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)   March 9, 2011

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 2011 Citigroup Financial Services Conference in New York City on Wednesday, March 9, 2010, at 11:15 a.m. (EST). William H. Rogers, Jr., President and Chief Operating Officer, will make SunTrust's presentation. A copy of the slide package to be used at these conferences 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 Company’s web site at www.suntrust.com. Information contained on the Company’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 Events.

The Registrant makes the following statements regarding the first quarter of 2011 in the slide package for the above-referenced presentation:

(1) it expects modest net interest margin expansion, due to lower deposit costs and efforts to enhance loan spreads;

(2) it expects average loans and deposits to be relatively stable compared to the prior quarter;

(3) it expects an approximate low double digit percentage decline in core fees compared to the prior quarter due to market sensitive revenue, including (a) investment banking fees down from a record in the fourth quarter of 2010, in part due to the first quarter being seasonally lower, and (b) mortgage production declining primarily due to the impact of rising rates on origination volumes;

(4) first quarter 2011 quarter-to-date securities portfolio repositioning has generated gains similar to recent quarters;

(5) it expects noninterest expense to decline compared to the prior quarter despite a first quarter 2011 seasonal uptick in employee benefits costs;

(6) it expects net charge-offs to be stable to modestly down compared to the prior quarter; and

(7) it expects an ALLL reduction to be similar to that in the prior quarter, subject to normal quarter-end evaluation.

The expectations described above are preliminary in nature and are based upon currently available information, and the line items described can be highly volatile. Accordingly, no assurance can be given that any of the foregoing items of the Registrant's financial results for the completed quarter will be consistent with the trends or expectations described above.

Important Cautionary Statement About Forward-Looking Statements

Each of the foregoing statements is a forward-looking statement. Forward-looking statements are based upon the current beliefs and expectations of management and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements 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 Item 1A of Part I of our 10-K and in other periodic reports that we file with the SEC. Those factors include: difficult market conditions have adversely affected our industry; concerns over market volatility continue; recently enacted legislation, legislation enacted in the future, and certain proposed federal programs subject us to increased regulation and may adversely affect us; we have not yet received permission to

repay TARP funds; the Dodd-Frank Act makes fundamental changes to the regulation of the financial services industry, some of which may adversely affect our business; SunTrust Bank may be subject to higher deposit insurance assessments; we are subject to capital adequacy and liquidity guidelines and, if we fail to meet these guidelines, our financial condition would be adversely affected; emergency measures designed to stabilize the U.S. banking system are beginning to wind down; we are subject to credit risk; our ALLL may not be adequate to cover our eventual losses; we will realize future losses if the proceeds we receive upon liquidation of nonperforming assets are less than the carrying value of such assets; 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; weakness in the real estate market, including the secondary residential mortgage loan markets, has adversely affected us and may continue to adversely affect us; we are subject to certain risks from originating, selling, and holding mortgages, including the risk that 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; we are subject to risks related to delays in the foreclosure process; we may continue to suffer increased losses in our loan portfolio despite enhancement of our underwriting policies; 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; changes in market interest rates or capital markets could adversely affect our revenue and expense, the value of assets and obligations, and the availability and cost 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; depressed market values for our stock may require us to write down goodwill; clients could pursue alternatives to bank deposits, causing us to lose a relatively inexpensive source of funding; consumers 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; hurricanes and other natural or man-made 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 business and revenues; the soundness of other financial institutions could adversely affect us; we rely on other companies to provide key components of our business infrastructure; we rely on our systems, employees, and certain counterparties, and certain failures could materially adversely affect our operations; we depend on the accuracy and completeness of information about clients and counterparties; regulation by federal and state agencies could adversely affect the business, revenue, and profit margins; competition in the financial services industry is intense and could result in losing business or margin declines; maintaining or increasing market share depends on market acceptance and regulatory approval of new products and services; we may not pay dividends on your common stock; our ability to receive dividends from our subsidiaries could affect our liquidity and ability to pay dividends; disruptions in our ability to access global capital markets may negatively affect our capital resources and liquidity; any reduction in our credit rating could increase the cost of our funding from the capital markets; we have in the past and may in the future pursue acquisitions, which could affect costs and from which we may not be able to realize anticipated benefits; we are subject to certain litigation, and our expenses related to this litigation may adversely affect our results; 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 strategy; our accounting policies and processes are critical to how we report our financial condition and results of operations, and require management to make estimates about matters that are uncertain; changes in our accounting policies or in accounting standards could materially affect how we report our financial results and condition; our stock price can be volatile; our disclosure controls and procedures may not prevent or detect all errors or acts of fraud; our financial instruments carried at fair value expose us to certain market risks; our revenues derived from our investment securities may be volatile and subject to a variety of risks; and we may enter into transactions with off-balance sheet affiliates or our subsidiaries.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1 Slide package to be presented on March 9, 2011 (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: March 9, 2011.	By:	/s/ David A. Wisniewski
		David A. Wisniewski,
		Associate General Counsel and Group Vice President

EX-99.1

SunTrust Banks, Inc.

