Suntrust 2Q13 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“The credit quality story continues to be a good one, with nonperforming loans and net charge-offs hitting their lowest levels in over 5 years. Nonperforming loans declined by over 50% from last year and this quarter’s net charge-off ratio improved to 59 basis points.”

“Lastly, our capital position continue to improve, with our Tier 1 common ratio reaching new all-time high at an estimated 10.15%.”

“As you’re all aware, a steeper curve is beneficial to spread income for the banking industry. Of course, higher short-term rates in conjunction with a steeper curve would be even better”

“We remain committed to achieving an approximate 65% efficiency ratio in 2013, and to our long-term target of below 60%.”

“In the quarter, about 20% of our refi was HARP. What you’ll see is, applications of HARP are down, down fairly substantially, which wouldn’t be a surprise.”

“I think the rate move that we saw was certainly nice, that the industry certainly needed it. So thank you, Mr. Bernanke. However, what the industry really needs is move up in short-term rates to take us back to the profitability levels that we enjoyed before the crisis.”

“when you think about where the industry’s net exposure is along the curve, it’s generally much shorter as an industry than 10 years. So this is going to help somewhat. It’s not going to be what we need to take us back to much higher net interest margin levels.”

“I think what you ought to see is, across of the industry, you want to see regional banks do better as a result of the new rule than money center banks. You ought to see regional banks do better than investment banks. And you want to see banks that have mortgage exposures do better than banks that don’t have mortgage exposures.”

“one of the things that I’m concerned about in general is, as a country, as an industry, have we trained consumers that it’s okay to not repay debt? And is there going to be a higher incidence of default over time in the future than there has been in the past?”

“there just really is embedded increased different cost of compliance that didn’t exist before.”

“Never say never for acquisitions, I guess, but we’ve got so much opportunity, Brian, to run our company better and become more efficient, to focus on our clients and just do more business. That’s really what we’re focused on.”

“Our commercial pipeline was about equal to what it was at the end of the first quarter. But that’s about 60% ahead of where it was at the end of 2012. So we’re built — so we’re building a pipeline that’s positive. “

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