"Looking ahead to 2014, we are optimistic about a number of initiatives that will help drive performance," BB&T CEO Kelly King said in the company's earnings release. "We recently announced an agreement to acquire 21 retail branches in Texas that will accelerate the growth of our franchise in these fast growing markets. We also continue to expand our wealth, corporate banking, insurance and specialized lending businesses," he added.
Jefferies analyst Ken Usdin in a note to clients on Thursday called BB&T's top-line results "a bit soft."
"We peg operating EPS at $0.73 excluding the loan sale gain and merger charges. In our view, the quarter beat consensus of $0.72 but in a "low-quality" way. Lower-than-expected provision expense helped offset lower purchase accounting accretion and soft insurance revenues. Otherwise, expenses were well-controlled and capital accretion was robust," Usdin wrote.
The analyst rates BB&T a "hold," with a price target of $40.00.
BB&T's shares were slightly higher in premarket trading to $38.85.
The following chart shows the performance of BB&T's stock against the KBW Bank Index (I:BKX) and the S&P 500
data by YCharts
-- Written by Philip van Doorn in Jupiter, Fla. Follow @PhilipvanDoorn
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