Truist Financial Corporation · NYSE:TFC
Truist Financial — BB&T — Barclays Global Financial Services Conference 2019
31 slides from Truist Financial's conference presentation, Sep 10, 2019
Slide 1: Barclays Global Financial Services Conference
Barclays Global Financial Services Conference Kelly S. King, Chief Executive Officer September 10, 2019 Exhibit 99.1
Slide 2: Forward-Looking / Non-GAAP Statements
Forward-Looking / Non-GAAP Statements Cautionary Note Regarding Forward-Looking Statements This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and
Slide 3: Additional Statements
Additional Statements Additional Information about the Merger and Where to Find It In connection with the proposed merger with SunTrust, BB&T has filed with the SEC a registration statement on Form S-4 to register the shares of BB&T’s capital stock to be issued in connection with the merger, as amen
Slide 4: Strong Performance and Compelling Opportunity
Strong Performance and Compelling Opportunity Leading fee income diversification Insurance brokerage not affected by rate environment $ Strong broad-based loan growth Low risk balance sheet Third consecutive year of relatively flat core expenses Highly synergistic; financially compelling; transforma
Slide 5: Strong Core Loan Growth
5 Strong Core Loan Growth Completed $4 billion mortgage loan sale in 3Q19 Strong core loan performance Mortgage lending (excluding loan sale) Mortgage warehouse lending Sheffield retail Equipment finance loans and leases Insurance Premium Finance Consumer indirect Loan spreads relatively stable Aver
Slide 6: Leading Fee Income Ratio Provides Diversification
Leading Fee Income Ratio Provides Diversification Data as of YTD 06/30/2019 Source: S&P Global and company reports Peers include BAC, CFG, COF, FITB, HBAN, KEY, MTB, PNC, RF, STI, USB and WFC Fee Income Ratio Relative to Peers Revenue Mix
Slide 7: BB&T Insurance Holdings: A Key Differentiator
BB&T Insurance Holdings A Key Differentiator Founded in 1922 * 5th largest Insurance Broker in the U.S. * 2nd largest insurance wholesaler in U.S. * 2nd largest P&C wholesaler in U.S. * Largest life insurance wholesaler in U.S. Rankings based on 2018 revenue $27B Annual Premiums ~$2.0B Annual Revenu
Slide 8: Stress Results Illustrate Risk / Return Advantage of Combination
Stress Results Illustrate Risk / Return Advantage of Combination Peers: BAC, CFG, COF, FITB, HBAN, KEY, MTB, PNC, RF, STI, USB and WFC Source: S&P Global, Dodd-Frank Act Stress Test 2018: Supervisory Stress Test Methodology and Results BB&T Risk / Return Positioning vs Peers (2018 DFAST) Average Ret
Slide 9: Relatively Flat Expenses Drive Strong Efficiency Ratio
Relatively Flat Expenses Drive Strong Efficiency Ratio Disciplined expense management Effective execution of Disrupt to Thrive initiatives Optimized the branch network / branch closures FTE reductions Organizational simplification Optimized non-branch facilities Digital / automation initiatives Sour
Slide 10: 3Q19 and Full-year 2019 Outlook
3Q19 and Full-year 2019 Outlook Category 3Q19 Average total loans held for investment Down 4% - 6% annualized vs. 2Q19 (ex mortgage sale: Up 4% - 6% annualized vs. 2Q19) Credit quality NCOs expected to be 35 - 45 bps Net interest margin GAAP and Core NIM down 4 - 8 bps vs. 2Q19 (ex mortgage sale: GA
Slide 11: Change in Interest Rates Since the Merger Announcement
Change in Interest Rates Since the Merger Announcement Treasury curve re-priced lower with current 2Y to 30Y rates (left chart, blue line) 95-117bps lower compared to February (red), as investors weigh slowing economy and central bank easing Source: Bloomberg As of 08/31/2019 Treasury Curve
Slide 12: The World Has Changed
The World Has ……Changed
Slide 13: The Definition of Value Has Changed
The Definition of Value Has Changed .. Q P f (T3) V = Touch Technology Trust = ×
Slide 14: Truist – The Optimal Foundation
Truist – The Optimal Foundation Helping our CLIENTS achieve economic success and financial security Creating a place where our ASSOCIATES can learn, grow and be fulfilled in their work Making the COMMUNITIES in which we work better places to be; and thereby: Optimizing the long-term return to our SH
Slide 15: Truist Will Be a Top U.S. Bank
Truist Will Be a Top U.S. Bank Market Value ($BN) Assets ($BN) Loans ($BN) Deposits ($BN) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 1. 2. 3. 4. 5. 7. 8. 9. 10. Market Data as of 07/24/2019 Note: Excludes trust banks and investment banks JPMorgan Cha
Slide 16: Truist's Attractive Southeast Footprint
Truist has a #2 Weighted Average Deposit Rank in its top 20 MSAs Truist’s Attractive Southeast Footprint Note: Branch and deposit data as of 6/30/18 FDIC summary of deposits, pro forma for M&A through 1/31/19 Source: S&P Global
Slide 17: Strongest Presence in High Growth Markets
Strongest Presence in High Growth Markets 1 Per respective county footprint. 2 County-weighted footprint.
