income
|
|
Amount of Gain
(Loss) Reclassified
from OCI to
Consolidated
Statement of Income
|
|
Location of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
|
|
Amount of Gain
(Loss) on Derivative
Recognized in
Consolidated
Statement of Income
|
||||||||||||||||||||||||||||||
|
Years Ended December 31,
|
|
|
|
Years Ended December 31,
|
|
|
|
Years Ended December 31,
|
||||||||||||||||||||||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
|
|
|
2015
|
|
2014
|
|
2013
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||||||||
Derivatives designated as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interest-rate contracts
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
9
|
|
|
Net interest revenue
|
|
$
|
(4
|
)
|
|
$
|
(4
|
)
|
|
$
|
(4
|
)
|
|
Net interest revenue
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
3
|
|
Foreign exchange contracts
|
55
|
|
|
126
|
|
|
153
|
|
|
Net interest revenue
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net interest revenue
|
|
10
|
|
|
6
|
|
|
6
|
|
|||||||||
Total
|
$
|
55
|
|
|
$
|
124
|
|
|
$
|
162
|
|
|
|
|
$
|
(4
|
)
|
|
$
|
(4
|
)
|
|
$
|
(4
|
)
|
|
|
|
$
|
10
|
|
|
$
|
9
|
|
|
$
|
9
|
|
Assets:
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
(In millions)
|
|
Gross Amounts of Recognized Assets
(1)(2)
|
|
Gross Amounts Offset in Statement of Condition
(3)
|
|
Net Amounts of Assets Presented in Statement of Condition
|
|
Gross Amounts of Recognized Assets
(1)
|
|
Gross Amounts Offset in Statement of Condition
(3)
|
|
Net Amounts of Assets Presented in Statement of Condition
|
||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign exchange contracts
|
|
$
|
11,316
|
|
|
$
|
(5,896
|
)
|
|
$
|
5,420
|
|
|
$
|
15,135
|
|
|
$
|
(6,275
|
)
|
|
$
|
8,860
|
|
Interest-rate contracts
|
|
135
|
|
|
(5
|
)
|
|
130
|
|
|
77
|
|
|
(21
|
)
|
|
56
|
|
||||||
Equity derivative contracts
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other derivative contracts
|
|
4
|
|
|
(2
|
)
|
|
2
|
|
|
2
|
|
|
(1
|
)
|
|
1
|
|
||||||
Cash collateral netting
|
|
—
|
|
|
(776
|
)
|
|
(776
|
)
|
|
—
|
|
|
(983
|
)
|
|
(983
|
)
|
||||||
Total derivatives
|
|
$
|
11,456
|
|
|
$
|
(6,679
|
)
|
|
$
|
4,777
|
|
|
$
|
15,214
|
|
|
$
|
(7,280
|
)
|
|
$
|
7,934
|
|
Other financial instruments:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Resale agreements and securities borrowing
(4)
|
|
$
|
62,522
|
|
|
$
|
(38,997
|
)
|
|
$
|
23,525
|
|
|
$
|
47,488
|
|
|
$
|
(29,157
|
)
|
|
$
|
18,331
|
|
Total derivatives and other financial instruments
|
|
$
|
73,978
|
|
|
$
|
(45,676
|
)
|
|
$
|
28,302
|
|
|
$
|
62,702
|
|
|
$
|
(36,437
|
)
|
|
$
|
26,265
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||||||||||
|
|
|
|
Gross Amounts Not Offset in Statement of Condition
|
|
|
|
|
|
Gross Amounts Not Offset in Statement of Condition
|
|
|
||||||||||||||||||||
(In millions)
|
|
Net Amount of Assets Presented in Statement of Condition
|
|
Counterparty Netting
|
|
Cash and Securities Received
(1)
|
|
Net Amount
(2)
|
|
Net Amount of Assets Presented in Statement of Condition
|
|
Counterparty Netting
|
|
Collateral Received
(1)
|
|
Net Amount
(2)
|
||||||||||||||||
Derivatives
|
|
$
|
4,777
|
|
|
$
|
—
|
|
|
$
|
(405
|
)
|
|
$
|
4,372
|
|
|
$
|
7,934
|
|
|
$
|
—
|
|
|
$
|
(1,490
|
)
|
|
$
|
6,444
|
|
Resale agreements and securities borrowing
|
|
23,525
|
|
|
(63
|
)
|
|
(22,812
|
)
|
|
650
|
|
|
18,331
|
|
|
(128
|
)
|
|
(18,157
|
)
|
|
46
|
|
||||||||
Total
|
|
$
|
28,302
|
|
|
$
|
(63
|
)
|
|
$
|
(23,217
|
)
|
|
$
|
5,022
|
|
|
$
|
26,265
|
|
|
$
|
(128
|
)
|
|
$
|
(19,647
|
)
|
|
$
|
6,490
|
|
|
|
|
|
|
Liabilities:
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
(In millions)
|
|
Gross Amounts of Recognized Liabilities
(1)(2)
|
|
Gross Amounts Offset in Statement of Condition
(3)
|
|
Net Amounts of Liabilities Presented in Statement of Condition
|
|
Gross Amounts of Recognized Liabilities
(1)
|
|
Gross Amounts Offset in Statement of Condition
(3)
|
|
Net Amounts of Liabilities Presented in Statement of Condition
|
||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign exchange contracts
|
|
$
|
10,868
|
|
|
$
|
(5,896
|
)
|
|
$
|
4,972
|
|
|
$
|
14,925
|
|
|
$
|
(6,275
|
)
|
|
$
|
8,650
|
|
Interest-rate contracts
|
|
182
|
|
|
(5
|
)
|
|
177
|
|
|
239
|
|
|
(20
|
)
|
|
219
|
|
||||||
Other derivative contracts
|
|
103
|
|
|
(2
|
)
|
|
101
|
|
|
70
|
|
|
(1
|
)
|
|
69
|
|
||||||
Cash collateral netting
|
|
—
|
|
|
(1,118
|
)
|
|
(1,118
|
)
|
|
—
|
|
|
(2,630
|
)
|
|
(2,630
|
)
|
||||||
Total derivatives
|
|
$
|
11,153
|
|
|
$
|
(7,021
|
)
|
|
$
|
4,132
|
|
|
$
|
15,234
|
|
|
$
|
(8,926
|
)
|
|
$
|
6,308
|
|
Other financial instruments:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Repurchase agreements and securities lending
(4)
|
|
$
|
46,766
|
|
|
$
|
(38,997
|
)
|
|
$
|
7,769
|
|
|
$
|
44,562
|
|
|
$
|
(29,157
|
)
|
|
$
|
15,405
|
|
Total derivatives and other financial instruments
|
|
$
|
57,919
|
|
|
$
|
(46,018
|
)
|
|
$
|
11,901
|
|
|
$
|
59,796
|
|
|
$
|
(38,083
|
)
|
|
$
|
21,713
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||||||||||
|
|
|
|
Gross Amounts Not Offset in Statement of Condition
|
|
|
|
|
|
Gross Amounts Not Offset in Statement of Condition
|
|
|
||||||||||||||||||||
(In millions)
|
|
Net Amount of Liabilities Presented in Statement of Condition
|
|
Counterparty Netting
|
|
Cash and Securities Provided
(1)
|
|
Net Amount
(2)
|
|
Net Amount of Liabilities Presented in Statement of Condition
|
|
Counterparty Netting
|
|
Collateral Provided
(1)
|
|
Net Amount
(2)
|
||||||||||||||||
Derivatives
|
|
$
|
4,132
|
|
|
$
|
—
|
|
|
$
|
(64
|
)
|
|
$
|
4,068
|
|
|
$
|
6,308
|
|
|
$
|
—
|
|
|
$
|
(19
|
)
|
|
$
|
6,289
|
|
Repurchase agreements and securities lending
|
|
7,769
|
|
|
(63
|
)
|
|
(5,287
|
)
|
|
2,419
|
|
|
15,405
|
|
|
(128
|
)
|
|
(13,872
|
)
|
|
1,405
|
|
||||||||
Total
|
|
$
|
11,901
|
|
|
$
|
(63
|
)
|
|
$
|
(5,351
|
)
|
|
$
|
6,487
|
|
|
$
|
21,713
|
|
|
$
|
(128
|
)
|
|
$
|
(13,891
|
)
|
|
$
|
7,694
|
|
|
|
|
|
|
|
|
Remaining Contractual Maturity of the Agreements
|
||||||||||||||
(In millions)
|
|
Overnight and Continuous
|
|
Up to 30 days
|
|
30 – 90 days
|
|
Total
|
||||||||
Repurchase agreements:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and agency securities
|
|
$
|
37,157
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
37,162
|
|
Non-U.S. sovereign debt
|
|
—
|
|
|
97
|
|
|
—
|
|
|
97
|
|
||||
Total
|
|
37,157
|
|
|
102
|
|
|
—
|
|
|
37,259
|
|
||||
Securities lending transactions:
|
|
|
|
|
|
|
|
|
||||||||
Corporate debt securities
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Equity securities
|
|
8,502
|
|
|
—
|
|
|
1,002
|
|
|
9,504
|
|
||||
Non-U.S. sovereign debt
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||
Total
|
|
8,505
|
|
|
—
|
|
|
1,002
|
|
|
9,507
|
|
||||
Gross amount of recognized liabilities for repurchase agreements and securities lending
|
|
$
|
45,662
|
|
|
$
|
102
|
|
|
$
|
1,002
|
|
|
$
|
46,766
|
|
(In millions)
|
December 31, 2015
|
|
December 31, 2014
|
||||
Indemnified securities financing
|
$
|
320,436
|
|
|
$
|
349,766
|
|
Stable value protection
|
24,583
|
|
|
23,409
|
|
||
Asset purchase agreements
|
3,990
|
|
|
4,107
|
|
||
Standby letters of credit
|
4,700
|
|
|
4,720
|
|
(In millions)
|
December 31, 2015
|
|
December 31, 2014
|
||||
Fair value of indemnified securities financing
|
$
|
320,436
|
|
|
$
|
349,766
|
|
Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing
|
335,420
|
|
|
364,411
|
|
||
Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements
|
63,055
|
|
|
85,309
|
|
||
Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements
|
67,016
|
|
|
90,819
|
|
|
Issuance Date
|
|
Depositary Shares Issued
|
|
Ownership Interest per Depositary Share
|
|
Liquidation Preference Per Share
|
|
Liquidation Preference Per Depositary Share
|
|
Net Proceeds of Offering (in millions)
|
|
Redemption Date
(1)
|
|||||||
Preferred Stock:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Series C
|
August 2012
|
|
20,000,000
|
|
|
1/4,000th
|
|
$
|
100,000
|
|
|
$
|
25
|
|
|
$
|
488
|
|
|
September 15, 2017
|
Series D
|
February 2014
|
|
30,000,000
|
|
|
1/4,000th
|
|
100,000
|
|
|
25
|
|
|
742
|
|
|
March 15, 2024
|
|||
Series E
|
November 2014
|
|
30,000,000
|
|
|
1/4,000th
|
|
100,000
|
|
|
25
|
|
|
728
|
|
|
December 15, 2019
|
|||
Series F
|
May 2015
|
|
750,000
|
|
|
1/100th
|
|
100,000
|
|
|
1,000
|
|
|
742
|
|
|
September 15, 2020
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||||||||
|
Dividends Declared
|
|
Dividends Declared per Depositary Share
|
|
Total (in millions)
|
|
Dividends Declared
|
|
Dividends Declared per Depositary Share
|
|
Total (in millions)
|
||||||||||||
Preferred Stock:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Series C
|
$
|
5,250
|
|
|
$
|
1.32
|
|
|
$
|
26
|
|
|
$
|
5,252
|
|
|
$
|
1.32
|
|
|
$
|
26
|
|
Series D
|
5,900
|
|
|
1.48
|
|
|
44
|
|
|
4,605
|
|
|
1.15
|
|
|
35
|
|
||||||
Series E
|
6,333
|
|
|
1.60
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Series F
|
1,663
|
|
|
16.63
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
|
|
|
$
|
130
|
|
|
|
|
|
|
$
|
61
|
|
|
Year Ended December 31, 2015
|
|||||||||||||||||
|
Amount Authorized (in billions)
|
|
Shares Purchased (in millions)
|
|
Average Cost per Share
|
|
Total Purchased (in millions)
|
|
Amount Remaining Under the Program
(in millions)
|
|||||||||
2015 Program
|
$
|
1.8
|
|
|
14.2
|
|
|
$
|
73.72
|
|
|
$
|
1,050
|
|
|
$
|
780
|
|
2014 Program
|
1.7
|
|
|
6.3
|
|
|
74.88
|
|
|
470
|
|
|
—
|
|
||||
Total
|
|
|
20.5
|
|
|
$
|
74.07
|
|
|
$
|
1,520
|
|
|
|
|
Years Ended December 31,
|
||||||||||||||
|
Dividends Declared per Share
|
|
Total
(in millions)
|
|
Dividends Declared per Share
|
|
Total
(in millions)
|
||||||||
|
2015
|
|
2014
|
||||||||||||
Common Stock
|
$
|
1.32
|
|
|
$
|
536
|
|
|
$
|
1.16
|
|
|
$
|
490
|
|
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Net unrealized gains on cash flow hedges
|
$
|
293
|
|
|
$
|
276
|
|
|
$
|
161
|
|
Net unrealized gains (losses) on available-for-sale securities portfolio
|
9
|
|
|
273
|
|
|
(56
|
)
|
|||
Net unrealized gains (losses) related to reclassified available-for-sale securities
|
(28
|
)
|
|
39
|
|
|
(72
|
)
|
|||
Net unrealized gains (losses) on available-for-sale securities
|
(19
|
)
|
|
312
|
|
|
(128
|
)
|
|||
Net unrealized losses on available-for-sale securities designated in fair value hedges
|
(109
|
)
|
|
(121
|
)
|
|
(97
|
)
|
|||
Other-than-temporary impairment on available-for-sale securities related to factors other than credit
|
—
|
|
|
1
|
|
|
4
|
|
|||
Net unrealized losses on hedges of net investments in non-U.S. subsidiaries
|
(14
|
)
|
|
(14
|
)
|
|
(14
|
)
|
|||
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit
|
(16
|
)
|
|
(29
|
)
|
|
(47
|
)
|
|||
Net unrealized losses on retirement plans
|
(183
|
)
|
|
(272
|
)
|
|
(203
|
)
|
|||
Foreign currency translation
|
(1,394
|
)
|
|
(660
|
)
|
|
229
|
|
|||
Total
|
$
|
(1,442
|
)
|
|
$
|
(507
|
)
|
|
$
|
(95
|
)
|
(In millions)
|
Net Unrealized Gains (Losses) on Cash Flow Hedges
|
|
Net Unrealized Gains (Losses) on Available-for-Sale Securities
|
|
Net Unrealized Losses on Hedges of Net Investments in Non-U.S. Subsidiaries
|
|
Other-Than-Temporary Impairment on Held-to-Maturity Securities
|
|
