Financial services firm Truist Financial Corporation has reported insurance income of $813 million in the fourth quarter of 2023, compared with $766 million in Q4’22.
The company attributed its improved insurance income to organic growth. Organic revenue growth was 7.3% in Q4’23.
Revenue increased 7.4% to $851 million in Q4’23, compared with $59 million in Q4’22.
Noninterest expense increased 12% in Q4’22 driven by insurance readiness expense and increased personnel cost due to revenue growth and net new producer hires.
P&C premium rate increases remained relatively consistent in the quarter compared with prior quarters, the company noted.
Group-wide, Truist reported a net loss available to common shareholders of $5.17 billion, or $3.85 per share, in the reported quarter, compared with a profit of $1.61 billion, or $1.20 per share, a year earlier.
The firm took a $6.1 billion non-cash goodwill impairment charge, which it said will not impact liquidity, common share dividend payouts and capital ratios.
Truist allocated $507 million to restore a regulatory deposit insurance fund that had been depleted following the collapse of two mid-sized lenders in early 2023.
Additionally, the company incurred $183 million in charges associated with restructuring.
Net interest income fell 10.7% to $3.60 billion in Q4’23, compared with $4.03 billion in Q4’22.
“While reported results included several discrete items, we earned $1.1 billion on an adjusted basis during the fourth quarter, which excludes a non-cash goodwill impairment charge that has no impact on our regulatory capital ratios, liquidity, our ability to pay the common dividend, or service our clients,” said Chairman and CEO Bill Rogers.
“Underlying results were positive as our transformation into a simpler, more efficient, and profitable company is well underway. This transformative work was evident in our fourth quarter results given the sequential decline in adjusted expense and improvement in revenue.”
“We continue to invest in our core franchise and risk management infrastructure and strengthen our balance sheet as we achieved a CET1 ratio of 10.1% at year-end. Asset quality continues to normalise but remains in-line relative to our outlook and allowance coverage ratios,” Rogers continued.
“Looking into 2024, we remain diligently focused on winning on our home court in the best U.S. markets by helping new and existing core clients reach their financial goals. Our heightened focus on capitalising on this competitive advantage will drive efficiencies and growth that will lead to increased franchise and shareholder value,” Rogers concluded.
