SunTrust Q2 Results Show Asset Quality Improvement
SunTrust Banks reported Q2/13 net income of $365 million, up 35% from $270 million in the same quarter in 2012. The bank said results were driven primarily by a provision charge that was $154 million lower than Q2/12 and a 10% decrease in noninterest expense.
The company noted that asset quality continued to steadily improve during the quarter, including further decreases in nonperforming loans and nonperforming assets, both of which reached their lowest levels since the third quarter of 2007. Net charge-offs were $179 million in Q2/13, down from $350 million in Q2/12.
Total revenue was $2.10 billion, down from $2.23 billion for the same quarter one-year ago. SunTrust said revenue was down due primarily to lower net interest income, mortgage-related revenue and trading income.
“Earnings growth was driven most notably by the ongoing improvement in credit quality, in addition to a ten percent decrease in noninterest expense from last year,” said William H. Rogers, Jr., chairman and chief executive officer of SunTrust Banks, Inc. “Improving economic conditions are now starting to create a more favorable operating environment, particularly in our markets, and we remain focused on executing against our strategic priorities to help generate future opportunities for SunTrust.”
To read the full SunTrust Banks news release: click here.