SunTrust 2006 Annual Report Download - page 4

2SUNTRUST 2006 ANNUAL REPORT
BUSINESS HIGHLIGHTS
SunTrust operates five primary lines of business, each of which
displayed continuing momentum in 2006. Highlights include:
•In Retail Banking, in addition to enhancing our branch presence,
we upgraded our online banking capabilities for small business
clients and placed a high priority on deposit products. A series
of creative deposit-generation promotions featured partnerships
with other well-known brands such as Equifax and, in early
2007, AirTran Airways, to attract new clients and bring
added value to existing ones. The Retail line of business
also expanded its cross selling focus by partnering with the
Mortgage and Wealth and Investment Management lines of
business to implement enhanced referral programs.
•Growth within the Commercial Banking line of business further
validated the merits of our distinctive relationship management
strategy. To capitalize on this strategy and sustain revenue
growth, we expanded our sales force in key markets. Investing
in new sales and advisory tools in our core businesses yielded
accelerated cross-sales of capital markets, commercial
mortgage backed securities, and retirement plan products.
Stepped-up investment in our Treasury & Payments
Solutions unit enhanced our overall competitive position
and leadership in image-based technologies, resulting in an
improved client experience for our business clients as well
as higher sales volumes.
•The Mortgage line of business had another outstanding
year, characterized by continued expansion in this national
business line. We opened 65 new mortgage offices and
increased the sales force by more than 16 percent. Despite
reduced industry volume, origination volume at SunTrust set
a record in 2006, growing by more than 16 percent. We are
particularly proud that, in 2006, the well-respected J.D.
Power and Associates ranked SunTrust Mortgage “Highest in
Customer Satisfaction with Primary Mortgage Sales.” 1
Looking ahead, we launched a targeted efficiency initiative
called the “Mortgage Transformation Program.” With
complete implementation scheduled for 2007, the goal is
to ensure that our Mortgage line of business is configured
for consistent growth under different economic conditions
and housing market trends.
•In Corporate and Investment Banking, investments in
our capital markets product capabilities, capacity and
intellectual capital continued to bring value to our clients.
The Debt Capital Markets group, in particular, posted
meaningful growth in asset securitization, structured real
estate, derivatives, and primary bonds, as we delivered
solutions to our Corporate Banking, Commercial Banking,
Wealth and Investment Management and institutional
investor clients. Cross-selling capital markets products
to SunTrust’s Commercial Banking and Wealth and
Investment Management client bases remains a priority.
•In Wealth and Investment Management, we grew proven
competencies in Sports & Entertainment Banking, broadened
other specialties in the legal and medical industries and
focused new resources on the private business owner. In Private
Wealth Management, we established a framework to build out
our investment platform to offer greater customization of
solutions while working to enhance the client experience
and provide meaningful advice in a fast-changing investment
environment. Through the building of a streamlined
management organization, coupled with investment in
talent and platforms/solutions, our Institutional Investment
Management business continued to make a major contribution.
Reflecting the growth potential in this business, our ultra-
high-net-worth, multi-family arm, Asset Management
Advisors (AMA), experienced impressive growth in 2006.
AMA’s total assets under advisement of almost $10 billion
represent a 25 percent increase over last year.
For most individual clients, the focal point for delivery of SunTrust
products and services is our extensive geographic network, which
encompasses more than 1,700 branches and specialized banking
facilities and almost 2,600 ATMs throughout the high-growth
Southeast and Mid-Atlantic regions. This network is complemented
by an array of technology-based “24/7” banking channels including
our award-winning SunTrust Online telephone banking operation
and our increasingly popular internet banking site.
Regardless of delivery channel, our approach to serving clients is
institutionalized in a highly energized sales effort, which we call
“S3: Sell, Serve and Sustain.” It is coupled with a “Thinking 360°”
view of the client relationship, meaning that we look at client
needs across the full range of SunTrust product offerings. This
distinctive approach is reflected in high volume of cross-sales
across our lines of business. From a competitive standpoint,
1SunTrust Mortgage received the highest numerical score among mortgage lenders in
the proprietary J.D. Power and Associates 2006 Primary Mortgage Origination Study.
Study based on 4,115 total responses measuring 20 lenders and measures opinions of
consumers who originated a new mortgage in the past nine months. Proprietary
study results are based on experiences and perceptions of consumers surveyed in
September – November 2006. Your experiences may vary. Visit jdpower.com.