Summary
TRUIST FINANCIAL CORP (TFC), formerly BB&T Corporation, reported solid financial results for the second quarter of 2018. Net income available to common shareholders reached $775 million, or $0.99 per diluted share, a notable increase from the prior year's second quarter. This growth was supported by stable net interest income and noninterest income, coupled with effective expense management that saw noninterest expense decrease year-over-year, even excluding restructuring charges. The company maintained strong capital ratios and demonstrated a commitment to returning capital to shareholders through dividends and share repurchases. The provision for credit losses remained consistent, and net charge-offs saw a reduction, indicating stable asset quality. The company also benefited from a lower effective tax rate due to recent tax reform. Overall, TFC presented a financially healthy picture, with improvements in key profitability and efficiency metrics, demonstrating resilience in its core banking operations and insurance segments.
Financial Highlights
36 data points| Interest Expense | $337.00M |
| Net Income | $822.00M |
| EPS (Basic) | $1.00 |
| EPS (Diluted) | $0.99 |
| Shares Outstanding (Basic) | 775.84M |
| Shares Outstanding (Diluted) | 785.75M |
Key Highlights
- 1Net income available to common shareholders increased to $775 million ($0.99 per diluted share) for Q2 2018, up from $631 million ($0.77 per diluted share) in Q2 2017.
- 2Return on average assets improved to 1.49% (annualized) and return on average common shareholders' equity increased to 11.74% (annualized) in Q2 2018, compared to 1.22% and 9.30% respectively in Q2 2017.
- 3Total revenues on a taxable-equivalent (TE) basis were stable at $2.9 billion for Q2 2018, with flat net interest income and noninterest income.
- 4Noninterest expense decreased by $22 million to $1.7 billion in Q2 2018 compared to Q2 2017, reflecting effective expense control measures.
- 5The effective tax rate decreased significantly to 19.7% in Q2 2018 from 31.1% in Q2 2017, due to federal tax reform.
- 6Provision for credit losses remained stable at $135 million in Q2 2018, and net charge-offs decreased to $109 million from $132 million in Q2 2017.
- 7Total assets grew slightly to $222.7 billion as of June 30, 2018, from $221.6 billion as of December 31, 2017, while total deposits increased to $159.5 billion from $157.4 billion.