Net Unrealized Losses on Retirement Plans
|
|
Foreign Currency Translation
|
|
Total
|
||||||||||||||
Balance as of December 31, 2013
|
$
|
161
|
|
|
$
|
(221
|
)
|
|
$
|
(14
|
)
|
|
$
|
(47
|
)
|
|
$
|
(203
|
)
|
|
$
|
229
|
|
|
$
|
(95
|
)
|
Other comprehensive income (loss) before reclassifications
|
112
|
|
|
422
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
(889
|
)
|
|
(338
|
)
|
|||||||
Amounts reclassified into (out of) earnings
|
3
|
|
|
(9
|
)
|
|
—
|
|
|
1
|
|
|
(69
|
)
|
|
—
|
|
|
(74
|
)
|
|||||||
Other comprehensive income (loss)
|
115
|
|
|
413
|
|
|
—
|
|
|
18
|
|
|
(69
|
)
|
|
(889
|
)
|
|
(412
|
)
|
|||||||
Balance as of December 31, 2014
|
$
|
276
|
|
|
$
|
192
|
|
|
$
|
(14
|
)
|
|
$
|
(29
|
)
|
|
$
|
(272
|
)
|
|
$
|
(660
|
)
|
|
$
|
(507
|
)
|
Other comprehensive income (loss) before reclassifications
|
20
|
|
|
(314
|
)
|
|
—
|
|
|
15
|
|
|
1
|
|
|
(734
|
)
|
|
(1,012
|
)
|
|||||||
Amounts reclassified into (out of) earnings
|
(3
|
)
|
|
(6
|
)
|
|
—
|
|
|
(2
|
)
|
|
88
|
|
|
—
|
|
|
77
|
|
|||||||
Other comprehensive income (loss)
|
17
|
|
|
(320
|
)
|
|
—
|
|
|
13
|
|
|
89
|
|
|
(734
|
)
|
|
(935
|
)
|
|||||||
Balance as of December 31, 2015
|
$
|
293
|
|
|
$
|
(128
|
)
|
|
$
|
(14
|
)
|
|
$
|
(16
|
)
|
|
$
|
(183
|
)
|
|
$
|
(1,394
|
)
|
|
$
|
(1,442
|
)
|
|
Twelve Months Ended December 31,
|
|
|
||||||
|
2015
|
|
2014
|
|
|
||||
(In millions)
|
Amounts Reclassified into Earnings
|
|
Affected Line Item in Consolidated Statement of Income
|
||||||
Cash flow hedges:
|
|
|
|
|
|
||||
Interest-rate contracts, net of related tax benefit of $2 and $2, respectively
|
$
|
(3
|
)
|
|
$
|
3
|
|
|
Net interest revenue
|
Available-for-sale securities:
|
|
|
|
|
|
||||
Net realized gains from sales of available-for-sale securities, net of related tax benefit of $1 and related taxes of ($6), respectively
|
(6
|
)
|
|
(9
|
)
|
|
Net gains (losses) from sales of available-for-sale securities
|
||
Held-to-maturity securities:
|
|
|
|
|
|
||||
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit
|
(2
|
)
|
|
1
|
|
|
Losses reclassified (from) to other comprehensive income
|
||
Retirement plans:
|
|
|
|
|
|
||||
Amortization of actuarial losses, net of related taxes of ($51) and ($50), respectively
|
88
|
|
|
(69
|
)
|
|
Compensation and employee benefits expenses
|
||
Total reclassifications out of AOCI
|
$
|
77
|
|
|
$
|
(74
|
)
|
|
|
|
|
|
State Street
|
|
State Street Bank
|
||||||||||||||||||||||||||||||
(Dollars in millions)
|
|
Basel III Advanced Approaches December 31, 2015
(1)
|
|
Basel III Standardized Approach December 31, 2015
(2)
|
|
Basel III Advanced Approaches December 31, 2014
(1)
|
|
Basel III Transitional Approach December 31, 2014
(3)
|
|
Basel III Advanced Approaches December 31, 2015
(1)
|
|
Basel III Standardized Approach December 31, 2015
(2)
|
|
Basel III Advanced Approaches December 31, 2014
(1)
|
|
Basel III Transitional Approach December 31, 2014
(3)
|
|||||||||||||||||||
Common shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Common stock and related surplus
|
|
$
|
10,250
|
|
|
$
|
10,250
|
|
|
$
|
10,295
|
|
|
$
|
10,295
|
|
|
$
|
10,938
|
|
|
$
|
10,938
|
|
|
$
|
10,867
|
|
|
$
|
10,867
|
|
|||
Retained earnings
|
|
16,049
|
|
|
16,049
|
|
|
14,737
|
|
|
14,737
|
|
|
10,655
|
|
|
10,655
|
|
|
9,270
|
|
|
9,270
|
|
|||||||||||
Accumulated other comprehensive income (loss)
|
|
(1,422
|
)
|
|
(1,422
|
)
|
|
(642
|
)
|
|
(642
|
)
|
|
(1,230
|
)
|
|
(1,230
|
)
|
|
(536
|
)
|
|
(536
|
)
|
|||||||||||
Treasury stock, at cost
|
|
(6,457
|
)
|
|
(6,457
|
)
|
|
(5,158
|
)
|
|
(5,158
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Total
|
|
|
18,420
|
|
|
18,420
|
|
|
19,232
|
|
|
19,232
|
|
|
20,363
|
|
|
20,363
|
|
|
19,601
|
|
|
19,601
|
|
||||||||||
Regulatory capital adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Goodwill and other intangible assets, net of associated deferred tax liabilities
(4)
|
|
(5,927
|
)
|
|
(5,927
|
)
|
|
(5,869
|
)
|
|
(5,869
|
)
|
|
(5,631
|
)
|
|
(5,631
|
)
|
|
(5,577
|
)
|
|
(5,577
|
)
|
|||||||||||
Other adjustments
|
|
(60
|
)
|
|
(60
|
)
|
|
(36
|
)
|
|
(36
|
)
|
|
(85
|
)
|
|
(85
|
)
|
|
(128
|
)
|
|
(128
|
)
|
|||||||||||
Common equity tier 1 capital
|
|
12,433
|
|
|
12,433
|
|
|
13,327
|
|
|
13,327
|
|
|
14,647
|
|
|
14,647
|
|
|
13,896
|
|
|
13,896
|
|
|||||||||||
Preferred stock
|
|
|
2,703
|
|
|
2,703
|
|
|
1,961
|
|
|
1,961
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Trust preferred capital securities subject to phase-out from tier 1 capital
|
|
237
|
|
|
237
|
|
|
475
|
|
|
475
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Other adjustments
|
|
(109
|
)
|
|
(109
|
)
|
|
(145
|
)
|
|
(145
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Tier 1 capital
|
|
|
15,264
|
|
|
15,264
|
|
|
15,618
|
|
|
15,618
|
|
|
14,647
|
|
|
14,647
|
|
|
13,896
|
|
|
13,896
|
|
||||||||||
Qualifying subordinated long-term debt
|
|
|
1,358
|
|
|
1,358
|
|
|
1,618
|
|
|
1,618
|
|
|
1,371
|
|
|
1,371
|
|
|
1,634
|
|
|
1,634
|
|
||||||||||
Trust preferred capital securities phased out of tier 1 capital
|
|
713
|
|
|
713
|
|
|
475
|
|
|
475
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
ALLL and other
|
|
12
|
|
|
66
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
66
|
|
|
—
|
|
|
—
|
|
|||||||||||
Other adjustments
|
|
2
|
|
|
2
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Total capital
|
|
|
$
|
17,349
|
|
|
$
|
17,403
|
|
|
$
|
17,715
|
|
|
$
|
17,715
|
|
|
$
|
16,026
|
|
|
$
|
16,084
|
|
|
$
|
15,530
|
|
|
$
|
15,530
|
|
||
Risk-weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Credit risk
|
|
|
$
|
51,733
|
|
|
$
|
93,515
|
|
|
$
|
66,874
|
|
|
$
|
87,502
|
|
|
$
|
47,677
|
|
|
$
|
89,164
|
|
|
$
|
59,836
|
|
|
$
|
84,433
|
|
||
Operational risk
|
|
|
43,882
|
|
|
NA
|
|
|
35,866
|
|
|
NA
|
|
|
43,324
|
|
|
NA
|
|
|
35,449
|
|
|
NA
|
|
||||||||||
Market risk
(5)
|
|
|
|
3,937
|
|
|
2,378
|
|
|
5,087
|
|
|
2,910
|
|
|
3,939
|
|
|
2,378
|
|
|
5,048
|
|
|
2,909
|
|
|||||||||
Total risk-weighted assets
|
|
$
|
99,552
|
|
|
$
|
95,893
|
|
|
$
|
107,827
|
|
|
$
|
90,412
|
|
|
$
|
94,940
|
|
|
$
|
91,542
|
|
|
$
|
100,333
|
|
|
$
|
87,342
|
|
|||
Adjusted quarterly average assets
|
|
$
|
221,880
|
|
|
$
|
221,880
|
|
|
$
|
247,740
|
|
|
$
|
247,740
|
|
|
$
|
217,358
|
|
|
$
|
217,358
|
|
|
$
|
243,549
|
|
|
$
|
243,549
|
|
|||
Capital Ratios:
|
Minimum Requirements
(6)
2015
|
Minimum Requirements
(7)
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Common equity tier 1 capital
|
4.5
|
%
|
4.0
|
%
|
12.5
|
%
|
|
13.0
|
%
|
|
12.4
|
%
|
|
14.7
|
%
|
|
15.4
|
%
|
|
16.0
|
%
|
|
13.8
|
%
|
|
15.9
|
%
|
||||||||
Tier 1 capital
|
6.0
|
|
5.5
|
|
15.3
|
|
|
15.9
|
|
|
14.5
|
|
|
17.3
|
|
|
15.4
|
|
|
16.0
|
|
|
13.8
|
|
|
15.9
|
|
||||||||
Total capital
|
8.0
|
|
8.0
|
|
17.4
|
|
|
18.1
|
|
|
16.4
|
|
|
19.6
|
|
|
16.9
|
|
|
17.6
|
|
|
15.5
|
|
|
17.8
|
|
||||||||
Tier 1 leverage
|
4.0
|
|
4.0
|
|
6.9
|
|
|
6.9
|
|
|
6.3
|
|
|
6.3
|
|
|
6.7
|
|
|
6.7
|
|
|
5.7
|
|
|
5.7
|
|
|
|
|
|
|
Twelve Months Ended December 31,
|
||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Interest revenue:
|
|
|
|
|
|
||||||
Deposits with banks
|
$
|
208
|
|
|
$
|
196
|
|
|
$
|
125
|
|
Investment securities:
|
|
|
|
|
|
||||||
U.S. Treasury and federal agencies
|
735
|
|
|
672
|
|
|
707
|
|
|||
State and political subdivisions
|
227
|
|
|
231
|
|
|
249
|
|
|||
Other investments
|
934
|
|
|
1,241
|
|
|
1,331
|
|
|||
Securities purchased under resale agreements
|
62
|
|
|
38
|
|
|
45
|
|
|||
Loans and leases
|
311
|
|
|
266
|
|
|
253
|
|
|||
Other interest-earning assets
|
11
|
|
|
8
|
|
|
4
|
|
|||
Total interest revenue
|
2,488
|
|
|
2,652
|
|
|
2,714
|
|
|||
Interest expense:
|
|
|
|
|
|
||||||
Deposits
|
97
|
|
|
99
|
|
|
93
|
|
|||
Short-term borrowings
|
7
|
|
|
5
|
|
|
60
|
|
|||
Long-term debt
|
250
|
|
|
245
|
|
|
232
|
|
|||
Other interest-bearing liabilities
|
46
|
|
|
43
|
|
|
26
|
|
|||
Total interest expense
|
400
|
|
|
392
|
|
|
411
|
|
|||
Net interest revenue
|
$
|
2,088
|
|
|
$
|
2,260
|
|
|
$
|
2,303
|
|
|
Shares
(in thousands)
|
|
Weighted-Average
Exercise
Price
|
|
Weighted-Average
Remaining
Contractual
Term
(in years)
|
|||
Stock Options and Stock Appreciation Rights:
|
|
|
|
|
|
|||
Outstanding as of December 31, 2013
|
2,664
|
|
|
$
|
68.45
|
|
|
|
Exercised
|
(801
|
)
|
|
55.33
|
|
|
|
|
Forfeited or expired
|
(2
|
)
|
|
52.78
|
|
|
|
|
Outstanding as of December 31, 2014
|
1,861
|
|
|
74.12
|
|
|
|
|
Exercised
|
(398
|
)
|
|
62.63
|
|
|
|
|
Forfeited or expired
|
(257
|
)
|
|
81.71
|
|
|
|
|
Outstanding and exercisable as of December 31, 2015
(1)
|
1,206
|
|
|
$
|
76.29
|
|
|
1.6
|
|
|
|
|
|
Shares
(in thousands)
|
|
Weighted-Average
Grant Date Fair
Value
|
|||
Restricted Stock Awards:
|
|
|
|
|||
Outstanding as of December 31, 2013
|
1,245
|
|
|
$
|
44.47
|
|
Vested
|
(1,211
|
)
|
|
44.56
|
|
|
Forfeited
|
(3
|
)
|
|
42.57
|
|
|
Outstanding as of December 31, 2014
|
31
|
|
|
41.27
|
|
|
Vested
|
(31
|
)
|
|
41.22
|
|
|
Forfeited
|
—
|
|
|
—
|
|
|
Outstanding as of December 31, 2015
|
—
|
|
|
$
|
—
|
|
|
Shares
(in thousands)
|
|
Weighted-Average
Grant Date Fair
Value
|
|||
Deferred Stock Awards:
|
|
|
|
|||
Outstanding as of December 31, 2013
|
15,094
|
|
|
$
|
45.07
|
|
Granted
|
4,282
|
|
|
65.40
|
|
|
Vested
|
(6,730
|
)
|
|
46.03
|
|
|
Forfeited
|
(215
|
)
|
|
49.87
|
|
|
Outstanding as of December 31, 2014
|
12,431
|
|
|
51.47
|
|
|
Granted
|
3,461
|
|
|
72.98
|
|
|
Vested
|
(6,910
|
)
|
|
49.17
|
|
|
Forfeited
|
(246
|
)
|
|
59.22
|
|
|
Outstanding as of December 31, 2015
|
8,736
|
|
|
$
|
61.59
|
|
|
Shares
(in thousands)
|
|
Weighted-Average
Grant Date Fair
Value
|
|||
Performance Awards:
|
|
|
|
|||
Outstanding as of December 31, 2013
|
2,224
|
|
|
$
|
43.24
|
|
Granted
|
437
|
|
|
64.56
|
|
|
Forfeited
|
(1
|
)
|
|
53.16
|
|
|
Paid out
|
(1,033
|
)
|
|
42.48
|
|
|
Outstanding as of December 31, 2014
|
1,627
|
|
|
49.46
|
|
|
Granted
|
400
|
|
|
72.24
|
|
|
Forfeited
|
(1
|
)
|
|
41.02
|
|
|
Paid out
|
(861
|
)
|
|
45.09
|
|
|
Outstanding as of December 31, 2015
|
1,165
|
|
|
$
|
60.45
|
|
(In millions)
|
Capital
Leases
|
|
Operating
Leases
|
|
Total
|
||||||
2016
|
$
|
58
|
|
|
$
|
198
|
|
|
$
|
256
|
|
2017
|
57
|
|
|
199
|
|
|
256
|
|
|||
2018
|
53
|
|
|
163
|
|
|
216
|
|
|||
2019
|
46
|
|
|
128
|
|
|
174
|
|
|||
2020
|
45
|
|
|
114
|
|
|
159
|
|
|||
Thereafter
|
125
|
|
|
498
|
|
|
623
|
|
|||
Total minimum lease payments
|
384
|
|
|
$
|
1,300
|
|
|
$
|
1,684
|
|
|
Less amount representing interest payments
|
(98
|
)
|
|
|
|
|
|||||
Present value of minimum lease payments
|
$
|
286
|
|
|
|
|
|
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Litigation
|
$
|
422
|
|
|
$
|
173
|
|
|
$
|
(17
|
)
|
Insurance
|
126
|
|
|
80
|
|
|
80
|
|
|||
Regulatory fees and assessments
|
115
|
|
|
74
|
|
|
72
|
|
|||
Securities processing
|
79
|
|
|
68
|
|
|
52
|
|
|||
Other
|
276
|
|
|
356
|
|
|
360
|
|
|||
Total Other expenses
|
$
|
1,018
|
|
|
$
|
751
|
|
|
$
|
547
|
|
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
52
|
|
|
$
|
59
|
|
|
$
|
193
|
|
State
|
92
|
|
|
39
|
|
|
47
|
|
|||
Non-U.S.
|
342
|
|
|
257
|
|
|
248
|
|
|||
Total current expense
|
486
|
|
|
355
|
|
|
488
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
Federal
|
(39
|
)
|
|
38
|
|
|
95
|
|
|||
State
|
40
|
|
|
10
|
|
|
31
|
|
|||
Non-U.S.
