Why the Newest Big Bank on the Block Should Outperform
Truist Financial (NYSE: TFC), the sixth-largest bank in the U.S., formed last December from the merger of SunTrust and BB&T. With $504 billion in assets as of June 30, it is among the largest regional banks in the country. While all banks are facing headwinds during the coronavirus-sparked recession, Truist has some key differentiators that should help it outperform its peers.
Those differentiators began to emerge in the second quarter as the company posted solid earnings, and they should drive earnings growth through the recession.
When it posted earnings on July 16, Truist said it saw quarterly net income rise 7.1% to $901 million, compared to the same period a year ago. Diluted earnings per share were down 38% to $0.67 per share, in part due to $209 million of merger-related and restructuring charges, $129 million in operating expenses related to the merger, and $235 million in losses from extinguishing long-term debt early. The bank also had $884 million allocated for the provision of potential credit losses, up from $172 million a year ago.
Source Fool.com
