1. How do you add value? + State Street 2005
1 value defined
8 shareholder letter
14 customer value
36 financial summary
48 corporate information
49 board of directors
50 executive leadership
52 worldwide locations
State Street Corporation
How do you add value? State Street is the worldÕs leading provider of financial services to institutional investors. Our broad and integrated range of
State Street Financial Center services spans the entire investment spectrum including research, investment management, trading services and investment
One Lincoln Street servicing. Our competitive advantage lies in our focus and the commitment of more than 20,000 employees operating in 26
State Street 2005
Boston, Massachusetts 02111-2900
countries around the world. Because of this focus, we can continually invest in our business and build dynamic, long-term
+1 617 786 3000
relationships with our customers. In doing so, we deliver a value and service that customers cannot get anywhere else.
www.statestreet.com
For more information, visit www.statestreet.com.
Design and content by State Street Global Marketing 05-STT0423
Photography by Andy Ryan, Tom Kates and Getty Images © 2006 STATE STREET CORPORATION

2. 2005 Financial Highlights $ millions, except per share data
2005(1) 2004(2) $ Change % Change
Total revenue(3) $ 4,951 $ 522 11%
$ 5,473
Total operating expenses 3,759 282 8
4,041
Income from continuing operations 798 147 18
945
Net income 798 40 5
838
Earnings per share from continuing operations:
Basic $ 2.38 $ .48 20
$ 2.86
Diluted 2.35 .47 20
2.82
Earnings per share:
Basic $ 2.38 $ .15 6
$ 2.53
Diluted 2.35 .15 6
2.50
Cash dividends declared per share .64 .08 13
.72
Return on shareholdersÕ equity from continuing operations 13.3%
15.3%
Return on shareholdersÕ equity 13.3
13.6
Diluted Earnings Per Share Total Revenue
2005 was a year of goals set and met. From Continuing Operations
(1) In 2005, we recorded a loss from discontinued operations of $107 million (2) In 2004, operating expenses included $62 million, or $.12 per share, of (1) 2002 earnings per share included the gain on the sale of the divested (3) 2004 earnings per share included GSS acquisition merger and integration
(charge of $165 million reduced by related tax benefit of $58 million), merger and integration costs related to the acquisition of a substantial Corporate Trust business of $.90 per share. costs of $.12 per share.
or $.32 per share, related to a plan to divest our ownership interest in Bel portion of the Global Securities Services, or ÒGSSÓ, business of Deutsche (2) 2003 earnings per share included the combined gains on sales of the (4) 2002 total revenue included the gain on the sale of the divested Corporate
Air Investment Advisors LLC. Bank AG. Excluding these costs, diluted earnings per share from continuing divested Corporate Trust and Private Asset Management businesses of Trust business of $495 million.
operations for 2004 were $2.47. $.68 per share, and combined charges for divestiture costs, GSS acquisition (5) 2003 total revenue included the combined gains on sales of the divested
(3) On a taxable-equivalent basis, total revenue for 2005 of $5.52 billion merger and integration costs, restructuring expenses, settlement of a state Corporate Trust and Private Asset Management businesses of $345 million
increased $519 million, or 10%, from $5.00 billion in 2004. tax matter and a loss on certain real estate sold equal to $.86 per share. and a loss on certain real estate sold of $13 million.

3. Value is more than just numbers.

4. More than late nights at the office.
STT 2

5. Bigger than ideas.
STT 3

6. It transcends geographies.
STT 4

7. And lines of communication.
STT 5

8. 28 consecutive years of operating earnings per share growth + operations in
U.K. authority wins + 2.4 million trade settlements averaged per month + 9 new
+ 6,000 employees involved in volunteer projects + more than 10 years in hedge
on FX Connect¨ + serving 37% of the U.S. pension and tax-exempt market +
years in business + No. 1 manager of institutional assets worldwide + more
19 percent of retail and institutional fund assets in Germany + more than 3,200
operating expenses invested in technology + new regional data within State
+ $382 billion in transition management assets + double-digit growth in fee and
Exchange Trading PlatformÓ + servicing $2.8 trillion in assets for investment
quantitative investment management approach + more than 20,000 employees
of exchange-traded funds worldwide + $1.4 million donated to global disaster
under management + enhanced my.statestreet.com + 27 consecutive years
management + up to 23,000 foreign exchange trades per week matched by GTSS
than $640 billion assets under administration in Asia-Pacific + top rated in
+ 34,000 hours of community service invested by employees + 13 independent
products + ÒNo. 1 investment manager in EuropeÓ + custody services for more
35 countries + 414,000 Fed wire transfers averaged per month + Global Alpha
+ ÒWorldÕs Best Bank in Asset ManagementÓ + 4 new offices opened in 2005
of trust assets in Japan held by non-domestic banks + 31% of U.S. mutual
portfolios measured by WM Performance Services + $130 billion in hedge
STT 6

9. 26 countries + more than $10 trillion in assets under custody + 4 new local
exchange-traded funds launched + 80% of new revenue from existing customers
fund servicing + exceeded $45 billion in daily foreign exchange trading volume
trust and valuation services for more than 4,500 daily priced portfolios + 213
than $500 billion offshore assets serviced + Depotbank services for more than
information technology professionals worldwide + 20-25 percent of annual
Street Investor Confidence Index¨ + 37% of workforce outside the United States
total revenue + 40% of U.S. mutual funds serviced + ÒBest Multibank Foreign
manager operations outsourcing + 51 active stock selection strategies with
worldwide + 19% of U.K. pension fund assets serviced + Second largest manager
relief efforts + 834 investment servicing wins + more than $1.4 in trillion assets
of biannual dividend increases + 27% growth in global equity assets under
+ 4.1 million automated clearinghouse transactions averaged per month + more
hedge fund administration + £57 billion in quantitative active equity strategies
directors + top 100 customers average a 14-year relationship and use 12.8
than 20% of fund assets in Canada + securities finance customers in more than
Plus investment strategy launched + 39% of revenue generated outside the U.S.
+ ÒBest CustodianÓ + 837 portfolio transitions completed + more than 36%
fund net assets values published daily to the NASDAQ + 5,000 investment
fund assets under administration + 1,252 new investment management wins
ItÕs more.
STT 7

