10-QPeriod: Q3 FY2021

TRUIST FINANCIAL CORP Quarterly Report for Q3 Ended Sep 30, 2021

Filed November 2, 2021For Securities:TFCTFC-POTFC-PRTFC-PI

Summary

Truist Financial Corporation reported a strong third quarter of 2021, with net income available to common shareholders increasing by 51% year-over-year to $1.6 billion, translating to diluted earnings per share of $1.20. This performance was driven by robust noninterest income, particularly from wealth management, insurance brokerage, and investment banking, bolstered by improving economic conditions. The company successfully migrated approximately 7 million clients to its new technology ecosystem, a significant integration milestone. Provision for credit losses was a benefit of $324 million, reflecting a reserve release due to a more favorable economic outlook and strong credit performance, with nonperforming assets remaining low at 0.23% of total assets. Total assets grew to $529.9 billion, largely due to increased investment securities driven by substantial deposit growth. While total loans and leases saw a slight decrease, asset quality remained excellent. Truist maintained a strong capital position, with a CET1 ratio of 10.1%, and continued its capital deployment strategy, including share repurchases and preferred stock redemptions, while also announcing the planned acquisition of Service Finance, LLC. The company reaffirmed its commitment to achieving $1.6 billion in net cost savings by the end of 2022.

Financial Highlights

39 data points
Beta

Net Income

$1.70B

EPS (Diluted)

$1.20

Total Assets

$529.88B

Cash & Equivalents

$19.83B

Free Cash Flow

-$357.00M

Financial Statements
Beta
Interest Expense$193.00M
Net Income$1.70B
EPS (Basic)$1.21
EPS (Diluted)$1.20
Shares Outstanding (Basic)1.33B
Shares Outstanding (Diluted)1.35B

Key Highlights

  • 1Net income available to common shareholders increased 51% year-over-year to $1.6 billion, or $1.20 per diluted share.
  • 2Total assets grew to $529.9 billion, driven by a $30.3 billion increase in investment securities.
  • 3Strong noninterest income growth, up 7.0% year-over-year (excluding securities gains), fueled by insurance, investment banking, and wealth management.
  • 4Provision for credit losses was a benefit of $324 million, reflecting reserve releases due to improved economic outlook.
  • 5Nonperforming assets remained low at 0.23% of total assets, indicating strong asset quality.
  • 6Completed the significant migration of approximately 7 million clients to the new Truist technology ecosystem.
  • 7Maintained a robust capital position with a CET1 ratio of 10.1% and a common dividend increase of 7% for the quarter.

Frequently Asked Questions

Truist's net income growth in Q3 2021 was primarily driven by strong noninterest income, particularly from its wealth management, insurance brokerage, and investment banking businesses. Improving economic conditions also contributed to a benefit from the provision for credit losses and strong credit performance.

Total assets increased to $529.9 billion, mainly due to a significant increase in investment securities ($30.3 billion) funded by strong deposit growth. Total loans and leases saw a slight decrease of $15.1 billion.

A major milestone was achieved with the successful migration of approximately 7 million clients to the new Truist technology ecosystem. Other key integration efforts completed include wealth brokerage and trust transitions, and the mortgage systems transition.

Truist maintained a strong capital position with a CET1 ratio of 10.1%. The company increased its common dividend by 7% to $0.48 per share. It also repurchased $1.1 billion of common stock and redeemed $1.4 billion of preferred stock during the first nine months of the year, while planning for future capital deployment through share repurchases or acquisitions.