2018 GOLDMAN SACHS US FINANCIAL SERVICES CONFERENCE Allison Dukes, Chief Financial Officer December 4, 2018 © 2018 SunTrust Banks, Inc. SunTrust is a federally registered trademark of SunTrust Banks, Inc.
IMPORTANT CAUTIONARY STATEMENT The following should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2017 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 or refer to the location where the reconciliation can be found in a prior release or presentation by the Company. The Company presents the following non-GAAP measures because many investors find them useful. Specifically: • Consistent with Securities and Exchange Commission Industry Guide 3, the Company presents revenue, net interest margin, and efficiency ratios on a fully taxable equivalent (“FTE”) basis. The FTE basis adjusts for the tax-favored status of net interest income from certain loans and investments using applicable federal and state income tax rates to increase tax-exempt interest income to a taxable-equivalent basis. • The Company presents certain capital information on a tangible basis, including return on average tangible common equity. These measures exclude the after-tax impact of purchase accounting intangible assets. • Similarly, the Company presents Efficiency ratio-FTE, Tangible efficiency ratio-FTE, and Adjusted tangible efficiency ratio-FTE. The efficiency ratio is computed by dividing Noninterest expense by Total revenue. Efficiency ratio-FTE is computed by dividing Noninterest expense by Total revenue-FTE. Tangible efficiency ratio-FTE excludes the amortization related to intangible assets and certain tax credits. Adjusted tangible efficiency ratio-FTE removes the impact of certain material and potentially non-recurring items from the calculation of Tangible efficiency ratio-FTE. • The Company presents adjusted EPS which excludes the impact of certain material and potentially non-recurring items. This presentation contains forward-looking statements. Statements regarding future levels of earnings per share, efficiency ratios, capital returns, investment banking market share, and capital ratios, future efficiency improvements, possible expansion of our commercial banking business, and the volatility of our financial performance in future economic cycles 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, 2017 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; 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 and communications systems and infrastructure may fail or may be the subject of a breach or cyber-attack that, if successful, could adversely affect our business and disrupt business continuity; 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, could adversely affect our business; natural disasters and other catastrophic events could have a material adverse impact on our operations or our financial condition and results; 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 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. 2
SUNTRUST OVERVIEW Purpose-Driven Culture Diverse Business Mix3 . Leading the onUp movement to improve financial confidence Consumer Banking (branch-based) (regional: Southeast & Mid-Atlantic) . Creator of Momentum onUp, an industry-leading Corporate & Investment Banking workplace financial wellness program offered to our (national) teammates and our Wholesale Banking clients Private Wealth Management Strong Franchise & Diverse Business Mix (growing national presence) . 13% deposit market share in top 10 MSA’s (double the Commercial Banking (growing national presence) 1 peer median) Consumer Lending (LightStream & partnerships: national; . Broad suite of lending, payment / depository, capital HELOC & credit card: regional) markets / advisory, and wealth management capabilities Mortgage → SunTrust Robinson Humphrey (STRH) is a leading (retail: regional; correspondent: national) middle-market corporate & investment bank Commercial Real Estate (national) Robust digital platform & set of capabilities → (received four Javelin ‘Leader’ Awards for online and mobile banking in October 2018) Optimal Strong Financial Optimal Market Position Size4 Performance5 . Well-diversified mix of regionally-focused businesses (within mid-sized and large metro markets of the Southeast and Mid-Atlantic) and more nationally- Assets: $211bn 45% EPS Growth oriented businesses . Top 10 across most dimensions2; large enough to compete with the largest banks, while still being small enough to serve our clients as OneTeam Loans: $147bn 17.1% ROTCE Proven, Consistent Track Record . Six consecutive years of higher earnings per share, Deposits: $160bn 3.2% Dividend Yield improved efficiency, and increased capital returns See appendix slide #30 for footnotes 3
