SunTrust Banks’ net income increased to $475 million in the second quarter of 2016, or $0.94 per average common diluted share. This is up from $0.84 per share last quarter, and $0.89 per share the second quarter of 2015.
The company’s total revenue also increased by 6% from last quarter and 7% from last year to $2.2 billion.
This increase was primarily driven by mortgage-related income, according to the company. The revenue growth was driven by a 15% increase in noninterest income, most notably mortgage-related income, other noninterest income and investment banking income.
In fact, mortgage production income for the second quarter was $111 million, up from $60 million the previous quarter and $76 million the previous year.
Mortgage application volume this quarter increased 22% from last quarter and 27% from last year, and closed loan production increased 47% from last quarter and 12% from last year.
Refinances, on the other hand, are down to 45% from 47% last year.
SunTrust had these gains while mortgage rates are near their all-time lows, which means banks are struggling to balance volume with profitability.
