UPDATE: SunTrust Banks Q4 Profit Beats Estimates

reported better-than-expected fourth-quarter earnings. The Atlanta, Georgia-based bank posted a quarterly profit of $394 million, or $0.72 per share, compared to $426 million, or $0.77 per share. Excluding non-recurring costs, the bank earned $0.88 per share. The latest quarter results included a $145 million legal provision related to legacy mortgage matters. Its revenue fell slightly to $2.04 billion from $2.06 billion in the period. However, analysts were estimating earnings of $0.78 per share on revenue of $2.04 billion. Average total loans for the quarter rose 6% y/y, while average client deposits surged 7% y/y in the quarter. Noninterest income declined to $795 million from $814 million in the year-ago quarter. Mortgage servicing income rose to $53 million from $38 million, while investment banking income climbed to $109 million from $96 million. Noninterest expense for the quarter came in at $1.4 billion, compared to $1.4 billion in the year-ago quarter. During the quarter, SunTrust Banks repurchased $110 million of common shares and issued $500 million of preferred stock. “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, Inc. "Looking into 2015, we will build on the momentum generated in 2014 to meet more client needs and expand key businesses, creating a more valuable company for all of our stakeholders." SunTrust shares fell 1.77% to close at $36.71 yesterday.