SunTrust Banks (STI) will close around 40 branches this quarter as it continues its efforts to rein in costs, its chief executive said Tuesday.
The Atlanta company is "trimming its branch network" and plans to shutter more branches in the future, Chairman and CEO William Rogers said Tuesday at the Citigroup U.S. Financial Services Conference.
More than half of the 40 closures will be in-store branches, and SunTrust plans to reduce its number of grocery-store partners, according to a transcript of Rogers' comments. SunTrust has historically retained more than 90% of deposits from branches it closes, he said.
SunTrust closed 43 branches last year, as part of a cost-cutting drive that also led the $169 billion-asset company to cut 2,400 jobs and reduce pay. SunTrust has 1,698 branches in the United States, according to the Federal Deposit Insurance Corp.
The company has reduced its branch staffing by about 14% since 2010, Rogers said.
SunTrust's plans to close 40 branches was first reported by the Atlanta Business Chronicle. A SunTrust spokesman confirmed the company's plans.
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