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TRUIST FINANCIAL CORP 8-K Report, Financial Results (Jan 17, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed January 17, 2025
Period End
January 17, 2025
In the record · 2016–202610-K1110-Q338-K196

TFC filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 196 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Apr ’16Apr ’16
  2. Deal closed8-K · Dec ’19Dec ’19
  3. Leadership change8-K · Sep ’22Sep ’22
  4. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed January 17, 2025. Cited figures are marked; the original filing is the authoritative source.

Truist Financial reported fourth quarter 2024 results on January 17, 2025, with GAAP net income available to common shareholders of $1.2 billiona, or $0.91 per diluted share, versus a $5.2 billion loss in 4Q23 that was driven by a $6.1 billion goodwill impairment.

For full-year 2024, GAAP net income available to common shareholders was $4.5 billionb ($3.36 per diluted share), while adjusted net income was $5.0 billion ($3.69 adjusted diluted EPS), up 2.8% on an adjusted basis. The GAAP full-year figure is inflated by a $4.8 billion after-tax gain on the sale of Truist Insurance Holdings, offset by a $6.7 billion pre-tax securities loss from the 2Q24 balance sheet repositioning. Investors should therefore focus on the adjusted figures when evaluating underlying performance.

On an operating basis, the quarter was steady rather than strong. Taxable-equivalent revenue fell 0.6%c year over year on a sequential basis, driven by lower investment banking and trading income, while net interest margin declined five basis points to 3.07%. Adjusted noninterest expense rose 4.0% sequentially, reflecting higher technology and risk infrastructure spending.

Average deposits grew 1.5% and the average cost of total deposits fell 19 basis points to 1.89%, a constructive sign for funding costs. Credit quality was broadly stable, though the net charge-off ratio rose to 0.59% from 0.55% and the provision for credit losses was $471 milliond.

Capital remained solid, with the CET1 ratio at a preliminary 11.5%, and Truist returned $3.8 billion to common shareholders in 2024 through dividends and buybacks. Management guided to 2025 adjusted revenue growth of 3.0% to 3.5%, adjusted expense growth of about 1.5%, and a net charge-off ratio near 60 basis points, positioning positive operating leverage as the central 2025 theme.

02—Key points

Key Highlights

  1. GAAP 4Q24 net income available to common shareholders of $1.2 billion ($0.91 diluted EPS) versus a $5.2 billion loss in 4Q23 that included a $6.1 billion goodwill impairment.
  2. Full-year 2024 GAAP diluted EPS of $3.36 includes a $4.8 billion after-tax gain on the TIH sale and a $6.7 billion pre-tax securities loss; adjusted diluted EPS was $3.69, up 2.8% year over year.
  3. Average deposits rose $5.7 billion (1.5%) sequentially to $390.0 billion, and the average total deposit cost fell 19 basis points to 1.89%.
  4. Net interest margin declined to 3.07% (down 5 bps sequentially) but rose 12 bps year over year; taxable-equivalent NII was down 0.4% sequentially.
  5. Adjusted noninterest expense rose 4.0% sequentially, driven by professional fees, outside processing, and equipment spending tied to technology and risk infrastructure investments.
  6. Net charge-off ratio rose to 0.59% from 0.55%, led by commercial and industrial and indirect auto; the ALLL ratio held at 1.59% and nonperforming loans improved slightly to 0.47%.
  7. CET1 ratio of 11.5% (preliminary); $500 million repurchased in 4Q24 and $3.8 billion returned to shareholders in 2024; 2025 guidance calls for adjusted revenue growth of 3.0% to 3.5% and expense growth of about 1.5%.

03—Questions

Frequently Asked Questions

  1. Why is GAAP full-year 2024 EPS so different from the adjusted figure?

    GAAP full-year diluted EPS of $3.36 includes a $4.8 billion after-tax gain from the May 2024 sale of Truist Insurance Holdings, which was largely offset by a $6.7 billion pre-tax securities loss from the 2Q24 balance sheet repositioning and a $150 million charitable contribution. Adjusted diluted EPS of $3.69 removes these one-time items and better reflects the ongoing earnings power of the bank.

  2. How did Truist's core revenue and profitability trend in the fourth quarter?

    Revenue was broadly flat to slightly down. Adjusted revenue was $5.1 billion, down about 0.5% sequentially and up 3.5% year over year. Adjusted PPNR was $2.16 billion, down 6.2% sequentially, as higher expenses outpaced revenue. The adjusted efficiency ratio deteriorated to 57.7% from 55.2% in the prior quarter.

  3. What is the outlook for 2025 and what should investors watch?

    Management guided to 2025 adjusted revenue growth of 3.0% to 3.5%, adjusted expense growth of about 1.5%, a net charge-off ratio near 60 basis points, and a 17% effective tax rate. Investors should watch whether NII growth from fixed-rate asset repricing and swap positions materializes, whether expense discipline holds amid technology investment, and whether credit costs in commercial and industrial and indirect auto stabilize.

  4. Is Truist's capital position strong enough to support shareholder returns?

    Yes, based on the disclosed figures. The CET1 ratio was 11.5%, with preliminary ratios above regulatory well-capitalized thresholds. The company returned $3.8 billion to common shareholders in 2024 and maintained a 57% dividend payout ratio and 98% total payout ratio for the fourth quarter. Management also cited future earnings and AOCI accretion as sources of capital capacity.

04—Continue

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