10-KPeriod: FY2024

TRUIST FINANCIAL CORP Annual Report, Year Ended Dec 31, 2024

Filed February 25, 2025For Securities:TFCTFC-POTFC-PRTFC-PI

Summary

Truist Financial Corporation (TFC) reported a net income of $4.5 billion, or $3.36 per share, for the fiscal year ended December 31, 2024. This marks a significant turnaround from a net loss of $1.5 billion in the prior year, largely driven by a $6.9 billion gain on the sale of its remaining stake in Truist Insurance Holdings, LLC (TIH) and strategic balance sheet repositioning. The company effectively managed its capital through a $1.0 billion share repurchase program and $2.8 billion in common stock dividends, returning a total of $3.8 billion to shareholders. Asset quality remained stable, with nonperforming loans at 0.47% of total loans held for investment. The bank also focused on strengthening its core operations, including investments in technology and risk infrastructure, while maintaining expense discipline. Despite a challenging deposit environment and higher funding costs, Truist saw an improvement in its Net Interest Margin (NIM) to 3.03%. The company's strategic initiatives, including the divestiture of non-core assets and a focus on core banking growth, position it for continued stability and potential growth.

Financial Highlights

37 data points
Beta

Net Income

$4.84B

EPS (Diluted)

$3.36

Total Assets

$531.18B

Cash & Equivalents

$39.77B

Free Cash Flow

$2.16B

Financial Statements
Beta
Operating Income-$45.00M
Net Income$4.84B
EPS (Basic)$3.36
EPS (Diluted)$3.36
Shares Outstanding (Basic)1.33B
Shares Outstanding (Diluted)1.33B

Key Highlights

  • 1Net income available to common shareholders was $4.5 billion in 2024, a significant improvement from a net loss of $1.5 billion in 2023.
  • 2The company completed the sale of its remaining stake in Truist Insurance Holdings, LLC (TIH) for $12.6 billion in cash, recognizing a pre-tax gain of $6.9 billion.
  • 3Truist returned $3.8 billion to shareholders in 2024 through $2.8 billion in common stock dividends and $1.0 billion in common share repurchases.
  • 4Net Interest Margin (NIM) improved to 3.03% in 2024, up from 2.98% in 2023, reflecting a smaller, more efficient balance sheet and higher reinvestment yields.
  • 5Total assets stood at $531.2 billion as of December 31, 2024, a slight decrease from the prior year, with nonperforming loans at 0.47% of loans held for investment.
  • 6Capital ratios remain strong, with CET1 ratio at 11.5% and Tier 1 capital ratio at 12.9% as of December 31, 2024.

Frequently Asked Questions

The primary driver of Truist's improved financial performance was the substantial gain recognized from the sale of its remaining stake in Truist Insurance Holdings, LLC (TIH), which contributed significantly to net income. Additionally, strategic balance sheet repositioning and effective capital management through dividends and share repurchases bolstered the company's financial results.

Truist returned $3.8 billion to shareholders in 2024 through $2.8 billion in common stock dividends and $1.0 billion in common share repurchases. The company also redeemed all outstanding shares of its perpetual preferred stock Series L for $750 million. These actions reflect a commitment to capital deployment while maintaining strong capital ratios.

Truist's NIM improved to 3.03% in 2024, up from 2.98% in 2023. This improvement was driven by a smaller, more efficient balance sheet following strategic repositioning and reinvestment into higher-yielding securities. Management's focus on core deposit growth and managing funding costs will be key to sustaining NIM going forward.

The sale of TIH generated significant cash proceeds, allowing Truist to reposition its investment securities portfolio by selling lower-yielding assets, which resulted in a substantial after-tax loss but enabled reinvestment into higher-yielding securities. This divestiture also increased the company's capital ratios, with the CET1 ratio rising to 11.5% and Tier 1 capital ratio to 12.9% as of December 31, 2024, enhancing its ability to support client growth and return capital to shareholders.