Summary
Truist Financial Corporation (TFC) reported solid financial results for the second quarter of 2021, showcasing significant progress on merger integration and a strong commitment to client and community support. Net income available to common shareholders rose 73% year-over-year to $1.6 billion, translating to diluted earnings per share of $1.16, up from $0.67 in the prior year period. The company saw robust deposit growth, leading to an increase in total assets to $522.0 billion. Despite a decrease in net interest income due to lower purchase accounting accretion and interest rates, Truist's net interest margin remained stable, supported by effective management of funding costs and growth in noninterest-bearing deposits. Noninterest income showed strength, driven by record revenues in insurance, wealth management, card and payment fees, and commercial real estate, with investment banking also performing well. The provision for credit losses was a benefit of $434 million, reflecting an improving economic outlook and lower loan balances, and the net charge-off ratio reached a post-financial crisis low. The company maintained strong capital and liquidity ratios, with a CET1 ratio of 10.2% and an average LCR of 113%, demonstrating its resilience and capacity for future capital deployment, including planned share repurchases and strategic acquisitions.
Financial Highlights
39 data points| Interest Expense | $198.00M |
| Net Income | $1.66B |
| EPS (Basic) | $1.16 |
| EPS (Diluted) | $1.16 |
| Shares Outstanding (Basic) | 1.34B |
| Shares Outstanding (Diluted) | 1.35B |
Key Highlights
- 1Net income available to common shareholders increased 73% year-over-year to $1.6 billion, with diluted EPS reaching $1.16.
- 2Total assets grew to $522.0 billion, supported by strong deposit growth of 4.5% ($17.2 billion increase).
- 3Provision for credit losses was a benefit of $434 million, indicating improving economic conditions and lower loan balances, with net charge-offs at a post-financial crisis low of 0.20%.
- 4Noninterest income demonstrated strength, with record revenues in insurance, wealth management, card and payment fees, and commercial real estate, and strong investment banking performance.
- 5The company maintained robust capital and liquidity, with a CET1 ratio of 10.2% and an average LCR of 113%, exceeding regulatory minimums.
- 6Truist continues to progress on its merger integration, targeting $1.6 billion in net cost saves and completing key system transitions.
- 7The company announced plans to deploy approximately $4 billion to $5 billion of capital over the next five quarters, primarily through share repurchases and acquisitions, while maintaining a target CET1 ratio of 9.75%.