Georgia-based financial services holding company, SunTrust Banks Inc. (NYSE: STI) earlier today reported results for the third quarter ended September 30, 2012.
STIâ€™s interest revenues rose 1% to $1,271 million in the third quarter of 2012 from that of $1,263 million reported in the third quarter of 2011. Net income available to common shareholders rose to $1,066 million in the third quarter of 2012 from $211 million reported in the third quarter of 2011.
The 1% Increase in interest revenues reflected the impact of 6% decrease in interest income offset by 37% decrease in interest expense. The drastic 405% increase in net income was mainly due to 224% increase in net noninterest income. Noninterest Income increased by 182% to $2,542 million from $903 million, whereas Non Interest Expense had increased only by 11% to $1,726 million from $1,560 million.
STI reported over $1,941 as Net Securities gains under Noninterest Income. This reflected the companyâ€™s actions to improve its risk profile by accelerating the termination of agreements regarding shares owned in Coca-Cola Company (NYSE: KO).
As on Sep 30, 2012, STI had total assets of $173,181 million including $4,655 as Cash and due from banks. Its total liabilities were $152,782 million, among which total deposits were worth $127,226 million. Total stockholdersâ€™ equity was $20,399 million.
Key financial ratios including return on equity (ROE) increased to 20.84x from 4.23x and Return on assets (ROA) increased to 2.45% from 0.5%.Â Efficiency ratio decreased to 44.90x from 71.05x from prior year.
STIâ€™s shares have fallen sharply in trading today as investors digest the companyâ€™s latest quarterly results. At last check, STI shares were trading 3.35% lower at $27.67, with volume down from daily average of 7.69 million to 7.53 million. The stock has gained more than 50% year to date compared to a gain of 27% for the KBW index of largest banks.