10. 2005 Headlines 01.06.05 Named Investment Service Provider to MexicoÕs Profuturo GNP + 01.10.05 State Street Global Advisors
To Our Shareholders
+ Joseph C. Antonellis + Ronald E. Logue + William W. Hunt + Joseph L. Hooley
Executive Vice President and Chairman and Executive Vice President, Executive Vice President,
Chief Information Officer, Chief Executive Officer, State Street Corporation; Global Head of Investor Services,
State Street Corporation State Street Corporation President and Chief Executive Officer, State Street Corporation
State Street Global Advisors
STT 8

11. Launched Pooled Asset Liability Matching Solution + 01.11.05 Ranked First by International Securities Finance Magazine in its 2004 Combined Beneficial
State Street delivered value in 2005.
We delivered value to our shareholders, our customers, our employees and the communities in
which we operate. We achieved this value by focusing on delivering for our customers, executing our
plan against our goals, performing consistently for our shareholders, providing more opportunities for
our employees, and continuing to give back to the communities where we do business.
Our goals for 2005 included growth in operating earnings per share of between 10 and 15 percent,
growth in operating revenue of between 8 and 12 percent, and operating return on shareholdersÕ equity
of between 14 and 17 percent. We achieved these goals, increasing operating earnings per share from
continuing operations by 14 percent and operating revenue by 10 percent and recording return on
shareholdersÕ equity from continuing operations of 15.3 percent. Assets under custody hit an all-time
high of $10.1 trillion and assets under management rose to a record $1.4 trillion.
2005 was our 28th consecutive year of operating earnings per share growth and our 27th consec-
utive year of dividend increases, which rose 12 percent. We also repurchased 13 million shares of our
stock, putting our share count at 334 million shares outstanding, just as it was at the end of 2004.
I measure the yearÕs achievements in four ways.
Financial
We remained focused on the bottom line in 2005, carefully balancing revenue growth with contin-
ued expense management. This focus allowed us to generate positive operating leverage for the year,
an objective I set out to accomplish when I took over as chairman and chief executive officer in July
2004, and one that I continue to target. I view our 2005 results as a start, and an indication that we
are heading in the right direction.
Business growth across the company helped fuel our revenue increase in 2005. We added more
than 2,000 new investment servicing and investment management wins in 2005, a result of our strong
sales culture and our ability to execute. State Street Global Advisors (SSgA), our investment management
arm and the largest institutional asset manager in the world, also posted significant growth in 2005 and
improved its contribution to State Street overall. SSgA now represents 21 percent of State StreetÕs total
pretax income, up from 17 percent a year ago.
We continued to deepen existing customer relationships and expand new product capabilities.
These factors, combined with new business growth, enabled us to deliver what I consider to be better
top-line performance than our peers.
STT 9

12. Owner and Borrower Rankings Assessment + 01.14.05 Received $2 Billion Pension Plan Business from ChevronTexaco Corp. + 01.31.05 Celebrated 10 Years
We continue to see significant opportunities for growth outside of the United States, which
accounted for 39 percent of State StreetÕs revenue in 2005, up from 37 percent at the end of 2004.
I have set a goal of increasing this number to 50 percent over time, fueled in part by the growth of savings
and retirement assets in Europe and the Asia-Pacific region and the globalization of investing.
In addition to revenue growth, positive operating leverage was achieved through expense control.
By monitoring our headcount, adding mainly to support new business wins and by better aligning our
real estate portfolio with our needs, we slowed our rate of expense growth. Our strengthened and more
cost-effective global servicing model, shaped in part by new regulatory requirements, helped us to better
serve our customers in the locations where they do business. We now have processing hubs in multiple
locations around the world including Canada and India.
The centralized treasury group that we formed early in 2005 has improved management of our
balance sheet, which is driven by customer liabilities. To better position State Street for rising interest rates,
in 2005 we expanded the investment portfolio and adjusted the mix of investments to include higher
yielding floating-rate securities, ending the year with a conservatively invested portfolio, 95 percent of
which was AA rated or better.
Customer
State StreetÕs singular focus on providing large, global institutional investors with unparalleled
service and value remained a differentiator for our company in 2005. Our ability to handle complex
transactions, create innovative solutions and improve efficiencies helped us to attract new customers
and add significant value to our existing customer relationships around the world.
2,086 14% growth in operating earnings per share
new investment servicing and
from continuing operations
investment management wins
STT 10

13. in Kansas City + 02.22.05 Appointed by Brandywine Asset Management to Provide Managed Account Outsourcing Services + 02.25.05 Named ÒBest CustodianÓ
Major wins that fell into the expanded business category in 2005 included a landmark investment
manager operations outsourcing renewal from Scottish Widows Investment Partnership in Edinburgh,
extending our relationship with this customer well into a second decade. The yearÕs biggest investment
servicing win, from Columbia Management Advisors, LLC, the asset management arm of Bank of America,
gave State Street a key role in one of the largest fund integrations in the history of the mutual fund
industry. This piece of business expands upon our existing relationship with a fund family that was
acquired by Bank of America and illustrates our ability to earn the trust and confidence of our customers,
as does another investment servicing appointment from Charles Schwab Investment Management for
$149 billion in assets. Two wins from Volkswagen Group Ð one in the United Kingdom and the other in
Germany Ð are further proof of our ability to expand many of the custody and accounting relationships
we established years ago.
We also established many new customer relationships in 2005 in all major geographies and
across all our capabilities. These relationships include conducting one of the largest-ever portfolio
transitions for a customer in Japan and providing servicing and management for a wide range of pension
and investment schemes in Europe and Asia-Pacific. State StreetÕs ability to develop new products and
services for both new and existing customers continues to set us apart.
State Street Global Advisors played an important role during the year in helping to enhance AsiaÕs
bond markets as manager of the ABF Pan Asia Bond Index Fund, a key component of the Asian Bond
Fund 2, an initiative developed by a group of 11 central banks and monetary authorities designed to
provide governments with an additional source of credit. The fund invests in the local currency debt of
eight countries in Asia, increasing investors access to this vital region of the world.
28
10% consecutive years of growth in
increase in operating revenue
operating earnings per share
STT 11