PURPOSE-DRIVEN CULTURE TALENT PURPOSE APPROACH . Engaged, diverse . Our Purpose: . Advice-based, Lighting the Way to workforce with OneTeam, client- Financial Well- cohesive cultural first approach alignment Being . Conservative credit . Cultural fit is a key . onUp and culture supported by Momentum onUp factor in recruiting a strong risk created as an and promoting management extension of our talent framework Purpose . Significant . Compensation investment in our . We believe structure and everyone should teammates rewards / promotion through multiple have access to process creates development, financial well-being strong owner resources, not just training, and alignment educational our teammates and clients programs 4
INVESTMENT THESIS th Proven, consistent track record: 2017 marked the 6 consecutive year of improvement across key metrics; 2018 on track to be the 7th consecutive year 1 2 3 Investing in Growth & Improving Efficiency Strong Capital & Risk Technology & Returns Position (Earnings per share1) (Adjusted tangible efficiency ratio2) (Dividends & share buybacks as a % of net income) $4.09 71.5% 89% $3.58 $3.60 $3.24 73% $2.74 66.9% 62% $2.19 65.3% 48% 63.3% 62.6% 62.0% 26% $0.94 61.0% 8% 11% 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017 3 ~7 Year Total Shareholder Return: 303% (peer median: 166% ) 1. 2012, 2013, 2014, and 2017 values represent adjusted earnings per share. The impact of excluding discrete items was ($1.40), $0.33, $0.01, and ($0.39) for 2012, 2013, 2014, and 2017, respectively. Please refer to appendix slide #28 for GAAP reconciliations 2. Adjusted figures are intended to provide management and investors information on trends that are more comparable across periods and potentially more comparable across institutions. There were no adjustments in 2011, 2015, and 2016. GAAP efficiency ratios were 73.0%, 60.0%, 72.3%, 67.9%, 64.2%, 63.6%, and 64.1% for 2011, 2012, 2013, 2014, 2015, 2016, and 2017, respectively. Please refer to appendix slide #29 for GAAP reconciliations 3. Source: Bloomberg. Reflects 12/31/2011 – 11/29/2018. Peer group consists of BAC, BBT, CFG, FITB, HBAN, KEY, MTB, PNC, RF, USB, WFC. Dividends assumed to be reinvested in same security 5
1 INVESTING IN GROWTH & TECHNOLOGY
GROWTH REQUIRES TALENT & TECHNOLOGY Primary Growth Inputs TALENT TECHNOLOGY (focus of slides 8-10) (focus of slides 12-15) In certain businesses, we In other businesses, we win by leading with win by leading with talent through an advice- technology, supported by driven model, supported talent through an advice- by technology driven model Corporate & Investment Banking Consumer Banking (deposits) Commercial Banking Consumer Lending Commercial Real Estate Treasury & Payments Private Wealth Management 7
WHOLESALE SEGMENT: COMPETITIVE ADVANTAGE Clear competitive advantage . Full product and industry expertise served as OneTeam to middle- Universal Regional Boutique market clients Banks Banks Firms Mature platform . Robinson Humphrey acquired in 2001, integrated strategy began in 2005 Full Product Capabilities . M&A and Equity have grown to represent 30% of capital markets revenues Industry Vertical Proven track record Expertise . 10 consecutive years of record investment banking income Balance Sheet Strong reputation . STRH is a leading middle-market corporate & investment bank . Validated by national recognition from Atlas Awards and Middle-Market Focus International Financing Review Attracting, retaining, and exporting top tier talent OneTeam . STRH provides a unique talent Approach acquisition and development vehicle . Many of the key leaders across Wholesale came to SunTrust via STRH 8
