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What changed in State Street Corporation's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of State Street Corporation's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+759 added−856 removedSource: 10-K (2026-02-19) vs 10-K (2025-02-13)

Top changes in State Street Corporation's 2025 10-K

759 paragraphs added · 856 removed · 635 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

93 edited+21 added−22 removed127 unchanged
Biggest changeAgencies pursuant to the EGRRCPA, central bank deposits are excluded from a custodial banking organization’s total leverage exposure for purposes of calculating the SLR. This exclusion is not applicable to total leverage exposure under the calculation of Tier 1 leverage. The rule became effective on April 1, 2020.
Biggest changeChanges to the TLAC and LTD requirements may have limited implications for us, but, are not expected to change our management of TLAC or LTD. Under a final rule adopted by the U.S. Agencies pursuant to the EGRRCPA, central bank deposits are excluded from a custodial banking organization’s total leverage exposure for purposes of calculating the SLR.
G-SIB Surcharge The eight U.S. bank holding companies deemed to be G-SIBs, including us, are required to calculate the G-SIB surcharge annually according to two methods, and be bound by the higher of the two: • Method 1: Assesses systemic importance based upon five equally-weighted components: size, interconnectedness, complexity, cross-jurisdictional activity and substitutability; or • Method 2: Alters the calculation from Method 1 by factoring in a short-term wholesale funding score in place of substitutability and applying a fixed coefficient to each of the five components.
G-SIB Surcharge The eight U.S. bank holding companies deemed to be G-SIBs, including us, are required to calculate their G-SIB surcharge annually according to two methods, and be bound by the higher of the two: • Method 1: Assesses systemic importance based upon five equally-weighted components: size, interconnectedness, complexity, cross-jurisdictional activity and substitutability; or • Method 2: Alters the calculation from Method 1 by factoring in a short-term wholesale funding score in place of substitutability and applying a fixed coefficient to each of the five components.
Under the SCB final rule, a banking organization would be able to make capital distributions and discretionary bonus payments without specified quantitative limitations (although subject to other potential regulatory constraints, such as supervisory limitations), as long as it maintains its required SCB plus the applicable G-SIB surcharge (plus any potentially applicable countercyclical capital buffer) over the minimum required risk-based capital ratios and as long as it satisfies all leverage based capital requirements and buffers.
Under the SCB rule, a banking organization would be able to make capital distributions and discretionary bonus payments without specified quantitative limitations (although subject to other potential regulatory constraints, such as supervisory limitations), as long as it maintains its required SCB plus the applicable G-SIB surcharge (plus any potentially applicable countercyclical capital buffer) over the minimum required risk-based capital ratios and as long as it satisfies all leverage based capital requirements and buffers.
Technological expertise, economies of scale, required levels of capital, pricing, quality and scope of services, and sales and marketing are critical to our Investment Servicing line of business. For our Investment Management line of business, key competitive factors include expertise, experience, availability of related service offerings, quality of service, price, efficiency of our products and services, and performance.
Technological advances, economies of scale, required levels of capital, pricing, quality and scope of services, and sales and marketing are critical to our Investment Servicing line of business. For our Investment Management line of business, key competitive factors include expertise, experience, availability of related service offerings, quality of service, price, efficiency of our products and services, and performance.
Together with our middle- and back-office services, CRD’s front- and middle-office technology offerings form the foundation of State Street Alpha ® . Our State Street Alpha platform combines portfolio management, trading and execution, analytics and compliance tools, and advanced data aggregation and integration with other industry platforms and providers.
Together with our back- and middle-office services, CRD’s front- and middle-office technology offerings form the foundation of State Street Alpha. Our State Street Alpha platform combines portfolio management, trading and execution, analytics and compliance tools, along with advanced data aggregation and integration with other industry platforms and providers.
For the purposes of calculating the SLR, State Street Bank is similarly subject to the U.S. Agencies’ final rule that excludes qualifying central bank deposits from a custodial banking organization’s total leverage exposure.
For the purposes of calculating the SLR, State Street Bank is subject to the U.S. Agencies’ final rule that excludes qualifying central bank deposits from a custodial banking organization’s total leverage exposure.
Our success and competitive position may depend on our ability to develop and market new and innovative services, to adopt or develop new technologies, including those incorporating artificial intelligence, to implement efficiencies into our operational processes, to bring new services to market in a timely fashion at competitive prices, to integrate existing and future products and services effectively into State Street Alpha and State Street Digital, to continue to expand our relationships with existing clients and to attract new clients, to maintain and enhance our reputation, to manage risk and to effectively and efficiently operate in a highly regulated environment.
Our success and competitive position may depend on our ability to develop and market new and innovative services, to adopt or develop new technologies, including those incorporating artificial intelligence, to implement efficiencies into our operational processes, to bring new services to market in a timely fashion at competitive prices, to integrate existing and future products and services effectively into State Street Alpha and State Street Wealth Services, to continue to expand our relationships with existing clients and to attract new clients, to maintain and enhance our reputation, to manage risk and to effectively and efficiently operate in a highly regulated environment.
The SPOE Strategy provides that prior to the bankruptcy of the Parent Company and pursuant to a support agreement among the Parent Company, SSIF (a direct subsidiary of the Parent Company), our Beneficiary Entities (as defined below) and certain of our other entities, SSIF is obligated, up to its available resources, to recapitalize and/or provide liquidity to State Street Bank and the other entities benefiting from such capital and/or liquidity support (collectively with State Street Bank, “Beneficiary Entities”), in amounts designed to prevent the Beneficiary Entities from themselves entering into resolution proceedings.
The SPOE Strategy provides that prior to the bankruptcy of the Parent Company and pursuant to a support agreement among the Parent Company, SSIF (a direct subsidiary of the Parent Company), our Beneficiary Entities (as defined below) and certain of our other entities, SSIF is obligated, up to its available resources, to recapitalize and/or provide liquidity to State Street Bank and the other entities benefiting from such capital and/or liquidity support (collectively with State Street Bank, Beneficiary Entities), in amounts designed to prevent the Beneficiary Entities from themselves entering into resolution proceedings.
ITEM 1. BUSINESS OVERVIEW State Street Corporation is one of the world’s leading providers of financial services to institutional investors, including investment services, markets and financing solutions and investment management.
ITEM 1. BUSINESS OVERVIEW State Street Corporation is one of the world’s leading providers of financial services to institutional investors, including investment servicing, markets and financing solutions and investment management.
The CFTC, the SEC, and other U.S. regulators have largely completed the implementation of key provisions of Title VII. State Street Bank has registered with the CFTC as a swap dealer.
The CFTC, the SEC, and other U.S. regulators have largely completed the implementation of the provisions of Title VII. State Street Bank has registered with the CFTC as a swap dealer.
Subsidiary Depository Institution If the FDIC is appointed the conservator or receiver of an FDIC-insured U.S. subsidiary depository institution, such as State Street Bank, upon its insolvency or certain other events, the FDIC has the ability to transfer any of the depository institution’s assets and liabilities to a new obligor without the approval of the depository institution’s creditors, enforce the terms of the depository institution’s contracts pursuant to their terms or repudiate or disaffirm contracts or leases to which the depository institution is a party.
Subsidiary Depository Institution If the FDIC is appointed the conservator or receiver of an FDIC-insured U.S. subsidiary depository institution, such as State Street Bank, upon its insolvency or certain other events, the FDIC has the ability to transfer any of the depository State Street Corporation | 19 institution’s assets and liabilities to a new obligor without the approval of the depository institution’s creditors, enforce the terms of the depository institution’s contracts pursuant to their terms or repudiate or disaffirm contracts or leases to which the depository institution is a party.
In consideration for these contributions, SSIF has agreed in the support agreement to provide capital and liquidity support to the Parent Company and all of the Beneficiary Entities in accordance with the Parent Company’s capital and liquidity policies.
In consideration for the Parent Company’s contributions, SSIF has agreed in the support agreement to provide capital and liquidity support to the Parent Company and all of the Beneficiary Entities in accordance with the Parent Company’s capital and liquidity policies.
Assuming a countercyclical buffer of 0%, the minimum capital ratios as of January 1, 2025, including a capital conservation buffer and an SCB of 2.5% for advanced and standardized approaches, respectively, and a G-SIB surcharge of 1.0%, are 8.0% for CET1 capital, 9.5% for Tier 1 risk-based capital and 11.5% for total risk-based capital, in order for us to make capital distributions and discretionary bonus payments without limitation.
Assuming a countercyclical buffer of 0%, the minimum capital ratios as of January 1, 2026, including a capital conservation buffer and an SCB of 2.5% for advanced and standardized approaches, respectively, and a G-SIB surcharge of 1.0%, are 8.0% for CET1 capital, 9.5% for Tier 1 risk-based capital and 11.5% for total risk-based capital, in order for us to make capital distributions and discretionary bonus payments without limitation.
Through State Street Investment Services, State Street Global Markets ® and State Street Alpha ® , we offer a full range of back- and middle-office solutions, including custody, accounting and fund administration services for traditional and alternative assets, as well as multi-asset class investments; recordkeeping, client reporting and investment book of record, transaction management, loans, cash, derivatives and collateral services; investor services operations outsourcing; performance, risk and compliance analytics; financial data management to support institutional investors; foreign exchange, brokerage and other trading services; securities finance, including prime services products; and deposit and short-term investment facilities.
Through State Street Investment Services and State Street Markets, we offer a full range of back-, middle- and front-office solutions, including custody, accounting and fund administration services for traditional and alternative assets, as well as multi-asset class investments; recordkeeping, client reporting and investment book of record, transaction management, loans, cash, derivatives and collateral services; investor services operations outsourcing; performance, risk and compliance analytics; financial data management to support institutional investors; foreign exchange, brokerage and other trading services; securities finance, including prime services products; and deposit and short-term investment facilities.
We provide additional disclosures required by applicable bank regulatory standards, including supplemental qualitative and quantitative information with respect to regulatory capital (including market risk associated with our trading activities), the LCR and the NSFR, summary results of annual State Street-run stress tests that we conduct under the Dodd-Frank Act, and resolution plan disclosures required under the Dodd-Frank Act.
We provide additional disclosures required by applicable bank regulatory standards, including supplemental qualitative and quantitative information with respect to regulatory capital (including market risk associated with our trading activities), the LCR and the NSFR, summary results of annual State Street-run stress tests that we conduct under the Dodd-Frank Act, and recovery and resolution disclosures.
Subsidiaries The Federal Reserve is the primary federal banking agency responsible for regulating us and our subsidiaries, including State Street Bank, with respect State Street Corporation | 16 to both our U.S. and non-U.S. operations. Our banking subsidiaries are subject to supervision and examination by various regulatory authorities and have regulatory requirements that may differ from the Parent Company.
Subsidiaries The Federal Reserve is the primary federal banking agency responsible for regulating us and our subsidiaries, including State Street Bank, with respect to both our U.S. and non-U.S. operations. Our banking subsidiaries are subject to supervision and examination by various regulatory authorities and have regulatory requirements that may differ from the Parent Company.
Under the Basel III rule, State Street Bank’s regulatory capital calculations, including any additions or deductions from capital for regulatory purposes, are consistent with the calculations of the Parent Company. For additional information about the 2023 Basel III Endgame Proposal, refer to “Basel III Rule” above in this “Supervision and Regulation” section.
Under the Basel III framework, State Street Bank’s regulatory capital calculations, including any additions or deductions from capital for regulatory purposes, are consistent with the calculations of the Parent Company. For additional information about the 2023 Basel III Endgame Proposal, refer to “Basel III Rule” above in this “Supervision and Regulation” section.
State Street Bank’s current charter was authorized by a special Act of the Massachusetts Legislature in 1891, and its present name was adopted in 1960. State Street Bank operates as a specialized bank, referred to as a trust State Street Corporation | 6 or custody bank, that services and manages assets on behalf of its institutional clients.
State Street Bank’s current charter was authorized by a special Act of the Massachusetts Legislature in 1891, and its present name was adopted in 1960. State Street Bank operates as a specialized bank, referred to as a trust or custody bank, that services and manages assets on behalf of its institutional clients.
Investment Management Our Investment Management line of business provides a comprehensive range of investment management solutions and products for our clients through State Street Global Advisors.
Investment Management Our Investment Management line of business provides a comprehensive range of investment management solutions and products for our clients through State Street Investment Management (previously State Street Global Advisors).
In addition to the SCB requirement, we continue to be subject to CCAR's capital plan requirements and the supervisory assessment of our capital planning activities.
In addition to the SCB requirement, we continue to be subject to capital plan requirements and the supervisory assessment of our capital planning activities.
The majority of our non-U.S. asset servicing operations are conducted pursuant to the Federal Reserve’s Regulation K through State Street Bank’s Edge Act subsidiary or through international branches of State Street Bank. An Edge Act corporation is a corporation organized under federal law that conducts foreign business activities.
The majority of our non-U.S. investment servicing operations are conducted pursuant to the Federal Reserve’s Regulation K through State Street Bank’s Edge Act subsidiary or through international branches of State Street Bank. An Edge Act corporation is a corporation organized under federal law that conducts foreign business activities.
The purpose of our resolution plan is to describe our preferred resolution strategy and to demonstrate that we have the resources and capabilities to execute on that strategy in the event of major financial distress. Through resolution planning, we seek to maintain our role as a key infrastructure provider within the financial system, while minimizing risk to the financial system.
The purpose of our resolution plan is to describe our preferred resolution strategy and to demonstrate that we have the resources and capabilities to execute on that strategy in the event of major financial distress. Through resolution planning, we seek to maintain our role as a key service provider within the financial system, while minimizing risk to the financial system.
The Federal Reserve conducts a qualitative assessment of our capital plan as part of the annual supervisory process known as CCAR, to evaluate the strength of our capital planning practices, including our ability to identify, measure, and determine the appropriate amount of capital for our risks, and controls and governance supporting capital planning.
The Federal Reserve conducts a qualitative assessment of our capital plan as part of the annual supervisory process, to evaluate the strength of our capital planning practices, including our ability to identify, measure, and determine the appropriate amount of capital for our risks, and controls and governance supporting capital planning.
Investment Servicing Our Investment Servicing line of business provides a broad range of services and market and financing solutions to institutional clients, including mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, investment managers, foundations and endowments worldwide.
Investment Servicing Our Investment Servicing line of business provides a broad range of investment servicing and market and financing solutions to institutional clients, including mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, wealth managers, investment managers, foundations and endowments worldwide.
Our continental European banking subsidiary, State Street Bank International GmbH is a significant entity in accordance with European banking regulations and accordingly is supervised directly by the European Central Bank. State Street Bank International GmbH operates in several countries including Germany, Luxembourg, Italy, France and Switzerland.
Our continental European banking subsidiary, State Street Bank International GmbH is a significant entity in accordance with European banking regulations and accordingly is supervised directly by the ECB. State Street Bank International GmbH operates in several countries including Germany, Luxembourg, Italy, France and Switzerland.
The Parent Company is a source of financial and managerial strength to our subsidiaries. We conduct our business primarily through State Street Bank, which traces its beginnings to 1792, with the founding of our oldest ancestor bank, Union Bank.
The Parent Company is a source of financial and managerial State Street Corporation | 6 strength to our subsidiaries. We conduct our business primarily through State Street Bank, which traces its beginnings to 1792, with the founding of our oldest ancestor bank, Union Bank.
Included in CRD’s technology offerings are Charles River Investment Management Solution, a front-office technology offering that automates and simplifies the institutional investment process across asset classes, from portfolio management and risk analytics through trading and post-trade settlement, with integrated compliance and managed data throughout; Charles River for Private Markets, an investment management solution for institutions investing in Private Credit, Private Equity, Real Estate, Infrastructure, and Funds; and Charles River Wealth Management Solution, which provides portfolio management, trading compliance and manager/sponsor communication capabilities to wealth managers, private banks and financial advisors.
Included in CRD’s technology offerings are Charles River Investment Management Solution, a front-office technology offering that automates and simplifies the institutional investment process across asset classes, from portfolio management and risk analytics through trading and post-trade settlement, with integrated compliance and managed data throughout; Charles River for Private Markets, an investment management solution for institutions investing in Private Credit, Private Equity, Real Estate, Infrastructure, and Funds; and Charles River Wealth Management Solution, which provides portfolio management, trading compliance and manager/ State Street Corporation | 7 sponsor communication capabilities to wealth managers, private banks and financial advisors.
Upon the occurrence of a Recapitalization Event: (1) SSIF would not be authorized to provide any further liquidity to the Parent Company; (2) the Parent Company would be required to contribute to SSIF any remaining assets it is required to contribute to SSIF under the support agreement (which specifically exclude amounts designated to fund expected expenses during a potential bankruptcy proceeding); (3) SSIF would be required to provide capital and liquidity support to the Beneficiary Entities to support such entities’ continued operation to the State Street Corporation | 15 extent of its available resources and consistent with the support agreement; and (4) the Parent Company would be expected to commence Chapter 11 proceedings under the U.S.
Upon the occurrence of a Recapitalization Event: (1) SSIF would not be authorized to provide any further liquidity to the Parent Company; (2) the Parent Company would be required to contribute to SSIF any remaining assets it is required to contribute to SSIF under the support agreement (which specifically exclude amounts designated to fund expected expenses during a potential bankruptcy proceeding); (3) SSIF would be required to provide capital and liquidity support to the Beneficiary Entities to support such entities’ continued operation to the extent of its available resources and consistent with the support agreement; and (4) the Parent Company would be expected to commence Chapter 11 proceedings under the U.S.
On April 4, 2024, the CISA proposed a rule under the CIRCIA that would clarify the scope of cyber incidents to be reported and would further define covered entities subject to the CIRCIA to expressly include companies in the financial services industry that are required to report cyber incidents to their primary federal regulators, such as us and State Street Bank.
On April 4, 2024, the CISA proposed a rule under the CIRCIA that would clarify the scope of cyber incidents to be reported and would further define covered entities subject to the CIRCIA to expressly include companies in the financial services industry, such as the Parent Company and State Street Bank, that are required to report cyber incidents to their primary federal regulators.
The 2023 Basel III Endgame Proposal would, among other things, eliminate the advanced approaches for monitoring risk-based capital adequacy in favor of a new standardized expanded risk-based approach that includes new standardized approaches for operational risk and CVA risk RWA components, and would also replace the existing market risk rule with the new fundamental review of the trading book (FRTB) framework.
The 2023 Basel III Endgame Proposal would, among other things, eliminate the advanced approaches for monitoring risk-based capital adequacy in favor of a new standardized expanded risk-based approach that includes new standardized methodologies for credit risk, operational risk and CVA risk components, and would also replace the existing market risk rule with the new fundamental review of the trading book (FRTB) framework.
Based on our results from the 2024 supervisory stress test, our SCB for the period of October 1, 2024 through September 30, 2025 is set at the prescribed minimum floor of 2.5% of RWA. For additional information about the SCB final rule, refer to “Capital Planning, Stress Tests and Dividends” in this “Supervision and Regulation” section.
Based on our results from the 2025 supervisory stress test, our SCB for the period of October 1, 2025 through September 30, 2026 is set at the prescribed minimum floor of 2.5% of RWA. For additional information about the SCB rule, refer to “Capital Planning, Stress Tests and Dividends” in this “Supervision and Regulation” section.
Derivatives, securities borrowing and securities lending transactions between State Street Bank and its affiliates became subject to these restrictions pursuant to the Dodd-Frank Act. The Dodd-Frank Act also expanded the scope of transactions required to be collateralized.
