Credit Costs Impact Results as Company Points to Underlying Progress and Financial Strength(Photo at left shows SunTrust Plaza, downtown Atlanta, home of SunTrust Banks Inc.)
ATLANTA, GA, PRNewswire-FirstCall/ -- SunTrust Banks, Inc. (NYSE:STI) reports net income available to common shareholders for the first quarter of 2008 of $283.6 million, or $0.81 per average common diluted share, compared to $513.9 million, or $1.44 per average common diluted share, in the first quarter of 2007.
Growth in the balance sheet and core business revenues coupled with disciplined expense management were more than offset by increased credit costs associated with the continued deterioration in the housing market, as well as net mark-to-market valuation losses related to certain asset-backed securities.
Positively impacting the quarter were gains from the Company's interest in Visa, Inc. ("Visa") and prior decisions to sell its remaining interest in Lighthouse Investment Partners and certain bank-owned real estate.
"Growth in credit costs associated with the residential real estate correction continued to take a toll in the first quarter; further, the backdrop of emerging recession fears clouds the near-term
outlook,” said James M. Wells III, president and chief executive officer of SunTrust.”However, SunTrust is financially strong, with ample liquidity, adequate capital, and a solid balance sheet, and we are effectively managing through this difficult economic environment. Perhaps most importantly, we are encouraged by underlying progress in key business lines, good deposit and some modest loan growth, and the positive impact of improved expense discipline.
“Given the success we are achieving in our E2 Efficiency and Productivity program, we have increased our 2008 savings estimate to $500 million, up $150 million from our previous estimate. Economic uncertainty notwithstanding, we remain confident in the validity of our strategies, our execution of those strategies, and the growth potential within our existing businesses and markets."
For a detailed copy of the SunTrust news release, please contact
Steve Shriner, +1-404-827-6714, or Media, BarryKoling, +1-404-230-5268.
go to www.suntrust.com/
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