The Atlanta-based bank (NYSE: STI), the No. 3 lender in the Triangle by deal in share, had grate gain of $746.9 million and income of $2.13 a share, compared with pocket profit of $1.6 billion and compensation of $4.55 a part in 2007. Revenue was $9.2 billion -- an further of 11.6 percent over 2007 due to incremental securities gains, gains from the selling of non-strategic businesses, a attain on Visa interest, move openwork mark-to-market valuation losses, and increased fare revenue from pith businesses. Net animate income was $4.7 billion - down 1.8 percent from 2007.
Retail and commercial banking concluding takings for the year dropped 61.2 percent, to $306.6 million. SunTrust ended the year with aggregate assets of $189.3 billion. The bank also got $4.85 billion in U.S. Treasury Troubled Asset Relief Program funds in 2008.
The bank esteemed in its revenue notice that undistinguished loans leftover increased 6.3 percent on an annualized heart from third pity 2008 to the fourth quarter, and SunTrust extended inhumanly $14 billion in revitalized attribute to customers during the period. For the fourth quarter, SunTrust had a strainer shrinkage of $379.2 million and a disappearance per dispensation of $1.08, compared with lattice-work return of $3.3 million and wages of 1 cent a split in the same period of 2007.
Fourth-quarter profits increased 9 percent to $1.93 billion. In the fourth quarter, SunTrust's victualling for credit losses was $962.5 million, compared with $356.8 million in the same duration of 2007. And lattice charge-offs were $552.5 million, up from $168 million in the fourth three months of 2007.
"The certainty that SunTrust is not solitarily in paying the premium of a deteriorating frugality on our traffic and our clients does not make today's results any less raw to report," said James M. Wells III, SunTrust chairman and CEO, in a statement. Wells notable increased unemployment and continued declines in hospice values drove accommodation delinquencies significantly higher during the fourth fourth of 2008, resulting in higher than expected trustworthiness losses. "We are under no illusions as to the obduracy of this honesty cycle," he said.
"Managing successfully through it remains our edition one priority." In return to the low returns, SunTrust has frozen any excellence increases during 2009 for its governorship yoke of roughly 4,000 managers and executives. "Only verecund promotional increases where significant untrained responsibility was added," will be fitting for pay raises next year, the bank stated. Also, operation has recommended to the board's compensation cabinet that no bonuses be paid to single out ranking executives because SunTrust's 2008 interpretation was below expectations.
SunTrust also reported it has cold shoulder its quarterly dividend to 10 cents a helping from 54 cents a appropriate until the economic environment and earnings opinion improve. The new dividend is also 87 percent mark down than the 77 cents per pay out paid out by SunTrust at the beginning of 2008. The back-to-back dividend cuts are the oldest in late respect for the Atlanta-based regional bank.
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