Implementation Program: 2005 – 2006



  • BB&T is the tenth largest financial services holding company in the U.S. and one of the most principled organizations in the world
  • In the early 2000s, BB&T expanded organically and via several large acquisitions into select product markets and geographies. By 2005, the bank was focused on improving operating efficiencies, strengthening its balance sheet and optimizing performance of its businesses. However, despite significant progress, the bank was not producing leading shareholder returns
  • John Allison and Kelly King, who were then CEO and COO respectively, began efforts to enhance the bank’s management framework and capabilities for developing strategies, allocating resources and managing performance


  • Evaluated the concentrations of economic profit and economic profit growth opportunities across the bank’s portfolio of businesses, products and customer segments
  • Using that assessment, the executive team established a value growth agenda to capture the largest economic profit growth opportunities in the retail banking, commercial banking and insurance businesses
  • Line management in each business developed strategies, plans and performance commitments to realize economic profit growth opportunities, for example through actions to:
    • Better segment customers and products
    • Focus resources on the segments with the best economic profit growth opportunities
    • Further differentiate product and service offers for target customers
    • Improve profitable cross sell within and across businesses
  • Established the internal strategy, resource allocation and performance management processes and capabilities to drive business model changes and sustain superior performance


  • During the financial crisis that began in 2007, BB&T sustained the highest organic revenue growth rate among its peers, delivering both superior loan and deposit growth while expanding its net interest margins and maintaining above-average credit quality
  • The bank also delivered returns on assets and on returns on equity well above peers, further strengthening its capital position and further reinvestment for growth in attractive product and geographic markets
  • As a result, BB&T delivered shareholder returns well above peers through the financial crisis, was one of only three banks that remained profitable during each quarter of the downturn and was among the first large banks to repay Troubled Asset Relief Program (TARP) funds