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Barclays Americas Select Franchise Conference Daryl N. Bible, Chief Financial Officer
May 15, 2018
Forward-Looking Information
This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, regarding the financial condition, results of operations, business plans and the future performance of BB&T. Forward-looking
statements are not based on historical facts but instead represent management's expectations and assumptions regarding BB&T's business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent
uncertainties, risks and changes in circumstances difficult to predict. BB&T's actual results may differ materially from those contemplated by the forward-looking statements. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans,"
"projects," "may," "will," "should," "could," and other similar expressions are intended to identify these forward-looking statements. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. While there is no
assurance any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation, as well as the risks and uncertainties more
fully discussed under Item 1A-Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2017 and in any of BB&T’s subsequent filings with the Securities and Exchange Commission:
= general economic or business conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, slower deposit and/or asset growth, and a deterioration in credit quality and/or a reduced demand for credit, insurance or other services;
= disruptions to the national or global financial markets, including the impact of a downgrade of U.S. government obligations by one of the credit ratings agencies, the economic instability and recessionary conditions in Europe, the eventual exit of the United Kingdom from the European Union;
= changes in the interest rate environment, including interest rate changes made by the Federal Reserve, as well as cash flow reassessments may reduce net interest margin and/or the volumes and values of loans and deposits as well as the value of other financial assets and liabilities
= competitive pressures among depository and other financial institutions may increase significantly; = legislative, regulatory or accounting changes, including changes resulting from the adoption and implementation of the Dodd-Frank Act may adversely affect the businesses in which BB&T is engaged; = local, state or federal taxing authorities may take tax positions that are adverse to BB&T; = a reduction may occur in BB&T's credit ratings; = adverse changes may occur in the securities markets; = competitors of BB&T may have greater financial resources or develop products that enable them to compete more successfully than BB&T and may be subject to different regulatory standards than BB&T; = cybersecurity risks could adversely affect BB&T's business and financial performance or reputation, and BB&T could be liable for financial losses incurred by third parties due to breaches of data shared between financial institutions; = higher-than-expected costs related to information technology infrastructure or a failure to successfully implement future system enhancements could adversely impact BB&T's financial condition and results of operations and could result in significant additional
costs to BB&T;
= natural or other disasters, including acts of terrorism, could have an adverse effect on BB&T, materially disrupting BB&T's operations or the ability or willingness of customers to access BB&T's products and services; = costs related to the integration of the businesses of BB&T and its merger partners may be greater than expected; = failure to execute on strategic or operational plans, including the ability to successfully complete and/or integrate mergers and acquisitions or fully achieve expected cost savings or revenue growth associated with mergers and acquisitions within the expected time
frames could adversely impact financial condition and results of operations;
= significant litigation and regulatory proceedings could have a material adverse effect on BB&T; = unfavorable resolution of legal proceedings or other claims and regulatory and other governmental investigations or other inquiries could result in negative publicity, protests, fines, penalties, restrictions on BB&T's operations or ability to expand its business and
other negative consequences, all of which could cause reputational damage and adversely impact BB&T's financial conditions and results of operations;
= risks resulting from the extensive use of models; = risk management measures may not be fully effective; = deposit attrition, customer loss and/or revenue loss following completed mergers/acquisitions may exceed expectations; and = widespread system outages, caused by the failure of critical internal systems or critical services provided by third parties, could adversely impact BB&T's financial condition and results of operations.
Non-GAAP Information
This presentation contains financial information and performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). BB&T's management uses these "non-GAAP"
measures in their analysis of the Corporation's performance and the efficiency of its operations. Management believes these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and
demonstrate the effects of significant items in the current period. The company believes a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. BB&T's management believes investors may find these
non-GAAP financial measures useful. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other
companies. Below is a listing of the types of non-GAAP measures used in this presentation:
• The adjusted efficiency ratio is non-GAAP in that it excludes securities gains (losses), amortization of intangible assets, merger-related and restructuring charges and other selected items. BB&T's management uses this measure in their analysis of the
Corporation's performance. BB&T's management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects of significant gains and charges.
• Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets and their related amortization. These measures are useful for evaluating the performance of a business consistently, whether acquired or
developed internally. BB&T's management uses these measures to assess the quality of capital and returns relative to balance sheet risk and believes investors may find them useful in their analysis of the Corporation.
