8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) September 8, 2008

SunTrust Banks, Inc.

(Exact name of registrant as specified in its charter)

Georgia	001-08918	58-1575035
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

303 Peachtree St., N.E., Atlanta, Georgia	30308
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (404) 588-7711

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure.

SunTrust Banks, Inc. (the “Registrant”, “SunTrust”, or the “Company”) is scheduled to make a presentation at the Lehman Brothers Financial Services Conference in New York on Wednesday, September 10, 2008 at approximately 9:45 AM Eastern Time. Mark A. Chancy, Corporate Executive Vice President and Chief Financial Officer, will make SunTrust’s presentation. A copy of the slide package to be used by the Registrant at this conference is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein. Such slide package will also be available on the Registrant’s web site at www.suntrust.com. Information contained on the Registrant’s website expressly is not incorporated by reference into this Current Report on Form 8-K.

The information in the preceding paragraph, as well as Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that section. It may only be incorporated by reference into another filing under the Exchange Act or Securities Act of 1933 if such subsequent filing specifically references Section 7.01 of this Current Report on Form 8-K. All information in the slide package speaks as of the date thereof and the Registrant does not assume any obligation to update said information in the future. In addition, the Registrant disclaims any inference regarding the materiality of such information which otherwise may arise as a result of its furnishing such information under Item 7.01 of this report on Form 8-K.

Item 8.01 Other.

In addition to the slide presentation referenced above and furnished as an exhibit to this report, SunTrust is expected to comment on the following items during its presentation at the Lehman Brothers Financial Services Conference in New York on Wednesday, September 10, 2008:

Third Quarter Events

As previously disclosed, a tax benefit of $69 million will be reflected in the Company’s tax provision during the third quarter related to the charitable contribution of 3.6 million shares of common stock of The Coca-Cola Company.

On September 2, 2008, SunTrust sold its fuel card business, TransPlatinum, and a gain on sale will be recorded in the third quarter.

SunTrust is engaged in discussions with regulators concerning the underwriting and sale of certain auction rate securities (“ARS”) by SunTrust. If a settlement of these inquiries is reached, it may involve SunTrust repurchasing some ARS from certain customers. Based on the scope of the settlements that other financial institutions have reached with regulators and which are available in published reports, SunTrust has approximately $500 million par amount of ARS presently held by similar SunTrust investors. Depending on the actual settlement that SunTrust may agree to, this amount is subject to change. If SunTrust were to repurchase these securities, then market valuation losses would be incurred by SunTrust. SunTrust expects to reserve for amounts related to resolving these matters in the third quarter.

While any negative impact of ARS related charges in the quarter is not known with certainty at this time, management believes the positive impact on earnings from the TransPlatinum gain on sale and the tax benefit of the charitable contribution will offset the negative impact from ARS such that no material impact on third quarter results is expected.

Market Valuation

During July and August, securities markets and valuations have remained volatile. A moderate decline in the values of the portfolio of higher risk trading assets has occurred during the quarter. However, credit spreads on SunTrust issued debt carried at fair value have widened during the quarter as compared to the tightening experienced during the second quarter. Quarter-to-date, the declining value of the trading

securities has been more than offset by the increasing value of our debt such that a net gain has been recorded through August. Additionally, the higher risk trading asset position has been significantly reduced from $768 million at June 30 to approximately $420 million quarter-to-date. The Company expects market valuations to remain volatile during September and therefore the results through August could change materially during the final month of the quarter.

Capital and Dividends

As mentioned during the second quarter earnings call, the Company’s capital levels are believed to be sufficient based on our current view of the credit environment. However, the future is uncertain and the capital markets will be monitored for an opportunity to issue non-dilutive capital enhancing securities. Capacity to issue trust preferred securities and other Tier 1 eligible securities that are restricted core capital elements without reaching regulatory limits exceeds $500 million and, while not believed to be necessary at the present time, management believes raising additional capital in the current environment is prudent.

SunTrust currently has no plans to alter its dividend policy. The Company recognizes that the dividend represents an additional lever to build capital should circumstances change.

Credit Quality

Third quarter charge-offs are still expected to increase by 15%-20% over second quarter charge-offs. Observing credit trends during July and August, it is more likely that growth in charge-offs will approximate the high end of that range.

As for the fourth quarter, expectations continue to be that charge-offs will not be dramatically higher or lower than the third quarter. Additionally, the level of loan loss reserves is expected to increase, but at modest levels.