Derivatives, securities borrowing and securities lending transactions State Street Corporation | 17 between State Street Bank and its affiliates became subject to these restrictions pursuant to the Dodd-Frank Act. The Dodd-Frank Act also expanded the scope of transactions required to be collateralized.
The amount of stable funding can be no less than the amount of required stable funding, which is calculated by applying standardized weightings to assets, derivatives exposures and certain other items based on their liquidity characteristics. As a U.S. G-SIB, we State Street Corporation | 12 are required to maintain an NSFR that is equal to or greater than 100%.
The amount of stable funding can be no less than the amount of required stable funding, which is calculated by applying standardized weightings to assets, derivatives exposures and certain other items based on their liquidity characteristics. As a U.S. G-SIB, we are required to maintain an NSFR that is equal to or greater than 100%.
G-SIBs, such as us, are subject to the most stringent requirements, including heightened capital, leverage, liquidity and risk management requirements and single-counterparty credit limits (SCCL). Under the Federal Reserve’s regulation, we are required to comply with various liquidity-related risk management standards and maintain a liquidity buffer of unencumbered highly liquid assets based on the results of internal liquidity stress testing.
G-SIBs, such as us, are subject to the most stringent requirements, including heightened capital, leverage, liquidity and risk management requirements and single-counterparty credit limits (SCCL). Under the Federal Reserve’s regulation, we are required to comply with various liquidity-related risk management standards and maintain a liquidity buffer of unencumbered HQLA based on the results of internal liquidity stress testing.
For the quarter ended December 31, 2024, State Street Bank excluded $87.5 billion of average balances held on deposit at central banks from the denominator used in the calculation of our SLR based on this custodial banking exclusion. Pursuant to the U.S. Agencies’ LCR and NSFR final rules, as a subsidiary of a U.S.
For the quarter ended December 31, 2025, State Street Bank excluded $91.5 billion of average balances held on deposit at central banks from the denominator used in the calculation of our SLR based on this custodial banking exclusion. Pursuant to the U.S. Agencies’ LCR and NSFR final rules, as a subsidiary of a U.S.
The EGRRCPA modified certain aspects of the Federal Reserve’s stress-testing requirements, reducing the number of scenarios in the supervisory State Street Corporation | 13 stress test from three to two and modifying our obligation to perform company-run stress-tests from semi-annually to annually. The Federal Reserve adopted a final rule in October 2019 that, among other things, implemented this modification.
The EGRRCPA modified certain aspects of the Federal Reserve’s stress-testing requirements, reducing the number of scenarios in the supervisory stress test from three to two and modifying our obligation to perform company-run stress-tests from semi-annually to annually. The Federal Reserve adopted a final rule in October 2019 that, among other things, implemented this modification.
CET1 capital is composed of core capital elements, such as qualifying common shareholders' equity and related surplus plus retained earnings and the cumulative effect of foreign currency translation plus net unrealized gains (losses) on debt and equity securities classified as AFS, less treasury stock and less goodwill and other intangible assets, net of related deferred tax liabilities.
State Street Corporation | 10 CET1 capital is composed of core capital elements, such as qualifying common shareholders' equity and related surplus plus retained earnings and the cumulative effect of foreign currency translation plus net unrealized gains (losses) on debt and equity securities classified as AFS, less treasury stock and less goodwill and other intangible assets, net of related deferred tax liabilities.
If our Method 1 or Method 2 score changes year-over-year such that we would become subject to a higher surcharge, the higher surcharge would not become effective for two years from the “as of” date (e.g., a higher surcharge calculated as of December 31, 2024 would not become effective until January 1, 2027).
If our Method 1 or Method 2 score changes year-over-year such that we would become subject to a higher surcharge, the higher surcharge would not become effective for two years from the “as of” date (e.g., a higher surcharge calculated as of December 31, 2025 would not become effective until January 1, 2028).
If, however, our Method 1 or Method 2 score changes year-over-year such that we would become subject to a lower surcharge, we would be subject to the lower surcharge beginning one full year from the “as of” date (e.g., a lower surcharge calculated as of December 31, 2024 would become effective January 1, 2026).
If, however, our Method 1 or Method 2 score changes year-over-year such that we would become subject to a lower surcharge, we would be subject to the lower surcharge beginning one full year from the “as of” date (e.g., a lower surcharge calculated as of December 31, 2025 would become effective January 1, 2027).
These additional disclosures are accessible on the “Filings & reports” tab of our website at investors.statestreet.com . We use acronyms and other defined terms for certain business terms and abbreviations, as defined on the acronyms list and glossary under Item 8 in this Form 10-K.
These additional disclosures are accessible on the “Filings & reports” and “Fixed Income” tabs of our website at investors.statestreet.com . We use acronyms and other defined terms for certain business terms and abbreviations, as defined on the acronyms list and glossary under Item 8 in this Form 10-K.
The FDIC is required to determine whether and to what extent adjustments to the assessment base are appropriate for “custody banks” that satisfy State Street Corporation | 18 specified institutional eligibility criteria. The FDIC has concluded that certain liquid assets could be excluded from the deposit insurance assessment base of custody banks.
The FDIC is required to determine whether and to what extent adjustments to the assessment base are appropriate for “custody banks” that satisfy specified institutional eligibility criteria. The FDIC has concluded that certain liquid assets could be excluded from the deposit insurance assessment base of custody banks.
The G-SIB Surcharge Proposal would, among other things, measure the G-SIB surcharge in more granular 0.1% increments as opposed to the 0.5% increments that currently apply. Recent public statements by U.S. banking officials indicate that the 2023 Basel III Endgame Proposal and 2023 G-SIB Surcharge Proposal are under reconsideration.
The 2023 G-SIB Surcharge Proposal would, among other things, measure the G-SIB surcharge in 0.1% increments as opposed to the 0.5% increments that currently apply. Public statements by U.S. banking agency officials indicate that the 2023 Basel III Endgame Proposal and 2023 G-SIB Surcharge Proposal are under reconsideration.
The integrity and ethical decision-making of our employees is paramount for our culture. We want our employees to know their opinions matter and are respected, to feel comfortable asking State Street Corporation | 8 questions and raising concerns, and to have no fear of retaliation.
The integrity and ethical decision-making of our employees is paramount for our culture. We want our employees to know their opinions matter and are respected, to feel comfortable asking questions and raising concerns, and to have no fear of retaliation.
The scope of the laws and regulations and the intensity of the supervision to which our business is subject has increased since the 2008 financial crisis. Regulatory enforcement and fines have also increased across the banking and financial services sector.
State Street Corporation | 9 The scope of the laws and regulations and the intensity of the supervision to which our business is subject has increased since the 2008 financial crisis. Regulatory enforcement and fines have also increased across the banking and financial services sector.
Our status as a G-SIB has also resulted in heightened expectations of our U.S. and international regulators with respect to our capital and liquidity management and our compliance and risk oversight programs.
Our status as a G-SIB has also resulted in heightened expectations of State Street Corporation | 14 our U.S. and international regulators with respect to our capital and liquidity management and our compliance and risk oversight programs.
Consequently, Volcker Rule compliance entails both the cost of implementing a compliance program and loss of certain revenue and future opportunities. State Street Corporation | 14 Recovery and Resolution Planning Under Section 165(d) of the Dodd-Frank Act, we are required to submit a resolution plan on a biennial basis jointly to the Federal Reserve and the FDIC (the “Agencies”).
Consequently, Volcker Rule compliance entails both the cost of implementing a compliance program and loss of certain revenue and future opportunities. Recovery and Resolution Planning Under Section 165(d) of the Dodd-Frank Act, we are required to submit a resolution plan on a biennial basis jointly to the Federal Reserve and the FDIC (the Agencies).
As our businesses grow and markets evolve, we may encounter increasing and new forms of competition around the world. We believe that many key factors drive competition in the markets for our business.
As our businesses grow and markets and new technologies, including artificial intelligence, evolve, we may encounter increasing and new forms of competition around the world. We believe that many key factors drive competition in the markets for our business.
SSIF has provided the Parent Company with a committed credit line and issued (and may issue) one or more promissory notes to the Parent Company (the “Parent Company Funding Notes”) that together are intended to allow the Parent Company to continue to meet its obligations throughout the period prior to the occurrence of a “Recapitalization Event”, which is defined under the support agreement as the earlier occurrence of: (1) one or more capital and liquidity thresholds being breached or (2) the authorization by the Parent Company’s Board of Directors for the Parent Company to commence bankruptcy proceedings.
SSIF has provided the Parent Company with a committed credit line and issued (and may issue) one State Street Corporation | 15 or more promissory notes to the Parent Company (the Parent Company Funding Notes) that together are intended to allow the Parent Company to continue to meet its obligations throughout the period prior to the occurrence of a Recapitalization Event, which is defined under the support agreement as the earlier occurrence of: (1) one or more capital and liquidity thresholds being breached or (2) the authorization by the Parent Company’s Board of Directors for the Parent Company to commence bankruptcy proceedings.
Tier 1 capital is composed of CET1 capital plus additional Tier 1 capital instruments which, for us, includes three series of preferred equity outstanding as of December 31, 2024. Tier 2 capital includes certain eligible State Street Corporation | 10 subordinated long-term debt instruments. Total regulatory capital consists of Tier 1 capital and Tier 2 capital.
Tier 1 capital is composed of CET1 capital plus additional Tier 1 capital instruments which, for us, includes three series of preferred equity outstanding as of December 31, 2025. Tier 2 capital includes certain eligible subordinated long-term debt instruments. Total regulatory capital consists of Tier 1 capital and Tier 2 capital.
Under the support agreement, the Parent Company has pre-funded SSIF by contributing certain of its assets (primarily its liquid assets, cash deposits, investments in intercompany debt, investments in marketable securities, and other cash and non-cash equivalent investments) to SSIF at the time it entered into the support agreement and continues to contribute such assets, to the extent available, on an ongoing basis.
Under and as required by the support agreement, the Parent Company has pre-funded SSIF through its contribution of most of its non-subsidiary assets (primarily its liquid assets, cash deposits, investments in intercompany debt, investments in marketable securities, and other cash and non-cash equivalent investments) to SSIF at the time it entered into the support agreement and continues to contribute such assets, to the extent available, on an ongoing basis.
In the event of material financial distress, our preferred resolution strategy is the single point of entry strategy (the “SPOE Strategy”).
In the event of material financial distress, our preferred resolution strategy is the single point of entry strategy (the SPOE Strategy).
The NSFR rule requires large banking organizations to maintain a minimum amount of available stable funding, which is a weighted measure of a company’s funding sources over a one-year time horizon, calculated by applying standardized weightings to the company’s equity and liabilities based on their expected stability.
The final rule requires large banking organizations to maintain a minimum amount of available stable funding, which is a weighted measure of a company’s funding sources, calculated by applying standardized weightings to the company’s equity and liabilities based on their expected stability.
In addition, the level of HQLA we are required to maintain under the LCR is dependent upon our client relationships and the nature of services we provide, which may change over time. Deposits resulting from certain services provided (“operational deposits”) are treated as more resilient during periods of stress than other deposits.
The level of HQLA we are required to maintain under the LCR is dependent upon our client relationships and the nature of services we provide, which may change over time. Deposits resulting from certain services provided (operational deposits) are treated as more resilient than other deposits.
The U.S. Agencies’ final rule from 2019 requires U.S. G-SIBs to file a full resolution plan and a targeted resolution plan on an alternating basis in the relevant submission years. We submitted our full 165(d) resolution plan by July 1, 2023. Feedback letters from the U.S.
The Agencies’ final rule from 2019 requires U.S. G-SIBs to file a full resolution plan and a targeted resolution plan on an alternating basis in the relevant submission years. We submitted our targeted 165(d) resolution plan by July 1, 2025. Our next 165(d) resolution plan submission to the Agencies is a full resolution plan due by July 1, 2027.
As with the Parent Company, State Street Bank is subject to the Basel III framework in the United States and the market risk capital rule jointly issued by U.S. Agencies.
As with the Parent Company, State Street Bank is subject to the Basel III framework and the market risk capital rule in the United States.
The final rule became effective on October 1, 2024 and requires IDI subsidiaries of U.S. G-SIBs, such as State Street Bank, to file their IDI plans on a biennial basis, with the first IDI plan submission under the final rule due by July 1, 2026. Additionally, we are required to submit a recovery plan periodically to the Federal Reserve.
The FDIC’s final rule on IDI plans that became effective on October 1, 2024 requires IDI subsidiaries of U.S. G-SIBs, such as State Street Bank, to file their IDI plans on a biennial basis, with the first IDI plan submission under the final rule due by July 1, 2026.
Following the failures of Silicon Valley Bank and Signature Bank and the resulting losses to the DIF in the first half of 2023, the FDIC adopted a final rule on November 16, 2023 to implement a special assessment to recover the cost associated with protecting their uninsured depositors.
Following the failures of Silicon Valley Bank and Signature Bank and the resulting losses to the DIF in 2023, the FDIC adopted a final rule in November 2023 to implement a special assessment to recover the cost associated with protecting their uninsured depositors payable over an eight-quarter collection period starting with the first quarter of 2024.
Stress Capital Buffer On March 4, 2020, the U.S.
Stress Capital Buffer In March 2020, the U.S.
Under the support agreement, the Parent Company is only permitted to retain cash needed to meet its upcoming obligations and to fund expected expenses during a potential bankruptcy proceeding.
Under the support agreement, the Parent Company retains liquid assets needed to meet its upcoming obligations and to fund expected expenses during a potential bankruptcy proceeding.
Deposit Insurance The Dodd-Frank Act made permanent the general $250,000 deposit insurance limit for insured deposits. The FDIC’s Deposit Insurance Fund (DIF) is funded by assessments on FDIC IDIs. The FDIC assesses DIF premiums based on an IDI’s average consolidated total assets, less the average tangible equity of the IDI during the assessment period.
The FDIC’s Deposit Insurance Fund (DIF) is funded by assessments on FDIC IDIs. The FDIC assesses DIF premiums based on an IDI’s average consolidated total assets, less the average tangible equity of the IDI during the assessment period.
The LCR is intended to promote the short-term resilience of internationally active banking organizations, like us, to improve the banking industry’s ability to absorb shocks arising from market stress over a 30 calendar day period and improve the measurement and management of liquidity risk. The LCR measures an institution’s HQLA against its net cash outflows under a prescribed stress environment.
State Street Corporation | 12 The LCR is intended to promote the short-term resilience of internationally active banking organizations, like us, to improve the banking industry’s ability to absorb shocks arising from market stress over a 30 calendar day period and improve the measurement and management of liquidity risk.
The Federal Reserve’s final SCB rule integrates its annual capital planning and stress testing requirements with certain ongoing regulatory capital requirements and applies to certain bank holding companies, including us.
In February 2026, the Federal Reserve adopted the proposed 2026 scenarios largely as proposed, including the models used to generate the final 2026 scenarios. The Federal Reserve’s SCB rule integrates its annual capital planning and stress testing requirements with certain ongoing regulatory capital requirements and applies to certain bank holding companies, including us.
AML laws outside the United States contain similar requirements. State Street Corporation and its subsidiaries are also required to comply with sanctions laws and regulations administered and imposed by the U.S. government, including the U.S. Treasury Department’s OFAC and the Department of State, as well as comparable sanctions programs imposed by foreign governments and multilateral bodies.
AML laws outside the United States contain similar requirements. State Street Corporation and its State Street Corporation | 18 subsidiaries are also required to comply with sanctions laws and regulations administered and imposed by the U.S. government, including the U.S.
State Street Bank is also required to submit to the FDIC a plan for resolution in the event of its failure, referred to as an IDI plan. We submitted our last IDI plan by December 1, 2023. Following the notice of proposed rulemaking from August 2023, the FDIC amended and restated its rule on IDI plans in June 2024.
State Street Bank is also required to submit to the FDIC a plan for resolution in the event of its failure, referred to as an IDI plan. We submitted our last IDI plan, under the prior version of the rule, by December 1, 2023.
In addition, the SEC adopted new rules on July 26, 2023 that require registrants to publicly disclose on a Form 8-K material cybersecurity incidents within four business days of determining that such an incident is material.
Although the CIRCIA originally required the CISA to finalize its regulations by October 4, 2025, the CISA has extended such deadline to May 2026. In addition, the SEC adopted new rules on July 26, 2023 that require registrants to publicly disclose on a Form 8-K material cybersecurity incidents within four business days of determining that such an incident is material.
Many of these changes have occurred as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and its implementing regulations, most of which are now in place, and subsequently the enhancement of the Economic Growth, Regulatory Relief, and Consumer Protection Act.
Many of these changes have occurred as a result of the Dodd-Frank Act and its implementing regulations, most of which are now in place, and subsequently the enhancement of the Economic Growth, Regulatory Relief, and Consumer Protection Act. Developments at the federal banking agencies that regulate banking organizations, including the Federal Reserve, the FDIC and the OCC (the U.S.
This plan includes strategies designed to respond to stress factors at an early stage and stabilize and maintain operational continuity and market confidence. Our recovery strategies are intended to be implemented before our resolution plan is triggered. We are also engaged in recovery planning requirements in certain international jurisdictions where we operate.
Additionally, we are required to submit a recovery plan periodically to the Federal Reserve. This plan includes strategies designed to respond to stress factors at an early stage and stabilize and maintain operational continuity and market confidence. Our recovery strategies are intended to be implemented before our resolution plan is triggered.
As of December 31, 2024, we serviced AUC/A of approximately $46.56 trillion, comprising approximately $33.29 trillion in the Americas, approximately $10.18 trillion in Europe and the Middle East and approximately $3.09 trillion in the Asia-Pacific region.
As of December 31, 2025, we serviced AUC/A of approximately $53.80 trillion, comprising approximately $37.42 trillion in the Americas, approximately $12.92 trillion in Europe and the Middle East and approximately $3.46 trillion in the Asia-Pacific region.
For the quarter ended December 31, 2024, we excluded $87.5 billion of average balances held on deposit at central banks from the denominator used in the calculation of our SLR based on this custodial banking exclusion.
This exclusion is not applicable to total leverage exposure under the calculation of Tier 1 leverage. The rule became effective on April 1, 2020. For the quarter ended December 31, 2025, we excluded $91.5 billion of average balances held on deposit at central banks from the denominator used in the calculation of our SLR based on this custodial banking exclusion.
Method 2 is the binding methodology for us as of December 31, 2024. Our current G-SIB surcharge, through December 31, 2025, is 1.0%.
Method 2 is the binding methodology for us as of December 31, 2025. Our current G-SIB surcharge, through December 31, 2026, is 1.0%. The finalization of the data as of December 31, 2025, which will be used to calculate our G-SIB surcharge through December 31, 2027, is currently pending.
Government regulation of banks and bank holding companies is intended primarily for the protection of depositors of the banks, rather than for the shareholders of the institutions and therefore may, in some cases, be adverse to the interests of those shareholders. We are similarly affected by the economic policies of non-U.S. government agencies, such as the ECB.
Government regulation of banks and bank holding companies is intended primarily for the protection of depositors of the banks, rather than for State Street Corporation | 20 the shareholders of the institutions, and therefore may, in some cases, be adverse to the interests of those shareholders.
We publicly disclose certain qualitative and quantitative information about our NSFR consistent with the semi-annual disclosure requirements of the Federal Reserve’s final rule. Additional information about our NSFR is provided in “Asset Liquidity” in “Liquidity Risk Management” in our Management’s Discussion and Analysis in this Form 10-K.