• Core net interest margin is a non-GAAP measure that adjusts net interest margin to exclude the impact of purchase accounting. The interest income and average balances for PCI loans are excluded in their entirety as the accounting for these loans can result in
significant and unusual trends in yields. The purchase accounting marks and related amortization for a) securities acquired from the FDIC in the Colonial acquisition and b) non-PCI loans, deposits and long-term debt acquired from Susquehanna and National
Penn are excluded to approximate their yields at the pre-acquisition rates. BB&T's management believes the adjustments to the calculation of net interest margin for certain assets and liabilities acquired provide investors with useful information related to the
performance of BB&T's earning assets.
• The adjusted diluted earnings per share is non-GAAP in that it excludes merger-related and restructuring charges and other selected items, net of tax. BB&T's management uses this measure in their analysis of the Corporation's performance. BB&T's
management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects of significant gains and charges.
• The adjusted operating leverage ratio is non-GAAP in that it excludes securities gains (losses), amortization of intangible assets, merger-related and restructuring charges and other selected items. BB&T's management uses this measure in their analysis of the
Corporation's performance. BB&T's management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects of significant gains and charges.
• The adjusted performance ratios are non-GAAP in that they exclude merger-related and restructuring charges and, in the case of return on average tangible common shareholders' equity, amortization of intangible assets. BB&T's management uses these
measures in their analysis of the Corporation's performance. BB&T's management believes these measures provide a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects of
significant gains and charges.
• The adjusted net interest margin is a non-GAAP measure in that it estimates the impact on taxable-equivalent net interest income as if the tax reform legislation had not been enacted. BB&T's management believes this measure provides a greater understanding
of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects of tax reform.
A reconciliation of these non-GAAP measures to the most directly comparable GAAP measure is included in the Appendix.
Capital ratios are preliminary.
158
22
55
252
184
18
161
146
141
64
64
64
179
161
198
241
241
241
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.
3
• Community banking, corporate banking/lending, insurance,
wealth, specialty lending
• Cybersecurity
• Fraud prevention
• Digital solutions for our clients
• Marketing
• More expense flexibility in 2018 o Branch closures o FTE reductions o No new major system upgrades on the horizon
• A top tier performer expecting lower expenses, strong core
commercial loan growth and positive operating leverage in 2018
Targeted
2018
investments
Investing in our
differentiating
businesses
Improving loan
growth
Financial
flexibility
Performance
BB&T Has Reached an Inflection Point
4
• Expecting improved loan growth of 1% – 3% in 2018 o Residential Mortgage is growing
o Prime Auto expected to begin growing mid-year o Northern regions improving o Growing new loan products
5
BB&T Corporation: A Growing Franchise 8th Largest U.S. Financial Institution1
State # of
Branches3
Deposits1
($bn)
Deposit
Rank
North Carolina2 328 $29.6
Virginia 317 23.2
Florida 298 18.0
Pennsylvania 246 13.7
Georgia 144 12.0
Maryland 157 10.0
South Carolina 102 8.1
Texas 118 6.3
Kentucky 99 5.7
West Virginia 68 5.3
Alabama 77 3.9
Tennessee 46 2.7
New Jersey 30 2.0
District of
Columbia 12 1.3
Indiana 2 NM
Ohio 3 NM
Total # of Branches 2,047
2
4
7
6
5
6
3
14
4
1
6
8
16
9
NM
NM
1 Deposit market share data as of 06/30/2017 2 Excludes home office deposits
3 Branch totals as of 03/31/2018 Source: FactSet, FDIC, S&P Global
BB&T is Well-Positioned in Growing Markets
Source: Yelp Economic Outlook
7 out of 10 of the “Top 10 Cities for Economic Opportunity” are in BB&T’s Community Banking footprint
3. Omaha, NE 6. Las Vegas, NV
9. Salt Lake City, UT
7
8
Our Top Priorities
Focused on… Focused on… Focused on…
Growing loans and revenues Reducing expenses Strategic investments
2018 in execution mode
2019 in planning mode
