Truist Financial Corp (TFC, Financial) released its Q3 2023 earnings report on October 19, 2023. The company reported GAAP earnings of $1.1 billion, or $0.80 per share. The net interest income was $3.62 billion, a slight decrease from the previous quarter's $3.68 billion. The total revenue was $5.73 billion, down from $5.97 billion in Q2 2023.
Financial Performance
The company's noninterest income was $2.11 billion, down from $2.29 billion in the previous quarter. The noninterest expense remained flat at $3.75 billion. The net income available to common shareholders was $1.07 billion, down from $1.23 billion in Q2 2023. The diluted earnings per common share were $0.80, down from $0.92 in the previous quarter.
Balance Sheet and Capital Ratios
Truist Financial Corp (TFC, Financial) reported average assets of $548 billion, down from $566 billion in Q2 2023. The average loans and leases were $320 billion, down from $328 billion in the previous quarter. The average deposits remained stable at $401 billion. The company's CET1 ratio increased by 29 basis points to 9.9% due to organic capital generation and RWA optimization.
CEO Commentary
“The transformative work we announced in the third quarter to improve our financial performance is well underway. We are driving swift and meaningful actions to simplify our organization and reduce expenses. Our continued focus on core clients, paring back non-core and lower-return portfolios, and paying down higher-cost borrowings has made our balance sheet more efficient and helped drive a modest improvement in our net interest margin. We’re strongly committed to improving our capital position, which increased 29 basis points in the third quarter. As we continue to diligently execute on this critical work to capitalize on our competitive advantages and drive efficiencies, we’re fundamentally changing how we operate to drive revenue growth, franchise value and increased benefit to our shareholders, now and into the future.”— Bill Rogers, Truist Chairman & CEO
Outlook
Truist Financial Corp (TFC, Financial) continues to focus on improving its financial performance, simplifying its organization, and reducing expenses. The company is committed to improving its capital position and driving efficiencies to increase shareholder value. The company's transformative work announced in the third quarter is well underway, and it is expected to drive revenue growth and franchise value in the future.
