SunTrust Reports Q3 Earnings, Revenues Up Y/Y

Have you been eager to see how SunTrust Banks, Inc. (STI – Analyst Report) performed in Q3 in comparison with the market expectations?

Let’s quickly scan through the key facts from this Atlanta-based commercial banking organization’s earnings release this morning:


SunTrust came out with earnings per share of $1.00. The results included 7 cents per share in discrete tax benefits and 4 cents per share in recoveries related to the resolution of previous mortgage matters. This compared with the prior-year figure of $1.06 per share (on a GAAP basis) and 81 cents per share (adjusted).

The Zacks Consensus Estimate was 83 cents.

Growth in revenues and a stable expense base were the positives during the quarter.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for SunTrust depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained unchanged at 83 cents over the last 7 days.

However, SunTrust has a decent earnings surprise history. Before posting earnings in Q3, the company delivered positive surprises in three of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 6.75% in the trailing four quarters.


SunTrust posted net revenue of $2.02 billion, which was almost at par with the Zacks Consensus Estimate of $2.03 billion. Further, it compared favorably with the year-ago number of $2.00 billion

Key Developments:

  • Average client deposits increased 10% year over year, with all of the growth coming from low-cost deposits.
  • Average loan balances were relatively stable as growth in mortgage and consumer direct loans was offset by continued paydowns in commercial loans and lower consumer indirect loans
  • Asset quality continued to improve
  • What Zacks Rank Says

    The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for SunTrust. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

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    Author: Travis Esquivel

    Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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