SunTrust Wealth and Investment Management Line of Business


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SunTrust Wealth and Investment Management Line of Business

  1. 1. SunTrust Wealth and Investment Management Line of Business William H. Rogers, Jr. Corporate Executive Vice President Wealth and Investment Management Line of Business
  2. 2. The following should be read in conjunction with the financial statements, notes and other information contained in the Company’s Quarterly Report for the period ended March 31, 2006 on Form 10-Q and the 2005 Annual Report on Form 10-K. This presentation includes non-GAAP financial measures to describe SunTrust’s performance. The reconciliation of those measures to GAAP measures can be found in the appendix of this presentation, as well as in SunTrust’s earnings press releases, which can be found on SunTrust’s website in the news section of the investor relations pages. In this presentation, net interest income, net interest margin and the efficiency ratio 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 (within the meaning of the Private Securities Litigation Reform Act of 1995) which involve significant risks and uncertainties, and investors are cautioned against placing undue reliance on management’s expectations. The forward-looking statements are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements preceded by, followed by or that include the words “intends,” “believes,” “expects,” “anticipates,” “plans,” “estimates,” “goals,” “strategies,” “initiatives,” “opportunities,” or similar expressions or future conditional verbs such as “will,” “should,” “would,” and “could.” Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: changes in interest rates; changes in general business or economic conditions or the competitive banking environment; changes in credit conditions including customers’ ability to repay debt obligations; competitive pressures among local, regional, national, and international banks, thrifts credit unions, and other financial institutions; increases in the cost of funds resulting from customers pursuing alternatives to bank deposits or shifting from demand deposits to higher-cost products; significant changes in legislation or regulatory requirements, or the fiscal and monetary policies of the federal government and its agencies; significant changes in securities markets or markets for commercial or residential real estate; the Company’s success in managing its costs, including costs associated with the expansion of distribution channels and developing new ones; the potential that the Company may acquire other institutions or may be acquired by other institutions; the potential that the Company may divest certain portions of its business; hurricanes and other natural disasters; litigation; and changes in accounting principles, policies, or guidelines. These factors and others are described in the Company’s Annual Report on Form 10-K under the heading “Risk Factors,” as supplemented by the Company’s Quarterly Report on Form 10-Q. The forward-looking statements in this presentation speak only as of the date of this presentation, and SunTrust does not undertake to update any forward-looking statement to reflect circumstances or events that occur after the statement is made. 0 1
  3. 3. Our Composition Wealth and Investment Management Private Wealth Institutional Management Investment Management Private Wealth Management SunTrust Investment Svcs Corporate Trust Personal Asset Management Retirement Services Sports & Entertainment International Wealth Management Endowment & Foundation Medical & Legal 89
  4. 4. Wealth and Investment Management: Who We Are • Uniquely positioned to leverage investments made in our people, products and capabilities to achieve above market returns • Provider of integrated solutions, sound investment management and a broad offering of investment and administrative products and services • Financial planning and need identification is at the core of our strategy: Listen First • Our goal is to be recognized as the Trusted Advisor guiding individual and institutional clients in achieving their financial goals • Situated in the highest-growth banking footprint, with exceptional wealth creation and management dynamics • Offer broad capabilities to meet client needs across lifecycles and client segments 90
  5. 5. Focus On Private Wealth Management Wealth and Investment Management Private Wealth Institutional Management Investment Management Private Wealth Management SunTrust Investment Svcs Corporate Trust Personal Asset Management Retirement Services Sports & Entertainment International Wealth Management Endowment & Foundation Medical & Legal 91
