NEW YORK (TheStreet) -- SunTrust Banks' (STI) shares are down -1.59% to $39.09 after reporting that its net interest margin, a key measure of lending profitability, decreased to 3.11% in the second quarter from 3.19% in the first quarter, and from 3.25% in the year ago period.
The bank's year over year second quarter profit rose 5.8% to 81 cents per diluted share, 4 cents better than what Thomson Reuters analysts were expecting.
Revenue also increased 4.6% to $2.2 billion, ahead of analysts expectations of $2.07 billion.
Must Read: Warren Buffett's 25 Favorite Stocks
SunTrust Banks shares are down -1.3% to $39.18 on Monday despite the positive quarterly results.
TheStreet Ratings team rates SUNTRUST BANKS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SUNTRUST BANKS INC (STI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, increase in net income, good cash flow from operations, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows: