SunTrust Banks in Atlanta reported a lower third-quarter profit, citing negative effects from the low interest rate environment.
Net income at the $187 billion-asset company fell 7.8% to $519 million, or $1 per share, from a year earlier. Total revenue rose 1.3% to $2 billion.
Net interest income fell 0.3% to $1.2 billion, on lower earning-asset yields. Total loans rose 1.1% to $133.6 billion. The net interest margin shrank by nine basis points to 2.94%.
The results were boosted by 7 cents per share from discrete tax benefits, and by 4 cents per share from the resolution of legacy mortgage matters.
Noninterest income rose 4% to $811 million on higher income from investment banking and mortgages, and higher gains on sale of investment securities.
Noninterest expense rose 0.4% to $1.3 billion on higher processing and software-related expenses, among other items. The efficiency ratio improved by 59 basis points to 61.44%.