SunTrust Banks, Inc. (STI) reported solid earnings performance in the third quarter, driven by continued loan and deposit growth, improved efficiency, and strong asset quality trends. Earnings per share, excluding the net $0.11 per share benefit of special items, grew 10% compared to the adjusted level a year ago.
Compared to the third quarter of prior year, total revenue increased $27 million, driven primarily by higher capital markets-related income, mortgage-related income, and gains on the sale of investment securities, partially offset by lower service charges.
Average client deposits for the current quarter were $145.2 billion, compared to $132.2 billion in the third quarter of 2014. Total loans at September 30, 2015, were $133.6 billion.
The company's results for the quarter surpassed analysts' estimates both in terms of profit and revenue.
For the third-quarter, net income available to common shareholders was $519 million, or $1.00 per share compared to $563 million or $1.06 per share, last year. The company noted that its current quarter was favorably impacted by $0.07 per share in discrete tax benefits and $0.04 per share in recoveries related to the resolution of previous mortgage matters.
On average, 30 analysts polled by Thomson Reuters expected the company to report profit per share of $0.84 for the quarter. Analysts' estimates typically exclude special items.
Revenue increased year-over-year to $2.06 billion from $2.03 billion. Analysts expected revenue of $2.04 billion for the quarter.
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