SunTrust (STI) shares surged nearly 7% today. The Atlanta, Georgia company released a statement distributed by PRNewswire-FirstCall, reaffirming its condition in response to recent commentary and market activity. STI said second quarter 2008 net charge-offs are expected to be within the range it previously indicated, up 15% to 20% from 1Q.
Tier 1 capital ratio is expected to be approximately 8%.
The company also said that it expects to maintain its current dividend given its capital ratios and current views on credit. It doesn’t see itself issuing additional shares of common stock.
From the Bull Pen: SunTrust shareholders relieved with today’s statements can set sell-stops below today’s low.
From the Bear Cave: We’ve mentioned M&T Bank (MTB) at $80. Bears can continue to press the downside with the expectation that this stock might see accelerated selling pressure should it break $70 support.
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