01—Abstract
Summary
Summary of the 10-K filed February 21, 2018. Cited figures are marked; the original filing is the authoritative source.
Truist Financial Corporation (TFC), formerly BB&T, reported its 2017 fiscal year results, showcasing a diversified business model with a significant presence in both traditional banking and insurance services.
The company's performance in 2017 demonstrated resilience, with a slight decrease in net income available to common shareholders compared to the prior year, attributed to factors including merger-related charges and expenses related to tax reform. Despite these headwinds, TFC achieved record noninterest income, driven by strong performance in its insurance segment and increased client activity across various fee-based services.
From an investor's perspective, TFC's strategic focus on both organic growth and acquisitions, coupled with a commitment to returning capital to shareholders through dividends and share repurchases, are key highlights. The company maintained robust capital ratios, exceeding regulatory requirements, and managed its loan portfolio effectively with a continued focus on asset quality.
02—Key points
Key Highlights
- Net income available to common shareholders was $2.22 billion, a slight decrease of 1.7% from 2016.
- Diluted EPS was $2.74, down from $2.77 in the prior year.
- Total revenue (on a TE basis) increased by 4.8% to $11.48 billion.
- Noninterest income reached a record $4.78 billion, an increase of 6.9%, driven by strong insurance income and other fee-based services.
- The company repurchased $1.6 billion of common stock and paid $1.0 billion in common stock dividends in 2017.
- Capital ratios remained strong, with CET1 at 10.2% and Tier 1 capital at 11.9% as of December 31, 2017, exceeding regulatory minimums.
- Nonaccrual loans and leases (NPAs) decreased by 22.8% to $627 million from $813 million at the end of 2016, indicating improved asset quality.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2017filed February 21, 2018Financial Statements
FY2017 against FY2016
| Line item | FY2017FY2016 | Change |
|---|---|---|
| Interest Expense | $839.00M$745.00M | +12.6% |
| Net Income | $2.42B$2.44B | −1.1% |
| EPS (Basic) | $2.78$2.81 | −1.1% |
| EPS (Diluted) | $2.74$2.77 | −1.1% |
| Shares Outstanding (Basic) | 799.22M804.68M | −0.7% |
| Shares Outstanding (Diluted) | 810.98M814.92M | −0.5% |
05—Questions
Frequently Asked Questions
What was Truist Financial Corporation's (TFC) net income and EPS for the fiscal year 2017?
For the fiscal year 2017, Truist Financial Corporation reported a net income available to common shareholders of $2.22 billion, which translated to a diluted EPS of $2.74. This represents a slight decrease from the $2.26 billion net income and $2.77 diluted EPS reported in 2016.
How did the company's noninterest income perform in 2017?
Truist Financial Corporation achieved record noninterest income of $4.78 billion in 2017, an increase of 6.9% compared to 2016. This growth was broad-based across most categories, with significant contributions from insurance income and other fee-based services, reflecting the company's diversified revenue streams.
What is the company's capital position as of December 31, 2017?
As of December 31, 2017, Truist Financial Corporation maintained strong capital ratios, exceeding regulatory requirements. Key ratios included a Common Equity Tier 1 (CET1) ratio of 10.2% and a Tier 1 capital ratio of 11.9%. The company also reported a total capital ratio of 13.9%.
Did Truist Financial Corporation return capital to shareholders in 2017?
Yes, Truist Financial Corporation returned capital to shareholders in 2017 through both dividends and share repurchases. The company paid $1.0 billion in common stock dividends and repurchased $1.6 billion of its common stock during the year.
06—Continue