Thursday, October 18, 2012

BB&T earnings jump 28 percent, shares fall

BB&T's reported Thursday that its earnings jumped 28 percent in the third quarter, but investors sent its stock tumbling as the results fell below expectations.

The Winston-Salem bank reported earning $469 million in the quarter, or 66 cents per share. That's up from $366 million -- 55 cents per share -- in the same time period last year.

But analysts had predicted earnings of 70 cents per share in the third quarter, and BB&T's profit clocked in below the quarter before as the bank absorbed costs from its acquisitions of Florida-based BankAtlantic and Crump Insurance.

The bank's stock price closed down more than 7 percent Thursday, to $29.98.

BB&T's profit was driven by a 63  percent jump in mortgage banking income as refinancings continue.

"We are pleased to report very strong results for the third quarter," CEO Kelly King said in a statement.


Anonymous said...

I can understand earnings up by the ungodly fees they charge.