SunTrust Won’t Raise Dividend Until 2013

The bank's topped Walll Street's second-quarter predictions

   

Despite better-than-expected second quarter results, SunTrust Banks (NYSE:STI) said today that it will not request regulatory approval for a dividend increase until next year.

The bank failed its March Federal Reserve “stress test.” It submitted a revised capital plan to regulators in June that did not include a dividend increase, Reuters noted.

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Shares of SunTrust Banks tumbled about 3% in Friday afternoon trading.

SunTrust Banks posted second-quarter net income of $270 million, up 55% over $174 million during the same quarter last year.

The bank said its revenue increased to $2.25 billion, up 2% from $2.2 billion.

EPS for the second quarter was 50 cents.

Analysts had been looking for earnings of 44 cents a share on revenue of $2.16 billion, the Associated Press noted.

A rising home market helped boost the number of mortgage loans approved during the quarter. Bad loans slumped 31% during the quarter to $350 million, down from $505 million in 2011, and the bank cut its bad loan reserves from $392 million last year to $300 million.

Net interest income rose to $1.31 billion, up from $1.29 billion in 2011. Fees for services and other revenues increased to $940 million compared to $912 million last year.

SunTrust joins other banks, including Citigroup (NYSE:C), JPMorgan Chase (NYSE:JPM), Wells Fargo(NYSE:WFC) and Bank of America (NYSE:BAC) in reporting improved second-quarter results.


Article printed from InvestorPlace Media, http://investorplace.com/2012/07/suntrusts-wont-raise-dividend-until-2013/.

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