Truist Financial Reports 25% Increase in Net Income, Strong Earnings Performance in Q3 2024

Truist Financial Corporation reported a robust performance for the third quarter of 2024, with net income available to common shareholders reaching $1.336 billion, a 25% increase from $1.071 billion in the same quarter of 2023. Earnings per diluted share also rose to $0.99, up from $0.80 year-over-year. The annualized return on average assets improved to 1.10%, compared to 0.86% in the prior year, while the return on average common shareholders’ equity increased to 9.1% from 7.5%.

Total interest income for the quarter was $6.352 billion, up from $6.227 billion in Q3 2023, with net interest income rising to $3.602 billion, a slight increase from $3.535 billion. The net interest margin improved to 3.12%, reflecting a 20 basis point increase. Noninterest income also saw a significant boost, increasing by 11% to $1.483 billion, driven by higher investment banking and trading income.

Truist's total assets as of September 30, 2024, stood at $338.882 billion, a modest increase from $337.493 billion at the end of 2023. However, loans and leases net of the allowance for loan and lease losses (ALLL) decreased to $298.242 billion from $307.263 billion. The company reported a decrease in noninterest-bearing deposits to $105.984 billion, down from $111.624 billion at year-end 2023.

The company’s total shareholders’ equity rose to $65.696 billion, up from $59.253 billion, bolstered by retained earnings of $23.248 billion, an increase from $22.088 billion. The allowance for credit losses was reported at $5.1 billion, with an ALLL ratio of 1.60%, reflecting a slight increase from the previous quarter.

Strategically, Truist completed the sale of its remaining stake in TIH on May 6, 2024, for an enterprise value of $15.5 billion, marking a significant shift in its operational focus. The company is also preparing for the adoption of new accounting standards aimed at enhancing segment disclosures by December 2024. In terms of capital management, Truist announced a stock repurchase program of up to $5 billion, with $503 million repurchased in Q3 2024.

The company’s noninterest expenses decreased by 4.3% to $2.95 billion, attributed to reductions in various expense categories, including personnel costs due to a lower headcount. Truist's commitment to community support was highlighted through its initiatives for areas affected by recent hurricanes.

Overall, Truist Financial Corporation demonstrated strong financial health and strategic adaptability in Q3 2024, positioning itself for continued growth and stability in the evolving financial landscape.