Summary
Truist Financial Corp. (TFC), formerly BB&T Corporation, reported solid financial results for the third quarter and the first nine months of 2017. Net income available to common shareholders was $597 million for the quarter, translating to diluted EPS of $0.74. For the nine-month period, net income was $1.748 billion. The company demonstrated improved net interest income, driven by higher interest income due to increased rates, with a net interest margin of 3.48% for the quarter. Asset quality showed continued improvement, with nonperforming assets decreasing and net charge-offs remaining stable year-over-year. Key operational highlights include growth in noninterest income, primarily from insurance and service charges on deposits, although mortgage banking income saw a decline. Noninterest expenses saw an increase primarily due to personnel and other expenses, partly offset by lower IT services costs. The company maintained strong capital ratios, exceeding regulatory minimums, and continued its share repurchase program. Management expressed confidence in the company's risk management framework and liquidity position, which remained robust.
Financial Highlights
37 data points| Interest Expense | $230.00M |
| Net Income | $648.00M |
| EPS (Basic) | $0.75 |
| EPS (Diluted) | $0.74 |
| Shares Outstanding (Basic) | 794.56M |
| Shares Outstanding (Diluted) | 806.12M |
Key Highlights
- 1Net income available to common shareholders was $597 million ($0.74 diluted EPS) for Q3 2017, and $1.748 billion for the nine months ended September 30, 2017.
- 2Net interest income increased year-over-year, driven by higher interest income from increased rates, with Net Interest Margin (NIM) at 3.48% for Q3 2017.
- 3Asset quality improved, with a decrease in nonperforming assets (NPAs) and stable net charge-offs as a percentage of average loans.
- 4Total revenues on a taxable-equivalent basis were $2.9 billion for Q3 2017.
- 5Noninterest income remained relatively flat for the quarter, with increases in insurance and service charges on deposits offset by a decline in mortgage banking income.
- 6Noninterest expense increased primarily due to higher personnel and other expenses, with a significant loss on early extinguishment of debt noted for the nine-month period.
- 7Capital ratios remained strong, with Common Equity Tier 1 (CET1) capital ratio at 10.1% as of September 30, 2017, well above regulatory requirements.