Attached files
| file | filename |
|---|---|
| 8-K - 8-K - SUNTRUST BANKS INC | a0912168-kbodybarclays.htm |
2016 Barclays Global Financial Services Conference
Aleem Gillani, Chief Financial Officer, SunTrust Banks, Inc.
September 12, 2016
2
The following should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2015 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and
Current Reports on Form 8-K.
This presentation includes non-GAAP financial measures to describe SunTrust’s performance. We reconcile those measures to GAAP measures within the presentation or in the appendix. In this
presentation, we present net interest income and net interest margin on a fully taxable-equivalent (“FTE”) basis, and ratios on an annualized basis. The FTE basis adjusts for the tax-favored status of
income from certain loans and investments. We believe this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable
amounts.
This presentation contains forward-looking statements. Statements regarding future levels of the efficiency ratio and capital return are forward-looking statements. Also, any statement that does not
describe historical or current facts is a forward-looking statement. These statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” “initiatives,”
“opportunity,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would,” and “could"; such statements are based upon
the current beliefs and expectations of management and on information currently available to management. Such statements speak as of the date hereof, and we do not assume any obligation to update
the statements made herein or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events.
Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set
forth in the forward-looking statements. Factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in Part I, Item 1A., “Risk Factors,”
in our Annual Report on Form 10-K for the year ended December 31, 2015 and in other periodic reports that we file with the SEC. Those factors include: current and future legislation and regulation could
require us to change our business practices, reduce revenue, impose additional costs, or otherwise adversely affect business operations or competitiveness; we are subject to increased capital adequacy
and liquidity requirements and our failure to meet these would adversely affect our financial condition; the fiscal and monetary policies of the federal government and its agencies could have a material
adverse effect on our earnings; our financial results have been, and may continue to be, materially affected by general economic conditions, and a deterioration of economic conditions or of the financial
markets may materially adversely affect our lending and other businesses and our financial results and condition; changes in market interest rates or capital markets could adversely affect our revenue and
expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; our earnings may be affected by volatility in mortgage production and servicing revenues, and by changes
in carrying values of our MSRs and mortgages held for sale due to changes in interest rates; disruptions in our ability to access global capital markets may adversely affect our capital resources and
liquidity; we are subject to credit risk; we may have more credit risk and higher credit losses to the extent that our loans are concentrated by loan type, industry segment, borrower type, or location of
the borrower or collateral; we rely on the mortgage secondary market and GSEs for some of our liquidity; loss of customer deposits could increase our funding costs; we are subject to litigation, and our
expenses related to this litigation may adversely affect our results; we may incur fines, penalties and other negative consequences from regulatory violations, possibly even inadvertent or unintentional
violations; we are subject to certain risks related to originating and selling mortgages, and may be required to repurchase mortgage loans or indemnify mortgage loan purchasers as a result of breaches of
representations and warranties, or borrower fraud, and this could harm our liquidity, results of operations, and financial condition; we face certain risks as a servicer of loans; we are subject to risks
related to delays in the foreclosure process; clients could pursue alternatives to bank deposits, causing us to lose a relatively inexpensive source of funding; consumers and small businesses may decide not
to use banks to complete their financial transactions, which could affect net income; we have businesses other than banking which subject us to a variety of risks; negative public opinion could damage our
reputation and adversely impact business and revenues; we rely on other companies to provide key components of our business infrastructure; competition in the financial services industry is intense and
we could lose business or suffer margin declines as a result; maintaining or increasing market share depends on market acceptance and regulatory approval of new products and services; our ability to
receive dividends from our subsidiaries or other investments could affect our liquidity and ability to pay dividends; any reduction in our credit rating could increase the cost of our funding from the capital
markets; we have in the past and may in the future pursue acquisitions, which could affect costs and from which we may not be able to realize anticipated benefits; we depend on the expertise of key
personnel, and if these individuals leave or change their roles without effective replacements, operations may suffer; we may not be able to hire or retain additional qualified personnel and recruiting and
compensation costs may increase as a result of turnover, both of which may increase costs and reduce profitability and may adversely impact our ability to implement our business strategies; our
framework for managing risks may not be effective in mitigating risk and loss to us; our controls and procedures may not prevent or detect all errors or acts of fraud; we are at risk of increased losses from
fraud; a failure in or breach of our operational or security systems or infrastructure, or those of our third party vendors and other service providers, including as a result of cyber-attacks, could disrupt our
businesses, result in the disclosure or misuse of confidential or proprietary information, damage our reputation, increase our costs and cause losses; the soundness of other financial institutions could
adversely affect us; we depend on the accuracy and completeness of information about clients and counterparties; our accounting policies and processes are critical to how we report our financial
condition and results of operation, and they require management to make estimates about matters that are uncertain; depressed market values for our stock and adverse economic conditions sustained
over a period of time may require us to write down some portion of our goodwill; our financial instruments measured at fair value expose us to certain market risks; our stock price can be volatile; we
might not pay dividends on our stock; and certain banking laws and certain provisions of our articles of incorporation may have an anti-takeover effect.