9
Retail Bank Product Expansion Initiatives
– Enhanced HELOAN product launch – target June 1st
– New Bankcard suite of products – target June
– Small Business segmentation expansion – target Q3
– Direct auto lending process enhancements – target Q4
– Implemented “near prime” model in February
Accelerate securities secured lending
Bolster marine production
Mass affluent segment strategy
Launch Wealth business purpose lending
Wealth mortgage affinity process
Expand middle market focus
Expand national CRE lending
Increased focus on growing ABL, energy and BB&T-led syndications
Focused on…Growth Strategies
10
FTE reductions
Back office consolidation
Continued rationalization of branch network and corresponding reinvestment
strategies
– 148 branches closed in 2017
– 150-160 branches to be closed in 2018
• Developing prospective 5 year optimization and reinvestment plan
– ATM-infrastructure, enhanced capabilities and refurbishment/replacement
– Care centers-virtual banking centers with enhanced capabilities and proactive outreach
– Increase multi-channel marketing initiative investments-media, digital and direct mail
– De Novo branches-strategically identify opportunities for additions of branches; more technology focused with enhanced digital capabilities
Robotic Process Automation
Energy-efficient investments
Focused on…Reducing Expenses
11
Optimizing Facilities and Branches
12/31/2016 12/31/2017 Total Reductions
Corporate locations 198 182 16
Financial centers 2,197 2,049 148
Non-bank businesses 557 499 58
Total 2,952 2,730 222
12
Cybersecurity
Fraud prevention
Marketing
– Includes digital advertising, client incentives, direct mail; radio and TV in select markets
– Use of ATMs in select markets for increased convenience and brand recognition
Leadership Institute
Corporate back office centers
FinTech Investment Fund
Digital solutions for our clients
– BB&T Financial InSights
– Enterprise “Voice of the Client” Program
Focused on…Strategic Investments
BB&T Insurance Holdings
$23B Premiums
$1.8B Annual Revenues
211 Locations
6,700+ Employees
Founded in 1922 * 5th largest Insurance Broker world-wide * Largest insurance wholesaler in US
* 2nd largest P&C wholesaler in US * Largest life insurance wholesaler in US
13
14
Leading Retail Network of Insurance Professionals
Total Retail
Total Insurance
Premiums ~$8.5B ~$1.5B ~$10.0B ~$24.5B
Revenue ~$825MM $142MM ~$967MM ~2.0B
U.S. Rank #5 #33 #5 #5
Employees ~3,350 ~700 ~4,050 ~7,400
Clients ~252,500 ~60,000 ~312,500 ~350,000
Retail Offices ~111 ~31 ~142 ~242
15
Digital Performance
iOS Mobile App Rating
4.8
Android Mobile App Rating
4.1
2018 Dynatrace Q1 Mobile Banker Scorecard
Top 3 Mobile App Top 5 Mobile Browser
2017 S&P Global Market Intelligence
Top 5 Mobile App
2017 Javelin Online Banking Contender
2.94MM Active Digital
Users
App
643K
Browser &
App
830K
Browser
1.47MM
Digital Users YOY Growth Browser
4%
App
20%
Online Account Opening Percentage of Total Bank Production*
*Q1 2018, Unit Sales Growth YOY
Digital Users†
†Mar 2018 U Web, U Mobile, Small Business, OLB
Mobile Check Deposit Activity Zelle Activity
††Mar 2018
62% YOY Growth
Accolades
Mar 2018
Tota
l Dep
osi
ts P
er M
on
th
Mar 2017
Solid Growth Since Launch
Dec 2017
Mar 2018
15%
13%
Retail Checking
19%
70%
Credit Cards
-39%
21%
Mortgage
27%
10%
Retail Savings
43%
Business Checking
7%
††
††
$8.7MM
$40.8MM
$106MM
$171MM
Tota
l Am
ou
nt
(I
nco
min
g an
d O
utg
oin
g)
A Digital Mindset For the Future:
“1st Tranche” Digital Investments
Category Initiative
Digital Marketing Digital Marketing Campaigns
Voice of the Client (VOC)
Digital Sales Retail eLending
Digital Capabilities
EWS/Zelle
TCH Faster Payments
Regional Acceptance Mobile Payment App
CMOL Replacement
Commercial Portal
Interactive Fraud Alerts for Card Products
Affluent Client Experience
Data/Metrics Client Experience Data Lake
Marketing Automation (Marketo)
Digital Enablers
API Infrastructure
Test & Learn
Agile/DevOps
Automation & Optimization Robotic Process Automation (RPA)
Digital Signature
16
Financial Highlights
1 Includes non-GAAP measures; refer to non-GAAP reconciliation in the attached Appendix for adjusted measures
Record net income
available to common shareholders
totaled
$745 million,
up 97.1% vs. 1Q17
GAAP efficiency
ratio was 60.0%
adjusted efficiency ratio
was 57.3% in 1Q18
Increased the common
dividend 13.6%
Diluted EPS
was a record $0.94, up 104.3% vs.