14. by The Asset magazine + 02.28.05 Named ÒEuropean Mutual Fund Administrator of The YearÓ by ICFA magazine + 03.01.05 State Street Global Advisors
Product innovation continues to be a focus for us. State Street Global Advisors developed several
new strategies including Global Alpha Plus, an innovative investment strategy designed to achieve
consistent excess returns. It also launched a number of liability-driven investment strategies aimed at
better matching assets to liabilities for pension funds. SSgAÕs growing active product array contributed
to more than half of its net new revenue in 2005. With a renewed focus on exchange-traded funds, SSgA
also launched nine new ETFs during the year, including the SPDR¨ Dividend, and saw strong growth
in some of its innovative approaches such as the streetTRACKS¨ Gold Shares.
Our research and trading capabilities, including foreign exchange, equity execution, transition
management and securities finance activities, also posted record results in 2005. Daily trading volume
on FX Connect, our multibank electronic trading system, surpassed $45 billion and State Street
¨
remained the unmatched leader in transition management, managing more than $380 billion in
portfolio transitions during the year. Continued demand for our quantitative investment research led us
to expand our successful State Street Investor Confidence Index, which now includes regional views
¨
for Europe, North America and the Asia-Pacific region.
As we advance our effort to serve customers in all the markets where they do business, we
strengthened our presence in 2005 in Switzerland, the Netherlands and Hong Kong, and opened
a representative office in Beijing, China. These markets will play an important role in our goal to
increase revenue outside the United States.
Governance
State Street has made several recent changes to its corporate governance policies. First, we created
a new chief compliance officer position charged with centralizing and overseeing State StreetÕs compliance
program. Our board of directors Ð 13 out of 14 of whom qualify as independent under the New York
Stock Exchange listing standards Ð are now elected annually, eliminating three-year terms of the past.
Shareholders also now annually ratify the appointment of our auditors, Ernst & Young LLP. In 2005, the
board adopted a majority voting standard requiring a director or nominee who receives a ÒwithholdÓ
vote from the majority of outstanding shares in an uncontested election of directors to submit his or
her resignation, to be considered by the Nominating and Corporate Governance Committee.
STT 12

15. Named ÒBest of the BestÓ by Asia Asset Management Magazine + 03.03.05 Received Top Honors for the Third Consecutive Year in International Fund
Talent
Great companies are built around extraordinary individual execution. We must continue to invest
in State StreetÕs future by developing and leveraging our deep pool of talented professionals. Today, we
are investing in our employees at a higher level than ever before. In 2005, we added more training,
enhanced our salary and promotions process, and undertook several initiatives to move executives
within State Street globally to provide a deeper bench of talent that supports our succession planning.
One such example is the appointment in 2005 of Bill Hunt, an 11-year company veteran, to lead
State Street Global Advisors.
State Street employees continue to give their time and money to improve the communities
where we live and work. In a year of unprecedented natural disasters around the world, State Street
colleagues offered their help and support to a variety of relief efforts, while continuing to support local
charitable endeavors. More than a quarter of our workforce invested approximately 30,000 hours of
volunteer time around the globe last year. Giving back is an inherent part of the State Street culture
and a source of great corporate pride.
In 2005, I believe State Street became a stronger, more efficient and more focused company. As we
move into 2006, IÕm encouraged that our business pipeline remains strong, and that weÕre executing
well against our strategic objectives. For 2006, we have once again set financial goals of achieving revenue
growth between 8 and 12 percent, earnings per share growth between 10 and 15 percent and return on
shareholdersÕ equity between 14 and 17 percent. We are currently targeting the middle of those ranges.
In my 18 months as State StreetÕs chairman and CEO, conversations with our customers have
assured me of one thing: When customers come to State Street, they get a value they cannot find
anywhere else. We delivered that value in 2005, and I will keep working to build on that value for
all of our stakeholders in the future.
Sincerely,
Ronald E. Logue
Chairman and Chief Executive Officer
STT 13

16. Investment WeeklyÕs European ETF Awards + 03.08.05 Won Investment Servicing Business from Bank of AmericaÕs Asset Management Arm, Columbia
FOCUSEFFICIEN
SERVICEEXPERI
COMMITMENTC
INTEGRATIONAC
INNOVATIONEXP
At State Street, delivering value is the bottom line. It lies at the heart of
For one customer, it may represent streamlined operations or an innovative
returns and creates growth. We measure value in our customersÕ success
STT 14

17. Management + 03.30.05 Achieved Top Rankings in Global InvestorÕs 2005 Foreign Exchange Survey + 04.21.05 Opened State Street Financial Center
CYLEADERSHIP
NCESOLUTIONS
USTOMIZATION
CURACYDEPTH
ERTISERETURN
everything we do. Its definition is as unique as each customerÕs objectives.
trading solution. For another, itÕs a complex investment strategy that boosts
and deliver value to our shareholders because of it. Our value starts here.
STT 15

18. in Zurich, Switzerland + 05.02.05 Retained by Oregon State Treasury to Service $60 Billion in Assets + 05.11.05 Celebrated 15 Years in Canada
Scottish Widows Investment Partnership
STT 16

19. + 05.12.05 Named to Manage $1 Billion ABF Pan Asia Bond Index Fund + 05.26.05 Expanded Reporting and Analysis Capabilities for Securities Finance
27,000 holdings
4,000 asset lines
500 unitized prices
generated daily
5 year partnership
+ 8 year contract renewal
The value we deliver lies in our unwavering commitment. In 2000, Scottish Widows Investment Partnership (SWIP), one
of EuropeÕs largest investment managers, sought to integrate its investment manager operations following a large consolidation
at parent company Lloyds TSB.
State StreetÕs relationship with Lloyds TSB as primary custodian was transformed into a landmark outsourcing arrangement
with SWIP to provide global custody, fund accounting, trustee/depository and investment manager operations services on its
entire range of life, pension and investment products. The arrangement was renewed in 2005, a testament to our commitment
to SWIP and our collective success in the growing investment manager operations outsourcing market.
STT 17

20. Customers + 05.26.05 Opened Beijing Office + 06.06.05 Won Seven ÒBest in ClassÓ Honors in PlanSponsor MagazineÕs 2005 Transition Management
+ Janette Allen
Outsource Relationship Manager,
Scottish Widows Investment Partnership
+ Charlie Hogg
Senior Manager, Process Improvement Team,
Scottish Widows Investment Partnership
+ Derek Crooks
Business Systems Manager,
Scottish Widows Investment Partnership
+ Alan Robertson
Head of Outsource Relationship Management,
Scottish Widows Investment Partnership
Following its acquisition by Lloyds TSB, Edinburgh-based SWIP wanted to integrate the investment administration functions
of its four component businesses. At the time, SWIP employed seven third-party providers, five processing centers and operated
eight different systems platforms. Outsourcing its investment manager operations to a third party gave SWIP the ability to better
focus on its core capability Ð investment management Ð and accurately forecast its operational costs.
State Street consolidated SWIPÕs operations and shifted assets to a single platform in 11 months Ð six months ahead of
schedule. Support was also provided for the launch of 220 new funds and various fund conversions. Today more than 500 unitized
prices are being generated daily for SWIP funds. Administration costs have been reduced and are now more predictable.
STT 18

