BB&T 4Q16 Earnings Call Notes

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Kelly King

Meaningful investment in the second third and fourth quarter

” we actually are very optimistic about the economy going forward. It will take a little while for it to get going, but look we are going to have lower taxes, less regulation. It’s really a big deal. Optimism is up. I have been talking a lot to clients and to our RPs, regional presidents in the last several weeks, including yesterday, and clearly, CEOs optimistic. They are making plans to invest and we really think this is going to kick into a meaningful improvement in investment and job growth as we head into the second and third and fourth quarter.”

The message is consistent that businesses are gearing up to invest

“So Gerard, it’s actually very broad-based. In fact, I did a survey, because I was going to the Goldman Conference back here a few weeks ago and I did a survey from all of our 26 Presidents across our entire 15 states and asked them to talk to a few of their clients to see what they were thinking, because I like to write real-time feedback and their feedback was absolutely consistent across the board that everybody was optimistic. They were making plans to invest. And it’s exactly what we thought, new drugs, new computers, some expansions. I met with some regional Presidents in person yesterday and got a real current update and the message was very, very consistent. They gave me a number of anecdotes in terms of individual companies that were already requesting loans to buy trucks to expand their plan to expand their inventory, etcetera. So it is, in fact, happening. It’s across the footprint. It is what I would call Main Street America, which was exactly where we play the best.”

You could have 3-4% GDP growth in 2018

“Yes. I think GDP will ramp from the 2% kind of range to 3% to 4%. I don’t think it will get to 3% to 4% for this full year. It may be getting to 3% to 4% by the end of the year on a run rate, but if you get to ‘18, I think you have got very good chance of a 3% to 4% kind of run rate for the entire year. So it will be a building year in terms of GDP, it will be a building year in terms of loan growth and so the whole year of ‘17 won’t be as strong as the whole year of ‘18 will be.”

Daryl Bible

Short term rates should get close to 3%

“If you listen to Chairman, Yellen’s speech yesterday, she is clearly in the camp that she thinks short-term rates should get up close to 3%. Whether that gets fair enough, we will see, but it’s definitely going higher. We will see what happens to the longer end of the curve.”