Banking executives are expecting new clientele and technology investment to flourish in the industry over the coming year after BB&T Corp. and SunTrust Banks Inc. announced plans on Feb. 7 for a $28 billion merger. Bloomberg reports the merger will create "the sixth-biggest commercial bank in the U.S. by assets."
In a joint statement, the banks explained their merger will involve consolidating branches and digital systems, which will eliminate 10% of current expenses. Money saved will then allow the company to invest more in technology, a goal it plans to accomplish with a newly established "Innovation and Technology Center."
"This is a true merger of equals, combining the best of both companies to create the premier financial institution of the future," BB&T Chairman and Chief Executive Officer Kelly S. King said in the bank's statement. "It's an extraordinarily attractive financial proposition that provides the scale needed to compete and win in the rapidly evolving world of financial services."
New clientele is also anticipated. The merger—to be completed by the end of 2019—will result in 60,000 employees and $440 billion in assets, Bloomberg states, as well as a return on tangible equity of 22%.
—Andrew Michaels, editorial associate