We publicly disclose certain qualitative and quantitative information about our NSFR consistent with the semi-annual disclosure requirements of the Federal Reserve’s final rule.
We report LCR to the Federal Reserve daily and are required to calculate and maintain an LCR that is equal to or greater than 100%. In addition, we publicly disclose certain qualitative and quantitative information about our LCR consistent with the quarterly disclosure requirements of the Federal Reserve’s final rule.
In addition, we publicly disclose certain qualitative and quantitative information about our LCR consistent with the quarterly disclosure requirements of the Federal Reserve’s final rule. Compliance with the LCR has required that we maintain an investment portfolio that contains an adequate amount of HQLA.
We have implemented an enterprise-wide AML and sanctions compliance program, including policies, procedures and internal controls that are designed to promote compliance with applicable AML laws and regulations and sanctions. AML laws and regulations applicable to our operations may be more stringent than similar requirements applicable to our non-regulated competitors or financial institutions principally operating in other jurisdictions.
AML laws and regulations applicable to our operations may be more stringent than similar requirements applicable to our non-regulated competitors or financial institutions principally operating in other jurisdictions.
However, the timing and content of any potential re-proposal, and the effects of any re-proposal on State Street, remain uncertain at this stage.
While a re‑proposal is currently expected in March 2026, the timing and content of any potential re-proposal, and the effects on us, remain uncertain at this stage.
Many aspects of our businesses are subject to cybersecurity and data privacy legal and regulatory requirements enacted by U.S. federal and state governments and other non-U.S. jurisdictions.
Many aspects of our businesses are subject to cybersecurity and data privacy legal and regulatory requirements enacted by U.S. federal and state governments and other non-U.S. jurisdictions. These requirements impose, among other things, mandatory cybersecurity and data privacy obligations, including providing for resiliency, individual rights, enhanced governance and accountability requirements, and significant fines and litigation risk for noncompliance.
As the digital asset space continues to mature, we are building solutions to service, tokenize and safekeep digital assets. Our vision is to enable core digital asset infrastructure as a trusted provider of end-to-end solutions on a secure, interoperable blockchain.
As the digital asset space continues to mature, we continue to build solutions to tokenize assets. Our vision is to deliver digital asset solutions to our clients as a trusted provider of end-to-end capabilities across the asset servicing lifecycle on a secure, interoperable platform with multiple blockchain connectivity.
The Tier 1 leverage ratio differs from the SLR primarily in that the denominator of the Tier 1 leverage ratio is a quarterly average of on-balance sheet assets, while the SLR additionally includes off-balance sheet exposures. We must maintain a minimum Tier 1 leverage ratio of 4%.
The Tier 1 leverage ratio is based on Tier 1 capital and adjusted quarterly average on-balance sheet assets. The SLR is based on total leverage exposure and, includes certain off-balance sheet exposures not used in the calculation of the minimum Tier 1 leverage ratio. We must maintain a minimum Tier 1 leverage ratio of 4%. As a U.S.
If we do not maintain this buffer, limitations on these distributions and discretionary bonus payments would be increasingly stringent based upon the extent of the shortfall. State Street Corporation | 11 Under a final rule adopted by the U.S.
If we do not maintain the 2% buffer at the holding company, limitations on these distributions and discretionary bonus payments would be increasingly stringent based upon the extent of the shortfall. On November 25, 2025, the U.S. Agencies jointly adopted a final rule (eSLR Final Rule) amending the calibration of the eSLR for U.S. G-SIBs and their IDI subsidiaries.
The Board of Directors’ Human Resources Committee oversees our human capital management strategy and receives regular updates on matters such as engagement, culture, talent management, retention and productivity. We aim to promote strong levels of employee commitment and connection to the company by providing an environment that supports our diverse employee population in amplifying behaviors that drive our business strategy.
We aim to promote strong levels of employee commitment and connection to the company by providing an environment that supports our diverse State Street Corporation | 8 employee population in amplifying behaviors that drive our business strategy.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIn addition, changes in key personnel at the agencies that regulate such banking organizations, including the federal banking agencies, may result in differing interpretations of existing rules and guidelines and potentially different enforcement priorities than previously. The potential impact of any changes in agency personnel, policies, priorities and interpretations on the financial services sector, including us, cannot be predicted.
Biggest changeSuch changes have impacted and are likely to continue to impact the rulemaking, supervision, examination and enforcement priorities and policies of the agencies. In addition, changes in key personnel at the agencies that regulate such banking organizations, including the federal banking agencies, may result in differing interpretations of existing rules and guidelines and potentially different enforcement priorities than previously.
The results of the supervisory stress testing process are difficult to predict due, among other things, to the Federal Reserve’s use of proprietary stress models that differ from our internal models. The results of the Federal Reserve’s supervisory stress tests may result in an increase in our SCB requirement.
The results of the supervisory stress testing process are difficult to predict due to, among other things, the Federal Reserve’s use of proprietary stress models that differ from our internal models. The results of the Federal Reserve’s supervisory stress tests may result in an increase in our SCB requirement.
We may be required to expend significant additional resources to investigate or remediate vulnerabilities or other exposures arising from cybersecurity threats.
We may be required to expend significant additional resources to investigate or remediate vulnerabilities or other exposures arising from cybersecurity threats.
Furthermore, fiduciary, anti-competitive, voting power, governance, and other concerns with ESG investment strategies, as well as corporate sustainability and diversity, equity and inclusion practices and programs, continue to be the subject of legislative, regulatory and administrative debate globally, particularly at the federal and state level in the United States, the outcomes of which could impact both our asset management business and the clients that we service, as well as, our investment servicing activities more broadly and our corporate activities, practices and programs.
Furthermore, fiduciary, anti-competitive, voting power, governance, and other concerns with ESG investment strategies, as well as corporate sustainability and diversity, equity and inclusion practices and programs, continue to be the subject of legislative, regulatory and administrative debate globally, particularly at the federal and state level in the United States, the outcomes of which could impact both our investment management business and the clients that we service, as well as our investment servicing activities more broadly and our corporate activities, practices and programs.
New products and services, such as State Street Alpha and those related to wealth servicing, alternative investment management or digital assets or incorporating artificial intelligence, often also involve dependencies on third parties to, among other things, access innovative technologies, develop new distribution channels or form collaborative product and service offerings, and can require complex strategic alliances and joint venture relationships.
New products and services, such as State Street Alpha and those related to wealth servicing, alternative investment management or digital assets or incorporating artificial intelligence, often also involve dependencies on third parties to, among other things, access or support innovative technologies, develop new distribution channels or form collaborative product and service offerings, and can require complex strategic alliances and joint venture relationships.
Recent, proposed or potential regulations in the United States and European Union with respect to the supervision of digital assets and of climate and environmental risks, short-term wholesale funding, such as repurchase agreements or securities lending, or other non-bank finance activities, could also adversely affect not only our own operations but also the operations of the clients to which we provide services.
Recent, proposed or potential regulations in the United States, the United Kingdom and the European Union with respect to the supervision of digital assets and of climate and environmental risks, short-term wholesale funding, such as repurchase agreements or securities lending, or other non-bank finance activities, could also adversely affect not only our own operations but also the operations of the clients to which we provide services.
Given evolving requirements and the associated standards, methodologies, processes, and controls related to sustainability- and ESG-related disclosures which may impact State Street or its clients, diverging requirements across jurisdictions, and distinct definitions and standards for materiality which could result in conflicting disclosures across frameworks, we may make incorrect or incomplete or fail to make required disclosures which may result in regulatory or reputational consequences or which may directly or indirectly impact our ability to attract and retain clients.
Given evolving requirements and the associated standards, methodologies, processes, and controls related to sustainability- and ESG-related disclosures which may impact State Street or its clients, diverging requirements across jurisdictions, and distinct definitions and standards for materiality which could result in conflicting disclosures across frameworks, we may fail to make, or make incorrect or incomplete, disclosures which may result in regulatory or reputational consequences or which may directly or indirectly impact our ability to attract and retain clients.
Any such client losses, reductions or renegotiations likely will reduce the expected benefits of the acquisition, including revenues, cross-selling opportunities and market share, cause impairment to goodwill and other intangibles or result in reputational harm, which effects could be material, and we may not have recourse against the seller of the business or the client.
Any such client losses, reductions or renegotiations likely will reduce the expected benefits of the acquisition, including revenues, cross-selling opportunities and market share, cause impairment of goodwill and other intangibles or result in reputational harm, which effects could be material, and we may not have recourse against the seller of the business or the client.
In addition, we are subject to increasing resiliency risk and client and regulatory expectations, requiring continuous reinvestment, enhancement and improvement in and of our information technology and operational infrastructure, controls and personnel which may not be effectively or timely deployed or integrated. Moreover, the financial and reputational impact of control or conduct failures can be significant.
In addition, we are subject to increasing resiliency risk and client and regulatory expectations, requiring continuous reinvestment, enhancement and improvement in and of our information technology and operational infrastructure, controls, security and personnel which may not be effectively or timely deployed or integrated. Moreover, the financial and reputational impact of control or conduct failures can be significant.
In addition, new market entrants and competitors may address or influence changes in the markets more rapidly than we do, may have materially greater resources to invest in infrastructure and product development than we do, or may provide clients with a more attractive or cost-efficient offering of products and services, adversely affecting our business.
In addition, new market entrants and competitors may address or influence changes in the markets more rapidly than we do, may have materially greater resources to invest in infrastructure, technology and product development than we do, or may provide clients with a more attractive or cost-efficient offering of products and services, adversely affecting our business.
Additional attention or publicity associated with our asset management business due to this debate may result in additional scrutiny of, and litigation or regulatory enforcement regarding, those or other of our asset management activities or our corporate, Investment Servicing or other activities, practices or programs. We expect that our business will remain subject to extensive regulation and supervision.
Additional attention or publicity associated with our investment management business due to this debate may result in additional scrutiny of, and litigation or regulatory enforcement regarding, those or other of our investment management activities or our corporate, investment servicing or other activities, practices or programs. We expect that our business will remain subject to extensive regulation and supervision.
Similarly, many of our clients are subject to significant regulatory requirements and retain our services in order for us to assist them in complying with those legal requirements. Changes in these regulations can significantly affect the services that we are asked to provide, as well as our costs.
Similarly, many of our clients are subject to significant regulatory requirements and retain our services in order for us to assist them in complying with those requirements. Changes in these regulations can significantly affect the services that we are asked to provide, as well as our costs.
For clients and fund investors who want an investment solution that purposefully takes into consideration sustainability or ESG factors, we offer investment funds and strategies that consider sustainability or ESG factors as a material component of the investment strategy or index methodology.
For clients and fund investors who want an investment solution that purposefully takes into consideration sustainability or ESG factors, we offer investment funds and strategies that consider sustainability or ESG factors as a component of the investment strategy or index methodology.
Further, our global operating model requires that we comply with information security, resiliency and outsourcing oversight requirements, including with respect to affiliated entities, of multiple jurisdictions and enable our clients to comply with information security, resiliency and outsourcing oversight requirements imposed upon them.
Further, our global operating model requires that we comply with information security, resiliency and outsourcing oversight requirements, including with respect to affiliated entities, of multiple jurisdictions and enable our clients to comply with information security, resiliency, privacy and outsourcing oversight requirements imposed upon them.
Our interpretations or application of tax laws and regulations, including with respect to withholding, transfer, wage, sales, use, stamp, value added, service and other non-income taxes, could differ from that of the relevant governmental taxing authority, or we may experience State Street Corporation | 41 timing or other compliance deficiencies in connection with our efforts to comply with applicable tax laws and regulations, which could result in the requirement to pay additional taxes, penalties and/or interest, which could be material.
Our interpretations or application of tax laws and regulations, including with respect to withholding, transfer, wage, sales, use, stamp, value added, service and other non-income State Street Corporation | 42 taxes, could differ from that of the relevant governmental taxing authority, or we may experience timing or other compliance deficiencies in connection with our efforts to comply with applicable tax laws and regulations, which could result in the requirement to pay additional taxes, penalties and/or interest, which could be material.
The introduction of new products and services can require significant time and resources, including regulatory approvals and the development and implementation of technical data management, control and model validation requirements and effective security and resiliency elements.
The introduction of new products and services can require significant time and resources, including regulatory approvals and the development and implementation of technical data management, governance, control and model validation requirements and effective security and resiliency elements.
Were conditions, or our evaluation of conditions, in those or other markets to worsen in 2025 or subsequent years, we could experience similar or more significant effects during those periods. • 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.
Were conditions, or our evaluation of conditions, in those or other markets to worsen in 2026 or subsequent years, we could experience similar or more significant effects during those periods. • 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.
In the course of our business, we are frequently subject to various regulatory, governmental and law enforcement inquiries, investigative demands and subpoenas, and from time to time, our clients, or the government on its own behalf or on behalf of our State Street Corporation | 38 clients or others, make claims and take legal action relating to, among other things, our performance of our fiduciary, contractual, legal or regulatory responsibilities.
In the course of our business, we are frequently subject to various regulatory, governmental and law enforcement inquiries, investigative demands and subpoenas, and from time to time, our clients, or the government on its own behalf or on behalf of our clients or others, make claims and take legal action relating to, among other things, our performance of our fiduciary, contractual, legal or regulatory State Street Corporation | 39 responsibilities.
These risks include negative market perception, diminished sales effectiveness and regulatory and litigation consequences associated with “greenwashing” claims or driven by association with clients, industries or products that may be inconsistent with our stated positions on climate change issues. Disclosure requirements and expectations related to sustainability or ESG are increasing, evolving and may diverge across jurisdictions.
These risks may include negative market perception, diminished sales effectiveness, and reputational, regulatory and litigation consequences associated with “greenwashing” claims or driven by association with clients, industries or products that may be inconsistent with our stated positions on climate change issues. Disclosure requirements and expectations related to sustainability or ESG are evolving and may diverge across jurisdictions.
Through resolution planning, we seek, in the event of insolvency, to maintain State Street Bank’s role as a key infrastructure provider within the financial system, while minimizing risk to the financial system and maximizing value for the benefit of our stakeholders. Significant management attention and resources are devoted in an effort to meet regulatory expectations with respect to resolution planning.
Through resolution planning, we seek, in the event of insolvency, to maintain State Street Bank’s role as a key service provider within the financial system, while minimizing risk to the financial system and maximizing value for the benefit of our stakeholders. Significant management attention and resources are devoted in an effort to meet regulatory expectations with respect to resolution planning.
Large institutional clients also, by their nature, are often able to exert considerable market influence, and this, combined with strong competitive forces in the markets for our services, has resulted in, and may continue to result in, significant pressure to reduce the fees we charge for our services in both our asset servicing and asset management lines of business.
Large institutional clients also, by their nature, are often able to exert considerable market influence, and this, combined with strong competitive forces in the markets for our services, has resulted in, and may continue to result in, significant pressure to reduce the fees we charge for our services in both our investment servicing and investment management lines of business.
State law and/or political pressure may also prevent governmental clients from using service providers, such as us, either as asset manager or investment servicer, if the legislators or governmental officials in such jurisdictions believe our sustainability- or ESG-related practices are not consistent with requirements under state law or the views of such legislators or officials.
U.S. state law and/or political pressure may also prevent governmental clients from using service providers, such as us, either as asset manager or investment servicer, if the legislators or governmental officials in such jurisdictions believe our sustainability- or ESG-related practices are not consistent with requirements under state law or the views of such legislators or officials.
These financial institutions also include collective investment funds, such as mutual funds, UCITS and hedge funds that share these interdependencies. Many financial institutions, including collective investment funds, also hold, or are exposed to, loans, sovereign debt, fixed-income securities, derivatives, counterparty and other forms of credit risk in amounts that are material to their financial condition.
These financial institutions also include collective investment funds, such as mutual funds, UCITS, private market funds and hedge funds that share these interdependencies. Many financial institutions, including collective investment funds, also hold, or are exposed to, loans, sovereign debt, fixed-income securities, derivatives, counterparty and other forms of credit risk in amounts that are material to their financial condition.
Where clients have delegated to us authority to vote securities on their behalf at shareholder meetings of the public companies held in their investment portfolios, we may also take into consideration sustainability or ESG issues that we believe are relevant to the long-term performance of the companies in which our clients invest.
Where clients have delegated to us authority to vote securities on their behalf at shareholder meetings of the public companies held in their investment portfolios, we take into consideration issues that we believe are relevant to the long-term performance of the companies in which our clients invest which may include, where relevant, sustainability or ESG issues.
Our ability to continue to attract these deposits, and other short-term funding sources such as certificates of deposit, is subject to variability based on a number of factors, including volume and volatility in global financial markets, the volume of client settlement related activities, the interest rates that we are prepared to pay for these deposits, the loss or gain of one or more clients, client interest in reducing non-interest-bearing deposits, the perception of safety of these deposits or short-term obligations relative to alternative short-term investments available to our clients, including the capital markets, and the classification of certain deposits for regulatory purposes and related discussions we may have from time to time with clients regarding better balancing our clients’ cash management needs with our economic and regulatory objectives.
Our ability to continue to attract these deposits, and other short-term funding sources such as certificates of deposit, is subject to variability based on a number of factors, including volume and volatility in global financial markets, the volume of client settlement-related activities, the interest rates that we are prepared to pay for these deposits, the loss or gain of one or more clients, client interest in reducing non-interest-bearing deposits, the perception of safety of these deposits or short-term State Street Corporation | 32 obligations relative to alternative short-term investments available to our clients, including the capital markets, and the classification of certain deposits for regulatory purposes and related discussions we may have from time to time with clients regarding better balancing our clients’ cash management needs with our economic and regulatory objectives.
Given the volume and magnitude of transactions we process on a daily basis, and our overall AUCA and AUM, operational losses represent a potentially significant financial risk for our business. Operational errors that result in us remitting funds to a failing or bankrupt entity may be irreversible, and may subject us to losses.
Given the volume and magnitude of transactions we process on a daily basis, and our overall AUC/A and AUM, operational losses represent a potentially significant financial risk for our business. Operational errors that result in us remitting funds to a failing or bankrupt entity may be irreversible, and may subject us to losses.
The failure to maintain an adequate technology infrastructure and applications with effective cybersecurity controls could impact operations, adversely affect our financial results, result in loss of business, damage our reputation or impact our ability to comply with State Street Corporation | 42 regulatory obligations, leading to regulatory fines and sanctions.
The failure to maintain an adequate technology infrastructure and applications with effective cybersecurity controls could impact operations, adversely affect our financial results, result in loss of business, damage our reputation or State Street Corporation | 43 impact our ability to comply with regulatory obligations, leading to regulatory fines and sanctions.
Climate change may increase the frequency and severity of major weather events and the ongoing transition to a low carbon economy may drive regulatory and business model change that could adversely affect our business operations and resiliency, our clients, our counterparties or other financial market participants and could adversely affect our consolidated results of operations and financial condition.
Climate change may increase the frequency and severity of major weather events, and measures to transition to a low carbon economy may drive regulatory and business model change that could adversely affect our business operations and resiliency, our clients, our counterparties or other financial market participants and could adversely affect our consolidated results of operations and financial condition.
The full effects of these rules, and of other regulatory initiatives related to capital or liquidity, on us and State Street Bank are subject to further regulatory guidance, action or rule-making. In implementing various aspects of these capital and liquidity regulations, we are making interpretations of the regulatory intent.
