Substantial increases in both mortgage production income and mortgage servicing income drove a spike in overall net earnings in Q2 for Atlanta-based SunTrust Banks, Inc., according to the bank’s second quarter earnings statement released Friday.
Continuing a second quarter theme exhibited by many the country’s largest banks, revenue from the mortgage segment was largely responsible for improved earnings in Q2 for SunTrust. Mortgage-production related income for the bank climbed by 46 percent year-over-year from $76 million to $111 million in Q2, and mortgage servicing-related income skyrocketed by 73 percent over-the-year from $30 million to $52 million.
The increases in mortgage-related income pushed the bank’s net income available to shareholders for Q2 up to $475 million, which was an increase from $467 million in Q2 of 2015 and from $430 million in Q1 2016.
“Our performance this quarter is further indication of our ability to deliver on our commitments,” said William H. Rogers, Jr., chairman and CEO of SunTrust Banks, Inc. “The consistent execution of our core strategies, combined with the diversity of our business model, resulted in solid revenue growth, strong improvements in efficiency, and significantly higher capital return to shareholders. Despite the impact of the continued low interest rate environment, we remain committed to helping our clients and communities improve their financial confidence, thereby helping our shareholders continue to outperform.”
SunTrust’s total revenue of $2.18 billion in Q2 represented an increase of 6 percent from Q1 and 7 percent from the second quarter of 2015. Sequential revenue growth was driven by a 15 percent increase in noninterest income (from $781 million up to $898 million), most notably by mortgage-related income, investment banking income, and other noninterest income.
Click here to view SunTrust’s complete earnings report for Q2.