SunTrust Q4 Profit Soars on Noninterest Income
SunTrust Banks reported net income of $350 million for the fourth quarter of 2012 compared to net income of $71 million in the same quarter one-year ago. The bank said the increase was primarily due to higher noninterest income, which was up $310 million from the prior year and included “record” investment banking income. The bank said excluding securities gains, revenue increased $262 million from the prior year.
Compared to December 31, 2011, the bank said nonperforming loans declined $1.4 billion, or 47%, with reductions across all loan categories, most significantly in residential mortgages, commercial construction, and commercial real estate. At the end of the fourth quarter of 2012, the percentage of nonperforming loans to total loans was 1.27%, down from 1.42% and 2.37% at the end of the prior quarter and the fourth quarter of last year, respectively.
“Favorable performance trends continued, including strong noninterest income and lower expenses, marking another quarter of core earnings expansion,” said William H. Rogers, Jr., chairman and chief executive officer of SunTrust Banks. “We concluded the year in an even stronger position, driving higher revenue and efficiency gains, while further improving our overall risk profile.”
To read the SunTrust news release click here.