UPDATE: SunTrust Posts Surge In Q3 Profit

SunTrust Banks

reported a strong rise in its third-quarter profit. The Atlanta, Georgia-based company posted a quarterly profit of $563 million, or $1.06 per share, versus a year-ago profit of $179 million, or $0.33 per share. Excluding certain items, its earnings rose to $0.81 per share from $0.66 per share. Its revenue climbed 5.8% to $2.03 billion. However, analysts were expecting earnings of $0.81 per share on revenue of $2.07 billion. Noninterest income climbed to $780 million from $680 million. Its loan portfolio climbed 6.3%, while noninterest expenses rose 37% y/y. Total loans rose 6% versus September 30, 2013, while average client deposits gained 4% versus the year-ago quarter. During the quarter, SunTrust Banks repurchased $215 million of common shares. "We delivered solid performance this quarter driven by increased client loan and deposit business, further efficiency improvements, and continued strong asset quality performance, which helped mitigate the impact of the continued challenging low rate environment," said William H. Rogers, Jr., chairman and chief executive officer of SunTrust Banks, Inc. SunTrust shares rose 0.60% to close at $34.94 yesterday.