BB&T Profit Rises 7% on Insurance Growth and Fewer Bad Loans
BB&T Corp. (BBT), North Carolina’s second-biggest bank, posted a 7 percent increase in second-quarter profit on improved performance at its insurance and securities units and lower bad-loan charges.
Net income rose to $547 million, or 77 cents a share, from $510 million, or 72 cents, a year earlier, the Winston-Salem-based bank said today in a statement. The average estimate of 32 analysts surveyed by Bloomberg was 74 cents a share.
“These results reflect record performances from our insurance, investment-banking and brokerage, and trust and investment-advisory businesses,” Chief Executive Officer Kelly King, 64, said in the statement. “Improvement in credit quality accelerated this quarter.”
BB&T’s credit rating outlook was cut to negative from stable by Standard & Poor’s and Moody’s Investors Service in March after the Federal Reserve objected to the lender’s capital plan. The bank’s shares have gained 20 percent this year, compared with a 26 percent advance by the 24-company KBW Bank Index. (BKX)
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