Truist Financial Corporation · NYSE:TFC
Truist Financial — BB&T — Barclays Global Financial Services Conference 2017
32 slides from Truist Financial's conference presentation, Sep 12, 2017
Slide 1: Barclays Global Financial Services Conference
Barclays Global Financial Services Conference Kelly S. King, Chief Executive Officer September 12, 2017
Slide 2: Forward-Looking Information
Forward-Looking Information This presentation 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 the future performance of BB&T. Forward-looking statements are
Slide 3: Our Mission
3 To make the world a better place to live by: 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 l
Slide 4: Agenda
Agenda Diversification drives revenue and productivity Above average risk-adjusted returns ▪ Long-term performance advantages ▪ Reconceptualizing our business ▪ Enhancing our digital platform ▪ Committed to the Perfect Client Experience ▪ Making the world a better place to live 4
Slide 5: BB&T Corporation: A Growing Franchise
State # of Branches Deposits1 ($bn) Deposit Rank1 North Carolina2 351 $28.7 Virginia 344 22.6 Florida 318 17.5 Pennsylvania 259 14.8 Georgia 155 12.4 Maryland 165 10.1 South Carolina 110 7.9 Kentucky 108 6.3 Texas 122 5.8 West Virginia 73 5.0 Alabama 84 4.0 New Jersey 33 2.5 Tennessee 48 2.4 Distric
Slide 6: Diversification Drives Revenue and Productivity
Community Banking 49% Residential Mortgage Banking 7% Dealer Financial Services 7% Specialized Lending 6% Financial Services 14% Insurance Holdings 17% Revenue Diversification by Segment1 PPNR 10-year average 2007-20162 2.0% 1.7% 1.6% Superior Performance… Diversification Drives Revenue and Producti
Slide 7: Premier Model for Community Banking
Premier Model for Community Banking… 26 Banking Regions Local decision-making Centralized support system Foundation for our relationship management culture model … and Diverse Non-Bank Businesses 7
Slide 8: Better Profitability with Less Risk
Better Profitability with Less Risk Peers include CFG, CMA, FITB, HBAN, KEY, MTB, PNC, RF, STI, USB, WFC and ZION Source Morgan Stanley Research and SNL Financial; data as of 06/30/2017 BB&T operates with a combination of strong profitability levels and asset quality – Risk vs. return positioning
Slide 9: Long-term Performance Advantage: Net Interest Margin
Long-term Performance Advantage 3.52% 3.58% 3.66% 4.03% 4.06% 3.91% 3.68% 3.42% 3.32% 3.39% 3.47% 3.55% 3.37% 3.28% 3.54% 3.49% 3.43% 3.28% 3.09% 2.95% 2.98% 3.10% 2.50% 3.00% 3.50% 4.00% 4.50% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H17 BBT Peers Net Interest Margin Reflects fully taxabl
Slide 10: Long-term Performance Advantage: Efficiency Ratio
Long-term Performance Advantage 51.6% 50.9% 50.4% 53.9% 55.2% 54.3% 58.5% 57.7% 58.9% 59.2% 58.3% 56.4% 60.2% 59.0% 61.1% 62.8% 62.9% 62.8% 63.1% 62.5% 61.6% 60.5% 45.0% 50.0% 55.0% 60.0% 65.0% 70.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H17 BBT Peers Efficiency Ratio Beginning in 2016,
Slide 11: Long-term Performance Advantage: Return on Tangible Common Equity
27.14% 20.21% 8.10% 8.74% 12.60%18.19% -1.05% -10.81% 4.04% 9.82% 17.39% 13.61% 14.79% 13.34% 14.59% 12.85% 12.68% 11.62% 11.53% 11.07% 10.97% 12.37% 8.00% 11.00% 14.00% 17.00% 20.00% -15.00% -5.00% 5.00% 15.00% 25.00% 35.00% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H17 BBT Peers Long-term
Slide 12: Among Leaders in Key Performance Measures – 2Q17
Among Leaders in Key Performance Measures – 2Q17 1 Total loans includes owned real estate and foreclosed property 2 Reflects fully taxable-equivalent As of quarter ended 06/30/2017 Peers include CFG, CMA, FITB, HBAN, KEY, MTB, PNC, RF, STI, USB, WFC and ZION ROTCE excludes PNC Source: SNL Financial
Slide 13: Among Leaders in Dividend Yield and Payout
Among Leaders in Dividend Yield and Payout 3.15% 3.06% 3.00% 2.71% 2.60% 2.55% 2.47% 2.40% 2.29% 2.19% 2.08% 1.85% 1.15% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% Peer 1 Peer 2 BBT Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Dividend Yield As of 09/08/2017 stock pr
Slide 14: Significantly Improved Deposit Mix
Significantly Improved Deposit Mix Peers include CFG, CMA, FITB, HBAN, KEY, MTB, PNC, RF, STI, USB, WFC and ZION Source: SNL Financial; data as of 06/30/2017 ▪ Continued focus on DDA growth has moved BB&T up to peer average levels ▪ BB&T’s total cost of deposits benefits from this trend 10% 20% 30%
Slide 15: Deposit Betas Remain Well-Controlled
Deposit Betas Remain Well-Controlled Peers include CFG, CMA, FITB, HBAN, KEY, MTB, PNC, RF, STI, USB, WFC and ZION Source: SNL Financial; data as of 06/30/2017 ▪ BB&T’s beta is lower and more stable over the Fed rate-hike cycle ▪ BB&T has experienced modest rate increases in the corporate deposits s
