The Atlanta lender in August announced that the
had approved its revised 2012 capital plan, including an increase in the quarterly dividend to 10 cents a share from eight cents, and "new share repurchase authorization of up to 100 million shares," including up to $600 million in buybacks through the first quarter of 2013.
Deutsche Bank analyst Matt O'Connor rates SunTrust a "Hold," and said Monday that he expects the company to report third-quarter earnings of $1.96 a share, with "flat/modestly higher loan growth in 3Q--reflecting continued growth in [commercial and industrial loans], offset by recently announced loan sales (likely to take place over the next few quarters) and declines in higher-risk segments such as [commercial real estate], home equity and mortgage."
The analyst sees another strong quarter for revenue from mortgage originations and sales, but said "this should be more than offset by the large $375m mortgage putback charge this quarter."
Interested in more on SunTrust? See TheStreet Ratings' report card for this stock.
Written by Philip van Doorn in Jupiter, Fla.