Financial giant sees insurance business drive profits, but plans to close branches

The bank saw record net income in the second quarter, driven largely by its insurance business

Financial giant sees insurance business drive profits, but plans to close branches

Insurance News

By Ryan Smith

BB&T Corp. saw record net income in the second quarter, thanks largely to a boost in fee income from its insurance business.

BB&T reported second-quarter net income of $631 million, according to North Carolina’s Winston-Salem Journal. That’s up 16.6% from a year ago, the bank said.

BB&T chairman and CEO Kelly King said that the quarterly uptick was driven largely by increases in loan and fee revenues, the Journal reported.

“Taxable-equivalent revenues were a record $2.9 billion, up 3.9%,” King said. “Net interest income was up $18 million, and noninterest income was up $90 million from last year.”

The bank’s fee income was up 8% to $1.22 billion, led by income from its insurance business, the Journal reported. Insurance income was up 3.4% to $481 million.

BB&T has the fifth-largest insurance agency and brokerage network in the country, and the sixth largest in the world.

Despite its strong quarter, the bank plans to close at least 130 branches this year, the Journal reported. The planned branch closings are part of a strategy by the bank to emphasize its digital platforms. The bank closed four branches during the second quarter, and is down 61 from a year ago.


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