Slide 16: 2Q17 and 3Q17 Loan Growth Trends
99% 100% 101% 102% 103% 3 / 2 9 4 / 5 4 / 1 2 4 / 1 9 4 / 2 6 5 / 3 5 / 1 0 5 / 1 7 5 / 2 4 5 / 3 1 6 / 7 6 / 1 4 6 / 2 1 6 / 2 8 7 / 5 7 / 1 2 7 / 1 9 7 / 2 6 8 / 2 8 / 9 8 / 1 6 8 / 2 3 2Q17 3Q17 to-date 2Q17 and 3Q17 Loan Growth Trends ▪ Total loan and lease growth, measured using Fed H.8 data, s
Slide 17: 3Q17 Outlook
3Q17 Outlook 1 Taxable-equivalent 2 Excludes merger-related and restructuring charges Category Guidance Loans Total slightly down vs. 2Q17 Core up 2% – 4% annualized vs. 2Q17 Credit quality NCOs expected to be 35 – 45 bps NPAs expected to be in a similar range vs. 2Q17 Net interest margin
Slide 18: Reconceptualizing Our Business
Reconceptualizing Our Business ▪ 5 focus areas for 2017 – Accelerate loan growth in the Community Bank as Main Street improves; improve efficiency of branch network • Expect to close approximately 140 branches in 2017 – Accelerate Corporate Banking loan growth – Accelerate growth in our Wealth busin
Slide 19: 2017 Digital Focus
2017 Digital Focus 19 FinTech Incubation & Acceleration Spring 2017 - 12 startups - 31 BB&T advisors Fall 2017 - 5 startups - 3 BB&T advisors Collaborative effort between local business and banks APIs Chatbots Digital Signature Digital Factory New Technologies & Emerging Business Models Innova
Slide 20: BB&T launches new brand campaign
BB&T launches new brand campaign Brand campaign scheduled to launch September 18th Incorporates significant research with clients and prospects, consumer and business Captures their feedback, reflects BB&T’s culture Airing in key markets throughout footprint Training and related efforts to
Slide 21: Slide 21
Slide 22: Industry Leading Recognition
BB&T has been ranked the top American bank, in The Barron’s 500, at No. 103 BB&T has been named one of the 2017 Best Banks in America by Forbes Industry Leading Recognition BB&T was named on the FORTUNE “World’s Most Admired Companies®” list in the superregional bank category in 2017 BB&T received 1
Slide 23: Corporate Social Responsibility
Corporate Social Responsibility
Slide 24: Committed To Our Communities – Lighthouse Project
Committed To Our Communities – Lighthouse Project The BB&T Lighthouse Project provides associates with an opportunity to make a difference in their communities through company supported and funded service projects. The purpose of the Lighthouse Project is to be involved in positive change. It’s
Slide 25: The BB&T Leadership Institute
The BB&T Leadership Institute The BB&T Leadership Institute provides organizations with a leadership development partner that helps create dynamic and effective leaders, increase employee retention and improve the bottom line. Beginning with each client's specific goals and challenges, the institute
Slide 26: All we see is you
All we see is you
Slide 27: Appendix
Appendix
Slide 28: Non-GAAP reconciliations: Efficiency Ratio
Non-GAAP reconciliations Period Ended Efficiency Ratio 1H17 2016 2015 2014 Efficiency ratio – GAAP 68.2 % 62.3 % 64.2 % 62.4 % Effect of taxable-equivalent adjustment (0.9) (0.9) - - Effect of securities gains (losses), net - 0.3 - - Effect of merger-related and restructuring charges, net (0.8) (1.6
Slide 29: Non-GAAP reconciliations: Efficiency Ratio
Non-GAAP reconciliations Period Ended Efficiency Ratio 2013 2012 2011 2010 Efficiency ratio – GAAP 60.2 % 59.3 % 66.2 % 60.2 % Effect of securities gains (losses), net 0.3 (0.1) 0.4 3.3 Effect of merger-related and restructuring charges, net (0.5) (0.7) (0.2) (0.7) Effect of contingency reserve - -
Slide 30: Non-GAAP reconciliations: Efficiency Ratio
Non-GAAP reconciliations Period Ended Efficiency Ratio 2009 2008 2007 Efficiency ratio – GAAP 55.4 % 52.0 % 53.7 % Effect of securities gains (losses), net 1.2 0.7 - Effect of merger-related and restructuring charges, net (0.4) (0.2) (0.3) Effect of contingency reserve (0.3) - - Effect of FDIC speci
Slide 31: Non-GAAP reconciliations: Return on Tangible Common Equity
Non-GAAP reconciliations Return on Tangible Common Equity 1H17 2016 2015 2014 2013 2012 Return on Common Equity 7.53 % 8.57 % 8.34 % 9.40 % 8.06 % 10.35 % Effect of intangible assets and their amortization 5.32 6.02 5.00 5.39 5.55 7.04 Effect of loss on early extinguishment of debt 2.76 - - - - - Re
Slide 32: Non-GAAP reconciliations: Return on Tangible Common Equity
Non-GAAP reconciliations Return on Tangible Common Equity 2011 2010 2009 2008 2007 Return on Common Equity 7.49 % 4.85 % 4.93 % 11.44 % 14.25 % Effect of intangible assets and their amortization 5.11 3.89 3.17 8.77 12.89 Return on Tangible Common Equity 12.60 % 8.74 % 8.10 % 20.21 % 27.14 % Period E
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