SunTrust 2011 Annual Report Download - page 6

Optimize the Business Mix
Our third strategic priority is
optimizing the business mix. Our
efforts in this area are primarily
centered on making investments
in certain segments of our
Wholesale business to expand
client relationships and grow
commercial loans. Although we
are currently very capable in
these areas, we believe there is
untapped opportunity to grow our
business signicantly and deepen
client relationships.
Our Corporate and Investment Banking
line of business, which serves large
corporate clients, had a second
consecutive record year in 2011 —
growing revenue by 8 percent and
net income by 11 percent over the
prior year. We have made signicant
investments in our team and our
capabilities, and are leveraging a
diversied strategy and relationship-
driven model that is delivering results.
Diversied Commercial Banking
has long been a core strength for
SunTrust, and this area has performed
well through the cycle. During 2011,
this business produced solid net
interest and fee income growth,
ultimately growing revenue by
9 percent and net income by 33
percent over the prior year.
Overall, I’m very pleased with the
progress that we’ve made in these areas
and the potential for future growth.
Improve Expense Efciency
Our nal strategic priority is improving
our efciency. In the past few years
credit and cyclical expenses have
grown disproportionately and
overshadowed our efforts to manage
our expenses. While we expect
cyclical costs to abate over time,
we also recognize that we can — and
must — operate the core franchise
more efciently.
To that end, last fall we announced
a program under which we expect
to eliminate $300 million in core
expenses from our cost base by the
end of 2013. Efforts are already under
way to identify and execute on
savings opportunities, specically
in strategic supply management,
consumer banking and operations,
and staff support costs. These
opportunities span the entire
organization, and every teammate
is involved in delivering savings and
meeting our goal. We have made
notable early progress — by year-
end we eliminated $75 million in
annualized expense from our cost base.
We ultimately believe that we can
reduce our efciency ratio to less
than 60 percent. This should occur
through the combination of our
expense reduction efforts and the
expected decline in cyclically high
credit and mortgage-related items
over time.
We are focused on
the right things and
the right areas to
drive improved long-
term, sustainable
core performance
and higher returns.
We stand prepared
to embrace the
opportunities that will
inevitably emerge as
the economy improves.
SUNTRUST 2011 ANNUAL REPORT