SunTrust cuts loss to $56 million
SunTrust Banks said Thursday it narrowed its loss significantly in the second quarter, riding improved credit trends.
SunTrust, Atlanta’s largest bank, reported a net loss of $56 million, or 11 cents per share, compared to a loss of $164 million and 41 cents a share in the second quarter a year go. Analysts had expected a loss of 35 cents per share.
It’s also a major improvement from the $229 million SunTrust lost in the first quarter of this year.
“With solid capital and liquidity, we operate from a position of strength,” SunTrust Chairman and CEO James M. Wells III said in prepared remarks. “Lingering operating environment uncertainties notwithstanding, we are encouraged by improving results and prospects.”
Nonperforming assets, nonaccrual loans and net charge-offs all improved in the second quarter, the bank said.
Provision for credit losses, money set aside to backstop defaults, declined $300 million, or 31 percent from second quarter 2009.
Loan demand remains weak and the bank has continued to shed soured construction loans.
Revenue was off 2 percent to $2.1 billion from a year ago.
SunTrust, which has significant operations in Florida, said the affects of the Gulf oil spill on its business are expected to be minimal. Only 1 percent, or $1.1 billion, of its total loan portfolio is located in the Florida panhandle.
About the Author
J. Scott Trubey is the senior editor over business, climate and environment coverage at The Atlanta Journal-Constitution. He previously served as a business reporter for the AJC covering banking, real estate and economic development. He joined the AJC in 2010.