The full effects of these rules, and of other regulatory initiatives related to capital or liquidity, on us and State Street Bank are subject to further regulatory guidance, action or rule-making. In implementing various aspects of these capital and liquidity regulations, we are making State Street Corporation | 35 interpretations of the regulatory intent.
Substantial risks and uncertainties are associated with the introduction of new products and services, strategic alliances and joint ventures, including rapid technological change in the industry, our ability to access and use technical, data and other information from our clients, significant and ongoing investments required to bring new products and services to market in a timely manner at competitive prices, sharing of benefits in those relationships, conflicts with existing business partners and clients, understanding third party rights, delineating ownership and exit rights, protection of intellectual property and other confidential information, competition for employees with the necessary expertise and experience, and maintaining sales and other materials that fully and accurately describe the product or service and its underlying risks and are compliant with applicable regulations.
Substantial risks and uncertainties are associated with the introduction of new products and services, strategic alliances and joint ventures, including rapid technological change in the industry, our ability to access and use technical, data and other information from our clients or other parties, significant and ongoing investments required to bring new products and services to market in a timely manner at competitive prices, sharing of benefits in those relationships, conflicts with existing business partners State Street Corporation | 22 and clients, understanding third party rights, delineating ownership and exit rights, protection of intellectual property and other confidential information, competition for employees with the necessary expertise and experience, and maintaining sales and other materials that fully and accurately describe the product or service and its underlying risks and are compliant with applicable regulations.
In both our asset servicing and asset management businesses, we endeavor to attract institutional investors controlling large and diverse pools of assets, as those clients typically have the opportunity to benefit from the full range of our expertise and service offerings.
In both our investment servicing and investment management businesses, we endeavor to attract institutional investors controlling large and diverse pools of assets, as those clients typically have the opportunity to benefit from the full range of our expertise and service offerings.
As a result of our own business practices and these interdependencies, we and many of our clients have concentrated counterparty exposure to other financial institutions and collective investment funds, particularly large and complex institutions, sovereign issuers, mutual funds, UCITS and hedge funds.
As a result of our own business practices and these interdependencies, we and many of our clients have concentrated counterparty exposure to other financial institutions and collective investment funds, particularly large and complex institutions, sovereign issuers, mutual funds, UCITS, private market funds and hedge funds.
Regulatory Requirements The breadth of our business activities, together with the scope of our global operations and varying business practices in relevant jurisdictions, increase the complexity and costs of meeting our regulatory compliance obligations, including in areas that are receiving significant regulatory scrutiny.
Regulatory Requirements The breadth of our business activities, together with the scope of our global operations and varying business practices in relevant jurisdictions, increase the complexity and costs of meeting our regulatory compliance obligations in each of those jurisdictions, including in areas that are receiving significant regulatory scrutiny.
In the normal course of business, we manage various types of sponsored investment funds through State Street Global Advisors. The services we provide to these sponsored investment funds generate management fee revenue, as well as servicing fees from our other businesses.
In the normal course of business, we manage various types of sponsored investment funds through State Street Investment Management. The services we provide to these sponsored investment funds generate management fee revenue, as well as servicing fees from our other businesses.
Though potentially not material individually (relative to any one such counterparty), our credit exposures to such a group of counterparties could expose us to a single market or political event or a correlated set of events that, in the aggregate, could have a material adverse impact on our business. • Subcustodian risks: With the exception of the United States, Canada, Germany and the United Kingdom, we maintain subcustodian relationships in all jurisdictions in which our clients invest, including emerging and other underdeveloped markets, and markets subject to sanctions.
Though potentially not material individually (relative to any one such counterparty), our credit exposures to such a group of counterparties could expose us to a single market or political event or a correlated set of events that, in the aggregate, could have a material adverse impact on our business. • Subcustodian risks: With the exception of the United States, Canada, Germany and the United Kingdom, we maintain subcustodian State Street Corporation | 28 relationships in all jurisdictions in which our clients invest, including emerging and other underdeveloped markets, and markets subject to sanctions.
Certain U.S. officials have suggested that sustainability- or ESG-related investing practices, including memberships in certain climate-oriented investor groups, may result in violations of law – including antitrust laws – and breaches of fiduciary duty.
Certain U.S. state and federal officials have suggested that sustainability- or ESG-related investing practices, including memberships in certain climate-oriented investor groups, may result in violations of law – including antitrust laws – and breaches of fiduciary duty.
These consequences, including a reduction in asset values affecting the levels of our AUC/A or AUM and repricing of credit risk of our counterparties or reflected in our portfolio assets, could materially adversely affect our results of operations or financial condition.
These consequences, including a potential reduction in asset values affecting the levels of our AUC/A or AUM and repricing of credit risk of our counterparties or reflected in our portfolio assets, could adversely affect our results of operations or financial condition.
Acts of terrorism, natural disasters and pandemics could also negatively affect our clients, counterparties and service providers, as well as result in disruptions in general economic activity and the financial markets. State Street Corporation | 49
Acts of terrorism, natural disasters and pandemics could also negatively affect our clients, counterparties and service providers, as well as result in disruptions in general economic activity and the financial markets. State Street Corporation | 51
Similarly, governmental actions and reputational issues in our transition management business in the United Kingdom have adversely affected our transition management revenue and, with criminal convictions or guilty pleas of three of our former employees in 2018 and the deferred prosecution agreement we entered into in early 2017 and the related SEC settlement, these effects have the potential to continue.
For example, governmental actions and reputational issues in our transition management business in the United Kingdom have adversely affected our transition management revenue and, with criminal convictions or guilty pleas of three of our former employees in 2018 and the deferred prosecution agreement we entered into in early 2017 and the related SEC settlement, these effects have the potential to continue.
Our reputation and business prospects may also be damaged if we do not, or are perceived not to, effectively prepare for the potential business and operational opportunities and risks associated with climate change, including through the development and marketing of effective and competitive new products and services designed to address our clients’ climate risk-related needs.
Our reputation and business prospects may also be damaged if we do not, or are perceived not to, effectively prepare for the potential business and operational opportunities and risks associated with a climate transition, including through the development and marketing of effective and competitive new products and services designed to address our clients’ climate risk or transition-related needs.
In view of the inherent difficulty of predicting the outcome of legal and regulatory matters, we cannot provide assurance as to the outcome of any pending or potential matter or, if determined adversely against us, the costs associated with any such matter, particularly where the claimant seeks very large or State Street Corporation | 39 indeterminate damages or where the matter presents novel legal theories, involves a large number of parties, involves the discretion of governmental authorities in seeking sanctions or negotiated resolution or is at a preliminary stage.
In view of the inherent difficulty of predicting the outcome of legal and regulatory matters, we cannot provide assurance as to the outcome of any pending or potential matter or, if determined adversely against us, the costs associated with any such matter, particularly where the claimant seeks very large or indeterminate damages or where the matter presents novel legal theories, involves a large number of parties, involves the discretion of governmental authorities in seeking sanctions or negotiated resolution or is at a preliminary stage.
Our failure to manage these risks and uncertainties also exposes us to enhanced risk of operational lapses and third party claims, which may result in the recognition of financial statement liabilities.
Our failure to manage these risks and uncertainties also exposes us to enhanced risk of operational lapses, regulatory noncompliance and third party claims, which may result in the recognition of financial statement liabilities.
The portfolio consists of capital call lines of credit, the repayment of which is dependent on the receipt of capital calls from the underlying limited partner investors in the funds managed by these firms. • 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 contingent liquidity risk. • Leveraged loans: We invest in leveraged loans, both in the United States and in Europe.
The portfolio consists of capital call lines of credit, the repayment of which is dependent on the receipt of capital calls from the underlying limited partner investors in the funds managed by these firms. • 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 State Street Corporation | 30 issuing such bonds and contingent liquidity risk. • Leveraged loans: We invest in leveraged loans, both in the United States and in Europe.
The third parties with which we do business, which facilitate our business activities, to whom we outsource operations or other activities, from whom we receive products or services or with whom we otherwise engage or interact, including financial intermediaries and technology infrastructure and service providers, are also susceptible to the foregoing risks (including the third parties with which they are similarly interconnected or on which they otherwise rely), and our or their business operations and activities have been and may in the future be adversely affected, perhaps materially, by failures, terminations, errors or malfeasance by, or attacks or constraints on, one or more financial, technology, infrastructure or government institutions or intermediaries with whom we or they are interconnected or conduct business.
The third parties with which we do business, which facilitate our business activities, to whom we outsource operations or other activities, from whom we receive products or services or with whom we otherwise engage or interact, including financial intermediaries, and technology infrastructure and technology service providers, such as cloud services and software-as-a-service providers, are also susceptible to the foregoing risks (including the third parties with which they are similarly interconnected or on which they otherwise rely), and our or their business operations and activities have been and may in the future be adversely affected, perhaps materially, by failures, terminations, errors or malfeasance by, or attacks or constraints on, one or more financial, technology, infrastructure or government institutions or intermediaries with whom we or they are interconnected or conduct business.
State Street Corporation | 21 Similarly, if one or more clients change the asset class in which a significant portion of assets are invested (e.g., by shifting investments from emerging markets to the United States), those changes could have a significant effect on our results of operations in the relevant period, as our fee rates often change based on the type of asset classes we are servicing or managing.
Similarly, if one or more clients change the asset class in which a significant portion of assets are invested (e.g., by shifting investments from emerging markets to the United States), those changes could have a significant effect on our results of operations in the relevant period, as our fee rates often change based on the type of asset classes we are servicing or managing.
If clients demand a return of their cash or assets, State Street Corporation | 32 particularly on limited notice, and these investment pools do not have the liquidity to support those demands, we could be forced to sell investment securities held by these asset pools at unfavorable prices, damaging our reputation as a service provider and potentially exposing us to claims related to our management of the pools.
If clients demand a return of their cash or assets, particularly on limited notice, and these investment pools do not have the liquidity to support those demands, we could be forced to sell investment securities held by these asset pools at unfavorable prices, damaging our reputation as a service provider and potentially exposing us to claims related to our management of the pools.
We are unable to predict what, if any, changes to the regulatory environment may be enacted by Congress, both chambers of which will have a majority from the same political party, or the new presidential administration and what the impact of any such changes will be on our results of operations or financial condition, including increased expenses or changes in the demand for our services or our ability to engage in transactions, to expand our business or operate in non-United States jurisdictions, or on the U.S.-domestic or global economies or financial markets.
We are unable to predict what, if any, changes to the regulatory environment may be enacted by Congress, both chambers of which have majority control from the same political party, or the presidential administration and what the impact of any such changes will be on our results of operations or financial condition, including increased expenses or changes in the demand for our services or our ability to engage in transactions, to expand our business or operate in non-U.S. jurisdictions, or on the U.S.-domestic or global economies or financial markets.
Our geographic footprint also exposes us to the relevant macroeconomic, political, legal and similar risks generally involved in doing business in the jurisdictions in which we establish lower-cost State Street Corporation | 45 locations or joint ventures or in which our outsourcing vendors locate their operations, particularly in locations where we have a concentration of our operational activities, such as India, Poland and China.
Our geographic footprint also exposes us to the relevant macroeconomic, political, legal and similar risks generally involved in doing business in the jurisdictions in which we establish lower-cost locations or joint ventures or in which our outsourcing vendors locate their operations, particularly in locations where we have a concentration of our operational activities, such as India, Poland and China.
We undertake transactions of varying sizes to, among other reasons, gain advantages of scale, expand our geographic footprint, access new clients, distribution channels, technologies or services, enhance our operating model, expand or enhance our product offerings, develop closer or more collaborative State Street Corporation | 22 relationships with our business partners, efficiently deploy capital or leverage cost savings or other business or financial opportunities.
We undertake transactions of varying sizes to, among other reasons, gain advantages of scale, expand our geographic footprint, access new clients, distribution channels, technologies or services, enhance our operating model, expand or enhance our product offerings, develop closer or more collaborative relationships with our business partners, efficiently deploy capital or leverage cost savings or other business or financial opportunities.
This credit exposure to these financial institutions or subcustodians can limit the financial relationship we may have with these counterparties and has in the past made, and may in the future make, compliance with specific U.S. regulatory single counterparty credit limits (SCCL) more challenging.
This credit exposure to these financial institutions or subcustodians can limit the financial relationship we may have with these counterparties and has in the past made, and may in the future make, compliance with specific U.S. regulatory SCCL more challenging.
In particular, non-U.S. regulations and initiatives that may be inconsistent or conflict with current or proposed regulations in the United States could create increased compliance and other costs that would adversely affect our business, operations or profitability. Geopolitical events also have the potential to increase the complexity and cost of regulatory compliance.
In particular, non-U.S. regulations and initiatives that may be inconsistent or conflict with current or State Street Corporation | 38 proposed regulations in the United States could create increased compliance and other costs that would adversely affect our business, operations or profitability. Geopolitical events also have the potential to increase the complexity and cost of regulatory compliance.
As a general matter, large index fund providers, such as State Street Global Advisors, have been and are expected to continue to be subject to legislative and regulatory proposals, litigation or investigations from both sides of the political spectrum due to a perception that they exert inappropriate influence over publicly traded companies.
As a general matter, large index fund providers, such as State Street Investment Management, have been and are expected to continue to be subject to legislative and regulatory proposals, litigation or investigations from both sides of the political spectrum due to a perception that they exert inappropriate influence over publicly traded companies.
Our tax exposure may also be impacted by tax positions taken by our clients and counterparties. Our businesses may be negatively affected by adverse publicity or other reputational harm.
Our tax exposure may also be impacted by tax positions taken by our clients and counterparties and by tax positions taken by businesses we acquire. Our businesses may be negatively affected by adverse publicity or other reputational harm.
If investors incur substantial investment losses in these pools, receive redemptions as in-kind distributions rather than in cash, or experience significant under-performance relative to the market or our competitors’ products, our reputation could be significantly harmed, which harm could significantly and adversely affect the prospects of our associated business units.
If investors incur substantial investment losses in these pools, receive redemptions as in-kind distributions rather than in cash, or experience significant under- State Street Corporation | 48 performance relative to the market or our competitors’ products, our reputation could be significantly harmed, which harm could significantly and adversely affect the prospects of our associated business units.
When we record balance sheet accruals for probable and estimable loss contingencies related to operational losses, we may be unable to accurately estimate our potential exposure, and any accruals we establish to cover operational losses may not be sufficient to cover our actual financial exposure, which could have a material adverse effect on our consolidated results of operations.
State Street Corporation | 46 When we record balance sheet accruals for probable and estimable loss contingencies related to operational losses, we may be unable to accurately estimate our potential exposure, and any accruals we establish to cover operational losses may not be sufficient to cover our actual financial exposure, which could have a material adverse effect on our consolidated results of operations.
Acts of terrorism, natural disasters or the emergence of a new pandemic could significantly affect our business. We have instituted disaster recovery and continuity plans to address risks from terrorism, natural disasters and pandemics; however, anticipating or addressing all potential contingencies is not possible for events of this nature.
Acts of terrorism, natural disasters or the emergence of a new pandemic could significantly affect our business. We have instituted disaster recovery and continuity plans to address risks from State Street Corporation | 50 terrorism, natural disasters and pandemics; however, anticipating or addressing all potential contingencies is not possible for events of this nature.
Failing to properly respond to and invest in changes and advancements in technology can limit our ability to attract and retain clients, prevent us from offering similar products and services as those offered by our competitors, impair our ability to maintain continuous operations, inhibit our ability to meet regulatory requirements and subject us to regulatory inquiries, the result of which could be State Street Corporation | 43 significant costs or limitations on our business activities.
Failing to properly respond to and invest in changes and advancements in technology can limit our ability to attract and retain clients, prevent us from offering similar products and services as those offered by our competitors, impair our ability to maintain continuous operations, inhibit our ability to meet regulatory requirements and subject us to regulatory inquiries, the result of which could be significant costs and penalties or limitations on our business activities.
However, our ability to access the capital markets, if needed, on a timely basis or at all will depend on a number of factors, such as the state of the financial markets and securities law requirements and standards.
However, our ability to access the capital markets, if needed, on a timely basis or at all will depend on a number of factors, such as the state of State Street Corporation | 33 the financial markets and securities law requirements and standards.
For additional information on these requirements, including the 2023 G-SIB Surcharge Proposal, refer to the “Regulatory Capital Adequacy and Liquidity Standards” section under “Supervision and Regulation” in Business in this Form 10-K.
For additional information on these requirements, including the 2023 G-SIB Surcharge Proposal and the eSLR Final Rule, refer to the “Regulatory Capital Adequacy and Liquidity Standards” section under “Supervision and Regulation” in Business in this Form 10-K.
For additional information about the effects on interest rates on our business, refer to the Market Risk Management section, “Asset and Liability Management Activities” in our Management’s Discussion and Analysis in this Form 10-K. We assume significant credit risk of counterparties, many of which are major financial institutions.
For additional information about the effects on interest rates on our business, refer to the Market Risk Management section, “Asset and Liability State Street Corporation | 27 Management Activities” in our Management’s Discussion and Analysis in this Form 10-K. We assume significant credit risk of counterparties, many of which are major financial institutions.
Banking regulators could change the Basel III rule or their interpretations as they apply to us, including changes to these standards or interpretations made in regulations implementing provisions of the Dodd-Frank Act, which could adversely affect us and our ability to comply with the Basel III rule. For example, in July 2023, the U.S.
Banking regulators could change the Basel III rule or their interpretations as they apply to us, including changes to these standards or interpretations made in regulations implementing provisions of the Dodd-Frank Act, which could adversely affect us and our ability to comply with the Basel III rule. On July 27, 2023, the U.S.
The expectations of our clients and regulators with respect to the resiliency of our systems and the adequacy of our control environment with respect to such systems has and is expected to increase as the risk of cyber-attacks, which is presently elevated due to the current geopolitical environment and global human capital footprint at State Street, and the consequences of those attacks become more pronounced.
The expectations of our clients and regulators with respect to the resiliency of our systems and the adequacy of our control environment with respect to such systems have increased and are expected to increase as the risk of cyber-attacks, which is presently elevated due to the current geopolitical environment and global human capital footprint at State Street, and the consequences of those attacks become more pronounced.
The quantitative models we use to manage our business may contain errors that result in inadequate risk assessments, inaccurate valuations or poor business and risk management decisions, and lapses in disclosure controls and procedures or internal control over financial reporting could occur, any of which could result in material harm.
State Street Corporation | 47 The quantitative models we use to manage our business may contain errors that result in inadequate risk assessments, inaccurate valuations or poor business and risk management decisions, and lapses in disclosure controls and procedures or internal control over financial reporting could occur, any of which could result in material harm.
We have also experienced, and anticipate that we will continue to experience, significant pricing pressure in many of our core businesses, particularly our custodial and investment management services. This pricing pressure has and may continue to impact our revenue growth and operational margins and may limit the positive impact of new client demand and growth in AUC/A.
We have also experienced, and anticipate that we will continue to experience, significant pricing pressure in many of our core businesses, particularly our custodial and investment management services. This pricing pressure has and may continue to impact our revenue growth and operating margins and may limit the positive impact of new client demand and growth in AUC/A or AUM.
Third parties may also attempt to place individuals within State Street or fraudulently induce employees, vendors, clients or other users of our systems to disclose sensitive information in order to gain access to our systems or data or that of our clients or other parties.
Threat actors may also attempt to place individuals within State Street or fraudulently induce employees, vendors, clients or other users of our systems to disclose sensitive information in order to gain access to our systems or data or that of our clients or other parties.
