BB&T reports record year for earnings in 2016

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BBT Corporation reported earnings for 2016 that set a record year for the bank, and increased significantly in the fourth quarter.

Net income increased 17.9% in the fourth quarter to $592 million, up from the fourth quarter of 2015’s $502 million. However, it is down from the third quarter’s $599 million.

Diluted earnings per common share increased to $0.72 per share, up from last year’s $0.64 but down slightly from the third quarter’s $0.73 per share.

Net interest income also increased from last year’s $1.015 billion to $1.162 billion in the fourth quarter. This is down slightly from the third quarter’s $1.164 billion.

However, the annual growth was not due to residential mortgage loans, which decreased 4.1% from 2015.

The company’s CEO explained the recent increase in interest rates actually worked against the bank’s earnings.

“We are pleased to report strong earnings for the fourth quarter,” BBT Chairman and CEO Kelly King said. “While higher interest rates created $34 million in pre-tax charges, revenue growth was strong, expense control was solid and we are well-positioned for future interest rate increases.”

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