ATLANTA (AP) — SunTrust Banks Inc.'s net income shot up 55 percent in the second quarter, as it collected more interest on loans and fees and wrote off far fewer unpaid loans.
The regional bank said Friday that it made more mortgage loans and that the loans it holds are more likely to be repaid.
SunTrust's net income for the period ended June 30 rose to $270 million, or 50 cent per share, from $174 million, or 3 cents per share in the 2011 second quarter.
Net interest income, which includes interest paid on loans and interest paid to depositors, rose to $1.31 billion from $1.29 billion a year earlier.
Noninterest income, which includes fees for services and other sources of revenue, rose to $940 million from $912 million in the same period of 2011.
As the housing market strengthened, SunTrust increased its mortgage lending, the bank said. New mortgage loans surged to $103 million in the second quarter from $4 million a year earlier. Mortgage fees added to the bank's revenue.
SunTrust's total revenue rose 2 percent, to $2.25 billion from $2.2 billion a year earlier.
The bank also set aside less money to cover loans expected to sour — $300 million, compared with $392 million a year earlier.
Net charge-offs, or mortgages, home equity loans and other lending written off as uncollectible, fell by 31 percent to $350 million compared with $505 million for the second quarter of 2011.
The results exceeded analysts' expectations. Wall Street analysts had anticipated net income of 44 cents per share on revenue of $2.16 billion, according to FactSet.
SunTrust Bank had more than 1,650 bank offices throughout the Southeast and Mid-Atlantic states.
Shares of SunTrust fell 49 cents, or 2 percent, to $23.75 in morning trading Friday, as the broader markets declined.
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