STT 10-K & 10-Q changes, risk factors and insider trading

In the normal course of our business activities, we are exposed to a variety of risks. The following is a discussion of material risk factors applicable to us. Additional information about our risk management framework is included under “Risk Management” in Management’s Discussion and Analysis in this Form 10-K. Additional risks beyond those described in our Management’s Discussion and Analysis or in the following discussion may apply to our activities or operations as currently conducted, or as we may conduct them in the future, or in the markets in which State Street Corporation | 20 we operate or may in the future operate.

The markets in which we operate across all facets of our business are both highly competitive and global. These markets are changing as a result of financial and technological innovation and new and evolving laws and regulations applicable to financial services institutions. For example, the adoption and implementation of evolving and emerging technologies, such as artificial intelligence and distributed ledger technology, and related regulatory frameworks, have the potential to disrupt materially the activities of the financial services industry, the operation of financial markets, processes, infrastructure and service providers, including State Street, and the servicing and other requirements of financial services clients, including our clients. Market changes, macroeconomic developments and other factorsfactors, whether as a result of financial, technological or regulatory changes or otherwise, cannot always be anticipated, and may adversely affect the demand for, and profitability of, the products and services that we offer.offer, potentially materially. 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 infrastructureinfrastructure, 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. All of these effects may occur, regardless of our response to these financial, technological, regulatory or other changes, including our own investment in innovation, product development, business process optimization and regulatory compliance. Our efforts to develop and market new products, particularly in the “Fintech” sector including through State Street Alpha and Statebroader Streetdigital Digitalasset-related initiatives or in attractive areas of focus such as wealth servicing and alternative investment management, may position us in new markets with pre-existing or less regulated competitors with strong market position. 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 operationaloperating margins and may limit the positive impact of new client demand and growth in AUC/A.A or AUM. Many of our businesses compete with other domestic and international banks and financial services companies, such as custody banks, investment advisors, broker/dealers, outsourcing companies, information providers, data analytics and processing companies. Further consolidation within the financial services industry could also pose challenges to us in the markets we serve, including potentially increased downward pricing pressure across our businesses.

WeState areStreet subjectCorporation to| variability in our assets under custody and/or administration and assets under21 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.

Our clients include institutional investors, such as mutual funds, collective investment funds, UCITS, hedge funds and other investment pools, corporate and public retirement plans, insurance companies, official institutions, foundations, endowments and investment managers. 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. Due to the large pools of assets controlled by these clients, the loss or gain of one client, or even a portion of the assets controlled by one client, or a client’s decision to in-source certain services that we provide, could have a significant effect on our AUC/A or our AUM, as applicable, in the relevant period. Loss of all or a portion of the servicing of a client’s assets can occur for a variety of reasons. Our AUM or AUC/A are also affected by decisions by institutional owners to favor or disfavor certain investment instruments or categories. 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. As our fee revenue is significantly impacted by our levels of AUC/A and AUM, changes in levels of different asset classes could have a corresponding significant effect on our results of operations in the relevant period. 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 assetinvestment servicing and assetinvestment management lines of business. Our historical focus on the segments of the market for investor services represented by very large asset managers and asset owners causes us to be particularly impacted by this industry trend. Many of these large clients are also under competitive and regulatory pressures that are driving them to manage the expenses that they and their investment products incur more aggressively, which in turn exacerbates their pressures on our fees. As a result, the servicing fees we generate from any particular client, or any specific client mandate over time, may be less than the servicing fees we expect as a result of that client or mandate at the time we win that business.

Our financial performance depends, in part, on our ability to develop and market new and innovative services and to adopt or develop new technologies that differentiate our products, appeal to varied market segments or provide cost efficiencies, while avoiding increased related expenses. This dependency is exacerbated in the current “Fintech” environment, where financial institutions are investing significantly in evaluating and deploying new technologies, such as artificial intelligence and distributed ledger technology (e.g., blockchain and artificial intelligence),technology, and developing and marketing potentially industry-changing products, services and standards. Widespread adoption and rapid evolution of emerging technologies, including with respect to digital assets, such as stablecoins, as well as developments in the regulatory landscape relating to emerging technologies, such as the enactment and implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025 (GENIUS Act) and potential enactment of the Digital Asset Market Clarity Act of 2025 (CLARITY Act) or similar market structure legislation or regulation, may affect our clients’ needs and expectations for products and services. 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. 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. 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,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. New products or services may fail to operate or perform as expected and may not be suitable for the intended client or may not produce anticipated efficiencies, savings or benefits for either the client or us. Our failure to manage these risks and uncertainties also exposes us to enhanced risk of operational lapseslapses, regulatory noncompliance and third party claims, which may result in the recognition of financial statement liabilities. Regulatory and internal control requirements, capital requirements, competitive alternatives, vendor relationships and shifting market preferences may also determine if such initiatives can be brought to market in a manner that is timely and attractive to our clients. Failure to successfully manage all of the above risks in the development and implementation of new products or services, including State Street Alpha and those related to wealth servicing, alternative investment management or digital assetsassets, or incorporating artificial intelligence, could have a material adverse effect on our business and reputation, consolidated results of operations or financial condition.

We acquire complementary businesses and technologies, enter into strategic alliances and divest portions of our business. These transactions include joint ventures that we may subsequently acquire in full, change our ownership level of or divest entirely. 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 may not complete these transactions following announcement or we may not achieve the expected benefits of these transactions, which could result in increased costs, lowered revenues, ineffective deployment of capital, regulatory concerns, exit costs or diminished competitive position or reputation.

Transactions of this nature also involve a number of risks and financial, accounting, tax, regulatory, strategic, client relationship, managerial, operational, cybersecurity, cultural and employment challenges, which could adversely affect our consolidated results of operations and financial condition. For example, the businesses that we acquire or our strategic alliances or joint ventures may under-perform relative to the price paid or the resources committed by us; we may not achieve anticipated revenue growth, cost savings or operational improvements or efficiencies; or we may otherwise be adversely affected by acquisition-related charges. The intellectual property of an acquired business may be an important component of the value that we agree to pay for it. However, such acquisitions are subject to the risks that the acquired business may not own the intellectual property that we believe we are acquiring, that the intellectual property is dependent on licenses from third parties, that the acquired business infringes on the intellectual property rights of others, that the technology does not have the acceptance in the marketplace that we anticipated or that the technology requires significant investment to remain competitive. Similarly, such transactions present risks to our ability to retain the acquired clients and talent, which may be essential to achieve our financial and other objectives in the acquisition. The integration of an acquired business’ information technology infrastructure into ours has in the past and may in the future also expose us to additional cybersecurity and resiliency risks. Further, past acquisitions have resulted in the recognition of goodwill and other significant intangible assets in our consolidated statement of condition. For example, we recorded goodwill and intangible assets of approximately $2.46 billion associated with our acquisition of CRD in 2018. These assets are not eligible for inclusion in regulatory capital under applicable requirements. In addition, we may be required to record impairment in our consolidated statement of income in future periods if we determine that the value of these assets has declined. Divestitures additionally present risks of client dissatisfaction or loss, loss or restricted access to intellectual property and key talent, challenges presented by the post-divestiture operating model, contractual arrangements or responsibility for contingent or other liabilities of the divested business or reduced opportunities due to the effects of non-competition or other restrictive covenants.

