Truist Financial's (TFC, Financial) Q3 2024 earnings delivered a solid beat, with adjusted EPS hitting $0.97, well above the $0.91 analysts were expecting. Noninterest income surged thanks to strong investment banking and trading results, while net interest income came in just shy of forecasts. The net interest margin ticked up to 3.12%, improving over last quarter's 3.02%, signaling stronger yields on assets. Yet, despite the revenue lift, the bank saw a slight dip in deposits and loans, hinting at some underlying softness in its core lending activities.
Looking ahead to Q4, Truist is preparing for a 1.5% dip in adjusted revenue, right in line with market expectations, while forecasting a 4% uptick in adjusted expenses driven by higher tech investments and professional fees. Still, expense control remains a clear focus, as seen by the modest 0.9% rise in Q3 adjusted noninterest expenses. The bank also kept its capital position strong, maintaining an 11.6% CET1 ratio, supported by $500 million in share repurchases and a 52% dividend payout ratio.
CEO Bill Rogers emphasized that Truist is making meaningful strides in expanding its client base and deepening relationships, all while keeping a tight grip on costs. The bank's asset quality remains stable, with net charge-offs slightly down at 0.55%, and the strong revenue growth underscores its ability to navigate a challenging rate environment. Truist's investments in tech and infrastructure are setting the stage for long-term growth, even as it tackles near-term pressures.
