Truist Financial (TFC) Q4 2023 earnings summary

Executive summary

• Q4 net loss available to common shareholders was $5.2B, or $3.85 per diluted share, driven chiefly by a $6.1B noncash goodwill impairment; adjusted net income was $1.1B and adjusted EPS was $0.81.

• Adjusted PPNR was $2.374B, up 8.6% QoQ; revenue rose 0.5% QoQ, adjusted expenses fell 4.5%, and CET1 increased 20 bps to 10.1%.

Financial highlights

• Revenue was $5.756B, down 8.0% YoY; net interest income was $3.60B, down 0.6% QoQ and 11% YoY, while noninterest income was $2.16B, up 2.2% QoQ.

• Adjusted noninterest expense was $3.382B, down 4.5% QoQ and 0.2% YoY; excluding TIH independence-readiness costs, it fell 5.2% QoQ and 1.1% YoY.

• Q4 included a $507M FDIC special assessment, $183M in merger-related and restructuring charges, and a $204M discrete tax benefit.

• FY23 GAAP net loss available to common shareholders was $1.452B; adjusted net income was $4.809B and adjusted diluted EPS was $3.59.

Outlook and guidance

• 1Q24 revenue outlook: flat to down 1% QoQ; adjusted expenses expected up 4%, including TIH independence-readiness costs.

• FY24 revenue outlook: down 1%–3%; adjusted expenses flat to up 1%, including $85M of TIH independence-readiness costs.

• FY24 net charge-off ratio outlook is down 65 bps; effective tax rate outlook is 17%, or 20% on an FTE basis.

• 2024 priorities include limiting expense growth to 0%–1%, deepening core relationships, improving efficiency, increasing capital ratios, and maintaining asset quality.