BB&T Earnings: Profit Rises by Double-Figures for Fifth Consecutive Quarter

S&P 500 (NYSE:SPY) component BB&T Corporation (NYSE:BBT) reported its results for the third quarter. BB&T is a financial holding company which, through its subsidiary Branch Banking and Trust, provides a range of banking services and loans to individuals and businesses.

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BB&T Corporation Earnings Cheat Sheet

Results: Net income for BB&T Corporation rose to $469 million (66 cents per share) vs. $366 million (52 cents per share) in the same quarter a year earlier. This marks a rise of 28.1% from the year-earlier quarter.

Revenue: Rose 2.5% to $2.5 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: BB&T Corporation fell short of the mean analyst estimate of 69 cents per share. It beat the average revenue estimate of $2.41 billion.

Quoting Management: We are pleased to report very strong results for the third quarter,” said Chairman and Chief Executive Officer Kelly S. King. “BB&T’s performance benefited from a 5.3% annualized increase in net interest income compared to the last quarter, a 63% increase in mortgage banking income and continued improvement in credit costs. The net interest margin remained strong at 3.94%.”Loan growth improved during the quarter as average loans held for investment increased 12.6% on an annualized basis compared to the second quarter including the impact of the BankAtlantic acquisition. Organic loan growth was also strong as average loans increased 8.4% compared to last quarter on an annualized basis. This growth was led by our other lending subsidiaries, residential mortgage loans, C&I loans and sales finance loans.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 68.7% and in the first quarter, the figure rose 91.6%.

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 3 cents, and in the first quarter, it was ahead by 4 cents.

Revenue has now increased for three quarters in a row. In the second quarter, revenue rose 8.8% to $2.7 billion while the figure rose 9.5% in the first quarter from the year earlier.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 72 cents per share, up from 69 cents ninety days ago. The average estimate for the fiscal year is $2.73 per share, a rise from $2.65 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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