Truist Financial Corporation, a significant player in U.S. commercial banking, reported its fourth-quarter earnings for 2024, demonstrating a stable operational performance. For the quarter, Truist generated a net income available to common shareholders of $1.22 billion, translating to a diluted earnings per share of $0.91. This compares to a net loss of $5.17 billion during the same quarter last year.

In terms of revenue, Truist posted total taxable-equivalent revenue of $5.11 billion for the fourth quarter, down slightly from $5.14 billion in the previous quarter and up from $4.94 billion year-over-year. The decline in revenue is attributed primarily to a decrease in investment banking and trading income, which fell to $262 million from $332 million in the prior quarter. However, noninterest income overall increased by 7.9% compared to the fourth quarter of 2023, reaching $1.47 billion.

The bank’s net interest income for the fourth quarter stood at $3.64 billion, a slight decrease from $3.66 billion in the third quarter, impacted by a five-basis point decline in the net interest margin to 3.07%. Adjusted results show a net income available to common shareholders of $1.21 billion, marking a modest increase from $1.09 billion a year ago.

Truist’s total noninterest expense increased to $3.04 billion in the fourth quarter, rising 3.7% from the previous quarter, despite showing a decrease compared to the prior year due to a significant goodwill impairment charge last year. Adjusted noninterest expense slightly increased by 4.0%, driven by higher professional fees and expenses associated with technology improvements. The efficiency ratio for the quarter was reported at 60%.

Average deposits during the fourth quarter increased by $5.7 billion, or 1.5%, reaching $390 billion. The average cost of total deposits declined by 19 basis points to 1.89% due to repricing effects. Average loans and leases held for investment remained steady at approximately $303 billion.

On the credit quality front, net charge-offs increased to 0.59% of average loans, up from 0.55% in the previous quarter. The bank’s common equity tier 1 capital ratio was 11.5%, down from 11.6% in the prior quarter but significantly improved compared to 10.1% a year ago, bolstered by capital generated from its balance sheet repositioning and solid earnings performance.

Overall, Truist exhibited a stable condition. Key metrics reveal a year-over-year rise in adjusted net income, alongside a noted increase in average deposits, indicating a steady operational foundation, despite slight revenue declines attributed to market conditions.