EX-99.1 2 dex991.htm SLIDE PACKAGE TO BE PRESENTED MAY 15, 2007 Slide Package to be presented May 15, 2007
Driving Shareholder Value
James M. Wells III
President and Chief Executive Officer
Mark A. Chancy
Corporate Executive Vice President and Chief Financial Officer
UBS 2007 Global Financial Services Conference
May 15, 2007
Exhibit 99.1

1
The following should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2006 Annual Report
on Form 10-K, Quarterly Report for the period ended March 31, 2007 and Current Reports on Form 8-K.
The information in this presentation may contain forward-looking statements. Statements that do not describe historical or current facts, including
statements
about
beliefs
and
expectations,
are
forward-looking
statements.
These
statements
often
include
the
words
“believes,”
“expects,”
“anticipates,”
“estimates,”
“intends,”
“plans,”
“targets,”
“initiatives,”
“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
SunTrust’s management and on information currently available to management. The forward-looking statements are intended to be subject to the safe
harbor
provided
by
Section
27A
of
the
Securities
Act
of
1933
and
Section
21E
of
the
Securities
Exchange
Act
of
1934.
Such
statements
speak
as
of
the date hereof, and SunTrust does 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
involve
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 the Company’s 2006 Annual Report on Form 10-K, in the Company’s Quarterly
Reports on Form 10-Q, and in the Current Reports on Form 8-K filed with the Securities and Exchange Commission and available at the Securities and
Exchange Commission's internet site (http://www.sec.gov).  Those
factors include: changes in general business or economic conditions, including
customers’
ability to repay debt obligations, could have a material adverse effect on our financial condition and results of operations; our trading assets
and financial instruments carried at fair value expose the Company to certain market risks; changes in market interest rates or capital markets could
adversely
affect
our
revenues
and
expenses,
the
values
of
assets
and
obligations,
costs
of
capital,
or
liquidity;
the
fiscal
and
monetary
policies
of
the
federal government and its agencies could have a material adverse effect on our earnings; significant changes in securities markets or markets for
commercial or residential real estate could harm our revenues and profitability; customers could pursue alternatives to bank deposits, causing us to
lose
a
relatively
inexpensive
source
of
funding;
customers
may
decide
not
to
use
banks
to
complete
their
financial
transactions,
which
could
affect
net
income; we have businesses other than banking, which subjects us
to a variety of risks; hurricanes and other natural disasters may adversely affect
loan portfolios and operations and increase the cost of doing business; negative public opinion could damage our reputation and adversely impact our
business; we rely on other companies for key components of our business infrastructure; we depend on the accuracy and completeness of information
about clients and counterparties; regulation by federal and state agencies could adversely affect our business, revenues, and profit margins;
competition
in
the
financial
services
industry
is
intense
and
could
result
in
losing
business
or
reducing
profit
margins;
future
legislation
could
harm
our
competitive position; 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 accounts for most of our revenues and could affect our liquidity and ability to pay dividends; 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 without whom our operations may suffer; we may be unable 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 strategy; our accounting policies and methods are key to how we report financial condition
and
results
of
operations,
and
may
require
management
to
make
estimates
about
matters
that
are
uncertain;
our
stock
price
can
be
volatile;
changes
in
our
accounting
policies
or
in
accounting
standards
could
materially
affect
how
we
report
our
financial
results
and
condition;
and
our
disclosure
controls
and
procedures
may
fail
to
prevent
or
detect
all
errors
or
acts
of
fraud.