Through our acquisitions or joint ventures, we may also assume unknown or undisclosed business, operational, tax, regulatory and other liabilities, fail to properly assess known contingent liabilities or assume businesses with internal control deficiencies. While in most of our transactions we seek to mitigate these risks through, among other things, due diligence, indemnification provisions or insurance, these or other risk-mitigating provisions we put in place may not be sufficient to address these liabilities and contingencies and involve credit and execution risks associated with successfully seeking recourse from a third party, such as the seller or an insurance provider. Other major financial services firms have paid significant penalties to resolve government State Street Corporation | 23 investigations into matters conducted in significant part by acquired entities.

The integration and the retention and development of the benefits of our acquisitions result in risks to our business and other uncertainties.

In recent years, we have undertaken acquisitions, including our 2025 acquisition of PriceStats, our 2024 acquisition of CF Global, our 2021 acquisition of Mercatus and our 2018 acquisition of CRD. The integration of acquisitions presents risks that differ from the risks associated with our ongoing operations. Integration activities are complicated and time consuming and can involve significant unforeseen costs. We may not be able to effectively assimilate services, technologies, key personnel or businesses of acquired companies into our business or service offerings as anticipated, and we may not achieve related revenue growth or cost savings. We also face the risk of being unable to retain, or cross-sell our products or services to, the clients of acquired companies or joint ventures and the risk of being unable to cross-sell acquired products or services to our existing clients. In particular, some clients, including significant clients, of an acquired business may have the right to transition their business to other providers on short notice for convenience, fiduciary or other reasons and may take the opportunity of the acquisition or market, commercial, relationship, service satisfaction or other developments following the acquisition to terminate, reduce or renegotiate the fees or other terms of our relationship. 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 toof 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. The risk of client loss is even greater where the client is a competitor of ours or has key strategic commercial relationships with our competitors. Acquisitions of Investment Servicing businesses entail information technology systems conversions, which involve operational risks, as well as fiduciary and other risks associated with client retention. Acquisitions of Asset Management businesses similarly involve fiduciary and similar risks associated with client retention, distribution channels and additional servicing opportunities, as well as potential cultural conflicts. Acquisitions of technology firms can involve extensive information technology integration, with associated risk of defects, security breaches and resiliency lapses and product enhancement and development activities, the costs of which can be difficult to estimate, as well as heightened cultural and compliance concerns in integrating an unregulated firm into a bank regulatory environment. Joint ventures involve all of these risks, as well as risks associated with shared control and decision-making (even in majority-owned situations), minority rights and exit rights, which can delay, challenge or foreclose execution on material opportunities or initiatives, create regulatory risks and limit divestment opportunities.

Our investment securities portfolio represented approximately 30%29% of our total assets as of December 31, 2024.2025. The gross interest income associated with our investment portfolio represented approximately 17% of our total gross revenue for the year ended December 31, 20242025 and has represented as much as 31% of our total gross revenue in the State Street Corporation | 25 fiscal years since 2007. As such, our consolidated financial condition and results of operations are materially exposed to the risks associated with our investment portfolio, including changes in interest rates, credit spreads, credit performance (including risk of default), and credit ratings, our access to liquidity and foreign exchange markets and mark- to-marketmark-to-market valuations, and our ability to profitably manage changes in repayment rates of principal with respect to our portfolio securities. Uncertain economic and monetary policy environments continue to drive risks for ongoing NII volatility. Managing reinvestment for both higher and lower rate outcomes will continue to be a challenge. Our consolidated financial condition and consolidated results of operations, including our capital ratios and share repurchase program, may differ from or be exacerbated by the effects of changes in interest rates and also may be volatile and difficult to predict, presenting even further challenges. In addition, certain regulatory liquidity standards, such as the LCR, require that we maintain minimum levels of HQLA in our investment portfolio, which generally generate lower rates of return than other investment assets. This has resulted in increased levels of HQLA as a percentage of our investment portfolio and an associated negative impact on our NII and our NIM. As a result, we may not be able to attain our prior historical levels of NII and NIM. For additional information regarding these liquidity requirements, refer to the “Liquidity Coverage Ratio and Net Stable Funding Ratio” section of “Supervision and Regulation” in Business in this Form 10-K. We may enter into derivative transactions to hedge or manage our exposure to interest rate risk, as well as other risks, such as foreign exchange risk and credit risk. Derivative instruments that we hold for these or other purposes may not achieve their intended results and could result in unexpected losses or stresses on our liquidity or capital resources.

Our investment securities portfolio represents a greater proportion of our consolidated statement of conditioncondition, andwhile our loan portfolio representsrepresented a smaller proportion (approximately 12%13% of our total assets as of December 31, 2024),2025, ina comparisonsmaller percentage relative to many other major financial institutions. In some respects, the accounting and regulatory treatment of our investment securities portfolio may be less favorable to us than a more traditional held-for-investment lending portfolio. For example, under the Basel III rule, after-tax changes in the fair value of AFS investment securities are recognized in AOCI and included in Tier 1 capital. Since loans held for investment are not subject to a fair value accounting framework, changes in the fair value of loans (other than expected credit losses) are not similarly included in the determination of Tier 1 capital under the Basel III rule. Due to this differing treatment, we may experience increased variability in our Tier 1 capital relative to other major financial institutions for which loan-and-lease portfolios represent a larger proportion of their consolidated total assets than ours. Additionally, accounting rules may constrain our ability to sell HTM securities, for example to generate liquidity in times of stress or if we are unable to monetize through repurchase agreements or use of the Federal Reserve’s discount window or other federal facilities at which we can pledge securities classified as HTM. Any decision to sell investment securities classified as HTM would likely require us to recognize all HTM securities at fair value, with any difference between amortized cost and fair value recognized in either AOCI (if transferred to AFS classification) or through earnings. Securities classified as AFS that have experienced a reduction in fair value below their amortized cost, reflect our determination, as of the relevant period end, that we did not have the intent to sell, nor was it more likely than not that we will be required to sell, any of those securities. If that determination changes in the future, we could be required to recognize a loss in earnings for the entire difference between fair value and amortized cost of those securities. Potential regulatory changes could also result in a decrease in our ability to include HQLA classified as HTM in our calculation of LCR, which could materially impact the calculation of that ratio.

