Goldman Sachs US Financial Services Conference Kelly S. King, Chief Executive Officer
December 5, 2017
2
To make the world a better place to live by:
Helping our CLIENTS achieve economic success and financial security;
Creating a place where our ASSOCIATES can learn, grow and be fulfilled in their work;
Making the COMMUNITIES in which we work better places to be; and thereby:
Optimizing the long-term return to our SHAREHOLDERS, while providing a safe and sound investment.
2
A National Presence With Diverse Non-bank Businesses
3
4
Top-Tier Performance in Key Categories
15.59%
12.24%
5.00%
10.00%
15.00%
20.00%
BBT Peer Average
Return on Tangible Common Equity
3.48%
3.19%
3.00%
3.25%
3.50%
3.75%
BBT Peer Average
Net Interest Margin
2.81%
2.11%
2.00%
2.50%
3.00%
BBT Peer Average
Dividend Yield
0.31%
0.52%
0.00%
0.20%
0.40%
0.60%
BBT Peer Average
NPAs / Total Assets
41.4%
34.5%
30.0%
35.0%
40.0%
45.0%
BBT Peer Average
Fee Income Ratio
As of / for the quarter ended 09/30/17
Peers include CFG, CMA, FITB, HBAN, KEY, MTB, PNC, RF, STI, USB, WFC and ZION ROTCE is an adjusted measure
Source: S&P Global and company reports
5
BB&T’s 5 Phases
1 2 3 4 5
1972 “Envision or Die” 1988
“Differentiate or Die”
Mid 1990’s “Grow or Die”
2008 “Restructure or Die”
Today “Disrupt or Die”
6
Disrupt or Die
Optimize
branch
network Substantially
increase digital
client services
and marketing
Restructure
and digitize
support
services
Increase
national
lending
businesses Expand wealth
and fee
businesses
Renew focus on
commercial
and retail
community
bank
Consistent
positive
operating
leverage
Rationalize / improve risk management
systems
FTE reductions
No new major systems projects
New branch
products and strategies
Regional Presidents drive
commercial strategies and
IRM
Robotics process improvements
IRM
Asset management and brokerage IRM
Corporate
Sheffield
Mortgage
Equipment Finance
A.I.
Robotics
Agile DevOps
Small Business focus
Enhance “U”
Large increase in social media and
advertising
Reconceptualizing Our
Businesses
Increased branch closures (~150 in 2017 and 2018)
Improve Insurance
profitability and grow faster (organic &
acquisitions) CRE
Voice of the Client
4Q17 Outlook
1 Taxable-equivalent 2 Excludes merger-related and restructuring charges
Category Guidance
Loans
n Total down slightly vs. 3Q17
n Core up 2% – 4% annualized vs. 3Q17
Credit quality n NCOs expected to be 40 – 50 bps
Net interest margin
n GAAP margin down 3 – 5 bps vs. 3Q17
n Core margin down 3 – 5 bps vs. 3Q17
Net interest income1 n Stable compared with 3Q17
Noninterest income n Up slightly vs. 4Q16
Expenses2
n Stable compared with 4Q16
n Expect to achieve positive operating leverage
7
Appendix
Quarter Ended
Sept. 30 2017
Net income - GAAP
Net income available to common shareholders – GAAP $ 597
Merger-related and restructuring charges, net after tax 29
Amortization of intangibles, net of tax 22
Numerator - adjusted1 $ 648
Average assets
Average common shareholders' equity $ 26,857
Plus: Estimated impact of merger-related and restructuring charges 14
Less: Average intangible assets 10,382
Denominator - adjusted1 $ 16,489
Reported ratio 14.89 %
Adjusted ratio 15.59
10
Appendix – Non-GAAP reconciliations
Return on Tangible Common Equity (Dollars in millions)
10