Truist reported its second-quarter 2024 results, with net income available to common shareholders at $826 million, or $0.62 per share, compared to $1.2 billion, or $0.91 per share on an adjusted basis. The CET1 ratio was 11.6%, significantly strengthened by the sale of TIH.
In terms of key financial data, net interest income increased by 4.5% to $3.58 billion, and noninterest income was down $5.21 billion. Adjusted revenues were up 3.0%, driven by higher net interest income. Noninterest expense was up 4.8%, with adjusted noninterest expense increasing by 2.6%.
Average loans and leases HFI decreased by 0.7%, primarily due to declines in the commercial and industrial, residential mortgage, and indirect auto portfolios. Average deposits also decreased by 0.3%, driven by declines in non-interest-bearing and time deposits.
In terms of asset quality, nonperforming assets were stable, loans 90 days or more past due were down two basis points, and the ALLL ratio increased by one basis point. The net charge-off ratio decreased by six basis points.
Truist's capital levels significantly strengthened from the sale of TIH, with the announcement of up to $5 billion in share repurchase authorization through 2026. The CET1 ratio was 11.6%, and liquidity levels remained strong with a consolidated LCR of 110%.
The CEO, Bill Rogers, expressed confidence in the capabilities of Truist's talented teammates to take the company to the next level, leveraging the strengthened capital position to grow the core banking franchise and prudently return capital to shareholders.
In terms of net interest income, for the quarter ended, taxable-equivalent net interest income was up $155 million, or 4.5%, compared to the first quarter of 2024. The net interest margin was 3.03%, up 14 basis points. Average earning assets decreased by $2.4 billion, primarily due to declines in average securities and total loans.
Noninterest income was down $6.7 billion compared to the first quarter of 2024, primarily due to $6.7 billion of securities losses. Excluding securities losses, noninterest income was flat compared to the first quarter of 2024.
Noninterest expense was up $141 million, or 4.8%, compared to the first quarter of 2024. The higher effective tax rate in the current quarter compared to the first quarter of 2024 and second quarter of 2023 is due to a tax benefit on the pre-tax loss, driven by the discrete impact of the balance sheet repositioning of securities.
Average loans held for investment decreased by $2.3 billion, or 0.7%, compared to the prior quarter, and average deposits decreased by 0.3%.
Following these announcements, the company's shares moved -0.1%, and are now trading at a price of $42.41. For more information, read the company's full 8-K submission here.