•Asset class concentration. Our investment portfolio continues to have significant concentrations in several classes of securities, including agency residential MBS, commercial MBS and other ABS, and securities with concentrated exposure to consumers. These classes and types of securities experienced significant liquidity, valuation and credit quality deterioration during the financial crisis that began in mid-2007.mid-2007 (the 2008 financial crisis). We also hold non-U.S. government securities, non-U.S. MBS and ABS with exposures to European countries, whose sovereign-debt markets have experienced increased stress at times since 2011 and may continue to experience stress in the future. For further information, refer to the risk factor titled “WePolitical, have significant global operationsgeopolitical and clients,economic thatconditions canand bedevelopments could adversely impactedState byStreet disruptionsCorporation | 26 affect us, particularly if we face increased uncertainty and unpredictability in keymanaging economies,our including local, regional and geopolitical developments affecting those economiesbusinesses.”. Further, we hold a portfolio of U.S. state and municipal bonds, the value of which may be affected by the budget deficits that a number of states and municipalities currently face, resulting in risks associated with this portfolio.

•Effects of market conditions. If market conditions deteriorate, our investment State Street Corporation | 26 portfolio could experience a decline in market value, whether due to a decline in liquidity or an increase in the yield required by investors to hold such securities, regardless of our credit view of our portfolio holdings. In addition, in general, deterioration in credit quality, or changes in management’s expectations regarding repayment timing or in management’s investment intent to hold securities to maturity, in each case with respect to our portfolio holdings, could result in recognition of an allowance for expected credit losses or an impairment. Similarly, if a material portion of our investment portfolio were to experience credit deterioration, our capital ratios as calculated pursuant to the Basel III rule could be adversely affected. This risk is greater with portfolios of investment securities that contain credit risk than with holdings of U.S. Treasury securities. Both AFS and HTM securities in our investment portfolio carry liquidity risk if there is lower demand for either the sale or sale under repurchase agreement of these securities.

In our business activities, we assume interest rate risk by investing short-term deposits received from our clients in our investment portfolio of longer- and intermediate-term assets. Our NII and NIM, and ability to attract deposits from our clients, are affected by among other things, the levels of interest rates in global markets, changes in the relationship between short- and long-term interest rates, the direction and speed of interest rate changes and the asset and liability spreads relative to the currency and geographic mix of our interest-earning assets and interest-bearing liabilities. These factors are influenced, among other things, by a variety of economic and market forces and expectations, including monetary policy and other activities of central banks, such as the Federal Reserve and ECB, that we do not control. Our ability to anticipate changes in these factors or to hedge the related on- and off-balance sheet exposures, and the cost of any such hedging activity, can significantly influence the success of our asset and liability management activities and the resulting level of our NII and NIM. The impact of changes in interest rates and related factors will depend on the relative duration and fixed- or floating-rate nature of our assets and liabilities. Sustained lower interest rates, a flat or inverted yield curve and narrow credit spreads generally have a constraining effect on our NII. In addition, our ability to reduce deposit rates in response to declines in prevailing interest rates and other market and related factors is limited by client relationship considerations. The impact of interest rates on our investment portfolio and consolidated financial results, including AOCI, can also affect our ability to maintain our capital ratios within our target ranges as well as the amount and timing of our future share repurchases. For example, in the first half of 2022 unrealized losses on AFS securities within AOCI, driven by the significant increase in interest rates across the yield curve, contributed to a decrease in CET1 capital. 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.

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 also include collective investment funds, such as mutual funds, UCITSUCITS, 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. 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, UCITSUCITS, private market funds and hedge funds. Although we have procedures for monitoring both individual and aggregate counterparty risk, significant individual and aggregate counterparty exposure is inherent in our business, as our focus is on servicing large institutional investors.

This was observed during the 2008 financial crisis that began in 2007-2008,crisis, when economic, market, political and other factors contributed to the perception of many financial institutions and sovereign issuers as being less credit worthy. This led to credit downgrades of numerous large U.S. and non-U.S. financial institutions and several sovereign issuers (which exposure stressed the perceived creditworthiness of financial institutions, many of which invest in, accept collateral in the form of, or value other transactions based on the debt or other securities issued by sovereigns) and substantially reduced value and liquidity in the market for their credit instruments. These or other factors could again contribute to similar consequences or other market risks associated with reduced levels of liquidity. As a result, we may be exposed to increased counterparty risks, either resulting from our role as principal or because of commitments we make in our capacity as agent for some of our clients.

•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. Our use of unaffiliated subcustodians exposes us to operational, reputational and regulatory risk, as we are dependent upon the subcustodians in performing several of our services to clients in those markets. Operational risk includes risks of the legal and regulatory systems and market practices of the jurisdictions in which State Street Corporation | 28 the subcustodians operate. Our operating model exposes us to risk of unaffiliated subcustodians to a degree greater than some of our competitors who have banking operations in more jurisdictions than we do. The risks of maintaining custody services in such markets are amplified due to evolving regulatory and sanctions requirements with respect to our financial exposures in the event those subcustodians, or we, are unable to return, transfer or reinvest clients’ assets. In some regulatory regimes, such as the European Union’s UCITS V directive, we are subject to requirements that we be responsible for resulting losses suffered by our clients, and we may agree to similar or more stringent standards with clients that are not subject to such regulations. In addition, to the extent we maintain currencies on our consolidated balance sheet (where the client deposit liability is with State Street and State Street, as principal, maintains cash on deposit with a subcustodian or clearing agency) or are subject to regulatory requirements to return assets placed in custody, we are also subject to the risk of credit exposure to such subcustodians and clearing agencies. Depending upon the currency and jurisdiction of the client, a significant portion of our deposit exposure in non-U.S. currencies is recognized on our consolidated balance sheet. In some jurisdictions, such as Russia, sanctions programs or government intervention inhibit our clients’ and our ability to access or transfer cash or securities held for clients through subcustodians and clearing agencies. If such client deposit liabilities are on our consolidated balance sheet, we maintain a corresponding amount of cash on deposit with the subcustodian or clearing agency, which increases our credit exposure to that entity and can accumulate over time based upon distributions on, or other activities related to, our clients’ assets. If the subcustodian or clearing agency were to become insolvent in circumstances not involving expropriation of assets or other circumstances that excuse performance under force majeure or other provisions, the risk of loss on such cash on deposit would be ours rather than the clients. Currently, we hold cash on deposit with our subcustodian and clearing agencies in Russia, which amount is expected to increase materially over time as long as the sanctions and other restrictions remain in effect, and which currently is subject to restrictions on our ability to access such deposits. Our subcustodians are also directly affiliated with or are subsidiaries of large, global financial institutions with whom we have other credit exposures. 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. For additional information, see Note 1 to the consolidated financial statements in this Form 10-K.

