SunTrust 2013 Annual Report Download - page 7

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I. Optimize the Balance Sheet and Business Mix
One of our strategic priorities is to optimize the
balance sheet and business mix. Our e orts have
been centered on improving the diversifi cation
of our loan portfolio and growing key businesses,
particularly expanding Wholesale Banking and
consumer lending. We have already made notable
headway. From a balance sheet perspective, C&I and
consumer loans, excluding government-guaranteed
student loans, have increased from 46% of our total
loan portfolio in 2009 to 57% at the end of 2013.
During that same timeframe we reduced our
nonguaranteed residential and home equity
exposure from 38% to 31%. Furthermore, investment
banking income has grown appreciably, achieving
a new record year in 2013. Our Wholesale Banking
segment, in aggregate, contributed $900 million
to the company’s bottom line.
We have initiatives in place to help drive further
growth. For example, we are expanding our Wholesale
Banking reach by augmenting our industry coverage
model and extending the markets in which we serve
corporate banking clients — taking our corporate
banking services beyond our regional footprint
and on to a national scale. We have also added
a nationwide, online consumer lending platform
which targets super-prime clients. These growth
initiatives are representative of our efforts to
further expand our client franchise and supplement
the growth in our regionally focused businesses.
SunTrust’s Market Position
and Strategic Focus
Our focus remains on meeting more of our clients’
needs, driving profi table growth, and further
improving the e ciency of the company. We have
a solid market position and the strategic focus to
deliver improvement by leveraging the work we
have already done to drive better performance
and returns for our shareholders.
Our distinct position in the marketplace a ords
us unique opportunities. We believe that our size
is ideal. We are large enough that we have the
breadth of products to meet clients’ needs, but
small enough to be nimble and e ectively react to
evolving market conditions and client preferences.
We are a strong regional bank that has augmented
its position with several strategic national businesses.
Our geographic diversity supplements our business
diversity, both of which are important to a bank’s
performance. Furthermore, we have strong market
share in the majority of our larger markets and
these markets exhibit favorable growth characteristics.
These hallmarks of SunTrust add up to a compelling
organic growth opportunity, and we have actionable
strategies to capitalize on our position.
Our strategic priorities are the same ones that
have driven our transformation over the last several
years. We continue to focus on three key areas as
we look to grow and augment the business. Each of
our business segments — Consumer Banking and
Private Wealth Management, Wholesale Banking,
and Mortgage Banking — plays a critical role in the
success of our overall strategic objectives.