Jan 17 Regional bank BB&T Corp's
fourth-quarter profit beat analysts' estimates by a small
margin, as higher demand for refinancing drove its mortgage
Home owners in the United States are rushing to lock in low
interest rates by refinancing their loans, helping banks earn
higher mortgage fees and post strong revenues.
BB&T's mortgage banking revenue rose 71 percent to $231
Net income available to common shareholders rose to $506
million, or 71 cents per share, in the fourth quarter, from $391
million, or 55 cents per share, a year earlier.
Analysts on average were expecting earnings per share of 70
cents, according to Thomson Reuters I/B/E/S.
Commercial and industrial lending rose 8 percent to $38
billion, while residential mortgage lending rose 19 percent to
"Despite a challenging environment and seasonal headwinds,
average loans held for investment continued to grow. The
increase was led by C&I (commercial and industrial), direct
retail and residential mortgage", Chief Executive Kelly King
said in a statement.
The southeastern U.S. bank, which has a market value of more
than $22 billion, emerged from the financial crisis as one of
the strongest lenders in the region, avoiding many of the real
estate problems faced by its peers.
Shares of the Winston-Salem, North Carolina-based bank
closed at $30.31 on Wednesday on the New York Stock Exchange.