•Settlement risks: We are exposed to settlement risks, particularly in our payments and foreign exchange activities. Those activities may lead to extension of credit and consequent losses in the event of a counterparty breach or an operational error, including the failure to provide credit. Due to our membership in several industry clearing or settlement exchanges, we may be required to guarantee obligations and liabilities, or provide financial support, in the event that other members do not honor their obligations or default. Moreover, not all of our counterparty exposure is secured, and even when our exposure is secured, the realizable value of the collateral may have declined by the time we exercise our rights against that collateral. This risk may be particularly acute if we are required to sell the collateral into an illiquid or temporarily-impaired market or with respect to clients protected by sovereign immunity. We are exposed to risk of short-term credit or overdraft of our clients in connection with the process to facilitate settlement of trades and related foreign exchange activities, particularly when contractual settlement has been agreed with our clients. The occurrence of overdrafts at peak volatility could create significant credit exposure to our clients depending upon the value of such clients’ collateral at the time. Our settlement-related activities and obligations are also subject to regulatory risk, including the risk of regulators globally accelerating the timeline to settlement, such State Street Corporation | 29 as the SEC’s recent rule to shorten the standard settlement cycle for securities transactions in the United States from trade date plus two business days (T+2) to trade date plus one business day (T+1), which became effective in May 2024. ThisImplementation ruleof similar rules in other jurisdictions presents the risk of non-compliance, as well as careful coordination with and dependencies on other industry participants and additional risks associated with technology development and State Street Corporation | 29 implementation, change management and operational errors, any of which could be material in light of the magnitude and volume of our settlement-related activities and obligations. These risks will also be relevant in other jurisdictions that may similarly change their settlement cycles.

•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. We invest in these loans to non-investment grade borrowers through participation in loan syndications in the non-investment grade lending market. WeOur rate State Street Corporation | 30 theseleveraged loans are primarily rated as “speculativesub-investment grade” under our internal risk-rating framework, and these loans have significant exposure to credit losses relative to higher-rated loans. We are therefore at a higher risk of default with respect to these investments relative to other of our investments activities. In addition, unlike other financial institutions that may have an active role in managing individual loan compliance, our investment in these loans is generally as a passive investor with limited control. Over time, our allowance for credit losses related to these loans has increased, and may in the future further increase, through additional provisions for credit losses.

•Commercial real estate: We finance commercial and multi-family properties, which serve as collateral for our loans. Although collateralized, these loans may become under-secured if the value of the collateral was over-estimated or declines. Loan payments are dependent on the successful operation and management of the underlying collateral property to generate sufficient cash flow to repay the loan in a timely fashion. A material decline in real estate markets or economic conditions could negatively impact value or property performance, which could adversely impact timely loan repayment, which may result in increased provision for credit losses on loans, and actual losses, either of which would have an adverse impact on our net income. We have observed these effects in 20242025 and 2023,2024, resulting in commercial real estate-related allowance for credit losses of $119 million and $102 million as of December 31, 2024.2025 and 2024, respectively. Were conditions, or our evaluation of conditions, in those or other markets to worsen in 20252026 or subsequent years, we could experience similar or more significant effects during those periods.

Under currently prevailing regulatory restrictions on credit exposure, we are required to limit our exposures to specific issuers or counterparties or groups of counterparties, including financial institutions and sovereign issuers. These credit exposure restrictions have and may further adversely affect certain of our businesses, may require that we expand our credit exposure to a broader range of issuers and counterparties, including issuers and counterparties that represent increased credit risk, may reduce or foreclose our ability to enter into advantageous transactions or ventures with particular counterparties and may require that we modify our operating models or the policies and practices we use to manage our consolidated statement of condition. The effects of these considerations may increase when evaluated under a stressed environment in stress testing, including CCAR.as part of the DFAST process. In addition, we are an adherent to the International Swaps and Derivatives Association 2015 Universal Resolution Stay Protocol and as such are subject to restrictions against the exercise of rights and remedies against fellow adherents, including other major financial institutions, in the event they or an affiliate of theirs enters into resolution. Although our overall business is subject to these factors, several of our activities are particularly sensitive to them including our currency trading business and our securities finance business. For a discussion of regulatory requirements applicable to our counterparty exposures, see “Enhanced Prudential Standards” under “Supervision and Regulation” in Business in this Form 10-K.

Given the limited number of strong counterparties in the current market, we are not able State Street Corporation | 31 to mitigate all of our and our clients’ counterparty credit risk.

We rely primarily on fee-based services to derive our revenue. This contrasts with commercial banks that may rely more heavily on interest-based sources of revenue, such as loans. During 2024,2025, total fee revenue represented approximately 78%79% of our total revenue. Fee revenue generated by our Investment State Street Corporation | 31 Servicing and Investment Management businesses is augmented by foreign exchange trading services, securities finance, software and processing fees and other fee revenue. The level of these fees is influenced by several factors, including the mix and volume of our AUC/A and our AUM, the value and type of securities positions held (with respect to AUC/A) and the volume of our clients’ portfolio transactions, and the types of products and services used by our clients. Our fee revenue would be negatively affected, potentially materially, by a decline in the market value of client portfolios resulting from a broad market correction or otherwise, especially in equity markets.

Because the demand for credit by our clients, particularly settlement relatedsettlement-related extensions of credit, is difficult to predict and control, and may be at its peak at times of disruption in the securities markets, and because the average maturity of our investment securities and loan portfolios is longer than the contractual maturity of our client deposit base, we need to continuously attract, and are dependent on access to, various sources of short-term funding. Since the 2008 financial crisis, the level of client deposits held by us has tended to increase during times of market disruption; however, since such deposits are considered to be transitory, we have historically deposited so-called excess deposits with U.S. and non-U.S. central banks and in other highly liquid instruments. These levels of excess client deposits, when they manifest, have increased our NII but have adversely affected our NIM. There can be no assurance that client behavior in a market disruption will be similar in the future or that our level of deposit funding will not decrease.

In managing our liquidity, our primary source of short-term funding is client deposits, which are predominantly transaction-based deposits by institutional investors. 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 relatedsettlement-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.

In addition, while not obligations of ours, the investment products that we manage for third parties may be exposed to liquidity risks. These products may be funded on a short-term basis or the clients participating in these products may have a right to the return of cash or assets on limited notice. These business activities include, among others, securities finance collateral pools, money market and other short-term investment funds and liquidity facilities utilized in connection with municipal bond programs. 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.

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. In the event of rising interest rates, disruptions in financial markets, negative perceptions of our business or our financial strength, or other factors that would increase our cost of borrowing, we cannot be sure of our ability to raise additional capital or debt, if needed, on terms acceptable to us. Any diminished ability to raise additional capital or debt, if needed, could adversely affect our business and our ability to implement our business plan, capital plan and strategic goals, including the financing of acquisitions and joint ventures, our efforts to maintain State Street Corporation | 33 regulatory compliance and optimize our capital management activities.

The risk that we may be perceived as less creditworthy than other market participants is higher as a result of recentin market developments,environments, which includemay anhave environmentrecently experienced and may experience in the future, in which the consolidation, and in some instances failure, of financial institutions, including major global financial institutions, has resulted in a smaller number of much larger counterparties and competitors. If our counterparties perceive us to be a less viable counterparty, our ability to enter into financial transactions on terms acceptable to us or our clients, on our or our clients’ behalf, will be materially compromised. If our clients reduce their deposits with us or select other service providers for all or a portion of the services we provide to them, our revenues will decrease accordingly.

