STI 2018 Annual Report

70 FOURTH QUARTER 2018 RESULTS Fourth Quarter Consolidated Statements of Income Table 28 Three Months Ended December 31 Increase/(Decrease) (Dollars in millions, except per share data) 2018 2017 Amount % 1 Interest income $1,944 $1,640 $304 19 % Interest expense 397 206 191 93 NET INTEREST INCOME 1,547 1,434 113 8 Provision for credit losses 87 79 8 10 NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 1,460 1,355 105 8 NONINTEREST INCOME Service charges on deposit accounts 146 150 (4) (3) Other charges and fees 2 92 91 1 1 Card fees 83 88 (5) (6) Investment banking income 2 146 122 24 20 Trading income 24 41 (17) (41) Mortgage related income 3 85 104 (19) (18) Trust and investment management income 74 80 (6) (8) Retail investment services 74 70 4 6 Commercial real estate related income 68 62 6 10 Net securities gains/(losses) — (109) 109 (100) Gain on sale of subsidiary — 107 (107) (100) Other noninterest income 26 27 (1) (4) Total noninterest income 818 833 (15) (2) NONINTEREST EXPENSE Employee compensation 737 702 35 5 Employee benefits 120 101 19 19 Outside processing and software 242 214 28 13 Net occupancy expense 102 97 5 5 Marketing and customer development 49 104 (55) (53) Equipment expense 42 41 1 2 Regulatory assessments 7 43 (36) (84) Operating losses 39 23 16 70 Amortization 22 25 (3) (12) Consulting and legal fees 20 22 (2) (9) Other staff expense 14 46 (32) (70) Other noninterest expense 88 102 (14) (14) Total noninterest expense 1,482 1,520 (38) (3) INCOME BEFORE PROVISION/(BENEFIT) FOR INCOME TAXES 796 668 128 19 Provision/(benefit) for income taxes 136 (74) 210 NM NET INCOME INCLUDING INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST 660 742 (82) (11) Less: Net income attributable to noncontrolling interest 2 2 — — NET INCOME 658 740 (82) (11) Less: Preferred stock dividends 26 30 (4) (13) NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $632 $710 ($78) (11)% Net interest income-FTE 4 $1,570 $1,472 $98 7 % Net income per average common share: Diluted 1.40 1.48 (0.08) (5) Basic 1.41 1.50 (0.09) (6) 1 “NM” - Not meaningful. Those changes over 100 percent were not considered to be meaningful. 2 Beginning July 1, 2018, we began presenting bridge commitment fee income related to capital market transactions in Investment banking income on the Consolidated Statements of Income. For periods prior to July 1, 2018, this income was previously presented in Other charges and fees and has been reclassified to Investment banking income for comparability. 3 Beginning with this Form10-K, we began presentingMortgage production related income andMortgage servicing related income as a single line itemon the Consolidated Statements of Income titled Mortgage related income. Prior periods have been conformed to this updated presentation for comparability. 4 See Table 29, “Selected Financial Data and Reconcilement of Non-U.S. GAAP Measures,” in this MD&A for additional information and reconciliations of non-U.S. GAAP performance measures.