STRH: PROVEN SUCCESS WITH FUTURE POTENTIAL ~1.5-2% ~2-2.5% ~5% 2014 Market Share1 Current Market Share1 Future Market Share1 The Path to ~5% Market Share 1 2 3 Increase Relevance with Improve Advisory Grow Capital Markets Revenue Existing Clients Capabilities from Non-CIB Clients3 (focus of next slide) 30% $126 23% $64 M&A / Equity as Capital Markets % of Capital Revenue from Left Lead Markets non-CIB clients Relationships Revenue ($MM) 2014 3Q 18 2014 LTM 2014 LTM • Reflection of consistent client coverage • M&A / Equity still comprise a small • Reflection of OneTeam approach and efforts and proven execution component of the business but growth in investments in talent (including creation these areas is outpacing debt capital of corporate finance and industry • SunTrust serves as the left lead bank for markets, reflective of strategic specialty teams) <15% of clients investments → Strategy began in 2014, strong → Significant opportunity remains to → M&A: 18% CAGR2 momentum deepen relationships with existing → Equity-Related: 17% CAGR2 • Recent growth in capital markets clients and expand core STRH client base → Debt Capital Markets: 8% CAGR2 revenue driven by M&A See appendix slide #30 for footnotes 9
COMMERCIAL BANKING: COMPETITIVE ADVANTAGE Overview Competitive Position . Traditional Commercial Banking client: $25MM – $250MM in annual revenue (privately held) Universal Banks $10B → SunTrust has ~10k Commercial Banking Client Size $1B clients → Primarily within traditional Southeast / Mid-Atlantic markets Regional BanksSunTrust Commercial Banking $100MM Capture underserved market by bringing . Our strategy: bring the skills, discipline, and client advisory solutions to smaller clients coverage model from STRH (including product and industry expertise) to Commercial Banking clients $25MM Regional & Community Banks Client Needs through a local delivery model Deposits / Loans Risk Mgmt. Capital Alt. Liquidity M&A / Strategic → The vast majority of division presidents Treasury Mgmt. Solutions Raising Solutions Solutions now have a background in investment Advisory Solutions banking (most previously worked at STRH) → Created targeted industry specialties (e.g. Proven Success with Significant Growth Potential aging services, ports & logistics, restaurants & retail) Future Growth Drivers: . Differentiated business model affords us the • Capture additional market opportunity to serve clients outside of traditional share in existing markets retail banking footprint • Continued build out of → Recently expanded into Ohio and Texas product & industry Average expertise (helps drive Revenue Per capital markets revenue) Client → Recently expanded scope of Aging Services vertical to be national 2014 LTM • Geographic expansion 10
GROWTH REQUIRES TALENT & TECHNOLOGY Primary Growth Inputs TALENT TECHNOLOGY (focus of slides 8-10) (focus of slides 12-15) In certain businesses, we In other businesses, we win by leading with win by leading with talent through an advice- technology, supported by driven model, supported talent through an advice- by technology driven model Corporate & Investment Banking Consumer Banking (deposits) Commercial Banking Consumer Lending Commercial Real Estate Treasury & Payments Private Wealth Management 11
TECHNOLOGY PRIORITIES (THE ‘WHAT’) EXPERIENCE EFFICIENCY SECURITY Meet clients where they Modernize our architecture to Leverage technology as a choose to do business and maximize agility & drive defense; stay ahead of risks provide for a superior, efficiencies differentiated experience 12
KEY DRIVERS OF TECH SUCCESS (THE ‘HOW’) Less complexity than larger banks (including fewer legacy systems) Strong alignment and coordination between Consumer Cloud first, cloud native and Wholesale CTOs and their business partners strategy . Reduces cost to serve Simple . Enables continuous Business deployment Model Lean into partnerships and leverage APIs . Broadens the financial services ecosystem beyond traditional banking channels Agile Cloud -Based, . Connects disparate client experiences Fewer, leaner, cross- Delivery Open functional teams Teams Architecture . Removes friction Framework . Maximizes speed to market; better, faster, more frequent upgrades 13
