TRUIST FINANCIAL CORP Quarterly Report for Q2 Ended Jun 30, 2019

Summary

Truist Financial Corporation (TFC), formerly BB&T Corporation, reported solid financial results for the second quarter and first half of 2019. The company saw growth in net interest income and noninterest income, driven by factors such as loan growth, increased insurance income (partially due to acquisitions), and strong investment banking and brokerage fees. Net income available to common shareholders increased year-over-year, reflecting improved profitability. The most significant event impacting the company is the pending merger of equals with SunTrust Banks, Inc., which received regulatory approval during the quarter and shareholder approval in July 2019. The combined entity will operate under the name Truist Financial Corporation. While the merger progresses, BB&T has suspended its share repurchase program. The company also announced a proposal to increase its quarterly common dividend, signaling confidence in its financial health and future prospects.

Key Highlights

• 1Net income available to common shareholders increased to $842 million for Q2 2019, up from $775 million in Q2 2018.
• 2Diluted EPS was $1.09 for Q2 2019, an increase from $0.99 in Q2 2018.
• 3Total revenues (Tax-Equivalent basis) for Q2 2019 were $3.1 billion, up $165 million year-over-year.
• 4Noninterest income rose by $130 million in Q2 2019, largely driven by a $85 million increase in insurance income and strong performance in investment banking and brokerage fees.
• 5The company received regulatory approval for the merger with SunTrust Banks, Inc. in July 2019, with shareholder approval also obtained in July 2019.
• 6BB&T proposed an 11.1% increase in its quarterly common dividend to $0.45 per share.
• 7The provision for credit losses increased to $172 million in Q2 2019, up from $135 million in Q2 2018, reflecting an increase in net charge-offs.

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