- BB&T (NYSE:BBT) -5.5% premarket after reporting disappointing Q2 results which failed to meet earnings expectations and included a 7.5% Y/Y drop in revenue, as mortgage banking income fell.
- BBT says net income in the mortgage banking unit fell 49% Y/Y to $86M but rose by $12M from Q1.
- Net interest margin was 3.43%, down 9 bps Q/Q due to lower rates on new loans and securities.
- Loan portfolio increased 2.5% Y/Y to $117.1B; commercial loans rose 2.7% to $39.4B.
- BBT's credit quality improved, as its net charge-off rate declined to 0.40%, the lowest level since 2007, from 0.75% a year ago and from 0.55% in Q1.