Regional banker SunTrust Banks, Inc. (STI) on Monday posted better-than-expected first quarter earnings results, helped by better loan activity and lower credit loss provisions.
The Atlanta-based company reported first quarter net income of $250 million, or 46 cents per share, compared with $180 million, or 8 cents per share, in the year-ago period.
Revenue rose slightly from last year to $2.22 billion.
On average, Wall Street analysts expected a much smaller profit 33 cents per share, on lower revenue of $2.09 billion.
CEO William Rogers said in a statement that “Improved revenue, as well as continued favorable trends in loans, deposits, and credit metrics were hallmarks for the quarter.”
SunTrust Banks shares were mostly flat in premarket trading Monday.
The Bottom Line
Shares of SunTrust Banks (STI) have a .88% dividend yield, based on Friday’s closing stock price of $22.60. The stock has technical support in the $20 price area. If the shares can firm up, we see overhead resistance around the $24-$25 price levels.
SunTrust Banks, Inc. (STI) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.