trending Market Intelligence /marketintelligence/en/news-insights/trending/adpCB77BrNDPzkzpWR3S-g2 content esgSubNav
In This List

SunTrust Banks sees $2.5B net loss in adverse scenario for mid-cycle stress testing

Blog

Insight Weekly: Private equity slows; SPAC underwriters retreat; carbon capture boost

Podcast

Street Talk | Episode 98: Regulatory scrutiny having cooling effect on community bank M&A

Blog

Insight Weekly: M&A outlook; US community bank margins; green hydrogen players' EU expansion

Podcast

Street Talk | Episode 97: Recessionary fears still keeping bank investors on the sidelines


SunTrust Banks sees $2.5B net loss in adverse scenario for mid-cycle stress testing

Atlanta-basedSunTrust Banks Inc. onOct. 5 reported the results of its Dodd-Frank Act, mid-cycle, company-runcapital stress test.

The resultscover the time period of July 1, 2016, through Sept. 30, 2018, for the companyunder a hypothetical severely adverse economic scenario.

Under sucha scenario, the company's minimum common equity tier 1 ratio was 8.5%, its tier1 risk-based capital ratio was 9.2%, its total risk-based capital ratio was11.4%, and its tier 1 leverage ratio was 8.1%.

Inaddition, the company's risk-weighted assets at the end of the severely adversescenario were projected to total $164.9 billion.

The companyprojected that cumulative pre-provision net revenue would total $4.3 billionover the course of the nine quarters, while the severely adverse scenario wouldalso result in a net loss of $2.5 billion, before taxes.

Total loanlosses under the scenario stood at $5.8 billion, with commercial and industrialaccounting for the biggest chunk of losses at $2.7 billion.