|
(169
|
)
|
|
12
|
|
|
2
|
|
|||
Total deferred (benefit) expense
|
(168
|
)
|
|
60
|
|
|
128
|
|
|||
Total income tax expense
|
$
|
318
|
|
|
$
|
415
|
|
|
$
|
616
|
|
(In millions)
|
2015
|
|
2014
|
||||
Deferred tax assets:
|
|
|
|
||||
Unrealized losses on investment securities, net
|
$
|
57
|
|
|
$
|
—
|
|
Deferred compensation
|
167
|
|
|
168
|
|
||
Defined benefit pension plan
|
143
|
|
|
193
|
|
||
Restructuring charges and other reserves
|
363
|
|
|
237
|
|
||
Foreign currency translation
|
155
|
|
|
56
|
|
||
Real estate
|
20
|
|
|
9
|
|
||
Other
|
32
|
|
|
68
|
|
||
Total deferred tax assets
|
937
|
|
|
731
|
|
||
Valuation allowance for deferred tax assets
|
(27
|
)
|
|
(54
|
)
|
||
Deferred tax assets, net of valuation allowance
|
$
|
910
|
|
|
$
|
677
|
|
Deferred tax liabilities:
|
|
|
|
||||
Unrealized gains on securities, net
|
$
|
—
|
|
|
$
|
5
|
|
Leveraged lease financing
|
334
|
|
|
326
|
|
||
Fixed and intangible assets
|
804
|
|
|
1,006
|
|
||
Non-U.S. earnings
|
265
|
|
|
167
|
|
||
Other
|
121
|
|
|
83
|
|
||
Total deferred tax liabilities
|
$
|
1,524
|
|
|
$
|
1,587
|
|
|
2015
|
|
2014
|
|
2013
|
|||
U.S. federal income tax rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
Changes from statutory rate:
|
|
|
|
|
|
|||
State taxes, net of federal benefit
|
4.2
|
|
|
1.5
|
|
|
1.6
|
|
Tax-exempt income
|
(5.6
|
)
|
|
(5.1
|
)
|
|
(3.7
|
)
|
Tax credits
|
(9.4
|
)
|
|
(6.8
|
)
|
|
(3.6
|
)
|
Foreign tax differential
|
(9.6
|
)
|
|
(8.5
|
)
|
|
(5.9
|
)
|
Tax Refund
|
(2.8
|
)
|
|
—
|
|
|
—
|
|
Litigation Expense
|
2.7
|
|
|
1.3
|
|
|
—
|
|
Other, net
|
(0.7
|
)
|
|
(0.3
|
)
|
|
(0.3
|
)
|
Effective tax rate
|
13.8
|
%
|
|
17.1
|
%
|
|
23.1
|
%
|
(In millions)
|
2015
|
|
2014
|
||||
Beginning balance
|
$
|
163
|
|
|
$
|
158
|
|
Decrease related to agreements with tax authorities
|
(122
|
)
|
|
(9
|
)
|
||
Increase related to tax positions taken during current year
|
8
|
|
|
8
|
|
||
Increase related to tax positions taken during prior year
|
14
|
|
|
6
|
|
||
Ending balance
|
$
|
63
|
|
|
$
|
163
|
|
(Dollars in millions, except per share amounts)
|
2015
|
|
2014
|
|
2013
|
||||||
Net income
|
$
|
1,980
|
|
|
$
|
2,022
|
|
|
$
|
2,050
|
|
Less:
|
|
|
|
|
|
||||||
Preferred stock dividends
|
(130
|
)
|
|
(61
|
)
|
|
(26
|
)
|
|||
Dividends and undistributed earnings allocated to participating securities
(1)
|
(2
|
)
|
|
(3
|
)
|
|
(8
|
)
|
|||
Net income available to common shareholders
|
$
|
1,848
|
|
|
$
|
1,958
|
|
|
$
|
2,016
|
|
Average common shares outstanding (in thousands):
|
|
|
|
|
|
||||||
Basic average common shares
|
407,856
|
|
|
424,223
|
|
|
446,245
|
|
|||
Effect of dilutive securities: common stock options and common stock awards
|
5,782
|
|
|
7,784
|
|
|
8,910
|
|
|||
Diluted average common shares
|
413,638
|
|
|
432,007
|
|
|
455,155
|
|
|||
Anti-dilutive securities
(2)
|
661
|
|
|
1,498
|
|
|
1,855
|
|
|||
Earnings per Common Share:
|
|
|
|
|
|
||||||
Basic
|
$
|
4.53
|
|
|
$
|
4.62
|
|
|
$
|
4.52
|
|
Diluted
(3)
|
4.47
|
|
|
4.53
|
|
|
4.43
|
|
|
|
•
|
Net acquisition and restructuring costs of
$25 million
; and
|
•
|
Net severance costs associated with staffing realignment of
$73 million
.
|
•
|
Net acquisition and restructuring costs of
$133 million
;
|
•
|
Net severance costs associated with staffing realignment of
$84 million
; and
|
•
|
Net provisions for litigation exposure and other costs of
$2 million
.
|
•
|
Net acquisition and restructuring costs of
$104 million
;
|
•
|
Net provisions for litigation exposure and other costs of
$65 million
; and
|
•
|
Net severance costs associated with staffing realignment of
$11 million
.
|
|
Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Investment
Servicing
|
|
Investment
Management
|
|
Other
|
|
Total
|
||||||||||||||||||||||||||||||||||||||||
|
2015
|
|
2014
|
|
2013
|
|
2015
|
|
2014
|
|
2013
|
|
2015
|
|
2014
|
|
2013
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||||||||||||||
(Dollars in millions,
except where otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Servicing fees
|
$
|
5,153
|
|
|
$
|
5,108
|
|
|
$
|
4,799
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,153
|
|
|
$
|
5,108
|
|
|
$
|
4,799
|
|
Management fees
|
—
|
|
|
—
|
|
|
—
|
|
|
1,174
|
|
|
1,207
|
|
|
1,106
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,174
|
|
|
1,207
|
|
|
1,106
|
|
||||||||||||
Trading services
|
1,108
|
|
|
1,039
|
|
|
1,027
|
|
|
38
|
|
|
45
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,146
|
|
|
1,084
|
|
|
1,094
|
|
||||||||||||
Securities finance
|
496
|
|
|
437
|
|
|
359
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
496
|
|
|
437
|
|
|
359
|
|
||||||||||||
Processing fees and other
|
325
|
|
|
179
|
|
|
206
|
|
|
(16
|
)
|
|
(5
|
)
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
309
|
|
|
174
|
|
|
212
|
|
||||||||||||
Total fee revenue
|
7,082
|
|
|
6,763
|
|
|
6,391
|
|
|
1,196
|
|
|
1,247
|
|
|
1,179
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,278
|
|
|
8,010
|
|
|
7,570
|
|
||||||||||||
Net interest revenue
|
2,086
|
|
|
2,245
|
|
|
2,278
|
|
|
2
|
|
|
15
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,088
|
|
|
2,260
|
|
|
2,303
|
|
||||||||||||
Gains (losses) related to investment securities, net
|
(6
|
)
|
|
4
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
4
|
|
|
(9
|
)
|
||||||||||||
Total revenue
|
9,162
|
|
|
9,012
|
|
|
8,660
|
|
|
1,198
|
|
|
1,262
|
|
|
1,204
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,360
|
|
|
10,274
|
|
|
9,864
|
|
||||||||||||
Provision for loan losses
|
12
|
|
|
10
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
10
|
|
|
6
|
|
||||||||||||
Total expenses
|
6,990
|
|
|
6,648
|
|
|
6,190
|
|
|
962
|
|
|
960
|
|
|
822
|
|
|
98
|
|
|
219
|
|
|
180
|
|
|
8,050
|
|
|
7,827
|
|
|
7,192
|
|
||||||||||||
Income before income tax expense
|
$
|
2,160
|
|
|
$
|
2,354
|
|
|
$
|
2,464
|
|
|
$
|
236
|
|
|
$
|
302
|
|
|
$
|
382
|
|
|
$
|
(98
|
)
|
|
$
|
(219
|
)
|
|
$
|
(180
|
)
|
|
$
|
2,298
|
|
|
$
|
2,437
|
|
|
$
|
2,666
|
|
Pre-tax margin
|
24
|
%
|
|
26
|
%
|
|
28
|
%
|
|
20
|
%
|
|
24
|
%
|
|
32
|
%
|
|
|
|
|
|
|
|
22
|
%
|
|
24
|
%
|
|
27
|
%
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Average assets (in billions)
|
$
|
246.6
|
|
|
$
|
234.2
|
|
|
$
|
203.2
|
|
|
$
|
3.9
|
|
|
$
|
3.9
|
|
|
$
|
3.8
|
|
|
|
|
|
|
|
|
$
|
250.5
|
|
|
$
|
238.1
|
|
|
$
|
207.0
|
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||||||||||||||||||||
(In millions)
|
Non-U.S.
|
|
U.S.
|
|
Total
|
|
Non-U.S.
|
|
U.S.
|
|
Total
|
|
Non-U.S.
|
|
U.S.
|
|
Total
|
||||||||||||||||||
Total revenue
|
$
|
4,428
|
|
|
$
|
5,932
|
|
|
$
|
10,360
|
|
|
$
|
4,644
|
|
|
$
|
5,630
|
|
|
$
|
10,274
|
|
|
$
|
4,299
|
|
|
$
|
5,565
|
|
|
$
|
9,864
|
|
Income before income taxes
|
1,193
|
|
|
1,105
|
|
|
2,298
|
|
|
1,343
|
|
|
1,094
|
|
|
2,437
|
|
|
1,169
|
|
|
1,497
|
|
|
2,666
|
|
Years Ended December 31,
|
2015
|
|
2014
|
|
2013
|
||||||
(In millions)
|
|
|
|
|
|
||||||
Cash dividends from consolidated banking subsidiary
|
$
|
585
|
|
|
$
|
1,470
|
|
|
$
|
1,694
|
|
Cash dividends from consolidated non-banking subsidiaries and unconsolidated entities
|
171
|
|
|
138
|
|
|
250
|
|
|||
Other, net
|
73
|
|
|
63
|
|
|
35
|
|
|||
Total revenue
|
829
|
|
|
1,671
|
|
|
1,979
|
|
|||
Interest expense
|
209
|
|
|
193
|
|
|
169
|
|
|||
Other expenses
|
310
|
|
|
55
|
|
|
88
|
|
|||
Total expenses
|
519
|
|
|
248
|
|
|
257
|
|
|||
Income tax benefit
|
(186
|
)
|
|
(83
|
)
|
|
(84
|
)
|
|||
Income (loss) before equity in undistributed income of consolidated subsidiaries and unconsolidated entities
|
496
|
|
|
1,506
|
|
|
1,806
|
|
|||
Equity in undistributed income of consolidated subsidiaries and unconsolidated entities:
|
|
|
|
|
|
||||||
Consolidated banking subsidiary
|
1,384
|
|
|
360
|
|
|
151
|
|
|||
Consolidated non-banking subsidiaries and unconsolidated entities
|
100
|
|
|
156
|
|
|
93
|
|
|||
Net income
|
$
|
1,980
|
|
|
$
|
2,022
|
|
|
$
|
2,050
|
|
As of December 31,
|
2015
|
|
2014
|
||||
(In millions)
|
|
|
|
||||
Assets:
|
|
|
|
||||
Interest-bearing deposits with consolidated banking subsidiary
|
$
|
5,735
|
|
|
$
|
6,030
|
|
Trading account assets
|
308
|
|
|
279
|
|
||
Investment securities available for sale
|
35
|
|
|
35
|
|
||
Investments in subsidiaries:
|
|
|
|
||||
Consolidated banking subsidiary
|
20,584
|
|
|
19,978
|
|
||
Consolidated non-banking subsidiaries
|
2,816
|
|
|
2,739
|
|
||
Unconsolidated entities
|
315
|
|
|
288
|
|
||
Notes and other receivables from:
|
|
|
|
||||
Consolidated banking subsidiary
|
1,558
|
|
|
1,526
|
|
||
Consolidated non-banking subsidiaries and unconsolidated entities
|
275
|
|
|
331
|
|
||
Other assets
|
515
|
|
|
447
|
|
||
Total assets
|
$
|
32,141
|
|
|
$
|
31,653
|
|
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Commercial paper
|
$
|
—
|
|
|
$
|
2,485
|
|
Accrued expenses and other liabilities
|
643
|
|
|
514
|
|
||
Long-term debt
|
10,363
|
|
|
7,326
|
|
||
Total liabilities
|
11,006
|
|
|
10,325
|
|
||
Shareholders’ equity
|
21,135
|
|
|
21,328
|
|
||
Total liabilities and shareholders’ equity
|
$
|
32,141
|
|
|
$
|
31,653
|
|
Years Ended December 31,
|
2015
|
|
2014
|
|
2013
|
||||||
(In millions)
|
|
|
|
|
|
||||||
Net cash provided by operating activities
|
$
|
926
|
|
|
$
|
1,767
|
|
|
$
|
2,296
|
|
Investing Activities:
|
|
|
|
|
|
||||||
Net decrease (increase) in interest-bearing deposits with consolidated banking subsidiary
|
295
|
|
|
(1,610
|
)
|
|
(620
|
)
|
|||
Investments in consolidated banking and non-banking subsidiaries
|
(7,959
|
)
|
|
(1,142
|
)
|
|
(1,100
|
)
|
|||
Sale or repayment of investment in consolidated banking and non-banking subsidiaries
|
7,891
|
|
|
1,011
|
|
|
32
|
|
|||
Net cash provided by (used in) investing activities
|
227
|
|
|
(1,741
|
)
|
|
(1,688
|
)
|
|||
Financing Activities:
|
|
|
|
|
|
||||||
Net increase (decrease) in commercial paper
|
(2,485
|
)
|
|
667
|
|
|
(499
|
)
|
|||
Proceeds from issuance of long-term debt, net of issuance costs
|
2,983
|
|
|
994
|
|
|
2,485
|
|
|||
Payments for long-term debt
|
—
|
|
|
(750
|
)
|
|
—
|
|
|||
Proceeds from issuance of preferred stock, net of issuance costs
|
742
|
|
|
1,470
|
|
|
—
|
|
|||
Proceeds from exercises of common stock options
|
4
|
|
|
14
|
|
|
121
|
|
|||
Purchases of common stock
|
(1,520
|
)
|
|
(1,650
|
)
|
|
(2,040
|
)
|
|||
Repurchases of common stock for employee tax withholding
|
(222
|
)
|
|
(232
|
)
|
|
(189
|
)
|
|||
Payments for cash dividends
|
(655
|
)
|
|
(539
|
)
|
|
(486
|
)
|
|||
Net cash used in financing activities
|
(1,153
|
)
|
|
(26
|
)
|
|
(608
|
)
|
|||
Net change
|
—
|
|
|
—
|
|
|
—
|
|
|||
Cash and due from banks at beginning of year
|
—
|
|
|
—
|
|
|
—
|
|
|||
Cash and due from banks at end of year
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Years Ended December 31,
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||||||||||||||
(Dollars in millions; fully
taxable-equivalent basis)
|
Average
Balance
|
|
Interest
|
|
Average
Rate
|
|
Average
Balance
|
|
Interest
|
|
Average
Rate
|
|
Average
Balance
|
|
Interest
|
|
Average
Rate
|
|||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits with U.S. banks
|
$
|
52,135
|
|
|
$
|
136
|
|
|
.26
|
%
|
|
$
|
45,158
|
|
|
$
|
115
|
|
|
.25
|
%
|
|
$
|
15,858
|
|
|
$
|
40
|
|
|
.25
|
%
|
Interest-bearing deposits with non-U.S. banks
|
17,618
|
|
|
72
|
|
|
.41
|
|
|
10,195
|
|
|
81
|
|
|
.80
|
|
|
13,088
|
|
|
85
|
|
|
.65
|
|
||||||
Securities purchased under resale agreements
|
3,233
|
|
|
62
|
|
|
1.92
|
|
|
4,077
|
|
|
38
|
|
|
.94
|
|
|
5,766
|
|
|
45
|
|
|
.77
|
|
||||||
Trading account assets
|
1,194
|
|
|
1
|
|
|
.08
|
|
|
959
|
|
|
1
|
|
|
.13
|
|
|
748
|
|
|
—
|
|
|
—
|
|
||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. Treasury and federal agencies
(1)
|
40,056
|
|
|
735
|
|
|
1.84
|
|
|
32,481
|
|
|
672
|
|
|
2.07
|
|
|
33,003
|
|
|
707
|
|
|
2.14
|
|
||||||
State and political subdivisions
(1)
|
10,481
|
|
|
399
|
|
|
3.81
|
|
|
10,619
|
|
|
404
|
|
|
3.81
|
|
|
8,637
|
|
|
391
|
|
|
4.53
|
|
||||||
Other investments
|
55,074
|
|
|
935
|
|
|
1.70
|
|
|
73,709
|
|
|
1,241
|
|
|
1.68
|
|
|
76,056
|
|
|
1,331
|
|
|
1.75
|
|
||||||
Loans
|
17,007
|
|
|
276
|
|
|
1.62
|
|
|
14,838
|
|
|
231
|
|
|
1.56
|
|
|
12,660
|
|
|
215
|
|
|
1.70
|
|
||||||
Lease financing
(1)
|
941
|
|
|
35
|
|
|
3.74
|
|
|
1,074
|
|
|
35
|
|
|
3.26
|
|
|
1,121
|
|
|
38
|
|
|
3.43
|
|
||||||
Other interest-earning assets
|
22,717
|
|
|
10
|
|
|
.04
|
|
|
15,944
|
|
|
7
|
|
|
.05
|
|
|
11,164
|
|
|
4
|
|
|
.04
|
|
||||||
Total interest-earning assets
(1)
|
220,456
|
|
|
2,661
|
|
|
1.21
|
|
|
209,054
|
|
|
2,825
|
|
|
1.36
|
|
|
178,101
|
|
|
2,856
|
|
|
1.60
|
|
||||||
Cash and due from banks
|
2,460
|
|
|
|
|
|
|
4,139
|
|
|
|
|
|
|
3,747
|
|
|
|
|
|
||||||||||||
Other assets
|
27,548
|
|
|
|
|
|
|
24,935
|
|
|
|
|
|
|
25,182
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
250,464
|
|
|
|
|
|
|
$
|
238,128
|
|
|
|
|
|
|
$
|
207,030
|
|
|
|
|
|
|||||||||
Liabilities and shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Time
|
$
|
20,758
|
|
|
$
|
44
|
|
|
.21
|
%
|
|
$
|
7,254
|
|
|
$
|
15
|
|
|
.20
|
%
|
|
$
|
2,504
|
|
|
$
|
6
|
|
|
.23
|
%
|
Savings
|
10,061
|
|
|
7
|
|
|
.07
|
|
|
14,042
|
|
|
6
|
|
|
.04
|
|
|
6,358
|
|
|
4
|
|
|
.07
|
|
||||||
Non-U.S.
