BB&T Revenue and Profit Increase
October 19 2016 - 8:00AM
Dow Jones News
BB&T Corp. said profit and revenue rose in its latest
quarter as recent acquisition costs diminished.
The Winston-Salem, N.C.-based lender reported earnings of $642
million, up from $533 million a year earlier. Per-share profit grew
to 73 cents from 64 cents. Excluding merger costs and other items,
earnings per share were 76 cents.
Total revenue, which is a combination of net interest income and
fee-based income, grew 13% to $2.77 billion.
Analysts polled by FactSet had forecast adjusted profit of 64
cents a share on $2.49 billion in revenue.
Fee-based income rose 18% to $1.16 billion on increased
insurance and mortgage revenue. Net interest income rose 10% to
$1.61 billion on securities and loans and leases income.
Expenses rose 7.3%, driven by higher personnel and occupancy and
equipment expenses, partially offset by a reduction in
merger-related and restructuring charges. In recent quarters the
regional bank has made a number of deals including a $1.8 billion
purchase of Pennsylvania-based National Penn Bancshares Inc. and
its $500 million deal to acquire U.S. wholesale insurance broker
Swett & Crawford. Merger costs fell to $43 million from $77
million last year.
Taxable equivalent net interest margin, a key profitability
measure, rose to 3.39% from a 3.35% year earlier.
BB&T added to its provision for loan losses, setting aside
$148 million for credit losses, up from $103 million a year
earlier.
Shares in the company, up 3.5% in the past three months, were
inactive in premarket trading.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
October 19, 2016 07:45 ET (11:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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