BB&T beats Q4 earnings estimates; revenues miss

BB&T Corporation (BBT) topped market expectations on earnings for the fourth quarter of 2018 but revenues came in shy of estimates. The stock was up 0.13% in premarket hours on Thursday.

Total revenues rose to $2.94 billion from $2.86 billion in the same period last year. Net income available to common shareholders was $754 million or $0.97 per share versus $614 million or $0.77 per share last year. Adjusted net income was $813 million or $1.05 per share.

Net interest income – taxable equivalent rose to $1.72 billion from $1.68 billion last year. Noninterest income rose slightly to $1.23 billion. Noninterest expense totaled $1.8 billion, down $71 million from the year-ago period. Net interest margin was 3.49%, up 6 basis points compared to last year.

Insurance income grew by $69 million helped by higher production and the Regions Insurance acquisition, which contributed $34 million. Mortgage banking income fell by $18 million mainly due to lower gain-on-sale margins.

Also see: BB&T Corporation Q4 2018 Earnings Transcript

BB&T recorded earnings increases across all its major business units, helped by higher net interest income, driven mainly by higher funding spreads and average loan growth. The OT&C segment generated a net loss of $140 million during the quarter.

BB&T tops Q3 earnings and revenue estimates

At quarter-end, average loans and leases held for investment were $147.5 billion while average deposits were $157.8 billion. Non-performing assets totaled $585 million, down $16 million from the third quarter of 2018, mainly due to a decline in nonperforming commercial and industrial loans, partially offset by increases in smaller portfolios.

For the full year of 2019, BB&T expects taxable-equivalent revenue to be up 2-4% versus 2018. For the first quarter of 2019, GAAP net interest margin is expected to be relatively flat versus the fourth quarter of 2018 while core net interest margin is expected to be slightly up versus Q4 2018. Noninterest income is expected to be up 3-5% in the first quarter of 2019 versus the first quarter of 2018.

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