10-KPeriod: FY2012

TRUIST FINANCIAL CORP Annual Report, Year Ended Dec 31, 2012

Filed March 1, 2013For Securities:TFCTFC-POTFC-PRTFC-PI

Summary

Truist Financial Corporation (TFC), operating as BB&T Corporation at the time of this filing, reported a strong financial performance for the year ended December 31, 2012. The company achieved a record net income available to common shareholders of $1.9 billion, a significant increase of 48.6% from the previous year, driven by robust loan growth and substantial increases in non-interest income, particularly from insurance, mortgage banking, and investment banking activities. Credit quality showed continued improvement, with non-performing assets decreasing significantly. BB&T also successfully integrated two acquisitions in 2012: Crump Insurance, bolstering its insurance services segment, and BankAtlantic, enhancing its Southeast Florida presence. The company's strategic focus on diversifying revenue streams and managing expenses effectively contributed to its positive results amidst a dynamic economic environment. BB&T's capital position remained strong, well above regulatory requirements, and the company saw an increase in its quarterly dividend. However, the report also highlighted ongoing challenges, including intense competition within the financial services industry, the cost and risks associated with evolving regulatory initiatives, and the impact of U.S. fiscal policy uncertainties.

Financial Highlights

40 data points
Beta

Net Income

$1.92B

EPS (Diluted)

$2.70

Total Assets

$184.50B

Cash & Equivalents

$3.04B

Free Cash Flow

$3.57B

Financial Statements
Beta
Interest Expense$1.06B
Net Income$1.92B
EPS (Basic)$2.74
EPS (Diluted)$2.70
Shares Outstanding (Basic)698.74M
Shares Outstanding (Diluted)708.88M

Key Highlights

  • 1Record net income available to common shareholders of $1.9 billion, up 48.6% year-over-year.
  • 2Strong growth in non-interest income driven by insurance, mortgage banking, and investment banking.
  • 3Continued improvement in credit quality, with non-performing assets at their lowest level since mid-2008.
  • 4Successful integration of Crump Insurance and BankAtlantic acquisitions.
  • 5Increased quarterly dividend by 25% in 2012, reflecting strong capital position and stress test results.
  • 6Total assets grew to $183.9 billion, with a 6.6% increase in total loans and leases.
  • 7Deposit mix improved with a 26.4% increase in non-interest-bearing deposits.

Frequently Asked Questions

BB&T reported a record net income available to common shareholders of $1.9 billion for the year ended December 31, 2012, which represents a significant increase of 48.6% compared to the $1.3 billion earned in 2011. This strong profitability was reflected in its return on average assets of 1.14% and return on average common shareholders' equity of 10.35%.

Revenue growth was primarily driven by a substantial increase in non-interest income, which rose by 22.7% year-over-year. This was largely due to record revenues from insurance, mortgage banking, and investment banking and brokerage activities. Net interest income also saw a modest increase of 6.2% due to loan growth and improved deposit mix, despite lower yields on new loans.

The report indicates that federal agencies continued the implementation of the Dodd-Frank Act throughout 2012. BB&T, being a systemically important institution, is subject to additional regulations such as 'living will' requirements and capital planning and stress test submissions to the FRB. While the full impact is still being evaluated due to ongoing rulemaking, the company noted that compliance with Dodd-Frank and Basel III standards could result in higher costs and potentially affect capital requirements and dividend payouts.

BB&T demonstrated continued improvement in credit quality during 2012. Non-performing assets (NPAs), excluding covered foreclosed property, decreased by 37.3%, reaching their lowest level since June 30, 2008. Net charge-offs also decreased by 21.0% compared to the prior year, reflecting the company's proactive approach to managing its loan portfolio and improving economic conditions.