State Street Corporation (NYSE:STT.PRE) Q3 2016 Earnings Conference Call - Final Transcript
Oct 26, 2016 • 09:30 am ET
Good morning, and welcome to State Street Corporation's Third Quarter 2016 Earnings Conference Call and Webcast. Today's discussion is being broadcast live on State Street's website at investors.statestreet.com. This conference call is being recorded for replay. State Street's conference call is copyrighted and all rights are reserved. This call may not be recorded for rebroadcast or distribution in whole or in part without the expressed written authorization from State Street Corporation. The only authorized broadcast for this call will be housed on State Street website.
Now, I would like to introduce Anthony Ostler, Senior Vice President of Investor Relations at State Street.
Thank you, Amy. Good morning and thank you all for joining us. On our call today, our Chairman and CEO, Jay Hooley, will speak first. Then, Mike Bell, our CFO, will take you through our third quarter 2016 earnings slide presentation, which is available for download in the Investor Relations section of our website, investors.statestreet.com. Afterwards, we'll be happy to take questions. During the Q&A, please limit your questions to two questions and then re-queue.
Before we get started, I would like to remind you that today's presentation will include operating basis and other measures presented on a non-GAAP basis. Reconciliations of these non-GAAP measures to the most directly comparable GAAP or regulatory measure are available in the appendix to our 3Q '16 slide presentation. In addition, today's presentation will contain forward-looking statements. Actual results may differ materially from these statements due to a variety of important factors such as those factors referenced in our discussion today, in our 3Q '16 slide presentation under the heading Forward-Looking Statements, and in our SEC filings, including the Risk Factors section of our 2015 Form 10-K. Our forward-looking statements speak only as of today, and we disclaim any obligation to update them, even if our views change.
As with the past few quarters, we are continuing with the new pattern of releasing our financial results on the fourth Wednesday of the month following each quarter end. As such, we expect to hold our fourth quarter earnings call on Wednesday, January 25, 2017. Now, let me turn it over to Jay.
Thanks, Anthony. Good morning, everyone. I'm pleased with our performance in 3Q '16 and our ability to deliver positive fee operating leverage for the first nine months of 2016 compared to the same period in 2015. Our results reflect continued momentum in fee revenue and our ongoing commitment to expense management.
Our new business results remain strong with $1.2 trillion in new assets servicing commitments year-to-date, including $212 billion in the third quarter. We're making good progress in the implementation of State Street Beacon, a multi-year program to digitize our business, deliver significant value and innovation for our clients and lower expenses across the organization. Importantly, through the execution of State Street Beacon, we are differentiating our capabilities by providing enhanced analytics and insights to our clients to help manage their enterprise data and enhance their operational performance and risk management.