2
Driving Shareholder Value
Accelerating and Expanding Initiatives to Drive Shareholder Value
SunTrust is a unique franchise that has not yet fully capitalized on the
growth opportunities in its markets
Management is taking significant actions to improve financial performance
Existing initiatives to be meaningfully accelerated and expanded
upon:
–
E
2
Efficiency and Productivity Initiative cost savings increased by over $200M.  Original
implementation timeline to be accelerated -
$530M in cost savings for fiscal year 2009, over 10%
of current expense base
–
In the context of capital optimization, 4.5M shares, or 9%, of our Coca-Cola common stock holdings
have
been
sold;
SunTrust
will
explore
alternatives
for
remaining
shares
in
the
context
of
capital
optimization and communicate its ultimate strategy by year-end
–
Management
is
conducting
a
comprehensive
review
of
balance
sheet
and
business
lines
to
identify
underperforming assets
–
Plans
to
further
optimize
capital
structure,
including
potential
share
repurchases
of
up
to
$1B
in
2007
SunTrust is committed to delivering results

3
Estimated Gross Cost Savings1
Estimated cost savings for 2007
increased $46M to $181M as program
gains momentum
For fiscal year 2009,
the additional
reductions translate into over $200M in
additional cost savings
–
Previous 2009 estimates were given on a
run-rate basis, the new $530M estimate is
expected to be achieved during the fiscal
year
Expanded the estimated cost savings in
a number of key areas:
–
Corporate Real Estate
–
Process Reengineering
–
Organizational Review
Savings for fiscal year 2009 represent
over 10% of current expense base
Highlights
Notes:
1
Does not include one-time costs associated with implementation, including severance
2
Straight-line interpolation of previous guidance to convert from end-of-year run rate to fiscal  year impact;
previously communicated year-end run rates were $250M for 2008 and $400M for 2009
E
2
Efficiency and Productivity Program:                         
Accelerating and Expanding Initiatives’
Impact through 2009
Cumulative
Total
2007
2008
2009
Corporate Real Estate
$100
Supplier Management
115
Offshoring/Outsourcing
45
$181
$350
$530
Process Reengineering
125
Organizational Review
145
Previous
E
2
Estimates     
(converted to fiscal
year estimates)
$135
$205²
$325
2
Additional
Savings
$46
$145
$205

4
$28.6
Previous
2007
Estimate
Total realized expense reductions achieved through the end of 1Q
1
1
Does
not
include
initial
costs
associated
with
implementation,
including
severance.
($ in millions)
2007 Gross Cost
Savings Are Now
Estimated to be
$181M
Exceeds Original
Estimate by   
$46M
E
2
Efficiency and Productivity Program:                         
Accelerating and Expanding Initiatives
Current
2007
Estimate
E
2
2007 Estimated Gross Cost Savings¹
Additional estimated gross cost savings for 2007
$0.0
$45.0
$90.0
$135.0
$180.0

5
($ in millions)
Noninterest Expense
Initial Implementation Costs
Noninterest Expense Excluding
Initial Implementation Costs
1Q 2007
1Q 2006
% Change
$1,236.0
13.8
$1,222.2
$1,226.5
4.0
$1,222.5
0.8%
0.0%
Results already apparent, as core expense growth was flat 1Q 2007 over 1Q 2006
E2 Efficiency and Productivity Program:                        
Accelerating and Expanding Initiatives

6
Coca-Cola Stock Holdings
Historical View of Coca-Cola Holdings
•
In 1919, SunTrust provided underwriting services to The Coca-Cola Company and received
some of the company’s first publicly-traded stock for its services
•
SunTrust held 48.2 million common shares of Coca-Cola Stock as of March 31, 2007
•
Book basis is $110,000; market value was approximately $2.3B on March 31, 2007
•
Generates dividend income of $0.16 per STI share, or $66M pre-tax annually
•
Coca-Cola holdings provide other benefits:
-
45% of pre-tax market value of Coca-Cola holdings is counted in Tier 2 Capital, or approximately $1B
-
Rating agencies provide varying amounts of capital credit