  6. 6. Building a Compelling Private Wealth Management Business and Team Model Consolidated Private Banking, representing over 52,000 households, $3B in Loans and $4B in Deposits, with Private Wealth Management and expanded team-based operating model Building Private Wealth Management 2005 Leveraged existing specialty focus to develop a broader platform. Expanded successful Music & Motorsports to Sports & Entertainment and expanded Medical / Legal Specialty Group to major markets Created focus on Financial Planning with key positions in all Regions, centralized technology and provided training to clearly identify client needs Consolidated investment management unit under Personal Asset Management 2002 (PAM) while retaining local relationship focus. Enabled “best-in-class” investment platform Ultra High Net Worth (UHNW) study reveals solid client base and low cost of new client acquisition. Acquire Family Office – AMA with brand relevant capabilities Acquired Lighthouse Partners, a hedge fund provider, in order to expand 2001 investment alternatives to meet client needs Expanded brokerage capabilities, focused on money management and the creation of a new outlet for client acquisitions. Acquired Robinson Humphrey Strong Trust Key Further Fiduciary and acquisitions in expand and created the full-service brokerage firm, Alexander Key Estate Family-Office specialty Settlement and hedge disciplines, Implemented team-based Private Client Services operating model (PCA) capabilities fund client coupled with opportunities; capabilities Brokerage Brokerage and the 2000 Trust Fiduciary and Estate Settlement capabilities coupled with Bank Brokerage expansion team-based capabilities focus on affluent market with annuity and mutual fund fees operating model 92
  7. 7. Private Wealth Management Capabilities Strategic investments have enabled Private Wealth Management to provide a breadth of capabilities Real Estate and Credit Investment Management Special Asset • Jumbo Mortgage • Portfolio Management for Equity • Personal and Commercial • Home Equity Line • Fixed Income Real Estate Property • Lines of Credit • Alternative Investments and Multi- • Timber Management • Letters of Credit Managers • Closely-Held Business • Swing Loans • Stock Option Alternatives Valuations • 1031 Exchanges Risk Management Online Banking • Collars Client • • Portfolio View Online Statements • Prepaid Forwards • Covered Calls • Custom File Delivery • Online Investing Trust and Estate Personal Insurance Administration Financial Planning • Revocable and Irrevocable Trusts • Life Insurance Products • Estate Planning • Estate Tax Minimization • Wealth Transfer • Estate Settlement • Income Tax Strategies • Long-Term Care • Custodial Services • Probate Avoidance • Delaware Trust Company • Offshore Trusts 93
  8. 8. Client-Centered Team Model Private Wealth Management’s client-centered team model was developed in order to establish the appropriate points of contact for multiple capabilities Client Client Advisor Trust Advisor Credit Advisor Full-Svc. Broker Financial Product Philanthropic Planning Specialists Specialists Derivatives Insurance Cap Markets Ret. Svcs. Spec. 94
  9. 9. Strategies for Client Acquisition and Retention Private Wealth Management has developed strategies for addressing client needs at all levels of wealth SunTrust Investment Services Investment Consultants Private Wealth Advisors Licensed Bankers Private Financial Advisors Wealth Management Services Sports & Entertainment Domestic Wealth Management Wealth Management Advisory Centers International Wealth Management Personal Asset Management Asset Management Advisors $250K Investable Assets $25MM 95
  10. 10. Specializing in Our Client Asset Management Advisors (AMA) provides family office services for ultra high net worth clients within Private Wealth Management Wealth and Investment Management acquired Asset Management Advisors, a premier builder and operator of family offices for ultra high net worth families • Multi-Family Offices grew AUM at 26% during 2004-2005 whereas AMA grew at close to 40% in this same time frame. • Attracted top talent from JP Morgan Private Bank and Citicorp Relevance to our model is supported by success: Assets Under Management (MM) # of Families Supported Ave. Asset Value per Family (MM) $8,000 310 $26 0% es $20 30% 50 Ti m 1, 15 $500 21 2001 2005 2001 2005 2001 2005 96
  11. 11. Specializing in Our Client Dedicated specialty Private Wealth Management groups have been organized to unify support of targeted client segments Medical & Legal • Press release on May 16th • Currently serving over 18,000 Medical and Legal households, representing over $1B in investments Sports & Entertainment • Press release on March 28th • Over the last two years, Sports & Entertainment total performance has grown at a compound annual growth rate of 45% • PricewaterhouseCoopers forecasts global entertainment and media industry to grow at 6.3% per year for 2003-08, reaching a value of $1.7 trillion by 2008 • SunTrust currently serves: • 18 Grammy winners • 30 NASCAR Nextel Cup Drivers • 23 Teams in the Grand Am Championship 97