Because of our widespread usage of models, potential weaknesses in our model risk management practices pose an ongoing risk to us. We also use quantitative models in our risk measurement and may fail to accurately quantify the magnitude of the risks we face. Our measurement methodologies rely on many assumptions and State Street Corporation | 46 historical analyses and correlations.
Because of our widespread usage of models, potential weaknesses in our model risk management practices pose an ongoing risk to us. We also use quantitative models in our risk measurement and may fail to accurately quantify the magnitude of the risks we face. Our measurement methodologies rely on many assumptions and historical analyses and correlations.
We are subject to variability in our assets under custody and/or administration and assets under management, and in our financial results, due to the significant size of our relationship with many of our institutional clients, and are also subject to significant pricing pressure due to trends in the market for custodial services and the considerable market influence exerted by those clients.
We are subject to variability in our assets under custody and/or administration and assets under State Street Corporation | 21 management, and in our financial results, due to the significant size of our relationship with many of our institutional clients, and are also subject to significant pricing pressure due to trends in the market for custodial services and the considerable market influence exerted by those clients.
These financial institutions and other counterparties may also have substantial financial dependencies with other financial institutions and sovereign entities. These credit exposures and concentrations could expose us to financial loss. State Street Corporation | 27 The financial markets are characterized by extensive interdependencies among numerous parties, including banks, central banks, broker/dealers, insurance companies and other financial institutions.
These financial institutions and other counterparties may also have substantial financial dependencies with other financial institutions and sovereign entities. These credit exposures and concentrations could expose us to financial loss. The financial markets are characterized by extensive interdependencies among numerous parties, including banks, central banks, broker/dealers, insurance companies and other financial institutions.
Our sustainability- or ESG-related investment management practices and historical memberships in certain climate-oriented investor groups have recently become the subject of significant scrutiny by regulatory agencies and government officials.
Our sustainability- or ESG-related investment management practices, asset stewardship and historical memberships in certain climate-oriented investor groups have become the subject of significant scrutiny by regulatory agencies and government officials.
As a result, we may not achieve some or all of the anticipated cost savings, process improvement, compliance or other benefits and may experience unanticipated challenges from clients, regulators or other parties or reputational harm.
As a result of the above, we may not achieve some or all of the anticipated cost savings, process improvements, compliance or other benefits and may experience unanticipated challenges from clients, regulators or other parties or reputational harm.
In addition, our advanced systems are subject to update and periodic revalidation in response to changes in our business activities and our historical experiences, forces and events experienced by the market broadly or by individual financial institutions, changes in regulations and regulatory interpretations and other factors, and are also subject to continuing regulatory review and approval.
State Street Corporation | 34 In addition, our advanced systems are subject to update and periodic revalidation in response to changes in our business activities and our historical experiences, forces and events experienced by the market broadly or by individual financial institutions, changes in regulations and regulatory interpretations and other factors, and are also subject to continuing regulatory review and approval.
Resolution Planning We are required to periodically submit a plan for rapid and orderly resolution in the event of material financial distress or failure commonly referred to as a resolution plan or a living will to the Federal Reserve and the FDIC under Section 165(d) of the Dodd-Frank Act.
Resolution Planning We are required to periodically submit a plan for rapid and orderly resolution in the event of material financial distress or failure commonly referred to as a resolution plan or a living will to the Federal Reserve and the FDIC under Section 165(d) of the Dodd- State Street Corporation | 37 Frank Act.
The evolving regulatory landscape may interfere with our ability to conduct our operations, hamper our State Street Corporation | 37 pursuit of a common global operating model or impede our ability to compete effectively with other financial institutions operating in those jurisdictions which may be subject to different regulatory requirements than apply to us.
The evolving regulatory landscape may interfere with our ability to conduct our operations, hamper our pursuit of a common global operating model or impede our ability to compete effectively with other financial institutions operating in those jurisdictions which may be subject to different regulatory requirements than apply to us.
Our Investment Management line of business provides investment management strategies and products that may incorporate the consideration of sustainability or ESG factors into the investment process.
Our Investment Management line of business provides investment management strategies and products that may incorporate the consideration of sustainability or ESG factors.
In Europe, we are subject to potential fines and other regulatory consequences if regulators conclude we are not managing or reducing climate risk consistent with their expectations, not only in our own operations, but also through the vendors we use and, potentially, the clients we service.
For example, in Europe, we may be subject to potential fines and other regulatory consequences if regulators conclude we are not managing or reducing climate risk consistent with their expectations, not only in our own operations, but also through the vendors we use and, potentially, the clients we service.
Integration efforts may also divert management attention and resources. Competition for qualified members of our workforce is intense, and we may not be able to attract and retain the personnel we need to support our business. Our success depends, in large part, on our ability to attract and retain qualified personnel.
Integration efforts may also divert management attention and resources. Competition for qualified members of our workforce is intense, and we may not be able to attract and retain the personnel we need to support our business. State Street Corporation | 24 Our success depends, in large part, on our ability to attract and retain qualified personnel.
Our implementation of capital and liquidity requirements may not be approved or may be objected to by the Federal Reserve, and the Federal Reserve may impose capital requirements in excess of our expectations or require us to maintain levels of liquidity that are higher than we may expect and State Street Corporation | 35 which may adversely affect our consolidated revenues.
Our implementation of capital and liquidity requirements may not be approved or may be objected to by the Federal Reserve, and the Federal Reserve may impose capital requirements in excess of our expectations or require us to maintain levels of liquidity that are higher than we may expect and which may adversely affect our consolidated revenues.
We have in the past failed and may in the future fail to identify and manage risks related to a variety of aspects of our business, including operational risk and resiliency, information technology risk, cybersecurity, interest rate risk, foreign exchange risk, fiduciary risk, legal and compliance risk, liquidity risk and credit risk.
We have in the past failed and may in the future fail to identify and manage risks related to a variety of State Street Corporation | 45 aspects of our business, including operational risk and resiliency, information technology risk, cybersecurity, interest rate risk, foreign exchange risk, fiduciary risk, legal and compliance risk, liquidity risk and credit risk.
Most of our businesses are subject to extensive regulation and supervision by multiple regulatory and supervisory bodies, and many of the clients to which we provide services are themselves subject to a broad range of regulatory requirements. These regulations may affect the scope of, and the manner and terms of delivery of, our services.
State Street Corporation | 36 Most of our businesses are subject to extensive regulation and supervision by multiple regulatory and supervisory bodies, and many of the clients to which we provide services are themselves subject to a broad range of regulatory requirements. These regulations may affect the scope of, and the manner and terms of delivery of, our services.
This regulation and supervisory oversight affects, among other things, the scope of our activities and client services, our capital operational and organizational structures, our ability to fund the operations of our subsidiaries, our lending practices, our dividend policy, our common share repurchase actions, the manner in which we market our services, our acquisition activities and our interactions with foreign regulatory agencies and officials.
This regulation and supervisory oversight affects, among other things, the scope and nature of our activities and client services, our capital management and deployment, our operational and organizational structures, our ability to fund the operations of our subsidiaries, our lending practices, our common share repurchase actions, our dividend policy, our acquisition activities and strategic relationships, the manner in which we market our services and our interactions with foreign regulatory agencies and officials.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

1 edited+0 added−0 removed14 unchanged
Biggest changeAdditional information about our risk management governance and structure, including enterprise risk management, as well as information technology specific risk management and governance, is provided under the “Governance and Structure” and “Information Technology Risk Management” sections of Risk Management included in Item 7, Management’s Discussion and Analysis in this Form 10-K. State Street Corporation | 50
Biggest changeAdditional information about our risk management governance and structure, including enterprise risk management, as well as information technology specific risk management and governance, is provided under the “Governance and Structure” and “Information Technology Risk Management” sections of Risk Management included in Item 7, Management’s Discussion and Analysis in this Form 10-K. State Street Corporation | 52

Item 2. Properties

Properties — owned and leased real estate

4 edited+0 added−0 removed1 unchanged
Biggest changeThe following table provides information regarding our principal office space, data centers and related facilities by region as of December 31, 2024: Number of locations Approximate Square Footage (in millions) Owned Leased Total Owned Leased Total Americas 1 35 36 0.7 1.8 2.5 Europe/Middle East/Africa 1 30 31 0.1 1.1 1.2 Asia/Pacific — 38 38 — 2.0 2.0 Total 2 103 105 0.8 4.9 5.7 We believe that our owned and leased facilities globally are suitable and adequate for our business needs.
Biggest changeThe following table provides information regarding our principal office space, data centers and related facilities by region as of December 31, 2025: Number of locations Approximate Square Footage (in millions) Owned Leased Total Owned Leased Total Americas 1 33 34 0.7 1.5 2.2 Europe/Middle East/Africa 1 32 33 0.1 1.1 1.2 Asia/Pacific — 34 34 — 2.1 2.1 Total 2 99 101 0.8 4.7 5.5 We believe that our owned and leased facilities globally are suitable and adequate for our business needs.
Various divisions of our two lines of business as well as support functions occupy approximately 517 thousand square feet leased in this building, which is a non-cancellable lease that expires in August 2038. An additional approximate 1.4 million square feet is occupied in Eastern Massachusetts of which approximately 720 thousand square feet is owned.
Various divisions of our two lines of business as well as support functions occupy approximately 517 thousand square feet leased in this building, which is a non-cancellable lease that expires in August 2038. An additional approximate 1.1 million square feet is occupied in Eastern Massachusetts of which approximately 720 thousand square feet is owned.
Outside the United States, we also occupy other principal leased space to support our operations in Europe, the Middle East and Africa (EMEA), including Germany, Ireland, Luxembourg, Poland, and the United Kingdom, and in Asia-Pacific, including China and India.
Outside the United States, we also occupy other principal leased space to support our operations in Europe, the Middle East and Africa, including Poland, United Kingdom, Ireland, Germany and Luxembourg, and in Asia-Pacific, including India and China.
ITEM 2. PROPERTIES As of December 31, 2024 and 2023, we occupied a total of approximately 5.7 million and 5.4 million square feet, respectively, of office space, data centers and related facilities worldwide, of which approximately 4.9 million and 4.6 million square feet, respectively, were leased. Our headquarters is located at One Congress Street, Boston, Massachusetts.
ITEM 2. PROPERTIES As of December 31, 2025 and 2024, we occupied a total of approximately 5.5 million and 5.7 million square feet, respectively, of office space, data centers and related facilities worldwide, of which approximately 4.7 million and 4.9 million square feet, respectively, were leased. Our headquarters is located at One Congress Street, Boston, Massachusetts.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

18 edited+7 added−16 removed11 unchanged
Biggest changeHorgan 59 Executive Vice President and Chief Human Resources and Citizenship Officer Bradford Hu 61 Executive Vice President and Chief Risk Officer Yie-Hsin Hung 62 President and Chief Executive Officer, State Street Global Advisors Donna Milrod 57 Executive Vice President and Chief Product Officer John Plansky 59 Executive Vice President and Head of Wealth Services Elizabeth Schaefer 50 Senior Vice President and Chief Accounting Officer Mark Shelton 57 Executive Vice President, General Counsel and Secretary Mostapha Tahiri 50 Executive Vice President and Chief Operating Officer Sarah Timby 55 Executive Vice President and Chief Administrative Officer All executive officers are appointed by the Board of Directors and hold office at the discretion of the Board.
Biggest changeHorgan 60 Executive Vice President and Chief Human Resources and Citizenship Officer Bradford Hu 62 Executive Vice President and Chief Risk Officer Yie-Hsin Hung 63 President and Chief Executive Officer, State Street Investment Management John Plansky 61 Executive Vice President and Head of Wealth Services Michael L.
Ambrosius joined State Street in June 2001 and has served as Executive Vice President and President of Investment Services since December 2024. He had previously served as Chief Commercial Officer and Head of State Street’s European business since October 2022.
Ambrosius joined State Street in June 2001 and has served as Executive Vice President and President of Investment Services since December 2024. He had previously served as Chief Commercial Officer and Head of State Street’s European business beginning in October 2022.
Prior to joining UBS in 2003, Shelton served as Partner at Wilmer Cutler Pickering LLP, an international law firm, from 1997 to 2003. Mr. Tahiri joined State Street in September 2020 as Executive Vice President and Head of Asia Pacific and has served as Executive Vice President and Chief Operating Officer since January 2024. Prior to that, Mr.
Shelton served as Partner at Wilmer Cutler Pickering LLP, an international law firm, from 1997 to 2003. Mr. Tahiri joined State Street in September 2020 as Executive Vice President and Head of Asia Pacific and has served as Executive Vice President and Chief Operating Officer since January 2024. Prior to that, Mr.
He served as the Chief Executive Officer and President of State Street Global Advisors, the investment management arm of State Street Corporation, from April 2015 to November 2017. Prior to joining State Street, Mr. O’Hanley was president of Asset Management & Corporate Services for Fidelity Investments, a financial and mutual fund services corporation, from 2010 to February 2014.
He served as the Chief Executive Officer and President of State Street Investment Management, the investment management arm of State Street Corporation, from April 2015 to November 2017. Prior to joining State Street, Mr. O’Hanley was president of Asset Management & Corporate Services for Fidelity Investments, a financial and mutual fund services corporation, from 2010 to February 2014.
Prior to joining State Street, she served in various roles at American Express Company, a global services company whose principal products and services are State Street Corporation | 53 charge and credit card products and travel-related services, including from August 2012 to December 2014, senior roles within the Controllership organization. Prior to that, Ms.
Prior to joining State Street, she served in various roles at American Express Company, a global services company whose principal products and services are charge and credit card products and travel-related services, including from August 2012 to December 2014, senior roles within the Controllership organization. Prior to that, Ms.
Prior to this role, he served as Head of Institutional Investors & Digital Transformation, Asia Pacific, of BNP Paribus, from October 2017 to January 2019 and as CEO BNP Paribas Securities Singapore & Head of Southeast Asia from September 2013 to Jun 2018.
Prior to this role, he served as Head of Institutional Investors & Digital Transformation, Asia Pacific, of BNP Paribus, from October 2017 to January 2019 and as CEO BNP Paribas Securities Singapore & Head of Southeast Asia from September 2013 to June 2018.
Before joining Gibson, Dunn & Crutcher, he served as Global Head of Investigations of UBS, a global financial services company, from 2011 to January 2014 and as Americas General Counsel from 2009 to 2011. Mr. Shelton, also held several other senior positions during his nearly 11-year tenure with UBS.
Before joining Gibson, Dunn & Crutcher, he served as Global Head of Investigations of UBS, a global financial services company, from 2011 to January 2014 and as Americas General Counsel from 2009 to 2011. Mr. Shelton, also held several other senior positions during his nearly 11-year tenure with UBS. Prior to joining UBS in 2003, Mr.
Prior to this role, she served as Chief Operating Officer for State Street’s Global Human Resources division from 2011 to March 2017 and since 2012 has served as an Executive Vice President. Prior to 2011, Ms. Horgan served as the Senior Vice President of Human Resources for State Street Global Advisors. Before joining State Street, Ms.
Prior to this role, she served as Chief Operating Officer for State Street’s Global Human Resources division from 2011 to March 2017 and since 2012 has served as an Executive Vice President. Prior to 2011, Ms. Horgan served as the Senior Vice President of Human Resources for State Street Investment Management. Before joining State Street, Ms.
No family relationships exist among any of our directors and executive officers. Mr. O’Hanley joined State Street in April 2015 and since January 1, 2020 has served as the Chairman of the Board and Chief Executive Officer, reassuming the additional role of President effective January 1, 2024. Prior to this role Mr.
O’Hanley joined State Street in April 2015 and since January 1, 2020 has served as the Chairman of the Board and Chief Executive Officer, reassuming the additional role of President effective January 1, 2024. Prior to this role Mr.
Prior to this role, she served as State Street’s Senior Vice President and Deputy Controller from July 2016 to June 2024. Ms. Schaefer served as State Street’s interim Chief Accounting Officer from September 2017 to May 2018. From 2014 to July 2016, Ms. Schaefer served as State Street’s Director of SEC Reporting, Accounting Policy & Regulatory Compliance.
Schaefer served as State Street’s interim Chief Accounting Officer from September 2017 to May 2018. From 2014 to July 2016, Ms. Schaefer served as State Street’s Director of SEC Reporting, Accounting Policy & Regulatory Compliance.
ITEM 4. MINE SAFETY DISCLOSURES Not applicable. State Street Corporation | 51 INFORMATION ABOUT OUR EXECUTIVE OFFICERS The following table presents certain information with respect to each of our executive officers as of February 13, 2025. Name Age Position Ronald P. O’Hanley 67 Chairman, Chief Executive Officer and President Eric W.
ITEM 4. MINE SAFETY DISCLOSURES Not applicable. State Street Corporation | 53 INFORMATION ABOUT OUR EXECUTIVE OFFICERS The following table presents certain information with respect to each of our executive officers as of February 19, 2026. Name Age Position Ronald P.
Hung joined State Street in December 2022 as President and Chief Executive Officer of State Street Global Advisors. Prior to joining State Street, Ms. Hung served as Chief Executive Officer of New York Life Investment Management (NYLIM), a global investment management business that provides a broad range of fixed income, alternatives, and equity capabilities, from April 2015 to October 2022.
Hung served as Chief Executive Officer of New York Life Investment Management (NYLIM), a global investment management business that provides a broad range of fixed income, alternatives, and equity capabilities, from April 2015 to October 2022. Prior to joining NYLIM in 2010, Ms. Hung held a number of leadership positions at Bridgewater Associates and Morgan Stanley. Mr.
Milrod also held several leadership roles at Deutsche Bank, a global financial services company, from 1999 to 2012. Mr. Plansky joined State Street in January 2017 as head of State Street Global Exchange and since December 2024 has served as Executive Vice President and Head of Wealth Services. Prior to that role, Mr.
Plansky joined State Street in January 2017 as head of State Street Global Exchange and since December 2024 has served as Executive Vice President and Head of Wealth Services. Prior to that State Street Corporation | 54 role, Mr.
He also held several other leadership positions during his tenure with BNP Paribas Securities that started in February 2002. Ms. Timby joined State Street in January 2020 and since January 2024 has served as Executive Vice President and Chief Administrative Officer. Prior to this role, Ms.
He also held several other leadership positions during his tenure with BNP Paribas Securities that started in February 2002. Mr. Woods joined State Street in August 2025 as Executive Vice President and Chief Financial Officer. Prior to joining State Street, Mr. Woods served as Chief Financial Officer of Citizens Financial Group, Inc.
Prior to the acquisition of Booz & Co. by PricewaterhouseCoopers, he was a senior partner at Booz & Co. leading the technology practice and serving as a senior advisor to global financial institutions. Ms. Schaefer joined State Street in 2014 and has served as Senior Vice President and Chief Accounting Officer since June 2024.
Prior to the acquisition of Booz & Co. by PricewaterhouseCoopers, he was a senior partner at Booz & Co. leading the technology practice and serving as a senior advisor to global financial institutions. Mr.
Prior to State Street, Mr. Ambrosius held Vice President positions at Deutsche Bank, a global financial services company. Mr. Bisegna joined State Street in July 1987 and has served as Executive Vice President and Head of State Street Global Markets since September 2021.
Prior to State Street, Mr. Ambrosius held Vice President positions at Deutsche Bank, a global financial services company. Ms. Horgan joined State Street in April 2009 and has served as Executive Vice President and Chief Human Resources and Citizenship Officer since March 2017.
