SunTrust 2009 Annual Report Download - page 5

to the drivers that build loyalty by understanding individual
client preferences and aligning our business model to
respond. We are investing in technology, in better
understanding clients’ needs, in more effectively leveraging
teammates’ knowledge, in enhanced training and
development opportunities, and in delivering on our
brand promise to help our clients “Live Solid.” We are
pleased with the results to date and encouraged by the
momentum we have created in our ongoing efforts to
enhance client satisfaction.
Leaner and More Effi cient
Today’s SunTrust is a leaner, more effi cient, and more
productive organization than at any time in recent history.
We exceeded our stated goal of achieving more than
$600 million in run-rate savings during 2009, which is
over 12% of our 2006 noninterest expense base. During
this timeframe, we signifi cantly lowered offi ce space
utilization and reduced overall full-time staff, while
increasing hiring in key revenue-generation and risk areas.
We are committed to producing ongoing and sustainable
savings that will result in a more effi cient organization
and one that is easier to do business with, both externally
and internally. We expect that this discipline will enable
restrained expense growth and greater operating leverage
as revenue improves in the future.
Balance Sheet and Business Mix Management
The fi nal component of our growth initiatives I’d like to
note is a continuing effort to optimize the balance sheet
and business mix. We have been proactively taking actions
since 2006 to deleverage and improve the profi tability
of the balance sheet. In the early stages of these initiatives,
we focused mostly on reducing the securities portfolio
and on the sale of mortgage, student, and corporate
loans. More recently, we have been focused on the
liability side of the balance sheet given the increase in
deposits and liquidity. For example, we have actively
managed down higher cost deposits including brokered
deposits and certifi cates of deposit.
Further, we have focused resources on business mix
management and also continued our deliberate approach
to selectively growing or shrinking certain loan classes
in order to achieve appropriate balance between risk
and return. For instance, we have been decreasing the
construction portfolio and have selectively sought to
grow other categories such as consumer, commercial
and industrial, and more recently, indirect auto as
pricing improved.
So what does all this mean? We believe that when you
step back and consider the long-term economic prospects
of our markets, our strong capitalization, our relative
credit strength, and our growth initiatives, it all says
that we are positioned well to deliver steadily improving
returns as we come out of this cycle. And though some
things, notably the economic and regulatory environment,
are ultimately out of our control, I believe we are doing a
good job of controlling those things that we can control.
Going forward, we are in a better position to satisfy our
clients and our shareholders. Our team has never been
stronger, our strategy never better, and our client loyalty
never higher. As new challenges arise and new competition
surfaces, opportunities to truly differentiate the SunTrust
brand and experience will be created. The SunTrust team,
the individuals who execute our strategies across our
organization, are doing the things that make it possible
to look beyond the current operating environment with
a reasoned and realistic sense of confi dence.
We are strongly encouraged by the prospect of an
improving economy, by the strong foundation we have
created, and by the traction we are gaining from our
initiatives. On behalf of our management team and our
Board of Directors, I would like to express appreciation
to all of my SunTrust teammates for their dedication to our
institution and to our clients. It is that dedication that will
help drive our future performance.
Finally, I wish to thank our shareholders for your continued
support during a very diffi cult year. We are committed to
delivering a higher level of performance in the future.
As we see it, the future begins now.
JAMES M. WELLS III
Chairman and Chief Executive Offi cer
February 16, 2010
SUNTRUST 2009 ANNUAL REPORT
3