SunTrust 2003 Annual Report Download - page 20

18 SunTrust Banks, Inc. Annual Report 2003
MANAGEMENT’S DISCUSSION continued
CORPORATE AND INVESTMENT BANKING
Corporate and Investment Banking (CIB) is comprised of the fol-
lowing businesses: corporate banking, investment banking,
capital markets businesses, commercial leasing, receivables capi-
tal management and merchant banking. The corporate banking
strategy is focused on companies with sales in excess of $250
million and is organized along industry specialty and geographic
lines, providing a full array of traditional bank services, capital
markets capabilities, and investment banking. The investment
banking strategy is focused on small and mid cap growth compa-
nies and is organized along industry specialty lines, raising public
and private equity and providing merger and acquisition advisory
services. The debt and equity capital markets businesses support
both the corporate banking and investment banking relationships
as well as the smaller commercial clients who are covered by our
Commercial line of business and wealthy individuals who are
served by our PCS line of business. Through its wholly-owned
subsidiary, SunTrust Leasing Corp., the Company provides equip-
ment financing to various corporate customers. Receivables
capital management provides traditional factoring services as
well as other value added receivables management services.
MORTGAGE
The Mortgage line of business offers residential mortgage products
nationally through its retail, broker and correspondent channels.
These products are held in the Company’s residential loan portfolio
or are securitized and sold in the secondary market with servicing
rights retained. This line of business services loans for its own resi-
dential mortgage portfolio as well as for others.
PRIVATE CLIENT SERVICES
Private Client Services (PCS) provides a full array of wealth man-
agement products and professional services to both individual and
institutional clients. PCS’ primary segments include brokerage,
individual wealth management, and institutional investment man-
agement and administration. SunTrust Securities, Inc. operates
across the Company’s footprint and offers discount/online and full
service brokerage services to individual clients. Alexander Key
offers full service brokerage services to affluent and wealthy clients
who generally do not have a pre-existing relationship with the
Company. Alexander Key is currently located in Atlanta, Nashville,
Washington D.C., Jacksonville, Orlando, and Richmond with
plans to expand into additional high opportunity markets. PCS
also offers professional investment management and trust services
to clients seeking active management of their financial resources.
The ultra high net worth segment of these clients is serviced by
AMA. AMA provides “family office” services to high net worth
clients. Acting in this capacity, AMA investment professionals uti-
lize sophisticated financial products and wealth management tools
to provide a holistic approach to multi-generational wealth man-
agement. AMA is currently located in Atlanta, Orlando, West Palm
Beach, Washington D.C., Charlotte, and Greenwich, Connecticut.
Institutional investment management and administration is com-
prised of Trusco Capital Management, Inc. (Trusco), Retirement
Services, Endowment & Foundation Services, Corporate Trust, and
Stock Transfer. Retirement Services provides administration and
custody services for 401(k) and employee defined benefit plans.
Endowment & Foundation Services provides administration and
custody services to non-profit organizations, including govern-
ment agencies, colleges and universities, community charities and
foundations, and hospitals. Corporate Trust targets issuers of tax-
exempt and corporate debt and asset-based securities, as well as
corporations and attorneys requiring escrow and custodial serv-
ices. Trusco is a registered investment advisor that acts as the
investment manager for PCS’ clients and the STI Classic Funds.
CORPORATE/OTHER
Corporate/Other (Other) includes the investment securities port-
folio, long-term debt, capital, short-term liquidity and funding
activities, balance sheet risk management including derivative
hedging activities, office premises and certain support activities
not currently allocated to the aforementioned lines of business.
The major components of the Other line of business include
Enterprise Information Services, which is the primary data pro-
cessing and operations group; the Corporate Real Estate group,
which manages the Company’s facilities; marketing, which
handles advertising, product management and customer infor-
mation functions; SunTrust Online, which handles customer
phone inquiries and phone sales and manages the Internet
banking function; human resources, which includes the recruit-
ing, training and employee benefit administration functions;
finance, which includes accounting, budgeting, planning, tax
and treasury. Other functions included in the Other line of busi-
ness are credit risk management, credit review, audit, internal
control, legal and compliance, branch operations, corporate
strategies development and the executive management group.
The Other line of business also contains certain expenses that
have not been allocated to the primary lines of business, elimi-
nations, and the residual offsets derived from matched-maturity
funds transfer pricing and provision for loan losses/credit risk
premium allocations.