In implementing various aspects of these capital and liquidity regulations, we are making State Street Corporation | 35 interpretations of the regulatory intent. The Federal Reserve may determine that we are not in compliance with their expectations regarding the capital rules or the liquidity rules and may require us to take actions to come into compliance that could adversely affect our business operations, our regulatory capital structure, our capital ratios or our financial performance, or otherwise restrict our growth plans or strategies.

As a G-SIB, we are generally subject to the most stringent provisions under the Basel III rule. For example, we are subject to the Federal Reserve's rules on the implementation of capital surcharges for U.S. G-SIBs, and on TLAC, LTD and clean holding company requirements for U.S. G-SIBs which we refer to as the “TLAC rule”. For additional information on these requirements, including the 2023 G-SIB Surcharge Proposal,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.

We are required by the Federal Reserve to conduct periodic stress testing of our business operations and to develop an annual capital plan and are subject to supervisory stress testing, all as part of the Federal Reserve’s stress testing and capital planning processes. The stress testing and capital planning processes, the severity and other characteristics of which may evolve from year-to-year, are used by the Federal Reserve to evaluate our management of capital and the adequacy of our regulatory capital and to determine the SCB that we must maintain above our minimum regulatory capital requirements in order for us to make capital distributions and discretionary bonuses without limitation. The results of the supervisory stress testing process are difficult to predict due,due to, 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 amounts of the planned capital actions in our capital plan in any year, including stock repurchases and dividends, may be substantially reduced from the amounts included in prior capital plans. These reductions may reflect changes in one or more different factors, including our business prospects and related capital needs, our capital position, proposed acquisitions or other uses of capital, the models used in our capital planning process, the supervisory models used by the Federal Reserve to stress our balance sheet, the Federal Reserve’s hypothetical economic scenarios for the supervisory stress testing process, the Federal Reserve’s stress testing instructions and the Federal Reserve’s supervisory expectations for the capital planning process. Any of these potential events could require us, as applicable, to revise our stress-testing or capital-management approaches, resubmit our capital plan or postpone, cancel or alter our planned capital actions. In addition, changes in our business strategy, merger or acquisition activity or uses of capital could result in a change in our capital plan and its associated capital actions, and may require us to resubmit our capital plan to the Federal Reserve, which could prompt the Federal Reserve to recalculate our SCB requirement. We are also subject to asset quality reviews and stress testing by the ECB and in the future we may be subject to similar reviews and testing by other regulators.

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. In the event that our implementation of capital and liquidity requirements under regulatory initiatives, or our current capital structure is determined not to conform with current and future capital requirements, our ability to deploy capital in the operation of our business or our ability to distribute capital to shareholders or to repurchase our capital stock may be constrained, and our business may be adversely affected. In addition, we may choose to forgo business opportunities, due to their impact on our capital plan or stress tests, including our SCB requirement. Likewise, in the event that regulators in other jurisdictions in which we have banking subsidiaries determine that our capital or liquidity levels do not conform with current and future regulatory requirements, our ability to deploy capital, our levels of liquidity or our business operations in those jurisdictions may be adversely affected.

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. As a financial institution with substantial international operations, we are subject to extensive regulation and supervisory oversight, both inside and outside of the U.S.United States. 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 dividend policy, our common share repurchase actions, our dividend policy, our acquisition activities and strategic relationships, the manner in which we market our services, our acquisition activitiesservices and our interactions with foreign regulatory agencies and officials.

We are unable to predict what, if any, changes to the regulatory environment may be enacted by Congress, both chambers of which will have amajority majoritycontrol 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 Statesnon-U.S. jurisdictions, or on the U.S.-domestic or global economies or financial markets. Some of the regulations finalized in the prior presidential administration that are applicable to financial institutions have been modified, rescinded or withdrawn or are subject to revaluation, creating further uncertainty.

Moreover, the turnover of thecurrent presidential administration ishas expected to result inmade certain changes in the leadership and senior staffs of the federal banking agencies.agencies, and may make additional changes in the future. Such 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 potential impact of any changes in agency personnel, policies, priorities and interpretations on the financial services sector, including us, cannot be predicted. Furthermore,Although fiduciary,the anti-competitive,presidential votingadministration power,has governance,indicated an intent to pursue the regulation of the financial services industry differently than was the case under the previous administration, there is significant uncertainty regarding the direction this will take, the implementation of new policies 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 businessobjectives, and the clientsultimate impact on potential new regulatory initiatives and the enforcement of existing laws and regulations. It is possible the expected changes in regulation do not occur or are reversed by a subsequent administration, or the regulatory measures that weare service,ultimately asenacted welldeliver as,significant ourcompetitive investmentadvantages servicingto activitiesfinancial moreservices broadlyfirms andthat ourare corporatestructured activities, practices and programs. Additional attentiondifferently or publicityserve associated with our asset management business due to this debate may result in additional scrutiny of, and litigation or regulatory enforcement regarding, thosedifferent or other ofmarkets ourthan asset management activities or our corporate, Investment Servicing or other activities, practices or programs.us.

We expect that our business will remain subject to extensive regulation and supervision. Several other aspects of the regulatory environment in which we operate, and related risks, are discussed below. Additional information is provided under “Supervision and Regulation” in Business in this Form 10-K.

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-FrankDodd- State Street Corporation | 37 Frank Act. Through resolution planning, we seek, in the event of insolvency, to maintain State Street Bank’s role as a key infrastructureservice 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.

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,obligations in each of those jurisdictions, including in areas that are receiving significant regulatory scrutiny. We are, therefore, subject to related risks of non-compliance, including fines, penalties, lawsuits, regulatory sanctions, difficulties in obtaining governmental approvals, limitations on our business activities or reputational harm, any of which may be significant. For example, the global nature of our client base requires us to comply with complex laws and regulations of multiple jurisdictions relating to economic sanctions and money laundering. In addition, we are required to comply not only with the U.S. Foreign Corrupt Practices Act, but also with the applicable anti-corruption laws of other jurisdictions in which we operate. Beyond the risks of non-compliance, these requirements potentially expose us to increased counterparty credit risk and exposures to our clients created due to complications associated with compliance, including country risk, market risk, restrictions on asset transfers and inability to access assets. 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, resiliencyresiliency, privacy and outsourcing oversight requirements imposed upon them. Regulatory scrutiny of compliance with these and other laws and regulations is increasingsignificant and compliance with the regulatory expectations of multiple regulators in a complex and continuously evolving market, technology and threat environment is challenging and also may, in some respects, impede the implementation of our global operating model that is central to both delivery of client service requirements and cost efficiency. We sometimes face inconsistent laws and regulations across the various jurisdictions in which we operate. 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. 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.