21. Survey + 06.08.05 Named WorldÕs Largest Institutional Fund Manager by Pensions & Investments Magazine + 06.16.05 Announced $.01 Increase in
+ Alison McDonald
Vice President,
+ John Lyons
Institutional Fund Services,
Head of Investment Support & Control,
State Street
Scottish Widows Investment Partnership
+ David Calderwood
Vice President,
Collective Fund Services,
State Street
+ Ian Kennedy
Head of Investment Accounting,
Scottish Widows
Investment Partnership
ÒThe partnership weÕve had with State Street has helped us to be very
flexible about new products that we would like to bring to market and
changes we want to make to respond to our clientsÕ changing needs.Ó
Chris Phillips, Chief Executive of Scottish Widows Investment Partnership
+ Alan Findlay
Vice President and Department Head,
Collective Fund Services,
State Street
When the outsourcing contract came up for renewal, SWIP did a comprehensive market search, but chose to remain with
State Street. Together, State Street and SWIP are shaping a new aspect of the outsourcing industry and finding more efficient
ways to deliver information and services to fund investors and institutional clients. Common goals, vision and commitment have
allowed that to happen.
STT 19

22. Quarterly Dividend, to $.18 per share + 06.23.05 Appointed to Service New United Kingdom Pension Protection Fund + 06.27.05 Named Among Best
+ Daniel Kern, CFA
Vice President, Charles Schwab
Investment Management
+ David Rosenberg
Vice President, Charles Schwab
Investment Management
+ Mei-Luh Lee
Director, Charles Schwab
Investment Management
Charles Schwab Investment Management
STT 20

23. Places to Work in Information Technology by Computerworld + 07.11.05 Received Top Rankings in Global Custodian Hedge Fund Administration Survey
$149B in assets serviced
67 funds managed
105 share classes
+ 1 leading provider
Our customers find value in increased efficiency. When Charles Schwab Investment Management (CSIM) sought to
streamline its complex back-office accounting and administration functions, it turned to State Street. Our integrated fund
accounting and custody services, along with our experience across all asset types, enabled one of the largest U.S. mutual fund
firms to run a more efficient operation that included improved reporting for its shareholders.
STT 21

24. + 07.15.05 Named ÒBest at Investor Services in North AmericaÓ by Euromoney Magazine + 07.21.05 FX Connect Named Best Multibank Foreign Exchange
+ John D. Fitch
Vice President, U.S. Mutual Fund Accounting,
State Street
+ Kyle F. Moran
Vice President,
U.S. Mutual Fund Administration,
State Street
Years of excellent service helped turn an existing relationship into one of State StreetÕs largest wins last year. In the late
1980s, State Street began providing custody services to a California investment firm that later became AXA Rosenberg Group.
In 2004, when CSIM became the fundsÕ new investment advisor and launched a new fund family called the Laudus Funds,
State Street continued as one of CSIMÕs seven service providers.
STT 22

25. Trading Platform for Institutional Investors by FXWeek Magazine + 08.02.05 Won Staffordshire County Council $600 Million Investment Servicing
+ Thresa B. Dewar
Vice President,
U.S. Mutual Fund Administration,
State Street
+ John J. Cronin
Assistant Vice President,
U.S. Mutual Fund Custody,
State Street
ÒWe needed to consolidate a very complex model with a variety of service
providersÉ I canÕt think of anything we are doing or will do that State
Street hasnÕt seen.Ó
Dan Kern, Vice President, Charles Schwab Investment Management
When multiple service relationships proved inefficient for CSIM, it decided to create a new and simplified servicing
structure. State StreetÕs breadth of integrated product offerings, our expertise in servicing complex mutual funds and strong
technology infrastructure helped CSIM create the efficiency it wanted. Today, CSIM has a provider servicing $149 billion of
assets, a simpler and scalable operating structure, a more efficient shareholder reporting process and a long-lasting partnership
that is delivering value.
STT 23

26. Business + 08.22.05 Awarded a £75 Million Investment Management Contract from RAC Pension Scheme + 08.24.05 Appointed Service Provider to
Volkswagen Group
STT 24

27. Four Local UK Pension Fund Authorities + 08.30.05 Selected to Manage $330 Million for Assuranceforeningen Skuld of Norway + 09.06.05 Reappointed
Û1.4B portfolio transition
80 transition management
professionals
£70M asset management win
+ 8 year partnership
Value can be defined by experience. Institutional investors operating in todayÕs evolving regulatory environment need a
partner who knows the territory. As a global investment manager and investment service provider, State Street helped EuropeÕs
largest carmaker execute two pension fund strategies designed to improve investment returns. In each case, a combination of
extensive industry knowledge and experience with global pension funds led Volkswagen to choose State Street.
STT 25

28. Global Custodian by Liontrust Asset Management PLC + 09.08.05 Named to Service $3.3 Billion for Banco de Guatemala + 09.13.05 Named
+ Louisa Vincent
Vice President, Client Service,
State Street Global Advisors
State Street has provided depotbank services in Germany to VolkswagenÕs corporate treasury funds since 1997. During
this time, the relationship has expanded to include additional services such as commission recapture, which has helped the
carmaker increase operational efficiency and save on brokerage fees.
In 2001, Volkswagen became the first German company to launch a defined contribution pension plan. Over the next four
years, State Street administered the plan while the company continually looked for ways to improve returns. When Volkswagen
decided to change its asset allocation and investment management strategy, State StreetÕs transition management team provided
the solutions and resources needed to restructure the portfolio. State Street is the leading provider of transition management
services to institutional investors, with teams throughout Europe, North America and Asia-Pacific.
STT 26