Citigroup Financial Services Conference

March 9, 2011

William H. Rogers, Jr.

President and Chief Operating Officer

Exhibit 99.1

1

Important Cautionary Statement About Forward-Looking Statements

The following should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2010 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 reconciliations of those measures to GAAP measures are provided within or in the appendix of 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.

This

presentation

contains

forward-looking

statements.

Statements

regarding

our

expectations

about

first

quarter

2011

levels

of

loan

balances,

deposits,

net

interest

margin

expansion,

noninterest

income

(including

investment

banking

income

and

mortgage

production

income,

and

securities

gains),

noninterest

expense,

net

charge-offs,

ALLL,

and

NPLs

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,”

“goals, ”

“targets,”

“initiatives, ”

“potentially,”

“probably, ”

“projects,”

“outlook ”

or

similar

expressions

or

future

conditional

verbs

such

as

“may,”

“will,”

“should, ”

“would,”

and

“could. ”

Forward-looking

statements

are

based

upon

the

current

beliefs

and

expectations

of

management

and

on

information

currently

available

to

management.

Our

statements

speak

as

of

the

date

hereof,

and

we

do

not

assume

any

obligation

to

update

these

statements

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 Item 1A of Part I of our 10-K and in other periodic reports that we file with the SEC.

Those factors include: difficult market conditions have adversely affected our industry; concerns over market volatility continue; recently enacted legislation, legislation enacted in the future, and certain proposed federal programs

subject us to increased regulation and may adversely affect us; we have not yet received permission to repay TARP funds; the Dodd-Frank Act makes fundamental changes to the regulation of the financial services industry, some of which

may adversely affect our business; SunTrust Bank may be subject to higher deposit insurance assessments; we are subject to capital adequacy and liquidity guidelines and, if we fail to meet these guidelines, our financial condition would

be adversely affected; emergency measures designed to stabilize the U.S. banking system are beginning to wind down; we are subject to credit risk; our ALLL may not be adequate to cover our eventual losses; we will realize future losses

if

the

proceeds

we

receive

upon

liquidation

of

nonperforming

assets

are

less

than

the

carrying

value

of

such

assets;

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; weakness in the real estate market, including the secondary residential mortgage loan markets, has adversely affected us and may continue to adversely affect us; we are

subject to certain risks from originating, selling, and holding mortgages, including the risk that 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; we are subject to risks related to delays in the foreclosure process; we may continue to suffer

increased losses in our loan portfolio despite enhancement of our underwriting policies; 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; changes in market interest rates or capital markets could adversely affect our revenue and expense, the value of assets and obligations, and the availability and cost 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; depressed market values for our stock may require us to write down goodwill; clients could pursue alternatives to bank

deposits,

causing

us

to

lose

a

relatively

inexpensive

source

of

funding;

consumers

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; hurricanes and other natural or man-made 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 business and revenues; the soundness of other financial institutions could adversely affect us; we rely on other companies to provide key components of our business infrastructure; we rely on our systems, employees, and certain

counterparties,

and

certain

failures

could

materially

adversely

affect

our

operations;

we

depend

on

the

accuracy

and

completeness

of

information

about

clients

and

counterparties;

regulation

by

federal

and

state

agencies

could

adversely

affect

the

business,

revenue,

and

profit

margins;

competition

in

the

financial

services

industry

is

intense

and

could

result

in

losing

business

or

margin

declines;

maintaining

or

increasing

market

share

depends

on

market

acceptance

and

regulatory

approval

of

new

products

and

services;

we

may

not

pay

dividends

on

your

common

stock;

our

ability

to

receive

dividends

from

our

subsidiaries

could

affect

our

liquidity

and

ability

to

pay

dividends;

disruptions

in

our

ability

to

access

global

capital

markets

may

negatively

affect

our

capital

resources

and

liquidity;

