Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

SunTrust Banks, Inc. (STI - Analyst Report) plans to shutter nearly 40 of its branches in the first quarter of this year. The CEO of the company announced the plans to trim branch network on Mar 5 at a U.S. Financial Services Conference held by Citigroup Inc. (C - Analyst Report).

As per a Securities and Exchange Commission filing on Mar 5, SunTrust expects to bring down the total number of branches to 1,580 by the end of the current month from 1,616 at the end of 2012.

Besides the closure of these branches in the first quarter, the company expects more closures in 2013. Most of the closures are anticipated to come from the company’s in-store network. It expects to cut down the overall number of grocery store partners, but retain strategic partnerships with key departmental stores including Wal-Mart Stores Inc. (WMT - Analyst Report), Safeway Inc. (SWY - Analyst Report) and The Kroger Co.

The decision to shut down branches comes after a thorough evaluation of branch infrastructure following the migration of clients to self-service avenues like mobile banking and online banking, which reduced cost extensively.

In 2012, SunTrust closed 43 branches as a part of its cost cutting measures. Under these measures, the company also retrenched 2,400 employees and slashed the pay of the existing ones. Since 2010, the branch workforce has been reduced by nearly 10%.

SunTrust is not the only bank that has adopted branch closures and retrenchments to boost the top line. Both big and small financial institutions have been resorting to such strategy amid a bleak macro economic environment.

Currently, SunTrust retains Zacks Rank #3 (Hold).

 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RAMBUS INC RMBS 12.45 +5.60%
DIXIE GROUP DXYN 15.49 +5.52%
BOFL HOLDING BOFI 85.51 +5.23%
NETFLIX INC NFLX 345.84 +4.35%
E COMMERCE C DANG 12.53 +3.73%