29. ÒWorldÕs Best Bank in Asset ManagementÓ by Global Finance Magazine + 09.19.05 Completed Û1.4 Billion Portfolio Transition for Volkswagen Pension
+ Kevin Anderson
Vice President,
Global Fixed Income,
State Street Global Advisors
+ Simon Roe
Vice President, Enhanced Equity,
State Street Global Advisors
ÒState Street Global Advisors had the strength, resources and experience
to provide us with the solutions aligned with our investment goals.Ó
Roy Platten, Staff Benefits & Policy Manager for
Volkswagen Group United Kingdom Ltd.
To effectively transition its portfolio, Volkswagen needed access to advanced trading strategies and high-quality liquidity.
State Street Global Markets, State StreetÕs research and trading arm, provided those resources and seamlessly executed the
Û1.4 billion transition, helping Volkswagen gain access to a new, more appropriate investment strategy.
A separate piece of business last year in London enabled us to further expand our relationship with this key customer.
State Street Global Advisors, our investment management arm, was appointed manager of £70 million of assets in VolkswagenÕs
pension scheme for workers in the United Kingdom. The win consisted of an enhanced U.K. equity strategy and a passive U.K.
fixed income strategy. State Street Global AdvisorsÕ experience with a range of passive and active, including enhanced, investment
strategies will help Volkswagen add value while controlling investment risk.
STT 27

30. Fund + 09.27.05 Renewed Landmark Investment Manager Operations Outsourcing Contract with Scottish Widows Investment Partnership + 09.27.05
+ Kate Thompson + Mike Clarke + Kevin Connaughton
Assistant Treasurer, Columbia Funds Chief Accounting Officer, Columbia Funds CFO and Treasurer, Columbia Funds
+ Jeff Coleman + Mary Beth Pilat + Regina Mak
Deputy Treasurer, Columbia Funds Assistant Treasurer, Columbia Funds Technology Manager, Columbia Funds
Columbia Management Advisors, LLC
STT 28

31. Named to Service $21 Billion for State of Connecticut + 10.05.05 Launched Global Alpha Plus Investment Strategy + 10.06.05 Appointed by Sanofi
290 accounting conversions
227 custody conversions
89 fund mergers
5 year relationship
+ $250B asset servicing contract
Value is delivered through integrated solutions. In 2005, State Street began servicing $250 billion in assets for Columbia
Management, the asset management arm of Bank of America. This important win followed a series of mergers involving the
Liberty Funds Group, and later Columbia Management, which had been a State Street customer for four years.
When Bank of America decided to consolidate operations for three of its fund families into Columbia Management, it
chose State Street to help complete one of the largest integrations in mutual fund history.
STT 29

32. Aventis to Manage an Û800 Million Currency Overlay Strategy + 10.06.05 Renewed Investment Servicing Contract with Halliburton + 10.03.05
+ Edward J. McKenzie
Vice President and Department Head,
U.S. Mutual Fund Servicing,
State Street
+ Shawn M. Alarie
Vice President,
U.S. Mutual Fund Accounting,
State Street
Our four-year relationship with Boston-based Liberty Funds, and later Columbia Management, provided plenty of time to
prove that State Street has the solutions to help any large asset manager integrate and convert disparate systems into a single
operations platform.
In 2000, Liberty Funds chose State Street to run the fund accounting and financial reporting operations for $40 billion in
assets. A successful, year-long conversion led to more business, and State Street also consolidated custody servicing for the
funds. When the former FleetBoston Financial CorporationÕs asset management arm, which included its Galaxy and Columbia
funds, acquired Liberty Funds in 2002, State Street retained the Liberty business and added the servicing of Galaxy. By 2004,
State Street supported 59 fund mergers, 190 accounting conversions and 127 custody conversions.
STT 30

33. International Fund Services Named Best Fund Administrator in ALPHA MagazineÕs Hedge Fund Service Provider Awards + 10.17.05 Selected by
+ Janine M. Donovan
Vice President,
U.S. Mutual Fund Custody,
State Street
ÒState Street is uniquely positioned to provide what we need. Reducing the
number of vendors allowed us to capitalize on efficiencies, build consistent
internal controls, and pass along savings to our shareholders.Ó
Christopher L. Wilson, President, Columbia Management
That year, another merger brought the fund groups under Bank of America, which began to consolidate the fund
operations under the Columbia name. The company reduced the number of funds it offered and cut fund expenses by
switching to a single service provider. State Street had the relationship, the track record and the integrated service solutions
to make that happen.
STT 31

34. Gallaher Pensions Limited to Run a £50 Million Active U.K. Equity Mandate + 10.27.05 Named to Provide Investment Servicing for Charles Schwab
Reserve Bank of Australia
PeopleÕs Bank of China
Hong Kong Monetary Authority
Bank Indonesia
Bank of Japan
Bank of Korea
Bank Negara Malaysia
Reserve Bank of New Zealand
Bangko Sentral ng Pilipinas
Monetary Authority of Singapore
Bank of Thailand
ABF Pan Asia Bond Index Fund
STT 32

35. Investment Management funds + 10.31.05 Reappointed by Lloyds TSB Group Pension Schemes to Provide Investment Services for the SchemesÕ Assets
11 central banks and
monetary authorities
20 yearsÕ experience in the
Asia-Pacific market
$550B
under management
in global fixed
income products
6 exchange-traded funds
launched in Asia
+ $1B ABF Pan Asia
Bond Index Fund
We deliver value through our expertise. In the wake of the 1997 Asian financial crisis, central bankers across the region
recognized the need to provide Asian companies with better access to capital. The ExecutivesÕ Meeting of East Asia and Pacific
Central Banks (EMEAP) Group, which comprises 11 central banks and monetary authorities in the region, developed the Asian Bond
Fund Initiative to improve the bond markets and offer investors more innovative, cost-efficient and diversified products.
In 2005, during the second stage of the initiative, the $2 billion Asian Bond Fund 2 (ABF2) was launched by the EMEAP
Group. The Group chose State Street to play an important role in bringing the ABF Pan Asia Bond Index Fund (PAIF), a $1 billion
component fund of ABF2, to market.
STT 33

36. + 11.15.05 SSgA Launched Nine New ETFs + 11.16.05 Awarded $4 Billion Investment Servicing Business from California State Automobile Association
+ Yan-Yan Li
Principal, Head of Legal and Compliance,
State Street Global Advisors Asia Ltd.
State Street has been a pioneer in the Asia-Pacific marketplace for two decades, and in 1999 was named to manage the
regionÕs first exchange-traded fund (ETF) Ð Tracker Fund of Hong Kong. We have also collaborated with local fund managers
and stock exchanges and successfully launched ETFs in China, Korea, Singapore and Taiwan.
Our relationships and experience were some of the reasons why we were chosen to play a key advisory role in PAIF, which
enabled investors to diversify risk across eight Asian bond and currency markets in a single transaction.
STT 34