any

reduction

in

our

credit

rating

could

increase

the

cost

of

our

funding

from

the

capital

markets;

we

have

in

the

past

and

may

in

the

future

pursue

acquisitions, which could affect costs and from which we may not

be able to realize anticipated benefits; we are subject to certain litigation, and our expenses related to this litigation may adversely affect our results; 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 strategy; our accounting policies and processes are critical to how we

report our financial condition and results of operations, and require management to make estimates about matters that are uncertain; changes in our accounting policies or in accounting standards could materially affect how we report

our financial results and condition; our stock price can be volatile; our disclosure controls and procedures may not prevent or detect all errors or acts of fraud; our financial instruments carried at fair value expose us to certain market

risks; our revenues derived from our investment securities may be volatile and subject to a variety of risks; and we may enter into transactions with off-balance sheet affiliates or our subsidiaries.

2

SunTrust has an attractive footprint

and a diverse business mix

SunTrust has an attractive footprint

and a diverse business mix

3

0.7%

1.1%

2.0%

2.2%

2.9%

3.3%

3.7%

4.0%

4.7%

5.6%

5.7%

6.1%

MTB

PNC

CMA

KEY

FITB

MI

COF

USB

RF

BBT

WFC

STI

Projected Population Growth ²

1.

Source: SNL Financial, as of 6/30/2010 based on MSAs.

2.

Source: SNL Financial---five-year population growth, 2010-2015, MSA + counties not in any MSA, at 3/1/2011.

3.

Source: SNL Financial, as of 12/31/10.  Based upon traditional bank holding companies headquartered in the United States.

Branch Network

A Leading Bank with an Attractive Footprint

U.S. Average:

3.9%

Franchise Overview

Selected Statistics and (U.S. Rank) ³

Assets

$172.9B

(8

th

)

Deposits

$123.0B

(8

th

)

Branches

1,668

(8

th

)

ATMs

2,918

(7

th

)

SunTrust has a top 3 deposit market share in 21 of its top 25 MSAs¹

•

Top 25 represents 85% of total MSA deposits

•

Top 25 average deposit market share is 14%

4

Well-diversified Business Mix

2010

Revenue

-

$8.7B

Retail Banking

Extensive network of traditional and in-store branches.  Deposit,

lending, and card products offered to consumers and small businesses

Diversified Commercial Banking

Full line of lending, capital markets, financial risk management,

commercial card, and treasury and payment solutions

Corporate and Investment Banking

Complete offering of investment banking and traditional banking

services.  National practice with industry sector focus

Mortgage

Prime-based, national platform for residential mortgages.  Top 10 U.S.

originator and servicer ¹

Wealth & Investment Management

Provider of wealth and investment management products and services

to individual and institutional accounts.  $195B AUA ²

Corporate Treasury & Other

$27B high quality securities portfolio ²

Commercial Real Estate

Broad range of financial solutions to CRE developers and investors

Diversified Business Mix

42%

15%

12%

11%

10%

7%

3%

1.

Source:  Inside Mortgage Finance.

2.

As of December 31, 2010.

5

39%

5%

3%

4%

21%

14%

4%

8%

2%

Commercial & Industrial

Commercial Real Estate

Construction

Resi. Mtg. -

Guaranteed

Resi. Mtg. -

Nonguaranteed

Home Equity

Student Loans -

Guaranteed

Indirect Consumer

Other Consumer

2

Distribution by Geography ¹

Distribution by Loan Category

25%

26%

31%

18%

Central

Florida

Mid-Atlantic

Other

3

Diversified Loan Portfolio

Loan Portfolio is Well-diversified by Geography and Product Type

Total Portfolio as of 12/31/10:  $116.0 billion

1.

Central region includes AL, AR, GA, MS, and TN.  Florida region includes Florida only.  Mid-Atlantic includes DC, MD, NC, SC, and VA.  Other includes all other states. 

Balances exclude private-label student loans with third-party insurance and student loans and residential mortgages guaranteed by government agencies.

2.

Includes residential and commercial construction.

3.

Includes Other Direct and Credit Cards.