Important Cautionary Statement

The foregoing information should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2007 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.

The foregoing information may contain forward-looking statements. Statements that do not describe historical or current facts, including statements about beliefs and expectations and the effect of any ARS settlements, changes in third quarter charge-offs and changes in third quarter credit spreads, are forward-looking statements. These statements often include the words “may,” “could,” “will,” “should,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” “initiatives,” “potentially,” “probably,” “projects,” “outlook” or similar expressions. 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 intend 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 SunTrust’s results to differ materially from those described in the forward-looking statements can be found in the Company’s 2007 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: (1) weakness in the economy and in the real estate market, including specific weakness within our geographic footprint, has adversely

affected us and may continue to adversely affect us; (2) weakness in the real estate market, including the secondary residential mortgage loan markets, has adversely affected us and may continue to adversely affect us; (3) as a financial services company, adverse changes in general business or economic conditions could have a material adverse effect on our financial condition and results of operations (4) changes in market interest rates or capital markets could adversely affect our revenues and expenses, the value of assets and obligations, costs of capital, or liquidity; (5) the fiscal and monetary policies of the federal government and its agencies could have a material adverse effect on our earnings; (6) we may be required to repurchase mortgage loans or indemnify mortgage loan purchasers as a result of breaches of representations and warranties, borrower fraud, or certain borrower defaults, which could harm our liquidity, results of operations and financial condition; (7) clients could pursue alternatives to bank deposits, causing us to lose a relatively inexpensive source of funding; (8) consumers may decide not to use banks to complete their financial transactions, which could affect net income; (9) we have businesses other than banking, which subjects us to a variety of risks; (10) hurricanes and other natural disasters may adversely affect loan portfolios and operations and increase the cost of doing business; (11) negative public opinion could damage our reputation and adversely impact our business; (12) we rely on other companies for key components of our business infrastructure; (13) we rely on our systems, employees and certain counterparties, and certain failures could materially adversely affect our operations; (14) we depend on the accuracy and completeness of information about clients and counterparties; (15) regulation by federal and state agencies could adversely affect our business, revenues, and profit margins; (16) competition in the financial services industry is intense and could result in losing business or reducing profit margins; (17) future legislation could harm our competitive position; (18) maintaining or increasing market share depends on market acceptance and regulatory approval of new products and services; (19) our ability to receive dividends from our subsidiaries accounts for most of our revenues and could affect our liquidity and ability to pay dividends; (20) significant legal actions could subject us to substantial uninsured liabilities; (21) recently declining values of residential real estate may increase our credit losses, which would negatively affect our financial results; (22) deteriorating credit quality, particularly in real estate loans, has adversely impacted us and may continue to adversely impact us; (23) disruptions in our ability to access global capital markets may negatively affect our capital resources and liquidity; (24) 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; (25) we depend on the expertise of key personnel without whom our operations may suffer; (26) 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 strategy; (27) 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; (28) changes in our accounting policies or in accounting standards could materially affect how we report our financial results and condition; (29) our stock price can be volatile; (30) our disclosure controls and procedures may fail to prevent or detect all errors or acts of fraud; (31) our financial instruments carried at fair value expose the Company to certain market risks; (32) our revenues derived from our investment securities may be volatile and subject to a variety of risks; (33) we may enter into transactions with off-balance sheet entities affiliated with SunTrust or its subsidiaries which may cause us to recognize current or future losses and (34) we are subject to market risk associated with our asset management and commercial paper conduit businesses.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1 Slide package to be presented on September 10, 2008 (furnished with the Commission as a part of this Current Report on Form 8-K).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	SUNTRUST BANKS, INC. (Registrant)
Date: September 8, 2008.	By:	/s/ David A. Wisniewski
		David A. Wisniewski, Associate General Counsel and Group Vice President

EX-99.1

Lehman Brothers 2008 Financial Services Conference

September 10, 2008

Mark A. Chancy

Chief Financial Officer

Exhibit 99.1

The following should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2007 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.

The

reconciliation

of

those

measures

to

GAAP

measures

are

provided

in

the

appendix to this presentation.

In this presentation, net interest income and net interest margin are presented on a fully taxable-equivalent (“FTE”) basis, and ratios are presented on an

annualized

basis.

