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Chart 15: Would you want to see ASB partner with emerging online lenders to augment organic growth? 70% 60% 50% 40% 30% 20% 10% 0% Yes, partnership with online lenders provides a No, given the uncertainty around how these good source of loan growth loans will perform during a credit downturn Source: BofA Merrill Lynch Global Research BB&T (BBT), B-1-7, Buy Pent up demand in small and middle market corporates. COO Chris Henson was upbeat with regards to the growth outlook for the US economy post the US elections, particularly from middle market companies that have been extremely cautious around making investments over the last few years. Mr Henson noted that as business confidence rises on back of potentially stronger job growth and lower tax reductions, BBT should see strength across its core banking operations. ¢ Out of M&A in the near term but looking to grow long term. Management reiterated that it is out of the M&A game for now as it looks to execute on delivering its targeted synergies from recent deals. That said, management expects to eventually engage in M&A deals with BBT having the infrastructure for double its size, noting that scale has become important in the current regulatory landscape. When asked where investors would like BBT to focus on doing deals, 59% noted that it would like management to pursue fee related businesses while 23% would like management to prioritize dividend maximization. Chart 16: Do you expect the deal activity in financial services to pick up Chart 17: Once M&A is back on the table, where would you like to see in 2017? BBT focus on doing deals? 100% 70% 9 90% a 60% 9 80% 50% 70% 9, 60% 40% 50% 30% 40% 20% ona 10% 20% 13% : (‘] 0% 10% Depository deals Fee-related Would rather they 0% businesses prioritize maximizing Yes No the dividend Source: BofA Merrill Lynch Global Research Source: BofA Merrill Lynch Global Research ¢ Well positioned from rising rates. Given the outlook for higher interest rates on both the short and long end of the curve, Mr. Henson noted that while BBT tries to maintain a relatively neutral balance sheet, it would expect to see upside in the margin on back of higher rates. Additionally, higher long rates could also help drive Bankof America 2 2016 Future of Financials Conference | 17 November 2016 11 Merrill Lynch HOUSE_OVERSIGHT_014325