BB&T Earnings: Double-Digit Profit GROWTH For Fifth Straight Quarter

S&P 500 (NYSE:SPY) component BB&T Corporation (NYSE:BBT) reported its results for the second 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 $510 million (72 cents per share) vs. $307 million (44 cents per share) in the same quarter a year earlier. This marks a rise of 66.1% from the year-earlier quarter.

Revenue: Rose 13.3% to $2.47 billion from the year-earlier quarter.

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

Quoting Management: “We are excited to report the strongest net income for any quarter in our history,” said Chairman and Chief Executive Officer Kelly S. King. “This record performance reflects a 7% increase in net interest income, a 44% increase in noninterest income, lower credit costs and effective expense control. The net interest margin increased this quarter following the call of our outstanding trust preferred securities. “Loan growth improved during the quarter as average loans increased 7% on an annualized basis compared to the first quarter. This growth was led by a 33% increase in loans originated by our other lending subsidiaries, a 20% increase in residential mortgage loans, a 10% increase in direct retail loans and a 9% increase in sales finance loans.”Net revenues totaled $2.5 billion for the second quarter, an annualized increase of 21% compared to last quarter,” said King.

Key Stats:

The company has now seen its net income rise for three quarters in a row. In the first quarter, net income rose 91.6% and in the fourth quarter of the last fiscal year, the figure rose 88%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 4 cents in the first quarter, by 3 cents in the fourth quarter of the last fiscal year, and by 3 cents in the third quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 65 cents a share to 68 cents over the last ninety days. For the fiscal year, the average estimate has moved up from $2.56 a share to $2.70 over the last ninety days.

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

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