Truist Financial Corporation (TFC) has reported a strong fourth-quarter performance for 2024, with net income available to common shareholders reaching $1.2 billion.Truist Financial Corporation has released its fourth-quarter results for 2024, showcasing a robust performance with net income available to common shareholders reaching $1.2 billion, translating to earnings per share (EPS) of $0.91. This marks a significant turnaround from the fourth quarter of 2023, when the company reported a net loss.
The increase in average deposits by $5.7 billion and a reduction in deposit costs by 19 basis points were key drivers of the positive results. Additionally, Truist repurchased $500 million in common shares and maintained a dividend payout ratio of 57%. Total taxable-equivalent revenues for the quarter were slightly down by 0.6% compared to the previous quarter, with net interest income decreasing by 0.4% and noninterest income declining by 0.9%. The latter was primarily due to lower investment banking and trading income, although gains in other income streams partially offset this.
Noninterest expenses saw a 3.7% increase, driven by higher professional fees and equipment expenses, though personnel expenses decreased. The company also reported stable asset quality, with nonperforming loans decreasing by one basis point. Truist Reports Better than Expected Results for Fourth QuarterTruist’s actual performance exceeded market expectations for the fourth quarter. Analysts had projected an EPS of $0.8842 and revenue of $5.04 billion. The bank outperformed these expectations with an EPS of $0.91 and total revenue of $5.11 billion.
The better-than-expected EPS was primarily driven by effective cost management and strategic repositioning of the balance sheet, which contributed to a healthier net interest margin of 3.07% despite a slight decline from the previous quarter.
The comparison to the prior year’s fourth quarter is stark, as a $6.1 billion goodwill impairment heavily impacted 2023’s results. In contrast, 2024’s fourth-quarter results reflect a strong recovery and growth trajectory. Guidance and Strategic OutlookLooking ahead, Truist has provided guidance that reflects confidence in its ability to continue delivering strong financial performance. The company leverages its enhanced capital position to support client growth and return capital to shareholders.
The CET1 ratio remains strong at 11.5%, providing a solid foundation for future investments and strategic initiatives. Truist’s management has emphasized its commitment to maintaining credit and expense discipline while exploring opportunities in high-growth markets.
CEO Bill Rogers highlighted the company’s strategic priorities, including deepening client relationships and investing in core banking and technology.More By This Author:Netflix Stock Poised For 12.6% Rise With New “Buy” RatingBank Of America Surpasses Expectations With $0.82 EPS In Q4 2024 UnitedHealth Group’s Q4 2024 Revenue Growth Reflects Adaptability In Healthcare Market