|
102,491
|
|
|
46
|
|
|
.05
|
|
|
109,003
|
|
|
78
|
|
|
.07
|
|
|
100,391
|
|
|
83
|
|
|
.08
|
|
||||||
Total interest-bearing deposits
|
133,310
|
|
|
97
|
|
|
.07
|
|
|
130,299
|
|
|
99
|
|
|
.08
|
|
|
109,253
|
|
|
93
|
|
|
.14
|
|
||||||
Securities sold under repurchase agreements
|
8,875
|
|
|
1
|
|
|
.01
|
|
|
8,817
|
|
|
—
|
|
|
—
|
|
|
8,436
|
|
|
1
|
|
|
.01
|
|
||||||
Federal funds purchased
|
21
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
298
|
|
|
—
|
|
|
—
|
|
||||||
Other short-term borrowings
|
3,826
|
|
|
6
|
|
|
.15
|
|
|
4,177
|
|
|
5
|
|
|
.12
|
|
|
3,785
|
|
|
59
|
|
|
1.57
|
|
||||||
Long-term debt
|
10,333
|
|
|
250
|
|
|
2.42
|
|
|
9,309
|
|
|
245
|
|
|
2.63
|
|
|
8,415
|
|
|
232
|
|
|
2.75
|
|
||||||
Other interest-bearing liabilities
|
6,471
|
|
|
46
|
|
|
.71
|
|
|
7,351
|
|
|
43
|
|
|
.59
|
|
|
6,457
|
|
|
26
|
|
|
.40
|
|
||||||
Total interest-bearing liabilities
|
162,836
|
|
|
400
|
|
|
.25
|
|
|
159,973
|
|
|
392
|
|
|
.25
|
|
|
136,644
|
|
|
411
|
|
|
.30
|
|
||||||
Noninterest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Special time
|
34,774
|
|
|
|
|
|
|
5,862
|
|
|
|
|
|
|
769
|
|
|
|
|
|
||||||||||||
Demand
|
16,746
|
|
|
|
|
|
|
37,900
|
|
|
|
|
|
|
34,725
|
|
|
|
|
|
||||||||||||
Non-U.S.
(2)
|
155
|
|
|
|
|
|
|
279
|
|
|
|
|
|
|
800
|
|
|
|
|
|
||||||||||||
Other liabilities
(3)
|
14,626
|
|
|
|
|
|
|
12,935
|
|
|
|
|
|
|
13,683
|
|
|
|
|
|
||||||||||||
Shareholders’ equity
(3)
|
21,327
|
|
|
|
|
|
|
21,179
|
|
|
|
|
|
|
20,409
|
|
|
|
|
|
||||||||||||
Total liabilities and shareholders’ equity
(3)
|
$
|
250,464
|
|
|
|
|
|
|
$
|
238,128
|
|
|
|
|
|
|
$
|
207,030
|
|
|
|
|
|
|||||||||
Net interest revenue
|
|
|
$
|
2,261
|
|
|
|
|
|
|
$
|
2,433
|
|
|
|
|
|
|
$
|
2,445
|
|
|
|
|||||||||
Excess of rate earned over rate paid
|
|
|
|
|
.96
|
%
|
|
|
|
|
|
1.11
|
%
|
|
|
|
|
|
1.30
|
%
|
||||||||||||
Net interest margin
(4)
|
|
|
|
|
1.03
|
|
|
|
|
|
|
1.16
|
|
|
|
|
|
|
1.37
|
|
|
|
|
|
(1)
|
Fully taxable-equivalent revenue is a method of presentation in which the tax savings achieved by investing in tax-exempt investment securities and certain leases are included in interest revenue with a corresponding charge to income tax expense. This method facilitates the comparison of the performance of these assets. The adjustments are computed using a federal income tax rate of 35%, adjusted for applicable state income taxes, net of the related federal tax benefit. The fully taxable-equivalent adjustments included in interest revenue presented above were
$173 million
,
$173 million
and
$142 million
for the years ended
December 31, 2015
,
2014
and
2013
, respectively, and were substantially related to tax-exempt securities (state and political subdivisions).
|
(2)
|
Non-U.S. noninterest-bearing deposits were
$95 million
,
$180 million
and
$714 million
as of
December 31, 2015
,
2014
and
2013
, respectively.
|
(3)
|
Amounts for 2013 and 2014 reflect adjustments related to certain expenses billed to our asset servicing clients as more fully described in Note 1 to the consolidated financial statements.
|
(4)
|
Net interest margin is calculated by dividing fully taxable-equivalent net interest revenue by average total interest-earning assets.
|
Years Ended December 31,
|
2015 Compared to 2014
|
|
2014 Compared to 2013
|
||||||||||||||||||||
(In millions; fully
taxable-equivalent basis)
|
Change in
Volume |
|
Change in
Rate |
|
Net (Decrease)
Increase |
|
Change in
Volume
|
|
Change in
Rate
|
|
Net (Decrease)
Increase
|
||||||||||||
Interest revenue related to:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing deposits with U.S. banks
|
$
|
17
|
|
|
$
|
4
|
|
|
$
|
21
|
|
|
$
|
73
|
|
|
$
|
2
|
|
|
$
|
75
|
|
Interest-bearing deposits with non-U.S. banks
|
59
|
|
|
(68
|
)
|
|
(9
|
)
|
|
(19
|
)
|
|
15
|
|
|
(4
|
)
|
||||||
Securities purchased under resale agreements
|
(8
|
)
|
|
32
|
|
|
24
|
|
|
(13
|
)
|
|
6
|
|
|
(7
|
)
|
||||||
Trading account assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury and federal agencies
|
157
|
|
|
(94
|
)
|
|
63
|
|
|
(11
|
)
|
|
(24
|
)
|
|
(35
|
)
|
||||||
State and political subdivisions
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|
90
|
|
|
(77
|
)
|
|
13
|
|
||||||
Other investments
|
(313
|
)
|
|
7
|
|
|
(306
|
)
|
|
(41
|
)
|
|
(49
|
)
|
|
(90
|
)
|
||||||
Loans
|
34
|
|
|
11
|
|
|
45
|
|
|
37
|
|
|
(21
|
)
|
|
16
|
|
||||||
Lease financing
|
(4
|
)
|
|
4
|
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(3
|
)
|
||||||
Other interest-earning assets
|
3
|
|
|
—
|
|
|
3
|
|
|
2
|
|
|
1
|
|
|
3
|
|
||||||
Total interest-earning assets
|
(60
|
)
|
|
(104
|
)
|
|
(164
|
)
|
|
116
|
|
|
(147
|
)
|
|
(31
|
)
|
||||||
Interest expense related to:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Time
|
27
|
|
|
2
|
|
|
29
|
|
|
11
|
|
|
(2
|
)
|
|
9
|
|
||||||
Savings
|
(2
|
)
|
|
3
|
|
|
1
|
|
|
5
|
|
|
(3
|
)
|
|
2
|
|
||||||
Non-U.S.
|
(5
|
)
|
|
(27
|
)
|
|
(32
|
)
|
|
7
|
|
|
(12
|
)
|
|
(5
|
)
|
||||||
Securities sold under repurchase agreements
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||
Federal funds purchased
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other short-term borrowings
|
—
|
|
|
1
|
|
|
1
|
|
|
6
|
|
|
(60
|
)
|
|
(54
|
)
|
||||||
Long-term debt
|
27
|
|
|
(22
|
)
|
|
5
|
|
|
25
|
|
|
(12
|
)
|
|
13
|
|
||||||
Other interest-bearing liabilities
|
(5
|
)
|
|
8
|
|
|
3
|
|
|
4
|
|
|
13
|
|
|
17
|
|
||||||
Total interest-bearing liabilities
|
42
|
|
|
(34
|
)
|
|
8
|
|
|
58
|
|
|
(77
|
)
|
|
(19
|
)
|
||||||
Net interest revenue
|
$
|
(102
|
)
|
|
$
|
(70
|
)
|
|
$
|
(172
|
)
|
|
$
|
58
|
|
|
$
|
(70
|
)
|
|
$
|
(12
|
)
|
|
2015 Quarters
|
|
2014 Quarters
|
||||||||||||||||||||||||||||
(Dollars and shares in millions,
except per share amounts)
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
||||||||||||||||
Total fee revenue
(1)
|
$
|
2,044
|
|
|
$
|
2,103
|
|
|
$
|
2,076
|
|
|
$
|
2,055
|
|
|
$
|
2,051
|
|
|
$
|
2,006
|
|
|
$
|
2,034
|
|
|
$
|
1,919
|
|
Interest revenue
|
603
|
|
|
614
|
|
|
629
|
|
|
642
|
|
|
676
|
|
|
671
|
|
|
650
|
|
|
655
|
|
||||||||
Interest expense
|
109
|
|
|
101
|
|
|
94
|
|
|
96
|
|
|
102
|
|
|
101
|
|
|
89
|
|
|
100
|
|
||||||||
Net interest revenue
|
494
|
|
|
513
|
|
|
535
|
|
|
546
|
|
|
574
|
|
|
570
|
|
|
561
|
|
|
555
|
|
||||||||
Gains (losses) related to investment securities, net
|
—
|
|
|
(2
|
)
|
|
(3
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
6
|
|
||||||||
Total revenue
(1)
|
2,538
|
|
|
2,614
|
|
|
2,608
|
|
|
2,600
|
|
|
2,625
|
|
|
2,576
|
|
|
2,593
|
|
|
2,480
|
|
||||||||
Provision for loan losses
|
1
|
|
|
5
|
|
|
2
|
|
|
4
|
|
|
4
|
|
|
2
|
|
|
2
|
|
|
2
|
|
||||||||
Total expenses
|
1,857
|
|
|
1,962
|
|
|
2,134
|
|
|
2,097
|
|
|
2,057
|
|
|
1,892
|
|
|
1,850
|
|
|
2,028
|
|
||||||||
Income before income tax expense
(1)
|
680
|
|
|
647
|
|
|
472
|
|
|
499
|
|
|
564
|
|
|
682
|
|
|
741
|
|
|
450
|
|
||||||||
Income tax expense
(1)
|
103
|
|
|
67
|
|
|
54
|
|
|
94
|
|
|
76
|
|
|
126
|
|
|
122
|
|
|
91
|
|
||||||||
Net income (loss) from minority interest
|
(1
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net income
(1)
|
$
|
576
|
|
|
$
|
581
|
|
|
$
|
418
|
|
|
$
|
405
|
|
|
$
|
488
|
|
|
$
|
556
|
|
|
$
|
619
|
|
|
$
|
359
|
|
Net income available to common shareholders
(1)
|
$
|
547
|
|
|
$
|
539
|
|
|
$
|
389
|
|
|
$
|
373
|
|
|
$
|
469
|
|
|
$
|
538
|
|
|
$
|
599
|
|
|
$
|
352
|
|
Earnings per common share
(1)(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
$
|
1.36
|
|
|
$
|
1.33
|
|
|
$
|
.95
|
|
|
$
|
.90
|
|
|
$
|
1.13
|
|
|
$
|
1.28
|
|
|
$
|
1.40
|
|
|
$
|
.82
|
|
Diluted
|
1.34
|
|
|
1.31
|
|
|
.93
|
|
|
.89
|
|
|
1.11
|
|
|
1.25
|
|
|
1.38
|
|
|
.80
|
|
||||||||
Average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
402
|
|
|
407
|
|
|
411
|
|
|
412
|
|
|
417
|
|
|
422
|
|
|
428
|
|
|
431
|
|
||||||||
Diluted
|
407
|
|
|
412
|
|
|
417
|
|
|
419
|
|
|
424
|
|
|
430
|
|
|
435
|
|
|
439
|
|
||||||||
Dividends per common share
|
$
|
.34
|
|
|
$
|
.34
|
|
|
$
|
.34
|
|
|
$
|
.30
|
|
|
$
|
.30
|
|
|
$
|
.30
|
|
|
$
|
.30
|
|
|
$
|
.26
|
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
High
|
$
|
75.40
|
|
|
$
|
81.26
|
|
|
$
|
81.20
|
|
|
$
|
79.31
|
|
|
$
|
80.92
|
|
|
$
|
76.78
|
|
|
$
|
70.20
|
|
|
$
|
76.24
|
|
Low
|
63.97
|
|
|
65.76
|
|
|
72.56
|
|
|
70.50
|
|
|
64.21
|
|
|
66.42
|
|
|
62.67
|
|
|
64.21
|
|
||||||||
Closing
|
66.36
|
|
|
67.21
|
|
|
77.00
|
|
|
73.53
|
|
|
78.50
|
|
|
73.61
|
|
|
67.26
|
|
|
69.55
|
|
|
|
|
|
(1)
|
Amounts
for all quarters of 2014 and the first three quarters of 2015 reflect adjustments related to certain expenses billed to our asset servicing clients as more fully described in Note 1 to the consolidated financial statements. See "Reconciliation of Previously Reported and Revised FInancial Information" on the following pages.
|
(2)
|
Basic and diluted earnings per common share for full-year 2015 and 2014 do not equal the sum of the four quarters for the year.
|
RECONCILIATION OF PREVIOUSLY REPORTED AND REVISED FINANCIAL INFORMATION
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
The following reconciliations for Q1 through Q3 of 2015 and all quarters for 2014 reflect adjustments related to certain expenses billed to certain of our asset servicing clients as more fully described in Note 1 to the consolidated financial statements.
