BB&T Corp. (BBT) Reports In-Line Q2 EPS, Revenues Miss
BB&T Corp. (NYSE: BBT) reported Q2 EPS of $1.01, in-line with the analyst estimate of $1.01. Revenue for the quarter came in at $2.88 billion versus the consensus estimate of $2.92 billion.
Second Quarter 2018 Performance Highlights
- Earnings per diluted common share were $0.99, up $0.05 compared to first quarter of 2018
- Earnings per diluted common share were $1.01, excluding merger-related and restructuring charges
- Return on average assets was 1.49 percent
- Return on average common shareholders' equity was 11.74 percent
- Return on average tangible common shareholders' equity was 19.78 percent
- Taxable-equivalent revenues were $2.9 billion, up $65 million from the first quarter of 2018
- Net interest margin was 3.45 percent, up one basis point from the prior quarter
- Noninterest income was up $42 million primarily due to higher insurance income
- Fee income ratio was 42.5 percent, compared to 41.9 percent for the prior quarter
"Strong revenues, improved loan growth and solid expense control resulted in record earnings for the quarter," said Chairman and Chief Executive Officer Kelly S. King. "We produced a strong 3.5 percent annualized growth in average loans held for investment compared to the prior quarter. Our earnings before income taxes exceeded $1.0 billion, which is also a record and was up 4.7 percent over the second quarter of last year.
"Revenue was $2.9 billion as both net interest income and noninterest income were near all-time highs. Total noninterest expenses for the quarter were $1.7 billion, down $22 million from the second quarter of 2017. Excluding merger-related and restructuring charges, noninterest expense was down $36 million, reflecting continued progress on our optimization efforts," King said.
"Asset quality remains excellent and improved further during the second quarter. Nonperforming assets, net charge-offs and loans 90 days or more past due all declined from already very low levels," King said
"We were pleased the Federal Reserve did not object to our capital plan, which includes a $0.03 per share increase in our dividend, which will be considered at our July Board of Directors meeting, and up to $1.7 billion in share repurchases. A portion of the capital allocated for share repurchases was used to acquire Regions Insurance in early July. The acquisition will be a great strategic fit and increase our retail insurance network in core BB&T markets across the Southeast and newer markets in Texas, Louisiana, Arkansas and Indiana," King said.
For earnings history and earnings-related data on BB&T Corp. (BBT) click here.