  12. 12. Specialization as an Opportunity The growth opportunity for the client segments served by AMA, Sports & Entertainment and the Medical & Legal specialty groups is tremendous The U.S. High Net Worth (“HNW”) segments are The U.S. Ultra High Net Worth (“UHNW”) growing rapidly at 15-20% annually market is large. Households control ~$15 trillion or nearly three fifths of total U.S. financial wealth The opportunity in the U.S. HNW market is tremendous and has positive implications for the Having a distinct UHNW business is critical to growth in the trust market competing in the marketplace Source: McKinsey High Net Worth Investor Survey There are over 4,000 potential high net In 2004, about one-quarter of law firms were worth individuals within 5 major sports* that located in Southeast region, with a large presence have been identified in Florida – Major League Baseball = 950 (30 teams with 25 man Small firms can compete by providing specialized rosters plus 200 minor league) – National Basketball Association = 360 (30 teams with expertise or operating in very local markets Source: IBISWorld Industry Reports Oct. 2005 and First Research Industry Profiles 12 man rosters) – National Football League = 1,760 (32 teams with 55 man rosters) Southeast region had largest concentration of – National Hockey League = 720 (30 teams with 24 man physician establishments in 2002 and largest rosters) number of employees – Professional Golfers Association = 200 (world rankings) Key success factors include: loyal customer base and proximity to key markets/patients Source: IBISWorld Industry Reports Sept. ‘05 and First Research Industry Profiles Nov. ’05 * 4,000 high net worth individuals refers to athletes from only 5 major sports. It does not include soccer, tennis, arena football, boxing, etc. This number also does not include managers, agents, attorneys, media personalities or other key players in the industry. 98
  13. 13. Leveraging the Franchise SunTrust is located in the best footprint for continued growth and Private Wealth Management continues to leverage SunTrust to best meet client needs Wealth and Investment Management made 28,000 referrals to Retail in 20051 Partnership established with Retail to support investment needs of branch clients. This partnership enabled 80,000 referrals to Wealth and Investment Management in 20052 Partnership established with Commercial to address Business Owner private wealth needs Partnership established with SunTrust Investment Services (“STIS”) and Mortgage to encourage referrals from Mortgage clients to Private Wealth Management. Also, STIS is partnering with Mortgage to mine for other client penetration opportunities Projected Client Segment Growth (SunTrust Footprint) 2005 - 2010 118.0% Mortgage CIB Wlth and SunTrust 51.7% Invest. Client 33.5% Man. Cmml 5.2% $0 - 500K $500K - 1MM $1MM - 2MM $2+MM Retail Wealth Band 1 Includes NCF. Source: Claritas, Inc.: I-mark geo-demographic database. 2 SunTrust legacy only. 99
  14. 14. Retirement as an Opportunity We continue to focus on client generation as well as further penetration of current clients Capture internal and external IRA rollover by utilizing available resources in our Rollover Solution Center Build retirement into SunTrust@Work to broaden existing relationships and develop new worksite relationships Create a delivery model to effectively serve business owners’ succession and retirement needs Integrate retirement into advisors’ existing planning tools Focus on employee education in order to drive asset acquisition Integrate retirement messages to build brand awareness of SunTrust retirement solutions 100
  15. 15. Private Wealth Management: 2006 in Review Total Assets Under Advisement as Q1 2006 Revenues - $238.4MM of 3/31/2006 - $101.1B SunTrust SunTrust Inv Svcs Inv Svcs 23% 35% Domestic / Domestic / Intl Intl Wealth Mgmt AMA Wealth Mgmt / Sports & 3% / Sports & Ent. Ent. 57% 74% AMA 8% Select Recent Highlights: • SunTrust Investment Services has been awarded the Banking Insurance & Securities Association award for Excellence for Large Institution Program of the Year • Voted “Best Bank to Deposit Your Royalty Check” by Music Row Magazine for three consecutive years • Official bank of NASCAR and Grand American Road Racing • 11 of top 50 consultants featured in the Bank Investment Consultant are SunTrust Investment Services employees 101
  16. 16. Key Takeaways: Private Wealth Management Private Wealth Management is uniquely poised to deliver the entire portfolio of personal wealth products and services to affluent, wealthy and high net worth clients through our client-centric team model Strength of our partnerships within the SunTrust Franchise (Commercial, Retail, Mortgage, CIB, Endowment & Foundation, Retirement Services etc.) Located in the best footprint to serve the Baby Boomer market Leverage momentum gained through strategic investments Develop an increased share of wallet with the existing client base, focusing on clients served in a single-product capacity Expansion of niche segment specializations (Sports, Entertainment, Motorsports, Medical, Legal, International) Expansion of ultra high net worth client service capabilities 102
  17. 17. Focus On Institutional Investment Management Wealth and Investment Management Private Wealth Institutional Management Investment Management Private Wealth Management SunTrust Investment Svcs Corporate Trust Personal Asset Management Retirement Services Sports & Entertainment International Wealth Management Endowment & Foundation Medical & Legal 103