Prior to joining NYLIM in 2010, Ms. Hung held a number of leadership positions at Bridgewater Associates and Morgan Stanley. Ms. Milrod joined State Street in December 2018 and has served as Executive Vice President and Chief Product Officer since December 2022.
Hung joined State Street in December 2022 as President and Chief Executive Officer of State Street Investment Management. In addition, since February 2024 she has served as co-head of Corporate Strategy and Marketing and since October 2025 oversees the State Street Markets business. Prior to joining State Street, Ms.
Aboaf 60 Vice Chairman and Chief Financial Officer Joerg Ambrosius 54 Executive Vice President and President of Investment Services Anthony C. Bisegna 61 Executive Vice President and Head of State Street Global Markets Ann Fogarty 58 Executive Vice President and Head of Global Delivery Brian Franz 59 Executive Vice President, Chief Information Officer and Head of Enterprise Resiliency Kathryn M.
O’Hanley 69 Chairman, Chief Executive Officer and President Joerg Ambrosius 55 Executive Vice President and President of Investment Services Kathryn M.
Removed
Aboaf joined State Street in December 2016 as Executive Vice President and has served as Executive Vice President and Chief Financial Officer since February 2017. In May 2022, Mr. Aboaf was appointed to the role of Vice Chairman, with expanded responsibility for State Street’s Global Markets and Global Credit Finance businesses. Prior to joining State Street, Mr.
Added
Richards 67 Executive Vice President and Senior Advisor Elizabeth Schaefer 51 Senior Vice President and Chief Accounting Officer and Interim Controller Mark Shelton 58 Executive Vice President, General Counsel and Secretary Mostapha Tahiri 51 Executive Vice President and Chief Operating Officer John F.
Removed
Aboaf served as chief financial officer of Citizens Financial Group, a financial services and retail banking firm, from April 2015 to December 2016, with responsibility for all finance functions and corporate development.
Added
Woods 61 Executive Vice President and Chief Financial Officer All executive officers are appointed by the Board of Directors and hold office at the discretion of the Board. No family relationships exist among any of our directors and executive officers. Mr.
Removed
From 2003 to March 2015, he served in several senior management positions for Citigroup, a global investment banking and financial services corporation, including as global treasurer and as the chief financial officer of the institutional client group, which included the custody business.
Added
Richards joined State Street in 2014 and has served as Executive Vice President and Senior Advisor to the Chief Executive Officer and Executive Committee since March 2024, rejoining our Executive Committee in March 2025. From April 2020 to March 2024, he served as Executive Vice President and Chief Administrative Officer. Prior to that role, Mr.
Removed
On October 10, 2024, Eric Aboaf informed State Street of his intention to step down from his roles as State Street's Vice Chairman and Chief Financial Officer to take a position with a firm outside of banking. Mr. Aboaf will remain at State Street through the date this annual report on Form 10-K is filed with the SEC.
Added
Richards served as Executive Vice President and General Auditor from June 2014 to April 2020. Before joining State Street, Mr. Richards was a partner at Ernst & Young and was responsible for managing their Banking Capital Markets practice in the United States. Ms.
Removed
On January 14, 2025, the Board appointed Mark R. Keating as interim CFO, effective upon the date following that Form 10-K filing date. Mr. Keating, 56, has served as State Street’s Executive Vice President and Chief Financial Officer for Investment Services, since 2018. Mr.
Added
Schaefer joined State Street in 2014 and has served as Senior Vice President and Chief Accounting Officer since June 2024 and also as Interim Controller since September 2025. Prior to this role, she served as State Street’s Senior Vice President and Deputy Controller from July 2016 to June 2024. Ms.
Removed
Prior to this role, he served as Executive Vice President and Global Head of Multi-Asset Class Trading and Research from December 2018 to September 2021. Mr. Bisegna has also held several other senior positions during his over 35 years with State Street.
Added
(Citizens), a financial services and retail banking firm, from March 2017 to August 2025, and as Citizens’ Vice Chair from February 2019 to August 2025. Before joining Citizens, Mr. Woods spent several years at Mitsubishi UFJ Financial Group (MUFG) in a variety of finance leadership roles, including as CFO of MUFG Americas Holdings Corporation. Mr.
Removed
Prior to joining State Street, he was with Chase Manhattan Bank, New York, a global financial services firm, in their treasury operations. State Street Corporation | 52 Ms. Fogarty joined State Street in March 2021 as Executive Vice President and Deputy Head of Global Delivery. She assumed the role of Head of Global Delivery in March 2022.
Added
Woods also held leadership roles at other large financial institutions, including CFO of Home Lending at JPMorgan Chase & Co. He began his career at Arthur Andersen, where he was a partner in the financial consulting group. State Street Corporation | 55 PART II
Removed
Prior to joining State Street, she served as Global Head of Operations for BNY Mellon, a global banking and financial services corporation, from February 2018 to February 2021. Prior to this role, Ms. Fogarty served as Global Head of Fund Accounting and Administration at BNY Mellon, from March 2015 to February 2018. Ms.
Removed
Fogarty served in several other leadership roles with BNY Mellon from January 2005 to February 2015. She also served as Head of Hedge Fund Administration at AIB Capital Markets, a sister joint venture to the AIB/BNY Trust Company, providing Custody and Trustee Services, from January 1995 to December 2002. Mr.
Removed
Franz joined State Street in January 2020 as Executive Vice President and Chief Information Officer. Prior to this role, Mr. Franz served as Chief Productivity Officer and Chief Information Officer at Diageo PLC, a British multinational alcoholic beverages company, with responsibility for enterprise operations, technology and business service functions.
Removed
Prior to joining Diageo in 2008, he was Chief Information Officer at PepsiCo International, and before that in leadership roles at General Electric (GE), including GE Capital, and AT&T. Ms. Horgan joined State Street in April 2009 and has served as Executive Vice President and Chief Human Resources and Citizenship Officer since March 2017.
Removed
Prior to that role, she served as Executive Vice President and Lead Executive for a large proposed investment services acquisition from October 2021 to December 2022, as Executive Vice President, Head of Global Clients Division and Head of Global Asset Managers Segment from January 2021 to October 2021 and as Executive Vice President and Head of the Global Clients Division from December 2018 to October 2021.
Removed
Prior to joining State Street, Ms. Milrod served as Senior Advisor at Mckinsey & Company, a global management consulting firm, from 2016 to 2018. Prior to joining McKinsey & Company, she served in multiple leadership positions at The Depository Trust & Clearing Corporation, a post-trade market infrastructure for the global financial services industry, from 2012 to 2016. Ms.
Removed
Timby served as Executive Vice President and Global Technology Services Chief Information Officer and International & Global Technology Risk Manager from May 2022 to December 2023 and as International Chief Information Officer from January 2020 to May 2022.
Removed
Prior to joining State Street, she served as Managing Director: Group Operations European Bank for Reconstruction and Development for the European Bank for Reconstruction and Development, a financial services company, from January 2019 to January 2020. Before this role, Ms.
Removed
Timby served as Managing Director: Head of Investments & Corporate Bank Know Your Customer Operations, with Barclays, from March 2017 to December 2018. She also held several other senior positions during her 30-year tenure with Barclays. State Street Corporation | 54 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

7 edited+1 added−0 removed21 unchanged
Biggest changeThe cumulative total shareholder return assumes the investment of $100 in our common stock and in each index on December 31, 2019 and reinvestment of common stock dividends. • The KBW Bank Index is a modified cap-weighted index consisting of 24 exchange-listed stocks, representing national money center banks and leading regional institutions, and is our primary comparator group index. • The Peer Group is composed of The Bank of New York Mellon Corporation and Northern Trust Corporation. 2019 2020 2021 2022 2023 2024 State Street Corporation $ 100 $ 95 $ 125 $ 108 $ 111 $ 145 S&P 500 Index 100 118 152 125 158 197 KBW Bank Index 100 90 124 98 97 133 Peer group 100 88 121 96 108 155 The following table compares the cumulative total shareholder return on our common stock to the cumulative total return of the S&P 500 Index, the KBW Bank Index and a Peer Group over a one-year, three-year and five-year period. 1 year 3 years 5 years State Street Corporation 30 % 16 % 45 % S&P 500 Index 25 29 97 KBW Bank Index 37 7 33 Peer group 44 28 55 State Street Corporation | 57
Biggest changeThe cumulative total shareholder return assumes the investment of $100 in our common stock and in each index on December 31, 2020 and reinvestment of common stock dividends. • The KBW Bank Index is a modified cap-weighted index consisting of 24 exchange-listed stocks, representing national money center banks and leading regional institutions, and is our primary comparator group index. • The Direct Peer Group is composed of The Bank of New York Mellon Corporation and Northern Trust Corporation. 2020 2021 2022 2023 2024 2025 State Street Corporation $ 100 $ 131 $ 113 $ 117 $ 152 $ 207 S&P 500 Index 100 129 105 133 166 196 KBW Bank Index 100 138 109 108 148 196 Direct Peer Group 100 138 109 122 176 263 The following table compares the cumulative total shareholder return on our common stock to the cumulative total return of the S&P 500 Index, the KBW Bank Index and a Direct Peer Group over a one-year, three-year and five-year period. 1 year 3 years 5 years State Street Corporation 36 % 83 % 107 % S&P 500 Index 18 86 96 KBW Bank Index 33 80 96 Direct Peer Group 50 141 163 State Street Corporation | 58
State Street Corporation | 56 SHAREHOLDER RETURN PERFORMANCE PRESENTATION The graph below presents the cumulative total shareholder return on our common stock as compared to the cumulative total return of the S&P 500 Index, the KBW Bank Index and a Peer Group over a five-year period.
State Street Corporation | 57 SHAREHOLDER RETURN PERFORMANCE PRESENTATION The graph below presents the cumulative total shareholder return on our common stock as compared to the cumulative total return of the S&P 500 Index, the KBW Bank Index and a Direct Peer Group over a five-year period.
State Street Corporation | 55 No dividends may be declared, credited or paid so long as there is any impairment of State Street Bank’s capital stock.
State Street Corporation | 56 No dividends may be declared, credited or paid so long as there is any impairment of State Street Bank’s capital stock.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES MARKET FOR REGISTRANT’S COMMON EQUITY Our common stock is listed on the New York Stock Exchange under the ticker symbol STT. There were 1,888 shareholders of record as of January 31, 2025.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES MARKET FOR REGISTRANT’S COMMON EQUITY Our common stock is listed on the New York Stock Exchange under the ticker symbol STT. There were 1,784 shareholders of record as of January 30, 2026.
On January 19, 2024, we announced a new common share repurchase program, approved by our Board and superseding all prior programs, authorizing the purchase of up to $5.0 billion of our common stock beginning in the first quarter of 2024 with no set expiration date.
On January 19, 2024, we announced a common share repurchase program, approved by the Board and superseding all prior programs, authorizing the purchase of up to $5.0 billion of our common stock beginning in the first quarter of 2024 (the 2024 Program).
(Dollars in millions except per share amounts; shares in thousands) Total Number of shares purchased Average price per share Total number of shares purchased as part of publicly announced program Approximate dollar value of shares that may yet be purchased under publicly announced program (1) Period: October 1 - October 31, 2024 1,294 $ 92.05 1,294 $ 4,131 November 1 - November 30, 2024 2,460 95.93 2,460 3,895 December 1 - December 31, 2024 1,974 98.72 1,974 3,700 Total 5,728 $ 96.01 5,728 $ 3,700 (1) As of December 31, 2024, approximately $3.7 billion was remaining under the 2024 share repurchase authorization.
(Dollars in millions except per share amounts; shares in thousands) Total Number of shares purchased Average price per share Total number of shares purchased as part of publicly announced program Approximate dollar value of shares that may yet be purchased under publicly announced program (1) Period: October 1 - October 31, 2025 3,019 $ 115.93 3,019 $ 2,550 November 1 - November 30, 2025 — — — 2,550 December 1 - December 31, 2025 388 129.03 388 2,500 Total 3,407 $ 117.42 3,407 $ 2,500 (1) As of December 31, 2025, approximately $2.5 billion was remaining under the 2024 share repurchase authorization.
During 2024, we repurchased $1.3 billion of our common stock under our 2024 share repurchase authorization and expect common share repurchases to continue under this program during 2025. The following table presents the activity under our common share repurchase program for each of the months in the quarter ended December 31, 2024.
The following table presents the activity under our common share repurchase program for each of the months in the quarter ended December 31, 2025.
Added
During 2025, we repurchased $1.2 billion of our common stock and since its inception we have repurchased an aggregate of $2.50 billion of our common stock under the 2024 Program through December 31, 2025. This program has no set expiration date.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

371 edited+61 added−167 removed249 unchanged
Biggest changeTABLE 12: ACTIVITY IN ASSETS UNDER MANAGEMENT BY PRODUCT CATEGORY (In billions) Equity Fixed-Income Cash (1) Multi-Asset-Class Solutions Alternative Investments (2)(3) Total Balance as of December 31, 2021 $ 2,674 $ 623 $ 368 $ 222 $ 251 $ 4,138 Long-term institutional flows, net (4) (97) 18 1 19 — (59) Exchange-traded fund flows, net — 22 — — — 22 Total flows, net (97) 40 1 19 — (37) Market appreciation (depreciation) (397) (94) 9 (28) (31) (541) Foreign exchange impact (51) (15) (2) (4) (7) (79) Total market/foreign exchange impact (448) (109) 7 (32) (38) (620) Balance as of December 31, 2022 2,129 554 376 209 213 3,481 Long-term institutional flows, net (4) (98) 13 (1) 65 (26) (47) Exchange-traded fund flows, net 73 17 — — (2) 88 Cash fund flows, net — — 76 — — 76 Total flows, net (25) 30 75 65 (28) 117 Market appreciation (depreciation) 408 26 16 35 15 500 Foreign exchange impact 1 (1) — 1 3 4 Total market/foreign exchange impact 409 25 16 36 18 504 Balance as of December 31, 2023 2,513 609 467 310 203 4,102 Long-term institutional flows, net (4) (7) (8) 1 34 (17) 3 Exchange-traded fund flows, net 85 24 — — — 109 Cash fund flows, net — — 32 — — 32 Total flows, net 78 16 33 34 (17) 144 Market appreciation (depreciation) 457 4 21 32 21 535 Foreign exchange impact (41) (13) (3) (2) (7) (66) Total market/foreign exchange impact 416 (9) 18 30 14 469 Balance as of December 31, 2024 $ 3,007 $ 616 $ 518 $ 374 $ 200 $ 4,715 (1) Includes both floating and constant-net-asset-value portfolios held in commingled structures or separate accounts.
Biggest changeWe are not the investment manager for the SPDR ® Gold Shares and SPDR ® Gold MiniSharesSM Trust, but act as the marketing agent. nm Not meaningful State Street Corporation | 65 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS TABLE 9: ACTIVITY IN ASSETS UNDER MANAGEMENT BY PRODUCT CATEGORY (In billions) Equity Fixed-Income Cash (1) Multi-Asset-Class Solutions Alternative Investments (2)(4) Total Balance as of December 31, 2022 $ 2,129 $ 554 $ 376 $ 209 $ 213 $ 3,481 Long-term institutional flows, net (3) (98) 13 (1) 65 (26) (47) Exchange-traded fund flows, net 73 17 — — (2) 88 Cash fund flows, net — — 76 — — 76 Total flows, net (25) 30 75 65 (28) 117 Market appreciation (depreciation) 408 26 16 35 15 500 Foreign exchange impact 1 (1) — 1 3 4 Total market/foreign exchange impact 409 25 16 36 18 504 Balance as of December 31, 2023 2,513 609 467 310 203 4,102 Long-term institutional flows, net (3) (7) (8) 1 34 (17) 3 Exchange-traded fund flows, net 85 24 — — — 109 Cash fund flows, net — — 32 — — 32 Total flows, net 78 16 33 34 (17) 144 Market appreciation (depreciation) 457 4 21 32 21 535 Foreign exchange impact (41) (13) (3) (2) (7) (66) Total market/foreign exchange impact 416 (9) 18 30 14 469 Balance as of December 31, 2024 3,007 616 518 374 200 4,715 Long-term institutional flows, net (3) (46) 61 — 56 (29) 42 Exchange-traded fund flows, net 56 16 — — 32 104 Cash fund flows, net — — 34 — — 34 Total flows, net 10 77 34 56 3 180 Market appreciation (depreciation) 535 36 15 62 63 711 Foreign exchange impact 37 5 3 9 5 59 Total market/foreign exchange impact 572 41 18 71 68 770 Balance as of December 31, 2025 $ 3,589 $ 734 $ 570 $ 501 $ 271 $ 5,665 (1) Includes both floating and constant-net-asset-value portfolios held in commingled structures or separate accounts.
With respect to these new servicing mandates, once installed we may provide various services, including back office services such as custody and safekeeping, transaction processing and trade settlement, fund administration, reporting and record keeping, security servicing, fund accounting, middle office services such as investment book of records, transaction management, loans, cash derivatives and collateral services, recordkeeping, client reporting and investment analytics, markets services such as FX trading services, liquidity solutions, currency and collateral management and securities finance, and front office services such as portfolio management solutions, risk analytics, scenario analysis, performance and attribution, trade order and execution management, pre-trade compliance and ESG investment tools.
With respect to these new investment servicing mandates, once installed we may provide various services, including back office services such as custody and safekeeping, transaction processing and trade settlement, fund administration, reporting and record keeping, security servicing, fund accounting, middle office services such as investment book of records, transaction management, loans, cash derivatives and collateral services, recordkeeping, client reporting and investment analytics, markets services such as FX trading services, liquidity solutions, currency and collateral management and securities finance, and front office services such as portfolio management solutions, risk analytics, scenario analysis, performance and attribution, trade order and execution management, pre-trade compliance and ESG investment tools.
(2) Includes real estate investment trusts, currency and commodities, including SPDR® Gold Shares and SPDR® Gold MiniSharesSM Trust. We are not the investment manager for the SPDR® Gold Shares and SPDR®Gold MiniSharesSM Trust, but act as the marketing agent. (3) AUM for passive alternative investments has been revised from prior presentations. (4) Amounts represent long-term portfolios, excluding ETFs.
(2) Includes real estate investment trusts, currency and commodities, including SPDR® Gold Shares and SPDR® Gold MiniSharesSM Trust. We are not the investment manager for the SPDR® Gold Shares and SPDR®Gold MiniSharesSM Trust, but act as the marketing agent. (3) Amounts represent long-term portfolios, excluding ETFs. (4) AUM for passive alternative investments has been revised from prior presentations.
The securities listed under “Canada” were composed of Canadian government securities, corporate debt, covered bonds and non-U.S. agency securities. The securities listed under “France” were composed of sovereign bonds, corporate debt, covered bonds, ABS and non-U.S. agency securities. The securities listed under “Germany” were composed of non-U.S. agency securities, ABS and corporate debt.
The securities listed under “Canada” were composed of Canadian government securities, corporate debt, covered bonds and non-U.S. agency securities. The securities listed under “France” were composed of sovereign bonds, corporate debt, covered bonds, ABS and non-U.S. agency securities. The securities listed under “Germany” were composed of non-U.S. agency securities, government bonds, ABS and corporate debt.
The group is managed centrally, has dedicated teams in a number of locations worldwide, and is responsible for related policies and procedures, and for our internal credit-rating systems and methodologies.
The group is managed centrally, has dedicated teams in a number of locations worldwide, and is responsible for related policies and procedures and our internal credit-rating systems and methodologies.
