State Street Corporation Announces Federal Reserve Authorization to Resume Share Repurchases in First Quarter of 2021
State Street Corporation (NYSE: STT) today commented on the results of its 2020 resubmission stress test, included in the Federal Reserve’s supervisory stress test results for covered institutions announced earlier today. State Street also announced its authorization by the Federal Reserve to resume specified capital actions during the first quarter of 2021.
“We are pleased with our strong performance under this year’s second round of Federal Reserve stress tests, which is another testament to our business model’s resiliency and capital stability. Throughout 2020, amidst the pandemic, our robust balance sheet and capital position has enabled us to operate effectively, help stabilize the financial markets, and actively support our clients. We now look forward to returning excess capital to our shareholders in the new year.” said Chairman and Chief Executive Officer Ron O’Hanley.
State Street has been authorized to continue to pay common stock dividends at current levels and to resume repurchasing common shares in the first quarter of 2021 in an aggregate amount up to the average of State Street’s quarterly net income during 2020. In addition, State Street may redeem or make scheduled payments on other capital instruments. Any dividend, share repurchases or actions with respect to capital instruments are subject to review and approval by the Board of Directors of State Street.
The results of the Federal Reserve’s supervisory test results, based on its own methodology, can be found at: https://www.federalreserve.gov.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $36.6 trillion in assets under custody and/or administration and $3.1 trillion* in assets under management as of September 30, 2020, State Street operates globally in more than 100 geographic markets and employs approximately 39,000 worldwide. For more information, visit State Street's website at www.statestreet.com.
* Assets under management as of September 30, 2020 includes approximately $81 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.
Forward Looking Statements
This News Release (contains forward-looking statements within the meaning of United States securities laws, including statements about our goals and expectations regarding our plans for capital actions including the resumption of share repurchases, the payment of dividends and the redemption or making of scheduled payments on other capital instruments), business, financial and capital condition, results of operations, strategies, the financial and market outlook, governmental and regulatory initiatives and developments, and the business environment. Forward-looking statements are often, but not always, identified by such forward-looking terminology as “will,” “outlook,” “guidance,” “expect,” “priority,” “objective,” “intend,” “plan,” “forecast,” “believe,” “anticipate,” “estimate,” “seek,” “may,” “trend,” “target,” “strategy” and “goal,” or similar statements or variations of such terms. These statements are not guarantees of future performance, are inherently uncertain, are based on current assumptions that are difficult to predict and involve a number of risks and uncertainties. Therefore, actual outcomes and results may differ materially from what is expressed in those statements, and those statements should not be relied upon as representing our expectations or beliefs as of any time subsequent to the time this News Release is first issued.