Deals and IPOs

M&A activity may actually go down under Trump, Suntrust CEO Bill Rogers says

SunTrust CEO on banking sector outlook

The new administration's pro-business slant may slow merger and acquisition activity in the banking sector thanks to policies that may embolden companies to perform strongly on their own, SunTrust Chairman and CEO Bill Rogers told CNBC on Tuesday.

"It gives everybody more capacity within their own company," the executive told "Squawk Box."

It's no secret that banks will benefit from President-elect Donald Trump's pro-growth measures, which include rolling back regulations that dampen M&A activity in the financial sector.

Paired with a steepening yield curve and rising interest rates, which indicate a pickup in economic growth and therefore more optimism in the markest, the new administration's policy proposals could bring about a wave of M&A activity.

But for SunTrust, Rogers said the changes would allow the bank to see some of its longer-term investments play out instead.

"We feel great about the investments we've made," Rogers said. "What this gives us is an opportunity to realize on those investments."

But it may take a long time for banks to see the payoff of deregulation in the financial sector, Rogers said.

On the shorter term, the executive said he looks forward to the potential in broader pro-growth measures as well as a long-awaited hike in interest rates, expected to come in December.

"If we have higher growth, banks are going to participate in that and lead that in many ways," Rogers said.