NATIONALLY RECOGNIZED CLIENT EXPERIENCE Mobile Sign-Ons Full-Service Branches 3 Leader Awards (Online Banking) Money Movement JAVELIN Customer Service (Oct 2018) Security Empowerment Leader Award (Mobile Banking) 5% Account Opening 22% CAGR CAGR JAVELIN 3 Contender Awards (Oct 2018) Ease of Use Oct-12 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17 Oct-18 Money Movement Security Empowerment Focused on delivering the best client experience through: Increased functionality BI INTELLIGENCE MITEK → >90% of consumer products can now be opened on a mobile device Most Desirable Mobile Top 5 Financial Institutions → P2P transactions up ~300% since launch of Zelle in 4Q 17 Banking Features for for Best Mobile Deposit Ease of use; higher engagement Account Management User Experience → Intuitive designs and functionalities (Oct 2018) (Oct 2018) Promoting financial confidence → Leveraging data & analytics to anticipate client needs Mobile App Average Rating → Digital account openings up 30% YoY (4.2 stars)1 See appendix slide #30 for footnotes 14
MEETING CLIENTS WHERE THEY MAKE THE DECISION $4.7 $3.8 DIRECT AT THE POINT (MOBILE & ONLINE) OF SALE LS Avg. GreenSky (GS): Balance LightStream (LS): ($BN) primary partner, national online provides financing unsecured 3Q 17 3Q 18 for home consumer lending improvement platform projects $2.3 SmartGuide: 2 additional SunTrust’s digital $1.9 partners added in mortgage 2018 (focused on application home improvement) GS Avg. Balance ($BN) 3Q 17 3Q 18 MultipleMultiple Channels Channels Provide Provide for for a a Frictionless Frictionless Experience Experience 59% 48% User-Friendly Convenient Efficient Private Smart - digital front-end enables clients to conduct quick decision and clients can apply Guide with a simple business when, where, and funding for the client; from the privacy of Adoption application process how they choose lower cost to serve their home Rate 2Q 18 3Q 18 15
2 IMPROVING EFFICIENCY & RETURNS
COMMITTED TO CONTINUOUS IMPROVEMENT Cost Saving Initiatives… Increase automation and Upgrade and digitize core Continue transition self-service channels systems to cloud-based systems Streamline operations and Consolidate branch network Optimize vendor optimize staffing models and non-branch real estate relationships Key Takeaways 65.3% . We will achieve our <60% target . Fostering a culture of 63.3% continuous improvement is as 62.6% 62.0% important as this goal 61.0% 61.4% → We have further <60% 59.9% opportunity beyond <60% Adjusted Tangible . Efficiencies generate capacity Efficiency Ratio TER to invest in growth and (FTE)1 Target technology 2013 2014 2015 2016 2017 2019 or YTD 17 YTD 18 sooner …Fund Investments in Growth & Technology 1. Adjusted figures are intended to provide management and investors information on trends that are more comparable across periods and potentially more comparable across institutions. There were no adjustments in 2015 and 2016. GAAP 17 efficiency ratios were 72.3%, 67.9%, 64.2%, 63.6%, 64.1%, 63.2%, and 61.2% for 2013, 2014, 2015, 2016, 2017, YTD 17, and YTD 18, respectively. Please refer to appendix slide #29 for GAAP reconciliations
3 STRONG CAPITAL & RISK POSITION
WELL POSITIONED FOR THROUGH-THE-CYCLE PERFORMANCE Diverse Balance Sheet and Business Mix Governed by Emphasis on Discipline Loan Mix1 Business Mix2 . Diverse loan portfolio and business mix CRE → Good mix of national and 6% regional businesses; all Mortgage Home 9% businesses except branch- Consumer Equity Banking based banking have a growing 7% Consumer Lending (branch- national presence Commercial & 9% based) 31% . Disciplined focus; strict internal Consumer Industrial 46% Lending Commercial limits govern intra- and inter- 16% Banking diversity 12% Residential Private Corporate & → C&I portfolio diversified Mortgage (non- Wealth Investment across 20+ industries Management guaranteed) Banking 13% . Improved capabilities (risk 19% 21% monitoring, underwriting, and fraud detection), largely enabled by data & analytics 5.4% . Strength and diversity of portfolio 0.5% validated by consistently strong CCAR performance 0.3% → Lowest average loan losses 4.7% relative to peers Average 5-year → 2nd lowest standard deviation #1 of 12 CCAR Loan #2 of 12 Standard 3 4 of average loan loss rate Loss Rate Deviation STI Peer Median STI Peer Median See appendix slide #30 for footnotes 19