The

FTE

basis

adjusts

for

the

tax-favored

status

of

income

from

certain

loans

and

investments.

The

Company

believes

this

measure

to

be

the

preferred

industry

measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts.

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

and

the

effect

of

our

planned

transactions

involving

our

holdings

of

stock

in

The

Coca-Cola

Company,

are

forward-looking

statements.

These

statements

often

include

the

words “may,”

“could,”

“will,”

“should,”

“believes,”

“expects,”

“anticipates,”

“estimates,”

“intends,”

“plans,”

“targets,”

“initiatives,”

“potentially,”

“probably,”

“projects,”

“outlook”

or similar

expressions.

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 intend 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

SunTrust’s

results

to

differ

materially

from

those

described

in

the

forward-looking

statements

can be found in the Company's 2007 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:

(1)

adverse

changes

in

general

business or economic conditions could have a material adverse effect on our financial condition and results of operations; (2) changes in market interest rates or capital markets could

adversely affect our revenues and expenses, the value of assets and obligations, costs of capital, or liquidity; (3) the fiscal and monetary policies of the federal government and its

agencies could have a material adverse effect on our earnings; (4) changes in securities markets or markets for commercial or residential real estate could harm our revenues and

profitability; (5) customers could pursue alternatives to bank deposits, causing us to lose a relatively inexpensive source of funding; (6) customers may decide not to use banks to

complete their financial transactions, which could affect net income; (7) we have businesses other than banking, which subjects us to a variety of risks; (8) hurricanes and other natural

disasters may adversely affect loan portfolios and operations and increase the cost of doing business; (9) negative public opinion could damage our reputation and adversely impact our

business; (10) we rely on other companies for key components of our business infrastructure; (11) we rely on our systems, employees and certain counterparties, and certain failures

could

materially

adversely

affect

our

operations;

(12)

we

depend

on

the

accuracy

and

completeness

of

information

about

clients

and

counterparties;

(13)

regulation

by

federal

and

state

agencies could adversely affect our business, revenues, and profit margins; (14) competition in the financial services industry is intense and could result in losing business or reducing

profit

margins;

(15)

future

legislation

could

harm

our

competitive

position;

(16)

maintaining

or

increasing

market

share

depends

on

market

acceptance

and

regulatory

approval

of

new

products and services; (17) our ability to receive dividends from our subsidiaries accounts for most of our revenues and could affect our liquidity and ability to pay dividends; (18)

significant legal actions could subject us to substantial uninsured liabilities; (19) 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; (20) we depend on the expertise of key personnel without whom our operations may suffer; (21) 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; (22) 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; (23) changes in our accounting policies or in accounting standards could materially affect how we report our financial

results and condition; (24) our stock price can be volatile; (25) our disclosure controls and procedures may fail to prevent or detect all errors or acts of fraud; (26) our trading assets and

financial instruments carried at fair value expose the Company to certain market risks; (27) weakness in residential property values and mortgage loan markets could adversely affect us;

(28) we may be required to repurchase mortgage loans or indemnify mortgage loan purchasers as a result of breaches of representations and warranties, borrower fraud, or certain

borrower defaults, which could harm our liquidity, results of operations and financial condition; and (29) we may enter into transactions with off-balance sheet entities affiliated with

SunTrust or its subsidiaries which may cause us to recognize current or future losses.

