SunTrust Banks, Inc. (NYSE:STI) early Friday posted market-beating first quarter earnings results, as the company benefitted from higher interest rates.
The Atlanta-based banking giant reported Q1 earnings per share (EPS) of $0.91, which was $0.07 better than the Wall Street consensus estimate of $0.84.
Revenues rose 7.1% from last year to $2.25 billion, also beating out analysts’ view for $2.21 billion.
STI said its net interest margin reached 3.09% in the latest period, up 9 basis points on a sequential basis, and up 5 basis points year-over-year, amid higher interest rates. Meanwhile, its provision for credit losses rose by $18 million following the prior period’s reserve release.
The company commented via press release:
“Our performance this quarter is the direct result of the investments we have been making in strengthening our franchise and diversifying our business mix,” said William H. Rogers, Jr., chairman and CEO of SunTrust Banks, Inc. “2017 is off to a good start and we remain committed to investing in client growth, improving efficiency, and increasing capital returns.”
SunTrust Banks, Inc. shares were mostly flat in premarket trading Friday. Year-to-date, STI has gained 1.61%, versus a 5.74% rise in the benchmark S&P 500 index during the same period.
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