7
Coca-Cola Stock Holdings
Current Capital Inefficiency
In 2006, SunTrust set its reported Tier 1
target at 7.50%
The after-tax value of the KO holdings of
approximately $1.6 billion does not receive
Tier 1 treatment
Discussed with Regulators and Ratings
Agencies that SunTrust considers
approximately 75% of the after-tax value as
core capital
As a result, STI is unable to leverage the 25%
component in its business or return it to
shareholders
–
Over $390 million at the end of first quarter 2007
Sale of 4.5 million shares returns
approximately $150 million in after-tax value
to shareholders
1
Assumes KO price of $52.69 as of 5/11/07.
Partial Return of Coke-Related Capital
1
7.50%
Target
7.60%
8.32%
8.56%
Tier 1 Capital
Current level as of
3/31/07
Adds $1.2B
or 75% of after-tax
value
Underleveraged
capital of $394M or
25% of after-tax value

8
Coca-Cola Stock Holdings
Strategy Going Forward
•
The Board has recently authorized a formal review of the Coca-Cola holdings in the
context of capital optimization, including partial disposition of capital inefficient position
•
As a result, 4.5M shares, or 9%, of current position was recently sold
•
For
the
remaining
shares,
management
is
evaluating
a
broad
range
of
strategies:
-
maintain as long-term component of capital structure at specified level
-
sell and retain resulting capital
-
sell and repurchase additional STI shares
-
evaluate tax-efficient opportunities similar to 4Q 2006 contribution strategy
•
Committed to resolve how to use the Coca-Cola holdings to make the capital
structure more efficient for shareholders; will communicate by year-end

9
Consumer
10%
Other
1%
1–4 Family
28%
Home Equity
11%
Construction
and CRE
22%
Commercial
28%
Balance Sheet Initiatives—Focus on Risk Adjusted Returns
Net Interest Margin (1Q07)
While NIM has benefited from recent
restructuring activities, it remains at low end of
peer range
–
conservative loan mix and loan yields are primary driver of
margin level vs peers
Management has committed to a comprehensive
review of the balance sheet and lines of
business
–
will review risk-adjusted returns and valuation of all asset
classes/business lines with focus on lower yield loan
portfolios
–
areas not meeting requirements will be evaluated for
divestiture
–
Balance sheet management process continues to focus on
opportunities to divest underperforming asset classes,
improve operating metrics (NIM, ROE), and gain capital
and liquidity flexibility
Implement initiatives to drive higher-yield loan
growth
–
focus on building out business banking—higher spread
and greater profitability
–
increasing emphasis on risk-adjusted pricing
for
loan
book
–
moving to originate and sell model where appropriate
Loan Portfolio
1
Highlights
4.95
3.02
3.01
2.95
3.69
3.61
3.51
3.50
3.44
2.61
3.99
0.00
1.00
2.00
3.00
4.00
5.00
6.00
WFC
RF
NCC
BBT
USB
KEY
FITB
STI
WB
PNC
BAC
Peer Median: 3.50%
Note:
1 Quarterly average for 1Q 2007.  Does not include loans held for sale. 
$122B; 6.7% yield

10
Capital Optimization
Returning Capital to
Common Equity Shareholders
Optimization Strategy
•
Plan to repurchase incremental
$750M -
$1B of shares in 2007
–
Includes after-tax proceeds from
completed sale of Coca-Cola
shares of approximately $150M
–
Remaining portion, approximately
$600M -
$850M, to come via
balance sheet initiatives and
internal capital generation
•
Developing plans to lower cost of
capital by further optimizing and
diversifying capital base
–
Evaluating hybrid capital structures
and the replacement of legacy
TRuPs with higher equity content
TRuPs
2007E
>90
Expect to return over 90% of net income to shareholders in
2007 through share repurchase and dividends
including $1B in 2006
(1)
Includes the Accelerated Share Repurchase program announced in
(2)
Buyback amounts shown in chart are before any reduction from other capital stock issuances,
38
40
41
38
37
34
34
33
36
33
33
50
39
52
62
74
86
105
68
106
79
93
0
20
40
60
80
100
120
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Dividend
Buyback
%
Total Payout Average = 79%
Dividends = 35%
Buyback = 44%
NCF Acquisition
Impact
(1)
(2)
(1)
Includes the Accelerated Share Repurchase program announced in October 2006
(2)
Buyback amounts shown in chart are before any reduction from other capital stock issuances,
38
40
41
38
37
34
34
33
36
33
33
50
39
52
62
74
86
105
68
106
79
93
0
20
40
60
80
100
120
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Dividend
Buyback
%
Total Payout Average = 79%
Dividends = 35%
Buyback = 44%
NCF Acquisition
Impact
(1)
(2)

