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SunTrust Banks Reports Q3 Results (STI)

Georgia-based financial services holding company, SunTrust Banks Inc. (NYSE: STI) earlier today reported results for the third quarter ended September 30, 2012.

STI’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 company’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 stockholders’ 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%.  Efficiency ratio decreased to 44.90x from 71.05x from prior year.

STI’s shares have fallen sharply in trading today as investors digest the company’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.


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