01—Abstract
Summary
Summary of the 10-K filed February 23, 2022. Cited figures are marked; the original filing is the authoritative source.
Truist Financial Corporation (TFC) reported solid financial performance in 2021, marked by a 44% increase in net income available to common shareholders, reaching $6.0 billiona ($4.47 per diluted share).
This growth was driven by strong contributions from investment banking, insurance, wealth management, and card/payment fees, benefiting from improving economic conditions which also led to a favorable credit performance and a provision for credit losses release. The company continued its integration efforts post-merger, achieving key milestones such as core bank conversions and the launch of a new digital app. Truist is focused on shifting from integration to operation, emphasizing executional excellence and profitable growth.
Key strategic priorities include advancing its "T3 strategy" (touch and technology), driving innovation, attracting and retaining talent, and executing on ESG initiatives. The company's capital position remains strong, with a CET1 ratio of 9.6%b at year-end 2021, and management reiterated its commitment to capital deployment through organic growth, dividends, and strategic acquisitions.
02—Key points
Key Highlights
- Net income available to common shareholders increased by 44% to $6.0 billion in 2021, with diluted EPS rising to $4.47 from $3.08 in 2020.
- Total revenue for 2021 was $22.3 billion, a slight decrease of $0.4 billion compared to 2020, primarily due to lower net interest income.
- Noninterest income increased by 4.6% to $9.3 billion, driven by strong performance in insurance, investment banking, wealth management, and card/payment fees, partially offset by lower residential mortgage income.
- The provision for credit losses turned into a benefit of $813 million in 2021, compared to a provision of $2.3 billion in 2020, reflecting an improving economic outlook.
- The company completed significant merger integration milestones, including core bank conversions, and is focused on transitioning to an operational phase emphasizing profitable growth.
- Truist met its diversity goal early, with racially and ethnically diverse teammates holding 15.1% of senior leadership positions as of December 31, 2021.
- Capital levels remained strong, with a CET1 ratio of 9.6% and a total capital ratio of 13.2% at December 31, 2021.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 23, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Operating Income | $5.97B— | — |
| Interest Expense | $768.00M$1.72B | −55.4% |
| Net Income | $6.44B$4.49B | +43.3% |
| EPS (Basic) | $4.51$3.11 | +45.0% |
| EPS (Diluted) | $4.47$3.08 | +45.1% |
| Shares Outstanding (Basic) | 1.34B1.35B | −0.7% |
| Shares Outstanding (Diluted) | 1.35B1.36B | −0.7% |
05—Questions
Frequently Asked Questions
What was Truist's overall financial performance in 2021?
Truist Financial Corporation reported a solid financial performance in 2021, with net income available to common shareholders increasing by 44% to $6.0 billion, or $4.47 per diluted share. This was driven by strong fee income from various business lines and a release of credit loss provisions due to improving economic conditions.
What are the key drivers of Truist's revenue growth in 2021?
Truist's revenue for 2021 was $22.3 billion. Noninterest income showed strength, increasing by 4.6% to $9.3 billion, primarily due to robust performance in insurance, investment banking, wealth management, and card and payment-related fees. These gains were partially offset by a decrease in residential mortgage income.
How is Truist managing its integration following the merger of BB&T and SunTrust?
Truist made significant progress on integration in 2021, completing core bank conversions and launching a new digital app. The company is focused on shifting from integration to an operational phase, emphasizing executional excellence and profitable growth. Key strategic priorities include advancing its 'T3 strategy' (touch and technology) and realizing merger synergies.
What is Truist's capital position and outlook?
Truist maintained a strong capital position throughout 2021, with a CET1 ratio of 9.6% and a total capital ratio of 13.2% as of December 31, 2021. Management is focused on capital deployment through organic growth, dividends, and strategic acquisitions, and reaffirmed its commitment to achieving $1.6 billion in net cost saves by the fourth quarter of 2022.
06—Continue