* Q4 EPS $0.65 vs est $0.61
* Net interest margin down 10 basis points
* Q4 Mortgage production income $241 mln vs loss of $62
million year earlier
Jan 18 SunTrust Banks Inc posted a
profit for the fifth straight quarter as the bank set aside less
money to cover mortgage repurchase requests and earned more from
its investment banking business.
Net income rose to $350 million, or 65 cents per share, from
$71 million, or 13 cents share, a year earlier.
Analysts on average were expecting the regional bank to earn
61 cents per share, according to Thomson Reuters I/B/E/S.
Investment banking income rose to $112 million from $87
million, from a year earlier.
Mortgage production income rose to $241 million, compared
with a loss of $62 million a year earlier, as the bank set aside
less money for mortgage repurchase.
The bank had taken a $375 million charge in the third
quarter to cover requests from Fannie Mae and Freddie
Mac to buy back mortgages it sold to the regulators
Net interest margin - the difference between what the bank
earns on loans and pays out on deposits - fell 10 basis points
to 3.36 percent, as the U.S. Federal Reserve keeps interest
rates low to boost the economy.
SunTrust was part of the 10 mortgage servicers that agreed
to pay a total of $8.5 billion to end a U.S. government-mandated
case-by-case review of housing crisis
The settlement followed the "robo-signing" scandal that
emerged in 2010 involving allegations banks pursued faulty
foreclosures by using defective or fraudulent documents.
The bank's credit quality improved in the quarter, with
non-performing loans being 1.27 percent of its total loan book,
down from 2.37 percent a year earlier.
SunTrust, which suffered large losses due to the financial
crisis, was one of the four big U.S. banks whose capital plans,
including raising dividends and buying back shares, were
rejected by the Federal Reserve in March as part of its
The Fed did not object in August to SunTrust's revised
capital plan, which did not include dividend increases or share
Shares of the Atlanta-based lender, which have risen about 6
percent since reporting its third quarter results in October,
closed at $29.57 on Thursday on the New York Stock Exchange.