In managing liquidity risk we employ limits, maintain established metrics and early warning indicators and perform routine stress testing to identify potential liquidity needs.
In managing liquidity risk we employ limits, maintain established metrics and early warning indicators and perform routine liquidity stress testing to identify potential liquidity needs.
Global Treasury Risk Management’s responsibilities relative to liquidity risk management include the development and review of policies and guidelines; the monitoring of limits related to adherence to the liquidity risk guidelines and associated reporting.
Global Treasury Risk Management’s responsibilities relative to liquidity risk management include the development and review of liquidity risk policies and guidelines, and development and monitoring of limits related to adherence to the liquidity risk guidelines and associated reporting.
As a provider of these products and services, we generate client deposits, which have generally provided a stable, low-cost source of funds. As a global custodian, clients place deposits with our entities in various currencies.
As a provider of these products and services, we generate client deposits, which have generally provided a stable and low-cost source of funds. As a global custodian, clients place deposits with our entities in various currencies.
Governance Our Board is responsible for the approval and oversight of our overall operational risk policy. Our operational risk policy establishes our approach to our management of operational risk across our business.
Governance Our Board is responsible for the approval and oversight of our overall operational risk policy. The operational risk policy establishes our approach to our management of operational risk across our business.
As part of our trading activities, we assume positions in the foreign exchange and interest rate markets by buying and selling cash instruments and entering into derivative instruments, including foreign exchange forward contracts, foreign exchange and interest rate options and interest rate swaps, interest rate forward contracts and interest rate futures.
As part of our trading activities, we assume positions in the foreign exchange and interest rate markets by buying and selling cash instruments and entering into derivative instruments, including foreign exchange forward contracts, foreign exchange options and interest rate swaps, interest rate forward contracts and interest rate futures.
Total Loss-Absorbing Capacity (TLAC) The Federal Reserve’s final rule on TLAC, LTD and clean holding company requirements for U.S. domiciled G-SIBs, such as us, is intended to improve the resiliency and resolvability of certain U.S. banking organizations through enhanced prudential standards, and requires us, among other things, to comply with minimum requirements for external TLAC (combined eligible tier 1 regulatory capital and LTD) and LTD.
Total Loss-Absorbing Capacity The Federal Reserve’s final rule on TLAC, LTD and clean holding company requirements for U.S. domiciled G-SIBs, such as us, is intended to improve the resiliency and resolvability of certain U.S. banking organizations through enhanced prudential standards, and requires us, among other things, to comply with minimum requirements for external TLAC (combined eligible tier 1 regulatory capital and LTD) and LTD.
Allowance for Credit Losses We record an allowance for credit losses related to certain on-balance sheet credit exposures, including our financial assets held at amortized cost, as well as certain off-balance sheet credit exposures, including unfunded commitments and letters of credit.
Allowance for Credit Losses We record an allowance for credit losses related to certain on-balance sheet credit exposures, including our financial assets held at amortized cost, as well as certain off-balance sheet credit exposures, including unfunded commitments and letters of credit.
More specifically, our internal risk rating system is used for the following purposes: • 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 automation of limit approvals for certain low-risk counterparties, as defined in our credit risk guidelines and based on the counterparty’s probability-of-default; • The development of approval authority matrices based on PD; riskier counterparties with higher PDs require higher levels of approval for a comparable PD and limit size compared to less risky counterparties with lower PDs; • The analysis of risk concentration trends using historical PD and exposure-at-default (EAD), data; • 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 set forth in the Basel framework.
More specifically, our internal risk rating system is used for the following purposes: • 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 automation of limit approvals for certain low-risk counterparties, as defined in our credit risk guidelines and based on the counterparty’s PD; • The development of approval authority matrices based on PD; riskier counterparties with higher PDs require higher levels of approval for a comparable PD and limit size compared to less risky counterparties with lower PDs; • The analysis of risk concentration trends using historical PD and exposure-at-default (EAD), data; • 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 set forth in the Basel framework.
Servicing mandates and servicing assets remaining to be installed in future periods may include assets associated with acquisitions or structured transactions and are presented on a gross basis based on factors present on or about the time we determine the business to be won by us and are not updated based on subsequent developments, including changes in assets, market valuations, scope and, potentially, termination.
Investment servicing mandates and investment servicing assets remaining to be installed in future periods may include assets associated with acquisitions or structured transactions and are presented on a gross basis based on factors present on or about the time we determine the business to be won by us and are not updated based on subsequent developments, including changes in assets, market valuations, scope and, potentially, termination.
Our risk management framework focuses on material risks, which include the following: • credit and counterparty risk; • liquidity risk, including funding and management; • operational risk; • information technology risk; • resiliency risk; • market risk associated with our trading activities; • market risk associated with our non-trading activities, referred to as asset and liability management, consisting primarily of interest rate risk; • model risk; • strategic risk; and • reputational, compliance, fiduciary and business conduct risk.
Our risk management framework focuses on material risks, which include the following: • credit and counterparty risk; • liquidity risk, including funding and management; • operational risk; • information technology and cybersecurity risk; • resiliency risk; • market risk associated with our trading activities; • market risk associated with our non-trading activities, referred to as asset and liability management, consisting primarily of interest rate risk; • model risk; • strategic risk; and • reputational, compliance, fiduciary and business conduct risk.
Our corporate policies and guidelines require that all extensions of credit are consistent with the bank’s standards, limit credit-related losses, and our goal of maintaining a strong financial condition. Structure and Organization The Credit Risk group within ERM is responsible for the assessment, approval and monitoring of credit risk across our business.
Our corporate policies and guidelines require that all extensions of credit are consistent with the bank’s standards, limit credit-related losses, and support our goal of maintaining a strong financial condition. Structure and Organization The Credit Risk group within ERM is responsible for the assessment, approval and monitoring of credit risk across our business.
We manage risk with a focus on the following objectives: • A culture of risk awareness that extends across all of our business activities; • The identification, classification and quantification of our 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 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 (additional information with respect to our stress-testing process and practices is provided under “Capital” in this Management’s Discussion and Analysis); • 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.
We manage risk with a focus on the following objectives: • A culture of risk awareness that extends across all of our business activities; • The identification, classification and quantification of our material risks; • The establishment of our risk appetite and associated limits and policies, and our adherence to these limits; • The establishment of a risk management structure 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 (additional information with respect to our stress-testing process and practices is provided under “Capital” in this Management’s Discussion and Analysis); • 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.
The advanced approaches based ratios reflect calculations and determinations with respect to our capital and related matters as of December 31, 2024, based on our internal and external data, quantitative formulae, statistical models, historical correlations and assumptions, collectively referred to as “advanced systems,” in effect and used by us for those purposes as of the time we first reported such ratios in a quarterly report on Form 10-Q or an annual report on Form 10-K.
The advanced approaches based ratios reflect calculations and determinations with respect to our capital and related matters as of December 31, 2025, based on our internal and external data, quantitative formulae, statistical models, historical correlations and assumptions, collectively referred to as “advanced systems,” in effect and used by us for those purposes as of the time we first reported such ratios in a quarterly report on Form 10-Q or an annual report on Form 10-K.
Assuming that all other factors remain constant, including client activity, asset flows and pricing, we estimate, using relevant information as of December 31, 2024, that a 10% increase or decrease in worldwide equity valuations, on a weighted average basis, over the relevant periods for which our servicing fees are calculated, would result in a corresponding change in our total servicing fee revenues, on average and over multiple quarters, of approximately 3%.
Assuming that all other factors remain constant, including client activity, asset flows and pricing, we estimate, using relevant information as of December 31, 2025, that a 10% increase or decrease in worldwide equity valuations, on a weighted average basis, over the relevant periods for which our servicing fees are calculated, would result in a corresponding change in our total servicing fee revenues, on average and over multiple quarters, of approximately 3%.
Our trading market risk control framework is composed of the following: • A trading market risk management process led by ERM, separate from the business units’ discrete activities; • 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 State Street Corporation | 100 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 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.
Our trading market risk control framework is composed of the following: • A trading market risk management process led by ERM, separate from the business units’ discrete activities; • 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; State Street Corporation | 95 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS • 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 • An approval process for new products that requires market risk teams to assess trading-related market risks and apply risk tolerance limits to proposed new products and business activities.
Under the advanced approaches, State Street and State Street Bank are subject to a 2.5% CCB requirement, plus any applicable countercyclical capital buffer requirement, which is currently set at 0%.
Under the advanced approaches, we and State Street Bank are subject to a 2.5% CCB requirement, plus any applicable countercyclical capital buffer requirement, which is currently set at 0%.
We manage technology risks by: • Coordinating various risk assessment and risk management activities, including ERM operational risk programs; • Establishing, through TORC and TOPS of the Board, the enterprise level technology risk and cyber risk appetite and limits; • Producing enterprise level risk reporting, aggregation, dashboards, profiles and risk appetite statements; • Validating appropriateness of reporting of information technology and cybersecurity risks and risk acceptance to senior management risk committees and the Board; • Promoting a strong technology and cybersecurity risk culture through communication; • Serving as an escalation and challenge point for risk policy guidance, expectations and clarifications; • Assessing effectiveness of key enterprise information technology and cybersecurity risk and internal control remediation programs; and • Providing risk oversight, challenge and monitoring for the Enterprise Continuity Services function and Third Party Management program, including the collection of risk appetite, metrics and key risk indicators, and reviewing issue management processes and consistent program adoption.
We manage technology risks by: • Coordinating various risk assessment and risk management activities, including ERM operational risk programs; • Establishing, through TORC and TOPS of the Board, the enterprise level technology risk and cyber risk appetite and limits; • Producing enterprise level risk reporting, aggregation, dashboards, profiles and risk appetite statements; • Validating appropriateness of reporting of information technology and cybersecurity risks and risk acceptance to senior management risk committees and the Board; • Promoting a strong technology and cybersecurity risk culture through communication; • Serving as an escalation and challenge point for risk policy guidance, expectations and clarifications; • Assessing effectiveness of key enterprise information technology and cybersecurity risks, including adoption of emerging technologies and internal control remediation programs; and • Providing risk oversight, challenge and monitoring for the Enterprise Business Continuity Services function and Third Party Management program, including the collection of risk appetite, metrics and key risk indicators, and reviewing issue management processes and consistent program adoption.
We back-test our VaR model using a “clean” P&L, which excludes non-trading revenue such as fees, commissions and NII, as well as estimated revenue from intraday trading.
We back-test our VaR model using “clean” P&L, which excludes non-trading revenue such as fees, commissions and NII, as well as estimated revenue from intraday trading.
Management Fees Management fees increased 13% in 2024 compared to 2023, primarily due to higher average market levels and net inflows. For additional information about the impact of worldwide equity and fixed-income valuations, as well as other key drivers of our management fees revenue, refer to “Fee Revenue” in “Consolidated Results of Operations” included in this Management’s Discussion and Analysis.
Management Fees Management fees increased 13% in 2025 compared to 2024, primarily due to higher average market levels and net inflows. For additional information about the impact of worldwide equity and fixed-income valuations, as well as other key drivers of our management fees revenue, refer to “Fee Revenue” in “Consolidated Results of Operations” included in this Management’s Discussion and Analysis.
We estimate, similarly assuming all other factors remain constant and using relevant information as of December 31, 2024, that changes in worldwide fixed income markets, which on a weighted average basis and over time are typically less volatile than worldwide equity markets, have a smaller corresponding impact on our servicing fee revenues on average and over time.
We estimate, similarly assuming all other factors remain constant and using relevant information as of December 31, 2025, that changes in worldwide fixed income markets, which on a weighted average basis and over time are typically less volatile than worldwide equity markets, have a smaller corresponding impact on our servicing fee revenues on average and over time.
In this Management’s Discussion and Analysis, where we describe the effects of changes in foreign currency translation, those effects are determined by applying applicable weighted average FX rates from the relevant 2023 period to the relevant 2024 period results. This Management’s Discussion and Analysis contains statements that are considered “forward-looking statements” within the meaning of U.S. securities laws.
In this Management’s Discussion and Analysis, where we describe the effects of changes in foreign currency translation, those effects are determined by applying applicable weighted average FX rates from the relevant 2024 period to the relevant 2025 period results. This Management’s Discussion and Analysis contains statements that are considered “forward-looking statements” within the meaning of U.S. securities laws.
We calculate a stressed VaR-based measure using the same model we use to calculate VaR, but with model inputs calibrated to historical data from a range of continuous twelve-month periods that reflect significant financial stress. The stressed VaR model is designed to identify the second-worst outcome occurring in the worst continuous one-year rolling period since July 2007.
We calculate a stressed VaR-based measure using the same model we use to calculate VaR, but with model inputs calibrated to historical data from a range of continuous 12-month periods that reflect significant financial stress. The stressed VaR model is designed to identify the second-worst outcome occurring in the worst continuous one-year rolling period since July 2007.
As of both December 31, 2024 and December 31, 2023, approximately 70% of our average total deposit balances were denominated in U.S. dollars, 15% in EUR, 10% in GBP and 5% in all other currencies. Short-Term Funding Our on-balance sheet liquid assets are also an integral component of our liquidity management strategy.
As of both December 31, 2025 and 2024 , approximately 70% of our average total deposit balances were denominated in U.S. dollars, 15% in EUR, 5% in GBP and 10% in all other currencies. Short-Term Funding Our on-balance sheet liquid assets are also an integral component of our liquidity management strategy.
More detailed information about our consolidated financial results, including the comparison of our financial results for the year ended December 31, 2024 to those of the year ended December 31, 2023, is provided under “Consolidated Results of Operations”, “Line of Business Information” and “Capital” sections which follow “Financial Results and Highlights”, as well as in our consolidated financial statements in this Form 10-K.
More detailed information about our consolidated financial results, including the comparison of our financial results for the year ended December 31, 2025 to those of the year ended December 31, 2024, is provided under “Consolidated Results of Operations”, “Line of Business Information” and “Capital” sections which follow “Financial Results and Highlights”, as well as in our consolidated financial statements in this Form 10-K.
Our regulatory VaR-based measure is calculated based on historical State Street Corporation | 101 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS volatilities of market risk factors during a two-year observation period calibrated to a one-tail, 99% confidence interval and a ten-business-day holding period.
Our regulatory VaR-based measure is calculated based on historical volatilities of market risk factors during a two-year State Street Corporation | 96 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS observation period calibrated to a one-tail, 99% confidence interval and a ten-business-day holding period.
Qualifying external LTD Greater of: • 7.0% of RWA (6.0% minimum plus a G-SIB surcharge calculated for these purposes under method 2 of 1.0%); and • 4.5% of total leverage exposure, as defined by the SLR final rule. The following table presents external TLAC and external LTD as of December 31, 2024.
Qualifying external LTD Greater of: • 7.0% of RWA (6.0% minimum plus a G-SIB surcharge calculated for these purposes under method 2 of 1.0%); and • 4.5% of total leverage exposure, as defined by the SLR final rule. The following table presents external TLAC and external LTD as of December 31, 2025.
Additional information about our derivative instruments is provided in Note 10 to the consolidated financial statements in this Form 10-K. We have obligations under pension and other post-retirement benefit plans, with additional information provided in Note 19 to the consolidated financial statements in this Form 10-K, which are not included in Table 30: Long-Term Contractual Cash Obligations.
Additional information about our derivative instruments is provided in Note 10 to the consolidated financial statements in this Form 10-K. We have obligations under pension and other post-retirement benefit plans, with additional information provided in Note 19 to the consolidated financial statements in this Form 10-K, which are not included in Table 26: Long-Term Contractual Cash Obligations.
Our VaR definition of trading losses excludes items that are not specific to the price movement of the trading assets and liabilities themselves, such as fees, commissions, changes to reserves and gains or losses from intraday activity. We experienced one back-testing exception in 2024 and no back-testing exceptions in 2023.
Our VaR definition of trading losses excludes items that are not specific to the price movement of the trading assets and liabilities themselves, such as fees, commissions, changes to reserves and gains or losses from intraday activity. We experienced no back-testing exceptions in 2025 and one back-testing exception in 2024.
We conduct stress testing on a daily basis based on selected historical stress events that are relevant to our positions in order to estimate the potential impact to our current portfolio should similar market conditions recur, and we also perform stress testing as part of the Federal Reserve’s CCAR process.
We conduct stress testing on a daily basis based on selected historical stress events that are relevant to our positions in order to estimate the potential impact to our current portfolio should similar market conditions recur, and we also perform stress testing as part of the Federal Reserve’s DFAST process.
In Table 37: Net Interest Income Sensitivity, we report the expected change in NII over the next twelve months from instantaneous 100 basis point shocks to various tenors on the yield curve relative to our baseline rate forecast, including the impacts from U.S. and non-U.S. rates.
In Table 33: Net Interest Income Sensitivity, we report the expected change in NII over the next twelve months from instantaneous 100 basis point shocks to various tenors on the yield curve relative to our baseline rate forecast, including the impacts from U.S. and non-U.S. rates.
On average, over the five years ended December 31, 2024, we estimate that pricing pressure with respect to existing clients has impacted our servicing fees by approximately (2)% annually, with the impact ranging from (2)% to (3)% in any given year and approximately (3)% and (2)% in 2024 and 2023, respectively.
On average, over the five years ended December 31, 2025, we estimate that pricing pressure with respect to existing clients has impacted our servicing fees by approximately (2)% annually, with the impact ranging from (2)% to (3)% in any given year and approximately (2)% and (3)% in 2025 and 2024, respectively.
New asset servicing mandates, including Alpha servicing mandates, may be subject to completion of definitive agreements, consents or assignments, approval of applicable boards, shareholders and customary regulatory approvals or other conditions, the failure to complete any of which will prevent the relevant mandate from being installed and serviced.
New investment servicing mandates, including Alpha servicing mandates, may be subject to completion of definitive agreements, consents or assignments, approval of applicable boards, shareholders and customary regulatory approvals or other conditions, the failure to complete any of which will prevent the relevant mandate from being installed and serviced.
Approximately 50%-70% of revenue associated with a sale of software to be installed on-premises is recognized at a point in time when the customer benefits from obtaining access to and use of the software license, with the percentage varying based on the length of the contract and other contractual terms.
Approximately 50%-70% of revenue associated with a sale or renewal of software to be installed on-premises is recognized at a point in time when the customer benefits from obtaining access to and use of the software license, with the percentage varying based on the length of the contract and other contractual terms.
The Federal Reserve uses its annual CCAR process, which incorporates hypothetical financial and economic stress scenarios, to review those capital plans and assess whether banking organizations have capital planning processes that account for idiosyncratic risks and provide for sufficient capital to continue operations throughout times of economic and financial stress.
The Federal Reserve uses its annual DFAST process, which incorporates hypothetical financial and economic stress scenarios, to review those capital plans and assess whether banking organizations have capital planning processes that account for idiosyncratic risks and provide for sufficient capital to continue operations throughout times of economic and financial stress.
TABLE 29: CREDIT RATINGS As of December 31, 2024 Standard & Poor’s Moody’s Investors Service Fitch State Street: Senior debt A Aa3 AA- Subordinated debt A- A2 A Junior subordinated debt BBB A3 NR Preferred stock BBB Baa1 BBB+ Outlook Stable Stable Stable State Street Bank: Short-term deposits A-1+ P-1 F1+ Long-term deposits AA- Aa1 AA+ Senior debt/Long-term issuer AA- Aa2 AA Subordinated debt A Aa3 NR Outlook Stable Stable Stable Factors essential to maintaining high credit ratings include: • diverse and stable core earnings; • relative market position; • strong risk management; • strong capital ratios; • diverse liquidity sources, including the global capital markets and client deposits; • strong liquidity monitoring procedures; and • preparedness for current or future regulatory developments.
