One of the largest regional banks in the nation, SunTrust Bank, is the holding company and publicly listed arm of SunTrust Banks (STI).
Consumer banking and private wealth management, wholesale banking, and mortgage banking are the three main areas of banking that SunTrust focuses on.
Despite the fantastic results SunTrust produces, there is at least one issue to be aware of. Consider making an investment in SunTrust. Seven things you should know are as follows:
Most 5 Important things you should know about Suntrust Bank
1. SunTrust is larger than you realize.
You may visit the National Information Center of the Federal Reserve to find that SunTrust is the nation’s 17th-largest bank holding company, surpassing both American Express and Deutsche Bank. Size in and of itself is meaningless, but when employed well, it may assist produce income and profit much in excess of a smaller competitor.
2. Outstanding share price performance in the previous year
SunTrust has given its stockholders a return of 49.24% since June 12, 2012. Bank of America (BAC 1.00%), a favorite among investors, has indeed gained 83.79% over the last year, but this exceptional return comes at the expense of increased balance sheet and share-price volatility.
3. Strong share price performance year to date
The return on SunTrust stock over the previous six months has been 10.22%, which is not far behind B of A’s own 11.22% performance. Since the beginning of 2012, B of A stock has been on a meteoric rise, but this trend cannot continue indefinitely.
4. A strong return on equity
The return-on-equity, or ROE, metric measures managerial effectiveness and provides a rough estimate of how much profit a business makes using shareholder capital. The ROE for SunTrust over the last 12 months is an outstanding 10.50%. JPMorgan Chase, is a lean, mean, profit machine (JPM 1.91%), with an ROE that is just marginally higher: 11.55% TTM.
5. Affordable pricing
The price-to-book ratio for SunTrust is 0.85, making it a tempting investment without raising red flags. In relation to that, B of A’s P/B is 0.66, which is very low and should raise red flags. The P/B for Wells Fargo (WFC 0.90%) is 1.46.
The amount is high enough to possibly make Wells an unappealing purchase: too pricey, despite the fact that the bank is rightfully regarded as one of America’s top-notch institutions.
The bank’s substantial net income increase is thus due in part to internal cost reduction. You can only remove a certain amount of fat before you start removing muscle, so you can’t continue doing it forever.
Shareholders won’t continue to have this kind of sky-high income increase if SunTrust doesn’t start increasing its revenue.
What is Suntrust Consumer Loan?
I felt it was important to let you know about the great loan programs offered by Suntrust Bank, one of Nigeria’s newer-generation Deposit Money Banks.
Suntrust, which was founded in 2009, wants to expand its customer base by providing competitive and adaptable consumer lending solutions.
They have also shown considerable perseverance in attempting to reach the unbanked populace via their agency banking arrangement.
Suntrust Consumer Loan is a wise method to borrow money from the bank without having to worry too much about filling out a tonne of paperwork.
The fact that Suntrust Consumer Loans are not particularly focused on the goal of borrowing is another fantastic feature. In reality, I will now list all of the observable benefits of consumer loans below:
- Minimal documentation
- Flexible purpose of loan
- Payments are fixed, prompt, and are done monthly
- No origination fees
- No annual fees
- Interest rates are competitive
- Part/full liquidation can be done anytime at a FREE cost
Which kinds of consumer loans are available?
Suntrust Personal Loan may be used for things like debt consolidation, relocation costs, vacation or travel costs, unforeseen expenditures, home upgrades, wedding costs, and other things.
Finance of Assets
Suntrust Bank offers a variety of ways for its clients to easily acquire the assets of their choosing from the bank’s prequalified suppliers.
Key Elements
- affordable interest rates
- 24 months for other assets and up to 48 months for autos.
Requirements
- Must be a verified employee of your company, unless they are independent contractors
- Self-employed individuals must have operated a profitable company for at least 24 months.
- It is required to provide clear credit reports.
Loan to Smart Employee
This product is intended to make personal loans more accessible to verified employees of certain private firms and governmental organizations, whose staff pay accounts are held by the bank.
Key Elements
- 36-month facility tenor maximum
- Pleasant Interest Rate
Requirements
- The applicant’s age must fall between 18 and 55.
- The applicant must have a BVN, have an account connection with SunTrust Bank for at least one month, and have his or her pay domiciled there.
- The applicant must be a verified employee of the pre-approved business or government agency with a regular and verifiable source of income and must have spent at least six months working for the same employer.
- a good credit history
In advance
With the use of this product’s overdraft facility, retail clients who satisfy certain requirements and have a job may overdraw their accounts to cover immediate expenses.
Key Elements
- Tenor is 30 days or till the next pay period.
- Affordable interest rates
Requirements
- The applicant’s age must fall between 18 and 55.
- The customer should get a salary of at least N25,000.00.
- The customer’s credit records must be unblemished.
Loans backed by a cash
Customers of the Bank are now able to utilize cash deposits (FCY/LCY), FGN Securities, and/or investments that they have given or obtained from other parties as collateral for lending facilities.
Key Elements
- up to a 12-month term.
- Interest rate: Negotiable (for facilities collateralized by cash deposits, a minimum margin of 6% per year must be maintained).
Requirements
- signed agreements for the cash/investment collateral and letter of set-off.
- The client must provide a rollover instruction on the investment collateral throughout the specified term if the tenor is more than one year or the investments have shorter tenors than the facility.
- There will be clear credit reports accessible.
Conclusion:
One of the best deposit banks in Nigeria for the new generation is Suntrust Customer Loans, which also offers a clever approach to borrowing money from the bank with little to no documentation and a clear emphasis on the objective of borrowing.