6

We have reduced our risk profile and

improved our core performance

We have reduced our risk profile and

improved our core performance

7

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

Construction

Prime

2nd

Lot

Loans

Alt-A

High LTV

Lines

Broker

Originated

Lines

HE

Loans

Government

Guaranteed

Loans

12/31/2008

12/31/2010

Higher

Risk

Segment

Loan

Balances

Reduced

Nearly

45%;

Government

Guaranteed

Loans

Increased

61%

Residential Mortgage

Home Equity

38%

41%

43%

17%

28%

36%

($ in millions)

208%

Higher Risk Portfolio Segments Significantly Reduced

8

Capital Position Enhanced and Increasing

Tier 1 Common Ratio

5.83%

7.34%

7.49%

7.67%

7.70%

7.92%

8.02%

8.08%

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

9

$0

$200

$400

$600

$800

$1,000

$1,200

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

Nonperforming Loans

Credit Metrics Remain Elevated but Are Exhibiting Favorable Trends

Net Charge-offs

($ in millions)

($ in millions)

Credit Metrics

10

1.50%

2.00%

2.50%

3.00%

$2,000

$2,200

$2,400

$2,600

$2,800

$3,000

$3,200

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

ALLL

Loan Coverage Ratio

Allowance Increased Through 1Q10; Modest Decline in 2H10 Due to Improved Credit Trends

($ in millions)

Allowance for Loan and Lease Losses

11

$2,000

$2,100

$2,200

$2,300

$2,400

$2,500

$2,600

$2,700

2009

2010

($500)

($400)

($300)

($200)

($100)

$0

$100

$200

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

Net Income / (Loss) to Common Shareholders ¹

Earnings Improvement from Lower Provision for Credit Losses and Higher PPNR

Pre-provision Net Revenue (Adjusted Basis) ²

($ in millions)

($ in millions)

Profitability Trends

1.

1Q09 excludes the impact of the $751 million Goodwill impairment.

2.

Excludes non-core items such as Goodwill impairment and securities gains.  See Appendix for reconciliation to GAAP figures.

12

Average Balances

($ in billions)

2-year CAGR ¹

Low Cost

Deposits

16%

High Cost

Deposits

-24%

Improved Deposit Mix

Strong Growth in Low Cost Deposits has Enabled Reductions in High Cost Deposits

Note :   Low Cost Deposits includes Noninterest Bearing, NOW Accounts, Money Market Accounts, and Savings Accounts.  High Cost includes Consumer Time, Other Time,

Brokered Deposits, and Foreign Deposits.

1.

Reflects 4Q10 average balance as compared to 4Q08 average balance.

$77

$82

$85

$90

$90

$92

$94

$98

$38

$38

$35

$33

$28

$27

$26

$24

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

Low Cost Deposits

High Cost Deposits

13

Seven Consecutive Quarters of NIM Expansion

Net Interest Margin

2.87%

2.94%

3.10%

3.27%

3.32%

3.33%

3.41%

3.44%

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

14

One Team

Client First

Focused on

Profitable Growth

•

Continued to invest in

teammate and leader

development

More than 1 million

hours of training in

2010

•

Realized increased

teammate engagement

scores across the

Company ¹

•

Improved cross-sell

penetration across many

lines of business

•

Implemented shared

goals across the

enterprise

•

Conducted 1,000 client calls per

day to better understand client

loyalty drivers and gather feedback

on our service levels

•

Ranked #1 bank for Customer

Experience ²

•

Achieved #1 industry ranking for

client loyalty in Commercial and

Private Wealth Management ³

•

Achieved #1 ranking for

consumers’

confidence in their

bank ³

•

Received 18 Greenwich

Excellence Awards for outstanding

client service (12 for Small

Business Banking, 6 for Middle

Market Banking)

•

Ranked #1 in Customer

Satisfaction for Small Business

Banking and #2 for Primary Loan

Servicing

4

•

Achieved record revenue in

the Corporate & Investment

Banking line of business

•

Increased total loan yield by 12

basis point from 2010 to 2009,

despite declining rate

environment

•

Grew brokerage managed

account revenue by 28% from

2009

•

Exceeded Lipper 3-year

average for 75% of

RidgeWorth long-term funds

•

Reduced long-term debt,

brokered deposits, and foreign

deposits by a combined $6.4

billion, or 28%, from 2009

Selected 2010 Accomplishments

Substantial Progress Made in 2010; Strong Momentum Entering 2011

1.

Based upon internal surveys conducted by Gallup.

2.

By Forrester Research.

3.

Based upon independent survey results by Gallup.

4.

By J.D. Power and Associates.