Important Cautionary Statement
3
Investment Thesis
Why invest in SunTrust?
Investing in Growth Opportunities
Strong & Diverse Franchise
Improving Returns & Efficiency
Strong Capital Position Supports Growth
4
Investing in
Growth
Opportunities
Strong &
Diverse
Franchise
Improving
Returns &
Efficiency
Strong
Capital
Position
Franchise Overview
SunTrust is a leading financial institution focused on meeting clients’ needs and improving
their financial well-being. Our Company is differentiated by:
1
Size
Large enough to
compete with the
largest banks while still
being nimble
2
Diverse Business
Strong regional bank
with key national
businesses and full
product capabilities
3
Attractive Footprint
Leading market shares in
high growth and densely
populated markets in the
Southeast & Mid-Atlantic
4
Culture
A “Client First” culture
and a “One Team”
approach
See Appendix slide #22 for footnotes
Key Statistics (Rank)1,2
$21.8B
Market Cap
~5.6MM
Clients
$199B (11th)
Assets
$153B (10th)
Deposits
$142B (9th)
Loans
Ranked #2
For Deposit Market
Share in Respective
Top 10 MSAs4
23,940
Teammates3
14%
7%
SunTrust Peer Median
5
Geographic Presence
Regional Businesses
• Consumer Banking
• Commercial and Business Banking
• Consumer Lending (Home Equity, Credit Card)
• Private Wealth Management
• Retail Mortgage
National Businesses
• Corporate & Investment Banking
• Commercial Real Estate
• Consumer Lending (Auto, LightStream, Third Party Relationships)
• Specialty Private Wealth Management
• Correspondent Mortgage
SunTrust has a well-diversified mix of regionally focused businesses (Southeast & Mid-
Atlantic) and more nationally oriented businesses
Investing in
Growth
Opportunities
Strong &
Diverse
Franchise
Improving
Returns &
Efficiency
Strong
Capital
Position
Los Angeles
San
Francisco
Dallas
Houston
Atlanta
Orlando
Miami
Tampa
Chicago
Nashville
Memphis
Charlotte
Richmond
Baltimore
New York
Boston
Pittsburgh
Ft. Lauderdale
Raleigh-Durham
Washington, DC
San Diego
Note: Map is not representative of all SunTrust locations. Regional locations (Southeast and Mid-Atlantic) are generally cities with a significant retail and commercial presence. Cities outside of Southeast and
Mid-Atlantic generally contain Wholesale Banking (CIB, CRE) offices
6
Diverse Business Mix1
Investing in
Growth
Opportunities
Strong &
Diverse
Franchise
Improving
Returns &
Efficiency
Strong
Capital
Position
Consumer Banking & PWM
51%
• Consumer Banking
• Private Wealth Management
• Home Equity
• Credit Card
• Auto Lending
• LightStream
• Third-Party Partnerships
• Specialty Private Wealth Management
Wholesale Banking
38%
• Commercial & Business Banking
• Regional CRE
• Affordable Housing
• Corporate & Investment Banking
• National CRE (REIT, Institutional)
Mortgage
11%
• Retail
• Correspondent
• Consumer Direct
% of STI
Revenue
Regional
Businesses
(Southeast &
Mid-Atlantic)
National
Businesses
1. Based on revenue (FTE) over the 12 months ending June 30, 2016. Excludes Corporate Other
Corporate &
Investment
Banking
20%
Commercial &
Business
Banking
14%
Mortgage
11%
Consumer
Banking
32%
Private
Wealth
Management
12%
Consumer
Lending
8%
7
$1.67
$1.78
1H15 1H16
2.85%
3.01%
1H15 1H16
$30.46
$33.98
2Q 15 2Q 16
Strong First Half of 2016
Investing in
Growth
Opportunities
Strong &
