SunTrust Banks (STI) said second-quarter profit rose on higher revenue from investment banking and the sale of an asset-management unit.
The Atlanta company's net income rose 6% from a year earlier, to $387 million, or 72 cents per share. Revenue rose 4.8%, to $2.2 billion.
Noninterest income rose 11.5% to $957 million on an increase in investment banking, a $19 million gain from the sale of government-guaranteed mortgage loans and other fee-based products.
Several special items affected the results, including a $204 million charge to settle an investigation into SunTrust's administration of Home Affordable Modification Program loans; a $105 million gain from the sale of its RidgeWorth wealth management unit; and a $25 million accrual reversal related to legacy mortgage matters.
The $183 billion-asset SunTrust had previously announced the settlement of the HAMP-related investigation. Federal prosecutors had accused the company of misrepresentations and improper processing of applications tied to HAMP.
Also in the second quarter, net interest income rose 0.2% to $1.2 billion, as loan growth was offset by lower loan yields. Net interest margin fell 14 basis points to 3.19%.