37. + 12.05.05 Named to Manage $100 Million Socially Responsible Investing Portfolio for Arkitekternas Pensionskassa + 12.15.05 Announced $.01 Increase
+ Cecilia Chin
Principal, Director of Marketing,
State Street Global Advisors Asia Ltd.
ÒFrom an investorÕs perspective, the passively managed ABF2 funds
represent low-cost and efficient vehicles for investing in local currency-
denominated bonds in Asia. In the context of bond market development...
it will help contribute to the broadening and deepening of bond markets
in the region over time.Ó
Executives’ Meeting of East Asia and Pacific Central Banks
+ Hon Cheung
Principal, Managing Director,
State Street Global Advisors Singapore Ltd.
State Street Global Advisors was named to manage PAIF, an open-ended listed bond fund investing across the region.
Modeled on the cost-effective and efficient structure of ETFs, PAIF invests in domestic currency-denominated sovereign and
quasi-sovereign bonds issued in eight Asian markets.
PAIF was listed on the Hong Kong Stock Exchange in July 2005 and had $1.1 billion in assets at year end. The fund is
registered in Japan and Singapore. It is also available to eligible institutional investors in Thailand.
State StreetÕs global experience and broad knowledge base helped ensure the success of this important economic milestone.
STT 35

38. in Quarterly Dividend, to $.19 Per Share + 12.21.05 Awarded C$870 Million Currency Hedging Mandate from WorkersÕ Compensation Board-Alberta
$5.5B total revenue
4.6B total fee revenue
945M income from
continuing operations
2.82 diluted earnings
per share from
continuing operations
+ 15.3% return on shareholdersÕ
equity from continuing
operations
STT 36

39. + 01.18.06 Announced 10% Increase in Operating Revenue and 14% Increase in Earnings Per Share from Continuing Operations in 2005
38 selected financial data
39 summary of operations
45 report of independent registered
public accounting firm
46 condensed consolidated
financial statements
2005 Financial Summary
STT 37

40. Selected Financial Data $ millions, except per share data or where otherwise indicated
2005 2004 2003 2002 2001
Years ended December 31,
Total fee revenue $ 4,048 $ 3,556 $ 2,850 $ 2,769
$ 4,551
Net interest revenue 859 810 979 1,025
907
Provision for loan losses (18) - 4 10
-
(Losses) gains on sales of available-for-sale
investment securities, net 26 23 76 43
(1)
Gain on sale of Private Asset Management business,
net of exit and other associated costs - 285 - -
16
Gain on sale of Corporate Trust business, net of exit
and other associated costs - - 60 495 -
Total revenue 4,951 4,734 4,396 3,827
5,473
Total operating expenses 3,759 3,622 2,841 2,897
4,041
Income from continuing operations before
income tax expense 1,192 1,112 1,555 930
1,432
Income tax expense from continuing operations 394 390 540 302
487
Income from continuing operations 798 722 1,015 628
945
Net loss from discontinued operations - - - -
(107)
Net income 838 $ 798 $ 722 $ 1,015 $ 628
$
Per common share
Basic earnings:
Continuing operations $ 2.38 $ 2.18 $ 3.14 $ 1.94
$ 2.86
Net income 2.38 2.18 3.14 1.94
2.53
Diluted earnings:
Continuing operations $ 2.35 $ 2.15 $ 3.10 $ 1.90
$ 2.82
Net income 2.35 2.15 3.10 1.90
2.50
Cash dividends declared .64 .56 .48 .41
.72
Closing price of common stock 49.12 52.08 39.00 52.25
55.44
As of December 31,
Investment securities $ 37,571 $ 38,215 $ 28,071 $ 20,781
$ 59,870
Total assets 94,040 87,534 85,794 69,850
97,968
Deposits 55,129 47,516 45,468 38,559
59,646
Long-term debt 2,458 2,222 1,270 1,217
2,659
ShareholdersÕ equity 6,159 5,747 4,787 3,845
6,367
Assets under custody (in billions) $ 9,497 $ 9,370 $ 6,171 $ 6,203
$ 10,121
Assets under management (in billions) 1,354 1,106 763 775
1,441
Number of employees 19,668 19,850 19,501 19,753
20,965
Ratios
Continuing operations:
Return on shareholdersÕ equity 13.3% 13.9% 24.1% 17.3%
15.3%
Return on average assets .84 .87 1.28 .88
.95
Dividend payout 26.9 25.9 15.4 21.0
25.3
Net income:
Return on shareholdersÕ equity 13.3 13.9 24.1 17.3
13.6
Return on average assets .84 .87 1.28 .88
.84
Dividend payout 26.9 25.9 15.4 21.0
28.5
Average shareholdersÕ equity to average assets 6.3 6.3 5.3 5.1
6.2
Tier 1 risk-based capital 13.3 14.0 17.1 13.6
11.7
Total risk-based capital 14.7 15.8 18.0 14.5
14.0
Tier 1 leverage ratio 5.5 5.6 5.6 5.4
5.6
Tangible common equity to adjusted total assets 4.5 4.5 4.9 4.7
4.8
STT 38

41. Summary of Operations
Overview
State Street Corporation and its subsidiaries report two lines of business. Investment Servicing
provides services for mutual funds and collective investment funds, corporate and public retirement
plans, insurance companies, foundations, endowments, and other investment pools worldwide. Products
include custody, product- and participant-level accounting, daily pricing and administration; master
trust and master custody; recordkeeping; foreign exchange, brokerage and other trading services;
securities Þnance; deposit and short-term investment facilities; loans and lease Þnancing; investment
manager and hedge fund manager operations outsourcing; and performance, risk and compliance
analytics to support institutional investors. Investment Management offers a broad array of services for
managing Þnancial assets, including investment management and investment research services,
primarily for institutional investors worldwide. These services include passive and active U.S. and
non-U.S. equity and Þxed income strategies, and other related services, such as securities Þnance. For
Þnancial information about these business lines, see the ÒLine of Business InformationÓ section of
ManagementÕs Discussion and Analysis of Financial Condition and Results of Operations included in
our 2005 Form 10-K.
This Summary of Operations should be read in conjunction with the ÒConsolidated Financial
Statements,Ó which are prepared in accordance with accounting principles generally accepted in the
United States, or ÒGAAP,Ó and the related ÒNotes to Consolidated Financial Statements,Ó included in
our 2005 Form 10-K. Certain previously reported amounts presented in this Summary of Operations
have been reclassiÞed to conform to current period classiÞcations. The preparation of Þnancial
statements requires management to make estimates and assumptions in the application of certain
accounting policies that materially affect the reported amounts of assets, liabilities, revenue and
expenses. Actual results could differ from those estimates.
Unless otherwise indicated or unless the context requires otherwise, all references in this
Summary of Operations to ÒState Street,Ó Òwe,Ó Òus,Ó ÒourÓ or similar terms mean State Street
Corporation and its subsidiaries on a consolidated basis.
STT 39

