BB&T Corp. (BBT:US), North Carolina’s second-biggest bank, fell the most in 17 months after reporting first-quarter profit that missed analysts’ estimates.
BB&T slumped 3.9 percent to 37.80 at 10:03 a.m. in New York after declining as much as 4.4 percent, the most since November 2012. The Winston Salem-based lender was the worst performer in the 24-company KBW Bank Index, which slid 0.8 percent.
First-quarter profit rose to $501 million, or 69 cents a share, the bank said today in a statement, falling short of the 70-cent estimate (BBT:US) of 32 analysts in a Bloomberg survey. Revenue slipped 6.7 percent to $2.3 billion as fees tied to home lending declined.
“Consistent with industry trends, mortgage-banking income declined as originations were down from last year’s record levels,” Chief Executive Officer Kelly King said in the statement. “Insurance revenues were very strong for the quarter, credit results continued to improve and expenses were down.”
BB&T joins other regional banks such as U.S. Bancorp and PNC Financial Services Group Inc. that have struggled to increase revenue with interest rates near historic lows and demand for U.S. home loans declining.
To contact the reporter on this story: Elizabeth Dexheimer in New York at email@example.com
To contact the editors responsible for this story: Peter Eichenbaum at firstname.lastname@example.org Steven Crabill, Dan Kraut