SunTrust Reports Second Quarter 2012 Results PDF (With Tables)
Core Performance Momentum Continues, Drives Earnings Per Share of $0.50 ATLANTA, July 20, 2012 /PRNewswire/ -- SunTrust Banks, Inc. (NYSE: STI) today reported net income available to common shareholders of $270 million, or $0.50 per average common share, for the second quarter of 2012. Earnings per average common share increased by $0.04 from the first quarter of 2012 and by $0.17 from the second quarter of 2011. For the first half of 2012, SunTrust earned $0.96 per share compared to $0.41 per share earned in the same period last year.
"We delivered another quarter of improved results marked by solid noninterest income growth and increased average performing loan balances, which were up nearly $10 billion from the second quarter of last year," said William H. Rogers, Jr., chairman and chief executive officer of SunTrust Banks, Inc. "We remain focused on executing our strategies to drive better core performance and efficiency across the organization."
Second Quarter 2012 Financial Highlights
Continued improvement in core business fundamentals helped drive net income available to common shareholders of $270 million. Revenue grew 1% and 2% compared to the prior quarter and the second quarter of 2011, respectively. Net interest income declined 3%, and the net interest margin declined ten basis points compared to the first quarter of 2012, primarily as a result of the anticipated reduction in swap-related interest income. Compared to the second quarter of 2011, net interest income increased 2% primarily due to higher loan balances and favorable trends in deposit mix and pricing. Noninterest income increased 7% and 3% compared to the prior quarter and the second quarter of 2011, respectively, due primarily to higher mortgage production income as strong production volumes continued through the quarter. Noninterest expense was relatively unchanged from the prior quarter and the second quarter of 2011. The current quarter included a $13 million non-cash debt extinguishment charge related to the previously announced redemption of higher cost trust preferred securities. Balance Sheet
As a result of targeted loan growth, average performing loans increased $1.1 billion over the prior quarter and $9.7 billion compared to the second quarter of 2011, while certain real estate-related loan portfolios continued to decline. Average client deposits remained steady at the record levels achieved in the prior quarter, and favorable mix trends continued. Average demand deposits increased 3% and 23% on a sequential quarter and prior year basis, respectively. Capital
Estimated capital ratios continue to be well above current regulatory requirements. The Tier 1 common equity ratio increased to 9.40%. In its revised capital plan submission in conjunction with the 2012 CCAR process, the Company elected to not request any incremental return of capital due to the close proximity of the resubmission to the 2013 CCAR process, which is expected to commence in the fourth quarter of 2012. Asset Quality