Upcoming AWS Coverage on Sterling Bancorp Post-Earnings Results

LONDON, UK / ACCESSWIRE / January 27, 2017 / Active Wall St. announces its post-earnings coverage on SunTrust Banks, Inc. (NYSE: STI). The Company announced its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on January 20, 2017. SunTrust Banks' quarterly total revenues increased 7% y-o-y, outperforming market consensus estimates. Register with us now for your free membership at:

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One of SunTrust Banks' competitors within the Money Center Banks space, Sterling Bancorp (NYSE: STL), announced its results for Q4 and year ended December 31, 2016 after the market close on Tuesday, January 24, 2017. AWS will be initiating a research report on Sterling Bancorp in the coming days.

Today, AWS is promoting its earnings coverage on STI; touching on STL. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=STI

http://www.activewallst.com/registration-3/?symbol=STL

Earnings Reviewed

During Q4 FY16, SunTrust Banks' total revenue was $2.16 billion compared to $2.01 billion in Q4 FY15. On fully tax equivalent (FTE) basis, the Company's total revenue for Q4 FY16 came in at $2.19 billion versus $2.05 billion in the prior year's same quarter. Total revenues (FTE) for the reported quarter beat market consensus estimates of $2.17 billion. The Company's net interest income rose 8% to $1.34 billion in Q4 FY16 from $1.25 billion in the prior year's comparable quarter. Meanwhile, total noninterest income for Q4 FY16 stood at $815 million compared to $765 million in Q4 FY15.

The Atlanta, Georgia-based bank reported net income applicable to common shareholders of $448 million, or $0.90 per diluted share, in Q4 FY16 compared to $457 million, or $0.91 per diluted share, in Q4 FY15. Wall Street had expected the Company to report net income applicable to common shareholders of $0.88 per diluted share.

In full year FY16, SunTrust Banks' total revenues (FTE) were up by 7% to $8.74 billion from $8.17 billion in FY15. The bank's net income applicable to common shareholders for FY16 came in at $1.81 billion, or $3.60 per diluted share, compared to $1.86 billion, or $3.58 per diluted share, in the previous year.

Earnings Metrics

During the reported quarter, return on average common shareholders' equity was 7.85%, compared to 8.32% reported in the year ago comparable period. The return on average tangible common equity came in at 10.76% in Q4 FY16 compared to 11.49% in Q4 FY15. Net interest margin improved three basis points in the reported quarter to 2.93% from 2.90% in Q4 FY15. While, net interest margin (FTE) grew to 3.00% in Q4 FY16 from 2.98% in the previous year's corresponding quarter.

As on December 31, 2016, the Company's Basel III fully phased-in CET1 ratio was 9.48%, compared to 9.80% as on December 31, 2015. The Company had an efficiency ratio-FTE of 64.74% in Q4 FY16 compared to 64.05% in Q4 FY15. Furthermore, tangible efficiency ratio-FTE stood at 63.08% as on December 31, 2016, versus 62.11% as on December 31, 2015.

Balance Sheet Analyzed

In Q4 FY16, average interest-earning assets grew to $182.48 billion in Q4 FY16 from $170.26 billion in the previous year's same quarter. The bank's yield on average interest-earning assets for Q4 FY16 was 3.25%, an increase of seven basis points from the year ago comparable quarter. SunTrust Banks' average total loans held for investment were $142.58 billion during quarter ended December 31, 2016, versus $135.21 billion in Q4 FY15. Furthermore, average total asset were $203.15 billion in Q4 FY16 compared to $189.66 billion recorded in Q4 FY15.

The bank's total nonperforming assets (NPA) stood at $919 million as on December 31, 2016, compared to $735 million as on December 31, 2015. NPAs to total loans held for investment plus OREO and other repossessed assets ratio grew to 0.64% at the end of Q4 FY16 from 0.54% at the end of prior year same period.

Segment Performance

SunTrust Banks' Consumer Banking and Private Wealth Management segment's total revenue-FTE rose to $1.10 billion in Q4 FY16 from $1.07 billion in Q4 FY15. Furthermore, the segment reported net income of $162 million in Q4 FY16 compared to $186 million in the prior year's comparable quarter.

For Q4 FY16, Wholesale banking segment's total revenue-FTE came in at $847 million compared to $752 million in Q4 FY15. Additionally, the segment's net income rose to $266 million in Q4 FY16 from $215 million in the past year's corresponding quarter.

Mortgage banking segment reported total revenues-FTE of $215 million in Q4 FY16 compared to $230 million in Q4 FY15. The segment's net income declined during the reported quarter to $20 million from $68 million in Q4 FY15.

Share Repurchase

In Q4 FY16, the Company repurchased $240 million of its outstanding common stock. Furthermore, the Company intends to repurchase approximately $480 million of additional common stock during the first half of 2017, in accordance with its 2016 capital plan.

Stock Performance

SunTrust Banks' share price finished yesterday's trading session at $58.26, slightly up 0.15%. A total volume of 3.24 million shares exchanged hands. SunTrust Banks' stock price advanced 29.62% in the last three months, 39.09% in the past six months, and 68.98% in the previous twelve months. The stock is trading at a PE ratio of 16.17 and has a dividend yield of 1.79%.

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SOURCE: Active Wall Street