By Josee Rose
BB&T Corp.'s (BBT) fourth-quarter profit rose 6.1%, helped
by better results in its community-banking segment and a gain on a
sale, as the bank reported lower revenue.
Regional banks like BB&T rely heavily on lending income and
have been pressured recently by low interest rates. Any shift in
rates can affect how much it costs banks to borrow money and how
much they can charge to lend that money to customers. U.S. banks
also are grappling with a slow U.S. recovery and a range of new
regulations.
BB&T's net interest margin, its profit margin from lending
and investing, was 3.56% compared with 3.84% a year earlier and
3.68% in the prior quarter.
Overall, BB&T posted a profit of $537 million, or 75 cents a
share, compared with $506 million, or 71 cents a share, a year
earlier. Results include a gain of $19 million from the sale of a
consumer-lending unit.
Revenue declined 6% to $2.38 billion as net interest income fell
7.7% to $1.4 billion and noninterest income dropped 3.4% to $985
million
Analysts surveyed by Thomson Reuters had projected earnings of
71 cents a share on revenue of $2.37 billion.
The decrease in noninterest income came in large part because of
a $131 million decline in mortgage-banking income.
Profit in the company's community-banking segment, by far its
largest, increased to $275 million from $212 million in the
year-earlier quarter.
"Credit quality improved dramatically in 2013 and fourth-quarter
credit metrics continue to be very strong," said Chairman and Chief
Executive Kelly King in a prepared statement.
Average loans and leases held for investment totaled $114.8
billion, up 1.1% from a year earlier and down slightly
sequentially.
Last month, BB&T reached a deal to buy 21 bank branches in
Texas from Citigroup Inc. (C), building on the southeast regional
lender's expansion in the Lone Star state.
Write to Josee Rose at Josee.Rose@wsj.com
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