  18. 18. Building a World Class Money Manager and Institutional Services Provider 2006 STI Classic Funds exceed $35 billion (4/30/06) Evolution of Institutional Investment Management 2005 TCM AUM exceeds $70 billion (12/31/05) TCM acquires Seix Investment Advisors, Inc., a premier institutional fixed income manager TCM acquires a majority interest in Zevenbergen Capital Investments, LLC. ZCI serves as an independent, registered investment advisor to 2004 fulfill a niche for individually managed equity portfolios in the increasingly popular and successful growth equity markets Integrated First Mercantile, a wholly owned subsidiary associated with the legacy NCF business 2003 TCM AUM exceeds $50 billion (12/31/03) Institutional Sales for Endowment & Foundation and Retirement 2001 Services merged into Trusco Capital Consolidated Acquired Further 3 separate ZCI expand internal (aggressive disciplines money growth and managers manager) capabilities SunTrust’s three institutional investment management subsidiaries into one and Seix 2000 are consolidated into a single registered investment advisor, Trusco Advisors Capital Management, Inc. (“TCM”) (high yield core plus) 104
  19. 19. Trusco Capital Management Trusco Capital Management (TCM) has grown both $70 organically and through acquisitions. Trusco continues Billion to evaluate acquisitions that would be accretive to its 2004 business Acquired Zevenbergen (Seattle, WA) and Seix Advisors (Upper TCM is also continuing to grow organically by Saddle River, New Jersey) developing new products and services to meet the changing demands of institutional clients 2000 Combined CAMCO (Richmond, VA), STI Capital (Orlando, FL) into Trusco 1992 Launched STI Classic Mutual Fund Complex Created Trusco Capital Management Inc. Assets Under Management Organic Growth + Strategic Acquisitions + Product Development 1984 2005 3 Investment Products 70 Investment Products 1 office 8 Offices 105
  20. 20. Trusco Boutiques – Structure and Products A nationally recognized money management firm Trusco Capital Management Boutiques Trusco Capital Management Boutiques with over $70 billion in assets under management. • Zevenbergen Capital Investments • Seix Advisors Trusco strategically adds • Aggressive Growth Equities • Core Fixed value through services • Emerging Growth Equities • Core Plus Fixed ranging from individual • Floating Rate Fixed • High Yield style specific mandates to diversified investment • Trusco Core Growth Equity • Trusco Municipal Bond solutions. • International • Intermediate Tax-Exempt Fixed • Large Cap Core • Core Tax-Exempt Fixed • Performance • Mid-Cap Core • High Net Worth Tax-Exempt Portfolios Driven Culture • Large Cap Growth • Structured Tax-Exempt Portfolios • Small Cap Growth • Talented • Large Cap Quantitative • Small Cap Quantitative Investment Professionals • Disciplined Investment • Trusco Short-Term & Liquidity • Trusco Core Value Structured Products Processes • Large Cap Core Value • Money-Market & Enhanced Cash • Autonomous and • Short-Term Fixed Independent Decision • Structured Portfolios Making • Trusco Value Equity • Broad array of competitive • Large Cap Value Total AUM (12/31/05) = $70.4 Billion products • Mid-Cap Value Equity AUM = $19.9 Billion • Small Cap Value Fixed Income AUM = $29.7 Billion Liquidity AUM = $20.8 Billion 106
  21. 21. Institutional Services - Administrative Expertise Retirement Services Endowment & Foundation Corporate Trust • Retirement Services (RS) supports • SunTrust partnered with its first • Corporate Trust generates over 1,614 plans, over 200,000 nonprofit client in 1918 – still a client $38 million in annual fees, and participants located in all 50 states today. contributes more than $4 billion and has $26.5B in assets under in AUM to the SunTrust Classic • Today E&F serves over 1,250 nonprofit advisement. Funds. relationships with $35 billion in assets • SunTrust Retirement Services offers under administration and more than • Corporate Trust provides Bond comprehensive retirement planning, 750 Charitable Trusts (Planned Giving) Administration, Escrow superior products and is recognized totaling over $650 million in assets. Administration, 1031 Exchange, for its high touch, single point of Custody and Delaware Business contact service model. • E&F provides customized investment Trust services. management and services for clients • In addition to the Retirement through our regional offices. These Services Division, SunTrust also • Corporate Trust clients are: services include supporting client’s offers retirement plan services • Tax-exempt entities gifting strategies, charitable intent and through First Mercantile, a wholly (municipal and not for profits) community focus. • Desire bond trustee and owned subsidiary, by utilizing financial intermediaries such as escrow services on publicly sold debt, as well as custodial banks and brokerage firms. services. • This allows SunTrust to deliver plans • Taxable (corporate) entities with the most effective level of • Includes public and private companies, partnerships, real service regardless of plan size, estate developers, banks in location, etc. organization, and attorneys. 107
