Fourth quarter losses of SunTrust Banks reflect deep recession of higher charge-offs and reserve-building. While capital and liquidity remain strong, quarterly dividend reduced to $0.10 reflecting challenging credit and earnings environment
SunTrust reports net income available to common shareholders of $746.9 million, or $2.13 per average common diluted share, for 2008 compared to $1,603.7 million, or $4.55 per average common diluted share in 2007.
Net income available to common shareholders in the fourth quarter was a loss of $379.2 million, or $1.08 per average common diluted share, compared to $3.3 million, or $0.01 per average common diluted share, in the fourth quarter of 2007.
“The fact that SunTrust is not alone in paying the price of a deteriorating economy on our business and our clients does not make today’s results any less painful to report,” says James M. Wells III, chairman and CEO, SunTrust.
“Despite our strong capital position, given the strain on earnings from increased credit costs and the challenging revenue environment, SunTrust’s Board of Directors has decided to reduce the quarterly dividend to $0.10 per common share outstanding until the economic environment and earnings outlook improve,” continues James M. Wells III.
“Through this cycle, we will continue to take the steps appropriate to maintain the Company’s fundamental financial strength that is never more important than in a time of economic stress and uncertainty.”
“While understandably eclipsed right now by recession-related credit concerns, the positive momentum generated by these efforts will help us deliver the long-term shareholder value to which we remain committed.”
L.D.