© 2017 SunTrust Banks, Inc. SunTrust is a federally registered trademark of SunTrust Banks, Inc.
2017 GOLDMAN SACHS
US FINANCIAL SERVICES
CONFERENCE
William H. Rogers Jr., Chairman & Chief Executive Officer
December 6, 2017
2
The following should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2016 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. The Company also presents certain financial information on a tangible basis, including return on average tangible common equity and tangible efficiency ratio.
Return on average tangible common equity excludes the after-tax impact of purchase accounting on intangible assets. The tangible efficiency ratio excludes the amortization related to
intangible assets and certain tax credits.
This presentation contains forward-looking statements. Statements regarding future levels of earnings per share, the efficiency ratio, capital returns, investment banking market share, the
number of full service branches, common equity tier 1 ratio, and technology enhancements 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,” “strategies,” “goals,” “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. They 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, 2016 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 stringent capital adequacy and liquidity requirements and our failure to meet these would adversely affect our financial condition; the monetary and fiscal 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 servicing assets and mortgages held for sale due to changes in interest rates;
interest rates on our outstanding financial instruments might be subject to change based on regulatory developments, which could adversely affect our revenue, expenses, and the value of those
financial instruments; 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; any reduction in our credit rating could increase the cost of our funding from the
capital markets; 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 risks as a servicer of loans; we are subject to risks related to delays in the foreclosure process; 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 may face more intense scrutiny of our sales, training, and incentive compensation practices; 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; we continually encounter
technological change and must effectively develop and implement new technology; maintaining or increasing market share depends on market acceptance and regulatory approval of new
products and services; 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; our operational systems and infrastructure may fail or may be the subject of a breach or cyber-attack that could adversely affect our
business; a disruption, breach, or failure in the operational systems and infrastructure of our third party vendors and other service providers, including as a result of cyber-attacks, 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; our ability to receive dividends from our subsidiaries or other investments could affect our liquidity
and ability to pay dividends; and certain banking laws and certain provisions of our articles of incorporation may have an anti-takeover effect.
IMPORTANT CAUTIONARY STATEMENT
3
SUNTRUST OVERVIEW
SunTrust is a leading financial institution focused on meeting clients’ needs and improving
their financial well-being. Our Company is differentiated by:
Size
Large enough to
compete with the
largest banks while still
being able to serve our
clients as “One Team”
Diversity
Strong regional bank
with key national
businesses, full product
capabilities, and a
diverse revenue mix
Market Position
Leading market shares
in high growth markets
(Southeast & Mid-
Atlantic); supplemented
by growing presence
nationally
Culture
Leading the onUp
movement – an
extension of our
purpose of Lighting
the Way to Financial
Well-Being
Key Statistics (Rank)1,2
16%
EPS Growth3
2.6%
Dividend Yield4
$208bn (11th)
Assets
$163bn (10th)
Deposits
$144bn (9th)
Loans
11.8%
LTM ROTCE5
See appendix slide #27 for footnotes
4
STRONG DEPOSIT FRANCHISE
Strong Deposit Market Share
Deposit Market Share in Each Bank’s Top 10 MSAs1
Improved Execution
% of Branches with YoY Deposit Growth2
23%
51%
68%
73%
86%
62% 61%
69% 71% 73%
2013 2014 2015 2016 2017
STI Top 25 Bank Median
19%
16%
14% 14%
10%
7% 6% 6% 5%
4% 4% 3%
BAC WFC USB STI HBAN FITB RF BBT PNC CFG MTB KEY
SunTrust ranked #3 out of 25
(behind JPM & BAC)
See appendix slide #27 for footnotes
5
GEOGRAPHIC PRESENCE
Primarily 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 & Pillar Financial
• 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
See appendix slide #27 for footnotes
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 offices
Los Angeles
San Francisco
Dallas
Houston
Atlanta
Orlando
Miami
Tampa
Chicago
Nashville
Memphis
Charlotte
Richmond
Baltimore
New York
Boston
Ft. Lauderdale
Raleigh-Durham
Washington, DC
San Diego
Kansas
City
Cleveland
Cincinnati
#1
Projected
population growth
relative to peers1
10
Of the top 25 fastest
job growth MSAs2
9
Of the top 25
busiest ports3
6
INVESTMENT THESIS
2017 will mark the 6th consecutive year of improvement across key metrics
Strong & Diverse Franchise
Investing in Growth
Improving Efficiency
& Returns
Strong Capital Position
Supports Growth
(Dividends & share buybacks as a % of net income)
1 3 2
(Adjusted tangible efficiency ratio2) (Earnings per share1)
1. 2012 and 2013 values represent adjusted earnings per share. GAAP earnings per share for 2012 and 2013 were $3.59 and $2.41, respectively. Please refer to appendix slide #26 for GAAP reconciliations
2. 2011, 2012, 2013, and 2014 values represent the adjusted tangible efficiency ratio. Adjusted figures are intended to provide management and investors information on trends that are more comparable
across periods and potentially more comparable across institutions. GAAP efficiency ratios were 73.0%, 60.0%, 72.3%, 67.9%, 64.2% and 63.6% for 2011, 2012, 2013, 2014, 2015, and 2016 respectively.
