SunTrust Banks Q2 Profit Rises - Quick Facts

(RTTNews) - SunTrust Banks Inc. (STI) reported second-quarter net income available to shareholders of $365 million, or $0.68 per average share, compared to $270 million or $0.50 per share last year.

On average, 29 analysts polled by Thomson Reuters expected the company to report profit of $0.67 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue was $2.10 billion, a decrease of 7%, due primarily to lower net interest income, mortgage-related revenue, and trading income, which were partially offset by a reduction in the mortgage repurchase provision. Analysts expected revenue of $2.16 billion for the quarter.

Net interest income was $1.2 billion for the current quarter, a decrease of $64 million compared to the second quarter of last year. The decline was driven by lower earning asset yields, a decrease in commercial loan-related swap income, and the foregone dividend income related to the third quarter of 2012 accelerated termination of the agreements regarding the shares formerly owned in The Coca-Cola Company, the company said. Partially offsetting these declines in interest income was lower interest expense due to decreases in deposit rates, a reduction in long-term debt, and a favorable deposit mix shift.

Total noninterest income was $858 million for the current quarter, compared to $940 million for the second quarter of last year. Compared to the second quarter of last year, the $82 million decrease was primarily driven by declines in mortgage-related income, trading income, and securities gains, which were partially offset by a reduction in the mortgage repurchase provision.

"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 Rogers, Jr., chairman and chief executive officer of SunTrust Banks, Inc.