15

Our mission is to help people and institutions prosper

One Team

Client First

Focused on

Profitable Growth

We accomplish this by focusing on three principles:

We know that highly engaged teammates drive client loyalty, which leads to

primary relationship growth

Mission and Values

SunTrust’s Mission is Supported by a Core Set of Principles

16

Our strategic priorities are intended to

drive further improvements in our

financial performance

Our strategic priorities are intended to

drive further improvements in our

financial performance

17

Growth Strategies

Growth Strategies

•

Diversify the Balance Sheet

•

Optimize Business Mix

•

Improve Expense Efficiency

•

Grow Market Share

18

Commercial Lending / Fee Businesses

•Asset-Based Lending

•Small Business Administration lending

•Commercial ($5-100MM revenue)

•Middle Market ($100-750MM revenue)

•Corporate & Investment Banking

($750MM+ revenue)

Targeted

Growth

Areas:

High-opportunity

businesses,

segments,

and

products

where

we

are

well-positioned

to

grow

non-real

estate

loans

and

fee

income

Targeted Growth Areas

Consumer Lending / Fee Businesses

•Mass Affluent client segment

•Private Wealth Management

•Credit Card

•Auto lending (direct and indirect)

Loan Portfolio Composition –

12/31/10

Diversify the Balance Sheet & Optimize Business Mix

Targeted Areas for Growth are Intended to Diversify the Loan Portfolio and Enhance Fee

Income

39%

5%

3%

4%

21%

14%

4%

8%

2%

Commercial & Industrial

Commercial Real Estate

Construction

Resi. Mtg.

-

Guaranteed

Resi. Mtg.

-

Nonguaranteed

Home Equity

Student Loans

-

Guaranteed

Indirect Consumer

Other Consumer

19

$4,867

$5,911

$4,607

$4,797

2006

2010

2006

2010

($ in millions)

Total  Noninterest

Expenses

Expenses Excl. Adjustments and

Cyclical Items ¹

Opportunities to Improve

Efficiency Ratio

•

Continued improvements in

revenue generation

•

Balanced approach to

investments and expense

discipline

•

Abatement of cyclical

expenses

Improve Expense Efficiency

Expense Savings Enabled Continued Investment in the Business while Keeping Core Expenses Flat

1.

Appendix includes reconciliation of non-GAAP numbers and details of adjustments and cyclical expenses.

2.

Reflects the respective expense item divided by Total Revenue, FTE.  Additional information on the calculation is included in the appendix.

Impact on

Efficiency Ratio ²

2006

2010

Credit

Expenses

1.8%

7.9%

Regulatory

Assessments

0.3%

3.0%

20

•

Since the “Live Solid. Bank Solid.”

brand campaign began, SunTrust

has improved performance against

the competition on deposit and

household growth

•

According to a Gallup poll,

SunTrust clients showed the

highest level of satisfaction with

efforts to inform them about

overdraft changes

•

Competitive studies indicate

the service in SunTrust

branches and call centers is

the highest in the industry –

beating large and regional

banks in service scores

Household Growth

Grow Market Share

Efforts to Grow Market Share are Yielding Results

1.

Source: 2008 & 2009 Nielsen Claritas Demographic Update.

2.

Retail Banking checking households.

21

Updates on Current Topics

Updates on Current Topics

22

Net Interest Margin

•

Continued modest NIM expansion, due to favorable trends in deposit mix and costs, as well as efforts to

enhance loan spreads

•

Average loans and deposits relatively stable from the prior quarter

Noninterest Income

Noninterest Expense

•

Decline vs. 4Q10, despite 1Q11 seasonal uptick in employee benefits costs

Provision

•

Net charge-offs stable to modestly down vs. 4Q10

•

ALLL reduction likely to be similar to 4Q10 release, subject to normal quarter-end evaluation

1Q 2011 Expectations

1

1.

Based upon quarter-to-date information as of the end of February 2011.

Favorable Trends Overall with Cyclical Impact to Fee Income

•

Core fee income decline of an approximate low double digit percentage from 4Q10, due to market-sensitive

revenue, including:

Investment Banking down from record 4Q10, as 1Q revenue is typically seasonally slower

Mortgage Production decline from 4Q10, due to the impact of rising rates on origination volume

•

1Q11 quarter-to-date securities portfolio repositioning has generated gains similar to recent quarters

23

Basel III Tier 1 Common

TARP Repayment

•

SunTrust’s TARP

repayment is currently

being evaluated as part

of the Comprehensive

Capital Plan Review

(CCPR)

•

The Fed has indicated it

expects its reviews to

be completed toward

the end of the month

•

SunTrust will re-

evaluate its TARP

repayment options after

completion of the CCPR

Basel III Tier 1 Common (Estimated)

Tier

1

Common

Ratio

Exceeds

2019

Basel

III

Standard

1

1.