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
1Q15
|
|
2Q15
|
|
3Q15
|
||||||||||||||||||||||||
(Dollars in millions, except per share amounts or where otherwise noted)
|
|
Reported
|
Adjustment
|
Revised
|
|
Reported
|
Adjustment
|
Revised
|
|
Reported
|
Adjustment
|
Revised
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Consolidated Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Fee revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Servicing fees
|
|
$
|
1,273
|
|
$
|
(5
|
)
|
$
|
1,268
|
|
|
$
|
1,325
|
|
$
|
(6
|
)
|
$
|
1,319
|
|
|
$
|
1,294
|
|
$
|
(5
|
)
|
$
|
1,289
|
|
Total fee revenue
|
|
2,060
|
|
(5
|
)
|
2,055
|
|
|
2,082
|
|
(6
|
)
|
2,076
|
|
|
2,108
|
|
(5
|
)
|
2,103
|
|
|||||||||
Total revenue
|
|
2,605
|
|
(5
|
)
|
2,600
|
|
|
2,614
|
|
(6
|
)
|
2,608
|
|
|
2,619
|
|
(5
|
)
|
2,614
|
|
|||||||||
Income before income tax expense
|
|
504
|
|
(5
|
)
|
499
|
|
|
478
|
|
(6
|
)
|
472
|
|
|
652
|
|
(5
|
)
|
647
|
|
|||||||||
Income tax expense
|
|
95
|
|
(1
|
)
|
94
|
|
|
56
|
|
(2
|
)
|
54
|
|
|
68
|
|
(1
|
)
|
67
|
|
|||||||||
Net income
|
|
409
|
|
(4
|
)
|
405
|
|
|
422
|
|
(4
|
)
|
418
|
|
|
585
|
|
(4
|
)
|
581
|
|
|||||||||
Net income available to common shareholders
|
|
377
|
|
(4
|
)
|
373
|
|
|
393
|
|
(4
|
)
|
389
|
|
|
543
|
|
(4
|
)
|
539
|
|
|||||||||
Consolidated Statement of Condition
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Accrued expenses and other liabilities
|
|
23,610
|
|
149
|
|
23,759
|
|
|
17,646
|
|
153
|
|
17,799
|
|
|
15,804
|
|
157
|
|
15,961
|
|
|||||||||
Total liabilities
|
|
258,657
|
|
149
|
|
258,806
|
|
|
273,071
|
|
153
|
|
273,224
|
|
|
225,742
|
|
157
|
|
225,899
|
|
|||||||||
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Retained earnings
|
|
15,135
|
|
(149
|
)
|
14,986
|
|
|
15,390
|
|
(153
|
)
|
15,237
|
|
|
15,795
|
|
(157
|
)
|
15,638
|
|
|||||||||
Total shareholders' equity
|
|
20,819
|
|
(149
|
)
|
20,670
|
|
|
21,500
|
|
(153
|
)
|
21,347
|
|
|
21,500
|
|
(157
|
)
|
21,343
|
|
|||||||||
Non-controlling interest-equity
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
32
|
|
—
|
|
32
|
|
|||||||||
Total equity
|
|
20,819
|
|
(149
|
)
|
20,670
|
|
|
21,500
|
|
(153
|
)
|
21,347
|
|
|
21,532
|
|
(157
|
)
|
21,375
|
|
|||||||||
Total liabilities and equity
|
|
$
|
279,476
|
|
$
|
—
|
|
$
|
279,476
|
|
|
$
|
294,571
|
|
$
|
—
|
|
$
|
294,571
|
|
|
$
|
247,274
|
|
$
|
—
|
|
$
|
247,274
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Diluted earnings per common share
|
|
$
|
0.90
|
|
$
|
(0.01
|
)
|
$
|
0.89
|
|
|
$
|
0.94
|
|
$
|
(0.01
|
)
|
$
|
0.93
|
|
|
$
|
1.32
|
|
$
|
(0.01
|
)
|
$
|
1.31
|
|
Return on average common equity
|
|
7.9
|
%
|
—
|
%
|
7.9
|
%
|
|
8.3
|
%
|
(0.1
|
)%
|
8.2
|
%
|
|
11.3
|
%
|
—
|
%
|
11.3
|
%
|
|||||||||
Pre-tax operating margin
|
|
19.3
|
|
(0.1
|
)
|
19.2
|
|
|
18.3
|
|
(0.2
|
)
|
18.1
|
|
|
24.9
|
|
(0.1
|
)
|
24.8
|
|
|||||||||
After-tax margin
|
|
15.7
|
|
(0.1
|
)
|
15.6
|
|
|
16.2
|
|
(0.2
|
)
|
16.0
|
|
|
22.3
|
|
(0.1
|
)
|
22.2
|
|
|||||||||
Common equity tier 1 risk-based capital
1
|
|
12.2
|
|
(0.2
|
)
|
12.0
|
|
|
12.2
|
|
(0.2
|
)
|
12.0
|
|
|
12.1
|
|
(0.1
|
)
|
12.0
|
|
|||||||||
Tier 1 risk-based capital
1
|
|
14.2
|
|
(0.2
|
)
|
14.0
|
|
|
14.9
|
|
(0.2
|
)
|
14.7
|
|
|
14.9
|
|
(0.2
|
)
|
14.7
|
|
|||||||||
Total risk-based capital
1
|
|
16.3
|
|
(0.2
|
)
|
16.1
|
|
|
16.9
|
|
(0.1
|
)
|
16.8
|
|
|
16.9
|
|
(0.1
|
)
|
16.8
|
|
|||||||||
Tier 1 leverage
1
|
|
5.8
|
|
—
|
|
5.8
|
|
|
6.0
|
|
—
|
|
6.0
|
|
|
6.3
|
|
—
|
|
6.3
|
|
|||||||||
Tangible common equity
|
|
6.0
|
|
—
|
|
6.0
|
|
|
6.6
|
|
(0.1
|
)
|
6.5
|
|
|
6.6
|
|
—
|
|
6.6
|
|
|||||||||
Internal capital generation rate
|
|
5.3
|
|
—
|
|
5.3
|
|
|
5.3
|
|
—
|
|
5.3
|
|
|
8.5
|
|
(0.2
|
)
|
8.3
|
|
|||||||||
Common dividend payout ratio
|
|
32.8
|
|
0.3
|
|
33.1
|
|
|
35.3
|
|
0.3
|
|
35.6
|
|
|
25.3
|
|
0.2
|
|
25.5
|
|
|
|
|
|
RECONCILIATION OF PREVIOUSLY REPORTED AND REVISED FINANCIAL INFORMATION (Continued)
|
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
The following reconciliations for Q1 through Q3 of 2015 and all quarters for 2014 reflect adjustments related to certain expenses billed to certain of our asset servicing clients as more fully described in Note 1 to the consolidated financial statements.
|
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
1Q14
|
|
2Q14
|
|
3Q14
|
|
4Q14
|
||||||||||||||||||||||||||||||||
(Dollars in millions, except per share amounts or where otherwise noted)
|
|
Reported
|
Adjustment
|
Revised
|
|
Reported
|
Adjustment
|
Revised
|
|
Reported
|
Adjustment
|
Revised
|
|
Reported
|
Adjustment
|
Revised
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consolidated Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Fee revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Servicing fees
|
|
$
|
1,238
|
|
$
|
(5
|
)
|
$
|
1,233
|
|
|
$
|
1,288
|
|
$
|
(5
|
)
|
$
|
1,283
|
|
|
$
|
1,302
|
|
$
|
(6
|
)
|
$
|
1,296
|
|
|
$
|
1,301
|
|
$
|
(5
|
)
|
$
|
1,296
|
|
Total fee revenue
|
|
1,924
|
|
(5
|
)
|
1,919
|
|
|
2,039
|
|
(5
|
)
|
2,034
|
|
|
2,012
|
|
(6
|
)
|
2,006
|
|
|
2,056
|
|
(5
|
)
|
2,051
|
|
||||||||||||
Total revenue
|
|
2,485
|
|
(5
|
)
|
2,480
|
|
|
2,598
|
|
(5
|
)
|
2,593
|
|
|
2,582
|
|
(6
|
)
|
2,576
|
|
|
2,630
|
|
(5
|
)
|
2,625
|
|
||||||||||||
Income before income tax expense
|
|
455
|
|
(5
|
)
|
450
|
|
|
746
|
|
(5
|
)
|
741
|
|
|
688
|
|
(6
|
)
|
682
|
|
|
569
|
|
(5
|
)
|
564
|
|
||||||||||||
Income tax expense
|
|
92
|
|
(1
|
)
|
91
|
|
|
124
|
|
(2
|
)
|
122
|
|
|
128
|
|
(2
|
)
|
126
|
|
|
77
|
|
(1
|
)
|
76
|
|
||||||||||||
Net income
|
|
363
|
|
(4
|
)
|
359
|
|
|
622
|
|
(3
|
)
|
619
|
|
|
560
|
|
(4
|
)
|
556
|
|
|
492
|
|
(4
|
)
|
488
|
|
||||||||||||
Net income available to common shareholders
|
|
356
|
|
(4
|
)
|
352
|
|
|
602
|
|
(3
|
)
|
599
|
|
|
542
|
|
(4
|
)
|
538
|
|
|
473
|
|
(4
|
)
|
469
|
|
||||||||||||
Consolidated Statement of Condition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Accrued expenses and other liabilities
|
|
18,457
|
|
134
|
|
18,591
|
|
|
19,249
|
|
138
|
|
19,387
|
|
|
22,956
|
|
141
|
|
23,097
|
|
|
20,237
|
|
145
|
|
20,382
|
|
||||||||||||
Total liabilities
|
|
235,390
|
|
134
|
|
235,524
|
|
|
260,624
|
|
138
|
|
260,762
|
|
|
253,649
|
|
141
|
|
253,790
|
|
|
252,646
|
|
145
|
|
252,791
|
|
||||||||||||
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Retained earnings
|
|
13,639
|
|
(134
|
)
|
13,505
|
|
|
14,114
|
|
(138
|
)
|
13,976
|
|
|
14,531
|
|
(141
|
)
|
14,390
|
|
|
14,882
|
|
(145
|
)
|
14,737
|
|
||||||||||||
Total shareholders' equity
|
|
21,273
|
|
(134
|
)
|
21,139
|
|
|
21,700
|
|
(138
|
)
|
21,562
|
|
|
21,156
|
|
(141
|
)
|
21,015
|
|
|
21,473
|
|
(145
|
)
|
21,328
|
|
||||||||||||
Total equity
|
|
21,273
|
|
(134
|
)
|
21,139
|
|
|
21,700
|
|
(138
|
)
|
21,562
|
|
|
21,156
|
|
(141
|
)
|
21,015
|
|
|
21,473
|
|
(145
|
)
|
21,328
|
|
||||||||||||
Total liabilities and equity
|
|
$
|
256,663
|
|
$
|
—
|
|
$
|
256,663
|
|
|
$
|
282,324
|
|
$
|
—
|
|
$
|
282,324
|
|
|
$
|
274,805
|
|
$
|
—
|
|
$
|
274,805
|
|
|
$
|
274,119
|
|
$
|
—
|
|
$
|
274,119
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Diluted earnings per common share
|
|
$
|
0.81
|
|
$
|
(0.01
|
)
|
$
|
0.80
|
|
|
$
|
1.38
|
|
$
|
—
|
|
$
|
1.38
|
|
|
$
|
1.26
|
|
$
|
(0.01
|
)
|
$
|
1.25
|
|
|
$
|
1.12
|
|
$
|
(0.01
|
)
|
$
|
1.11
|
|
Return on average common equity
|
|
7.2
|
%
|
—
|
%
|
7.2
|
%
|
|
11.9
|
%
|
—
|
%
|
11.9
|
%
|
|
10.6
|
%
|
—
|
%
|
10.6
|
%
|
|
9.4
|
%
|
—
|
%
|
9.4
|
%
|
||||||||||||
Pre-tax operating margin
|
|
18.3
|
|
(0.2
|
)
|
18.1
|
|
|
28.7
|
|
(0.1
|
)
|
28.6
|
|
|
26.6
|
|
(0.1
|
)
|
26.5
|
|
|
21.6
|
|
(0.1
|
)
|
21.5
|
|
||||||||||||
After-tax margin
|
|
14.6
|
|
(0.1
|
)
|
14.5
|
|
|
23.9
|
|
—
|
|
23.9
|
|
|
21.7
|
|
(0.1
|
)
|
21.6
|
|
|
18.7
|
|
(0.1
|
)
|
18.6
|
|
||||||||||||
Common equity tier 1 risk-based capital1
|
|
NA
|
|
NA
|
|
NA
|
|
|
12.8
|
|
(0.2
|
)
|
12.6
|
|
|
12.8
|
|
(0.2
|
)
|
12.6
|
|
|
12.5
|
|
(0.1
|
)
|
12.4
|
|
||||||||||||
Tier 1 risk-based capital1
|
|
NA
|
|
NA
|
|
NA
|
|
|
14.1
|
|
(0.1
|
)
|
14.0
|
|
|
14.2
|
|
(0.2
|
)
|
14.0
|
|
|
14.6
|
|
(0.1
|
)
|
14.5
|
|
||||||||||||
Total risk-based capital1
|
|
NA
|
|
NA
|
|
NA
|
|
|
16.1
|
|
(0.1
|
)
|
16.0
|
|
|
16.2
|
|
(0.1
|
)
|
16.1
|
|
|
16.6
|
|
(0.2
|
)
|
16.4
|
|
||||||||||||
Tier 1 leverage1
|
|
NA
|
|
NA
|
|
NA
|
|
|
6.9
|
|
(0.1
|
)
|
6.8
|
|
|
6.4
|
|
(0.1
|
)
|
6.3
|
|
|
6.4
|
|
(0.1
|
)
|
6.3
|
|
||||||||||||
Tangible common equity
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
7.0
|
|
(0.1
|
)
|
6.9
|
|
|
6.6
|
|
(0.1
|
)
|
6.5
|
|
|
6.8
|
|
(0.1
|
)
|
6.7
|
|
||||||||||||
Internal capital generation rate
|
|
5.0
|
|
(0.1
|
)
|
4.9
|
|
|
9.4
|
|
—
|
|
9.4
|
|
|
8.2
|
|
(0.1
|
)
|
8.1
|
|
|
6.9
|
|
—
|
|
6.9
|
|
||||||||||||
Common dividend payout ratio
|
|
31.5
|
|
0.3
|
|
31.8
|
|
|
21.2
|
|
0.1
|
|
21.3
|
|
|
23.3
|
|
0.1
|
|
23.4
|
|
|
26.3
|
|
0.2
|
|
26.5
|
|
|
|
|
|
(Shares in thousands)
|
(a)
Number of securities
to be issued
upon exercise of
outstanding
options,
warrants and rights
|
|
(b)
Weighted-average
exercise price of
outstanding
options,
warrants and rights
(1)
|
|
(c)
Number of securities
remaining available for
future issuance under
equity compensation
plans (excluding
securities reflected
in column (a))
|
||||
Plan category:
|
|
|
|
|
|
||||
Equity compensation plans approved by shareholders
|
11,107
|
|
(2)
|
$
|
76.29
|
|
|
20,768
|
|
Equity compensation plans not approved by shareholders
|
24
|
|
(3)
|
|
|
|
—
|
|
|
Total
|
11,131
|
|
|
|
|
|
20,768
|
|
|
|
|
|
|
|
STATE STREET CORPORATION
|
|
|
|
|
|
By
|
/s/ M
ICHAEL
W. B
ELL
|
|
|
MICHAEL W. BELL,
|
|
|
Executive Vice President and
Chief Financial Officer
|
|
|
|
|
By
|
/s/ S
EAN
P. N
EWTH
|
|
|
SEAN P. NEWTH
|
|
|
Senior Vice President, Chief Accounting Officer and Controller
|
/s/ J
OSEPH
L. H
OOLEY
|
|
|
/s/ M
ICHAEL
W. B
ELL
|
JOSEPH L. HOOLEY,
|
|
|
MICHAEL W. BELL,
|
Chairman and Chief Executive Officer; Director
|
|
|
Executive Vice President and
Chief Financial Officer
|
|
|
|
|
|
|
|
/s/ S
EAN
P. N
EWTH
|
|
|
|
SEAN P. NEWTH
|
|
|
|
Senior Vice President, Chief Accounting Officer and Controller
|
/s/ J
OSEPH
L. H
OOLEY
|
|
|
|
JOSEPH L. HOOLEY
|
|
|
|
|
|
|
|
/s/ K
ENNETT
F. B
URNES
|
|
|
/s/ L
INDA
A. H
ILL
|
KENNETT F. BURNES
|
|
|
LINDA A. HILL
|
|
|
|
|
/s/ P
ATRICK
de
S
AINT
-A
IGNAN
|
|
|
/s/ R
ICHARD
P. S
ERGEL
|
PATRICK de SAINT-AIGNAN
|
|
|
RICHARD P. SERGEL
|
|
|
|
|
/s/ Lynn A. Dugle
|
|
|
/s/ R
ONALD
L. S
KATES
|
LYNN A. DUGLE
|
|
|
RONALD L. SKATES
|
|
|
|
|
/s/ A
MELIA
C. F
AWCETT
|
|
|
/s/ G
REGORY
L. S
UMME
|
AMELIA C. FAWCETT
|
|
|
GREGORY L. SUMME
|
|
|
|
|
/s/ W
ILLIAM
C. F
REDA
|
|
|
/s/ T
HOMAS
J. W
ILSON
|
WILLIAM C. FREDA
|
|
|
THOMAS J. WILSON
|
|
|
|
|
|
3.1
|
|
Restated Articles of Organization, as amended (filed as Exhibit 3.1 to State Street's Quarterly Report on Form 10-Q (File No. 001-07511) for the quarter ended June 30, 2015 and filed with the SEC on August 7, 2015 and incorporated herein by reference)
|
|
|
|
|
|
3.2
|
|
By-Laws, as amended (filed as Exhibit 3.1 to State Street's Current Report on Form 8-K (File No. 001-07511) filed on October 20, 2015 and incorporated herein by reference)
|
|
|
|
|
|
4.1
|
|
The description of State Street’s Common Stock is included in State Street’s Registration Statement on Form 8-A (File No. 001-07511), as filed on January 18, 1995 and March 7, 1995 (filed with the SEC on January 18, 1995 and March 7, 1995 and incorporated herein by reference)
|
|
|
|
|
|
4.2
|
|
Deposit Agreement, dated August 21, 2012, among State Street Corporation, American Stock Transfer & Trust Company, LLC (as depositary), and the holders from time to time of depositary receipts (filed as Exhibit 4.1 to State Street's Current Report on Form 8-K (File No. 001-07511) filed with the SEC on August 21, 2012 and incorporated herein by reference)
|
|
|
|
|
|
4.3
|
|
Deposit Agreement, dated March 4, 2014, among State Street Corporation, American Stock Transfer & Trust Company, LLC (as depositary), and the holders from time to time of depositary receipts (filed as Exhibit 4.1 to State Street's Current Report on Form 8-K (File No. 001-07511) dated March 4, 2014 filed with the SEC on March 4, 2014 and incorporated herein by reference)
|
|
|
|
|
|
4.4
|
|
Deposit Agreement, dated November 25, 2014, among State Street Corporation, American Stock Transfer & Trust Company, LLC (as depositary) and the holders from time to time of depositary receipts (filed as Exhibit 4.1 to State Street's Current Report on Form 8-K (File No. 001-07511) dated November 25, 2014 filed with the SEC on November 25, 2014 and incorporated herein by reference)
|
|
|
|
|
|
4.5
|
|
Deposit Agreement dated May 21, 2015, among State Street Corporation, American Stock Transfer & Trust Company, LLC (as depositary) and the holders from time to time of depositary receipts (filed as Exhibit 4.1) to State Street's Current Report on Form 8-K (File No. 001-7511) dated May 21, 2015 filed with the SEC on May 21, 2015 and incorporated herein by reference)
|
|
|
|
|
|
|
|
(Note: None of the instruments defining the rights of holders of State Street’s outstanding long-term debt are in respect of indebtedness in excess of 10% of the total assets of State Street and its subsidiaries on a consolidated basis. State Street hereby agrees to furnish to the SEC upon request a copy of any other instrument with respect to long-term debt of State Street and its subsidiaries.)
