SunTrust 2005 Annual Report Download - page 17

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•In Wealth and Investment Management, we introduced a
new client management operating model in Private Wealth
Management and consolidated our brokerage and investment
units under one broker/dealer, SunTrust Investment Services, to
improve efficiency and build on our demonstrated competencies.
In the same vein, we streamlined administrative, recordkeeping
and investment capabilities for institutional customers. Asset
Management Advisors, SunTrust’s family office, added a location
in Tampa and, late in the year, announced several key executive
appointments to help position SunTrust for national leadership
in this high-potential business.
•In Mortgage Banking, underscoring our national reach in this
business line, we opened 51 new mortgage offices and increased
the size of the sales force by almost 24 percent, moves that will
allow us to grow market share and purchase-loan originations
faster than our peers. We are proud that in 2005, the well-
respected J.D. Power and Associates ranked SunTrust Mortgage
“Highest in Customer Satisfaction among Mortgage Servicing
Companies” and number two in overall customer satisfaction in
the 2005 primary mortgage origination study.
We intensified our focus on talent management, a structured
process that takes traditional succession planning to a higher level
by explicitly aligning talent development with business strategies.
Specifically, the capabilities of more than 5,600 key managers across
the Company have been assessed in the context of defined leadership
competencies, future potential and performance. The result is not
only “bench strength” for top positions throughout the organization
today, but meaningful development plans for an upcoming leader-
ship generation. More broadly, our disciplined approach to talent
management is reflected in an unusually high degree of success in
hiring, retaining, and rewarding strong candidates in all areas of our
organization — including the critical and evolving risk and compliance-
related fields.
Financial Highlights
A quick look at some key components of our 2005 earnings com-
pared with prior periods suggests the business line momentum that
contributed to the strong bottom line earnings growth we reported
last year. Since 2005 financial results reflect our acquisition of the
former NCF, we have estimated historical results in examples that
follow as if NCF and SunTrust results had been combined in the ear-
lier periods as well. This permits meaningful comparisons while also
providing a more accurate picture of our underlying earnings power.
•Loans – Loan growth was robust in most segments of the
portfolio — up 13% from 2004—and particularly strong in home
equity loans and mortgages. While the mortgage industry was
challenged by a drop-off in refinancing activity as a result of
rising interest rates, SunTrust grew mortgages over the prior
year end and achieved record production volume. We believe a
significant portion of this growth was achieved by taking market
share from our competitors, reflecting investments in new business
generation capacity. We also grew commercial and construction
lending. SunTrust ranks first or second in primary banking
relationships among “middle market” companies — those with
$5 million to $250 million in revenue — in 60 percent of our
geographic markets, which provides a platform for continued
growth in this key segment. Furthermore, larger corporate lend-
ing rebounded in 2005.
•Deposits –The benefit of our emphasis on sales and retention is
perhaps most evident in deposit growth, where we place a priority
on attracting and expanding relationship-based accounts that
can lead to the sales of additional products and services. Overall
average commercial and consumer deposit growth was up a
healthy seven percent over 2004. As interest rates rose during
the year, customer preference predictably shifted to higher-
paying deposit accounts such as money market and CD
products.
We moved to capitalize on this trend by launching several high-
ly successful targeted sales campaigns throughout 2005 that
significantly boosted CD and money market accounts. We also
benefit from non-traditional deposit sources: for example, new
deposit accounts booked by our SunTrust Online call centers
were up 61 percent in 2005. Initiatives such as our in-store
relationships and our continued focus on sales and retention will
set the tone for deposit generation efforts in 2006.
SUNTRUST 2005 ANNUAL REPORT 15
SALES FOCUS PAYS OFF
Growth in average loans and consumer and commercial deposits
reflects the positive impact of SunTrust’s focus on sales
and retention.