BB&T Corporation (BBT)’s Southern Charm (and Prudent Risk Management) Wins Over Regulators

Breaking this down a bit further, as you can see in the figure above, BB&T Corporation (NYSE:BBT)’s $7.1 billion in pre-provision net revenue was largely consumed by loan loss provisions — that is, money set aside to cover future losses from soured loans. These accounted for $6.4 billion in losses, while estimated losses from other sources ate up an additional $100 million.

And digging into the loan losses specifically, BT&T’s were almost equally distributed between commercial and consumer customers. The former accounted for an estimated 53% of the loan losses, while the latter made up the remaining 47%.

Source: Federal Reserve.

At the end of the day, the stress tests are meant to do exactly what the name implies: stress you out. For investors in BT&T, however, there’s literally no reason to feel this way, as the bank has proven again that it’s one of the best-run regional lenders in the country.

The article BB&T’s Southern Charm (and Prudent Risk Management) Wins Over Regulators originally appeared on Fool.com and is written by John Maxfield.

John Maxfield has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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