October 20, 2011 / 10:16 AM / 8 years ago

UPDATE 3-BB&T reports higher-than-expected profit

* EPS of 52 cents vs. 30 cents a year ago

* Loan loss provision declines

* Revenue declines 12 percent

Oct 20 (Reuters) - BB&T Corp reported a higher-than-expected quarterly profit on Thursday as the bank set aside less money for loan losses and earned higher interest income from lending.

The Winston-Salem, North Carolina-based company reported third-quarter net income of $366 million, or 52 cents per share, available to common shareholders, up from $210 million, or 30 cents per share, a year earlier.

Analysts on average had expected a profit of 50 cents per share, according to Thomson Reuters I/B/E/S.

Revenue fell 12 percent to $2.14 billion from $2.46 billion.

BB&T’s gain in interest income and lower loan loss provision offset the decline in total revenue, which stemmed primarily from a drop in fee income.

Net interest income rose 7 percent to $1.45 billion from $1.35 billion. BB&T loan loss provision — or what it sets aside to deal with problem credits — fell by $500 million, or 67.3 percent, as the bank’s problem loan portfolio shrinks.

The southeastern U.S. bank has 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.

BB&T shares closed down 2.6 percent on Wednesday at $22.30.

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