SunTrust's Profit Falls Hurt By Higher Costs, Credit Loss Provision

Date : 07/18/2019 @ 10:55AM
Source : Dow Jones News
Stock : SunTrust Banks Inc (STI)
Quote : 70.52  0.0 (0.00%) @ 9:20AM

SunTrust's Profit Falls Hurt By Higher Costs, Credit Loss Provision

SunTrust Banks (NYSE:STI)
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6 Months : From May 2019 to Nov 2019

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   By Allison Prang 
 

Net income at SunTrust Banks Inc. (STI) fell as noninterest expenses and the company's provision for credit losses rose.

SunTrust reported a profit of $688 million, down 4.7% from the comparable quarter a year prior. Earnings were $1.48 a share, down from $1.49 a share. Analysts polled by FactSet were expecting $1.44 a share.

The company said its earnings results include a three-cents a share hit from impacts related to merging with BB&T Corp. The company also said it had a $205 million insurance settlement benefit from claims related to the financial crisis and that it donated that amount to its foundation.

Total revenue rose 10% to $2.56 billion. Analysts were expecting $2.39 billion.

Noninterest expense rose 18%, hitting $1.64 billion. The company's provision for credit losses also rose to $127 million, up from $32 million the comparable quarter a year earlier. It was down compared with the first quarter of this year, when the provision was $153 million.

"The interest rate environment certainly became more challenging in the second quarter, which offset some of our core business progress," Chief Executive William Rogers Jr. said in prepared remarks.

 

Write to Allison Prang at allison.prang@wsj.com

 

(END) Dow Jones Newswires

July 18, 2019 06:40 ET (10:40 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.

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