“SunTrust Banks Inc.’s (STI) fourth-quarter profit surged as the regional bank recorded strong non-interest income, primarily due to higher mortgage-related and investment banking revenue.
Based in Atlanta, SunTrust is considered one of the nation’s most attractive regional banks because of its strong position in the South, an area that was hard hit by the housing downturn. But of late SunTrust, like its peers, has found its results challenged by an uncertain economy and low interest rates. In October, SunTrust told investors that revenue from lending and investing would likely decline next year, and the profit margin in that business should fall.
Friday, SunTrust reported that its net interest margin narrowed to 3.36% from 3.46% a year earlier and 3.38% in the third quarter.
Last week, SunTrust was part of a group of 10 banks that said they would pay $8.5 billion to close a regulatory probe and end a process set up in 2011 amid public outrage over banks’ foreclosure practices….”
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