BBT » Topics » BB&Ts Fee Based Businesses Produce Solid Quarterly Growth Rates

This excerpt taken from the BBT 8-K filed Jan 22, 2009.

BB&T’s Fee Based Businesses Produce Solid Quarterly Growth Rates

     Noninterest income, excluding securities gains and losses, increased $49 million, or 6.8%, during the fourth quarter of 2008 compared to 2007. These increases were composed of higher revenues from BB&T’s insurance operations, which increased $26 million, or 11.8%, and record revenues from BB&T’s investment banking and brokerage operations, which increased $11 million, or 12.9%, compared to the fourth quarter last year. Revenue from both service charges on deposit accounts and other nondeposit fees and commissions increased slightly as compared to the fourth quarter of 2007, while trust and investment advisory revenues declined $10 million. The decline in trust and investment advisory revenues was due to lower asset values, which are the basis for these revenues.

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     These increases also include a solid performance from mortgage banking operations during the quarter. Revenues from mortgage banking operations totaled $76 million for the fourth quarter of 2008, an increase of 181.5% compared to the fourth quarter of 2007. This increase reflects the adoption of fair value accounting standards and the net change in the mortgage servicing rights valuation. Fair value accounting increased mortgage banking income by $11 million, but was neutral to earnings because it also resulted in an $11 million increase in personnel expense during the quarter. The net change in the valuation of mortgage servicing rights resulted in an increase of $31 million compared to the fourth quarter of 2007. The increase was the result of the mortgage servicing rights hedge outperforming the decline in the value of the asset. Excluding the impact of these items, mortgage banking income increased $7 million, or 21.9%, compared to the same period last year. The growth in mortgage banking income includes strong production revenues from residential mortgage banking operations.

     Other noninterest income totaled $7 million for the fourth quarter of 2008, down substantially compared to $44 million earned in the same quarter last year. This decrease primarily resulted from $25 million in losses on trading, hedging and other market-related activities as well as reduced earnings of $10 million from investments in low income housing partnerships that generate tax benefits.

This excerpt taken from the BBT 8-K filed Jan 17, 2008.

BB&T’s Fee Based Businesses Produce Solid Quarterly Growth Rates

      Noninterest income, excluding securities gains and losses, increased $42 million, or 6.2%, during the fourth quarter of 2007 compared to 2006. These increases include higher revenues from BB&T’s insurance operations, service charges on deposit accounts, and other nondeposit fees and commissions, as well as a solid performance from both BB&T’s investment banking and brokerage operations and mortgage banking operations during the quarter.

     Commissions from BB&T’s insurance operations increased 3.3% to $221 million in the current quarter compared with $214 million earned in the fourth quarter of 2006. This increase was primarily the result of growth from improved sales of insurance products, which were partially offset by more competitive pricing in the property and casualty insurance market.

     Service charges on deposit accounts totaled $165 million for the fourth quarter of 2007, an increase of 17.0% compared to $141 million earned in the same quarter last year. This increase was attributable to growth in revenues from overdraft items.

     Other nondeposit fees and commissions totaled $133 million for the fourth quarter of 2007, an increase of 14.7% compared to the fourth quarter of 2006. This increase was generated primarily by growth in bankcard income and debit and check card related services.

     BB&T’s investment banking and brokerage operations enjoyed a solid quarter as fees increased 13.3% to $85 million compared to $75 million earned in the same quarter last year. This increase was primarily driven by growth in revenues at Scott & Stringfellow.

     Revenues from mortgage banking operations totaled $27 million for the fourth quarter of 2007, an increase of 12.5% compared to the fourth quarter of 2006. This growth was primarily attributable to an increase in commercial mortgage banking revenues, which increased 27.3% to $14 million in the fourth quarter of 2007 compared to $11 million earned during the fourth quarter of 2006, as a result of the acquisition of Collateral Real Estate Capital, LLC.

     Other noninterest income totaled $44 million for the fourth quarter of 2007 compared to $65 million earned in the same quarter last year, a decrease of 32.3%. This decrease primarily resulted from losses on trading, hedging and other market activities.

This excerpt taken from the BBT 8-K filed Jan 18, 2007.

BB&T’s Fee Based Businesses Produce Solid Quarterly Growth Rates

          Noninterest income, excluding securities gains and losses, increased $56.2 million, or 9.1%, during the fourth quarter of 2006 compared to 2005. These increases include higher revenues from BB&T’s insurance operations and other nondeposit fees and commissions, as well as solid performances from BB&T’s investment banking and brokerage operations and trust operations while revenues from service charges on deposit accounts and mortgage banking operations decreased slightly during the quarter.


          Commissions from BB&T’s insurance operations increased 8.7% to a record $214.5 million in the current quarter compared with $197.4 million earned in the fourth quarter of 2005. This increase was the result of growth in commissions from the sale of property and casualty coverage, and improved sales of employee benefits-related insurance products.

          Other nondeposit fees and commissions totaled $115.6 million for the fourth quarter of 2006, an increase of 15.4% compared to the fourth quarter of 2005. This increase was generated primarily by growth in debit card related services.

          BB&T’s investment banking and brokerage operations enjoyed a solid quarter as fees increased 7.6% to $75.0 million compared to $69.7 million earned in the same quarter last year. This increase was primarily driven by growth in revenues at Scott & Stringfellow.

          Trust revenues increased 6.8% to $39.5 million in the fourth quarter of 2006 compared with $36.9 million earned in the fourth quarter of 2005. This increase was primarily attributable to improved performance from the wealth management division.

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