SunTrust Banks reported net income of $378 million for the fourth quarter of 2014 compared to net income of $413 million the same quarter one year ago. The current quarter’s results include a $145 million legal provision related to legacy mortgage matters, to increase legal reserves and complete the resolution of a specific matter.
Excluding the impact of this expense, adjusted earnings per share for the current quarter were $0.88 compared to $0.81, on an adjusted basis, in the prior quarter and $0.77 in the fourth quarter of 2013.
The bank noted that net charge-offs for the current quarter were $94 million, representing 0.28% of average loans on an annualized basis, down 11 basis points sequentially. The provision for credit losses decreased $19 million compared to the prior quarter due to lower net charge-offs, partially offset by a smaller reduction in the allowance for credit losses.
“Core earnings growth of 18% over the past year reflects our focus on expanding client relationships and executing our core strategies. Our strong performance in the fourth quarter and 2014 was driven by good loan and deposit growth, continued expense discipline, and improved credit quality,” said William H. Rogers, Jr. chairman and chief executive officer of SunTrust Banks.
To view the full SunTrust news release, click here.
Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!