SunTrust 2007 Annual Report Download - page 4

SHAREHOLDER VALUE FOCUS
Our strategies, which we updated and then pursued with
renewed energy beginning in late 2006, are aimed at ensuring
that our nancial performance, over time, is commensurate
with our growth potential. The goal is to capitalize on
our unique institutional strengths and fully leverage the
opportunities afforded by our high-growth geographic
footprint, our strong competitive positions, and our well-
balanced business mix.
Our Board of Directors is unied in its support of our strategic
direction. Our management team is committed to its success.
And more than 32,000 talented, motivated employees work
hard every day to translate it into results. We are condent
that continued successful implementation of our strategy,
building on progress in key initiatives in 2007, will deliver
improved shareholder value in a more normalized operating
environment. For example:
• Through enhanced balance sheet management strategies,
we have reduced the holdings of lower-yielding loans and
securities on our books, and also cut back on higher-cost
wholesale deposits. These steps had a direct and positive
impact on 2007 net interest income with the prospect
of continued benets as we move ahead.
• We employed fresh strategies to more effectively manage
our capital resources to support future growth. Included
was the sale of a portion of our longtime stock holdings in
The Coca-Cola Company and a commitment to rationalize
our remaining holdings consistent with our capital
optimization goals. It is important to note that our
decisions in this area are based entirely on SunTrust capital
management considerations. The Coca-Cola Company,
clearly one of the world’s leading business enterprises,
remains a highly valued SunTrust business partner.
• Perhaps most visible from an employee perspective, we
moved decisively during 2007 to take productivity and
efficiency to new levels throughout the Company. The
centerpiece of this effort is a bold, structured program
called “E2 – Excellence in Execution.” Launched in January,
E2 encompasses a series of very specic initiatives designed
to signicantly reduce the growth in operating expenses
over a four-year period. Based on initial successes in
areas such as corporate-owned real estate and supplier
management, the E2 program was expanded and accelerated
in mid-2007 and remains on track to meet or exceed its
annual nancial targets.
One goal of the E2 program is to provide funds for investment
in selected high-growth businesses and customer-focused
technology. In addition, by taking a hard look at our
organization, streamlining various internal processes and
procedures and operating more efciently ourselves, we are
making it easier for clients to do business with SunTrust. We
believe this will contribute meaningfully to our competitive
advantage in the marketplace and, by extension, improve our
revenue-generating capacity once market conditions improve.
I do not wish to downplay the seriousness of the challenges
confronting our industry at this time. Yet history tells us
convincingly that, in time, markets will stabilize, the credit
cycle will play out and more normal performance patterns
for banks will resume. So, even as we deal with current
pressures, we are positioning ourselves for the future — and
for better than “normal” performance.
INVESTING FOR GROWTH
We fully expect to emerge from this inhospitable environment
strong, successful and poised to take full advantage of the
growth opportunities that are out there for us. In that vein,
we are prudently investing in our businesses and expanding
our capabilities. For example:
• Our innovative “My Cause” deposit-generation campaign —
through which clients who open a new checking account
can have SunTrust make a donation in their name to
an IRS-recognized charity — led to signicant growth
in new accounts and households while reinforcing our long
track record of community support.
• Investments in our award-winning Treasury & Payments
Solutions business boosted our competitive position in
commercial products with high client appeal and attractive
prot characteristics such as online payroll, remote check
capture, and fraud prevention.
• To tap the growth potential in the “megawealthy” market,
our multi-family ofce subsidiary — which was rebranded
as GenSpring Family Ofces — added an international
capability and enhanced its domestic footprint by expanding
its New York City presence and acquiring a well-regarded
Phoenix-based wealth management operation. GenSpring
now serves over 600 families with nearly $15 billion in
assets under management.
2 SUNTRUST 2007 ANNUAL REPORT