  22. 22. Creating Solutions Tailored for Institutions Institutional Investment Management intends to be recognized as a trusted advisor guiding institutional clients in achieving their financial goals Endowment & Fixed Income STI Classic Funds Foundation • Over $35B in AUM as of 4/30/06 • Planned Giving • Liquidity & Short-Term • Grant Tracking and Grant Fixed • 6th largest bank-sponsored fund complex as of 12/31/05 Administration • Tax-Free Fixed • Custody & Master Custody • High-Grade Taxable • Comprised of 61 funds • Independent board of trustees • Customized Investment Fixed Management choices for • High-Yield Fixed charitable assets and trusts • Floating-Rate Bank Loans Corporate Trust Equity Management Institutions • Bond Indenture Trustee • Escrow Services • Value Equity: Large, Mid and Small Cap • 1031 Exchange Agent • Growth Equity: Large, Mid Strategic Allocation and Small Cap Retirement Services • International Equity Solutions • Aggressive Growth • Open Architecture Investments • Defined Benefit (DB) Plans Equity: Large Cap and • Client Needs Assessment • Defined Contribution (DC) SMID • Investment Policy Development Plans • Manager Due Diligence • Rollover Solutions • Portfolio Construction • Advice/Managed Account • Reporting & Account Servicing • Custody Services 108
  23. 23. Diversified Product Offering and Sales Channels Products/Services Channels • Separate Account Management • Wrap Separately Managed Accounts Consultant • Sub-Advisory • STI Classic Funds National Taft Hartley • Bundled (Management & Administration) & Municipal • Custody & Master Custody Institutional Sales Teams Intermediaries Regional (For Profit & Not-For- Profit) 17 Intermediary & Wholesalers 11 Corporate & Investment Banking 8 Retail Intermediaries Consultant Relations 5 Taft Hartley/Public Funds 3 SunTrust Service Teams Franchise Investment Managers 56 Relationship Managers 78 Direct Sales 109
  24. 24. Leverage the Franchise SunTrust has many high quality corporate and institutional relationships who are potential clients of Institutional Investment Management Institutional Investment Management is partnering with a number of areas within the Company to increase new client sales and capture more assets from existing clients Rollover Solution Center is prepared to support the increased pool of internal IRA rollover candidates and the internal IRA capture Mortgage CIB Endowment & Foundation, Private Wealth Management and CIB have partnered to mine for new foundation opportunities Wlth and SunTrust Invest. Client Institutional Investment Management worked with SunTrust Man. Cmml Investment Services and SunTrust Robinson Humphrey to introduce the Mountain View CLO-2006A offering Retail Retirement Services, First Mercantile and Commercial have established a partnership to capture greater share of wealth management opportunities within Commercial Banking 110
  25. 25. Institutional Investment Management: 2006 in Review Total Assets Under Advisement as of Q1 2006 Revenues - $88.6MM 3/31/2006 - $148.3B LHP First Merc. LHP 3% 3% 11% TCM Corp. TCM First Merc. 49% Trust 34% 13% 19% Corp. Trust 11% E&F Ret. Svcs. 24% E&F 22% 15% Ret. Svcs 18% • TCM Ranked Largest Manager of High Yield Bonds* Selected Recent Highlights: • TCM Ranked 8th Largest Manager of Endowment & Foundation Assets* • More than 20 SunTrust Classic Funds received 4 • TCM Ranked 19th Largest Manager of Active stars or higher for 5-year returns at the end of 1st Domestic Equity* Quarter 2006 by Morningstar • 58% of SunTrust Classic Equity Funds ranked A or B by Lipper for Q1 2006 and 1 year ending 3/31/2006 • 62% of SunTrust Classic Equity Funds ranked A or B by Lipper for 5 years ending 3/31/2006 • Lighthouse Partners was awarded the 2006 US MARHedge Performance Award in the Fund of Funds Single Strategy category (Lighthouse Credit Opportunities Fund) * Source: Pension & Investments; May 29, 2006 Tax-exempt funds. All information believed to be reliable but accuracy not guaranteed. 111
  26. 26. Key Takeaways: Institutional Investment Management Institutional Investment Management adds value to each client by leveraging the strengths of the entire organization, with unwavering commitment Current Future • Ability to sell competitive proprietary • Continue to strengthen and expand investment products independently and then distribution channels augment them with third party or non- proprietary products to deliver comprehensive investment solutions • Proven, successful track record integrating money management firms • Seamlessly bundle and/or unbundle services and professional talent to meet the unique needs of a wide array of institutional clients • A talented group of client service professionals • Continue to build new products and who act as trusted advisors and bring industry services to meet the current and expertise, best practices, ideas, suggestions anticipated needs of institutions and recommendations to the client • A talented, experienced and stable group of investment professionals with a proven track record who provide successful asset management 112
