SunTrust Banks, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Reports Net Charge-Offs for the Fourth Quarter of 2016; Provides Earnings Guidance for the Year 2017
For the full year, earnings per share increased 1% from $3.58 in 2015 to $3.60 in 2016 driven by strong revenue growth and higher capital returns, partially offset by a higher provision expense and higher noninterest expense. For 2016, total revenue was $8.7 billion, an increase of $568 million, or 7%, compared to 2015. The increase was driven by higher net interest income, as well as strong growth in mortgage and capital markets-related income, partially offset by lower wealth management-related income and lower securities gains. Net interest income was $5.4 billion, a $453 million, or 9%, increase compared to 2015. The increases in net interest income was driven by the same factors that impacted the sequential and year-over-year comparisons discussed above. Return on average total assets was 0.94% against 1.02% a year ago. Return on average common shareholders' equity was 7.97% against 8.46% a year ago.
The company reported net charge-offs of $136 million during the current quarter, an increase of $53 million compared to the fourth quarter of 2015. The increase was driven by energy, commercial real estate, and indirect auto.
The company provided earnings guidance for the year 2017. The company is confident that 2017 will be another year in which it will continue positive financial performance trajectory and improve financial confidence for clients and communities.