SunTrust's Slow Quarter: Fool by Numbers

On April 17, SunTrust (NYSE: STI) released Q1 2007 earnings for the period ended March 31.

• Net income dipped slightly to $514 million for the quarter from $531.5 million a year ago.
• Because of the current flat yield curve environment, SunTrust has focused on restructuring its balance sheet, which helped net interest margin improve eight basis points over Q4 2006.
• The tough bank and credit environment has slowed growth not only for SunTrust, but also for peers M&T Bank (NYSE: MTB), Washington Mutual (NYSE: WM), and Regions Financial (NYSE: RF).

(Figures in thousands, except per-share data)

Income Statement Highlights

	Q1 2007	Q1 2006	Change
Total Revenue	$1,987,024.0	$1,997,144.0	(0.5%)
Net Interest Income	$1,164,559.0	$1,179,041.0	(1.2%)
Net Profit	$  513,933.0	$  531,527.0	(3.3%)
EPS	$      1.44	$      1.46	(1.4%)

Get back to basics with the income statement.

Balance Sheet Highlights

Assets	Q1 2007	Q1 2006	Change
Net Loans	$115,878,620	$117,090,998	(1.0%)
Total Earning Assets	$163,299,000	$159,064,000	2.7%

Liabilities	Q1 2007	Q1 2006	Change
Deposits	$123,438,275	$121,775,742	1.4%
Total Liabilities	$168,416,303	$161,719,028	4.1%

The balance sheet reflects the company's health.

Ratio Checkups

	Q1 2007	Q1 2006	Change*
Net Interest Margin	3.02%	3.12%	(0.10)%
Efficiency Ratio	59.79%	59.80%	(0.01%)
Nonperforming Loans/Total Loans	0.57%	0.25%	0.32%
Return on Average Assets	1.16%	1.21%	(0.05%)
Return on Average Equity	12.10%	12.64%	(0.54%)

* Expressed in percentage points.

Related Foolishness:

• Before the Call: Waiting for Wachovia
• Banking on Buyouts
• SunTrust + E2 = Efficiency?: Fool by Numbers

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Fool contributor Emil Lee is an analyst and a disciple of value investing. He doesn't own shares in any of the companies mentioned above. Emil appreciates your comments, concerns, and complaints. The Motley Fool has a disclosure policy.