State Street Corporation Announces Results of CCAR 2018

State Street Corporation (NYSE:STT) today announced that the Federal Reserve did not object to the Company's capital plan as part of the 2018 Comprehensive Capital Analysis and Review (CCAR) process. The capital plan includes an increase in the common stock dividend and a new common stock purchase program. In connection with its non-objection, the Federal Reserve is requiring State Street to enhance the management and analysis of counterparty exposures under stress. The Company is not expected to resubmit its capital plan after completing these enhancements.

Given this year’s severe stress scenario, State Street took a conservative approach in developing its capital plan submission. The capital plan includes an increase to the quarterly common stock dividend to $0.47 per share, from $0.42 per share, beginning in the third quarter of 2018. State Street’s Board of Directors will consider this increase in common stock dividend at its regularly scheduled meeting in July 2018. Additionally, State Street’s Board has approved a new common stock purchase program authorizing the purchase of up to $1.2 billion of its common stock. This program was included in the capital plan submitted in April and will be effective during the period of July 1, 2018 through June 30, 2019.

State Street’s third quarter 2018 common stock and other stock dividends, including the declaration, timing and amount thereof, remain subject to consideration and approval by State Street’s Board of Directors at the relevant times. The timing of any repurchases, type of transaction and number of shares purchased under the newly authorized common stock purchase program will depend upon various factors, including alternative investment opportunities, such as merger and acquisition activity, internal capital generation, market conditions, State Street’s capital position, the amount of common stock issued as part of employee compensation programs and other factors. Stock purchases may be made using various types of transactions, including open-market purchases, accelerated share repurchases or other transactions off the market, and may be made under Rule 10b5-1 trading programs. The common stock purchase program does not have specific price targets and may be suspended at any time.