...Rating Watch Positive: Fitch's placement of SunTrust Banks Inc.'s (STI) ratings on Rating Watch Positive reflects the potential merger of equals (MOE) with BB&T Corporation (BBT), a higher rated bank. Fitch expects that over time, the combined entity's performance and risk profile would support a higher rating than STI's current rating. The proposed MOE would create a bank with $442 billion in assets at close, the sixth largest bank holding company in the country. The consideration for this proposed all-stock merger is an exchange ratio of 1.295 BBT shares for each STI share, and the transaction is projected to close in 4Q19, pending shareholder and regulatory approvals. Earnings Performance Improvement: STI's net income for 2018 was $2,775 million, up from $2,273 million in 2017. Return on average assets (ROAA) and return on average equity (ROAE) improved from 1.11% and 9.41% at year-end 2017 to 1.34% and 11.40% at year-end 2018, respectively. Despite tangible improvements over the past...
