BB&T 2012 Annual Report Download - page 13

2012 Annual Report
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Relationships also form the basis of BB&T’s Perfect Client
Experience – service that is reliable, responsive, empathetic and
competent. We know that we have to deliver that experience
with every client, every day. It defines the BB&T brand, which
has served us well for 141 years and continues to serve as
our calling card as we enter and expand in new markets such
as Florida and Texas.
Ensure a Strong Associate Value Proposition
A value proposition with our associates built on a relationship of
trust is an essential part – actually, a precondition – of building
a trusting relationship with our clients.
At BB&T, valuing associates starts with a positive work
environment. During a time when many banks have cut staff
and benefits to restore profitability, BB&T has continued pay
raises, extensive health and wellness benefits and a retirement
program offering both a pension and employer-matched
401(k) plan. Our associate training program is ranked No. 1
in the financial services industry by Training Magazine. Our
associate turnover rate in our community bank is low – less
than 17%, down from 23% four years ago – which in turn creates
a consistent experience for our clients.
But delivering on our value promise to associates requires
more than pay and benefits. We believe our ultimate leadership
challenge is to teach BB&T’s values. If values aren’t shared, they
aren’t lived. We are relentless and consistent in communicating
BB&T’s values to our associates. Those core values haven’t
changed in 20 years: Character that depends on honesty
and integrity; judgment that requires reason, recognizing
reality and independent thinking; success that results from
productivity, teamwork and justice; and ultimately happiness,
which is built on self-esteem and pride.
In difficult times, clarity of focus is essential to guide a company.
During the last five years of turmoil and uncertainty, BB&T
has stayed on course because we all share the same beliefs. For
example, our relationships with clients are built on trust – and
trust depends on absolute honesty. That helps us determine
what is right and reasonable. If something sounds right, we say
so. If something feels wrong – such as an exotic mortgage that
a client cannot afford in the long run – we say so and together
we walk away.
Particularly now, when so many of our clients and neighbors
are struggling, we believe we can make a positive, meaningful
difference. Our associates have made that difference most
dramatically with our annual Lighthouse Project, contributing
more than 200,000 hours and completing more than 4,400
community projects since 2009. The projects have ranged from
helping a food bank in New Bern, N.C.; shelters for abused
children and women in Atlanta and Palm Beach County,
Fla.; a substance abuse recovery organization for men in
Winston-Salem, N.C.; a children’s camp near Charlotte and
a disabilities foundation in Florence, S.C., to name just a few.
For a remarkable example of our associates’ commitment to
their clients and communities, please see the next page for
the story of Daphne Dvorak, our receptionist in Fairhope,
Alabama. At 88 years young, “Ms. Daphne” finds joy in
greeting and helping everyone she encounters in her hometown
where she started her banking career 70 years ago.
I have never been prouder of our associates, and their
commitment to the economic success and overall well-being
of our clients, communities and shareholders.
Accelerate Revenue Growth in a Tough Environment
We believe the key difference that defines the best-performing
banks is strong revenue growth. Further, we believe the best way
to sustain and build on that growth is to diversify our sources of
revenue. At BB&T, diversification starts with a balance between
our Community Bank, concentrated in our vibrant Southeast
and Mid-Atlantic markets, and the national scale businesses we
are building in high-growth areas such as mortgage banking,
capital markets and specialized lending.
Delivering all Components of Profitability
Among the Industry’s Most Efficient Banks Strong Fee Income Ratio
BB&TBB&T PeersPeers
The efficiency ratio reflects the cost to produce
each dollar of revenue, expressed as a percentage,
i.e., lower percentages represent more efficient
operations.
A higher fee income ratio indicates a bank is
producing more of its net operating revenue from
noninterest income and has more diverse sources
of revenue.
Excludes securities gains (losses), foreclosed property
expense, amortization of intangible assets, merger-related and
restructuring charges, the impact of FDIC loss share accounting,
and other selected items.
Peers include CMA, FITB, HBAN, KEY, MTB, PNC, RF, STI, USB
and ZION.
Source: SNL and Company Reports