Financial Analyses of SunTrust Bank Essay
The SunTrust Bank Inc was an American bank and holding company that was established in the year 1891 in Atlanta Georgia. It has over 1700 bank branches across the Southern Eastern states including Alabama, Arkansas, Florida, Georgia Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia and Washington D. C. The bank offered products such as the retail and commercial banking services as well as the trust services mortgage banking, credit cards, mutual funds, insurance, equipment leasing, asset management and securities underwriting and dealing services.
It had over $182. 2 billion assets as at December 31 in the year 2006. The M and T bank was a bank that was started in the year 1969 but it was referred to as the first Empire State Corporations. It had over 700 branches and 1600 automated teller machines (ATM) in the states such as the Delaware, Maryland New York, Pennsylvania, Virginia, West Virginia, New Jersey, and Washington D. C. The company had over $65 billion asset as at 31st December 2007. The bank offered deposit accounts and loans to the individuals, small and medium sized businesses to the customers.
Its subsidiaries offered brokerage, leasing, loan servicing and other services thus it had a variety of
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The bank had over 1. 7 trillion assets after it acquired other banks such as the ABN Amron North American and LaSalle Bank and was thus referred to as the largest commercial bank in the united states of America since it had the largest number of money deposits and market capitalization as compared to other banks of the United States of America. The banks employees The SunTrust Bank had a total number of employees were 33,000 employees. The management of the bank rewarded them appropriately so that they could perform their activities effectively.
The bank recruited, trained and developed the workforce in the organization so that they could carry out the activities of the organization in an effective manner hence lead to the banks achievement of goals and the objectives. The employees were provided with relevant experience since they were taken through various training institutions and tuition reimbursement programs that would enhance their carrying of their activities in an effective manner. The employees were compensated for the company’s success by been given pay program that motivated them to carry out their activities effectively.
The Bank of America had a total number of employees as at December 2007 were 210,000 employees. The employees of the Bank of America were offered with direct benefits that enabled them to access valuable accounts and services that motivated them to carry out their activities and this enables them to retain and to satisfy them. The M and T bank offered its employees with the benefits package that were designed to give them the flexibility and the protection that they needed so as to ensure that they had a healthy life or work balance to carry out their activities effectively.
The bank also offered its employees with flexible benefits plan, retirement savings and the pension plans as well as the money saving financial services benefits. The bank had over 15305 employees who carried out the activities of the company. The banks beta scores The betas cores were used to measure the relative volatility of an individual’s securities portfolio. The beta measures the volatility of stock as compared to the markets in which stocks are traded in the market.
They are calculated for an entire investment portfolio but not for the individual stocks. The beta that was 1 it meant that the stock moved to the tandem in the market and it indicated that the stock rose to a greater degree in the market. All the banks used the beta scores to determine the financial strengths of the company and also to evaluate the value of the shares and how they would be traded in the stock market so that the company their performances with other so that they could compete effectively in the market. The Chief Executive Officer
The Chief Executive Officer was the senior most corporate officer whose responsibility was to manage the corporation, company organization or agency and he reported to the board of directors about the operations of the company. He also carried out strategic plans and policies that were established by the board of directors. The roles of the chief executive officer were to oversee the highly related and complex activities the creation and the implementation of the corporate strategies and the corporation’s reputation so that the business activities of the company could not be affected in any way.
They hired, fired and led the senior management team and also informed the board about the significant issues that affected the performance of the company so that the performance of the company could not be affected. Mr. J. Scott Wilfong was appointed as the Chief Executive Officer of SunTrust Bank at the Atlanta region of Atlanta. The Executive officers were appointed annually by the board following an annual meeting of the shareholders that was held every year until the time successors were elected and proved to be qualified to carry out the activities of the bank.
The management of the company appointed the chief executive officer so that they would ensure that the senior management resources would be used in ensuring that the resources were properly utilized so that the organization broad strategic plans and initiatives that were implemented in ensuring the standardization and operating efficiency for the strong market basis were properly implemented so that the company’s performance would improve. The chief executive officer of M and T bank was together with the controller charged with the responsibility of oversee that the operations of the bank were being carried out in an effective manner.
The investor Relations and the Director Counsel made up the Disclosure policy committee that made decisions on who the operations were to be conducted, but the chief executive officers gave the committee the mandate of ensuring that the issues pertinent of the organization were properly addressed and implemented. In the year 2000 Mr. James Dimon was appointed as the bank’s chairman and the chief Executive officer under the employment agreement. The employment agreement covered issues such as salary bonus and stock awards as was stated in the proxy statement. The committee was appointed to review the appointment of Mr.
James Dimon since his appointment was controversial but it was noted that his appointment was within the company’s statutes and he had enough qualification for him to hold that position. The Banks of America’s Chief Executive Officer was Kenneth Lewis initiated a program that would be used to reduce the effects of global warming in the country this would be achieved by implementing the use of solar panels, cap and trade discussions and analyzing of carbon so as to reduce the effects of global warming from affecting the environment in which business activities would be carried out.
The management of the bank recommended that the reduction of greenhouse emission would be achieved through offering incentives for the purchase of hybrid vehicles that would be used by the employees, increased renewable investment in energy so as to conserve and utilize energy effectively and it would promote energy so that the country would reduce the cost of generating energy which was expensive for the government to maintain and to manage.
