Stock Monitor: Home Bancshares Post Earnings Reporting
LONDON, UK / ACCESSWIRE / January 24, 2018 / Active-Investors.com has just released a free earnings report on SunTrust Banks, Inc. (NYSE: STI). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=STI. The bank holding Company posted its financial results on January 19, 2018, for the fourth quarter of the fiscal year 2017 (Q4 FY17) and for the full fiscal year 2017 (FY17). SunTrust Banks' quarterly total revenues increased 5% y-o-y, and were in-line with market consensus estimates. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for Home Bancshares, Inc. (Conway, AR) (NASDAQ: HOMB), which also belongs to the Financial sector as the Company SunTrust Banks. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, SunTrust Banks most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=STI
Earnings Highlights and Summary
During Q4 FY17, SunTrust Banks' total revenue was $2.27 billion compared to $2.16 billion in Q4 FY16. The growth in total revenues in the reported quarter was primarily attributed to a higher net interest income and a slightly higher non-interest income. On a fully tax equivalent (FTE) basis, the Company's total revenue came in at $2.31 billion for Q4 FY17 versus $2.19 billion in the prior year's same quarter; meeting market consensus estimates. The Company's net interest income rose to $1.43 billion in Q4 FY17 from $1.34 billion in Q4 FY16. Meanwhile, the Company's total non-interest income stood at $833 million for Q4 FY17 compared to $815 million in Q4 FY16.
The Atlanta, Georgia-based bank reported a net income applicable to common shareholders of $710 million, or $1.48 per diluted share, in Q4 FY17 compared to $448 million, or $0.90 per diluted share, in Q4 FY16. The Company's net income included a $0.39 per share of net discrete benefits from Form 8-K item. Furthermore, the Company's adjusted net income of $1.09 per share outpaced Wall Street's expectations of $1.05 per diluted share.
In the full year FY17, SunTrust Banks' total revenues were up 4% to $9.13 billion on a FTE basis from $8.74 billion in FY16. The bank's net income applicable to common shareholders came in at $2.18 billion, or $4.53 per diluted share, for FY17 compared to $1.81 billion, or $3.63 per diluted share, in FY16.
Earnings Metrics
During the reported quarter, the Company's return on average common shareholders' equity was 12.54% versus 7.85% reported in the year ago comparable period. The return on average tangible common equity came in at 17.24% in Q4 FY17 compared to 10.76% in Q4 FY16. SunTrust Banks' net interest margin improved three basis points to 3.09% in the reported quarter from 2.93% in Q4 FY16, while net interest margin grew to 3.17% on a FTE basis in Q4 FY17 from 3.00% in the previous year's corresponding quarter.
As on December 31, 2017, the Company's Basel III fully phased-in CET1 ratio was 9.60% compared to 9.43% as on December 31, 2016. The Company had an efficiency ratio-FTE of 67.03% in Q4 FY17 compared to 64.74% in Q4 FY16. Furthermore, tangible efficiency ratio-FTE stood at 64.84% as on December 31, 2017, versus 63.08% as on December 31, 2016.
Balance Sheet Analyzed
In Q4 FY17, SunTrust Banks' average interest-earning assets grew to $184.31 billion in Q4 FY17 from $182.48 billion in the previous year's same quarter. The bank's yield on interest-earning assets was 3.53% for Q4 FY17, an increase of 0.28 basis points from Q4 FY16. SunTrust Banks' average total loans held for investment were $144.04 billion during the quarter ended December 31, 2017, versus $142.58 billion in Q4 FY16. Furthermore, average total assets were $205.22 billion in Q4 FY17 compared to $203.15 billion in Q4 FY16.
The bank's total non-performing assets (NPA) stood at $741 million as on December 31, 2017, down from $919 million as on December 31, 2016. The Company's NPAs to total loans held for investment, plus OREO and other repossessed assets, ratio fell to 0.52% at the end of Q4 FY17 from 0.64% at the end of the prior year's comparable period.
Segment Performance
SunTrust Banks' Consumer Banking and Consumer Business segment's total revenue rose to $1.42 billion on a FTE basis in Q4 FY17 from $1.35 billion in Q4 FY16. Furthermore, the segment reported a net income of $217 million in Q4 FY17 compared to $206 million in the prior year's corresponding quarter.
For Q4 FY17, the Company's Wholesale Banking segment's total revenue came in at $1.13 billion on a FTE basis, rising 22% from $925 million in Q4 FY16. Additionally, the segment's net income surged to $407 million in Q4 FY17 from $295 million in the past year's same quarter.
The Company's Corporate Other segment reported negative total revenues of $246 million on a FTE basis in Q4 FY17 compared to negative total revenues of $87 million in Q4 FY16. Meanwhile, the segment reported a net income of $116 million during the reported quarter versus a net loss of $36 million in Q4 FY16.
Share Repurchase
In Q4 FY17, the Company repurchased $330 million of its outstanding common stock. Furthermore, the Company intends to repurchase approximately $660 million of additional common stock during the first half of 2018, in accordance with its 2017 capital plan.
Stock Performance Snapshot
January 23, 2018 - At Tuesday's closing bell, SunTrust Banks' stock was marginally up 0.63%, ending the trading session at $70.32.
Volume traded for the day: 3.51 million shares.
Stock performance in the last month - up 7.44%; previous three-month period - up 17.16%; past twelve-month period - up 27.53%; and year-to-date - up 8.87%
After yesterday's close, SunTrust Banks' market cap was at $33.16 billion.
Price to Earnings (P/E) ratio was at 18.01.
The stock has a dividend yield of 2.28%.
The stock is part of the Financial sector, categorized under the Money Center Banks industry. This sector was up 0.2% at the end of the session.
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