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Suntrust earnings get boost from US tax reforms
US-lender Suntrust Banks posted net income of $710m from the three months leading to 31 December as the revaluation of its deferred tax liability and other discrete items added $291m to the group's bottom line.
Net income rose 58% over the same time a year earlier, with earnings per share coming in at $1.48 over the quarter, and revenue moving ahead 5% to $2.27bn, as forecast.
The group recorded several items related to the new tax law, including a $50m contribution to its charitable foundation, a $25m contribution to its own 401(k) plan, a $109m loss from restructuring its portfolio of securities available for sale, and a $5m loss from the sale of its servicing rights which, when added together, combined for a $70m tax benefit.
"We took significant actions this quarter which better position the company for success and give me increased confidence that 2018 will be another great year for SunTrust," chairman and chief executive Bill Rogers said on Friday.
Net interest income moved ahead 9% to $1.4bn on higher earning asset yields and growth in average earning assets.
Non-interest income grew 2% to $833m as trading and mortgage production income dropped but mortgage servicing and trust and investment management income improved.
As of 1445 GMT, shares were untraded at $67.94 each.