2

Investment Thesis

Diversified Franchise

•

Meaningful consumer and commercial

platforms

•

Attractive, diverse geographic profile

•

Strong market share in core markets

•

Significant fee-oriented activities

complement spread-based business

•

Strengthened capital ratios through

resolution of Coke holdings

•

Attractive, long-term dividend growth

•

Diversified sources of funding; large,

stable deposit base is primary source of

liquidity

•

Diversified credit profile

•

Aggressively managing risk positions

Solid Capital Structure and

Balance Sheet

Downside

Protection

Upside

Potential

Optimizing Results                         

with Strategic Initiatives

•

Ahead of plan on E

2

program

•

Generating momentum with revenue

initiatives

•

Continue to optimize balance sheet and

business mix

3

Diversified Franchise

4

Diversified Franchise

-

SunTrust footprint

-

1,699 branches

-

2,506 ATMs

-

~800 Relationship

Managers 

Retail

&

Commercial

Wholesale

Mortgage

Wealth &

Investment

Management

1.  Inside Mortgage Finance ranking

Meaningful Consumer and Commercial Platforms

Scope       

of

Operations

Market

Focus

-

Retail clients in

SunTrust footprint

-

Business clients in

SunTrust footprint

with revenues

<$100MM

-

Government and

not-for-profit

enterprises

-

Nationwide

-

Ranked #10 in total

originations in 2007

1

-

Mortgage servicing

portfolio = $158.8B

-

Prime based platform,

~98% of 2Q08

originations for sale

were agency

-

51% of 2Q08

production was retail

originated

-

National

-

~200 Relationship

Managers

-

Full line of

investment banking

products and

services

-

National

-

Full array of wealth

management

products and

professional

services

-

AUM = $136.7B

-

Middle Market:               

$100MM-$750MM

-

Corporate Banking:

>$750MM

-

Commercial RE:

commercial and

residential developers &

investors

-

Investment banking

sales to commercial and

W&IM clients

-

Institutions

-

Individuals in need

of private wealth

management

services

-

Ultra high net worth

individuals

5

Other

6%

Florida

29%

North

Carolina

7%

Tennessee

9%

Virginia

13%

Georgia

30%

Maryland

6%

Diversified Franchise

1,685 Branches

2

Other

7%

Florida

31%

North Carolina

11%

Tennessee

10%

Virginia

14%

Georgia

19%

Maryland

8%

$123 Billion in Deposits

3

Attractive, Diverse Geographic Profile

1.

Deposit and share data from SNL.  Deposits as of June 30, 2007 with acquisition of GB&T in 2008 included.  Demographic information from Claritas.

2.

As of June 30, 2007, from SNL

3.

Deposit balances as of June 2007 from Company financial statements.  State breakdown from SNL as of June 2007

SunTrust Footprint

1

-

7.5%

projected

5

year

population

growth

vs.

4.6%

U.S.

average

-

Projected household income growth is above the U.S. average

-

Ranked top 3 in 18 of top 25 markets, representing 86% of total

MSA deposits and average deposit market share of 18%

6

Diversified Franchise

Top Deposit Markets

% of STI Deposits

26.2%

12.5%

7.3%

5.1%

5.0%

Rank

#1

#3

#5

#1

#3

Market Share

26.8%

13.3%

5.7%

18.8%

13.3%

Branches

216

181

102

73

106

Sources:

Deposit and Share data from SNL.  Deposits as of June 30, 2007 with acquisition of GB&T in 2008 included.

Strong Market Share in Core Markets

Atlanta

DC

Miami

Orlando

Tampa

7

Wealth &

Investment

Mangement

20%

Retail &

Commercial

51%

Mortgage

13%

Wholesale

16%

Diversified Franchise

Fee

Income

46%

Net

Interest

Income

(FTE)

54%

Total

Revenue

FTE

1

Rising

Contribution

of

Fee

Income

2

Fee

Income

32%

Net

Interest

Income

(FTE)

68%

1997

2008

YTD

3

1.  Excludes Corporate/Other and Reconciling Items, as defined in the Company’s 10-K filing

2.

Excludes Securities Gains/Losses

3.

Year to date as of June 30, 2008

Significant Fee-Oriented Activities Complement Spread-Based Business

Significant Fee-Oriented Activities Complement Spread-Based Business

2008

YTD

3

8

Solid Capital and Balance Sheet

9

Solid Capital and Balance Sheet

Proactively Reducing Risk Profile and Improving Capital Position

4Q07

2Q07

1Q07

3Q07

Delevered balance sheet

by over $9B in

conjunction with early

adoption of SFAS

157/159

Reduced securitization

exposure (CLO, SBA,

CDO and RMBS)

to $142MM from

$1B at 3Q07

Sold 9% of Coke

holdings; announced

review of remaining

Coke position

1Q08

54% ($1.9B) reduction in

higher risk trading assets

2Q08

3Q08

Sold 10MM

shares of Coke

and improved

Tier 1 ratio           

20 bps

Additional 53%

reduction in higher risk

trading assets leaves

$768MM

30MM Coke share

Tier 1 transaction

complete

3.6MM Coke

share

charitable

contribution

10

2Q

Complete

10 Million

Share Sale

30 Million

Share Tier 1

Transaction

3.6 Million

Share

Charitable

Foundation

Contribution

Resolution of Coke Holdings

Action

Timing                  Results

Rationale                         Implications

3Q (July)  