Please refer to appendix slide #25 for GAAP reconciliations
3. Source: Bloomberg. Reflects 12/31/2011 – 12/1/2017. Peers include BAC, BBT, CFG, FITB, HBAN, KEY, MTB, PNC, RF, USB, WFC. Dividends assumed to be reinvested in same security
6 Year Total Shareholder Return: 289% (3rd highest among peers3)
$0.94
$2.19
$2.74
$3.23
$3.58 $3.60
2011 2012 2013 2014 2015 2016 2017F
71.5%
66.9%
65.3%
63.3%
62.6% 62.0%
2011 2012 2013 2014 2015 2016 2017F
8% 11%
26%
48%
62%
73%
2011 2012 2013 2014 2015 2016 2017F
STRONG & DIVERSE
FRANCHISE
Investing in Growth
1
8
WHOLESALE BANKING: COMPETITIVE ADVANTAGE
Full Product
Capabilities
Industry
Vertical
Expertise
Middle-Market
Focus
OneTeam
Approach
Balance Sheet
Universal
Banks
Regional
Banks
Boutique
Firms
Achieving
National
Recognition
Named the 2017
USA Outstanding
M&A Middle
Markets
Investment Bank
of the Year by
Atlas Awards
Named the 2016
U.S. Mid-Market
Equity House by
International
Financing Review
(IFR)
9
~2-3%
Current market
share1
~5%
Long-term
potential
$232
$270
$311 $315
$341 $355
$404
$461
$494
$602
2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM
INVESTMENT BANKING: SUSTAINABLE GROWTH
1. Refers to market share across all products (debt capital markets, M&A, and equity capital markets) within the middle-market and mid-corporate space. Leverages data from Dealogic. Combination of a
client population of STRH clients as well as any completed transactions where Dealogic has deemed STRH has had a role
2. Growth in left lead relationships refers to CAGR since beginning of 2016. Growth in M&A / equity, average fee / transaction, and revenue from non-CIB clients represents change of YTD 16 vs. YTD 17
The Path to ~5% Market Share: Build on Existing Momentum
Proven Success with Future Growth Potential
Grow Left Lead
Relationships
SunTrust serves as the left
lead bank for <15% of clients;
significant opportunity remains
Grow Revenue From
Non-CIB Clients
Continue to bring industry and
product expertise to non-CIB
clients (see slide 10 for details)
Re
ce
nt
Im
pr
ov
em
en
t2
Fu
tu
re
Po
te
nt
ia
l
12%
Increase Average Fee
/ Transaction
By-product of growth in lead
relationships and advisory
businesses
30%
Grow M&A and
Equity
Continue to realize returns on
investments and improve
strategic relevance with clients
48% 12%
IB
Income
($MM)
10
EXPORTING CIB’S COMPETITIVE ADVANTAGE TO
COMMERCIAL BANKING
X
5x
8x
Average Revenue Per
Commercial Banking Client
Average Revenue Per Client with
Industry Coverage
Average Revenue Per Client with
Corporate Finance & Industry Coverage
Proven Success
Overview Competitive Position
• Traditional Commercial Banking client: <$150MM in annual revenue
→ SunTrust has ~44k Commercial Banking clients
→ Primarily within traditional Southeast / Mid-Atlantic markets
• Our strategy: bring the skills, discipline, and client coverage model
from CIB (including product and industry expertise) to Commercial
Banking clients
→ The vast majority of market presidents now have a
background in investment banking (most previously worked
at STRH)
→ Created targeted industry verticals (ex: aging services, ports
& logistics, restaurants & retail, etc)
• Differentiated business model affords us the ability to serve clients
outside of traditional retail banking footprint
→ Recently expanded into Ohio and Texas
Risk Mgmt
Solutions
Capital
Raising
Alt. Liquidity
Solutions
Strategic
Solutions
$1
50
M
M
$2
5M
M
Loans Deposits /
Treasury Mgmt.
