Truist Financial Corporation: Lower Net Interest Income Amidst Higher Deposit Costs and Economic Uncertainty - Q1 2024 Earnings Report

Charlotte, North Carolina United States of America
CFO Mike Maguire mentioned non-interest income was up by 6.1% due to higher investment banking and trading-related activity.
Digital transactions increased by $107 million YoY with mobile app users up by 8%, totaling 4.9 million.
Net Charge-off ratio was 0.6% compared to 0.4% a year ago.
Non-performing loans remained relatively stable with a net charge-off ratio of 0.6%.
Revenue is projected to decline by 4% to 5% year on year.
Truist Financial Corporation reported lower net interest income of $3.43 billion in Q1 2024 due to elevated interest rates and increased deposit costs.
Truist Financial Corporation: Lower Net Interest Income Amidst Higher Deposit Costs and Economic Uncertainty - Q1 2024 Earnings Report

Truist Financial Corporation, headquartered in Charlotte, North Carolina, reported its first-quarter 2024 earnings on April 22. The bank's net interest income (NII) came in lower than anticipated due to elevated interest rates and increased deposit costs.

According to the reports from various sources,

Truist Financial Corp. reported net interest income on a taxable-equivalent basis of $3.43 billion for the first quarter, down from the prior quarter's level.

The Zacks Consensus Estimate for TFC's average earning assets was pegged at $476.7 billion, suggesting a 4.5% fall from the prior-year quarter.

Truist is expected to have set aside a substantial amount of money for potential bad loans due to economic slowdown expectations.

Net Charge-off ratio was 0.6%, overall, in the most recent quarter compared to 0.4% a year ago.

Revenue is projected to decline 4% to 5% year on year, as per Truist's earnings materials.

Income from digital transactions increased by $107 million YoY, with mobile app users up by 8%, totaling 4.9 million.

Digital transactions were up by 13% to reach a total of 76 million, and deposits in self-service channels accounted for 77% of the total deposits.

Truist CEO Bill Rogers mentioned that loan demand remained relatively muted but saw some improvement in commercial lending pipelines during the quarter.

Average deposits declined by 1.2% vs. Q4 2023, reflecting continued consumer response to higher rates.

Non-performing loans remained relatively stable, with a net charge-off ratio of 0.6%, compared to 0.4% a year ago.

CFO Mike Maguire stated that the company's earnings materials detailed that non-interest income was up by 6.1% due to higher investment banking and trading-related activity during the most recent quarter.

Despite these positive developments, Truist Financial Corp.'s stock price experienced a slight increase of less than 1% at the start of trading on April 22.


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Confidence

85%

Doubts
  • The article mentions a 'substantial amount of money' set aside for potential bad loans, but no specific figure is given.
  • The article states that loan demand remained relatively muted but saw some improvement in commercial lending pipelines during the quarter. No specific figures are given to support this claim.

Sources

91%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Truist’s Loan Income Misses Estimates as Deposit Costs Weigh

Yahoo Finance Bre Bradham Monday, 22 April 2024 17:08
  • Unique Points
    • Truist Financial Corp. posted lower first-quarter lending profits than analysts expected due to elevated interest rates and increased deposit costs.
  • Accuracy
    • The Charlotte, North Carolina-based lender reported net interest income on a taxable-equivalent basis of $3.43 billion, down from the prior quarter’s level and missing analysts’ average estimate of $3.47 billion.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article contains an appeal to authority when it mentions the Federal Reserve holding off on interest-rate cuts and inflation remaining above the level policymakers are targeting. However, no fallacies were found that significantly impacted the overall quality of the article.
    • The Federal Reserve holding off on interest-rate cuts as inflation remains above the level policymakers are targeting.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

96%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Truist Financial’s Digital Transactions Leap 13%

PYMNTS.com Unknown PYMNTS Monday, 22 April 2024 14:57
  • Unique Points
    • Net Charge-off ratio was 0.6%, overall, in the most recent quarter compared to 0.4% a year ago.
    • Revenue is projected to decline 4% to 5% year on year.
    • Income from those operations was $323 million in the March period, up from $216 million in the year- ago first quarter.
  • Accuracy
    • 77% of deposits occurred in self-service channels.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