Diverse
Franchise
Improving
Returns &
Efficiency
Strong
Capital
Position
1. Book value per share was $42.26 and $46.14 for 2Q 15 and 2Q 16, respectively. See Appendix slide #20 for a reconcilement to book value per share
Earnings Per Share
(growth rates represent 2Q 16 vs. 2Q 15)
Tangible Book Value per Share1 Average Loan & Deposit Growth
Net Interest Margin (FTE)
6%
8%
Loan Growth Client Deposit Growth
8
Strategic Consistency
Key Strategies Evidence of Success
2011 Ongoing
Meet More
Client Needs
2011 – LTM CAGRs
8%
Investment
Banking Income
17%
Credit Card
Balances1
4%
Client
Deposits1
1
Adjusted Tangible Efficiency Ratio2
Improve
Efficiency 2
Optimize the
Balance Sheet &
Enhance Returns
% Residential-Related Loans3 ROA
3
Investing in
Growth
Opportunities
Strong &
Diverse
Franchise
Improving
Returns &
Efficiency
Strong
Capital
Position
1. Based on average balances
2. GAAP efficiency ratios (FTE) were 72.0% and 61.9% for 2011 and LTM, respectively. Please refer to appendix slide #19 for GAAP reconciliations
3. Includes guaranteed residential mortgages, non-guaranteed residential mortgages, home equity products, and residential construction loans based on period-end balances
5%
Retail Investment
Income
38%
28%
2011 2Q 16
0.38%
1.02%
2011 LTM
72%
61%
2011 LTM
9
Adjusted Tangible Efficiency Ratio1
Efficiency gains create capacity to invest in growth opportunities
Investing in
Growth
Opportunities
Strong &
Diverse
Franchise
Improving
Returns &
Efficiency
Strong
Capital
Position
1. Efficiency ratios (FTE) were 72.0%, 59.3%, 71.2%, 66.7%, 63.1% and 61.6% for 2011, 2012, 2013, 2014, 2015, and 1H 16 respectively. Please refer to appendix slide #19 for GAAP reconciliations
Reduced Expenses
Execute Omni-Channel strategy
(invest in digital, reduce
physical footprint)
Streamline operations
infrastructure
More efficient deployment of
human capital
Supplier consolidation
Continue to execute Wholesale
Banking strategy (add expertise,
deepen client relationships via
capital markets and T&PS)
Grow consumer lending and
wealth management
Targeted growth in Mortgage
Revenue Growth
The Path to <60%
71.7%
68.9%
65.3%
62.9% 62.6%
61.2%
< 60%
2011 2012 2013 2014 2015 1H 16 Long-Term Target
10
Balance Sheet Optimization
Investing in
Growth
Opportunities
Strong &
Diverse
Franchise
Improving
Returns &
Efficiency
Strong
Capital
Position
Commercial
& Industrial
49%
Residential Mortgage
(Non-Guaranteed)
18%
Maintain Diversity1 1 Continue Focus on Returns 2
2
8
Notable Statistics
Commercial & Industrial Portfolio: 20+ industry
sectors & LOB’s
□ Maximum exposure to any sector3: 6% of loans
Consumer / Residential Portfolio4: Average FICO
score of 750+
See Appendix slide #22 for footnotes
0.78%
9.3%
0.97%
11.3%
1.02% 11.6%
ROA ROTCE
2013 2014 LTM
11
4.6%
5.3%
STI Peer Median
4.5%
5.2%
STI Peer Median
4.5%
5.4%
STI Peer Median
#2 of 10
Strong Credit Quality
2Q16 Nonperforming Loan Ratio1 LTM Net Charge-Off Ratio
Investing in
Growth
Opportunities
Strong &
Diverse
Franchise
Improving
Returns &
Efficiency
Strong
Capital
Position
See Appendix slide #22 for footnotes
0.56%
0.62%
0.67%
0.74%
0.96% 1.00%
1.08%
1.25% 1.26%
1.37%
Peer 1 Peer 2 STI Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9
0.18%
0.24%
0.27%
0.31%
0.34% 0.34%
0.36% 0.36%
0.47% 0.48%