1Q17
2018 First Quarter Performance Highlights1
Achieved positive operating
leverage for both
linked and like
quarters
Taxable-equivalent
revenues
totaled $2.8 billion, up 0.6%
vs. 1Q17
10
18
Category 2Q18
Average total loans Up 1% - 3% annualized vs. 1Q18
Credit quality NCOs expected to be 35 - 45 bps
Net interest margin GAAP margin stable vs. 1Q18
Core margin up slightly vs. 1Q18
Noninterest income Up 2% - 4% vs. 2Q17
Expenses1 Down 1% - 3% vs. 2Q17
Effective tax rate 21%
Category Full-year 2018
Average total loans Up 1% - 3% vs. 2017
Revenue2,3 Up 2% - 4% vs. 2017
Expenses1,3 Flat to down 1% vs. 2017
Effective tax rate 20% - 21%
1 Excludes merger-related and restructuring charges and selected items listed on page 16 of the Quarterly Performance Summary
2 Taxable-equivalent
3 Includes Regions Insurance Group
2Q18 and Full-year 2018 Outlook
19
NPA Levels Remain Low… …With High Allowance Coverage
Source: S&P Global
1. NPAs includes TDRs; based on regulatory filings for comparative purposes across banks
NPAs and TDRs / Assets (%) (1) Reserves / NPAs (%) (1)
55
57
58
78
81
82
84
94
94
111
119
133
25 50 75 100 125 150
STI
HBAN
RF
PNC
FITB
CFG
MTB
ZION
USB
BBT
KEY
CMA
1.5
1.3
1.2
1.0
1.0
1.0
0.9
0.9
0.8
0.7
0.6
0.5
0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6
STI
RF
HBAN
FITB
MTB
CFG
USB
PNC
ZION
CMA
BBT
KEY
Pristine Asset Quality with High Level of Reserves
20
Attractive Deposit Base BB&T Has a Granular, Retail Core Deposit Franchise
BB&T has increased its non-time deposit composition
Additionally, non-interest bearing deposit mix has also improved
Cost of deposits remains
low at 30 bps
Ample liquidity available with 90% Loan / Deposit ratio
Non-Interest Bearing Deposit Composition
Loans / Deposits
%
%
Non-Time Deposit Composition
%
Cost of Deposits
%
Change in Cost of Deposits
Q1’18 vs. Q1’17 Y-o-Y Change
76 80 85 88 91 92 91
0
25
50
75
100
2012 2013 2014 2015 2016 2017 Q1'18
24 27
30 31 32 34 35
0
10
20
30
40
2012 2013 2014 2015 2016 2017 Q1'18
0.34
0.23
0.19 0.17 0.16
0.22
0.30
0.00
0.10
0.20
0.30
0.40
2012 2013 2014 2015 2016 2017 Q1'18
86
91 93
91 89
91 90
60
70
80
90
100
2012 2013 2014 2015 2016 2017 Q1'18
0.20
0.17
0.14
0.14
0.13
0.13
0.13
0.13
0.06
0.05
0.05
0.05
0.00 0.05 0.10 0.15 0.20
CFG
USB
FITB
PNC
HBAN
KEY
STI
BBT
RF
ZION
CMA
MTB
Source: S&P Global 21
BB&T Has Seen the Strongest Shift in Deposit Mix
2012Y
Non-Interest Bearing Deposit Composition (%)
2018Q1 Change in Deposit Composition
45
40
37
35
34
33
31
30
30
27
27
24
0 20 40 60
CMA
ZION
MTB
KEY
FITB
PNC
RF
STI
USB
CFG
HBAN
BBT
54
45
38
35
35
32
30
30
27
26
25
24
0 20 40 60
CMA
ZION
RF
MTB
BBT
FITB
KEY
PNC
STI
HBAN
CFG
USB
11
9
7
5
(1)
(2)
(2)
(2)
(3)
(3)
(5)
(6)
(8) (4) 0 4 8 12
BBT
CMA
RF
ZION
HBAN
CFG
FITB
MTB
PNC
STI
KEY
USB
Non-Interest Bearing Deposit Composition (%) 2018Q1 vs. 2012Y (% Points)
Source: Morgan Stanley Research 22
Total Shareholder Return (TSR)
BB&T Has Generated Strong Shareholder Returns
Throughout the Cycle BB&T and Proxy Peers
20-Year Total Shareholder Return
466
340
332
329
204
146
45
40
31
10
5
(6)
(100) 0 100 200 300 400 500
MTB
WFC
USB
PNC
BBT
CMA
FITB
ZION
STI
RF
HBAN
KEY Peer Median: 96% 0
50
100
150
200
250
300
350
Apr-98 May-03 Apr-08 May-13 Apr-18
BB&T Peer Median
Peers = 96%
= 204%
Source: S&P Global, Capital IQ
Proxy peers include CFG, CMA, FITB, HBAN, KEY, MTB, PNC, RF, STI, USB, WFC, and ZION; CFG excluded in data prior to May 2014 when it IPO’ed
