Profit fell to $268 million, or 37 cents a share, from $469 million, or 66 cents, a year earlier, the Winston-Salem, North Carolina-based bank said today in a statement. Earnings excluding one-time items were 70 cents, the company said, matching the average estimate of 28 analysts surveyed by Bloomberg.
BB&T, led by Chief Executive Officer Kelly King, had a $235 million tax adjustment in the quarter after losing a court case last month that sought to recover at least $688 million in taxes and penalties. The company said in September it expected the charge to be $250 million.
“Credit quality improvement accelerated in the last two quarters,” King, 65, said in today’s statement. “We maintained a stable net interest margin and reduced expenses.”
King said last month he expected costs to be “somewhat elevated over the next couple of quarters” and that the mortgage business would be “challenging.”
BB&T fell 1.4 percent to $33.73 at 11:39 a.m. in New York. The shares have gained 16 percent this year, compared with the 27 percent advance of the 24-company KBW Bank Index.
To contact the reporter on this story: Laura Marcinek in New York at firstname.lastname@example.org.