BB&T Q1 Profit Rises 8%, Tops Estimations

BB&T Corporation BBT said its first quarter net income grew 8.0 percent to $527 million or $0.67 a share. Excluding adjustments, net income would have been $542 million or $0.69 per share, which beat the Street analysts' expectations of $0.64 a share. In comparison, net income in the year-ago quarter was $488 million or $0.67 per share.

The company said that its total revenues increased by $240 million to $2.6 billion in the first quarter driven by strong revenues and excellent cost control allowed it to achieve strong results. Street predicted revenue of $2.58 billion.

BB&T Corporation's Chairman and CEO, Kelly King, said "We are pleased to report record net interest income and solid overall performance for the first quarter. Our strategic acquisitions and organic growth have helped us grow our market share while maintaining low funding costs, and we achieved positive operating leverage from the fourth quarter.

He added "We also successfully completed the acquisitions of National Penn and Swett & Crawford on April 1st. National Penn had 126 financial centers in Pennsylvania, New Jersey and Maryland, with approximately $9.6 billion in assets and $6.6 billion in deposits. Swett & Crawford enhances our wholesale property and casualty insurance business and adds more than $200 million in annual revenues. These acquisitions will drive improved efficiencies and stronger earnings in the future."

The CEO concluded by saying "We are also pleased to announce U by BB&T now has more than 1.4 million active users. Since its introduction last October, we've experienced a rapid adoption rate, particularly from our younger client base. We are pleased to see clients of all ages engaging with our free, customizable digital banking platform."

On Wednesday, the stock traded up 1.44 percent.