Key Takeaways
- Truist Financial posted better-than-expected first-quarter profit on a jump in noninterest income.
- Net interest income fell as it paid more for deposits as loan demand dropped.
- Truist lowered its full-year revenue outlook to a 4% to 5% decline from a drop of 1% to 3%.
Shares of Truist Financial (TFC) advanced Monday as the financial services provider posted a quarterly profit beat, but warned about revenue the rest of the year.
Truist reported first-quarter adjusted earnings per share (EPS) of $0.90, beating estimates, but revenue dropped 8.8% to $4.87 billion, short of forecasts.
Truist’s net interest income declined 4.2% to $3.43 billion, missing expectations, and net income margin slid 7 basis points (bps). The bank blamed “lower earning assets and higher funding costs.” However, noninterest income jumped 6.1% to $1.45 billion on higher investment banking and trading income.
The company also paid $75 million in a special assessment by the Federal Deposit Insurance Corporation (FDIC) to help pay the costs of the federal takeover of failed banks.
Chief Executive Officer (CEO) Bill Rogers explained that Truist faced muted loan demand while deposit costs continued to rise.
The company predicted full-year taxable-equivalent revenue to fall 4% to 5%, down from its previous outlook of a dip of 1% to 3%.
Truist Financial shares were up 1.9% to $37.50 as of 11:13 a.m. ET Monday.
FAQs
Truist Financial posted better-than-expected first-quarter profit on a jump in noninterest income. Net interest income fell as it paid more for deposits as loan demand dropped. Truist lowered its full-year revenue outlook to a 4% to 5% decline from a drop of 1% to 3%.
Is Truist Bank in trouble financially? ›
Truist Financial's odds of distress is over 50% at the present time. It has a moderate probability of going through some financial straits in the next 2 years. Probability of distress shows the probability of financial torment over the next two years of operations under current economic and market conditions.
Is Truist financially strong? ›
Truist Financial has the Financial Strength Rank of 3.
What is Truist Wealth annual revenue? ›
According to Truist Financial's latest financial reports the company's current revenue (TTM ) is $14.50 B. In 2023 the company made a revenue of $21.64 B a decrease over the revenue in the year 2022 that were of $23.10 B.
Should I sell Truist stock now? ›
Truist Financial has a consensus rating of Moderate Buy which is based on 9 buy ratings, 7 hold ratings and 0 sell ratings.
Is my money safe at Truist Bank? ›
Meanwhile, Truist One Savings doesn't require a particular checking account. Truist is FDIC insured. You'll be able to deposit up to $250,000 in an individual bank account and your money will be secure.
What is the Truist controversy? ›
Charlotte-based Truist Bank is being sued by a group of customers who say it failed to protect their personal information from hackers. "We're aware of and currently reviewing the filing, but we don't generally comment on pending litigation," a Truist spokesperson told WCNC Charlotte.
What is the risk rating of Truist Bank? ›
Truist Bank
| Rating | S&P | DBRS Morningstar |
|---|
| Outlook / credit trend | Stable | Stable |
| Issuer | A / A-1 | AA / R-1H |
| Deposits | no rating | AA |
| Senior unsecured | A | AA |
1 more rowBased on short-term price targets offered by 22 analysts, the average price target for Truist Financial Corporation comes to $46.76. The forecasts range from a low of $42.00 to a high of $51.00. The average price target represents an increase of 6.66% from the last closing price of $43.84.
What is the risk of Truist Bank failure? ›
Although all banks bear some risk of failure, Truist is much more solid than the regional banks that collapsed this year. Additionally, with inflation abating and the Federal Reserve slowing or pausing interest rate hikes, the likelihood that Truist will encounter similar stress is rapidly declining.
Truist Financial's CEO is Bill Rogers, appointed in Sep 2021, has a tenure of 2.92 years. total yearly compensation is $12.04M, comprised of 10% salary and 90% bonuses, including company stock and options. directly owns 0.085% of the company's shares, worth $49.94M.
Is Truist being sold? ›
Truist completes sale of Truist Insurance Holdings and executes strategic balance sheet repositioning - May 7, 2024.
Who owns the most shares of Truist? ›
Is Truist financially sound? ›
Truist's capitalization remains sound and the Company has strong levels of capital generation. Truist reported a CET1 ratio of 9.6% at June 30, 2023.
How financially stable is Truist bank? ›
Charlotte-based Truist Bank earned a “stable” rating from S&P in late August, as the rating agency evaluated the health of 10 U.S. banks. S&P said it reviewed these banks because it believes they have “potential risks in multiple areas.”
Why is Truist down so much? ›
So, if you're wondering why is Truist stock dropping? As a regional bank with exposure to borrowers who may increasingly struggle to pay back loans as interest rates rise, Truist is under pressure from shareholders. As credit quality concerns have surfaced, investors have offloaded shares of Truist.
Truist Review | U.S. News - USNews.comU.S. News & World Reporthttps://www.usnews.com ›
See deposit product details for accounts including CDs, checking, money market and savings accounts plus reviews, fee information and bank details for Truist.
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(DBRS Morningstar) confirmed the ratings of Truist Financial Corporation (Truist or the Company), including the Company's Long-Term Issuer Rating of AA (low). Additionally, DBRS Morningstar confirmed the ratings of its primary banking subsidiary, Truist Bank (the Bank). The trend for all ratings is Stable.
What is the financial rating of Truist Bank? ›
Truist Financial Corporation
| Rating | S&P | Moody's |
|---|
| Outlook / credit trend | Stable | Stable |
| Issuer | A- / A-2 | Baa1 |
| Senior unsecured | A- | Baa1 |
| Subordinated | BBB+ | Baa1 |
1 more rowAug 1, 2024