TABLE 25: CREDIT RATINGS As of December 31, 2025 Standard & Poor’s Moody’s Investors Service Fitch State Street: Senior debt A Aa3 AA- Subordinated debt A- A2 A Junior subordinated debt BBB A3 NR Preferred stock BBB Baa1 BBB+ Outlook Stable Stable Stable State Street Bank: Short-term deposits A-1+ P-1 F1+ Long-term deposits AA- Aa1 AA+ Senior debt/Long-term issuer AA- Aa2 AA Subordinated debt A Aa3 NR Outlook Stable Stable Stable Factors essential to maintaining high credit ratings include: • diverse and stable core earnings; • relative market position; • strong risk management; • strong capital ratios; • diverse liquidity sources, including the global capital markets and client deposits; • strong liquidity monitoring procedures; and • preparedness for current or future regulatory developments.
We primarily earn FX trading revenue by acting as a principal market-maker through both “direct sales and trading” and “indirect FX trading.” • Direct sales and trading: Represent FX transactions at negotiated rates with clients and investment managers that contact our trading desk directly.
We primarily earn FX trading revenue by acting as a principal market-maker through both “direct sales and trading” and “indirect FX trading.” • Direct sales and trading: Represents FX transactions at negotiated rates with clients and investment managers that contact our trading desk directly.
If future data and forecasts deviate relative to the forecasts utilized to determine our allowance for credit losses as of December 31, 2024, or if credit risk migration is higher or lower than forecasted for reasons independent of the economic forecast, our allowance for credit losses will also change.
If future data and forecasts deviate relative to the forecasts utilized to determine our allowance for credit losses as of December 31, 2025, or if credit risk migration is higher or lower than forecasted for reasons independent of the economic forecast, our allowance for credit losses will also change.
Historically, and based on an indicative sample of revenue, we estimate that approximately 60%, on average, of our servicing fee revenues have been variable due to changes in asset valuations including changes in daily average valuations of AUC/A; another approximately 20%, on average, of our servicing fees are impacted by the volume of activity in the funds we serve; and the remaining approximately 20% of our servicing fees tend not to be variable in nature nor impacted by market fluctuations or values.
Historically, and based on an indicative sample of revenue, we estimate that approximately 65%, on average, of our servicing fee revenues have been variable due to changes in asset valuations including changes in daily average valuations of AUC/A; another approximately 20%, on average, of our servicing fees are impacted by the volume of activity in the funds we serve; and the remaining approximately 15% of our servicing fees tend not to be variable in nature nor impacted by market fluctuations or values.
This results in minimum risk-based ratios of 8.0% for the Common Equity Tier 1 (CET1) capital ratio, 9.5% for the tier 1 capital ratio, and 11.5% for the total capital ratio. Our current G-SIB surcharge, through December 31, 2025, is 1.0%.
This results in minimum risk-based ratios of 8.0% for the Common Equity Tier 1 (CET1) capital ratio, 9.5% for the tier 1 capital ratio, and 11.5% for the total capital ratio. Our current G-SIB surcharge, through December 31, 2026, is 1.0%.
The MRM framework includes: • Model risk governance that defines roles and responsibilities, including the authority to restrict model usage, provides policies and guidance, monitors compliance, and reports regularly to relevant internal committees and the Board of Directors on the overall degree of model risk across the firm; • Model development standards that focus on conceptual soundness and computational accuracy, data quality, robustness, stability, and sensitivity to assumptions; and • Model validation standards designed to verify that models are conceptually sound, are computationally accurate, are performing as expected, and are in line with their intended use, and evaluate the level of model risk for each model by considering the model’s materiality, usage, performance, and sufficiency of compensating controls among other factors The MRM function is further responsible for model identification.
The MRM framework includes: • Model risk governance that defines roles and responsibilities, including the authority to restrict model usage, provides policies and guidance, monitors compliance, and reports regularly to relevant internal committees and the Board of Directors on the overall degree of model risk across the firm; • Model development standards that focus on conceptual soundness and computational accuracy, data quality, robustness, stability, and sensitivity to assumptions; and • Model validation standards designed to verify that models are conceptually sound, are computationally accurate, are performing as expected, and are in line with their intended use, and evaluate the level of model risk for each model by considering the model’s materiality, usage, performance, and sufficiency of compensating controls among other factors.
New asset servicing mandates and servicing assets remaining to be installed in future periods exclude certain new business which has been contracted, but for which the client has not yet provided permission to publicly disclose or anonymously reference.
New investment servicing mandates and servicing assets remaining to be installed in future periods exclude certain new business which has been contracted, but for which the client has not yet provided permission to publicly disclose or anonymously reference.
Net Interest Income See Table 2: Total Revenue, for the breakout of interest income and interest expense for the years ended December 31, 2024, 2023 and 2022. NII is defined as interest income earned on interest-earning assets less interest expense incurred on interest-bearing liabilities.
Net Interest Income See Table 2: Total Revenue, for the breakout of interest income and interest expense for the years ended December 31, 2025, 2024 and 2023. NII is defined as interest income earned on interest-earning assets less interest expense incurred on interest-bearing liabilities.
Our Capital Policy is reviewed and approved annually by the Board’s RC. Global Systemically Important Bank We have been identified by the Financial Stability Board and the Basel Committee on Banking Supervision as a G-SIB.
Our Capital Policy is reviewed and approved annually by the RC of the Board. Global Systemically Important Bank We have been identified by the Financial Stability Board and the Basel Committee on Banking Supervision as a G-SIB.
Our macroeconomic forecasts used in determining the December 31, 2024 allowance for credit losses consisted of three scenarios reflecting different assumptions in GDP and unemployment, with the baseline scenario generally in line with market consensus of economic forecasts for GDP and unemployment.
Our macroeconomic forecasts used in determining the December 31, 2025 allowance for credit losses consisted of three scenarios reflecting different assumptions in GDP and unemployment, with the baseline scenario generally in line with market consensus of economic forecasts for GDP and unemployment.
Our securities finance business consists of three components: (1) an agency lending program for State Street Global Advisors managed investment funds with a broad range of investment objectives, which we refer to as the State Street Global Advisors lending funds; (2) an agency lending program for third-party investment managers and asset owners, which we refer to as the agency lending funds; and (3) security lending transactions which we enter into as principal, which we refer to as our prime services business.
Our securities finance business consists of three components: (1) an agency lending program for State Street Investment Management managed investment funds with a broad range of investment objectives, which we refer to as the State Street Investment Management lending funds; (2) an agency lending program for third-party investment managers and asset owners, which we refer to as the agency lending funds; and (3) security lending transactions which we enter into as principal, which we refer to as our prime services business.
(2) The charge-offs are primarily related to leveraged loans and a commercial real estate loan.
(2) The charge-offs are primarily related to commercial loans and a commercial real estate loan.
These limits are designed to mitigate undue concentration of market risk exposure, in light of the primarily non-proprietary nature of our trading activities. The risk appetite framework and associated limits are reviewed and approved by the Board’s RC.
These limits are designed to mitigate undue concentration of market risk exposure, in light of the primarily non-proprietary nature of our trading activities. The risk appetite framework and associated limits are reviewed and approved by the RC of the Board.
This adjustment is captured in the Other Adjustments line. The following table presents a roll-forward of the Basel III advanced approaches and standardized approach RWA for the years ended December 31, 2024 and 2023.
This adjustment is captured in the Other Adjustments line. The following table presents a roll-forward of the Basel III advanced approaches and standardized approach RWA for the years ended December 31, 2025 and 2024.
Consequently, no assumption should be drawn as to future revenue run rate from announced servicing AUC/A wins, as the amount of revenue associated with AUC/A, once installed, can vary materially.
Consequently, no assumption should be drawn as to future revenue run rate from announced servicing AUC/A wins, as the amount of revenue associated with AUC/A, once installed, can vary materially between mandates.
The 2023 Basel III Endgame Proposal would, among other things, eliminate the advanced approaches for monitoring risk-based capital adequacy in favor of a new standardized expanded risk-based approach that includes new standardized approaches for operational risk and CVA risk RWA components, and would also replace the existing market risk rule with the new FRTB framework.
The 2023 Basel III Endgame Proposal would, among other things, eliminate the advanced approaches for monitoring risk-based capital adequacy in favor of a new standardized expanded risk-based approach that includes new standardized methodologies for credit risk, operational risk and CVA risk components, and would also replace the existing market risk rule with the new FRTB framework.
The following section provides information related to significant events, as well as highlights of our consolidated financial results for the year ended December 31, 2024 presented in Table 1: Overview of Financial Results.
The following section provides information related to significant events, as well as highlights of our consolidated financial results for the year ended December 31, 2025 presented in Table 1: Overview of Financial Results.
CONSOLIDATED RESULTS OF OPERATIONS This section discusses our consolidated results of operations for 2024 compared to 2023 and should be read in conjunction with the consolidated financial statements and accompanying notes to the consolidated financial statements in this Form 10-K.
CONSOLIDATED RESULTS OF OPERATIONS This section discusses our consolidated results of operations for 2025 compared to 2024 and should be read in conjunction with the consolidated financial statements and accompanying notes to the consolidated financial statements in this Form 10-K.
These excluded assets, which from time to time may be significant, will be included in new asset servicing mandates and reflected in servicing assets remaining to be installed in the period in which the client provides its permission.
These excluded assets, which from time to time may be significant, will be included in new investment servicing mandates and reflected in investment servicing assets remaining to be installed in the period in which the client provides its permission.
Management fees for certain components of managed assets, such as ETFs, mutual funds and Undertakings for Collective Investments in Transferable Securities, are affected by daily average valuations of AUM.
Management fees for certain components of managed assets, such as ETFs, mutual funds and Undertakings for Collective Investment in Transferable Securities, are affected by daily average valuations of AUM.
Additional information about the commitments presented in Table 31: Other commercial commitments, except for purchase obligations, is provided in Note 12 to the consolidated financial statements in this Form 10-K.
Additional information about the commitments presented in Table 27: Other commercial commitments, except for purchase obligations, is provided in Note 12 to the consolidated financial statements in this Form 10-K.
Operational risk management is the second line function responsible for developing risk management policies and tools for assessing, measuring and monitoring operational risk; and • Operational Risk Management Framework: An established operational risk management framework supports and drives the identification, assessment, mitigation and monitoring of operational risk.
Operational risk management is the second line function responsible for developing risk management policies and tools for assessing, measuring and monitoring operational risk; and • Operational Risk Management Framework: An established operational risk management framework supports and drives the identification, assessment, mitigation, control and monitoring, and reporting of operational risk.
Executive management manages and oversees our operational risk through membership on risk management committees, including TORC and the Operational Risk and Controls Committee, each of which ultimately reports to a committee of the Board.
Executive management manages and oversees our operational risk through membership on risk management committees, including TORC and its subcommittee, the Operational Risk and Controls Committee, each of which ultimately reports to a committee of the Board.
Net New Business Over the five years ended December 31, 2024, net new business, which includes business both won and lost, has affected our servicing fee revenues by approximately 0% on average with a range of 0% to 1% annually and approximately 0% and 1% in 2024 and 2023, respectively.
Net New Business Over the five years ended December 31, 2025, net new business, which includes business both won and lost, has affected our servicing fee revenues by approximately 1% on average with a range of 0% to 2% annually and approximately 2% and 0% in 2025 and 2024, respectively.
Based on market conditions and other factors, including regulatory standards, we continue to reinvest the majority of the proceeds from pay-downs and maturities of investment securities in highly-rated U.S. and non-U.S. securities, such as federal agency MBS, sovereign debt securities and U.S. Tre asury and agency securities.
Based on market conditions and other factors, including regulatory standards, we continue to reinvest the majority of the proceeds from pay-downs and maturities of investment securities in highly-rated U.S. and non-U.S. securities, such as federal agency MBS, sovereign debt securities and U.S. Treasury and agency securities.
Limit breaches are addressed by ERM risk managers in conjunction with the business units, escalated as appropriate, and reviewed by the TMRC if material. In addition, we have established several action triggers that prompt immediate review by management and the implementation of a remediation plan.
Limit breaches are addressed by ERM risk managers in conjunction with the business units, escalated as appropriate, and reviewed by the TMRC. In addition, we have established several action triggers that prompt review by management and the implementation of a remediation plan.
It further defines responsibilities for measuring and monitoring risk against limits, and for reporting, escalating, approving and addressing exceptions. Our risk appetite framework is established by ERM, a corporate risk oversight group, in conjunction with the MRAC and the RC of the Board.
It further defines responsibilities for measuring and monitoring risk against limits, and for reporting, escalating, approving and addressing exceptions. Our risk appetite framework is established by ERM, a separate corporate risk oversight group, in conjunction with the ERC and the RC of the Board.
The MRAC provides oversight of our capital management, our capital adequacy, our internal targets and the expectations of the major independent credit rating agencies. In addition, MRAC approves our balance sheet strategy and related activities. The Board’s RC assists the Board in fulfilling its oversight responsibilities related to the assessment and management of risk and capital.
The ERC provides oversight of our capital management, our capital adequacy, our internal targets and the expectations of the major independent credit rating agencies. In addition, ERC approves our balance sheet strategy and related activities. The RC of the Board assists the Board in fulfilling its oversight responsibilities related to the assessment and management of risk and capital.
This group also establishes and approves market risk tolerance limits and trading authorities based on, but not limited to, measures of notional amounts, sensitivity, VaR and stress. Such limits and authorities are specified in our trading and market risk guidelines which govern our management of trading market risk.
This group also establishes and approves market risk tolerance limits and trading authorities based on, but not limited to, market risk measures such as notional amounts, sensitivities, VaR and stress. Such limits and authorities are specified in our trading and market risk guidelines which govern our management of trading market risk.
The Credit Risk group is also responsible, in conjunction with the business units, for defining the appetite for credit risk in the major sectors in which we have a concentration of business activities. These sector-level risk appetite statements, which include counterparty selection criteria and granular underwriting guidelines, are reviewed periodically and approved by either the FRC or Credit Committee.
The Credit Risk group is also responsible, in conjunction with the business units, for defining the appetite for credit risk in the major sectors in which we have a concentration of business activities. These sector-level risk appetite statements, which include counterparty selection criteria and granular underwriting guidelines, are reviewed periodically and approved by either the CMRC or CC.
The multiple scenarios are based on a 13-quarter horizon (or less depending on contractual maturity) with reversion period set to be 27 quarters, calculated by subtracting the 13-quarter period from an average 10-year/40-quarter business cycle. The contractual term excludes expected extensions, renewals and modifications, but includes prepayment assumptions where applicable.
The multiple scenarios are based on a 13-quarter horizon with reversion period set to be 27 quarters, calculated by subtracting the 13-quarter period from an average 10-year/40-quarter business cycle. The contractual term excludes expected extensions, renewals and modifications, but includes prepayment assumptions where applicable.
Additional information about deposits, federal funds purchased, securities sold under repurchase agreements and other short-term borrowings is provided in Note 8 to the consolidated financial statements in 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, 2024 did not represent the amounts that may ultimately be paid under the contracts upon settlement.
Additional information about deposits, securities sold under repurchase agreements and other short-term borrowings is provided in Note 8 to the consolidated financial statements in 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, 2025 did not represent the amounts that may ultimately be paid under the contracts upon settlement.
The Operational Risk and Controls Committee, chaired by the global head of operational risk, oversees the operational risk framework and policies, reviews and monitors program outputs and metrics, and monitors resolution of significant operational risk matters.
The Operational Risk and Controls Committee, chaired by the Head of Operational Risk Management, oversees the operational risk framework and policies, reviews and monitors program outputs and metrics, and monitors resolution of significant operational risk matters.
Our Tier 2 capital remained relatively flat as of December 31, 2024 compared to December 31, 2023, under the advanced approaches and standardized approach.
Our Tier 2 capital remained relatively flat as of December 31, 2025 compared to December 31, 2024, under the advanced approaches and standardized approach.
The higher levels of average cash balances with central banks reflect higher levels of client deposits. Liquid securities carried in our asset liquidity include securities pledged without corresponding advances from the Federal Reserve Bank of Boston (FRBB), the FHLB, and other non-U.S. central banks. State Street Bank is a member of the FHLB.
The higher levels of average cash balances with central banks is a result of an increase in client deposits. Liquid securities carried in our asset liquidity include securities pledged without corresponding advances from the Federal Reserve Bank of Boston (FRBB), the FHLB, and other non-U.S. central banks. State Street Bank is a member of the FHLB.
The majority of these securities comprised senior positions within the security structures; these positions have a level of protection provided through subordination and other forms of credit protection. As of December 31, 2024 and 2023, approximately 29% and 28%, respectively, of the aggregate carrying value of these non-U.S. debt securities was floating-rate.
The majority of these securities comprised senior positions within the security structures; these positions have a level of protection provided through subordination and other forms of credit protection. As of December 31, 2025 and 2024, approximately 32% and 29%, respectively, of the aggregate carrying value of these non-U.S. debt securities was floating-rate.
The SCB replaced, under the standardized approach, the CCB with a buffer calculated as the difference between the institution’s starting and lowest projected CET1 ratio under the CCAR severely adverse scenario plus planned common stock dividend payments (as a percentage of RWA) from the fourth through seventh quarter of the CCAR planning horizon.
The SCB replaced, under the standardized approach, the CCB with a buffer calculated as the difference between the institution’s starting and lowest projected CET1 ratios under the DFAST severely adverse scenario plus planned common stock dividend payments (as a percentage of RWA) from the fourth through seventh quarter of the DFAST planning horizon.
Second, these decisions may be reviewed, challenged, and confirmed by the MRC. Finally, model use decisions, risk ratings, and overall levels of model risk may be escalated to and reviewed by MRAC. MRM also reports regularly on model risk issues to the Board.
Second, these decisions may be reviewed, challenged, and confirmed by the MRC. Finally, model use decisions, risk ratings, and overall levels of model risk may be escalated to and reviewed by TORC. MRM also reports regularly on model risk issues to the ERC and Board.
Additional information is provided under “Loans” in “Financial Condition” in this Management’s Discussion and Analysis and in Note 4 to the consolidated financial statements in this Form 10-K. Expenses Table 14: Expenses, provides t he breakout of expenses for the years ended December 31, 2024, 2023 and 2022.
Additional information is provided under “Loans” in “Financial Condition” in this Management’s Discussion and Analysis and in Note 4 to the consolidated financial statements in this Form 10-K. Expenses Table 11: Expenses, provides t he breakout of expenses for the years ended December 31, 2025, 2024 and 2023.
We consider a well-diversified, high-credit quality investment securities portfolio to be an important element in the management of our consolidated statement of condition. Average duration of our investment securities portfolio, including the impact of hedges, was 2.2 years and 2.7 years as of December 31, 2024 and 2023, respectively.
We consider a well-diversified, high-credit quality investment securities portfolio to be an important element in the management of our consolidated statement of condition. Average duration of our investment securities portfolio, including the impact of hedges, was 2.1 years and 2.2 years as of December 31, 2025 and 2024, respectively.
Two primary risk assessment programs, which are supplemented by other business-specific programs, are the core of this component: • The Material Risk Identification process utilizes a bottom-up approach to identify our most significant risk exposures across on- and off-balance sheet risk-taking activities.
Two primary risk assessment programs, which are supplemented by other business-specific programs, are the core of this component: • 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.

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