Foolish Forecast: No Respect for SunTrust

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Southeastern regional bank SunTrust (NYSE: STI) will report Q4 2006 financial results on Friday. Here's what to expect.

What analysts say:

• Revenues. Revenues are expected grow 6% to $2.05 billion.
• Earnings. Earnings are expected to grow $0.03 to $1.46 per share.

What management says:
New CEO Jim Wells took the helm on Jan. 1, replacing Phillip Humann, who will stay on as executive chairman. Wells, who served as chief operating officer for the past two years, sees opportunities for growth in small business banking and home equity loans, but maintains that he will not pursue growth just for growth's sake. He will also prioritize cost-cutting programs. Look for more details on these initiatives in the conference call.

What management does:
SunTrust's performance has not been impressive recently. The stock has lagged behind peers Wachovia (NYSE: WB) and Bank of America (NYSE: BAC) over the past five years. Looking at return on equity, it's easy to see why. At a Goldman Sachs industry conference, Wells said he is targeting a high-teens ROE. He must like a challenge.

	9/06	6/06	3/06	12/05	9/05
SunTrust	11.9	12.6	12.5	12.3	12.2
Bank of America	16.6	17.0	17.3	13.2	15.2
Wachovia	15.0	15.3	14.2	12.7	14.1
BB&T (NYSE: BBT)	14.6	15.5	15.6	15.4	15.9
Regions (NYSE: RF)	12.9	12.9	11.1	9.6	9.6

Quarterly ROE (%) provided by Capital IQ, a division of Standard & Poor's.

One Fool says:
SunTrust is one large bank that doesn't get much respect in Fooldom. Motley Fool Income Investor selected Bank of America and AmSouth (acquired by Regions) as top-performing banks, and BB&T was a Stocks 2006 recommendation. Even Wachovia is mentioned occasionally as a quality dividend play. But SunTrust is one company that we keep expecting more from.

Let's hope the new CEO can make things happen in 2007 and beyond.

More banking Foolishness:

• Expect More From SunTrust
• Fool on the Street: US Bancorp
• Fool on the Street: Putting the Group in Citigroup

Bank of America is an Income Investor recommendation. Take a free trial to see the Fool's top dividend-paying stocks.

Financial services editor Joey Khattab does not own any of the shares mentioned. The Fool has a disclosure policy.