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Truist Financial Corporation reports first quarter 2021 results

CHARLOTTE, N.C. — Truist Financial Corporation has reported earnings for the first quarter of 2021.

Net income available to common shareholders was $1.3 billion, up 35.3 percent, compared to the first quarter last year. Earnings per diluted common share were 98 cents, an increase of 34.2 percent compared with the same period last year. Results for the first quarter produced an annualized return on average assets of 1.17 percent, an annualized return on average common shareholders’ equity of 8.69 percent and an annualized return on tangible common shareholders’ equity of 16.40 percent.

Adjusted net income available to common shareholders was $1.6 billion, or $1.18 per diluted share, excluding merger-related and restructuring charges of $141 million ($108 million after-tax), incremental operating expenses related to the merger of $175 million ($134 million after-tax) and an acceleration of loss recognition related to certain terminated cash flow hedges of $36 million ($28 million after-tax). Adjusted results produced an annualized ROA of 1.39 percent, an annualized ROCE of 10.41 percent and an annualized ROTCE of 19.36 percent.

“Truist and our teammates have a lot to be proud of in the first quarter, including a strong financial performance and several significant milestones reflective of our purpose in action,” said Chairman and Chief Executive Officer Kelly S. King. “We advanced our ESG strategy with the issuance of our first social bond–becoming the first U.S. regional bank to do so–and became the lead investor for Greenwood, an innovative digital banking platform designed for Black and Latinx consumers and business owners. In addition, we received an ‘Outstanding’ CRA rating for our community development efforts, and continued to make great progress towards our Community Benefits Plan, after ending 2020 at 114 percent of our annual target. These achievements reflect our continued commitment to support and invest in the diverse communities we’re proud to serve.”

Adjusted net income was $1.6 billion, an increase of 42 percent compared with the first quarter last year, he said. On a diluted per share basis, adjusted net income was $1.18 per share, also up 42 percent from last year.

“This growth resulted from a record performance in our insurance business, record results from investment banking and a significantly lower provision for credit losses,” he said. “We also demonstrated strong expense discipline by reducing expenses.”

Adjusted efficiency ratio for the quarter was 56.9 percent and the adjusted return on average tangible common shareholders’ equity was a strong 19.36 percent.

“We continue to make important progress on our integration efforts, including completing the wealth brokerage transition earlier this quarter,” King said.

Through the Integrated Relationship Management approach, Truist deepened client relationships across its investment banking and insurance businesses, significantly increasing referral volumes, he said.

“We were also honored to be recognized for our commitment to stand for better by the Human Rights Campaign’s Corporate Equality Index with a perfect 100 score, by ‘FORTUNE’ as one of the world’s most admired companies and as a top 50 employer by both ‘Equal Opportunity’ and ‘CAREERS & the disABLED’ magazines,” King said.

Truist Financial Corp. was created by the merger of BB&T and SunTrust. Headquartered in Charlotte, N.C., Truist is the sixth-largest commercial bank in the U.S. with assets of $518 billion as of March 31.

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