SunTrust Banks, Inc. (NYSE:STI) Q3 2016 Earnings Conference Call - Final Transcript

Jul 22, 2016 • 08:00 am ET

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SunTrust Banks, Inc. (NYSE:STI) Q3 2016 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to the SunTrust Second Quarter 2016 Earnings Conference Call.

[Operator Instructions]

Now, I will turn the call over to Ankur Vyas, Director of Investor Relations. Thank you. You may begin.

Executive
Ankur Vyas

Thank you, Christine. Good morning and welcome to SunTrust's second quarter 2016 earnings conference call. Thanks for joining us.

In addition to today's press release, we've also provided a presentation that covers the topics we plan to address during our call. The press release, presentation and detailed financial schedules can be accessed at investors.suntrust.com.

With me today, among other members of our Executive Management team are Bill Rogers, our Chairman and Chief Executive Officer and Aleem Gillani, our Chief Financial Officer.

Before we get started, I need to remind you that our comments today may include forward-looking statements. These statements are subject to risks and uncertainty and actual results could differ materially. We list the factors that might cause actual results to differ materially in our SEC filings, which are available on our website.

During the call, we will discuss non-GAAP financial measures when talking about the company's performance. You can find the reconciliations of these measures to GAAP financial measures in our press release and on our website, investors.suntrust.com. Finally, SunTrust is not responsible for and does not edit nor guarantee the accuracy of our earnings teleconference transcripts provided by third-parties. The only authorized live and archived webcast are located on our website.

With that, I'll turn the call over to Bill.

Executive
William H. Rogers

Great. Thanks, Ankur and good morning, everyone.

I'm going to begin with a brief overview of the quarter and then I'm going to turn it over to Aleem for some additional details including our results at the business segment level. I'll conclude with some perspectives on how this quarter's performance fits into our long-term strategy and overall investment thesis.

To start I'm pleased with the results we delivered this quarter. For several years we've been on a path to grow and diversify the business, improved profitability and increase our capital return to shareholders. This quarter you saw our continued progress in each of these areas. Specifically, our ongoing commitment to invest in revenue growth opportunities while also tightly managing expenses resulted in solid improvements and efficiency.

Additionally, as most of you are aware, the Federal Reserve did not object to our 2016 capital plan which calls for a 23% increase in total capital return relative to our 2015 plan. This is a result of our strong capital position and improved financial performance and demonstrates our commitment to returning capital to our shareholders.

Now getting into the specifics, we reported $0.94 of earnings per share this quarter which included certain discrete items that netted to a $0.05 benefit to the bottom line, but which did not meaningfully impact the current quarter's efficiency ratio. Aleem will provide some more detail on these items later, but thematically, they help better position our company for the future, particularly as it relates to optimizing our branch delivery network.

Excluding these items and