Strong revenue and lower credit costs boosted first-quarter earnings at SunTrust Banks (STI), the Atlanta company said Monday.
The $178.2 billion-asset company's net income more than tripled from the fourth quarter and rose 39% from a year earlier, to $245 million. Revenue rose 8% from the fourth quarter and 3% from a year earlier, to $2.2 billion.
"Our core performance this quarter … marked a continuation of the improved momentum we built during 2011," William Rogers Jr., SunTrust's chairman and chief executive, said in a press release. "Improved revenue, as well as continued favorable trends in loans, deposits, and credit metrics were hallmarks for the quarter."
Total loans rose slightly from the fourth quarter and 7% from a year earlier, to $122.7 billion. Growth in commercial lending as well as guaranteed student loans and guaranteed mortgage loans contributed to the improvement. The net interest margin expanded 3 basis points from the fourth quarter but shrank 4 basis points from a year earlier, to 3.49%.
Overall, net interest income rose 1% from the fourth quarter and 5% from a year earlier, to $1.3 billion.
The provision for loan losses fell 3% from the fourth quarter and 29% from a year earlier, to $317 million. Net chargeoffs declined 11% from the fourth quarter and 26% from a year earlier, to $422 million. Nonperforming loans totaled $2.6 billion at March 31, compared with $3.9 billion a year earlier.
Noninterest income rose 21% from the fourth quarter and remained relatively flat from a year earlier, at $876 million. The company attributed the improvement to strong mortgage refinancing activity.
Noninterest expenses fell 8% from the fourth quarter and rose 5% from a year earlier, to $1.5 billion.
SunTrust disclosed that it had cut 567 positions during the fourth quarter.
Register or login for access to this item and much more
All Bank Investment Consultant content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access