SunTrust 2011 Annual Report Download - page 106
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Total noninterest expense was $1.2 billion, an increase of $107 million, or 10%. The predominant drivers of the higher expense
were regulatory compliance, operating losses related to mortgage servicing, and collection costs that were partially offset by certain
lower volume-related expenses, and lower other real estate.
Wealth and Investment Management
W&IM's net income for the twelve months ended December 31, 2011 was $160 million, an increase of $22 million, or 16%,
compared with the same period in 2010. The increase in net income was predominantly due to higher trust and retail investment
income and net interest income, partially offset by lower trading income and the net gain from the sale of the RidgeWorth Money
Market Fund business to Federated Investors, Inc. in 2010.
Net interest income was $417 million, an increase of $32 million, or 8%, over the prior year driven mostly by deposit-related net
interest income. Deposit-related net interest income increased $31 million, or 12%, due to the combination of higher average
balances and improved deposit spreads. Average customer deposits increased $1.0 billion, or 9%, as money market accounts
increased $1.1 billion, or 27%, and average demand deposits increased $0.4 billion, or 22%. Average time deposits decreased $0.4
billion, or 31%, and NOW accounts decreased $0.1 billion, or 2%. Loan-related net interest income decreased $2 million, or 1%,
as lower balances were only partially offset by higher spreads. Average loan balances declined $0.5 billion, or 6%, with decreases
primarily in consumer direct categories, commercial real estate, and residential mortgages.
Provision for credit losses was $60 million, a decrease of $1 million, or 2%, due to reduced equity line net charge-offs.
Total noninterest income was $822 million, an increase of $1 million. Trust income increased $28 million, or 6%, predominantly
due to higher revenue from our RidgeWorth mutual fund complex and higher market valuations on managed equity assets. Retail
investment income increased $27 million, or 13%, driven by increased recurring brokerage revenue and annuity income. Trading
income decreased $26 million due to higher valuations on trading assets and the sale of certain CLO equity positions in 2010.
Additionally, other income decreased $25 million predominantly due to an $18 million gain from the sale of the RidgeWorth
Money Market Fund business in 2010.
Total noninterest expense was $922 million, relatively flat compared to 2010.
As of December 31, 2011, assets under management were approximately $100.7 billion compared to $105.1 billion as of December
31, 2010. Assets under management include individually managed assets, the RidgeWorth Funds, managed institutional assets,
and participant-directed retirement accounts. SunTrust's total assets under advisement were approximately $193.3 billion, which
includes $100.7 billion in assets under management, $46.9 billion in non-managed trust assets, $35.5 billion in retail brokerage
assets, and $10.2 billion in non-managed corporate trust assets.
Corporate Other and Treasury
Corporate Other and Treasury's net income for the twelve months ended December 31, 2011 was $447 million, a decrease of $42
million, or 9%, compared with the same period in 2010. The decrease was predominantly due to the potential mortgage servicing
settlement and claims expense and partially offset by increased net interest income and favorable mark-to-market valuations on
our public debt and index-linked CDs carried at fair value.
Net interest income was $520 million, an increase of $36 million, or 7%, compared to the same period in 2010. The increase was
mainly due to an increase in income from hedges employed as part of our interest rate risk management strategies. Total average
assets decreased $1.3 billion, or 4%, predominantly due to a reduction in investment securities in conjunction with the repurchase
of preferred stock issued to the U.S. Treasury in the first quarter of 2011. Total average deposits remained consistent with the prior
year at $2.2 billion. Average long-term debt decreased by $2.9 billion, or 19%, compared with 2010 as we repaid FHLB advances
and senior and subordinated bank debt in conjunction with strong overall consumer and commercial deposit growth.
Total noninterest income was $333 million, an increase of $38 million, or 13%, compared with the same period in 2010. The
increase was mainly due to favorable mark-to-market valuation on our public debt and index linked CDs carried at fair value and
partially offset by a $74 million decrease in net gains on the sale of investment securities.
Total noninterest expenses increased $134 million compared with the same period in 2010. The increase is mainly due to the
potential mortgage servicing settlement and claims expense, implementation expenses associated with our PPG expense initiative
and lower net recovery of allocated corporate administrative expenses. Due to the uncertainty regarding the final terms of the
potential mortgage servicing settlement, the entire expense accrual was recorded at the Parent Company within the Corporate
Other and Treasury segment.