Truist Financial's Q4 Earnings Beat as NII & Fee Income Rise, Stock Up

Earnings Performance - Truist Financial's Q4 2024 adjusted earnings per share of $0.91 surpassed the Zacks Consensus Estimate of $0.87, marking a 12.3% YoY increase [1] - Adjusted earnings for 2024 were $3.69 per share, beating the Zacks Consensus Estimate by $0.01 [3] - Net income available to common shareholders (GAAP basis) was $1.22 billion in Q4 2024, compared to a loss of $5.17 billion in the prior-year quarter [3] - Full-year 2024 net income available to common shareholders (GAAP basis) was $4.47 billion, a significant improvement from a net loss of $1.45 billion in the previous year [3] Revenue and Expenses - Q4 2024 total revenues of $5.06 billion grew 3.6% YoY, beating the Zacks Consensus Estimate of $5 billion [4] - Full-year 2024 revenues were $13.28 billion, down 33.7% YoY and lagging the Zacks Consensus Estimate of $19.87 billion [4] - Tax-equivalent net interest income (NII) increased 1.8% to $3.64 billion in Q4 2024, driven by balance sheet repositioning [4] - Non-interest income rose 7.9% to $1.47 billion in Q4 2024, driven by higher investment banking, trading income, mortgage banking income, and service charges [5] - Non-interest expenses were $3.04 billion in Q4 2024, down 68.2% YoY, but adjusted non-interest expenses rose 7.6% to $3.03 billion [6] Credit Quality and Provisions - Net charge-offs were 0.59% of average loans and leases in Q4 2024, up 2 bps YoY [8] - The allowance for loan and lease losses was 1.59% of total loans and leases held for investment, increasing 5 bps YoY [8] - Provision for credit losses was $471 million in Q4 2024, down 17.7% from the prior-year quarter [8] - Total non-performing assets (NPAs) were $1.48 billion as of Dec 31, 2024, down marginally [9] Profitability and Capital Ratios - Return on average common equity improved to 8.4% in Q4 2024, compared to a negative 36.6% in Q4 2023 [10] - Tier 1 risk-based capital ratio was 12.9% as of Dec 31, 2024, up from 11.6% in the prior-year quarter [10] - Common equity Tier 1 ratio was 11.5% as of Dec 31, 2024, up from 10.1% as of Dec 31, 2023 [10] Share Repurchases - Truist Financial repurchased shares worth $500 million during Q4 2024 [11] Peer Performance - Wells Fargo reported Q4 2024 adjusted earnings per share of $1.42, surpassing the Zacks Consensus Estimate of $1.34 and up from $1.29 in the prior-year quarter [13] - JPMorgan's Q4 2024 earnings per share were $4.81, significantly surpassing the Zacks Consensus Estimate of $4.03 [14]