Complete       

3Q (July)  

Complete       

•

$549 million proceeds

•

After-tax gain = $345 million

•

Tier 1 capital = 20 bps

•

2Q EPS impact = $0.99

•

Maximize current capital

contribution for this portion of

the shares

•

Forgone dividend income of

$0.04 in annual EPS

•

$183 million gain and equal

offsetting expense

•

Tax benefit of $69 million =

$0.20 EPS impact

•

4 bps Tier 1 addition

•

Maximize tax benefit

•

Long-term community

support

•

Lower future annual

charitable contribution

expense

•

Forgone dividend income of

$0.01 in annual EPS

•

Ongoing $10 million expense

reduction

•

$1,160 million in cash proceeds

and $728 million Tier 1 capital

•

43 bps Tier 1 addition

•

Maximize shareholder value

via tax deferral, retained

dividend, and price

appreciation potential

•

Retain dividend income of

$0.12 annual EPS

•

Collar on KO stock provides

upside to ~$66 and downside

to ~$39

Solid Capital and Balance Sheet

11

2Q 2008

2Q 2008

1Q 2008 

Proforma

1

Actual

Actual         

Tier 1 Capital Ratio

7.94%

7.47%

7.23%

Total Capital Ratio

10.96%

10.85%

10.97%

Total Avg. Equity to Total Avg. Assets

10.29%    

10.31%

10.21%

Tangible Equity to Tangible Assets        

6.21%     

6.24%

6.53%

•

Solid capital foundation enhanced with Coke-related transactions

•

Given current level of economic uncertainty, maintaining Tier 1 in excess of our stated

goal of 7.50% is appropriate

1.

Proforma

ratios

include

estimated

impact

to

June

2008

capital

ratios

of

additional

capital

generated

from

transactions

completed

in

July

2008.  Estimated Tier 1 capital of $12.5 billion + 3Q 2008 incremental transaction-related capital of $797 million   

Strengthened Capital Ratios

Solid Capital and Balance Sheet

12

$0.83

$0.93

$1.00

$1.38

$1.48

$1.72

$1.80

$2.00

$2.20

$2.44

$2.92

$3.08

$1.60

Attractive, Long-Term Dividend Growth

Solid Capital and Balance Sheet

13

Funding Profile

$174B

$170B

June 30, 2008

Core Deposits, 60%

Other Deposits, 10%

Short-Term  Borrowings¹, 6%

Long-Term  Borrowings, 13%

Capital, 11%

June 30, 2006

Core Deposits, 57%

Other Deposits, 15%

Short-Term  Borrowings¹, 8%

Long-Term  Borrowings, 10%

Capital, 10%

Diversified Sources of Funding; Large, Stable Deposit Base Primary Source of Liquidity

1. Includes Fed Funds, Repos, and other short-term borrowings

Solid Capital and Balance Sheet

14

Residential

Mortgages

26%

Consumer

10%

Construction

10%

Home Equity

Lines

12%

Commercial

31%

Commercial

Real Estate

11%

Credit Perspective

Nonaccrual Loans 6/30/08

2Q 2008 Net Charge-Offs

Loan Portfolio 6/30/08

Diversified Credit Profile and Strong Credit Culture

Residential

Mortgages

39%

Consumer

10%

Construction

11%

Home Equity

Lines

28%

Commercial

12%

Residential

Mortgages

52%

Consumer

1%

Construction

29%

Home Equity

Lines

8%

Commercial

5%

Commercial

Real Estate

5%

15

Credit Perspective

($ in millions)

Asset Quality Continued to Weaken, Although at a Slower Pace

2Q 2008

Provision

Net Charge-Offs

Net Charge-Off Ratio

Net ALLL Increase

Allowance to Loan Ratio

Nonperforming Loan Ratio

30 –

89 Days Past Due

$448.0

$322.6

1.04%

$284.1

1.46%

2.22%

1.48%

1Q 2008

$560.0

$297.2

0.97%

$262.8

1.25%

1.67%

1.52%

1Q 2008

$(112.0)

$25.4

7 bps

$21.3

21 bps

55 bps

(4) bps

4Q 2007

$356.8

$168.0

0.55%

$188.8

1.05%

1.19%

1.53%

2Q 2008       

vs.

4Q 2007

$203.2

$129.2

42 bps

$74.0

20 bps

48 bps

(1) bps

1Q 2008       

vs.