2019 is the effective date for Basel III requirement.  Includes the 4.5% minimum standard plus the 2.5% conservation buffer; does not include a countercyclical buffer.

24

Summary

•

SunTrust has an attractive footprint and a diverse

business mix

•

We have reduced our risk profile and improved

core performance

•

Our strategic priorities are intended to drive further

improvements in our financial performance

•

SunTrust is well-positioned to manage through the

economic recovery and to capitalize upon our

opportunities

•

SunTrust has an attractive footprint and a diverse

business mix

•

We have reduced our risk profile and improved

core performance

•

Our strategic priorities are intended to drive further

improvements in our financial performance

•

SunTrust is well-positioned to manage through the

economic recovery and to capitalize upon our

opportunities

SunTrust Banks, Inc.

Citigroup Financial Services Conference

March 9, 2011

William H. Rogers, Jr.

President and Chief Operating Officer

26

Appendix

27

Reconciliation

of

Non-GAAP

Measures

–

PPNR

Note:

Adjusted

revenue

and

expenses

are

provided

as

the

removal

of

certain

items

that

are

material

and

potentially

non-recurring

is

useful

to

investors

and

management

in

comparing

institutions

and

in

evaluating

financial

trends.

($ in millions)

Reported PPNR

2009

2010

2010 vs. 2009

Net Interest Income, FTE

$4,589

$4,970

8.3%

Noninterest Income

3,710

3,729

0.5%

Total Revenue

8,299

8,699

4.8%

Noninterest Expense

6,562

5,911

-9.9%

Pre-provision Net Revenue

1,737

2,788

60.5%

Adjustments

Noninterest Income:

Securities Gains

98

191

VISA Gain

112

-

Stable River Gain

-

13

Fair Market Value - Trading

(24)

26

STI Debt Valuation - Trading

(153)

37

Auction Rate Securities - Trading

9

(5)

Fair Value Writedowns - Mortgage Production

(34)

(20)

LOCOM MSR Recovery

199

-

Total Noninterest Income Adjustments

207

242

Nointerest Expense:

Goodwill Impairment

751

-

AHG Writedown

46

16

Loss on Debt Extinguishment

39

71

FDIC Special Assessment

78

-

VISA Litigation Accrual

7

-

VISA Contract Termination

-

8

Total Noninterest Expense Adjustments

921

95

Adjusted PPNR

Net Interest Income, FTE

4,589

4,970

8.3%

Adjusted Noninterest Income

3,503

3,487

-0.5%

Adjusted Total Revenue

8,092

8,457

4.5%

Adjusted Noninterest Expense

5,641

5,816

3.1%

Adjusted Pre-provision Net Revenue

$2,451

$2,641

7.8%

28

Reconciliation

of

Non-GAAP

Measures

–

Expenses

1.

Adjusted expense is provided as the removal of certain items that are material and potentially non-recurring is useful to investors and management in comparing institutions and in evaluating expense trends.

2.

Expense excluding adjustments and cyclical items is provided as it removes expenses that are recurring in nature, but higher in a recessionary cycle, and is useful to investors and management in

assessing

the

impact

of

the

recession

on

non-interest

expenses

and

earnings.

It

also

facilitates

analysis

of

the

effectiveness

of

management

in

controlling

expense

growth.

($ in millions)

2006

2010

$MM

CAGR

Total Expenses

$4,867

$5,911

$1,044

5.0%

Adjustments

AHG Writedown

-

16

Loss on Debt Extinguishment

12

71

VISA Contract Termination

-

8

Total Adjustments

12

95

Expenses Excl. Adjustments

1

4,855

5,816

961

4.6%

Cyclical Items

Regulatory Assessments

23

265

Pension Expense

78

66

Credit Expenses:

Credit & Collection Services

102

279

Other Real Estate

0

300

Mortgage Reinsurance

-

26

Operating Losses

45

83

Total Cyclical Items

248

1,019

Expenses Excl. Adjustments & Cyclial Items

2

$4,607

$4,797

$190

1.0%

Contribution to Efficiency Ratio

Total Revenue, FTE

$8,217

$8,699

Credit Expenses

147

688

Regulatory Assessments

23

265

Credit Expenses / Total Revenue

1.8%

7.9%

Regulatory Assessments / Total Revenue

0.3%

3.0%

2010 vs. 2006