BB&T Corporation (BBT) has reported a 25.35 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $421 million, or $0.46 a share in the quarter, compared with $564 million, or $0.67 a share for the same period last year. Revenue during the quarter grew 11.48 percent to $2,632 million from $2,361 million in the previous year period. Net interest income for the quarter rose 5.23 percent over the prior year period to $1,609 million. Non-interest income for the quarter rose 15.26 percent over the last year period to $1,171 million.
BB&T Corporation has made provision of $148 million for loan losses during the quarter, down 19.57 percent from $184 million in the same period last year.
Net interest margin improved 3 basis points to 3.46 percent in the quarter from 3.43 percent in the last year period. Efficiency ratio for the quarter deteriorated to 75.60 percent from 60.70 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"We are pleased to report strong earnings for the first quarter," said chairman and chief executive officer Kelly S. King. "During the quarter, we terminated $2.9 billion of higher-cost FHLB advances, resulting in a pre-tax loss on early extinguishment of $392 million, or $0.30 per diluted share. This strategic action lowers our future borrowing costs and provides a boost to future margins and earnings."
Deposits stood at $161,333 million as on Mar. 31, 2017, up 7.20 percent compared with $150,500 million on Mar. 31, 2016.
Noninterest-bearing deposit liabilities were $53,262 million or 33.01 percent of total deposits on Mar. 31, 2017, compared with $47,258 million or 31.40 percent of total deposits on Mar. 31, 2016.
Investments stood at $44,877 million as on Mar. 31, 2017, down 3.45 percent or $1,603 million from year-ago. Shareholders equity was at $30,025 million as on Mar. 31, 2017.
Return on average assets moved down 30 basis points to 0.79 percent in the quarter from 1.09 percent in the last year period. At the same time, return on average equity decreased 273 basis points to 5.72 percent in the quarter from 8.45 percent in the last year period.
Nonperforming assets moved down 11.30 percent or $102 million to $801 million on Mar. 31, 2017 from $903 million on Mar. 31, 2016. Meanwhile, nonperforming assets to total assets was 0.36 percent in the quarter, down from 0.42 percent in the last year period.
Tier-1 leverage ratio stood at 10 percent for the quarter, down from 10.10 percent for the previous year quarter.
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