96%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Truist’s Lending Income Misses Estimates as Revenue Forecast Cut

Bloomberg News Now Bre Bradham Monday, 22 April 2024 17:10
  • Unique Points
    • Truist Financial Corp. reported net interest income on a taxable-equivalent basis of $3.43 billion for the first quarter.
    • Interest rates remained elevated, forcing Truist to pay more to customers for deposits.
  • Accuracy
    • The Charlotte, North Carolina-based lender reported net interest income on a taxable-equivalent basis of $3.43 billion, down from the prior quarter’s level and missing analysts’ average estimate of $3.47 billion.
    • The Zacks Consensus Estimate for TFC’s investment banking and trading income of $209.6 million indicates a 19.7% decline.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

82%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Analysts Estimate Ball (BALL) to Report a Decline in Earnings: What to Look Out for

Zacks Investment Research Zacks Equity Monday, 22 April 2024 17:10
  • Unique Points
    • Ball is expected to report earnings of $0.56 per share for the quarter ended March 2024, a decrease of 18.8% from the previous year.
    • Revenues for the quarter are anticipated to be $3.26 billion, a decline of 6.4% compared to the same period last year.
    • Analysts have revised their earnings estimate for Ball downward by 3.51% over the past month.
    • The company's Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.60%.
    • Ball has beaten consensus EPS estimates in the last four quarters.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (30%)
    The article contains selective reporting as it only mentions the negative earnings estimate revisions and ignores any positive revisions. It also uses emotional manipulation by implying that a miss on earnings estimates could lead to a significant stock price drop.
    • An earnings beat or miss may not be the sole basis for a stock moving higher or lower.
    • The consensus EPS estimate for the quarter has been revised 3.51% lower over the last 30 days to the current level.
    • This metal packaging company is expected to post quarterly earnings of $0.56 per share in its upcoming report, which represents a year-over-year change of -18.8%.
  • Fallacies (85%)
    The article contains an appeal to authority in the form of Zacks Consensus Estimate and Zacks Rank being used as indicators of a company's earnings prospects and potential for beating estimates. The author also uses dichotomous depiction by stating that 'An earnings beat or miss may not be the sole basis for a stock moving higher or lower.' but then goes on to suggest that betting on stocks expected to beat earnings expectations increases the odds of success.
    • ]The Zacks Consensus Estimate and Zacks Rank are powerful tools in predicting a company's earnings picture[
    • ']An earnings beat or miss may not be the sole basis for a stock moving higher or lower.[', 'But']
    • ']Betting on stocks that are expected to beat earnings expectations does increase the odds of success.[
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Lower NII & Fee Income to Hurt Truist's (TFC) Q1 Earnings

Yahoo Finance Zacks Equity Monday, 22 April 2024 17:13
  • Unique Points
    • Truist Financial TFC is scheduled to announce first-quarter 2024 results on Apr 22, before the opening bell.
    • The Zacks Consensus Estimate for TFC’s average earning assets is pegged at $476.7 billion, suggesting a 4.5% fall from the prior-year quarter’s reported figure.
    • Truist is expected to have set aside a substantial amount of money for potential bad loans (mainly commercial loan defaults), given the expectations of an economic slowdown.
    • Net Charge-off ratio was 0.6%, overall, in the most recent quarter compared to 0.4% a year ago.
  • Accuracy
    • The consensus estimate for NII (FTE) is pegged at $3.48 billion, which implies an 11.3% year-over-year decline.
    • The Zacks Consensus Estimate for TFC’s investment banking and trading income of $209.6 million indicates a 19.7% decline.
    • The consensus estimate for non-performing assets (NPAs) is pegged at $1.61 billion, indicating a rise of 27.9%.
    • The Zacks Consensus Estimate for TFC’s first-quarter earnings of 78 cents per share has been unchanged over the past seven days.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication