SunTrust Q1 Earnings Beat Estimates

SunTrust Banks, Inc.

reported better-than-expected earnings for the first quarter. The Atlanta, Georgia-based bank posted quarterly earnings of $429 million, compared to $405 million, in the year-ago period. On a per-share basis, its earnings climbed to $0.78 from $0.73. Its revenue slipped 2 percent to $1.99 billion. However, analysts were projecting a profit of $0.72 per share on revenue of $2 billion. Mortgage production-related income climbed to $83 million for the current quarter, versus $43 million in the year-ago quarter. Mortgage servicing-related income fell to $43 million from $54 million, while investment banking income rose to $97 million from $88 million. Trust and investment management income slipped to $84 million in the current quarter, compared to $130 million in the year-ago quarter. Average total loans climbed 3.7 percent to $133.3 million, while average client deposits gained 9 percent. Net interest margin shrank to 2.83 percent from 3.19 percent. Noninterest income gained to $817 million from $791 million, while net interest income declined to $1.18 billion from $1.24 billion. At March 31, 2015, SunTrust had total assets of $189.9 billion and shareholders' equity of $23.3 billion. "Continued expense discipline and strong asset quality performance, coupled with growth in noninterest income, contributed to solid performance in the first quarter and helped to mitigate the impact of the persistent low rate environment," said William H. Rogers, Jr., chairman and CEO of SunTrust Banks, Inc. "As we look forward, we remain focused on deepening client relationships and executing our strategic priorities, particularly improving returns and efficiency, to further enhance shareholder value." The average estimate among 14 Estimize users was for earnings of $0.74 per share and revenue of $1.99 billion. SunTrust shares fell 1.71 percent to close at $41.41 yesterday.