BB&T in Winston-Salem, N.C., reported an increase in earnings that reflected good expense control and careful balance sheet management.
Third-quarter profit rose 32% from a year earlier to $789 million, or $1.01 a share, the $223 billion-asset company said in a press release Thursday.
Revenue rose 1.8% to $3 billion.
"We continue to execute on numerous strategies, creating more diversified and resilient profitability while investing substantially in our digital platform,” Kelly King, BB&T’s chairman and CEO, said in the release.
In working its balance sheet in a rising-rate environment, BB&T seemed to balance steady loan growth with discipline in deposit pricing. Total loans increased 2.6% to $148 billion, while deposits fell 1% to $155 billion. As a result, the net interest margin narrowed by 1 basis point to 3.47%, and net interest income increased 2.4% to $1.7 billion.
Commercial and industrial loans increased 2% to $59.7 billion, while commercial real estate loans rose 3% to $21.5 billion. Direct and indirect retail loans decreased slightly.
Noninterest income expanded 6.3% to $1.2 billion. Insurance income rose 13% to $448 million, and investment banking revenue increased 12% to $116 million. Mortgage banking income fell 31% to $79 million.
Noninterest expenses fell by 0.2% to $1.7 billion. Occupancy expense declined 5% to $189 million, while regulatory charges decreased by 7.5%, to $37 million. Software expense increased by 13% to $70 million.
The loan-loss provision increased by 7% to $135 million.
