Summary
Truist Financial Corporation (TFC), formerly BB&T Corporation, reported net income available to common shareholders of $1.936 billion for 2015, a slight decrease from $1.983 billion in 2014. This translated to diluted earnings per share of $2.56, down from $2.72 in the prior year. The company experienced a decline in return on average assets to 1.08% and return on average common equity to 8.34%. The increase in noninterest expense was primarily driven by merger-related and restructuring charges associated with acquisitions, notably Susquehanna Bancshares, Inc., and The Bank of Kentucky Financial Corporation. The bank's strategy continues to focus on organic growth and strategic acquisitions. Management highlighted intense competition within the financial services industry and the pressure from new technologies and evolving consumer preferences as key challenges. Despite these challenges, the company maintained a strong capital position, with its Tier 1 risk-based capital ratio at 11.8% and total risk-based capital ratio at 14.3% as of December 31, 2015. The company also paid a quarterly dividend of $0.27 per share, continuing its history of dividend payments since 1903.
Financial Highlights
38 data points| Interest Expense | $735.00M |
| Net Income | $2.12B |
| EPS (Basic) | $2.59 |
| EPS (Diluted) | $2.56 |
| Shares Outstanding (Basic) | 748.01M |
| Shares Outstanding (Diluted) | 757.76M |
Key Highlights
- 1Net income available to common shareholders decreased by 2.4% to $1.936 billion.
- 2Diluted earnings per share declined to $2.56 from $2.72 in the prior year.
- 3Return on average assets decreased to 1.08%, and return on average common equity decreased to 8.34%.
- 4Acquisitions, including Susquehanna Bancshares and The Bank of Kentucky, contributed to higher assets and deposits but also increased merger-related and restructuring charges.
- 5Net interest income increased by 4.0% to $5.7 billion, but the net interest margin (NIM) compressed to 3.32% from 3.42% due to lower loan and security yields.
- 6Noninterest income saw a record $4.0 billion, driven by insurance income, mortgage banking, and operating leases, although insurance income itself slightly declined.
- 7Total noninterest expense increased by 7.1% primarily due to higher personnel costs and merger-related charges.
- 8Asset quality improved, with nonperforming assets (NPAs) declining 9.0% and net charge-offs decreasing by 19.0%.