Menu

Reinsurance News

Truist Financial’s Q2 net income rises to $1.6bn

16th July 2021 - Author: Charlie Wood

Purpose-driven financial services firm Truist Financial Corporation has announced a second quarter net income of $1.6 billion, up 73% compared to last year’s quarter.

truist-logoResults for the quarter also produced an annualised return on average assets (ROA) of 1.28%, an annualised return on average common shareholders’ equity of 10.1% and an annualised return on tangible common shareholders’ equity of 18.9%.

Adjusted net income was $2.1 billion, excluding merger-related and restructuring charges of $297 million ($228 million after-tax), incremental operating expenses related to the merger of $190 million ($146 million after-tax) and charitable contributions of $200 million ($153 million after-tax).

“Truist produced record adjusted earnings for the second quarter, driven by a negative loan loss provision and strong fee income, including record insurance commissions, wealth management income, card and payment related fees and commercial real estate related income,” said Chairman and Chief Executive Officer Kelly S. King.

“In addition to this strong performance, earlier this month we successfully completed the acquisition of Constellation Affiliated Partners through our CRC Group insurance subsidiary.

RMS

“The acquisition is CRC’s eighth in the last 18 months and more than doubles our specialty and programs business. The acquisition makes CRC one of the largest program managers in North America and continues to drive growth in our largest fee income generating business.”

“We were also excited to announce the results of the CCAR stress testing process in June. Truist was one of the top performers compared with our peers that were subject to the process with the second lowest loan loss rate among our peers under the severely adverse stress scenario.

He added, “We also announced plans to propose a 7% increase in our dividend to a record $0.48 as part of our mission to continue providing a stable and growing dividend for our shareholders.

“In addition, given our progress towards a successful conversion, an improving economic outlook, and successful CCAR results, we plan to lower our near-term CET1 target to approximately 9.75%, giving us additional capacity to deploy incremental capital on behalf of our clients and shareholders.”

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
MS Amlin appoints new COO, P&C country manager

MS Amlin Insurance SE has announced the appointments of Norbert Herkströter as Chief Operations Officer and Jan Vande Weghe as...

Close