Peer 1 Peer 2 STI Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9
9-Quarter Loan Loss Rates in Federal Reserve Severely Adverse Economic Scenario (CCAR)2
2014 2015 2016
#1 of 10 #2 of 10
12
Wholesale Banking
Investing in
Growth
Opportunities
Strong &
Diverse
Franchise
Improving
Returns &
Efficiency
Strong
Capital
Position
2Q 14 2Q 16
$404
$443
2014 LTM
$61.4
$72.1
2Q 14 2Q 16
$43.1
$54.1
2Q 14 2Q 16
…To Drive Continued Long-Term Growth
Left Lead
Relationships
Average
Loans ($B)
Average
Deposits ($B)
Investment
Banking
Income ($MM)
2
Leverage Differentiated Model…
Full Product
Capabilities
Industry Vertical
Expertise
Middle Market
Focus
OneTeam
Approach
Balance Sheet
Universal
Banks
Regional
Banks
Boutique
Firms
Success of the SunTrust
OneTeam Approach1
56% increase in capital markets
revenue from Commercial Banking,
CRE, and PWM clients
22% increase in the number of M&A
and syndicated loan transactions
from Commercial Banking, CRE,
and PWM clients
1
SunTrust
Wholesale
Banking
1. Growth rates represent year-over-year growth from 2H 15 to 2H 16
13
Enables…
Consumer Banking: Omni-Channel
Execution of Omni-Channel Strategy
Investing in
Growth
Opportunities
Strong &
Diverse
Franchise
Improving
Returns &
Efficiency
Strong
Capital
Position
36%
47%
40%
51%
Consumer Self-service
Deposits
Consumer Paperless
Penetration
2Q 15 2Q 16
11.8%
16.9%
2Q 15 2Q 16
Improved Client Experience Increased Revenue Opportunities
Digital
Sales3
Reduced Cost to Serve
2 1
ATM Digital Contact Center Branch
See Appendix slide #22 for footnotes
14
$0.9
$1.1
2Q 15 2Q 16
$1.1
$1.5
2Q 15 2Q 16
$1.2
$2.3
2Q 15 2Q 16
Consumer Lending Opportunities
Third-Party Partnerships Credit Card
Investing in
Growth
Opportunities
Strong &
Diverse
Franchise
Improving
Returns &
Efficiency
Strong
Capital
Position
LightStream
($ in billions, average balances)
National online consumer lending
platform
Application to close process is simple
and fast
Best in class loan experience and
competitive rates guaranteed
Primary partner today: online lender
providing financing for home
improvement projects
Potential for additional partnerships in
the future
Strategy is to deepen client
relationships: clients who use multiple
SunTrust products are rewarded with
additional card benefits
Focused on lending to prime and super-prime clients: average FICO score of 750+ across all 3 products
15
Mortgage Banking
Investing in
Growth
Opportunities
Strong &
Diverse
Franchise
Improving
Returns &
Efficiency
Strong
Capital
Position
3Q 15 4Q 15 1Q 16 2Q 16
$216
$0.1
Originations 1Q 09-2Q 16 Total Losses
($ in billions)
Loss Rate = ~3 bps
3
…With Executional Excellence
Client
Satisfaction
Rates2
New loan origination
system implemented
1.3%
1.4%
1H 15 1H 16
$118
$125
2Q 15 2Q 16
Servicing
for Others
UPB
($ in billions, period-end balances)
Mortgage
Origination
Market
Share1
Targeted Growth…
See Appendix slide #22 for footnotes
16
3.6%
4.5%
SunTrust Traditional Banks
Median
48%
62%
~85%
2014 2015 CCAR 2016
Strong Capital Position Supports Growth
LightStream (2012)
Lantana Oil & Gas Partners (2014)
MSR acquisitions (~$30 billion UPB since
January 2014)
Increased Capital Returns M&A
Investments in Organic Growth
Fully Phased-in CET11 Stressed Capital Erosion2
Strong Capital Position Allows For…
