Key Takeaways
- Truist Financial reported net income of $826 million, down from $1.23 billion in the year-ago quarter.
- The firm’s earnings per share (EPS) of $0.62 easily missed analysts’ expectations of $1.10, but adjusted EPS of $0.91 topped estimates of $0.85.
- Net interest income declined 2% year-over-year to $3.58 billion.
Truist Financial (TFC) on Monday posted second-quarter profit that fell by a third from last year, but its stock rose as adjusted earnings per share (EPS) beat analysts’ expectations.
The financial services firm reported net income of $826 million, down from $1.23 billion a year earlier. EPS came in at $0.62, significantly below the $1.10 consensus of analysts compiled by Visible Alpha, and net interest income slid 2% year-over-year to $3.58 billion.
The net income drop is partially attributable to the sale of a securities portfolio that resulted in $5.1 billion in after-tax losses, along with an after-tax donation of $115 million to the Truist Foundation.
Adjusted EPS Beats Forecasts
However, adjusted EPS came in at $0.91, topping analysts’ expectation of $0.85.
“In the second quarter, we continued to see solid momentum in our core banking businesses as evidenced by strong year-over-year growth in investment banking and trading revenue and continued expense discipline,” Chief Executive Officer (CEO) Bill Rogers said.
“While loan demand does remain muted, we are encouraged by an improvement in our dialogue with clients and our expanded capacity to support their needs,” he added.
Shares of Truist climbed about 3% to $43.64 as of 12:41 p.m. ET Monday. They are up 18% in 2024.