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SunTrust Banks, Inc.

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SunTrust’s fourth-quarter 2015 earnings surpassed the Zacks Consensus Estimate. Improvement in net interest income, lower provision for credit losses and a fall in operating expenses were the key drivers. However, lower non-interest income was on the downside. The company remains well positioned for future growth given its favorable deposit mix, efficient expense management and enhanced credit quality. Also, the company’s capital deployment activities look impressive. Though cost-containment efforts are easing pressure on the bottom line, a persistent low interest rate scenario, exposure to risky assets and heightened regulatory pressure will weigh on profitability in the near term.

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