In addition to U.S. regulatory initiatives, we are further affected by non-U.S. regulatory initiatives, including the implementation of the Basel prudential framework, the E.U. Digital Operational Resilience Act, the Markets in Crypto-Assets Regulation, Corporate Sustainability Reporting Directive and Sustainable Finance Disclosures Regulation, as well as proposalsamendments for amendingto the AIFM Directive, the Capital Requirements Directive and other legislation under the E.U. Capital Markets Union Action Plan. Recent, proposed or potential regulations in the United StatesStates, 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. Concerns regarding the liquidity and valuation of prime money market funds and similar products, as well as potential related regulation, may adversely impact the cash management products we offer. In addition, anti-competitive, voting power, governance and other concerns with passive investment strategies and large investment managers continue to be the subject of legislative and regulatory debate and activity which could significantly impact both our assetinvestment management business and the clients that we service.

OVERVIEW OF FINANCIAL RESULTS AND HIGHLIGHTS

20242025 financialPerformance performanceHighlights

•Total revenue increased 9%7% compared to 2023, primarily2024, driven by higher fee revenue and NIInet andinterest the impact of the loss on sale of investment securities notable item in the prior year period. The prior year notable item represented 3% points of the increase.income:

•Pre-tax margin of 26.1%26.8% increased from 19.4%26.1% in 2023,2024, primarilywhile reflecting higher total revenue and lower total expenses. Returnreturn on equity of 11.1%11.5% increased from 8.2%11.1% in 2023, primarily reflecting higher total revenue and lower total expenses.2024.

◦Loss•In 2024, notable items reduced income before income tax expense by $188 million, including a net loss on sale of investment securities of $81 million related to an investment portfolio repositioningrepositioning, reflecteda indeferred compensation expense acceleration of approximately $79 million and other income.notable items of $30 million, net.

•AUC/A of $46.56$53.80 trillion as of December 31, 20242025 increased 11%16% compared to December 31, 2023,2024, primarily due to higher period-end market levels and client flows. In 2024,2025, newly announced assetinvestment servicing mandates totaled approximately $2.33$2.12 trillion of AUC/A. We onboarded approximately $1.35$2.12 trillion of AUC/A during 2024.2025. ServicingInvestment servicing State Street Corporation | 60 assets remaining to be installed in future periods totaled approximately $2.99$2.50 trillion as of December 31, 2024.2025.

•AUM of $4.72$5.67 trillion as of December 31, 20242025 increased 15%20% compared to December 31, 2023,2024, primarily due to higher period-end market levels and net inflows.

•In 2024,2025, we returned approximately $2.2$2.1 billion to our shareholders in the form of common share repurchases and common stock dividends compared to approximately $4.6 billion in 2023.dividends.

◦We acquired an aggregate of 11.5 million shares of common stock at an average per share cost of $104.05 and an aggregate cost of approximately $1.2 billion. In 2024, we acquired an aggregate of 15.1 million shares of common stockstock, at an average per share cost of $85.89 and an aggregate cost of approximately $1.3 billion. In 2023, we acquired an aggregate of 49.2 million shares of common stock, at an average per share cost of $77.22 and an aggregate cost of approximately $3.8 billion. These purchases were all conducted under the share repurchase programsprogram approved by our Board of Directors.

•Our standardized CET1 capital ratio was 11.6% as of December 31, 2025, compared to 10.9% as of December 31, 2024, comparedprimarily due to 11.6% as of December 31, 2023, primarily driven by increased capital returngenerated andfrom higher deployment of RWA for business growth,earnings, partially offset by continued capital generated from earnings.return. Our Tier 1 leverage ratio decreasedincreased to 5.5% as of December 31, 2025, compared to 5.2% as of December 31, 2024, compared to 5.5% as of December 31, 2023, mainly driven by capital generated from earnings and higher preferred equity, partially offset by continued capital return and higher average balance sheet levels. GivenOur thetarget current global economic environment, and our plansranges for capital actions, we expect our CET1 capital ratio and Tier 1 leverage ratio toratios remain within or above our target ranges ofat 10-11% and 5.25-5.75%, respectively. Standardized capital ratios were binding for both periods.

State Street Corporation, referred to as the Parent Company, was organized in 1969 under the laws of the Commonwealth of Massachusetts, and is a bank holding company that has elected to be treated as a financial holding company under the Bank Holding Company Act of 1956. The Parent Company is a source of financial and managerial strength to our subsidiaries. Through our subsidiaries, including our principal banking subsidiary, State Street Bank and Trust Company, referred to as State Street Bank, we operate in more than 100 geographic markets worldwide, providing a broad range of financial products and services to institutional investors globally. As of MarchJune 31,30, 2026, we reported $54.52$57.86 trillion in AUC/A and $5.62$6.28 trillion in AUM.

We had consolidated total assets of $392.17$418.38 billion, consolidated total deposits of $293.34$319.55 billion, consolidated total shareholders' equity of $27.74$28.27 billion and approximately 51,000 employees, as of MarchJune 31,30, 2026.

Additional information about our lines of business is provided in "Line of Business Information" in this Management's Discussion and Analysis and Note 17 to the consolidated financial statements in this Quarterly Report on Form 10-Q for the quarter ended MarchJune 31,30, 2026 (Form 10-Q).

These significant accounting policies require the most subjective or complex judgments, and underlying estimates and assumptions could be subject to revision as new information becomes available. For additional information about these significant accounting policies refer to “Significant Accounting Estimates” included under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, in our 2025 Form 10-K. We did not change these significant accounting policies in the first threesix months of 2026.

Terminology such as “expect,” “outlook,” “will,” “goal,medium-term,” “outlook,” “target,” “opportunity,” “strategy,” “may,strategic,” “estimate,driver,” “plan,priority,” “intend,assumption,” “illustrative,” “framework,” “forecast,” “guidance,” “objective,” “forecast,” “believe,” “priority,plan,” “anticipate,” “seek,” “may,” “trend,” “goal,” “estimate,” “intend,” “aim,” “outcome,” “future,” “pipeline,” and “trend,trajectory,” or similar statements or variations of such terms, are intended to identify forward-looking statements, although not all forward-looking statements contain such terms.

•Competition for qualified members of our workforce is intense, and we may not be able State Street Corporation | 5 to attract and retain the highly skilled people we need to support our business.

•We could be adversely affected by political, geopolitical, economic and market conditions, State Street Corporation | 5 including, for example, as a result of liquidity or capital deficiencies (actual or perceived) by other financial institutions and related market and government actions, changes in U.S. trade or other policies or those policies of other nations, the ongoing conflicts in Ukraine and in the Middle East, major political shifts domestically or internationally (including the potential for retaliatory actions by governments, market participants or clients based on diverging perspectives or otherwise and, separately, the recent shutdown of the U.S. federal government), actions taken by central banks in an attempt to address prevailing economic conditions, changes in monetary policy or periods of significant volatility in the markets for equity, fixed income and other asset classes globally or within specific markets;

•We could face liabilities for withholding and other non-income taxes, including in connection with our services to clients, as a result of tax authority examinations; and State Street Corporation | 6

Forward-looking statements should not be viewed as predictions and should not be the primary basis on which investors evaluate State Street. Any investor in State Street should consider all risks and uncertainties disclosed in our SEC filings, including our filings under the Securities Exchange Act of 1934, in particular our annual reports on Form 10-K, our quarterly reports on Form 10-Q and our current reports on Form 8-K, and our registration statements filed under the Securities Act of 1933, all of which are accessible on the SEC's website at www.sec.gov or State Street Corporation | 7 on the "Filings & reports" and "Fixed Incomeincome" tabs of our website at investors.statestreet.com.

