SunTrust Banks Inc.'s second-quarter earnings soared as the amount the regional bank set aside to cover potential souring loans continued to abate and revenue edged up.
The Atlanta-based lender, which serves an area that had been hard hit as the real-estate bubble burst a few years ago, has continued to see its credit quality improve.
SunTrust in March received permission to repay $4.85 billion it received under the U.S. Treasury's Troubled Asset Relief Program during the financial crisis.
SunTrust reported a profit of $178 million, up from $12 million from a year earlier. On a per-share basis, which includes preferred-dividend impacts, the earnings were 33 compared with a prior-year loss of 11 cents. Revenue increased 1.8% to $2.2 billion.
Analysts polled by Thomson Reuters most recently forecast earnings of 31 cents on revenue of $2.15 billion.
Loan-loss provisions fell to $392 million from $662 million a year earlier and $447 million in the previous quarter.
Net chargeoffs, of loans lenders don't think are collectible, were down at 1.76% from 2.57% and 2.01%, respectively. Nonperforming loans, or those near default, declined to 3.14% from 4.16% and 3.46%.
Average loans were up 1.6% at $114.9 million from a year earlier.
