Truist Financial reported second-quarter net income available to common shareholders of $1.5 billion and diluted earnings per share of $1.23, up 37% year on year, comfortably beating the $1.08 analyst consensus, the Charlotte-based regional lender said in its earnings release on Friday.
Total revenue rose 5.6% year on year to $5.27 billion, from $4.99 billion, according to the press release published on the group's investor relations site. On a taxable-equivalent basis, revenue rose 5.5% year on year, driven by higher investment banking and trading and wealth management income, the bank said.
EARNINGS OUTPACE REVENUE GROWTH
Noninterest expense rose 2.3% year on year, well below the 5.6% growth in revenue, while net income available to common shareholders rose to $1.52 billion from $1.18 billion. Chairman and chief executive Bill Rogers said the EPS increase was "driven by disciplined execution against our strategic priorities, higher fee income, strong credit performance, and the return of capital to shareholders".
FEE INCOME DRIVES REVENUE
Noninterest income rose 17.4% year on year to $1.64 billion, led by a 71.7% increase in investment banking and trading income, while taxable-equivalent net interest income rose 0.9%.
Return on tangible common equity rose to 15.4% from 12.3% a year earlier, and the net charge-off ratio was 0.50%.
Truist returned $1.8 billion to shareholders in the quarter through dividends and share repurchases, including $1.2 billion of buybacks. Rogers also noted that Truist had announced during the quarter that Mike Lyons will become its next chief executive in September.
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