|
|
|
|
|
|
10.1†
|
|
State Street's Management Supplemental Retirement Plan Amended and Restated, as amended (filed as Exhibit 10.1 to State Street's Annual Report on Form 10-K (File No. 001-07511) for the year ended December 31, 2012 filed with the SEC on February 22, 2013 and incorporated herein by reference)
|
|
|
|
|
|
10.2†
|
|
State Street's Executive Supplemental Retirement Plan (formerly “State Street Supplemental Defined Benefit Pension Plan for Executive Officers”) Amended and Restated, as amended
|
|
|
|
|
|
10.3†
|
|
Supplemental Cash Incentive Plan, as amended, and form of award and agreement thereunder (filed as Exhibit 10.3 to State Street's Annual Report on Form 10-K (File No. 001-07511) for the year ended December 31, 2014 filed with the SEC on February 21, 2015 and incorporated herein by reference)
|
|
|
|
|
|
10.4†
|
|
Form of Amended and Restated Employment Agreement entered into with each of Joseph L. Hooley, James S. Phalen and Michael Rogers (filed as Exhibit 10.3 to State Street's Annual Report on Form 10-K (File No. 001-07511) for the year ended December 31, 2009 filed with the SEC on February 22, 2010 and incorporated herein by reference) and Form of Amendment dated March 26, 2014 to Employment Agreement (filed as Exhibit 99.1 to State Street's Current Report on Form 8-K (File No. 001-07511) dated March 26, 2014 filed with the SEC on March 31, 2014 and incorporated herein by reference)
|
|
|
|
|
|
10.5†
|
|
Employment Agreement entered into with Michael W. Bell dated June 17, 2013 (filed as Exhibit 10.5 to State Street's Annual Report on Form 10-K (File No. 001-07511) for the year ended December 31, 2013 filed with the SEC on February 21, 2014 and incorporated herein by reference) and Form of Amendment dated March 26, 2014 to Employment Agreement (filed as Exhibit 99.1 to State Street's Current Report on Form 8-K (File No. 001-07511) dated March 26, 2014 filed with the SEC on March 31, 2014 and incorporated herein by reference)
|
|
|
|
|
|
10.6†
|
|
State Street’s Executive Compensation Trust Agreement dated December 6, 1996 (Rabbi Trust) (filed as Exhibit 10.5 to State Street's Annual Report on Form 10-K (File No. 001-07511) for the year ended December 31, 2008 filed with the SEC on February 27, 2009 and incorporated herein by reference)
|
|
|
|
|
|
10.7†
|
|
State Street’s 1997 Equity Incentive Plan, as amended, and forms of award agreements thereunder (filed as Exhibit 10.6 to State Street's Annual Report on Form 10-K (File No. 001-07511) for the year ended December 31, 2008 filed with the SEC on February 27, 2009 and incorporated herein by reference)
|
|
|
|
|
|
10.8†
|
|
State Street’s 2006 Equity Incentive Plan, as amended, and forms of award agreements thereunder (filed as Exhibit 10.8 to State Street's Annual Report on Form 10-K (File No. 001-07511) for the year ended December 31, 2014 and filed with the SEC on February 20, 2015 and incorporated herein by reference)
|
|
|
|
|
|
10.9†
|
|
Terms of Employment for Jeffrey N. Carp dated November 11, 2005, as amended
|
|
|
|
|
|
10.10†
|
|
State Street’s Management Supplemental Savings Plan, Amended and Restated, as amended(filed as Exhibit 10.1 to State Street's Quarterly Report on Form 10-Q (File No. 001-07511) for the quarter ended September 30, 2014 filed with the SEC on November 10, 2014 and incorporated herein by reference)
|
|
|
|
|
|
10.11†
|
|
Deferred Compensation Plan for Directors of State Street Corporation, Restated January 1, 2008, as amended (filed as Exhibit 10.11 to State Street's Annual Report on Form 10-K (File No. 001-07511) for the year ended December 31, 2012 filed with the SEC on February 22, 2013 and incorporated herein by reference)
|
|
|
|
|
|
10.12†
|
|
Deferred Compensation Plan for Directors of State Street Corporation, Restated January 1, 2007, as amended (filed as Exhibit 10.12 to State Street's Annual Report on Form 10-K (File No. 001-07511) for the year ended December 31, 2011 filed with the SEC on February 27, 2012 and incorporated herein by reference)
|
|
|
|
|
|
10.13†
|
|
Description of compensation arrangements for non-employee directors
|
|
|
|
|
|
10.14
|
|
[Reserved]
|
|
|
|
|
|
10.15
|
|
[Reserved]
|
|
|
|
|
|
10.16†
|
|
Letter Agreement with Michael W. Bell dated May 23, 2013 (filed as Exhibit 10.1 to State Street's Quarterly Report on Form 10-Q (File No. 001-07511) for the quarter ended June 30, 2013 filed with the SEC on August 6, 2013 and incorporated herein by reference)
|
|
|
|
|
|
10.17A†
|
|
Form of Indemnification Agreement between State Street Corporation and each of its directors (filed as Exhibit 10.18A to State Street's Annual Report on Form 10-K (File No. 001-07511) for the year ended December 31, 2013 filed with the SEC on February 21, 2014 and incorporated herein by reference)
|
|
|
|
|
|
10.17B†
|
|
Form of Indemnification Agreement between State Street Corporation and each of its executive officers (filed as Exhibit 10.18B to State Street's Annual Report on Form 10-K (File No. 001-07511) for the year ended December 31, 2013 filed with the SEC on February 21, 2014 and incorporated herein by reference)
|
|
|
|
|
|
10.17C†
|
|
Form of Indemnification Agreement between State Street Bank and Trust Company and each of its directors (filed as Exhibit 10.18C to State Street's Annual Report on Form 10-K (File No. 001-07511) for the year ended December 31, 2013 filed with the SEC on February 21, 2014 and incorporated herein by reference)
|
|
|
|
|
|
10.17D†
|
|
Form of Indemnification Agreement between State Street Bank and Trust Company and each of its executive officers (filed as Exhibit 10.18D to State Street's Annual Report on Form 10-K (File No. 001-07511) for the year ended December 31, 2013 filed with the SEC on February 21, 2014 and incorporated herein by reference)
|
|
|
|
|
|
|
|
|
|
|
|
|
†
|
|
Denotes management contract or compensatory plan or arrangement
|
*
|
|
Submitted electronically herewith
|
Table of Contents
|
|||
|
|
Page
|
|
ARTICLE 1
|
|
Establishment and Purpose
|
1
|
1.1
|
|
Restatement
|
1
|
1.2
|
|
Purpose
|
1
|
1.3
|
|
Section 409A
|
1
|
ARTICLE 2
|
|
Definitions
|
1
|
2.1
|
|
Account
|
1
|
2.2
|
|
Account Balance
|
1
|
2.3
|
|
Account Vesting Commencement Date
|
1
|
2.4
|
|
Active Participant
|
1
|
2.5
|
|
Administrative Procedures
|
1
|
2.6
|
|
Administrator
|
1
|
2.7
|
|
Affiliate
|
1
|
2.8
|
|
Annual Credit Date
|
2
|
2.9
|
|
Authorized Person
|
2
|
2.10
|
|
Basic Plan
|
2
|
2.11
|
|
Beneficiary
|
2
|
2.12
|
|
Board
|
2
|
2.13
|
|
Business Day
|
2
|
2.14
|
|
Cause
|
2
|
2.15
|
|
Claimant
|
2
|
2.16
|
|
Code
|
2
|
2.17
|
|
Committee
|
3
|
2.18
|
|
Company
|
3
|
2.19
|
|
Company Credit
|
3
|
2.20
|
|
Continuing Participant
|
3
|
2.21
|
|
Credit Date
|
3
|
2.22
|
|
Default Investment Option
|
3
|
2.23
|
|
Domestic Partner
|
3
|
2.24
|
|
Early Retirement
|
3
|
2.25
|
|
Early Retirement Age
|
3
|
2.26
|
|
Early Retirement Date
|
3
|
2.27
|
|
Effective Date
|
3
|
2.28
|
|
Eligible Employee
|
3
|
2.29
|
|
Employee
|
3
|
2.30
|
|
Employer
|
3
|
2.31
|
|
Employment
|
3
|
2.32
|
|
Equity Plan
|
4
|
2.33
|
|
ERISA
|
4
|
2.34
|
|
ESRP Share Award
|
4
|
2.35
|
|
Fair Market Value
|
4
|
2.36
|
|
FICA Amount
|
4
|
2.37
|
|
Final Company Credit
|
4
|
2.38
|
|
Impairment.
|
4
|
2.39
|
|
Investment Earnings/Losses
|
4
|
2.40
|
|
Investment Election Form
|
4
|
2.41
|
|
Investment Options
|
4
|
2.42
|
|
Normal Retirement
|
4
|
2.43
|
|
Normal Retirement Age
|
4
|
2.44
|
|
Normal Retirement Date
|
5
|
2.45
|
|
Operating Group Participant
|
5
|
2.46
|
|
Participant
|
5
|
2.47
|
|
Plan
|
5
|
2.48
|
|
Plan Year
|
5
|
2.49
|
|
Prior Plan
|
5
|
2.50
|
|
Reference Date
|
5
|
2.51
|
|
Retirement
|
5
|
2.52
|
|
Retirement Date
|
5
|
2.53
|
|
Schedule
|
5
|
2.54
|
|
Section 409A
|
5
|
2.55
|
|
Section 409A Compliance
|
5
|
2.56
|
|
Separated Participant
|
6
|
2.57
|
|
Separation From Service
|
6
|
2.58
|
|
Service
|
6
|
2.59
|
|
Spouse
|
6
|
2.60
|
|
Stock
|
6
|
2.61
|
|
Supplemental Benefits
|
6
|
2.62
|
|
Supplemental Defined Benefit
|
6
|
2.63
|
|
Supplemental Defined Contribution Benefit
|
6
|
2.64
|
|
Top Hat Plan
|
6
|
2.65
|
|
Total Disability
|
6
|
2.66
|
|
Transition Participant
|
7
|
2.67
|
|
Treasury Regulations
|
7
|
ARTICLE 3
|
|
Participation
|
7
|
3.1
|
|
Eligibility
|
7
|
3.2
|
|
Participation
|
7
|
3.3
|
|
Age/Service Requirements for Supplemental Benefits Upon Retirement
|
8
|
3.4
|
|
Supplemental Benefits Upon Death
|
8
|
3.5
|
|
Supplemental Benefits Upon Total Disability
|
8
|
3.6
|
|
Forfeiture
|
8
|
ARTICLE 4
|
|
Supplemental Defined Contribution Benefits
|
9
|
4.1
|
|
Company Credits
|
9
|
4.2
|
|
Accounts
|
12
|
4.3
|
|
Vesting
|
13
|
4.4
|
|
Distribution
|
14
|
ARTICLE 5
|
|
Special Payment Rules
|
15
|
5.1
|
|
Delay in Payment
|
15
|
5.2
|
|
Acceleration of Payment
|
15
|
5.3
|
|
No Suspension of Payment
|
16
|
5.4
|
|
Designation of Taxable Year
|
16
|
ARTICLE 6
|
|
Administration
|
16
|
6.1
|
|
Authority of the Committee
|
16
|
6.2
|
|
Outside Services
|
17
|
6.3
|
|
Decisions Binding
|
17
|
6.4
|
|
Indemnity of Committee
|
17
|
6.5
|
|
Cost of Administration
|
17
|
ARTICLE 7
|
|
Amendment and Termination
|
17
|
7.1
|
|
Amendment/Termination of Plan
|
17
|
7.2
|
|
Termination of Participant Interests
|
18
|
ARTICLE 8
|
|
Miscellaneous
|
18
|
8.1
|
|
Claims
|
18
|
8.2
|
|
Unfunded Plan
|
18
|
8.3
|
|
Unsecured General Creditor
|
18
|
8.4
|
|
Trust Fund
|
19
|
8.5
|
|
Nonassignability
|
19
|
8.6
|
|
Not a Contract of Employment
|
19
|
8.7
|
|
Validity
|
19
|
8.8
|
|
Incompetency
|
19
|
8.9
|
|
Successors
|
19
|
8.10
|
|
Tax Withholdings
|
20
|
8.11
|
|
Governing Law
|
20
|
EXHIBIT A
|
|
21
|
|
EXHIBIT B
|
28
|
||
Schedule 1
|
28
|
||
Schedule 2
|
29
|
||
Schedule 3
|
30
|
||
Schedule 4
|
32
|
||
Schedule 5
|
33
|
||
EXHIBIT C
|
|
34
|
(i)
|
the willful and continued failure of the Participant to perform substantially the Participant’s duties with the Employer (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to the Participant by the Participant’s supervisor which specifically identifies the manner in which it is asserted that the Participant has not substantially performed the Participant’s duties, or
|
(ii)
|
the willful engaging by the Participant in illegal conduct or gross misconduct which is materially and demonstrably injurious to the Employer.
|
(i)
|
solicitation of the employment or retention of any person whom the Employer has employed or retained during the two‑year period prior to the Participant’s Separation From Service. For purposes of the foregoing sentence, a person retained by the Employer means anyone who has rendered substantial consulting services to the Employer and has thereby acquired material confidential information concerning any aspect of the Employer’s operations;
|
(ii)
|
any sale, offer to sell or negotiation with respect to orders or contracts for any product or service similar to or competitive with a product or service or any equipment or system containing any such product or service sold or offered by the Employer, other than for the Employer’s account, during the two‑year period after the Participant’s Separation From Service, to or with anyone with whom the Employer has so dealt or anywhere in any state of the United States or in any other country, territory or possession in which the Employer has, during said period, sold, offered or negotiated with respect to orders or contracts for any such product, service, equipment or system; or
|
(iii)
|
ownership of any direct or indirect interest (other than a less-than-one-percent stock interest in a corporation) in, or affiliation with, or rendering any services for, any person or business entity which engages, during the two‑year period after the Participant’s Separation From Service, either directly or indirectly, in any of the activities described in subparagraph (i) or (ii) above.
|
(i)
|
An Active Participant who was a Participant for an entire Plan Year shall receive a Company Credit in the amount of $200,000 on the Annual Credit Date for the Plan Year to his or her Account
;
provided, however, that the Company Credit received under this Section 4.1(a)(i) for the 2013 Plan Year shall be in the amount of $100,000 and shall not be provided to an Active Participant who is an Operating Group Participant; provided, further, there shall be no Company Credit under this Section 4.1(a)(i) for any Participant for the 2015 Plan Year.
