Magazine article American Banker

SunTrust Exceeding Its Own Expectations in Revenue Gains from Crestar Takeover

Magazine article American Banker

SunTrust Exceeding Its Own Expectations in Revenue Gains from Crestar Takeover

Article excerpt

SunTrust Banks Inc. is outstripping its own predictions for revenue gains from the purchase of Crestar Financial Corp., a bank executive said Friday.

The $91.1 billion-asset banking company-which closed its purchase of Richmond, Va.-based Crestar on Dec. 31-said it is seeing strong signs of earnings growth in its new markets.

"We are slightly ahead of schedule on our revenue synergies," said Eugene Putnam, senior vice president and head of investor relations at SunTrust. "We're very pleased to see that we're continuing to grow revenue throughout the Crestar markets, as well as in our SunTrust markets."

Former Crestar branches have been capitalizing on their new ability to offer SunTrust's broader array of products and services, he said.

"We've seen growth in the trust and investment banking businesses in the Crestar markets, while mortgage banking and student lending have risen across the entire franchise," he added.

Contrary to some recent reports, however, Mr. Putnam said Atlanta-based SunTrust is not ahead of schedule for its merger-related cost savings. The banking company expects to achieve roughly $95 million, or about 75%, of the $130 million of savings in 1999. The balance will appear in 2000, Mr. Putnam said. These cost-reduction targets were announced along with the deal last July, he said.

"We are right on schedule with cost savings both in terms of dollar amounts to be realized and the timing in which we expect them to show up," Mr. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.