SunTrust Banks, Inc. (NYSE:STI) Q1 2015 Earnings Conference Call Transcript

Apr 20, 2015 • 08:00 am ET

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SunTrust Banks, Inc. (NYSE:STI) Q1 2015 Earnings Conference Call Transcript

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Presentation
Operator
operator

Welcome to the SunTrust First Quarter 2015 Earnings Conference Call. All participants are in a listen-only mode for the duration of today's conference, which is being recorded. If you have any objections you may disconnect at this time. After the presentation, we will conduct a question-and-answer session. (Operator Instructions).

Now, I will turn the call over to Mr. Ankur Vyas Director of Investor Relations. Thank you may begin.

Executive
Ankur Vyas

Good morning and welcome to SunTrust first quarter 2015 Earnings Conference Call. Thank you for joining us. In addition to today's press release, we've also provided a presentation that covers the topics we plan to address during our call. The press release, presentation and detailed financial schedules can be accessed at investors.suntrust.com.

With me today among other members of our executive management team, are Bill Rogers our Chairman and Chief Executive Officer and Aleem Gillani, our Chief Financial Officer. (Forward-Looking Cautionary Statement)

During the call, we will discuss non-GAAP financial measures, when talking about the companies perform. You can find the reconciliation of these measures to GAAP financial measures in our press release and on our website investors.suntrust.com. Finally, SunTrust is not responsible for and does not edit nor guarantee the accuracy of our earnings teleconference transcripts provided by third parties. The only authorized live and archived webcast are located on our website.

With that, I'll now turn the call over to Bill.

Executive
Bill Rogers

Thanks Ankur and good morning everyone. I'll begin with a brief overview of the quarter and then turn it over to Aleem for some additional details. Following Aleem's comments, I'll wrap up our prepared remarks by reviewing our performance of the business segment level, then of course we'll take some Q&A.

Earnings per share for the quarter were $0.78 on net income to common of $411 million that was up 7% per share relative to a year ago. Overall, this quarter results were solid with good performance in the certain areas, including continued expense discipline, higher mortgage and capital markets related income, strong credit quality and further deposit growth. These favorable trends help to counteract the decline in net interest margin over the past year.

Total revenue decline compared to both prior quarter and prior year entirely due to the lower net interest income, much of which was anticipated as the prolonged low interest rate environment continues to pressure asset yields. Partially offsetting this was an improvement in non-interest income, driven by an increase in mortgage and capital markets related revenue.

Current quarter expenses were relatively stable to the adjusted level in the fourth quarter at seasonally higher personnel costs were offset by reductions in most other operating expense categories. So a portion of these declines were seasonal or non-recurring in nature. More importantly, expenses were down 3% from the prior year adjusted level as a result of continued expense, management efforts, lower operating costs -- lower operating losses and the sale of RidgeWorth. The combination of these revenue and expense trends resulted in an adjustable tangible efficiency ratio of