Truist Financial Corporation · NYSE:TFC
Truist Financial — BB&T — Citi 2013 Financial Services Conference
30 slides from Truist Financial's conference presentation, Mar 5, 2013
Slide 1: Citi 2013 Financial Services Conference
Best Bank In Town 207 A Since 1872 } citi 2013 Financial Services Conference Kelly S. King Chairman and Chief Executive Officer | March 5, 2013
Slide 2: Non-GAAP Information
Non - GAAP Information This presentation contains financial information and performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”) . BB&T’s management uses these “non - GAAP” measures in their analysi
Slide 3: BB&T is…
BB&T is… » A values - driven highly profitable growth organization. While we have had a very successful merger history, our primary focus is on organic growth; nonetheless, we are well positioned for strategic opportunities. » Our fundamental strategy is to deliver the best value proposition in our
Slide 4: Branch footprint and deposits by state
1 Excludes home office deposits. 2 Number of branches per state as of December 31, 2012. 3 Deposit Market Share data as of June 30, 2012, state rank includes BankAtlantic. Source: FactSet , FDIC, SNL DataSource . State # of Branches 2 Deposits 3 State Rank Virginia 377 $ 21.5 bn North Carolina 1 366
Slide 5: Banking Regions
37 Banking Regions Local decision - making Centralized support system Foundation for our sales and service culture model Premier Model for Community Banking… … and Diverse Non - Bank Businesses 5
Slide 6: Value Proposition Drives Revenue Growth
Value Proposition Drives Revenue Growth Revenue Growth through the Cycle 2 2012 vs . 2007 31.8% 7.4% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% BB&T Peer Median 1 Based on segment revenues, excluding other, treasury and corporate for 4Q12 . 2 Adjusted for large acquisitions (BB&T/ Colonial/ Bank
Slide 7: Loan Growth Outlook
Loan Growth Outlook $105.8 $107.5 $109.2 $112.7 $113.6 $100 $105 $110 $115 4Q11 1Q12 2Q12 3Q12 4Q12 Average Loans Held for Investment ($ in billions) » Loan growth outlook for first quarter has slowed » Commercial growth affected by: □ Lower mortgage warehouse lending » Covered portfolio paying fast
Slide 8: Improved Deposit Mix and Cost
Improved Deposit Mix and Cost » Deposit growth remains strong, but slowing from prior year » We are experiencing 1Q13 seasonality » Deposit costs continue to decline » Making progress on deposit mix improvement $121.9 $124.6 $125.3 $128.7 $131.8 0.56% 0.49% 0.44% 0.42% 0.38% 0.20% 0.30% 0.40% 0.50%
Slide 9: Commercially Focused Texas Expansion
Commercially Focused Texas Expansion 9 Market 2012 Branches 2013 De Novo Branches Total Branches Dallas/FW 23 11 34 Houston 1 11 12 Austin 5 4 9 San Antonio 1 4 5 Totals 30 30 60 Capital Investment $36 million Associate Investment (Year 1) 150+ FTEs IRR 28+% Projected Loans (Year 5) $2.1 billion Pro
Slide 10: Capital Markets Corporate Banking
Capital Markets Corporate Banking 10 » Have doubled staff since 2009 in Capital Markets Corporate Banking □ Focused initially on core and contiguous markets and specialized industries » In 2012, began expanding in new markets and new industries □ Developed national corporate banking LPO coverage mod
Slide 11: Wealth Businesses – New Market Emphasis
Wealth Businesses – New Market Emphasis 2013 Revenue Emphasis » Wealth relationships are material drivers for loans, deposits, insurance and investments » Florida and Texas have 7 of the top 10 metro areas in the BB&T footprint for small/medium commercial revenue (corresponds to important wealth mar
Slide 12: Insurance Opportunities
Insurance Opportunities $914 $1,034 $1,042 $1,047 $1,371 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 2008 2009 2010 2011 2012 Insurance Revenues ($ in millions) » 5 year compound annual growth rate in revenues 10.1% » Crump acquisition increased revenue approximately 30% » Industry leading cl
Slide 13: Superior Net Interest Margin
Superior Net Interest Margin 1 Excludes $67 million charge related to leveraged lease settlement. 2 Peers include CMA, FITB, HBAN, KEY, MTB, PNC, RF, STI, USB, and ZION. Source: SNL and Company Reports. 3.52% 3.63% 1 3.66% 4.03% 4.06% 3.91% 3.47% 3.31% 3.40% 3.51% 3.51% 3.45% 3.15% 3.40% 3.65% 3.90%
Slide 14: Fee Income Growth
Fee Income Growth 38.4% 41.0% 42.4% 42.4% 44.1% 36.3% 37.9% 37.2% 37.7% 39.2% 30.0% 40.0% 50.0% 4Q11 1Q12 2Q12 3Q12 4Q12 Fee Income Ratio 1 BB&T Peers 2 1 Excludes securities gains (losses), the impact of FDIC loss share accounting and other selected items. See non - GAAP Reconciliat ions included i
