BB&T reports record quarterly earnings

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

WINSTON-SALEM, N.C. (Winston-Salem Journal) — BB&T Corp. reported Thursday its highest profitable quarter in its history at $547 million in the second quarter, spurred mostly — as expected — by continued improvement in its loan portfolio.

Diluted earnings were 77 cents a share. The average forecast was 74 cents by analysts surveyed by Zacks Investment Research.

Kelly King, the bank’s chairman and chief executive, credited BB&T’s ability to diversify its revenue streams for the record quarter.

The bank’s 7.2 percent increase in net income also benefited from an 18 percent increase in fee revenue, led by record performances in insurance, investment banking and brokerage, and trust and investment advisory segments.

“Improvement in credit quality accelerated this quarter and resulted in our best credit quality levels in five years,” King said.

BB&T’s provision for loan losses was $179 million, down from $247 million in the first quarter and down from $259 million in the second quarter of 2012. Decreases to the loan-loss provision are considered pivotal by analysts because the provision comes directly off banks’ bottom line for net income.

Nonperforming assets were down 9.7 percent to $1.27 billion compared with the first quarter and down 32.7 percent from a year ago.

Net charge-offs were down $60 million to $215 million, or 21.8 percent, compared with the first quarter. They were down 33.8 percent from a year ago.

Revenue from loans was down 3.2 percent to $1.45 billion year over year, while revenue from fees was up 8.3 percent to $1.05 billion.

Kevin St. Pierre, an analyst with Bernstein Research, said the bank had stronger fee income and made better loan-portfolio improvements than had been projected. He said it also had higher overall expenses than expected as well.

Read full story: The Winston-Salem Journal