NYSE$TFC
Truist Financial Corp · Q2 2021 earnings
Q2 2021 earnings · · Investor relations
Briefing
Truist reported strong second-quarter earnings, driven by a negative loan loss provision and strong fee income.
Truist Financial Corporation reported a net income of $1.6 billion for the second quarter of 2021, a 73% increase compared to the same period last year. Adjusted net income was $2.1 billion. The results reflect a diverse business mix, strong fee income, and solid expense management. Excellent credit quality and improving economic conditions drove a negative provision.
- Earnings per diluted common share were $1.16; adjusted diluted earnings per share were $1.55, up 31% compared to first quarter 2021 and 89% compared to second quarter 2020.
- Taxable-equivalent revenue was $5.7 billion; adjusted taxable-equivalent revenue, excluding securities gains and a gain on sale of a business in the prior quarter, was up 3.7% compared to first quarter 2021 and 1.4% compared to second quarter 2020.
- Adjusted efficiency ratio improved to 56.1%, compared to 56.9% for first quarter 2021.
- Asset quality ratios improved reflecting improving economic conditions and effective problem asset resolution.
Headline financials
Revenue & EPS history
Truist · Revenue · Quarterly
$5.65B
Forward guidance
Truist plans to target a CET1 ratio of approximately 9.75% over the near-term, and accordingly, the Company expects to be able to deploy approximately $4 billion to $5 billion of capital (either in the form of share repurchases or acquisitions) over the next 5 quarters (3Q21-3Q22).
Tailwinds
- Plans to propose a 7% increase in dividend to $0.48 per share.
- Successful completion of the acquisition of Constellation Affiliated Partners.
- Lower near-term CET1 target to approximately 9.75%, giving additional capacity to deploy incremental capital.
- Strong deposit growth resulting from fiscal and monetary stimulus.
- Improving economic outlook.
Headwinds
- Merger-related and restructuring charges.
- Incremental operating expenses related to the merger.
- Lower purchase accounting accretion.
- Lower rates on earning assets.
- Uncertainties related to the integration of heritage BB&T and heritage SunTrust.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2021
+0.3%
Avg return
Earnings day
-0.0%
Avg return
5 days after
+0.9%
Avg return
30 days after
51%
37 / 72 earnings
Positive
+9.8%
Q2 2009
Best reaction
-9.5%
Q1 2023
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q4 2025 | +0.4% | +3.1% | -5.0% | |
| Q1 2026 | +1.7% | +3.1% | -5.0% | |
| Q3 2025 | +3.8% | +6.1% | +9.2% | |
| Q2 2025 | +0.3% | -1.4% | +0.9% | |
| Q1 2025 | -0.3% | +0.9% | +15.0% | |
| Q3 2024 | -1.9% | -2.6% | +4.5% | |
| Q2 2024 | +4.1% | +4.7% | -0.8% | |
| Q1 2024 | +3.2% | +8.9% | +12.1% | |
| Q4 2023 | +4.7% | +2.9% | +0.9% | |
| Q3 2023 | -5.5% | -4.1% | +11.2% | |
| Q2 2023 | -7.1% | -8.5% | -19.1% | |
| Q1 2023 | -9.5% | -12.5% | -14.6% | |
| Q4 2022 | +4.8% | +5.7% | +6.0% | |
| Q3 2022 | -4.5% | -6.6% | +1.6% | |
| Q2 2022 | +2.0% | +2.2% | +9.2% | |
| Q1 2022 | -0.2% | -3.4% | -12.4% | |
| Q4 2021 | -4.2% | -8.8% | -7.2% | |
| Q3 2021 | +1.8% | +5.3% | +3.4% | |
| Q2 2021 | -0.1% | -0.7% | +5.4% | |
| Q1 2021 | -3.1% | -6.6% | +3.3% | |
| Q4 2020 | -0.9% | -2.7% | +11.5% | |
| Q3 2020 | -1.4% | -0.3% | +11.7% | |
| Q2 2020 | -1.7% | +0.9% | +7.0% | |
| Q1 2020 | +1.9% | +6.2% | +1.1% | |
| Q4 2019 | -4.3% | -1.3% | -14.3% | |
| Q3 2019 | +1.8% | +1.2% | +3.1% | |
| Q2 2019 | -3.4% | -7.8% | -7.3% | |
| Q1 2019 | +3.2% | +4.0% | +10.0% | |
| Q4 2018 | -0.4% | +1.1% | -9.7% | |
| Q3 2018 | +1.6% | +4.6% | +7.1% | |
| Q2 2018 | +0.7% | +0.1% | +1.3% | |
| Q1 2018 | -2.1% | +1.6% | +1.5% | |
| Q4 2017 | -0.5% | +2.2% | -7.2% | |
| Q3 2017 | +1.0% | +1.9% | -4.7% | |
| Q2 2017 | +0.9% | +2.2% | -1.6% | |
| Q1 2017 | -1.1% | -2.8% | -4.5% | |
| Q4 2016 | +0.4% | +0.3% | -7.6% | |
| Q3 2016 | +0.2% | +0.9% | +15.0% | |
| Q2 2016 | +0.3% | -0.9% | +2.7% | |
| Q1 2016 | -0.1% | — | — | |
| Q4 2015 | +4.1% | — | — | |
| Q3 2015 | +0.1% | — | — | |
| Q2 2015 | -0.8% | — | — | |
| Q1 2015 | -1.3% | — | — | |
| Q4 2014 | +0.5% | — | — | |
| Q3 2014 | +1.6% | — | — | |
| Q2 2014 | -1.3% | — | — | |
| Q1 2014 | +1.5% | — | — | |
| Q4 2013 | -0.1% | — | — | |
| Q3 2013 | -1.6% | — | — | |
| Q2 2013 | -0.1% | — | — | |
| Q4 2012 | +1.9% | — | — | |
| Q1 2013 | -1.6% | — | — | |
| Q4 2011 | +2.5% | — | — | |
| Q3 2012 | -1.3% | — | — | |
| Q2 2012 | +0.2% | — | — | |
| Q1 2012 | -0.2% | — | — | |
| Q3 2011 | -4.7% | — | — | |
| Q2 2011 | -4.6% | — | — | |
| Q1 2011 | -0.3% | — | — | |
| Q4 2009 | -0.3% | — | — | |
| Q4 2010 | -0.3% | — | — | |
| Q3 2010 | +0.4% | — | — | |
| Q2 2010 | +2.3% | — | — | |
| Q1 2009 | +5.6% | — | — | |
| Q1 2010 | +1.6% | — | — | |
| Q4 2007 | -1.5% | — | — | |
| Q3 2009 | +2.5% | — | — | |
| Q3 2008 | +2.5% | — | — | |
| Q2 2008 | +9.8% | — | — | |
| Q4 2008 | +9.8% | — | — | |
| Q2 2009 | +9.8% | — | — |
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