Investing in
Growth
Opportunities
Strong &
Diverse
Franchise
Improving
Returns &
Efficiency
Strong
Capital
Position
1
2 3
Payout
Ratio5
See Appendix slide #22 for footnotes
Technology / Products
New loan origination platforms within Wholesale and
Mortgage
Ongoing enhancements to Treasury & Payments
Solutions and consumer digital offerings
Roll-out of LightStream to SunTrust channels
Improved credit card offerings
Talent (past two years)4
200+ investment banking / corporate finance specialists
90+ consumer specialty sales professionals (generally
focused on wealth and investment management)
Clients
6% year-over-year loan growth
9.7%
Basel III CET1
3
6
#3 of 20
17
Investment Thesis
Why invest in SunTrust?
Investing in Growth Opportunities
Strong & Diverse Franchise
Improving Returns & Efficiency
Strong Capital Position Supports Growth
Appendix
19
Reconciliation of Adjusted Tangible Efficiency Ratio
($ in millions)
1. In accordance with updated GAAP, amortization of affordable housing investments of $40 million, $39 million, and $49 million were reclassified and are now presented in provision for income taxes for the 2011, 2012, and 2013, respectively.
Previously, the amortization was presented in other noninterest expense
2. Adjusted revenue and expenses are provided as they remove certain items that are material and/or potentially non-recurring. Adjusted figures are intended to provide management and investors information on trends that are more comparable
across periods and potentially more comparable across institutions
3. Represents adjusted noninterest expense / adjusted revenue – FTE. Adjusted tangible efficiency ratio excludes amortization expense, the impact of which is (0.51%), (0.53%), (0.22%), (0.31%), (0.49%), (0.49%) and (0.56%) for 2011, 2012, 2013,
2014, 2015, 1H 16, and LTM respectively
Note: Totals may not foot due to rounding
2011 2012 2013 2014 2015 1H 16 LTM
Reported (GAAP) Basis
Reported Net Interest Income - FTE $5,179 $5,225 $4,980 $4,982 $4,906 $2,640 $5,169
Reported Noninterest Income 3,421 5,373 3,214 3,323 3,268 1,680 3,255
Reported Revenue - FTE 8,600 10,598 8,194 8,305 8,174 4,320 8,424
Reported Noninterest Expense1 6,194 6,284 5,831 5,543 5,160 2,663 5,215
Reported Amortization Expense 43 46 23 25 40 21 47
Reported Efficiency Ratio 72.0% 59.3% 71.2% 66.7% 63.1% 61.6% 61.9%
Reported Tangible Efficiency Ratio 71.5% 58.9% 70.9% 66.4% 62.6% 61.2% 61.3%
Adjusted Basis
Reported Noninterest Income $3,421 $5,373 $3,214 $3,323 $3,268 $1,680 $3,255
Reported Revenue - FTE 8,600 10,598 8,194 8,305 8,174 4,320 8,424
Adjustment Items (Noninterest Income):
3Q-4Q 12 student / Ginnie Mae loan sale (losses) - (92) - - - - -
Securities gains/(losses) 197 1,934 (2) (15) - - -
HARP 2.0 MSR valuation adjustment (38) - - - - - -
GSE mortgage repurchase settlements - - (63) - - - -
RidgeWorth sale - - - 105 - - -
Adjusted Noninterest Income 3,262 3,531 3,279 3,233 3,268 1,680 3,255
Adjusted Revenue - FTE2 8,441 8,756 8,260 8,215 8,174 4,320 8,424
Reported Noninterest Expense 6,194 6,284 5,831 5,543 5,160 2,663 5,215
Adjustment Items:
Legacy affordable housing impairment 10 96 - 28 - - -
Charitable contribution of KO shares - 38 - - - - -
Real estate charge - 17 - - - - -
Loss on debt extinguishment (3) 16 - - - - -
