SunTrust Sees No Need To Cut Dividend, Sell Shares
SunTrust Banks on Friday said it does not expect to change its quarterly dividend or issue additional common shares, soothing concern that the large U.S. Southeast regional bank might need to raise or preserve capital to address credit problems.
Atlanta-based SunTrust said it still expects second-quarter net charge-offs to rise 15 percent to 20 percent from the first quarter.
It also said it expects to discuss previously outlined capital-raising transactions when it releases quarterly results on July 22.
The transactions should result in a Tier-1 capital ratio of about 8 percent, it said, well above the regulatory minimum.
SunTrust shares were up $1.50 or 4 percent, at $36.83 in late-afternoon trading following the announcement, after having earlier been down as much as 8.5 percent.