SunTrust Banks, Inc. (NYSE:STI.PRE) Q3 2016 Earnings Conference Call - Preliminary Transcript

Oct 21, 2016 • 08:00 am ET


SunTrust Banks, Inc. (NYSE:STI.PRE) Q3 2016 Earnings Conference Call - Preliminary Transcript


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Welcome to the SunTrust Third Quarter 2016 Earnings Conference Call. At this time all participants are n a listen only-mode until the question and answers session of today's conference call. (Operator Instructions). I'd like to inform you that the call is being recorded and if you have any objections, you may disconnect at this time.

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

Ankur Vyas

Thank you, Iris. Good morning, everyone and welcome to our third quarter 2016 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 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. Before we get started, I need to remind you that our comments today may include forward-looking statements. These statements are subject to risks and uncertainty and actual results could differ materially.

We list the factors that might cause actual results to differ materially in our SEC filings which are available on our website. During the call, we will discuss non-GAAP financial measures when talking about the Company's performance. You can find the reconciliation of these measures to GAAP financial measures in our press release and on our website, 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 webcasts are located on our website.

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

Bill Rogers

Thanks, Ankur and good morning, everyone. I'll begin with a brief overview of the quarter and then I'll turn it over to Aleem for additional details including our results at the business segment level. I'll conclude with some perspectives on how this quarter's performance fits into our long term strategy and overall investment thesis. We reported $0.91 of earnings this quarter which represents a 2% increase relative to the core earnings of the prior quarter and prior year. Overall, I'd characterize this as a good quarter. Revenue growth in particular was very strong, up 8% compared to the prior year and reflects the ongoing investments we've made in each of our businesses over the past few years. Non-interest income was up 10% year-over-year, driven by strength in mortgage and another record quarter in capital markets which is clear that we're increasingly becoming a preferred strategic advisor to our clients.

Net interest income was up 1% sequentially and 8% year-over-year. Our businesses remain focused on managing the balance sheet in a strategic, profitable manner which has allowed us to overcome much of the margin compression. The $1 billion auto loan sale we executed this quarter is fully consistent with our commitment to meet our clients' needs, while also optimizing the balance sheet by