Bulge-Bracket Banks $1
0B
$1
B
Advisory Solutions
Client Needs
Cl
ie
nt
S
iz
e
Regional
Banks
Community
Banks
SunTrust Commercial Banking
Capture underserved market by bringing
advisory solutions to smaller clients
11
CONSUMER: MEETING EVOLVING CLIENT NEEDS
Branch
ATM
Teller
Connect
Call
Center
Chat,
Email,
Text
Online
Banking
Our mobile-centric approach allows us to focus on simplifying the client experience, meet
clients where they want to do business, and reduce our cost to serve
Mobile-Centric Strategy Investments In A Superior Mobile App 1
And Optimize Our Branch Network 3
1,659
~1,225
2011 2018F
Full Service
Branches
To Meet Evolving Client Needs 2
Mobile App Average Rating
(4.3 stars vs. peer median of 3.3 stars1)
34%
Digitally
Assisted Sales
24%
Mobile
Deposits
20%
Mobile
Sign Ons
1. Source: iOS and Android app store. Represents the average between iOS and Android ratings
12
SPOTLIGHT ON
Scalable & efficient online lending platform which provides for a superior client
experience and enhances the Company’s return profile
Good Risk-Adjusted Returns
5.51%
Average Portfolio
Yield1
0.58%
LTM NCO
770+
Average FICO2
1.5–2 years
Average Duration
Scalable &
Efficient Platform
See appendix slide #27 for footnotes
Recognized as one of the Best
Personal Loan Companies of 2017
by U.S. News & World Report
Unsecured Auto
Home Improvement
Debt Consolidation
Secured Auto
Marine, RV, Other
34%
24%
19%
13%
11%
$2.7B
$3.8B
3Q 16 3Q 17
Diverse, Growing Portfolio
Average
Balance
Avg. FICO Avg. Yield
796 2.64%
772 6.98%
755 9.37%
744 3.65%
776 6.86%
IMPROVING
EFFICIENCY &
RETURNS
2
14
SAVINGS FUND INVESTMENTS
Real Estate
• Pursue further branch reductions
• Consolidate non-branch real estate (e.g. mortgage
offices reduced from 10 to 5)
Cost
Saving
Initiatives
• Streamline operations (in connection with
investments in core systems which digitize end-to-
end processes and enhance teammate effectiveness)
• Optimize staffing models (e.g. spans and layers)
• Tailor benefits and incentive plans
Organizational Efficiency
Technology Enhancements
• Increase automation and
self-service channels
• Continue transition to the cloud
• Continue to upgrade and digitize
core systems (teller platform,
payments hub, collections, etc.)