42. From time to time, in executing our strategic plan, we may enter into business acquisitions and
strategic alliances, and may divest non-strategic operations. We continuously review and assess various
business opportunities related to this strategy. For more Þnancial information about our acquisition and
divestiture activities, see Note 2 of the ÒNotes to Consolidated Financial StatementsÓ included in our
2005 Form 10-K under Item 8.
This Summary of Operations contains statements that are considered Òforward-looking
statementsÓ within the meaning of U.S. federal securities laws. Forward-looking statements include
statements about our conÞdence and strategies and our expectations about revenue and market
growth, acquisitions and divestitures, new technologies, services and opportunities, and earnings.
These forward-looking statements involve certain risks and
2002
uncertainties which could cause actual results to differ 3.10(1)
2005
materially. Additional information about forward-looking
2.82
statements and related risks and uncertainties is included in
our 2005 Form 10-K under Item 1A.
2004
2.35(3)
2003
Financial Highlights 2.15(2)
2001
For 2005, we recorded net income from continuing
1.90
operations of $945 million, up $147 million, or 18%, from net
income of $798 million in 2004. Fully-diluted earnings per
share from continuing operations were $2.82 in 2005, up
20% from $2.35 in 2004. Earnings per share for 2004 included
$62 million, or $.12 per share, of merger and integration
costs associated with the 2003 acquisition of a substantial
portion of the Global Securities Services, or ÒGSS,Ó business
of Deutsche Bank AG.
Dollars
Diluted Earnings Per Share
From Continuing Operations
(1) 2002 earnings per share included the gain on the sale of divestiture costs, GSS acquisition merger and integration
the divested Corporate Trust business of $.90 per share. costs, restructuring expenses, settlement of a state tax matter
(2) 2003 earnings per share included the combined gains on sales and a loss on certain real estate sold equal to $.86 per share.
of the divested Corporate Trust and Private Asset Management (3) 2004 earnings per share included GSS acquisition merger
businesses of $.68 per share, and combined charges for and integration costs of $.12 per share.
STT 40

43. We remained focused on achieving our previously disclosed Þnancial goals in 2005, carefully
balancing revenue growth with continued expense management. This focus allowed us to generate
positive operating leverage for the year, which we deÞne as a rate of total revenue growth that exceeds
the rate of growth of total operating expenses. Total revenue for 2005 grew 11% while total operating
expenses increased only 8%. We continued to deepen existing customer relationships and expand
new product capabilities. These factors, combined with new business growth, enabled us to achieve
our Þnancial goals in moderately improving Þnancial markets.
We continue to see the most signiÞcant opportunities for growth outside of the U.S. For 2005,
39% of our total revenue was from non-U.S. activities, up from 37% for 2004, and approximately
7,800 employees worked outside the U.S. We expect that eventually, we will derive 50% of total revenue
from outside the United States, as a result of the growth of savings and retirement assets in Europe
and the Asia-PaciÞc region.
We managed our balance sheet to better position State Street for rising interest rates during
2005. We expanded our investment securities portfolio and adjusted the mix of investments to include
higher yielding, ßoating-rate securities. As a result, net interest revenue in 2005 increased by 6% from
2004. Including taxable-equivalent adjustments for 2005 and 2004 of $42 million and $45 million,
respectively, net interest revenue increased by 5% from 2004.
Positive operating leverage was also generated through expense control. Managing our expenses
involved careful allocation of headcount, realignment of our real estate portfolio and the establishment
of other cost-efÞciency measures.
STT 41

44. Revenue
Total revenue for 2005 was $5.47 billion, an increase of $522 million from $4.95 billion in 2004.
Revenue growth from 2004 reßected growth in servicing, management, trading and securities Þnance
fees, as well as higher net interest revenue.
Collectively, servicing and management fees for 2005 were up $339 million, or 12%, from 2004.
The increases were attributable to new business from existing and new customers and higher equity
market valuations. Assets under custody increased to a record level of $10.12 trillion, up $624 billion
from $9.50 trillion a year ago. Assets under management also increased to a record level of $1.44 trillion,
up $87 billion from $1.35 trillion a year ago.
Trading services revenue was $694 million, up $99 million
2005
compared to $595 million a year ago, reßecting a higher dollar- 5.47
volume of foreign exchange trades for customers and a higher 2004
2003 4.95
volume of transition management business. Securities Þnance
4.73(2)
2002
fees were $330 million for 2005, an improvement of $71 million
4.40(1)
from $259 million in 2004, beneÞting from improved spreads
2001
and an increase in average loan volume. Processing fees 3.83
and other revenue was $302 million in 2005, compared with
$308 million in 2004.
Net interest revenue for 2005 was $907 million, an
increase of $48 million from $859 million in 2004, due to
an increase in average balance sheet size and changes in U.S.
Non-U.S.
balance sheet mix, somewhat offset by increased funding
costs and a ßatter yield curve.
$ Billions
Total Revenue
(1) 2002 total revenue included the gain on the sale of the (2) 2003 total revenue included the combined gains on sales of
divested Corporate Trust business of $495 million. the divested Corporate Trust and Private Asset Management
businesses of $345 million and a loss on certain real estate
sold of $13 million.
STT 42