The following section provides information related to significant events, as well as highlights of our consolidated financial results for the firstsecond quarter of 2026 presented in Table 1: Overview of Financial Results. More detailed information about our consolidated financial results, including the comparison of our financial results for the three and six months ended MarchJune 31,30, 2026 compared to the same periodperiods of 2025, 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-Q. 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 2025 period to the relevant 2026 period results.

FirstSecond Quarter of 2026 Performance Highlights

•Total revenue increased 16%17% in the firstsecond quarter of 2026, compared to the same period of 2025, driven by higher fee revenue,revenue and net interest income and the impact of currency translation, which contributed 2% points of the increase.income.

◦Total fee revenue increased 15%17% in the firstsecond quarter of 2026, compared to the same period of 2025, primarily reflecting higher management fees, servicing fees and foreign exchange trading services revenue.

◦NII increased 17%18% in the firstsecond quarter of 2026, compared to the same period of 2025, primarily driven by an increase of 1617 bps in NIM and a 1% increase in average interest-earning assets.NIM.

•Total expenses increased 15%5% in the firstsecond quarter of 2026, compared to the same period of 2025, primarily reflecting the impact of notable items in the current year period, higher revenue-related costs,costs and continued investmentsstrategic andinvestments, partially offset by the negative impactabsence of currencyprior-year translation,notable which contributed 2% points of the increase.items. See “Notable Items” below.

•Pre-tax margin of 25.5%34.3% in the firstsecond quarter of 2026 increased from 25.0%25.8% in the same period of 2025, while return on equity of 11.6%16.7% in the firstsecond quarter of 2026 increased from 10.6%10.8% in the same period of 2025.

•Earnings per share (EPS) of $2.49$3.65 in the firstsecond quarter of 2026 increased 22%68% as compared to the same period of 2025, primarily driven by higher total revenue,revenue partiallyand offsetgrowth byin higherpre-tax total expenses.margin.

•NotableIn the second quarter of 2025, notable items reduced income before income tax expense by $130$138 millionmillion, in the first quarter of 2026,net, including a repositioning charge of $89$100 million andmillion, a client rescoping of $41$42 million.million, Thereand were noother notable items inof the$(4) firstmillion. quarterThe client rescoping of 2025.$42 million included $24 million reflected as a reduction in software services revenue and $18 million reflected in information systems and communications expenses.

•AUC/A of $54.52$57.86 trillion as of MarchJune 31,30, 2026, increased 17%18% compared to MarchJune 31,30, 2025, primarily due to higher market levels, client flows and net new business. In the firstsecond quarter of 2026, newly announced investment servicing mandates totaled approximately $365$384 billion of AUC/A. We onboarded approximately $220$228 billion of AUC/A in the firstsecond quarter of 2026. Investment servicing State Street Corporation | 8 assets remaining to be installed in future periods totaled approximately $2.75$2.93 trillion of AUC/A as of MarchJune 31,30, 2026.

•AUM of $5.62$6.28 trillion as of MarchJune 31,30, 2026, increased 20%23% compared to MarchJune 31,30, 2025, primarily due to higher market levels and net inflows.

•In the firstsecond quarter of 2026, we returned a total of $633$631 million to our shareholders in the form of common share repurchases and common stock dividends.

◦In the firstsecond quarter of 2026, we acquired an aggregate of 3.22.5 million shares of common stock at an average per share cost of $125.94$159.63 and an aggregate cost of $400 million. These purchases were all conducted under the share repurchase program approved by the Board.

•Our standardized CET1 capital ratio decreased to 10.6%10.8% as of MarchJune 31,30, 2026, compared to 11.6% as of December 31, 2025, primarily due to a normalization in RWA from episodically low levels inat theDecember prior31, quarter, the impact of markets,2025 and continued capital return, partially offset by capital generated from earnings. Our Tier 1 leverage ratio was 5.4%5.3% as of MarchJune 31,30, 2026, compared to 5.5% as of December 31, 2025, mainly driven by continued capital return and higher average balance sheet levels, partially offset by capital generated from earnings. Our target ranges for the CET1 capital and Tier 1 leverage ratios remain at 10-11% and 5.25-5.75%, respectively. Standardized capital ratios were binding for both periods.

This section discusses our consolidated results of operations for the firstthree quarterand ofsix months ended June 30, 2026 compared to the same periodperiods of 2025 and should be read in conjunction with the consolidated financial statements and accompanying notes to the consolidated financial statements in this Form 10-Q.

Table 2: Total Revenue, provides the breakout of fee revenue for the firstthree quartersand ofsix months ended June 30, 2026 and 2025. Servicing and management fees collectively made up approximately 72%70% of total fee revenue infor both the firstthree quartersmonths ofended June 30, 2026 and 2025, and 71% for both the six months ended June 30, 2026 and 2025.

Servicing fees, as presented in Table 2: Total Revenue, increased 11%13% and 12% in the firstthree quarterand ofsix months ended June 30, 2026, respectively, compared to the same periodperiods of 2025, primarily reflecting higher average market levels, client activity and asset flows and thenet benefitnew of currency translation, which contributed 3% points of the increase.business.

Servicing fees generated outside the United States were approximately 49% and 47%50% of total servicing fees in both the firstthree quartersand six months ended June 30, 2026, compared to approximately 49% and 48% in the same periods of 2026 and 2025, respectively.

Client activity and asset flows are impacted by the number of transactions we execute on behalf of our clients, including FX settlements, equity and derivative trades, and wire transfer activity, as well as actions by our clients to change the asset class in which their assets are invested. Our servicing fee revenues are impacted by a number of factors, including transaction volumes, asset levels and asset classes in which funds are invested, as well as industry trends associated with these client-related State Street Corporation | 10 activities.

Investment servicing mandates newly announced in the firstsecond quarter of 2026 totaled approximately $365$384 billion of AUC/A. With respect to the current investment servicing mandates of approximately $2.75$2.93 trillion of AUC/A that are yet to be installed as of MarchJune 31,30, 2026, we expect the conversion will mostly occur over the coming 24 months, with approximately 70%65% expected to be installed in the remainder of 2026, with the balance expected to be installed largely inthroughout 2027.2027 and 2028. The expected timing of these installations is subject to change due to a variety of factors, including adjusted implementation schedules agreed with clients, scope adjustments, and product and functionality changes.

Management fees increased 23%29% and 26% in the firstthree quarterand ofsix months ended June 30, 2026, respectively, compared to the same periodperiods of 2025, primarily due to higher average market levels and net inflows.