• Leverage new loan origination
platforms in Wholesale and
Consumer which improve loan
cycle times and automate certain
capabilities
Procurement
• Consolidate vendors
• Improve contract negotiations
• Optimize in-house services and capabilities
• Make ongoing enhancements to mobile app
• Create enterprise client portal (see slide 16)
• Improve treasury & payments platform
(underway)
• Digitize mortgage application (2018)
• Increase digital, self-serve channels (80-90%
of solutions will be available via digital
platforms by 2019)
Client-Friendly Technology
Wholesale Revenue Growth
• Expand industry and product
expertise in CIB and Commercial
Banking
• Attract, develop, and retain top
talent (improves strategic
relevance with clients)
• Continue expansion of
Commercial Banking
• Enhance CRE capabilities
(including integration of
Pillar/Cohen)
Fund
Investments
in Growth &
Technology
Consumer Revenue Growth
• Expand digital lending platform (LightStream and
additional third party partnerships), including
further marketing spend
• Grow wealth management by retaining top talent
and acquiring new teams (in new and existing
markets)
15
Established a data lake
foundation
Recent Progress
Upgraded mobile app & digital
foundation (improved user
interface + capabilities)
Introduced digital conversation
guide into branches
Upgraded loan origination
platforms within
Wholesale & Mortgage
Built private cloud and began
expanding to
hybrid public & private cloud
Introduced robotic
capabilities (10+ bots in use,
150+ bots in the pipeline)
Advance data lake
capabilities to enhance
client analytics
Future Enhancements
Create an enterprise
client portal (see slide 16)
Enhance mobile and
payment capabilities
Leverage LightStream platform
to enhance digital lending &
fraud detection
Enhance flexibility and
integration through API’s
Deploy intelligent processes and
bots using process automation,
data, and AI
API
SPOTLIGHT ON TECHNOLOGY
Provide a consistent, superior client experience by creating
an integrated ecosystem which meets clients where they
are and brings SunTrust into their experiences
1
Enhance the efficiency
and effectiveness of
the Company
2
Enhances ability to meet client needs
Improves data aggregation capabilities
for regulatory reporting
Impact
Serves as a client’s dingle source for
financial confidence
Provides a more integrated, tailored
banking experience for clients
Connects with clients beyond
traditional banking channels
Increases agility to meet evolving client
preferences
Streamlines end-to-end origination
Improves fraud protections
Improves loan cycle times
Optimizes human capital
Reduces opportunity for error
Better client experience
Primary
Objectives
Digitize front-end of mortgage application
16
SPOTLIGHT ON TECHNOLOGY
Enterprise Client Portal
Client Value
•Holistic, Tailored User Experience provides
for a consolidated relationship view that makes SunTrust’s
online / mobile platform each client’s financial home
• Integrated Planning Tools enables financial
confidence
•Ease of Use from intuitive design and fast and simple
integration using API’s and cloud ready technology
•Accessibility responsive design with consistent
experience on any screen
Business Value
•Connects with Clients outside of traditional
banking channels (branch, ATM, call center)
•Flexibility segment specific functionality (e.g. advisor
info, entitlements) and differentiated visual treatment
•Efficiency reusable components with less duplication
of key functionality (e.g. money movement)
•Speed to Market scalable portal infrastructure /
modular framework with built-in integrations
17
Key Takeaways
• We will achieve our
targets
• Fostering a culture of
continuous improvement
is as important as these
goals
• Efficiencies generate
capacity to invest in
growth and do more for
our clients
71.5%
66.9%
65.3%
63.3%
62.6% 62.0%
61% - 62%
<60%
2011 2012 2013 2014 2015 2016
IMPROVING EFFICIENCY
1. GAAP efficiency ratios were 73.0%, 60.0%, 72.3%, 67.9%, 64.2% and 63.6% for 2011, 2012, 2013, 2014, 2015, and 2016 respectively. Please refer to appendix slide #25 for GAAP reconciliations
2019 TER
Target
2017 TER
Target
Adjusted
Tangible
Efficiency
Ratio1
3
STRONG CAPITAL
POSITION
SUPPORTS GROWTH
19
STRONG CAPITAL POSITION
103%
92%
SunTrust Peer Median
2.6%
2.2%
SunTrust Peer Median
Total Payout Ratio2 Dividend Yield3
#4 of 12 #4 of 12
Provides Capacity to Repatriate Capital and
Deliver Above-Average Returns
Common Equity Tier 1 Stressed Capital Erosion1
2.1%
2.6%
SunTrust Peer Median
#2 of 12
Strong Capital Position & Good CCAR
Performance
9.6%
~8-9%
Basel III CET1 Target Level
See appendix slide #27 for footnotes
20
RECAP: WHY INVEST IN SUNTRUST?