45. Operating Expenses
Operating expenses were $4.04 billion for 2005, up $282 million from 2004. Expense growth in
2005 was driven in part by higher salaries and employee beneÞts expense, primarily from increased
stafÞng levels to accommodate new business and higher incentive compensation expense due to
improved earnings. Additionally, expense growth reßected an increase in transaction processing
expense related to higher transaction volumes and higher subcustodian fees resulting from higher net
asset values. Higher occupancy expense in 2005 reßected a $26 million charge related to a long-term
sub-lease agreement, somewhat offset by a $16 million charge in 2004, and higher occupancy costs
in Europe associated with new business. Higher other expenses reßected an increase in professional
services incurred for compliance and regulatory initiatives. These increases were somewhat offset
by reductions in information systems and communications expense. In addition, 2004 operating
expenses included $62 million of merger and integration costs related to the GSS acquisition, and
$21 million of restructuring costs related to a workforce reduction.
Discontinued Operations
Results for 2005 included a net loss from discontinued operations of $107 million (pre-tax
charge of $165 million reduced by related tax beneÞt of $58 million), or $.32 per share. During the
third quarter of 2005, we committed to a plan to divest our ownership interest in Bel Air Investment
Advisors LLC, or ÒBel Air.Ó The decision to divest will allow us to further sharpen our strategic focus on
accommodating the needs of global institutional investors. Additional information about the Bel Air
divestiture is included in Note 2 of the ÒNotes to Consolidated Financial StatementsÓ included in our
2005 Form 10-K.
Financial Goals
In November 2004, we announced Þnancial goals for State Street for 2005 and beyond. These
Þnancial goals are: (1) growth in operating-basis earnings per share from continuing operations between
10% and 15%; (2) growth in operating-basis revenue between 8% and 12%; and (3) operating-basis
STT 43

46. return on shareholdersÕ equity from continuing operations between 14% and 17%. These goals are
measured on an operating basis. Operating-basis results, as deÞned by management, include taxable-
equivalent basis net interest revenue with a corresponding charge to income tax expense, and for
2004, excluded one-time merger and integration costs of $62 million, equal to $.12 per share after tax.
We measure our Þnancial goals and related results on an operating basis to provide Þnancial information
that is comparable from period to period, and to present comparable Þnancial trends with respect
to our ongoing businesses and operations. We believe that this Þnancial information facilitates the
understanding and analysis of State StreetÕs ongoing activities in addition to Þnancial information
prepared in accordance with GAAP.
For 2005, we achieved our Þnancial goals. We increased
our operating-basis earnings per share from continuing
operations by 14%, from $2.47 to $2.82 (or 20% from $2.35
on a GAAP basis). Our operating-basis revenue increased 10%
from $5.00 billion to $5.52 billion (including taxable-equivalent
adjustments of $45 million and $42 million, respectively); and
we recorded return on shareholdersÕ equity from continuing
operations of 15.3%. Our Þnancial goals remain in place for
2006, and we expect 2006 Þnancial results to be approxi-
mately in the middle of the above-stated ranges. Information
about risks and uncertainties which could cause actual results
to differ materially from those expected is included in our
2005 Form 10-K under Item 1A.
Diluted Operating - Basis
Earnings Per Share
Significant reconciling items between GAAP and operating-basis
diluted earnings per share are described in the footnotes to the chart
on page 40.
STT 44

47. Report of Independent Registered Public Accounting Firm
on Condensed Financial Statements
The Shareholders and Board of Directors, State Street Corporation
We have audited, in accordance with the standards of the Public Company Accounting Oversight
Board (United States), the consolidated statement of condition of State Street Corporation at December 31,
2005 and 2004 and the related consolidated statements of income, changes in shareholdersÕ equity,
and cash flows for each of the three years in the period ended December 31, 2005 (not presented
separately herein) and in our report dated February 17, 2006, we expressed an unqualified opinion on
those consolidated financial statements. In our opinion, the information set forth in the accompanying
condensed consolidated financial statements (presented on pages 46 and 47) is fairly stated in all
material respects in relation to the consolidated financial statements from which it has been derived.
We also have audited, in accordance with the standards of the Public Company Accounting
Oversight Board (United States), the effectiveness of State Street CorporationÕs internal control over
financial reporting as of December 31, 2005, based on criteria established in Internal Control Ð
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission and our report dated February 17, 2006 (not presented separately herein) expressed an
unqualified opinion thereon.
Boston, Massachusetts
February 17, 2006
STT 45

48. Condensed Consolidated Statement of Income $ millions, except per share data or where otherwise indicated;
Years ended December 31,
2005 2004 2003
Fee Revenue
Servicing fees $ 2,263 $ 1,950
$ 2,474
Management fees 623 533
751
Trading services 595 529
694
Securities finance 259 245
330
Processing fees and other 308 299
302
Total fee revenue 4,048 3,556
4,551
Net Interest Revenue
Interest revenue 1,787 1,539
2,930
Interest expense 928 729
2,023
Net interest revenue 859 810
907
Provision for loan losses (18) -
-
Net interest revenue after provision for loan losses 877 810
907
(Losses) gains on sales of available-for-sale investment securities, net 26 23
(1)
Gain on sale of Private Asset Management business, net of exit
and other associated costs - 285
16
Gain on sale of Corporate Trust business - 60
-
Total revenue 4,951 4,734
5,473
Operating Expenses
Salaries and employee benefits 1,957 1,731
2,231
Information systems and communications 527 551
486
Transaction processing services 398 314
449
Occupancy 363 300
391
Merger, integration and divestiture costs 62 110
-
Restructuring costs 21 296
-
Other 431 320
484
Total operating expenses 3,759 3,622
4,041
Income from continuing operations before income tax expense 1,192 1,112
1,432
Income tax expense from continuing operations 394 390
487
Income from continuing operations 798 722
945
Loss from discontinued operations - -
(165)
Income tax benefit from discontinued operations - -
(58)
Net loss from discontinued operations - -
(107)
Net income $ 798 $ 722
$ 838
Earnings Per Share From Continuing Operations
Basic $ 2.38 $ 2.18
$ 2.86
Diluted 2.35 2.15
2.82
Loss Per Share From Discontinued Operations
Basic - -
$ (.33)
Diluted - -
(.32)
Earnings Per Share
Basic $ 2.38 $ 2.18
$ 2.53
Diluted 2.35 2.15
2.50
Average Shares Outstanding (in thousands)
Basic 334,606 331,692
330,361
Diluted 339,605 335,326
334,636
STT 46
Refer to State Street CorporationÕs 2005 Annual Report on Form 10-K for a complete set of consolidated financial statements.