Pension curtailment, net of 401(k) contribution (60) - - - - - -
Severance 27 40 - - - - -
Impact of certain legacy mortgage legal matters - - 323 324 - - -
Mortgage servicing advances allowance increase - - 96 - - - -
Potential mortgage servicing settlement & claims expense 120 - - - - - -
Adjusted Noninterest Expense2 6,099 6,077 5,412 5,190 5,160 2,663 5,215
Adjusted Efficiency Ratio3 72.3% 69.4% 65.5% 63.2% 63.1% 61.6% 61.9%
Adjusted Tangible Efficiency Ratio3 71.7% 68.9% 65.3% 62.9% 62.6% 61.2% 61.3%
20
Reconciliation of Tangible Book Value Per Share
($ in billions, except per-share data)
1. SunTrust presents a tangible book value per common share that excludes the after-tax impact of purchase accounting intangible assets and also excludes preferred stock and noncontrolling interest from
tangible equity. The Company believes this measure is useful to investors because, by removing the effect of intangible assets that result from merger and acquisition activity, as well as preferred stock and
noncontrolling interest (the level of which may vary from company to company), it allows investors to more easily compare the Company’s book value on common stock to other companies in the industry
Note: Totals may not foot due to rounding
2Q 15 2Q 16
Total Shareholders' Equity $23.2 $24.5
Goodwill, Net of Deferred Taxes (6.1) (6.1)
Other Intangible Assets Including MSRs, Net of Deferred Taxes (1.4) (1.1)
MSRs 1.4 1.1
Tangible Equity $17.1 $18.4
Noncontrolling Interest (0.1) (0.1)
Preferred Stock (1.2) (1.2)
Tangible Common Equity $15.8 $17.0
Total Assets 188.9 199.1
Goodwill (6.3) (6.3)
Other Intangible Assets Including MSRs, Net of Deferred Taxes (1.4) (1.1)
MSRs 1.4 1.1
Tangible Assets $182.5 $192.7
Average Equity / Average Assets 12.3% 12.1%
Total Equity / Total Assets 12.3% 12.3%
Tangible Equity / Tangible Assets 9.4% 9.5%
Tangible Common Equity / Tangible Assets 8.6% 8.8%
Book Value Per Common Share $42.26 $46.14
Tangible Book Value Per Common Share $30.46 $33.98
21
Reconciliation of Common Equity Tier 1 Ratio1
($ in billions)
1. The Common Equity Tier 1 ratio is subject to certain phase-in requirements under Basel III beginning in 2015, and as such we have presented a reconciliation of the Common Equity Tier 1 ratio as
calculated considering the phase-in requirements (Common Equity Tier 1 – Transitional) to the fully phased-in ratio
2. Primarily includes the phase-out from capital of certain DTAs, the overfunded pension asset, and other intangible assets
3. Primarily relates to the increased risk weight to be applied to mortgage servicing assets on a fully phased-in basis
Note: Totals may not foot due to rounding
2Q 16
Common Equity Tier 1 – Transitional $16.7
Adjustments2 (0.1)
Common Equity Tier 1 – Fully phased-in $16.7
Risk-weighted Assets: Common Equity Tier 1 – Transitional $170.1
Adjustments3 1.6
Risk-weighted Assets: Common Equity Tier 1 – Fully phased-in $171.7
Common Equity Tier 1 – Transitional 9.8%
Common Equity Tier 1 – Fully phased-in 9.7%
22
Footnotes
Slide #4:
1. Assets, loans, deposits, client, and teammate data as of June 30, 2016; market capitalization as of September 7, 2016
2. Rank is amongst U.S. bank holding companies and excludes non-traditional banks. Asset and loan rankings are sourced via bank holding company regulatory filings (Y-9C) and are as of June 30, 2016. Deposit rankings are
