Post-Earnings Briefing - SunTrust Banks

LONDON, January 28, 2015 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings review on SunTrust Banks Inc. (NYSE: STI). On January 16, 2015, the company reported its Q4 FY14 and full-year FY14 financial results (period ended December 31, 2014). Click on http://get.Investor-Edge.com/pdf/?c=SunTrust%20Banks&d=28-Jan-2015&s=STI to read our free earnings review on SunTrust Banks Inc. (SunTrust). During Q4 FY14, the company's adjusted earnings improved by $0.11 per share, or 14% Y-o-Y, to $0.88 per share. Chairman and CEO, William H. Rogers, Jr., said that SunTrust's strong performance in Q4 FY14 and FY14 was driven by good loan and deposit growth, continued expense discipline, and improved credit quality. Our free coverage report can be accessed at:

http://get.Investor-Edge.com/pdf/?c=SunTrust%20Banks&d=28-Jan-2015&s=STI

Earnings Overview 

During Q4 FY14, SunTrust's total revenues on fully taxable-equivalent (FTE) basis fell to $2.04 billion from $2.06 billion in Q4 FY13, largely driven by foregone RidgeWorth revenue and lower trading income, and partially offset by higher mortgage-related and investment banking income. The company's total revenues on FTE basis for Q4 FY14 missed Bloomberg analysts' forecast of $2.05 billion. Net interest income on FTE basis in Q4 FY14 improved slightly to $1,248 million from $1,247 million in Q4 FY13. However, net noninterest income in Q4 FY14 decreased to $795 million from $814 million in Q4 FY13. The free research on STI can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=SunTrust%20Banks&d=28-Jan-2015&s=STI

In Q4 FY14, SunTrust's net interest margin stood at 2.96% as compared to 3.20% in Q4 FY13. SunTrust reported net income available to common shareholders of $378 million, or $0.72 per diluted share, in Q4 FY14 compared to $413 million, or $0.77 per diluted share, in Q4 FY13. Analysts from Bloomberg had expected net income available to common shareholders of $340 million, or $0.63 per diluted share, in Q4 FY14. SunTrust's efficiency and tangible efficiency ratios in Q4 FY14 were 69.0% and 68.4%, respectively.

For FY14, the company reported total revenues on FTE basis of $8.31 billion compared to $8.19 billion in FY13. SunTrust's total revenues for FY14 outperformed Bloomberg analysts' forecast of $8.25 billion. In FY14, net interest income on FTE basis improved to $4,982 million from $4,980 million in FY13. Additionally, net noninterest income increased to $3,323 million in FY14 from $3,214 million in FY13.

In FY14, SunTrust reported net interest margin of 3.07% compared to 3.24% in FY13. The company's net income available to common shareholders increased to $1.72 billion, or $3.23 per diluted share, in FY14, from $1.30 billion, or $2.41 per diluted share, in FY13. Analysts from Bloomberg had expected the company to report net income available to common shareholders of $1.70 billion, or $3.10 per diluted share, in FY14. SunTrust's efficiency and tangible efficiency ratios in FY14 were 66.7% and 66.4%, respectively. Sign up and read the free analyst's notes on STI at:

http://get.Investor-Edge.com/pdf/?c=SunTrust%20Banks&d=28-Jan-2015&s=STI

During Q4 FY14, the company repurchased $110 million of its outstanding common stock, bringing the total repurchased in FY14 to $458 million with plans to repurchase between $110 million and $120 million of common stock during Q1 FY15.

As on December 31, 2014, SunTrust's Basel I Tier 1 common and Basel III Common Equity Tier 1 ratios were estimated to be 9.6% and 9.7%, respectively.

Mr. Rogers stated that looking into 2015, the company will build on the momentum generated in FY14 to meet more client needs and expand key businesses, creating a more valuable company for all the stakeholders. Visit Investor-Edge and access the latest research on STI at:

http://get.Investor-Edge.com/pdf/?c=SunTrust%20Banks&d=28-Jan-2015&s=STI

Stock Performance 

On the day of the earnings release, January 16, 2015, SunTrust's stock surged 4.03% to end the session at $38.19. Since then, the stock has moved both ways with gains outperforming the losses. However, on the last close, Tuesday, January 27, 2015, it finished at $39.19, down 1.58% for the day. The stock vacillated between $39.04 and $39.59 during the session. A total of 4.04 million shares were traded which was above its three months average volume of 3.28 million shares. Over the previous three trading sessions and last one month, the company's shares have lost 1.68% and 7.72%, respectively. However, the stock has advanced 3.54% in the past three months. Shares in SunTrust are trading above their 200-day moving average of $38.89. Furthermore, the stock traded at a PE ratio of 11.14.

Sneak Peek to Corporate Insider Trading 

In the last one month, there were three corporate insider transactions made by three individuals. On January 09, 2015, David M. Ratcliffe, Director at SunTrust, purchased 39 shares at price of $38.82 per share, for a total value of $1,500. On January 21, 2015 and January 22, 2015, two insiders disposed 21,600 shares at an average price of $39.06 per share, for a total value of $843,600. The transactions above included the sale of 12,000 shares at price of $38.42 per share by Mark A. Chancy, Wholesale Banking Executive at SunTrust, and the disposal of 9,600 shares at a price of $39.85 per share by Aleem Gillani, Chief Financial Officer at SunTrust. Complimentary in-depth research on STI is available at:

http://get.Investor-Edge.com/pdf/?c=SunTrust%20Banks&d=28-Jan-2015&s=STI

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