BB&T Corp.'s third-quarter earnings rose 38%, topping analysts' estimates, as the bank's revenue rose, though its credit-loss provisions also climbed.
The company "again produced industry-leading loan growth, including substantial growth in all non-real estate portfolios compared to last quarter," said Chairman and Chief Executive Kelly S. King, who also noted that the bank's underlying businesses "in many ways are performing better than ever." Average loans and leases outstanding rose 2% during the quarter.
The mid-Atlantic and Southeast regional bank, like many others, had benefited from cutting its loan-loss provisions as it has seen better credit trends. King in July noted the bank has seen a pickup in lending.
Still, loan-loss provisions were $770 million in the most recent quarter, compared with $709 million a year earlier and $650 million in the prior quarter. Net charge-offs, or loans lenders don't think are collectible, rose to 3.31% of average loans from 1.71% and 2.48%, respectively. Nonperforming loans, those near default, were 2.81%, compared with 2.48% and 2.9%.
BB&T reported a profit of $210 million, or 30 cents a share, up from $152 million, or 23 cents, a year earlier. The most-recent quarter included a penny of merger-related charges. Analysts polled by Thomson Reuters most recently forecast earnings of 26 cents.
Net interest income rose 6.2%, while noninterest income climbed 18%.
Shares closed at $22.92 on Wednesday and were inactive premarket.