STRONG CAPITAL POSITION Strong Capital Position & Strong CCAR Provides Capacity to Repatriate Capital and Performance Deliver Above-Average Returns Common Equity Tier 1 Average Stressed Capital Total Announced Payout Dividend Ratio1 Erosion2 Ratio3 Yield4 2.8% 3.2% 9.6% 117% 3.0% 2.1% ~8-9% 103% Basel III CET1 Target Level SunTrust Peer Median SunTrust Peer Median SunTrust Peer Median See appendix slide #30 for footnotes 20
RECAP: KEY MESSAGES We have a comprehensive, diverse business mix with several 1 differentiated businesses and capabilities (STRH, Commercial Investing in Growth & Banking, LightStream, partnerships) We have made, and will continue to make, the requisite Technology investments in technology & talent to create differentiated client experiences We have fostered a culture of continuous improvement in 2 efficiency; <60% is not the final destination Improving Efficiency Improvements in efficiency, continued return discipline, capital & Returns deployment, and a favorable operating environment have driven good ROTCE improvements We have a high quality, diverse balance sheet that we believe 3 Strong Capital & will demonstrate strong through-the-cycle performance Our risk profile supports a lower capital position which gives us Risk Position the opportunity to deploy capital on behalf of, or to, our owners We have an attractive dividend yield 1 Underpinned by a Purpose-Driven Culture 1. See slide #4 for details 21
APPENDIX
YTD 18 EARNINGS HIGHLIGHTS Revenue Growth, Improved Efficiency, and Favorable Operating Environment Drive Strong Results Return on Tangible Common Earnings Per Share Net Interest Margin (FTE)1 Tangible Efficiency Ratio2 Equity3 17.1% $4.34 3.26% 61.4% 3.13% 59.9% 12.1% $3.00 YTD 17 YTD 18 YTD 17 YTD 18 YTD 17 YTD 18 YTD 17 YTD 18 1. GAAP NIM for YTD 17 and YTD 18 were 3.05% and 3.22%, respectively. Reconciliations to GAAP can be found on page #22 of the 3Q 18 earnings release 2. GAAP efficiency ratios for YTD 17 and YTD 18 were 63.2% and 61.2%, respectively. Please refer to appendix slide #29 for GAAP reconciliations 23 3. GAAP ROE for YTD 17 and YTD 18 were 8.8% and 12.3%, respectively. Reconciliations to GAAP can be found on page #22 of the 3Q 18 earnings release
CONSUMER LENDING DETAILS LightStream GreenSky Partnership Credit Card $4.7 $2.3 $1.6 $3.8 $1.5 Strong $1.9 Growth (Average Balance $bn) 3Q 17 3Q 18 3Q 17 3Q 18 3Q 17 3Q 18 Good Risk- Yield: 6.06% Yield: 3.65%2 Yield: 11.71% Adjusted 2 1 NCO: 0.83% NCO: 0.00% NCO: 3.07% Returns Received Top 5 scores for 3 cards in Nationally Named Finalist for Top Consumer Named as CNBC’s Top 50 Disruptor the 2016 ranking by U.S. News & Recognized Lending Platform by LendIt3 for 2017 World Report Less than ~15% of GreenSky SunTrust only has ~25% wallet share Future Currently have less than ~2% of the customers are SunTrust clients with the clients that already have a applicable market share Growth Opportunity for new partnerships SunTrust card (2 partners added in 2018) 6% of Total Loans | High-Quality Portfolios (Average FICO: 750+) | Good Risk-Adjusted Returns See appendix slide #30 for footnotes 24
STRONG DEPOSIT FRANCHISE Strong Deposit Market Share 1 Deposit Market Share in Each Bank’s Top 10 MSAs 22% 14% 13% 12% 10% 8% 6% 6% 5% 4% 3% 3% BAC USB STI WFC HBAN FITB RF BBT PNC CFG MTB KEY Improved Execution 2 % of Branches with YoY Deposit Growth SunTrust ranked #3 out of 25 (behind JPM & BAC) 86% 73% 73% 68% 69% 71% 62% 61% 51% 23% 2013 2014 2015 2016 2017 STI Top 25 Bank Median See appendix slide #30 for footnotes 25
CONSISTENTLY STRONG CCAR PERFORMANCE Average CCAR Loan Loss Rate (2014-2018)1 2014: 4.6% 2015: 4.5% 2016: 4.5% 2017: 4.5% 6.50% 6.64% 2018: 5.2% 5.68% 5.70% 5.72% 5.44% 4.94% 4.98% 5.18% 5.20% 4.66% 4.76% STI HBAN PNC BBT BAC CFG KEY MTB WFC FITB RF USB 2 5 Year Standard Deviation of Average CCAR Loan Loss Rate (2014-2018) 0.68% 0.61% 0.62% 0.55% 0.52% 0.50% 0.43% 0.40% 0.40% 0.34% 0.30% 0.24% FITB STI USB RF HBAN PNC BAC KEY BBT MTB CFG WFC CCAR results continue to validate our consistent, disciplined underwriting & portfolio diversity See appendix slide #30 for footnotes 26