|
(ii)
|
An Active Participant who became an Active Participant during a Plan Year shall receive for such Plan Year a Company Credit equal to the product of (x) $200,000 and (y) a fraction, the numerator of which is the number of complete calendar months in the Plan Year during which the Active Participant was an Active Participant, and the denominator of which is twelve; provided, however, that the Company Credit received under this Section 4.1(a)(ii) for the 2013 Plan Year shall be equal to the product of (x) $100,000 and (y) a fraction, the numerator of which is the number of complete calendar months in the Plan Year during which the Active Participant was an Active Participant but not an Operating Group Participant, and the denominator of which is twelve; provided, further, there shall be no Company Credit under this Section 4.1(a)(ii) for any Participant for the 2015 Plan Year. Any such Company Credit shall be credited to the Active Participant’s Account on the Annual Credit Date for the relevant Plan Year.
|
(iii)
|
An Active Participant who becomes a Separated Participant due to Retirement, death or Total Disability during a Plan Year shall receive a Company Credit equal to the product of (x) $200,000 and (y) a fraction, the numerator of which is the number of complete calendar months in the Plan Year when such Participant was an Active Participant prior to (I) the Active Participant’s Retirement Date, (II) the date of the Active Participant’s death or (III) the date the Active Participant became Totally Disabled, as applicable, and the denominator of which is twelve; provided, however, that the Company Credit received under this Section 4.1(a)(iii) for the 2013 Plan Year shall be equal to the product of (x) $100,000 and (y) a fraction, the numerator of which is the number of complete calendar months in the Plan Year when such Participant was an
|
(i)
|
An Active Participant who is an Operating Group Participant for an entire Plan Year shall be granted on the Annual Credit Date for such Plan Year a deferred share unit award under the Equity Plan (an “
ESRP Share Award
”) with a Fair Market Value on such Annual Credit Date equal to $200,000; provided, however, there shall be no ESRP Share Award under this Section 4.1(b)(i) for the 2015 Plan Year. The terms of the ESRP Share Award shall, in a manner that results in Section 409A Compliance, provide that the award will vest in accordance with Section 4.3 of the Plan and the underlying shares of Stock will be settled to the Operating Group Participant in accordance with Section 4.4 of the Plan, subject, in each case, to Section 7 of the Equity Plan or any successor provision. In addition, the ESRP Share Award shall provide for dividend equivalents. The other terms of the ESRP Share Award shall be governed by the Equity Plan.
|
(i)
|
An Active Participant who is an Operating Group Participant for a portion of a Plan Year, other than an Active Participant who becomes a Separated Participant during the Plan Year, shall receive an ESRP Share Award with a Fair Market Value on such Annual Credit Date equal to the product of (x) $200,000 and (y) a fraction, the numerator of which is the number of complete calendar months in the Plan Year during which the Active Participant was an Operating Group Participant and the denominator of which is twelve; provided, however, there shall be no ESRP Share Award under this Section 4.1(b)(ii) for the 2015 Plan Year. Any such ESRP Share Award shall be granted to the Active Participant on the Annual Credit Date for the relevant Plan Year.
|
(ii)
|
An Active Participant who becomes a Separated Participant due to Retirement, death or Total Disability during a Plan Year at a time when he/she is an Operating Group Participant, shall not be entitled to an ESRP Share Award in respect of such Plan Year but instead for the period of the Plan Year, if any, when the Active Participant was an Operating Group Participant shall be entitled to receive a Company Credit equal to the product of (x) $200,000 and (y) a fraction, the numerator of which is the number of complete calendar months in the Plan Year when the Active Participant was an Operating Group Participant prior to (I) the Operating Group Participant's Retirement Date, (II) the date of the Operating Group Participant's death or (III) the date the Operating Group Participant became Totally Disabled, as applicable, and the denominator of which is twelve; provided, however, there shall be no Company Credit under this Section 4.1(b)(iii) for the 2015 Plan Year. Any such prorated Company Credit shall be credited to the Participant's Account on the Final Credit Date
.
|
(i)
|
Upon an Active Participant’s Retirement, the vested balance of the Participant’s Account, other than the ESRP Share Award if applicable, shall be payable to the Participant in cash in three installment payments. The amount of each cash installment payment shall be the amount determined by multiplying the value of a Participant’s Account, other than the ESRP Share Award if
|
(ii)
|
Upon an Active Participant’s Retirement, the vested balance of the Participant’s ESRP Share Award if applicable shall be distributed to the Participant in the form of shares of Stock, also in three installment payments. The number of shares in any installment payment of an ESRP Share Award if applicable shall the total number of shares under such Award remaining unpaid on the applicable Reference Date multiplied by a fraction, the numerator of which is one and the denominator of which is the remaining number of payments due to the Participant. The installment payments shall be payable on the following dates:
(I) the first Business Day following the date that is six months after the Participant’s Retirement Date, (II)
the first Business Day coinciding with or following
the first anniversary of the Participant’s Retirement Date, and (III)
the first Business Day coinciding with or following
the second anniversary of the Participant’s Retirement Date,
or, in each case, as soon as administratively feasible thereafter in a manner that is consistent with Section 409A Compliance.
|
(i)
|
Upon the death of an Active Participant, the balance of the Active Participant’s Account, calculated as of the close of business on the Reference Date, shall be paid to the Active Participant’s Beneficiary in a single lump sum cash distribution within 90 days following the date of the Active Participant’s death.
|
(ii)
|
Upon the death of a Separated Participant, the Committee shall commute any or all remaining payments to the Separated Participant’s Beneficiary by paying the remaining balance of the
|
(a)
|
Authority of the Committee.
The Administrator of the Plan shall be the Committee. The Administrator shall have complete discretionary authority to interpret the Plan and to decide all matters under the Plan. Such interpretation and decision shall be final, conclusive and binding on all Participants and any person claiming under or through any Participant, in the absence of clear and convincing evidence that the Administrator acted arbitrarily and capriciously. The Administrator shall establish such rules and procedures, maintain such records and prepare such reports as it considers to be necessary or appropriate to carry out the purposes of the Plan. As the Administrator, the Committee’s powers and duties shall include, but shall not be limited to, permitting the acceleration of vesting in individual cases in its sole and exclusive direction.
|
(b)
|
Authorized Person.
Except as the Committee may otherwise determine, the Authorized Person shall be the Executive Vice President-Global Human Resources, as from time to time in office, and his or her delegates. The Authorized Person shall have the power and responsibility to (i) undertake routine administrative tasks related to the Plan, (ii) make amendments to the
|
(c)
|
Notwithstanding any other provision in this Section, no individual acting, directly or by delegation (including, for the avoidance of doubt, the Authorized Person), as the Administrator may determine his or her own rights or entitlements under the Plan.
|
(i)
|
if the Additional Company Benefit Plan is a defined benefit or funded retirement plan, the retirement benefit shall be the Continuing Participant’s benefit accrued as of December 31, 2007, where such accrued benefit includes future cost of living increases at 3.25% from December 31, 2007 through age 65 and reduced to an Actuarially Equivalent non-escalating life annuity (where such escalation would be assumed at 3.25%); and
|
(ii)
|
if the Additional Company Benefit Plan is a defined contribution retirement plan, the retirement benefit shall be a projected benefit at age 65, based on the Continuing Participant’s account balance thereunder as of December 31, 2007, assuming 7.0% annual returns, and converted to an age 65 annuity using mortality and interest rates under Section 417(e) of the Code in effect on the applicable Freeze Date.
|
(i)
|
Mandatory Provision Fund – Dresdner RCM MPF Plan (Hong Kong);
|
(ii)
|
State Street Superannuation Plan (Australia);
|
(iii)
|
State Street Switzerland Pension Plan for Senior Management; and
|
(iv)
|
State Street UK Pension & Life Assurance Plan.
|
(a)
|
For years prior to 2007, a Continuing Participant’s annualized rate of base salary as of January 1 of that year and annual incentive compensation under the Employer’s annual incentive plan
relating to performance in the prior fiscal year,
regardless of when paid.
|
(b)
|
For 2007 and any year thereafter including the applicable Freeze Date, a Continuing Participant’s annualized rate of base salary as of January 1 of that year and annual incentive compensation awards under the incentive plan applicable to the Continuing Participant relating to performance in the prior fiscal year
and, in the case of members of the Operating Group, the annual incentive compensation awarded or paid under the Senior Executive Annual Incentive Plan (“
SEAIP
”) or any successor thereto
, regardless of whether or when awarded or paid.
|
(c)
|
In lieu of other amounts, the calculation of the amount of annual incentive award to be included for purposes of determining “Earnings” through January 1, 2008, with respect to a Continuing Participant who was employed by SSgA in an SSgA Plan shall be the lesser of (i) his or her actual annual incentive cash bonus or (ii) the percentage of base pay earned for the respective year as determined by the Administrator and recorded in the records of the Company.
|
(d)
|
For the avoidance of doubt, prior to January 1, 2007, “Earnings”
shall not
include any long‑term incentive awards.
|
(iii)
|
the supplemental benefit determined under Section A.2.2 above, reduced by:
|
(iv)
|
the sum of (A) and (B) below:
|
(A)
|
.0833% for each whole calendar month by which the Continuing Participant’s Early Retirement Date commencement precedes his or her 65
th
birthday, excluding any period prior to the Continuing Participant’s 60
th
birthday; and
|
(B)
|
.2083% for each whole calendar month by which the Continuing Participant’s Early Retirement Date precedes his or her 60
th
birthday.
|
(i)
|
Death Benefits
. Upon the death of a Continuing Participant after satisfying the age and service requirements of Section 3.3, but before commencement of benefit payments, a death benefit shall be payable to the Continuing Participant’s designated Beneficiary. The amount of such death benefit shall be the Actuarial Equivalent of 50% of the Continuing Participant’s Supplemental Defined Benefit calculated pursuant to Section A.2.2 (determined without the adjustments described in Section A.2.2(e)), payable as an Actuarially Equivalent single lump sum cash distribution within 90 days following the date of the Continuing Participant’s death.
|
(ii)
|
Commutation Due to Death
. Upon the death of a Continuing Participant who is receiving the distribution of his or her accrued Supplemental Defined Benefit pursuant to Section A.2.6(a), the Committee shall commute any or all remaining payments by paying the remainder of the accrued Supplemental Defined Benefit to the Continuing Participant’s Beneficiary in an Actuarially Equivalent single lump sum cash distribution within 90 days following the date of the Continuing Participant’s death.
|
Status:
|
Active
|
Participation Date:
|
September 1, 2000
|
Section A.2.2 Supplemental Defined Benefit at Normal Retirement:
|
Subject to the terms of the Plan, Exhibit A, and the Special Benefit hereafter described, the supplemental benefit under Section A.2.2 of the Plan shall be the benefit set forth in this Schedule 1 of Exhibit B.
|
Special
Benefit: |
The Participant’s Special Benefit under the Plan and Exhibit A shall be equal to his cash balance account benefit which shall consist of an opening cash balance account in the sum of $500,000 as of September 1, 2000 and earnings credited thereafter in the same percentage and in the same manner as though such cash balance account were provided under the terms of the Basic Plan. There shall be no additional contributions to this “cash balance account.”
|
|
If the Participant’s benefit under the Plan is subsequently determined under the generally applicable rules of the Plan, the value of the Special Benefit set forth above shall be payable in addition to such generally applicable Plan benefit.
|
|
The Special Benefit is in addition to any Supplemental Benefits under the Plan and Exhibit A.
|
Section A.2.2(e) Applicability:
|
The offset for Other Retirement Income is not applicable to the Special Benefit pursuant to this Schedule 1 of Exhibit B.
|
Age/Service Requirements:
|
The Participant’s prior years of service with the Employer as well as the Participant’s years of service with Boston Financial Data Services shall be considered as Service hereunder.
|
|
The age and service requirements to qualify for a benefit set forth in Section A.2.2 of the Plan above are as follows:
|
|
(1) The Service requirement of completion of ten full years of Employment is satisfied by the recognition of prior Service above.
|
|
(2) There is no age requirement to qualify for the Special Benefit pursuant to this Schedule 1 of Exhibit B.
|
Status:
|
Active
|
Participation Date:
|
January 1, 2003
|
Freeze Date:
|
For purposes of the Plan, the Freeze Date applicable to the Participant is December 31, 2010.
|
Section A.2.2 Supplemental Defined Benefit at Normal Retirement:
|
Subject to the terms of the Plan and Exhibit A, the maximum Supplemental Defined Benefit under Section A.2.2 of the Plan before offsets shall be equal to 20% of the Participant’s Final Average Earnings.
|
Section A.2.3 Supplemental Defined Benefit at Early Retirement:
|
The Participant’s Supplemental Defined Benefit shall be determined under Section A.2.3(a) of the Plan. Subject to the terms of the Plan and Exhibit A, the maximum Supplemental Defined Benefit under Section A.2.3 of the Plan before offsets shall be equal to 20% of the Participant’s Final Average Earnings.
|
Section A.2.2(c) Applicability:
|
The offset for Other Retirement Income is applicable to the benefit under Section A.2.2 of the Plan.
|
a)
|
a benefit payment,
|
b)
|
a resolution of a disputed amount of benefit payment, or
|
c)
|
a resolution of a dispute as to whether the person is entitled to the particular form of benefit payment.
|
a)
|
Each claim must be in writing and delivered by hand or first-class mail (including registered or certified mail) to the Administrator, at the following address:
|
b)
|
The claim must also include sufficient information relating to the identity of the claimant and such other information reasonably necessary to allow the claim to be evaluated.
|
c)
|
In no event may a claim for benefits be filed by a Claimant more than 120 days after the applicable “Notice Date,” as defined below.
|
i)
|
In any case where benefits are paid to the Claimant as a lump sum, the Notice Date shall be the date of payment of the lump sum.
|
ii)
|
In any case where benefits are paid to the Claimant in the form of an annuity or installments, the Notice Date shall be the date of payment of the first installment of the annuity or payment of first installment.
|
iii)
|
In any case where the Plan (prior to the filing of a claim for benefits) determines that an individual is not entitled to benefits (for example (without limitation) where an individual terminates employment and the Plan determines that he has not vested) and the Plan provides written notice to such person of its determination, the Notice Date shall be the date of the individual’s receipt of such notice.
|
iv)
|
In any case where the Plan provides an individual with a written statement of his account as of a specific date or the amounts credit to, or charged against, his account within a specified period, the Notice Date with regard to matters described in such statement shall be the date of the receipt of such notice by such individual (or beneficiary).
|
a)
|
the specific reason or reasons for the denial,
|
b)
|
reference to the specific Plan provisions on which the denial is based,
|
c)
|
a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary,
|
d)
|
reference to and a copy of these Procedures, so as to provide the claimant with a description of the relevant Plan’s review procedures and the time limits applicable to such procedures, a description of the claimant’s rights regarding documentation as described in Paragraph 9, and
|
e)
|
a statement of the claimant’s rights under Section 502(a) of ERISA to bring a civil action with respect to an adverse determination upon review of an appeal filed under Paragraph 6.
|
a)
|
the specific reason or reasons for the adverse determination,
|
b)
|
reference to the specific plan provisions on which the adverse determination was based,
|
c)
|
reference to and a copy of these Procedures, so as to provide the claimant with a description of the claimant’s rights regarding documentation as described in Paragraph 9, and
|
d)
|
a statement of the claimant’s rights under Section 502(a) of ERISA to bring a civil action with respect to the adverse determination.
|
a)
|
was relied on in determining the claim,
|
b)
|
was submitted, considered or generated in the course of making such determination (whether or not actually relied on), or
|
c)
|
demonstrates that such determination was made in accordance with governing Plan documents (including, for this purpose, these Procedures) and that, where appropriate, Plan provisions have been applied consistently with similarly situated claimants.
|
a)
|
The claimant’s actual entitlement, if any, to bring suit and the scope of and other rules pertaining to any such suit shall be governed by, and subject to the limitations of, applicable law, including ERISA. By extending to an employee or former employee the right to file a claim under these Procedures, neither the Company nor any person or committee appointed as Administrator acknowledges or concedes that such individual is a participant in any particular Plan within the meaning of such Plan or ERISA, and reserves the right to assert that an individual is not a participant in any action brought under Section 502(a).
|
b)
|
In no event may any legal proceeding regarding entitlement to benefits or any aspect of benefits under the Plan be commenced later than the earliest of:
|
i)
|
two years after the applicable Notice Date; or
|
ii)
|
one year after the date a claimant receives a decision from the Appeals Committee regarding his appeal; or
|
iii)
|
the date otherwise prescribed by applicable law.
|
c)
|
Before any legal proceeding can be brought, a participant must exhaust the claim appeals procedures as set forth herein.
|
1.
|
Company Credits
.