Strong & Diverse Franchise; Investing in Growth
On track for 6th consecutive year of EPS growth
1
Improving Efficiency & Returns
On track for 6th consecutive year of improvements in efficiency
2
Strong Capital Position
On track for 6th consecutive year of increased capital returns
Attractive dividend yield
3
APPENDIX
22
$16.1
$22.0
12%
15%
4Q 14 3Q 17
Outstanding ($B) % of Total Loans
OPTIMIZING THE BALANCE SHEET TO
ENHANCE RETURNS
Commercial
& Industrial
47%
Residential
Mortgage
(Non-
Guaranteed)
19%
Consumer
Lending
15%
Grow Consumer Lending1 Enhance Returns (NIM-FTE)2 Maintain Diversity1
2.91%
3.15%
2.95%
3.03%
2015 3Q 17
STI Peer Median
Good leverage to rising rates:
• Moderately asset sensitive balance sheet
with conservative deposit beta assumptions
• Fixed-rate consumer loan portfolio has low
duration
• Balance sheet optimization (consumer
lending growth) helps NIM in various rate
environments
See appendix slide #27 for footnotes
23
0.05%
0.13%
0.26%
0.31%
0.36% 0.36%
0.42%
0.46% 0.46% 0.47%
0.57%
0.77%
STI FITB MTB HBAN BBT USB KEY PNC RF CFG BAC WFC
4.53% 4.63% 4.78%
4.88% 5.13%
5.23% 5.28% 5.43%
5.63% 5.75%
6.50% 6.70%
STI HBAN BBT PNC CFG BAC KEY MTB FITB WFC RF USB
CCAR Average Loss Rate (2014-2017)
4 Year Standard Deviation of CCAR Average Loss Rate (2014-2017)
CCAR results continue to validate our consistent, disciplined underwriting & portfolio diversity
CONSISTENTLY STRONG CCAR PERFORMANCE
2014: 4.6%
2015: 4.5%
2016: 4.5%
2017: 4.5%
24
0.37%
0.42% 0.45%
0.48%
0.56% 0.59%
0.74%
0.84% 0.84%
0.89%
0.95% 0.96%
USB BBT HBAN STI FITB KEY BAC CFG PNC WFC MTB RF
0.11%
0.14%
0.19%
0.21%
0.24% 0.25%
0.29% 0.29%
0.35%
0.38% 0.39%
0.47%
MTB KEY PNC STI CFG HBAN FITB WFC BBT RF BAC USB
STRONG CREDIT QUALITY
3Q 17 Nonperforming Loan Ratio1
3Q 17 Net Charge-Off Ratio2
1. Represents nonaccrual loans divided by total loans (excluding loans held for sale). Source: SNL Financial as of September 30, 2017
2. Source: SNL Financial as of September 30, 2017
25
RECONCILIATION: ADJUSTED EFFICIENCY RATIO (FTE) &
ADJUSTED TANGIBLE EFFICIENCY RATIO (FTE)
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 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 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 (0.50%), (0.50%), (0.28%), (0.30%), (0.49%), and
(0.56%) for 2011, 2012, 2013, 2014, 2015, and 2016, respectively
Note: 2011, 2012, 2013, and 2014 values represent the adjusted efficiency ratio and adjusted tangible efficiency ratio, 2015 and 2016 represent reported efficiency ratio and reported tangible efficiency ratio
2011 2012 2013 2014 2015 2016
Reported (GAAP) Basis
Net Interest Income 5,065 5,102 4,853 4,840 4,764 5,221
Noninterest Income 3,421 5,373 3,214 3,323 3,268 3,383
Revenue 8,486 10,475 8,067 8,163 8,032 8,604
Noninterest Expense¹ 6,194 6,284 5,831 5,543 5,160 5,468
Efficiency Ratio 73.0% 60.0% 72.3% 67.9% 64.2% 63.6%
Reconciliation:
Net Interest Income 5,065 5,102 4,853 4,840 4,764 5,221
FTE Adjustment 114 123 127 142 142 138
Net Interest Income-FTE 5,179 5,225 4,980 4,982 4,906 5,359
Noninterest Income 3,421 5,373 3,214 3,323 3,268 3,383
Revenue-FTE 8,600 10,598 8,194 8,305 8,174 8,742
Efficiency Ratio-FTE 72.0% 59.3% 71.2% 66.7% 63.1% 62.6%
Adjustment Items (Noninterest Income):
3Q-4Q 12 student / Ginnie Mae loan sale (losses) (92)
Securities gain related to the sale of Coca Cola stock 1,938
Pre-tax mortgage repurchase provision related to loans sold to GSEs prior to 2009 (371)
GSE mortgage repurchase settlements (63)
RidgeWorth sale 105
Adjusted Noninterest Income 3,421 3,898 3,277 3,218 3,268 3,383
Adjusted Revenue-FTE² 8,600 9,123 8,257 8,200 8,174 8,742
Noninterest Expense¹ 6,194 6,284 5,831 5,543 5,160 5,468
Adjustment Items (Noninterest Expense):
Legacy affordable housing impairment 96
Charitable contribution of KO shares 38
Impact of certain legacy mortgage legal matters 323 324
Mortgage servicing advances allowance increase 96
Adjusted Noninterest Expense² 6,194 6,150 5,412 5,219 5,160 5,468
