Early Access

10-QPeriod: Q2 FY2017

TRUIST FINANCIAL CORP Quarterly Report for Q2 Ended Jun 30, 2017

Filed July 28, 2017For Securities:TFCTFC-POTFC-PRTFC-PI

Summary

Truist Financial Corp. (TFC), formerly BB&T Corporation, reported solid financial results for the second quarter and first half of 2017. Net income available to common shareholders increased year-over-year to $631 million for the quarter and $1,100 million for the first half. Diluted EPS was $0.77 for the quarter and $1.23 for the first half. The company demonstrated improved profitability with an annualized return on average common shareholders' equity of 9.30% in Q2 2017. Total revenues increased driven by a $90 million rise in noninterest income, supported by higher insurance income and bankcard fees. Net interest margin also saw a modest improvement to 3.47% in Q2 2017, benefiting from higher earning asset yields and a more favorable funding cost structure. Asset quality showed improvement with a decline in nonperforming assets and net charge-offs compared to the prior quarter, although net charge-offs increased year-over-year. The company also announced significant capital actions, including a dividend increase and an accelerated share repurchase agreement, signaling confidence in future performance.

Financial Highlights

37 data points
Beta

Net Income

$674.00M

EPS (Diluted)

$0.77

Total Assets

$221.19B

Cash & Equivalents

$3.43B

Free Cash Flow

$1.33B

Financial Statements
Beta
Interest Expense$189.00M
Net Income$674.00M
EPS (Basic)$0.78
EPS (Diluted)$0.77
Shares Outstanding (Basic)808.98M
Shares Outstanding (Diluted)819.39M

Key Highlights

  • 1Net income available to common shareholders increased to $631 million in Q2 2017 ($1,100 million year-to-date), up from $541 million in Q2 2016.
  • 2Diluted EPS was $0.77 in Q2 2017, an increase of $0.11 from $0.66 in Q2 2016.
  • 3Net interest margin improved to 3.47% in Q2 2017 from 3.41% in Q2 2016, driven by higher asset yields and lower funding costs.
  • 4Noninterest income increased by $90 million year-over-year in Q2 2017, primarily due to higher insurance income and bankcard fees.
  • 5Nonperforming assets (NPAs) decreased to $690 million at June 30, 2017, from $813 million at December 31, 2016.
  • 6The company announced capital actions including a quarterly dividend increase to $0.33 and an accelerated share repurchase agreement for $920 million.
  • 7Total assets grew slightly to $221.2 billion as of June 30, 2017, from $219.3 billion at December 31, 2016.

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