State Street Corporation Reports Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016
January 25, 2017 at 12:00 pm
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State Street Corporation reported consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company reported GAAP-Basis total revenue was $2,530 million compared to $2,538 million a year ago. Net income available to common shareholders was $557 million or $1.43 per diluted share compared to $547 million or $1.34 per diluted share a year ago. Return on average common equity was 12.1% against 11.6% a year ago. Total revenue on non-GAAP basis was $2,749 million against $2,588 million a year ago. Non-GAAP net income available to common shareholders was $577 million or $1.48 per diluted share against $494 million or $1.21 per diluted share a year ago. Fourth-quarter of 2016 GAAP-basis effective tax rate was -72.3% compared to 11.4% in the third-quarter of 2016 and 15.1% in the fourth-quarter of 2015. The fourth-quarter of 2016 reflects a reduction of $145 million in accrued tax expense attributable to the designation of certain of foreign earnings as indefinitely invested overseas and tax benefits of $66 million from incremental foreign tax credits and a foreign affiliate tax loss. Fourth-quarter of 2016 operating-basis effective tax rate was -1.5% compared to 30.3% in the third-quarter of 2016 and 31.8% in the fourth-quarter of 2015. Excluding the $145 million reduction of accrued tax expense and the $66 million of tax benefits from capital actions, the operating-basis effective tax rate in the fourth-quarter of 2016 was 34% which was higher than both the third-quarter of 2016 and the fourth-quarter of 2015 due to an increase in alternative energy investments.
For the year, the company reported GAAP-Basis total revenue was $10,207 million compared to $10,360 million a year ago. Net income available to common shareholders was $1,968 million or $4.97 per diluted share compared to $1,848 million or $4.47 per diluted share a year ago. Return on average common equity was 10.5% compared to 9.8% a year ago. Total revenue on non-GAAP basis was $10,752 million against $10,629 million a year ago. Non-GAAP net income available to common shareholders was $2,087 million or $5.27 per diluted share against $2,022 million or $4.89 per diluted share a year ago.
State Street Corporation is a financial holding company organized around 2 areas of activity:
- investment services (83.1% of net sales): services intended mainly to mutual funds, collective investment funds, corporate and public retirement plans, insurance companies and foundations. The group provides services including custody, daily pricing, record keeping and administration, shareholder services, foreign exchange, brokerage and other trading services, securities finance, loan and lease financing, investment manager and hedge fund manager operations outsourcing, performance, risk and compliance analytics;
- investment management (16.9%). State Street Corporation offers, primarily to institutional investors, investment management and investment research services for managing financial assets, including passive and active United States and non-United States equity and fixed-income.
The United States accounts for 55.1% of net sales.
STATE STREET CORPORATION 