Amortization Expense 43 46 23 25 40 49
Adjusted Tangible Expenses² 6,151 6,104 5,389 5,194 5,120 5,419
Adjusted Efficiency Ratio-FTE³ 72.0% 67.4% 65.6% 63.7% 63.1% 62.6%
Adjusted Tangible Efficiency Ratio-FTE³ 71.5% 66.9% 65.3% 63.3% 62.6% 62.0%
26
RECONCILIATION OF EARNINGS PER SHARE
($ in millions, except per share amounts) 2012 2013
Net income available to common shareholders $1,931 $1,297
Significant items impacting the year:
Operating losses related to recognition of certain mortgage-related legal matters - 323
Mortgage repurchase provision related to repurchase settlements - 63
Provision for unrecoverable servicing advances - 96
Securities gains related to sale of Coke stock (1,938) -
Mortgage repurchase provision 371 -
Charitable expense related to the Coke stock contribution 38 -
Provision for credit losses related to NPL sales 172 -
Losses on sale of guaranteed loans 92 -
Valuation losses related to planned sale of Affordable Housing investments 96 -
Tax (benefit)/expense related to above items 416 (190)
Net tax benefit related to subsidiary reorganization and other - (113)
Net income available to common shareholders, excluding significant items impacting the year $1,178 $1,476
Net income per average common share, diluted $3.59 $2.41
Net income per average common share, diluted, excluding significant items impacting the year $2.19 $2.74
27
FOOTNOTES
Slide #22:
1. Data as of September 30, 2017. 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. Source: SNL Financial
All Slides:
Note: ‘LTM’ refers to the 12 months ended September 30, 2017. YTD refers to the 9 months ended September 30. Peer group includes BAC, BBT, CFG, FITB, HBAN, KEY, MTB, PNC, RF, USB, WFC
Slide #12:
1. For the three months ended September 30, 2017. Rates range from 2.49% to 17.49% depending on loan purpose, amount, term and credit profile
2. Represents FICO at the time of origination
Slide #19:
1. Represents the difference between the starting and minimum Basel III Common Equity Tier 1 Ratios resulting from the Federal Reserve’s 2017 CCAR severely adverse scenario. Following the release of 2017
DFAST Results, SunTrust investigated the driver of $1.1B in ‘other losses’ projected by the FRB. This loss resulted from a conservative interpretation of regulatory reporting requirements, which has since been
adjusted. Going forward this loss is expected to be ~$0.1B. Therefore, $1.0 billion of losses are excluded from the capital erosion in the 2017 DFAST results, which reduces stressed capital erosion to 2.1% from
2.5%
2. Payout Ratio = (Common Stock Dividends and Share Repurchases) / Net Income Available to Common Shareholders. Source: Barclays Research CCAR 2017 Review: $132bn of Capital to Be Returned Over Next 4
Quarters
3. As of November 30, 2017
Slide #5:
1. Source: SNL Financial. Represents projected population change from 2018-2023. Weighted average by deposits in MSAs and counties not in an MSA
2. Source: Bureau of Labor Statistics. Represents job growth from September 2014 to September 2017
3. Source: Bureau of Transportation Statistics. Represents water ports with the most containerized cargo tonnage
Slide #3:
1. Assets, loans, and deposits as of September 30, 2017
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 September 30, 2017.
Deposit rankings are sourced via FDIC deposit market share data, and are as of June 30, 2017, pro-forma for completed and pending mergers and acquisitions
3. Represents percent growth from 3Q 16 to 3Q 17
4. As of November 30, 2017
5. Return on average common shareholders’ equity was 8.5% for the 12 months ended September 30, 2017. The effect of excluding intangible assets, excluding MSRs, was 3.3%
Slide #4:
1. Source: SNL Financial, as of June 30, 2017, based on top 10 MSAs (by deposits) for each institution, pro-forma for completed and pending mergers and acquisitions. Numerator is company’s total deposits in its top
10 MSAs and denominator is total deposits in those 10 MSAs
2. Source: SNL Financial, as of June 30, 2017