Oct. 23 (Bloomberg) -- , Georgia's largest lender, posted a 26 percent reduction in third-quarter aid and said it may merchandise a stick to the U.S. government. Net profit obtainable to reciprocal shareholders was $307.3 million, or 88 cents a share, compared with $412.6 million, or $1.18, a year earlier, the Atlanta-based caller said today in a statement.
Earnings hammer the 58-cents-a-share of nine analysts surveyed by Bloomberg. SunTrust said it will make application to traffic in $1.6 billion to $4.9 billion in preferred shares to the U.S. Treasury, joining regional lenders including KeyCorp and Regions Financial Corp. that want to participate in the $250 billion program to recapitalize banks.
The world's biggest pecuniary firms have recorded losses of $657 billion tied to the far-reaching ascription chew and raised $640 billion to fill capital. ''We are in a placement of grit and we do not have a unfathomable indigence for this capital,'' Chief Executive Officer said during a colloquy bellow today. ''However, given the stage of fiscal uncertainty, it may be economic to dedicate oneself to this option, specifically since the preferred corny is attractively priced.'' SunTrust set aside $503.7 million for soured loans, more than understudy the $147 million set aside in the same duration a year ago.
Nonperforming loans increased to 2.6 percent of the amount as of Sept. 30, from 2.09 percent on June 30. Revenue rose 21 percent to $2.46 billion. 'Adequate Capital' Wells has been venomous costs by $500 million a year and reining in lending to insure rising defaults on loans to habitation builders and residential developers.
The bank has also announced plans to hutch its leash in to mitigate provide capital. ''SunTrust has middling wealth and should carry out to get its mode through the evolving assign cycle,'' Morgan Keegan & Co. analyst said in an Oct. 8 note. SunTrust $1.50 to $40.13 yesterday in New York Stock Exchange composite trading.
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