STRONG CREDIT QUALITY 3Q 18 Nonperforming Loan Ratio1 0.97% 0.72% 0.73% 0.76% 0.67% 0.71% 0.55% 0.57% 0.46% 0.47% 0.35% 0.29% USB BBT FITB STI HBAN BAC RF KEY CFG WFC PNC MTB 2 % Criticized Commercial 5.9% 5.4% 4.8% 4.0% 4.2% 4.2% 4.3% 3.4% 3.5% 2.9% 3.0% 1.8% BBT STI BAC USB FITB KEY RF MTB PNC WFC CFG HBAN LTM Net Charge-Off Ratio3 0.47% 0.43% 0.35% 0.35% 0.36% 0.27% 0.29% 0.24% 0.25% 0.19% 0.20% 0.14% MTB HBAN PNC STI KEY CFG WFC FITB BBT RF BAC USB See appendix slide #30 for footnotes 27
RECONCILIATION OF EARNINGS PER SHARE ($ in millions, except per share amounts) 2012 2013 2014 2017 Net income available to common shareholders $1,931 $1,297 $1,722 $2,179 Significant items impacting the year: 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 - - - Charges for legacy mortgage-related matters - 482 324 - Gain on sale of Ridgeworth - - (105) - Gain on sale of Premium Assignment Corporation - - - (107) Securities & MSR losses in connection with tax reform-related actions - - - 114 Contribution to communities / teammates in connection with tax-reform - - - 75 Efficiency related charges as outlined in 12/4/17 8-K - - - 36 Tax (benefit)/expense related to above items 416 (190) (82) (41) Net tax benefit related to subsidiary reorganization and other - (113) - - Tax benefit related to completion of tax authority examination - - (130) - Net tax benefit related to revaluation of net deferred tax liability and other discrete tax items - - - (291) Tax expense related to SunTrust Mortgage ("STM") state NOL valuation allowance adjustment - - - 27 Net income available to common shareholders, excluding significant items impacting the year $1,178 $1,476 $1,729 $1,991 Net income per average common share, diluted $3.59 $2.41 $3.23 $4.47 Net income per average common share, diluted, excluding significant items impacting the year $2.19 $2.74 $3.24 $4.09 28
RECONCILIATION: ADJUSTED EFFICIENCY RATIO (FTE) & ADJUSTED TANGIBLE EFFICIENCY RATIO (FTE) 2011 2012 2013 2014 2015 2016 2017 YTD 17 YTD 18 Reported (GAAP) Basis Net Interest Income 5,065 5,102 4,853 4,840 4,764 5,221 5,633 4,199 4,440 Noninterest Income 3,421 5,373 3,214 3,323 3,268 3,383 3,354 2,520 2,408 Revenue 8,486 10,475 8,067 8,163 8,032 8,604 8,987 6,719 6,848 Noninterest Expense¹ 6,194 6,284 5,831 5,543 5,160 5,468 5,764 4,243 4,191 Efficiency Ratio 73.0% 60.0% 72.3% 67.9% 64.2% 63.6% 64.1% 63.2% 61.2% Reconciliation: Net Interest Income 5,065 5,102 4,853 4,840 4,764 5,221 5,633 4,199 4,440 FTE Adjustment 114 123 127 142 142 138 145 107 65 Net Interest Income-FTE 5,179 5,225 4,980 4,982 4,906 5,359 5,778 4,306 4,505 Noninterest Income 3,421 5,373 3,214 3,323 3,268 3,383 3,354 2,520 2,408 Revenue-FTE 8,600 10,598 8,194 8,305 8,174 8,742 9,132 6,826 6,913 Efficiency Ratio-FTE 72.0% 59.3% 71.2% 66.7% 63.1% 62.6% 63.1% 62.2% 60.6% 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 Premium Assignment Corporation sale 107 Securities & MSR losses in connection with tax reform-related actions (114) Adjusted Noninterest Income 3,421 3,898 3,277 3,218 3,268 3,383 3,361 2,520 2,408 Adjusted Revenue-FTE² 8,600 9,123 8,257 8,200 8,174 8,742 9,139 6,826 6,913 Noninterest Expense¹ 6,194 6,284 5,831 5,543 5,160 5,468 5,764 4,243 4,191 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 Efficiency related charges as outlined in 12/4/17 8-K 36 Contribution to communities / teammates in connection with tax-reform 75 Adjusted Noninterest Expense² 6,194 6,150 5,412 5,219 5,160 5,468 5,653 4,243 4,191 Amortization Expense 43 46 23 25 40 49 75 49 51 Adjusted Tangible Expenses² 6,151 6,104 5,389 5,194 5,120 5,419 5,578 4,194 4,140 Adjusted Efficiency Ratio-FTE³ 72.0% 67.4% 65.6% 63.7% 63.1% 62.6% 61.9% 62.2% 60.6% Adjusted Tangible Efficiency Ratio-FTE³ 71.5% 66.9% 65.3% 63.3% 62.6% 62.0% 61.0% 61.4% 59.9% 1. In accordance with updated GAAP, amortization of affordable housing investments were reclassified and are now presented in provision for income taxes for 2013. 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%), (0.56%), (0.82%), (0.72%), and 29 (0.74%) for 2011, 2012, 2013, 2014, 2015, 2016, 2017, YTD 17, and YTD 18, respectively