16

Balance

% of

C/O Ratio

1

C/O Ratio

1

30-89 DLQ%

30-89 DLQ%

($ millions)

06/30/2008

Portfolio

2Q08

1Q08

2Q08

1Q08

Commercial

$38,801

31%

0.42%

0.35%

0.36%

0.37%

Commercial Real Estate

13,694

11%

0.02%

0.00%

0.91%

0.55%

Consumer

12,552

10%

1.05%

1.22%

2.82%

2.52%

Real Estate: Home-Equity Lines

15,727

12%

2.40%

2.65%

1.19%

1.25%

Real Estate: 1-4 Family

32,509

26%

1.49%

1.29%

1.90%

1.74%

Real Estate: Construction

12,543

10%

1.16%

0.72%

3.52%

4.59%

Total

$125,825

100%

1.04%

0.97%

1.48%

1.52%

Credit Perspective

Commercial and Consumer Portfolios = 52% of Loans and are Performing Well Overall

1.

Annualized

17

The Subset of Portfolios That Are Under Stress Comprise 13% of the Total Loan

Book and We Have Taken Aggressive Actions to Mitigate Risk

Credit Perspective

•

Tightened underwriting on Lot loans

•

Eliminated Alt-A lending

•

Significantly increased reserves

•

Eliminated >90% LTV production

from all channels

•

Added restrictions on LTVs, DTI, and FICO

•

Closed or reduced lines to high risk

accounts

(3

party

originated,

high

CLTV,

high risk markets)

•

Identified less well positioned builders

and engaged in risk mitigation

•

Added controls, tightened underwriting, and

implemented special guidelines for certain

markets

•

Focused effort to reduce residential

construction has reduced outstandings by

$2.3B during past year

•

More than 60% of residential builder balance

reduction has occurred in Florida and Atlanta

portfolios

9.3%

198

na

na

1.7%

2,140

Residential A&D

10.6%

60

na

na

0.4%

565

Residential Land

Nonaccrual Loans

Original  Current

% of Total

6/30/08

na

na

na

735

736

732

634

670

729

FICO

1.2%

$1,323

86.7%

$109,100

Remaining Portfolio

7. 8%

1,302

13.3%

16,725

Stressed Total

17.5%

69

na

0.3%

395

GB&T

8.9%

219

na

2.0%

2,456

Residential       

Construction

2.2%

26

86%

0.9%

1,160

FL 81-90% CLTV

1.6%

40

95%

2.0%

2,553

CLTV > 90%

3.4%

65

86%

1.5%

1,918

3rd Party Originated

Home Equity Lines

12.7%

58

97%

0.4%

458

Alt-A 2

nd

20.6%

206

77%

0.8%

1,002

Alt-A 1

st

10.3%

$157

84%

1.2%

$1,520

Lot Loans

2.0%

Portfolio

8.0%

204

na

2,558

Construction Perm

Construction

Residential Mortgages

% of Bal

Balance

CLTV

Balance

($ in millions)

Actions

rd

18

Optimizing Results with Strategic Initiatives

19

Optimizing Results with Strategic Initiatives

$325

1

$215

(Actual)

$530

1

Total

Initial Goals

First Revision

of Goals

Second Revision

of Goals

2007 Actual/Goal

2008 Goal

2009 Goal

$205

$135

2007 expense savings

of

$215 million was

119% of goal

Goals increased twice

since program inception

2009 gross expense

savings represent 11%

of 2006 expense base

2

E

2

Program Goals Increased Twice

1.

Gross cost savings goals include approximately $50 million of interest expense savings related to reduced financing costs from disposition

of

corporate

real

estate,

which

will

be

fully

realized

beginning

in

2Q

2008

2.

