Truist Financial Corporation has reported its third-quarter 2024 results, indicating a net income available to common shareholders of $1.3 billion, or $0.99 per share. This represents a significant improvement from the previous quarter, where net income available to common shareholders was $0.83 per share. Adjusted net income available to common shareholders also showed an increase from the previous quarter, rising from $1.24 billion to $1.31 billion.
The company's total revenue witnessed a substantial increase, rising to $5.14 billion in the third quarter, up from a negative $1.63 billion in the second quarter. Adjusted revenues were up 2.4%, primarily driven by higher net interest income and noninterest income. Net interest income increased by 2.2%, while noninterest income surged by 3.1% due to higher investment banking and trading income and other income.
Noninterest expense saw a notable decline, down 5.4% from the second quarter. Adjusted noninterest expense, which excludes certain items, was up 0.9%, reflecting higher professional fees and outside processing expense, partially offset by lower personnel expense.
The company also reported a strong performance in average balances, with total earning assets decreasing by 1.7% from the second quarter. The net interest margin improved by 10 basis points, reaching 3.12%.
In terms of asset quality, Truist Financial Corporation highlighted that nonperforming loans to total loans were up two basis points, driven by an increase in the commercial and industrial portfolio, partially offset by a decline in the CRE portfolio. Additionally, the net charge-off ratio decreased by three basis points, driven by lower net charge-offs in the CRE portfolio.
Furthermore, the company demonstrated strong capital levels, with a CET1 ratio of 11.6%. Truist also repurchased $500 million in common shares, resulting in a dividend and total payout ratio of 52% and 90%, respectively.
The CEO, Bill Rogers, emphasized the company's progress in driving revenue growth through core banking business and maintaining strong expense discipline. He also acknowledged the impact of natural disasters on the communities served by Truist, expressing commitment to supporting the rebuilding efforts.
Today the company's shares have moved -3.2% to a price of $43.12. If you want to know more, read the company's complete 8-K report here.