Truist Reports Strong Core Fee Income In Q3 Earnings Report

Truist Financial Corporation reported on Thursday (Oct. 15) strong noninterest-bearing deposit growth and the completion its first major client-facing conversion, Truist Securities, in Q3 2020.

“The corporate and investment banking businesses of BB&T and SunTrust have been integrated and are now doing business as Truist Securities,” the company said in its earnings presentation.

Strong core fee income was sustained by an increase in service fees, card and payment charges, wealth and other income, according to the bank.

Provision for credit losses was $421 million for Q3 2020 in contrast to $844 million in Q2 2020, which encompassed a “modest build” in the allowance for credit losses, Truist reported. Net charge-offs were 0.42 percent of average loans and leases.

Truist also noted that CARES Act-related active client accommodations have dropped “significantly.”

“We are pleased to report strong performance for the quarter, particularly given the challenging environment,” Chairman and Chief Executive Officer Kelly S. King said in an announcement. “Our earnings reflect a modest build in our allowance for loan and lease losses, benefiting from our relatively stable asset quality. We also benefited from our diverse noninterest-income generating businesses and disciplined core expense control.”

Average deposits rose $1.4 billion sequentially to $372.2 billion, fueled by a $10.1 billion rise in average noninterest-bearing deposits.

Truist reported that loan balances for pandemic-sensitive industries fell 7.3 percent, or $2.2 billion, from Q2 2020 to finish out at $27.9 billion.

In terms of digital, Truist reported 21 percent growth in digital sales along with active mobile app users of 3.86 million in August 2020, in contrast to 3.58 million in August 2019.

The bank also reported 8.41 million accounts with paperless adoption in August 2020, in contrast to eight million in August 2019.

As for its overall results, Truist Financial Corporation reported adjusted diluted earnings per share of 97 cents on $5.6 billion in revenue. The results beat analyst expectations of 89 cents per share in earnings on $5.44 billion in revenue.