FOOTNOTES Slide #3 1. Source: SNL Financial, as of June 30, 2018, 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. Refers to rank amongst U.S. bank holding companies with respect to assets, loans, and deposits 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, 2018. Deposit rankings are sourced via FDIC deposit market share data, and are as of June 30, 2018, pro-forma for completed and pending mergers and acquisitions 3. Represents the revenue by line of business for the 12 months ended September 30, 2018 4. Assets, loans, and deposits as of September 30, 2018 5. EPS growth refers to growth from YTD 17 to YTD 18. ROTCE for YTD 18; GAAP ROE for YTD 18 was 12.3% and reconciliation to GAAP can be found on page 22 of the 3Q 18 earnings release. Dividend yield as of November 29, 2018 Slide #9 1. Refers to market share across Dealogic-tracked products (debt capital markets, M&A, and equity capital markets) within middle market and mid-corporate coverage universe of STRH, based on Dealogic’s data. Coverage universe consists of a combination of Corporate Banking and Investment Banking client and prospect populations as well as any completed transactions where Dealogic has deemed STRH to have had a role. (Latter generally relates to clients within non-CIB segments for whom STRH has delivered capital markets or M&A solutions) 2. CAGR represents growth rate from 2014 to LTM. Equity-Related includes equity originations, equity sales & trading, and equity derivatives. Debt Capital Markets includes loan syndications, IG, and HY 3. Non-CIB clients consist of Commercial Banking (CML), Commercial Real Estate (CRE), and Private Wealth Management (PWM) Slide #14 1. Source: iOS and Android app store as of November 29, 2018. Represents the average between iOS and Android ratings Slide #19 1. Data as of September 30, 2018. 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 2. Represents the revenue by line of business for the 12 months ended September 30, 2018. Totals may not foot due to rounding 3. Represents the average loan loss rate in the severely adverse scenario for CCAR 2014-2018 4. Represents the 5 year standard deviation of average loan loss rates in the severely adverse scenario for CCAR 2014-2018 Slide #20 1. If a 250% risk-weighting for MSRs (as contemplated in the FRB’s ‘Simplifications’ NPR) was applied, the Common Equity Tier 1 ratio would be 9.4%. Ratios estimated as of September 30, 2018 2. Represents the average difference between the starting and the projected minimum Basel III Common Equity Tier 1 Ratios from the Federal Reserve’s 2014-2018 CCAR severely adverse scenarios. 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% 3. Payout Ratio = (Common Stock Dividends and Share Repurchases) / Consensus Net Income Available to Common Shareholders for CCAR 2018. Source: Barclays Research CCAR 2018 Review: $164bn of Capital to Be Returned Over Next 4 Quarters 4. As of November 29, 2018 Slide #24 1. Yield as of 3Q 18. NCO represents the last 12 months ended September 30, 2018 2. Represents GAAP yield to SunTrust. SunTrust has a loss sharing agreement with GreenSky. 0.00% NCO indicates that losses have not exceeded those provided for in the loss share agreement 3. Refers to the 2017 LendIt Conference, a global conference series connecting the online lending community Slide #25 1. Source: SNL Financial, as of June 30, 2018, 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 Slide #26 1. Represents the average loan loss rate in the severely adverse scenario for CCAR 2014-2018 2. Represents the 5 year standard deviation of average loan loss rates in the severely adverse scenario for CCAR 2014-2018 Slide #27 1. Represents nonaccrual loans divided by total loans (excluding loans held for sale). Source: SNL Financial as of September 30, 2018 2. Represents criticized loans as % of total commercial loans. Regulatory data sourced from SNL Financial as of September 30, 2018 3. Source: SNL Financial as of September 30, 2018 All Slides: Note: Peer group consists of BAC, BBT, CFG, FITB, HBAN, KEY, MTB, PNC, RF, USB, WFC. LTM refers to last 12 months ended September 30, 2018 30