Truist Financial Corporation · NYSE:TFC
Truist Financial — BB&T — Investor Presentation (February 2009)
19 slides from Truist Financial's investor presentation, Feb 11, 2009
Slide 1: Total Assets and Market Value
Total Assets and Market Value Assets Market Value U.S. U.S. Rank Company $ Billions Rank Company $ Billions J.P. Morgan $ 2,175 J.P. Morgan $ Citigroup 1,945 Wells Fargo Bank of America 1,818 Bank of America Wells Fargo 1,310 U.S. Bancorp PNC Financial Citigroup U.S. Bancorp PNC Financial SunTrust B
Slide 2: Financial Management Agenda
Financial Management Agenda 1. Profitability 2. Balance Sheet Strategy 3. Investment Portfolio 4. Funding and Liquidity 5. Interest Rate Sensitivity 6. Capital 7. Investing for the Future 8. Summary
Slide 3: Source: SNL and Company Reports
Source: SNL and Company Reports
Slide 4: Profitability
Profitability Efficiency Ratio - Drivers Integration of systems and processes Corporate culture – everyone on same page Disciplined integration of acquisitions Mind set – treat company’s money as if it is your own Positive operating leverage Profitability Operating Leverage Linked Period Basis 1 st
Slide 5: Balance Sheet Strategy: Loan Growth
Balance Sheet Strategy Loan Growth Versus the Same Period of the Prior Year
Slide 6: Loan growth versus peers chart
14.00% 11.8% 12.00% 10.00% 8.00% 6.00% 6.1% 4.00% 2.00% 0.00% : ; + : 4Q07 1Q08 2Q08 3Q08 4Q08 —@—BBT —te—Peers
Slide 7: Capital Purchase Program
Balance Sheet Strategy Capital Purchase Program U.S. Treasury invested $3.1 billion of preferred stock (including warrants) in BB&T Corporation. Viewed favorably by regulators and rating agencies. Preferred stock has lower cost of capital than current marketplace. Initial goal – neutralize the cost
Slide 8: Investment Portfolio by Security Type
Investment Portfolio by Security Type December 31, 2008
Slide 9: Investment Portfolio Summary
* Distribution is calculated based on quarter -end amortized cost. Investment Portfolio Summary December 31, 2008 (Dollars in millions)
Slide 10: Investment Portfolio Strategy; Funding and Liquidity
Investment Portfolio Strategy Invest in high quality low risk securities. Utilize cash flows to fund loan growth. Pledge securities to bring in client public funds and repurchase agreements. Securities are evaluated every quarter for impairment. In the past, we have had adequate offsetting transacti
Slide 11: Funding and Liquidity
Funding and Liquidity Funding Strategies Fund as much as possible from clients (deposits and borrowings) Diversity of funding sources – secured and unsecured Bank notes / medium-term notes Broker deposits Fed funds Dealer repurchase agreements Commercial paper Eurodollars Stagger maturities to avoid
Slide 12: BB&T versus peers chart
3.68% a= ~ 33 AN | 34 3.19% 29 27 June Sep- Dees Mats June Sep- Dec- Mat Jun- Sep- Dec 1 of of Of OO 8 8 OF OF OF Seo Dec 8 08 —*BB&T ——Peers
Slide 13: Interest Rate Sensitivity
Interest Rate Sensitivity Economic Value of Equity Sensitivity Report as of December 31, 2008
Slide 14: Interest Rate Risk Strategy
Policy Limit is + / - 30% Interest Rate Sensitivity Interest Rate Risk Strategy Net Interest Income represents approximately 60% of total revenues Produce a stable net interest margin (3.60% area for the full year) Tools used to achieve results include derivatives, investment portfolio and pricing a
Slide 15: Capital ratios
*Including trade date accounting balances, this ratio would be 5.3% .
Slide 16: Industry Leading Capital Generation
Capital Industry Leading Capital Generation Cash Basis Return on Tangible Common Equity
Slide 17: Capital Management; Investing for Growth
Capital Capital Management Strategies Provide adequate capital in relation to BB&T’s overall risk profile Preserve a sufficient base to support future growth Provide a competitive return to shareholders Comply with regulatory standards Achieve optimal credit ratings Investing for the Future Investin
Slide 18: Highlights: Acquisition Investments
Highlights •Opening de novo branches (106 from 2006 through 2009) •Purchasing land for future branch consolidation •Upgrading data and voice network – IT Transformation project •Expanded 2 mission critical operations centers’ capacity and upgraded redundancy •Moved into signature building in Atlanta
Slide 19: VOD
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