NEW YORK – Truist Financial Corp. (NYSE:) reported fourth quarter earnings and revenue that surpassed analyst expectations, sending its shares up 1.76% in early trading.
The Charlotte-based bank posted adjusted earnings per share of $0.91, exceeding the consensus estimate of $0.88. Revenue came in at $5.11 billion, topping expectations of $5.04 billion but down 0.6% YoY.
Net interest income decreased 0.4% compared to the previous quarter, with net interest margin falling five basis points to 3.07%. Noninterest income declined 0.9% due to lower investment banking and trading income, partially offset by higher other income.
Average loans and leases held for investment remained flat, while average deposits increased 1.5%. The average cost of total deposits was 1.89%, down 19 basis points from the previous quarter due to deposit repricing.
“2024 was an important year for Truist. We added new clients and deepened existing relationships, invested in our core banking business, made enhancements to our technology and risk infrastructure, and maintained our credit and expense discipline,” said Bill Rogers (NYSE:), Truist Chairman & CEO.
The bank’s CET1 ratio stood at 11.5%, indicating strong capital levels. Truist repurchased $500 million in common shares during the quarter and returned $3.8 billion to shareholders through dividends and share repurchases for the full year 2024.
Asset quality remained relatively stable, with nonperforming loans to total loans decreasing by one basis point. The net charge-off ratio increased by four basis points to 59 basis points, driven by higher net charge-offs in the commercial and industrial and indirect auto portfolios.
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