Management fees generated outside the United States were approximately 23% of total management fees in both the firstthree quarterand ofsix months ended June 30, 2026, compared to approximately 25% of total management fees24% in the same periodperiods of 2025.

Management fees generally are affected by our level of AUM, which we report based on month-end valuations. 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. Management fee revenue is more sensitive to market valuations than servicing fee revenue, as a higher proportion of the underlying services provided, and the associated management fees earned, are dependent on equity and fixed-income security valuations. Additional factors, such as the relative mix of assets managed, may have a significant effect on State Street Corporation | 11 our management fee revenue. While certain management fees are directly determined by the values of AUM and the investment strategies employed, management fees may reflect other factors, including performance fee arrangements, as well as our relationship pricing for clients.

Foreign exchange trading services revenue, as presented in Table 2: Total Revenue, increased 29%26% and 27% in the firstthree quarterand ofsix months ended June 30, 2026, respectively, compared to the same periodperiods of 2025, primarily due to higher client volumes.

Foreign exchange trading services revenue comprises revenue generated by FX trading and revenue generated by brokerage and other trading services, which made up 74%77% and 26%,23%, respectively, of foreign exchange trading services revenue in the firstsecond quarter of 2026, compared to 71%73% and 29%,27%, respectively, in the same period of 2025.

Securities finance revenue, as presented in Table 2: Total Revenue, increased 2%19% and 11% in the firstthree quarterand ofsix months ended June 30, 2026, respectively, compared to the same periodperiods of 2025, primarily due to higher client lending balances.balances in both agency lending and prime services.

Software services revenue, as presented in Table 2: Total Revenue, increaseddecreased 7%2% in the firstthree quartermonths ofended June 30, 2026, compared to the same period of 2025, primarily due to higherlower professionalon-premises renewals reflecting elevated renewal activity in the prior year period, partially offset by the absence of a prior-year notable item. Software services revenue increased by 2% in the six months ended June 30, 2026, compared to the same period of 2025, reflecting the absence of a prior-year notable item and higher software and data revenue.revenue, partially offset by lower on-premises renewals.

Other fee revenue increased 9% and 8% in the firstthree quarterand ofsix months ended June 30, 2026, respectively, compared to the same periodperiods of 2025, primarily due to higher FX and market-related adjustments, partially offset by lower lending-relatedfair value adjustments and otherequity fees.investment income.

See Table 2: Total Revenue, for the breakout of interest income and interest expense for the firstthree quarterand ofsix months ended June 30, 2026, compared to the same periodperiods of 2025.

NII increased 18% and 17% in the firstthree quarterand ofsix months ended June 30, 2026, respectively, compared to the same periodperiods of 2025, primarily driven by an increaseincreases of 17 bps and 16 bps in NIMNIM, and a 1% increase in average interest-earning assets. Currency translation contributed 3% points of the increase.respectively.

See Table 10: Average Balances and Interest Rates - Fully Taxable-Equivalent Basis, for the breakout of NII for the firstthree quarterand ofsix months ended June 30, 2026, compared to the same periodperiods of 2025.

(2) Reflects the impact of balance sheet netting under enforceable netting agreements of approximately $228.35$215.77 billion and $222.03 billion for the firstthree quarterand ofsix months ended June 30, 2026, respectively, compared to $232.47$252.79 billion and $242.69 billion for the same periodperiods of 2025. Excluding the impact of netting, the average interest rates would be approximately 0.26%0.27% for both the firstthree quarterand ofsix months ended June 30, 2026, compared to 0.27% and 0.28% for the same periodperiods of 2025.

(3) Average loans are presented on a gross basis. Average loans net of expected credit losses were approximately $48.42$49.92 billion and $49.17 billion for the firstthree quarterand ofsix months ended June 30, 2026, respectively, compared to $43.56$45.11 billion and $44.34 billion for the same periodperiods of 2025.

(4) Reflects the impact of balance sheet netting under enforceable netting agreements of approximately $10.92$13.45 billion and $12.19 billion for the firstthree quarterand ofsix months ended June 30, 2026, respectively, compared to $9.28$9.54 billion and $9.41 billion for the same periodperiods of 2025. Excluding the impact of netting, the average interest rates would be approximately 3.60%3.59% for both the firstthree quarterand ofsix months ended June 30, 2026, compared to 4.33% for the same periodperiods of 2025.

(5) Average rate includes the impact of FX swap costs of approximately $($294) million and $(33) million for the firstthree quarterand ofsix months ended June 30, 2026, respectively, compared to $($8342) million and $(125) million for the same periodperiods of 2025. Average rates for total interest-bearing deposits excluding the impact of FX swap costs were 2.45%2.46% for both the firstthree quarterand ofsix months ended June 30, 2026, compared to 3.07%2.94% and 3.00% for the same periodperiods of 2025.

(6) Total deposits averaged $258.08$270.35 billion and $264.25 billion for the firstthree quarterand ofsix months ended June 30, 2026, respectively, compared to $243.04$260.75 billion and $251.94 billion for the same periodperiods of 2025.

(7) Reflects the impact of balance sheet netting under enforceable netting agreements of approximately $10.60$13.02 billion and $11.82 billion for the firstthree quarterand ofsix months ended June 30, 2026, respectively, compared to $8.46$9.82 billion and $9.14 billion for the same periodperiods of 2025. Excluding the impact of netting, the average interest rates would be approximately 3.71%3.77% and 3.74% for the firstthree quarterand ofsix months ended June 30, 2026, respectively, compared to 4.62%4.87% and 4.74% for the same periodperiods of 2025.

Average total interest-earning assets were $293.11$305.41 billion and $299.29 billion in the firstthree quarterand ofsix months ended June 30, 2026, respectively, compared to $289.52$304.65 billion and $297.12 billion in the same periodperiods of 2025. The increase is primarily due to higher levels of client deposits, partially offset by lower wholesale funding.

Interest-bearing deposits with banks averaged $100.36$103.68 billion and $102.03 billion in the firstthree quarterand ofsix months ended June 30, 2026, respectively, compared to $92.78$98.32 billion and $95.57 billion in the same periodperiods of 2025. These deposits primarily reflect our maintenance of cash balances at the Federal Reserve, the ECB and other non-U.S. central banks. The higher levels of average cash balances reflect higher levels of client deposits.

Securities purchased under resale agreements is primarily composed of our FICC repo business and averaged $8.05$8.13 billion and $8.09 billion in the firstthree quarterand ofsix months ended June 30, 2026, respectively, largely unchanged compared to $7.72$9.17 billion and $8.45 billion in the same periodperiods of 2025. As a member of FICC, we may net securities sold under repurchase agreements against those purchased under resale agreements with counterparties that are also members of the clearing organization, when specific netting criteria are met. The impact of balance sheet netting wasdeclined $228.35to $215.77 billion and $222.03 billion on average in the firstthree quarterand ofsix months ended June 30, 2026, respectively, compared to $232.47$252.79 billion and $242.69 billion in the same periodperiods of 2025.2025, due to lower gross FICC repo volumes.