SunTrust 2004 Annual Report Download - page 65

MANAGEMENT’S DISCUSSION continued
SUNTRUST 2004 ANNUAL REPORT 63
On November 12, 1999, financial modernization legislation known
as the Gramm-Leach-Bliley Act (the Act) was signed into law. Under
the Act, a bank holding company which elects to become a financial
holding company may engage in expanded securities activities,
insurance sales, and underwriting activities, and other financial
activities, and may also acquire securities firms and insurance com-
panies, subject in each case to certain conditions.The Company has
elected to become a financial holding company under the Act.
In addition to the Act, there have been a number of legislative and
regulatory proposals that would have an impact on the operation of
bank/financial holding companies and their bank and nonbank sub-
sidiaries. It is impossible to predict whether or in what form these
proposals may be adopted in the future and, if adopted, what their
effect will be on the Company.
A WARNING ABOUT FORWARD-LOOKING
INFORMATION
This Annual Report contains forward-looking statements. The
Company may also make written forward-looking statements in
periodic reports to the Securities and Exchange Commission, proxy
statements, offering circulars and prospectuses, press releases, and
other written materials and oral statements made by SunTrust’s
officers, directors, or employees to third parties. Statements that
are not historical facts, including statements about the Company’s
beliefs and expectations, are forward-looking statements.These
statements are based on beliefs and assumptions of SunTrust’s
management, and on information currently available to such man-
agement.The forward-looking statements are intended to be sub-
ject to the safe harbor protection provided by Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward-looking statements include statements pre-
ceded by, followed by, or that include the words “believes,”
“expects,”“anticipates,”“plans,”“estimates,” or similar expressions
or future conditional verbs such as “will,” “should,” “would,” and
“could.” Forward-looking statements speak only as of the date they
are made, and the Company undertakes no obligation to update
publicly any of them in light of new information or future events.
Forward-looking statements involve inherent risks and uncertain-
ties. Management cautions the readers that a number of important
factors could cause actual results to differ materially from those
contained in any forward-looking statement. Such factors include,
but are not limited to, the following:
• competitive pressures among local, regional and international
banks, thrifts, credit unions and other nonbank financial institu-
tions may increase significantly
• changes in the interest rate environment may reduce margins and
impact funding sources
• general economic or business conditions in the geographic
regions and industries in which SunTrust operates as well as the
risk of domestic or international military or terrorist activities or
conflicts, may lead to a deterioration in credit quality or a reduced
demand for credit
• legislative or regulatory changes, including changes in accounting
standards, may adversely affect the business in which SunTrust is
engaged
• various monetary and fiscal policies and regulations, including
those determined by the Federal Reserve Board, the Federal
Deposit Insurance Corporation and state regulators
• changes may occur in the securities markets
• competitors of SunTrust may have greater financial resources and
develop products that enable such competitors to compete more
successfully than SunTrust
Other factors that may cause actual results to differ from the for-
ward-looking statements include the following:
• the timely development of competitive new products and serv-
ices by the Company and the acceptance of such products and
services by customers
• changes in consumer spending and saving habits
• the effects of competitors’ pricing policies
• the Company’s success in managing the costs associated with the
expansion of existing distribution channels and developing
new ones, and in realizing increased revenues from such distribu-
tion channels, including cross-selling initiatives and electronic
commerce-based efforts
• the effect of corporate restructurings, mergers, acquisitions
and/or dispositions and their integration into the Company, the
actual restructuring and other charges related thereto and man-
agement’s ability to manage these and other risks, including
achieving the expected revenue growth and/or expense savings
from such corporate restructurings, mergers, acquisitions, and/
or dispositions
Management of SunTrust believes these forward-looking state-
ments are reasonable; however,undue reliance should not be placed
on such forward-looking statements, which are based on current
expectations. SunTrust cautions that the foregoing list of important
factors is not inclusive.
Forward-looking statements are not guarantees of performance.
They involve risks, uncertainties and assumptions.The future results
and shareholder values of SunTrust may differ materially from those
expressed in the forward-looking statements contained in this
annual report. Many of the factors that will determine these results
and values are beyond SunTrust’s ability to control or predict.