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Mar 31, 2023
Truist Q1 2023 Earnings Report
Reported GAAP earnings of $1.4 billion, or $1.05 per share, with PPNR up 47% and adjusted PPNR up 19% compared to 1Q22. Capital, liquidity, and credit quality remained strong.
Key Takeaways
Truist reported first quarter 2023 results with GAAP earnings of $1.4 billion, or $1.05 per share. Adjusted PPNR was up 19% from the year-ago quarter due to NIM expansion and strong loan growth. Asset quality remained strong with the net charge-off ratio at 37 basis points, and capital and liquidity levels remained strong with a CET1 ratio of 9.1%.
Net income was $1.4 billion, or $1.05 per diluted share, including $63 million of merger-related and restructuring charges.
Adjusted PPNR was $2.7 billion, down 7.2% compared to the prior quarter but up 19% from the year-ago quarter.
Average loans and leases increased 1.7% compared to the prior quarter, driven by growth within the commercial and industrial portfolio.
Asset quality remained strong with the net charge-off ratio at 37 basis points, stable nonperforming loans, and lower delinquencies.
Forward Guidance
Truist's CEO remains highly confident in Truist’s trajectory and ability to be a source of strength and stability for its clients and communities.
Positive Outlook
- TIH minority stake sale closed April 3, which adds approximately 30 basis points to risk-based capital ratios.
- Improved organic production and integrated relationship management momentum.
- Asset quality metrics remain strong.
- Focus on clients remained unwavering.
- Diverse business model, granular and relationship-oriented deposit base, and strong capital and liquidity position.
Challenges Ahead
- Challenging and unique quarter for the banking industry.
- Higher-than-expected funding costs.
- Adjusted pre-provision net revenue decreased 7.2% sequentially.
- Work remains to achieve positive adjusted operating leverage.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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