by Christopher Freeburn | July 20, 2012 1:38 pm
Despite better-than-expected second quarter results, SunTrust Banks (NYSE:STI[1]) said today that it will not request regulatory approval for a dividend increase[2] 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.
Shares of SunTrust Banks tumbled about 3% in Friday afternoon trading.
SunTrust Banks posted second-quarter net income[3] 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[4]), JPMorgan Chase (NYSE:JPM[5]), Wells Fargo(NYSE:WFC[6]) and Bank of America (NYSE:BAC[7]) in reporting improved second-quarter results.
Source URL: https://investorplace.com/2012/07/suntrusts-wont-raise-dividend-until-2013/
Copyright ©2024 InvestorPlace unless otherwise noted.