Slide 15: Noninterest Expenses and Efficiency
Noninterest Expenses and Efficiency 1 1 Excludes securities gains (losses), foreclosed property expense, amortization of intangible assets, merger - related and restructu ring charges, the impact of FDIC loss share accounting, and other selected items. See non - GAAP Reconciliations included in the
Slide 16: Capital Strength
Capital Strength 1 1 Risk - weighted assets are determined based on regulatory capital requirements. Under the regulatory framework for determining risk - weighted as sets each asset class is assigned a risk - weighting of 0%, 20%, 50% or 100% based on the underlying risk of the specific asset class
Slide 17: Consistent Long-Term Earnings Power
Consistent Long - Term Earnings Power $653 $826 $1,024 $1,086 $1,586 $1,544 $1,888 $2,672 $2,790 $2,892 $3,120 $3,579 $4,123 $3,935 $3,705 $4,276 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Pre - Tax
Slide 18: Industry Leading Client Satisfaction
Industry Leading Client Satisfaction * From Maritz Research 2012 Retail Client Satisfaction and Loyalty Survey, represent percentage of “top box” scores, indicat ing a 9 or 10 rating on a 10 - point scale. Peers include Bank of America, PNC/RBC , Regions, SunTrust and Wells Fargo **Greenwich Associa
Slide 19: Values
HAPPINESS ‘SELF-ESTEEM PRIDE SUCCESS PRODUCTIVITY ‘TEAMWORK/MUTUAL SUPPORTIVENESS justice JUDGMENT REALITY REASON INDEPENDENT THINKING CHARACTER HONESTY INTEGRITY
Slide 20: Best Bank In Town
Best Bank In Town BB&I Since 1872
Slide 21: Appendix
Appendix
Slide 22: Non-GAAP Capital Measures
Non - GAAP Capital Measures (Dollars in millions, except per share data) As of / Quarter Ended Dec 31 2012 Dec 31 2011 Selected Capital Information Risk - based capital Tier 1 $ 14,373 $ 14,913 Total 18,204 18,862 Risk - weighted assets 1 131,096 124,507 Average quarterly tangible assets 175,015 165
Slide 23: Non-GAAP Capital Measures
Non - GAAP Capital Measures (Dollars in millions, except per share data) As of / Quarter Ended Dec 31 2012 Dec 31 2011 Calculations of Tier 1 common equity and tangible assets and related measures: Tier 1 equity $ 14,373 $ 14,913 Less: Qualifying restricted core capital elements 2,116 3,250 Tier 1 c
Slide 24: Non-GAAP Capital Measures: Basel III
Non - GAAP Capital Measures 1 1 The Basel III calculations are non - GAAP measures and reflect adjustments for the related elements as proposed by regulatory auth orities, which are subject to change. BB&T management uses these measures to assess the quality of capital and believes that investors ma
Slide 25: Non-GAAP Reconciliations
Non - GAAP Reconciliations Applicable ratios are annualized. 1 Excludes mortgage loans guaranteed by GNMA that BB&T does not have the obligation to repurchase. 2 Excludes mortgage loans guaranteed by the government. As of / Quarter Ended Dec 31 2012 Sept 30 2012 June 30 2012 March 31 2012 Dec 31 201
Slide 26: Non-GAAP Reconciliations
Non - GAAP Reconciliations Applicable ratios are annualized. 1 Excludes mortgage loans guaranteed by GNMA that BB&T does not have the obligation to repurchase. 2 Excludes mortgage loans guaranteed by the government. 3 These asset quality ratios have been adjusted to remove the impact of covered loan
Slide 27: Non-GAAP Reconciliations: Efficiency and Fee Income Ratios
Non - GAAP Reconciliations Quarter Ended Efficiency and Fee Income Ratios 1 Dec 31 2012 Sept 30 2012 June 30 2012 March 31 2012 Dec 31 2011 Efficiency ratio – GAAP 58.8 % 61.6 % 57.9 % 59.0 % 67.1 % Effect of securities gains (losses), net - - - (0.2) 2.4 Effect of merger - related and restructuring
Slide 28: Non-GAAP Reconciliations: Return on Tangible Equity
Non - GAAP Reconciliations 1 BB&T’s management believes investors use this measure to evaluate the return on average common shareholders’ equity without t he impact of intangible assets and their related amortization. (Dollars in millions) Quarter Ended Dec 31 Sept 30 June 30 March 31 Dec 31 Return
Slide 29: Non-GAAP Reconciliations: Net Interest Margin
Non - GAAP Reconciliations Quarter Ended Reported net interest margin vs. core net interest margin 1 Dec 31 2012 Sept 30 2012 June 30 2012 March 31 2012 Dec 31 2011 Reported net interest margin - GAAP 3.84 % 3.94 % 3.95 % 3.93 % 4.02 % Adjustments to net interest income for Colonial assets: Effect o
Slide 30: Best Bank In Town
BBS&T Best Bank In Town Since 1872 30