Does

not

include

initial

costs,

non-recurring

expense

reductions,

and

non-recurring

gains

associated

with

E²

implementation

($ in millions)

$600

1

Total

$350

$500

$215

(Actual)

20

Optimizing Results with Strategic Initiatives

($ in millions)

2Q 2008 Savings

2008 Run-Rate Savings

2008 Goal

Ahead of 2008 Goal

$500 2008 Goal

$248 YTD Savings

500

400

300

200

100

Ahead of Plan on E

2

Program

$135

$518

$500

$18

21

Optimizing Results with Strategic Initiatives

Investing For Growth

E

2

Expense Savings

•

Previously announced elimination of

approximately 2,400 primarily non-customer

contact employee positions, or 7% of the

workforce by year end 2008, including 1,600

completed in 2007

•

Compressed and shed excess office space by

approximately 25%; sold over $1 billion of

branch and office space

•

Reduced approximately 10% of all supplier

expenses through contract renegotiations,

contract consolidations, and demand

management

•

Completed projects that save money and

“ease doing business with SunTrust”, including

implementation of a new credit support

structure that streamlines routine decision

process from one week to under three days

•

Continue to invest in high growth markets with

approximately 40 new branches in 2008

•

Increase advertising and marketing

expenditures to drive client and deposit

acquisition

•

Implement new technology to improve retail

sales and service platforms

•

Invest in the development of Treasury &

Payment Solutions products

Ongoing Effort to Generate Expense Savings and Invest for Growth

22

Optimizing Results with Strategic Initiatives

Retail &

Commercial

•

Recently launched initiative to drive increased checking account

cross-sales by tying electronic mortgage

payment drafting to the new account

•

In the current environment, balancing production margins vs. market share goals to optimize revenue

•

Significantly growing FHA volume, with more than a 400% increase

in the second quarter versus the

same quarter in 2007

Mortgage

•

Focus on increasing cross-sales of capital markets products has resulted in significant revenue growth;

revenue is up 15% over the first half of 2007

•

Successful execution of integrated corporate banking has improved revenue growth; new business

revenue is up 21% over the first half of 2007 

Wholesale

•

Recently licensed over 1,500 branch personnel to sell investment

products; thus far, this has driven a

7% increase in overall retail investment income over the first half of 2007, in addition to a 22% increase

in annuity revenue

•

Centralization of trust account administration and risk management has enabled our client facing

associates to more intensely focus on sales growth and retention

Wealth &

Investment

Management

Generating Momentum with Revenue Initiatives

•

Recent deposit initiatives contributed to an 85% increase in production and a 6% increase overall in

new personal and business checking households in the first half of 2008 as compared to the same

period in 2007

•

Investments made to drive treasury and payment product growth are beginning to produce results;

sales of these products improved 31% in 2Q 2008 over 1Q 2008

23

Optimizing Results with Strategic Initiatives

•

GB&T Bancshares, Inc.

•

Inlign Wealth Management, LLC

•

Alpha Asset Management

•

TBK Investments, Inc.

Investing in Core Businesses

Selectively Divesting

•

First Mercantile Trust Co.

•

Corporate Trust Business

•

Stock Transfer Business

•

Lighthouse (Fund of Funds Manager)

•

TransPlatinum

Continue to Optimize Balance Sheet and Business Mix

Business Mix

Balance Sheet

Increase

Decrease

•

Commercial Lending

•

Deposits (Improved Mix)

•

Fee Income Businesses

•

Indirect Lending

•

Construction Lending

•

Brokered and Foreign Deposits

24

Investment Thesis

Diversified Franchise

•

Meaningful consumer and commercial

platforms

•

Attractive, diverse geographic profile

•

Strong market share in core markets

•

Significant fee-oriented activities

complement spread-based business

•

Strengthened capital ratios through

resolution of Coke holdings

•

Attractive, long-term dividend growth

•

Diversified sources of funding; large,

stable deposit base is primary source of

liquidity

•

Diversified credit profile

•

Aggressively managing risk positions

Solid Capital Structure and

Balance Sheet

Downside

Protection

Upside

Potential

Optimizing Results                         

with Strategic Initiatives

•

Ahead of plan on E

2

program

•

Generating momentum with revenue

initiatives

•

Continue to optimize balance sheet and

business mix

Optimizing Results

with Strategic Initiatives

Lehman Brothers 2008 Financial Services Conference

September 10, 2008

Mark A. Chancy

Chief Financial Officer

26

Appendix

27

Non GAAP Reconcilement

($ in millions)

June 30,

2008

Total Shareholders' Equity

$17,907.1

Goodwill

(7,056.0)

Other Intangible Assets including MSRs

(1,442.1)

MSRs

1,193.5

Tangible Equity

$10,602.5

Total Assets

$177,232.7

Goodwill

(7,056.0)

Other Intangible Assets including MSRs

(1,442.1)

MSRs

1,193.5

Tangible Assets

$169,928.1

Tangible Equity to Tangible Assets

6.24%