The pay of the Chief Executive Officer The SunTrust banks company’s by-laws stated that the employees pay would be as per the employee’s title, salary, benefits or other terms of employment. The chief executive officers were remunerated on the basis of the perquisites and personal benefits that did not exceed $50,000 or 10% of the total annual salary and the reports bonus during a given financial year of a company.
The bank had a compensation policy that was designed to attract, retain and motivate the executive officer so as enhance the performance of the company by maximizing the company’s performance and shareholder value by providing salaries, rewarding the achievement of the company’s business plan goals and earnings objectives and the creation of the stocks ownership opportunities that would align the interests of the executive officers with those of the shareholders.
The chief executive officer salary was based on the factors such as the executives responsibilities, contribution to the achievement of the company’s business plan goals demonstrated leadership skills and the overall effectiveness of the employees and the time the executives have spent in the company doing productive work. The pay of the Chief Executive Officer of M and T bank was based on the company’s performance. Mr. David A. Paterson was appointed to be the chief Executive officer of the M and T bank his office was based in New York Buffalo.
This vision was to ensure that the economic development issues were implemented into the company so that company’s goals and objectives would be achieved. The officer implemented management structures that would enable the private sector economic status to grow so that this would lead be creation of job opportunities and investment opportunities that would meet the needs of the people in the country. The pay of The Chief Executive Officer of Bank of America Mr. Kenneth D Lewis earned a salary that amounted to $27,873,348.
He was awarded $1. 5 million salary. $11. 07 million of the restricted stock $ 3. 38 million worth of stock options, $4. 25 the chief Executive officer was awarded a salary of $995,000, which were inclusion of $765,385 earning, stock option of $530,400 and 107,100 restricted shares the million of non-equity incentives and $212,211 of other compensation. The SunTrust bank provided deposit, credit, trust and investment services as to its customers through its subsidiaries and it also offers mortgage banking services.
The management of the bank worked with their staff in order to address factors that would improve the performance of the company these were assisted with solution to ongoing question regarding scheduling, vacations and time off. It oversaw the shift bidding process and communicated the program to the center. It identified the impact of missing staff on service occupancy and cost and gave out recommendation of how to deal with those cases.
It supported the reward and the consequence programs that would support adherence goals and strategies that would be used to solve the problems of the organization. The cash flow of the Banks The Sun Trust bank enhanced its online cash management services by offering small and mid market business to the users and also they gave them the chance to transfer payment and make cash advances among business checking accounts and loans for lines of credit to as to serve as many customers as possible hence increased the returns of the company.
The small business clients were granted credit services that would ensure that they made the customers to access the finances of the bank at a faster rate than other banks thus made them to be more financial stable so that they could carry out their activities effectively. The M and T used the online account information services to provide the customers of the company with the real-time updates about the performance of the company and this facilitated the management of the cash flow and it could optimize on its working capital so that the operations of the company could carried out more effectively.
The Bank of America Global Treasurer announced that it had launched a Global Treasury Director, a new web that would enable the management of cash in an effective manner so that it would give the companies comprehensive view of the cash flow position that would result in enhanced control of cash, improved liquidity management and the effective concentration and investment of cash so that they would not face financial problems.
The investment banking corporation would provide innovative services such as the management of equity and capital lending and trading, risk management and treasury management and research. The financial analysis of the banks The financial analysis of Sun trust Bank stated that the forward looking statements that were related with the financial and business matters were subjected to various assumptions, risks and uncertainties so that the company would provide accurate financial statements.
The bank of America was the largest company that had market capitalizations and earnings that were the highest in the United States of America thus it had the strongest performance in the region thus the financial an analysis of the bank would be used by other to determine the financial position of the bank and whether to rely on it when making financial decisions.
The financial analysis reports of the M and T bank enabled the consultants ,financial managers, strategic planners, and the corporate officers to learn about the importance of the company so that they could have determined on whether to rely on the company so that it could give it services and effective manner. The Bank of America was rated as the best bank among other banks because it would protect its customers in cases where there were fraud problems and these gave the customers the assurance that their money was safe hence they invested in the bank.
The bank of American strong performance was attributed to improved systems and processes that would be able to manage risk and reward a cross broad employees who worked in the company so that they could manage the risk. The bank offered full range financial solutions to their customers needs thus was in a better position to increase the returns of the bank since it handled its employees effectively. Reference: Rob, H. ( 1998), “A New Leader for SunTrust: But No Switch in Direction,” Atlanta Journal and Constitution, February 11, p. E1. Knight, J.
(1996) SunTrust’s Earnings for 4th Quarter Rose despite Its Expenses, America,” Wall Street Journal, January 10,, p. B4. Tippett, Karen L. , (1996,) “Florida Journal: Signing Off: SunTrust Preserves Plastic,” America Wall Street Journal, p. F2. Premium Company Profile: Bank of America Corporation (2008) ICON Group Ltd. http://209. 85. 215. 104/search? q=cache:DTnIA4pU25AJ:www. datamonitor. com/industries/research/%3Fpid%3DDBFS0031+financial+analysis+of+bank,of+america&hl=en&ct=clnk&cd=10&gl=ke&client=firefox- Website accessed on June 13, 2008