UPDATE: BB&T Posts Downbeat Q2 Earnings, Shares Drop

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Shares of BB&T
BBT
tumbled more than 5% in pre-market trading after the company reported weaker-than-expected second-quarter earnings. The bank's quarterly profit dropped to $425 million, versus a year-ago profit of $547 million. On a per-share basis, its earnings fell to $0.58 from $0.77. The latest quarter results were affected by mortgage and tax-related reserve adjustments with an impact of $0.12 per share. Its revenue slipped 7.5% to $2.31 billion. However, analysts were expecting earnings of $0.74 per share on revenue of $2.31 billion. The bank's loan portfolio rose 2.5% to $117.11 billion, while commercial loans gained 2.7% to $39.4 billion. Its net charge-off rate fell to 0.40%, versus 0.75% in the year-ago period. Average deposits rose 12% on an annualized basis, while noninterest-bearing deposits gained 14%. Noninterest expense rose $55 million versus the earlier quarter to $1.6 billion. Chairman and Chief Executive Officer Kelly S. King said, "While BB&T's results for the second quarter were negatively affected by mortgage and tax-related charges, our core results were strong, including 7% annualized growth in average loans and 12% annualized growth in average deposits during the quarter. In addition, revenue grew 3% annualized compared to last quarter, and credit quality continued to improve." BB&T shares fell 5.48% to $36.77 in pre-market trading.
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Posted In: EarningsNewsprofit
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