11
Initiative
Impact
Additional benefit from accelerating and
expanding E2 initiatives
-
2007
-
2008
-
2009
Total Share Repurchases
-
Sale of a portion of Coca-Cola holding      
used to repurchase shares
-
Additional shares repurchases
resulting from balance sheet
management initiatives
Full evaluation of Coca-Cola holdings in
the context of capital optimization and
evaluation and execution of additional
balance sheet management opportunities
Tangible Results Expected To Be Realized
$46M
$145M
$205M
~ $150M
$600M -
$850M
$750M -
$1.0B
TBD

12
•
Four Groups
–
Central
–
Florida
–
Mid-Atlantic
–
Carolinas
•
20 Regions
•
50+ Local Banking Markets
•
LOB’s design business and product strategies with direct feedback from the geographic partners
•
Geographic partners are led by regional leaders who have solid-line reporting relationships with the
local Retail, Commercial and Wealth and Investment Management heads.  They are empowered to
deliver services, products and pricing to local customers
•
Local credit decisioning and pricing (most commercial credit requests are priced and approved locally)
•
Local management is held accountable and their incentive compensation is earned based on the
success of the combined local LOB’s performance
•
Geographic partners have weekly sales meetings with LOB’s where specific cross LOB commitments
are made and the subsequent success tracked
•
SunTrust’s operating model is relationship-based and focused on delivering the whole institution to
customers on an integrated basis
Unique Operating Model
Lines of Business
Geographies
Drive Strategy, Initiatives, Installation and
Profitability
•
Five Business Lines
–
Retail
–
Commercial
–
Mortgage
–
Corporate and Investment Banking
–
Wealth and Investment Management
Drive Client Acquisition, Expansion,
Service, Retention and Profitability

13
High Growth Footprint
Top 5 rank in 18 of the 25 largest, high-growth markets in the Southeast
Top 5 rank in 19 of SunTrust’s 20 geographic regions
Source: SNL Financial
Projected Population Growth for SunTrust’s Top Markets
Note: Weighted average by deposits based on all of SunTrust’s MSAs
% of STI Deposits 
26.9%
12.2%
7.2%
5.3%
4.9%
Rank
#1
#3
#4
#1
#3
Market Share
29.1%
9.9%
5.8%
19.7%
12.8%
Branches
212
184
100
72
104
11.8
19.5
8.5
10.5
19.0
0.0
4.0
8.0
12.0
16.0
20.0
24.0
Atlanta
Washington
DC
Miami
Orlando
Tampa
US Average = 6.7%
SunTrust
Weighted
Average = 12.8
SunTrust
Weighted
Average = 12.8

14
Diversified and Balanced Business Mix
Revenue-FTE Contribution
Excludes Corporate/Other and Reconciling Items, as defined in 10-K.  Data is for the full
year 2006.
Line of Business
Retail
•
1,691 banking locations, 2,543 ATMs
•
Opened 66 new branches in 2006; continue to invest in
high opportunity markets
•
Provides financial solutions to 5M client households
•
Business Banking represents >20% of total revenue,
adding 75 new bankers in high opportunity markets
•
Serves companies, government and nonprofit entities
with annual sales or budgets of $5M-$250M
•
Commercial Banking market penetration = 23%
$32.9B commercial loans outstanding
on average   
1Q 2007
•
New loan production up 18%²
•
# of new relationships up 15%²
•
Investments in Capital Markets product capabilities,
capacity, intellectual capital and distribution
•
Debt Capital Markets revenue up 21%³
•
Generated 19% of SunTrust’s noninterest income in
2006
Commercial
Corporate
and
Investment
Banking
•
#1 market share in 6 of 20 regions
•
Production increased 28%²
•
Record applications of $24.5B, up 21%²
•
#1 ranking in JD Power for customer satisfaction
Mortgage
•
Total assets under advisement:  $244B¹
•
Trusco
Capital Management’s AUM > $72B
4
•
Private Wealth Management’s AUA > $40B¹
•
Closed 3 CLO transactions => $1.4B (net new assets)
Wealth
and
Investment
Management
1. As of 3/31/07
2. 1Q 2007 vs. 1Q 2006
3. 2006 vs. 2005
4. As of 12/31/2006
Retail
42.8%
Commercial
15.3%
Corporate and
Investment
Banking
11.3%
Wealth &
Investment
Management
18.3%
Mortgage
12.3%