|
(i)
|
An Active Participant who was a Participant for an entire Plan Year shall receive a Company Credit in the amount of $200,000 on the Annual Credit Date for the Plan Year to his or her Account; provided, however, that the Company Credit received under this Section 4.1(a)(i) for the 2013 Plan Year shall be in the amount of $100,000 and shall not be provided to an Active Participant who is an Operating Group Participant; provided, further, there shall be no Company Credit under this Section 4.1(a)(i) for any Participant for the 2015 Plan Year or the 2016 Plan Year.
|
(ii)
|
An Active Participant who became an Active Participant during a Plan Year shall receive for such Plan Year a Company Credit equal to the product of (x) $200,000 and (y) a fraction, the numerator of which is the number of complete calendar months in the Plan Year during which the Active Participant was an Active Participant, and the denominator of which is twelve; provided, however, that the Company Credit received under this Section 4.1(a)(ii) for the 2013 Plan Year shall be equal to the product of (x) $100,000 and (y) a fraction, the numerator of which is the number of complete calendar months in the Plan Year during which the Active Participant was an Active Participant but not an Operating Group Participant, and the denominator of which is twelve; provided, further, there shall be no Company Credit under this Section 4.1(a)(ii) for any Participant for the 2015 Plan Year or the 2016 Plan Year. Any such Company Credit
|
(iii)
|
An Active Participant who becomes a Separated Participant due to Retirement, death or Total Disability during a Plan Year shall receive a Company Credit equal to the product of (x) $200,000 and (y) a fraction, the numerator of which is the number of complete calendar months in the Plan Year when such Participant was an Active Participant prior to (I) the Active Participant’s Retirement Date, (II) the date of the Active Participant’s death or (III) the date the Active Participant became Totally Disabled, as applicable, and the denominator of which is twelve; provided, however, that the Company Credit received under this Section 4.1(a)(iii) for the 2013 Plan Year shall be equal to the product of (x) $100,000 and (y) a fraction, the numerator of which is the number of complete calendar months in the Plan Year when such Participant was an Active Participant but not an Operating Group Participant prior to (I) the Active Participant's Retirement Date, (II) the date of the Active Participant's death or (III) the date the Active Participant became Totally Disabled, as applicable, and the denominator of which is twelve); provided, further, there shall be no Company Credit under this Section 4.1(a)(iii) for any Participant for the 2015 Plan Year or the 2016 Plan Year. Any such prorated Company Credit shall be credited to the Participant’s Account on the last Business Day of the month in which the Participant’s Retirement, death or Total Disability occurred (the “
Final Credit Date
”).
|
(i)
|
An Active Participant who is an Operating Group Participant for an entire Plan Year shall be granted on the Annual Credit Date for such Plan Year a deferred share unit award under the Equity Plan (an “
ESRP Share Award
”) with a Fair Market Value on such Annual Credit Date equal to $200,000; provided, however, there shall be no ESRP Share Award under this Section 4.1(b)(i) for the 2015 Plan Year or the 2016 Plan Year. The terms of the ESRP Share Award shall, in a manner that results in Section 409A Compliance, provide that the award will vest in accordance with Section 4.3 of the Plan and the underlying shares of Stock will be settled to the Operating Group Participant in accordance with Section 4.4 of the Plan, subject, in each case, to Section 7 of the Equity Plan or any successor provision. In addition, the ESRP Share Award shall provide for dividend equivalents. The other terms of the ESRP Share Award shall be governed by the Equity Plan.
|
(ii)
|
An Active Participant who is an Operating Group Participant for a portion of a Plan Year, other than an Active Participant who becomes a Separated Participant during the Plan Year, shall receive an ESRP Share Award with a Fair Market Value on such Annual Credit Date
|
(iii)
|
An Active Participant who becomes a Separated Participant due to Retirement, death or Total Disability during a Plan Year at a time when he/she is an Operating Group Participant, shall not be entitled to an ESRP Share Award in respect of such Plan Year but instead for the period of the Plan Year, if any, when the Active Participant was an Operating Group Participant shall be entitled to receive a Company Credit equal to the product of (x) $200,000 and (y) a fraction, the numerator of which is the number of complete calendar months in the Plan Year when the Active Participant was an Operating Group Participant prior to (I) the Operating Group Participant's Retirement Date, (II) the date of the Operating Group Participant's death or (III) the date the Operating Group Participant became Totally Disabled, as applicable, and the denominator of which is twelve; provided, however, there shall be no Company Credit under this Section 4.1(b)(iii) for the 2015 Plan Year or the 2016 Plan Year. Any such prorated Company Credit shall be credited to the Participant's Account on the Final Credit Date.
|
•
|
annual retainer - $75,000, payable at the director’s election in shares of State Street common stock or in cash;
|
•
|
meeting fees - $1,500 for each Board meeting attended, together with reimbursement of expenses incurred as a result of attending such meetings, payable in cash;
|
•
|
meeting fees - $1,500 for each committee meeting attended with the exception of the lead director, together with reimbursement of expenses incurred as a result of attending such meetings, payable in cash;
|
•
|
an annual common stock award in an amount of shares equal to $150,000 divided by the closing price of the stock on the date of the annual meeting that begins the period (with additional stock amounts to reflect dividends if the award is deferred);
|
•
|
a pro-rated annual retainer and annual common stock award for any director joining the Board after the annual meeting that begins the period;
|
•
|
an additional annual retainer for the Lead Director of $150,000, payable at the director’s election in shares of State Street common stock or in cash;
|
•
|
an additional annual retainer for the Examining and Audit Committee Chair and for the Risk Committee Chair of $25,000, payable at the director’s election in shares of State Street common stock or in cash;
|
•
|
an additional annual retainer for the Chair of the Executive Compensation Committee of $20,000, payable at the director’s election in shares of State Street common stock or in cash;
|
•
|
an additional annual retainer for the Chair of the Nominating and Corporate Governance Committee of $15,000, payable at the director’s election in shares of State Street common stock or in cash; and
|
•
|
an additional annual retainer for each member of the Examining and Audit Committee and for each member of the Risk Committee, other than the Chairs, of $15,000, payable at the director’s election in shares of State Street common stock or in cash.
|
|
|
Years Ended December 31,
|
||||||||||||||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
||||||||||
EXCLUDING INTEREST ON DEPOSITS:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pre-tax income from continuing operations, as reported
|
|
$
|
2,298
|
|
|
$
|
2,437
|
|
|
$
|
2,666
|
|
|
$
|
2,747
|
|
|
$
|
2,518
|
|
Share of pre-tax income (loss) of unconsolidated entities
|
|
(700
|
)
|
|
(10
|
)
|
|
1
|
|
|
(15
|
)
|
|
37
|
|
|||||
Fixed charges
|
|
321
|
|
|
318
|
|
|
365
|
|
|
370
|
|
|
462
|
|
|||||
Adjusted earnings
|
(A)
|
$
|
1,919
|
|
|
$
|
2,745
|
|
|
$
|
3,032
|
|
|
$
|
3,102
|
|
|
$
|
3,017
|
|
Interest on short-term borrowings
|
|
$
|
7
|
|
|
$
|
6
|
|
|
$
|
60
|
|
|
$
|
73
|
|
|
$
|
96
|
|
Interest on long-term debt, including amortization of debt issuance costs
|
|
219
|
|
|
206
|
|
|
184
|
|
|
176
|
|
|
241
|
|
|||||
Portion of long-term leases representative of the interest factor
(1)
|
|
95
|
|
|
106
|
|
|
121
|
|
|
121
|
|
|
125
|
|
|||||
Preferred stock dividends and related adjustments
(2)
|
|
112
|
|
|
61
|
|
|
33
|
|
|
39
|
|
|
27
|
|
|||||
Fixed charges and preferred stock dividends
|
(B)
|
$
|
433
|
|
|
$
|
379
|
|
|
$
|
398
|
|
|
$
|
409
|
|
|
$
|
489
|
|
Consolidated ratios of adjusted earnings to combined fixed charges and preferred stock dividends, excluding interest on deposits
|
(A)/(B)
|
4.43x
|
|
|
7.24x
|
|
|
7.62x
|
|
|
7.58x
|
|
|
6.17x
|
|
|||||
INCLUDING INTEREST ON DEPOSITS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pre-tax income from continuing operations, as reported
|
|
$
|
2,298
|
|
|
$
|
2,437
|
|
|
$
|
2,666
|
|
|
$
|
2,747
|
|
|
$
|
2,518
|
|
Share of pre-tax income (loss) of unconsolidated entities
|
|
(700
|
)
|
|
(10
|
)
|
|
1
|
|
|
(15
|
)
|
|
37
|
|
|||||
Fixed charges
|
|
418
|
|
|
416
|
|
|
458
|
|
|
536
|
|
|
682
|
|
|||||
Adjusted earnings
|
(C)
|
$
|
2,016
|
|
|
$
|
2,843
|
|
|
$
|
3,125
|
|
|
$
|
3,268
|
|
|
$
|
3,237
|
|
Interest on short-term borrowings and deposits
|
|
$
|
104
|
|
|
$
|
104
|
|
|
$
|
153
|
|
|
$
|
239
|
|
|
$
|
316
|
|
Interest on long-term debt, including amortization of debt issuance costs
|
|
219
|
|
|
206
|
|
|
184
|
|
|
176
|
|
|
241
|
|
|||||
Portion of long-term leases representative of the interest factor
(1)
|
|
95
|
|
|
106
|
|
|
121
|
|
|
121
|
|
|
125
|
|
|||||
Preferred stock dividends and related adjustments
(2)
|
|
112
|
|
|
61
|
|
|
33
|
|
|
39
|
|
|
27
|
|
|||||
Fixed charges and preferred stock dividends
|
(D)
|
$
|
530
|
|
|
$
|
477
|
|
|
$
|
491
|
|
|
$
|
575
|
|
|
$
|
709
|
|
Consolidated ratios of adjusted earnings to combined fixed charges and preferred stock dividends, including interest on deposits
|
(C)/(D)
|
3.80x
|
|
|
5.96x
|
|
|
6.36x
|
|
|
5.68x
|
|
|
4.57x
|
|
|
|
Years Ended December 31,
|
||||||||||||||||||
(Dollars in millions)
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
||||||||||
EXCLUDING INTEREST ON DEPOSITS:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pre-tax income from continuing operations, as reported
|
|
$
|
2,298
|
|
|
$
|
2,437
|
|
|
$
|
2,666
|
|
|
$
|
2,747
|
|
|
$
|
2,518
|
|
Share of pre-tax income (loss) of unconsolidated entities
|
|
(700
|
)
|
|
(10
|
)
|
|
1
|
|
|
(15
|
)
|
|
37
|
|
|||||
Fixed charges
|
|
321
|
|
|
318
|
|
|
365
|
|
|
370
|
|
|
462
|
|
|||||
Adjusted earnings
|
(A)
|
$
|
1,919
|
|
|
$
|
2,745
|
|
|
$
|
3,032
|
|
|
$
|
3,102
|
|
|
$
|
3,017
|
|
Interest on short-term borrowings
|
|
$
|
7
|
|
|
$
|
6
|
|
|
$
|
60
|
|
|
$
|
73
|
|
|
$
|
96
|
|
Interest on long-term debt, including amortization of debt issuance costs
|
|
219
|
|
|
206
|
|
|
184
|
|
|
176
|
|
|
241
|
|
|||||
Portion of long-term leases representative of the interest factor
(1)
|
|
95
|
|
|
106
|
|
|
121
|
|
|
121
|
|
|
125
|
|
|||||
Fixed charges
|
(B)
|
$
|
321
|
|
|
$
|
318
|
|
|
$
|
365
|
|
|
$
|
370
|
|
|
$
|
462
|
|
Consolidated ratios of adjusted earnings to fixed charges, excluding interest on deposits
|
(A)/(B)
|
5.98x
|
|
|
8.63x
|
|
|
8.31x
|
|
|
8.38x
|
|
|
6.53x
|
|
|||||
INCLUDING INTEREST ON DEPOSITS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pre-tax income from continuing operations, as reported
|
|
$
|
2,298
|
|
|
$
|
2,437
|
|
|
$
|
2,666
|
|
|
$
|
2,747
|
|
|
$
|
2,518
|
|
Share of pre-tax income (loss) of unconsolidated entities
|
|
(700
|
)
|
|
(10
|
)
|
|
1
|
|
|
(15
|
)
|
|
37
|
|
|||||
Fixed charges
|
|
418
|
|
|
416
|
|
|
458
|
|
|
536
|
|
|
682
|
|
|||||
Adjusted earnings
|
(C)
|
$
|
2,016
|
|
|
$
|
2,843
|
|
|
$
|
3,125
|
|
|
$
|
3,268
|
|
|
$
|
3,237
|
|
Interest on short-term borrowings and deposits
|
|
$
|
104
|
|
|
$
|
104
|
|
|
$
|
153
|
|
|
$
|
239
|
|
|
$
|
316
|
|
Interest on long-term debt, including amortization of debt issuance costs
|
|
219
|
|
|
206
|
|
|
184
|
|
|
176
|
|
|
241
|
|
|||||
Portion of long-term leases representative of the interest factor
(1)
|
|
95
|
|
|
106
|
|
|
121
|
|
|
121
|
|
|
125
|
|
|||||
Fixed charges
|
(D)
|
$
|
418
|
|
|
$
|
416
|
|
|
$
|
458
|
|
|
$
|
536
|
|
|
$
|
682
|
|
Consolidated ratios of adjusted earnings to fixed charges, including interest on deposits
|
(C)/(D)
|
4.82x
|
|
|
6.83x
|
|
|
6.82x
|
|
|
6.10x
|
|
|
4.75x
|
|
|
|
Antrim Corporation
|
Massachusetts
|
Currenex INC
|
New York
|
Global Macro Fund LP
|
Cayman Islands
|
International Fund Services (Ireland) Limited
|
Ireland
|
International Fund Services (N.A.) L.L.C.
|
New York
|
Investors Boston Securities Corporation
|
Massachusetts
|
Investors Copley Securities Corporation
|
Massachusetts
|
LASER Trust
|
Grand Cayman
|
Lincoln Securities Corporation
|
Massachusetts
|
Offshore Financial Solutions LTD
|
Grand Cayman
|
Quincy Securities Corporation
|
Massachusetts
|
Sail Trust
|
Grand Cayman
|
SS Borrowdale Pty Limited
|
Australia
|
SS Scarborough Pty Limited
|
Australia
|
SSB Realty, LLC
|
Massachusetts
|
SSGM International UK
|
United Kingdom
|
State Street Australia Limited
|
Australia
|
State Street Bank and Trust Company
|
Massachusetts
|
State Street Bank GMBH
|
Germany
|
State Street Bank Luxembourg S.A.
|
Luxembourg
|
State Street Europe Holdings Germany Sarl & Co KG
|
Germany
|
State Street Europe Holdings Luxembourg Sarl
|
Luxembourg
|
State Street Europe Holdings Switzerland GMBH
|
Switzerland
|
State Street Europe Limited
|
United Kingdom
|
State Street Global Advisors, Inc
|
Massachusetts
|
State Street Global Advisors International Holdings Inc
|
Delaware
|
State Street Global Advisors Limited
|
United Kingdom
|
State Street Global Markets LLC
|
Massachusetts
|
State Street Holdings Germany GMBH
|
Germany
|
State Street International Finance Luxembourg Sarl
|
Luxembourg
|
State Street International Holdings
|
Massachusetts
|
State Street International Holdings UK Ltd
|
United Kingdom
|
State Street Intl Holdings Switzerland GMBH
|
Switzerland
|
State Street Investment Services California LLC
|
California
|
State Street Public Lending Corporation
|
Massachusetts
|
State Street Social Investments Corporation
|
Massachusetts
|
1.
|
I have reviewed this Annual Report on Form 10-K of State Street Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present, in all material respects, the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
Date:
|
February 19, 2016
|
|
By:
|
/s/ J
OSEPH
L. H
OOLEY
|
|
|
|
|
Joseph L. Hooley,
|
|
|
|
|
Chairman and Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K of State Street Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present, in all material respects, the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
Date:
|
February 19, 2016
|
|
By:
|
/s/ M
ICHAEL
W. B
ELL
|
|
|
|
|
Michael W. Bell,
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
|
Date:
|
February 19, 2016
|
|
By:
|
/s/ J
OSEPH
L. H
OOLEY
|
|
|
|
|
Joseph L. Hooley,
|
|
|
|
|
Chairman and Chief Executive Officer
|
|
|
|
|
|
Date:
|
February 19, 2016
|
|
By:
|
/s/ M
ICHAEL
W. B
ELL
|
|
|
|
|
Michael W. Bell,
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|