sourced via FDIC deposit market share data, and are as of June 30, 2015, pro-forma for completed and pending mergers and acquisitions
3. Represents full-time equivalent employees
4. Source: SNL Financial, as of June 30, 2015, based on top 10 MSAs (by deposits) for each institution. Numerator is company’s total deposits in its top 10 MSAs and denominator is total deposits in those 10 MSAs
Note: Peer group includes BBT, CMA, COF, FITB, KEY, MTB, PNC, RF, USB, WFC
Slide #13:
1. Consumer self-service deposit transactions include mobile, tablet, and ATM (excludes direct deposit)
2. Refers to paperless statement adoption by consumer clients
3. Defined as all new account center units sales plus national and SunTrust.com unit sales for LightStream
Slide #16:
1. Please see Appendix slide #21 to reconcile to GAAP CET1 ratio
2. Represents the difference between the starting and minimum Basel III Common Equity Tier 1 Ratios resulting from the Federal Reserve’s 2016 CCAR severely adverse scenario
3. CCAR 2016 Traditional Banks include BAC, BANCW, BBT, BBVA, BMO, C, CFG, CMA, FITB, HBAN, JPM, KEY, MTB, PNC, RF, STI, TD, USB, WFC, ZION
4. Represents net hires since January 1, 2014
5. Payout Ratio = (Common Stock Dividends and Share Repurchases) / Net Income Available to Common Shareholders
6. SunTrust’s CCAR 2016 payout ratio is based on consensus earnings estimates
Slide #11:
1. Represents nonaccrual loans divided by total loans (excluding loans held for sale). Source: Company financials as of June 30, 2016
2. Source: Federal Reserve (http://www.federalreserve.gov/bankinforeg/dfa-stress-tests.htm). Represents Federal Reserve’s estimate of loan losses over 9 quarters (as a % of average total loans) in a severely adverse
economic scenario
Note: Peer group includes: BBT, CMA, FITB, KEY, MTB, PNC, RF, USB, WFC
Slide #15:
1. SunTrust Mortgage’s closed loan volume as a percentage of the average of the total industry closed loan volume, as published by FHLMC, FNMA and the MBA
2. Data based on survey of over 800 clients conducted by Gallup. Represents overall client satisfaction with the loan origination process
3. Total losses include net charge-offs for balance sheet loans and repurchase losses for sold loans (represents all loans originated from 1Q 09 through 2Q 16)
All Slides:
Note: ‘LTM’ refers to the 12 months ended June 30, 2016
Slide #10:
1. Data as of June 30, 2016. Consumer Lending includes consumer direct loans (other than student guaranteed), consumer indirect loans and consumer credit cards. Guaranteed includes guaranteed student loans and
guaranteed residential mortgages. Construction includes both commercial and residential construction. Note: totals may not foot due to rounding
2. Return on average common shareholders’ equity was 6.3%, 8.1%, and 8.5% for 2013, 2014, and LTM, respectively. The effect of excluding intangible assets, excluding MSRs,was 2.9%, 3.3%, and 3.2% for 2013, 2014, and
LTM, respectively
3. Not including real estate loans which are classified as C&I
4. Represents weighted average score as of June 30, 2016. Includes consumer loans, home equity, and residential mortgage. Excludes guaranteed loans