20-Year TSR (%) Indexed to 100 (%)
23
BB&T Has Lower Cost of Capital Than Peers &
Consistently Lower Beta Over Time
Beta of BB&T vs. Peers 1
Source: S&P Global, Capital IQ
1. Beta represents U.S. local predicted beta per Barra
Since 2005
BB&T has not had a higher beta than the peer median in any period since 2005
BB&T’s beta has generally been an average of (0.15)x lower
than its peers
Trend is particularly evident during the financial crisis
Ticker Cost of Equity (%)
WFC 10.1
CFG 10.0
KEY 9.5
CMA 9.3
RF 9.3
ZION 9.3
STI 9.3
FITB 9.0
HBAN 9.0
PNC 8.9
BBT 8.8
USB 8.7
MTB 8.7
Median 9.3
0.5
1.0
1.5
2.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
BB&T Peer Median
1.05
1.12
Current Cost of Equity
Comparison with Peers
24
BB&T’s Credit Ratings Aligned with Best-in-Class Banks BB&T Relative to Proxy Peer Group
1. Excludes CFG, which is not rated by Moody’s
2. Excludes ZION, which Is not rated by Fitch
Source: S&P, Moody’s, Fitch Reports
A+/A1
A/A2
A-/A3
BBB+/
Baa1
BBB/ Baa2
BBB-/
Baa3
S&P Moody’s1 Fitch2
AA-/Aa3
25
26
Since 2009 we have completed
more than 10,000 community service projects, provided more
than 500,000 volunteer hours, and helped change the lives of
more than 15 million people
Committed to Our Communities Lighthouse Project
27
Committed to Corporate Social Responsibility Environmental Sustainability
Bank-wide facilities initiatives
Corporate paper recycling
Many departments working towards paperless goals
Purchase of copy paper recycled using sustainable forestry practices
Environmentally-friendly janitorial cleaning products
Targeting a 25% reduction in energy usage within 5 years
Targeting a 10% reduction in water usage within 5 years
132,634
Trees Preserved
216.6MM gallons
Water Saved
17.9MM kWh Electricity Saved
31,555 Cubic Yards Landfill Space
Conserved
11.4MM lbs
CO2 Avoided
15.8MM lbs of Paper Recycled
28
Well-Positioned for the Future
Drive top-tier operating performance
Diversification drives stable, consistent and growing earnings
Achieving targeted cost savings / intense focus on expenses
“Disrupt or Die” – reallocating expenses
Achieving positive operating leverage
Committed to a strong and consistently growing dividend and strong TSR
Vision, Mission and Values
Appendix
Non-GAAP reconciliations
Efficiency ratio (Dollars in millions)
Quarter Ended
March 31
2018
Efficiency ratio numerator - noninterest expense - GAAP $ 1,686
Amortization of intangibles (33 )
Merger-related and restructuring charges, net (28 )
Gain (loss) on early extinguishment of debt —
Charitable contribution —
One-time bonus —
Efficiency ratio numerator - adjusted $ 1,625
Efficiency ratio denominator - revenue1 - GAAP $ 2,813
Taxable equivalent adjustment 23
Securities (gains) losses, net —
Efficiency ratio denominator - adjusted $ 2,836
Efficiency ratio - GAAP 60.0 %
Efficiency ratio - adjusted2 57.3
1 Revenue is defined as net interest income plus noninterest income.
2 The adjusted efficiency ratio is non-GAAP in that it excludes securities gains (losses), amortization of intangible assets, merger-related and restructuring charges and other selected items.
BB&T's management uses this measure in their analysis of the Corporation's performance. BB&T's management believes this measure provides a greater understanding of ongoing
operations and enhances comparability of results with prior periods, as well as demonstrates the effects of significant gains and charges.