  27. 27. Coverage of the Wealth and Investment Management Market SunTrust is uniquely positioned to approach multiple segments of the market and successfully compete with products and services tailored and packaged for each channel Private Wealth Channels Institutional Market Private Wealth Management Consultant, Direct & Intermediary Channels Personal Asset Management Family Office & Independent Private Wealth Sports & Entertainment International Wealth Channel Management • Retirement Services SunTrust Investment Svcs. Medical & Legal SunTrust Distribution • Endowment & Foundations • Corporate Trust Network Bundled & Unbundled Solutions 113
  28. 28. Manufacturer & Distributor – Meeting the Needs of Clients SunTrust is successful in manufacturing competitive investment products as well as distributing proprietary and non-proprietary investment management Institutional Market Private Wealth Market SunTrust’s institutional money managers are able to SunTrust Investment Services is a distributor of distribute independently because their products and both proprietary investments as well as non- results are competitive and compelling proprietary products Trusco Capital, Seix, Zevenbergen and Lighthouse Personal Asset Management is primarily Partners have excellent reputations and brand managing assets for the SunTrust client base awareness in the consultant and institutional markets. using proprietary and non-proprietary asset Products continue to be successfully sold through these management solutions and other non-proprietary or third party channels Extensive due diligence process conducted on all In 2005, 35% of Investment Management sales were funds sourced from the Consultant & Intermediary Channels Nearly 100% of AMA’s assets under management The 401(k) product, has 15 different mutual fund are sub-advised by third party managers complexes with over 145 funds. We conduct extensive due diligence on all these funds, including our own With a focus on delivering compelling investment performance, superior client service and attractively priced options, SunTrust utilizes both proprietary and non-proprietary distribution channels and investment products 114
  29. 29. Gained Efficiencies and Improved Operating Leverage As Wealth and Investment Management has grown, we have continued to focus on creating efficiencies while ensuring healthy growth Since 2001, we have increased Established the Wealth Management Advisory Centers in 2003 by transaction volume in several areas, completing the transfer of 5,500 accounts while significantly reducing core • The Advisory Centers have developed significant expertise in fiduciary administration, implemented an effective remote client management operations staff: capability, and met quality, efficiency and client retention goals • Implementation of the Advisory Centers provided a streamlined model for 16% additional volume of DTC and account support. The average capacity by Advisory Center Trust Advisor Fed Trades is 300 accounts • Given the success of the Advisory Center model, we have recently raised 312% more SunTrust Classic and the minimum threshold for accounts to be supported by the Center to 3rd Party Mutual Fund Trades $1MM in value 91% additional income postings to Raised our capability to leverage growth in trust assets via the recent trust account conversion to the SEI Trust 3000 platform institutional accounts Sold the SunTrust Stock Transfer business Consolidated sales forces and maximized span of control Centralized back office functions from Chattanooga operations center 40% reduction in core Implementing more rigorous staffing models in all areas operations staff 115
  30. 30. Looking Ahead While we are very proud of our history, we are focused on our future. Looking ahead, our strategic investments have positioned us for positive returns We have established partnerships with all SunTrust Lines of Business SunTrust Operating Model supports operational excellence Team Operating Model is gaining momentum Developed significant non-proprietary distribution and manufacturing Early investments moving to the upside of the “J” curve Key investments have been made in our capabilities, talent, technology and risk management We are well positioned to maximize on current and future market dynamics Top line growth combined with margin improvement is the success formula for Wealth and Investment Management and key to achieving our 12-14% long-term annual net income growth goal1 1 Actual results could differ materially from those contained in or implied by such statements. A list of important factors that could affect actual results are listed on slide 1. 116
  31. 31. SunTrust Wealth and Investment Management Line of Business William H. Rogers, Jr. Corporate Executive Vice President Wealth and Investment Management Line of Business