15
Wealth
and
Investment
Management
•
Target wealth creating sectors via delivery of integrated solutions
•
Improve investment performance through new hires augmenting existing investment talent.  Acquire
high-quality sales & distribution talent
•
Broaden and enhance product and service suite
Attractive Growth Prospects
2007 Growth Drivers
Retail
•
Series of initiatives to drive core deposit and household growth, and cross-sells
•
Business Banking
–
Enhancing product set and adding business bankers to capture market share
–
Returns >3x the annual household profit of a consumer client
–
Highest average loan spread across all LOB’s and 2
nd
highest deposit spread
•
Consumer Lending
–
Enhancing lending suite with new products to increase sales
–
Expanding network
Commercial
•
Focus on under-penetrated markets
•
Capitalize on client relationships that offer the broadest opportunities for cross-sale of Capital Markets,
Treasury & Payment Solutions, Private Wealth Management and Institutional Investment Management
products; capture wallet share
Corporate
and
Investment
Banking
•
Expand the cross-selling of capital market products to SunTrust’s Corporate Banking, Commercial
Banking and Wealth & Investment Management client bases
Mortgage
•
Expand sales force -
drives increased production
•
Leverage bank market presence
–
$1.8B in production from referral business, up 38%
1
–
19% of SunTrust homeowners have a SunTrust mortgage, up 13% from
a year ago; if increased to
35% would represent ~$80B in mortgage loans
1. 1Q 2007 vs. 1Q 2006

16
0.21
0.19
0.19
0.39
0.23
0.18
0.59
0.41
0.64
0.69
0.36
0.30
0.49
0.60
0.27
0.29
0.00
0.30
0.60
0.90
2000
2001
2002
2003
2004
2005
2006
1Q07
Disciplined Approach to Credit Risk Management
Annualized Net Charge-Offs/Average Loans
1
Annualized Net Charge-Offs/Average Loans Consistently Better Than Peers
2
Peers
SunTrust
Source: SNL Financial, Public filings
1.
The numbers from SNL Financial include Loans Held for Sale.  SunTrust calculates Annualized NCO/Average Loans excluding Loans Held for Sale, that ratio was 0.21 for 1Q
2007.
2.
Includes BAC, BBT, CMA, FITB, FHN, KEY, MTB NCC, PNC, RF, USB, WB and WFC.  Peer numbers are medians.

17
Driving Shareholder Value
•
A unique operating model coupled with an ideal high-growth footprint
provides a powerful platform for growth
•
Diversified and balanced business mix with strong distribution capabilities
•
Disciplined approach to credit risk management
•
Expanded and accelerated E
2
Efficiency and Productivity initiatives
•
Focused on optimizing capital structure through continuation of balance
sheet management and capital restructuring opportunities as well
as a
strategic review of Coca-Cola stock holdings
•
Commitment to return earnings to shareholders, including a 20% dividend
increase and planned share repurchases of up to $1B in 2007
An Attractive Investment Opportunity

Driving Shareholder Value
James M. Wells III
President and Chief Executive Officer
Mark A. Chancy
Corporate Executive Vice President and Chief Financial Officer
UBS 2007 Global Financial Services Conference
May 15, 2007