Slide 18: A Powerful Combination
A Powerful Combination Efficiency Ratio(2) # of Households (MM) Leading Market Position Across Diverse Set of Businesses Market Value ($BN) Assets ($BN) Loans ($BN) Deposits ($BN) ROATCE Combined Company #2 weighted average deposit rank in Top 20 MSAs #1 regional bank-owned investment bank #2 region
Slide 19: Individually, Strong; Together, Best
Individually, Strong; Together, Best Tangible Efficiency Ratio (FTE) Cash Return on Average Tangible Common Equity BB&T / SunTrust illustrative combined includes $1.6 billion net pre-tax cost savings. See Appendix for illustrative combined and non-GAAP reconciliations. Note: Data for the 12 months e
Slide 20: Building the Premier Financial Institution
Building the Premier Financial Institution Announced new name and headquarters location Completed House Committee meeting Received shareholder approval Announced industry-leading benefits (including 401k and pension) and time-off programs Announced more than 75% of Truist management Announced $60B c
Slide 21: Clear Objectives for the First 100 Days
Laser focus on risk management and completing conversion tasks Achie e Begin achieving cost savings Realize revenue synergies from low-hanging fruit Realize Clear Objectives for the First 100 Days Focus Delight Relentlessly pursue a differentiated, client-centric experience Inspire our teammates and
Slide 22: Cultural Alignment Matters
Cultural Alignment Matters BB&T SunTrust Truist Strong Cultures Shaped by Proud Histories Culturally Aligned? Honesty, integrity, trust and caring Focused on mission / purpose (embodying our “Why” in everything we do) Collaboration and a united team mentality Clients are a top priority (holistic sol
Slide 23: Culture Survey: Engaging Our Teammates Along the Way
Culture Survey: Engaging Our Teammates Along the Way Structured Flexible Cautious Risk-permitting Planning Doing Diplomatic Direct Individualistic Collaborative Internal External “How would you describe your current culture” BB&T Overall SunTrust Overall
Slide 24: Our Opportunity
Our Opportunity Inspired by “best of breed” approach in technology, talent and processes Growth dynamics and distinctive diversification that exceed our legacy companies Industry leading profitability and efficiency over time Driving a sustainable competitive advantage
Slide 25: Truist will be the most competitive, innovative and relevant financial institution
Truist will be the most competitive, innovative and relevant financial institution because our innovation and technology will reflect what our clients want and redefine the financial experience. Truist will be focused on the relentless pursuit of a differentiated, client-centric experience, leveragi
Slide 26: Appendix
Appendix
Slide 27: BB&T Non-GAAP Reconciliations – Efficiency Ratio
BB&T Non-GAAP Reconciliations – Efficiency Ratio Revenue is defined as net interest income plus noninterest income The adjusted efficiency ratio is non-GAAP in that it excludes securities gains (losses), amortization of intangible assets, merger-related and restructuring charges and other selected i
Slide 28: Combined Deposits by MSA
Combined Deposits by MSA ($MM) Note: Branch and deposit data as of 6/30/18 FDIC summary of deposits, pro forma for M&A through 1/31/19 Source: S&P Global
Slide 29: Illustrative Combined Market Value
Illustrative Combined Market Value (1): As of 12/31/18
Slide 30: Adjusted Tangible Efficiency Ratio
Adjusted Tangible Efficiency Ratio (1): Adjusted noninterest expense and adjusted tangible efficiency ratio is provided as it removes certain items that are material and potentially non-recurring. Adjusted figures are intended to provide management and investors information on trends that are more c
Slide 31: Illustrative Combined 2018 Efficiency Ratio / Return on Average Tangible Common Equity
Illustrative Combined 2018 Efficiency Ratio / Return on Average Tangible Common Equity Illustrative Combined Tangible Efficiency Ratio (FTE) (12 mos. Ended 12/31/18) Illustrative Combined Cash ROATCE (12 mos. Ended 12/31/18) Revenue (FTE) ($BN) BB&T $11.7 SunTrust 9.3 Illustrative Combined $21.0 Adj
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