Truist Financial Corp (NYSE:TFC) stock rose 2.08% (As on April 23, 11:29:09 AM UTC-4, Source: Google Finance) after the company posted mixed results for the first quarter of FY 24. Truist Financial announced in February that it had agreed to sell that stake to Stone Point Capital LLC and other investors. The sale of the insurance unit is expected to significantly strengthen the relative capital position, which will create substantial capacity for growth in the core banking businesses. The sale is on track to close in the current quarter. Meanwhile, net interest income declined 4.2% due to lower earning assets and higher funding costs; net interest margin was down seven basis points , compared to the fourth quarter of 2023 primarily due to lower earning assets and higher funding costs. Net income available to common shareholders was $1.1 billion, including FDIC special assessment of $75 million ($57 million after-tax), or $0.04 per share and restructuring charges of $70 million ($53 million after-tax), or $0.04 per share) for continuing and discontinued operations or $51 million ($39 million after-tax), or $0.03 per share, from continuing operations primarily due to severance and branch closures.

TFC in the first quarter of FY 24 has reported the adjusted earnings per share of 90 cents, beating the analysts’ estimates for the adjusted earnings per share of 78 cents. The company had reported 1.4 percent decline in the adjusted revenue growth to $4.87 billion in the first quarter of FY 24, missing the analysts’ estimates for revenue of $5.7 billion. Average loans held for investment decreased $4.1 billion, or 1.3%, compared to the prior quarter. Average commercial loans decreased 0.9% due to a decline in the commercial and industrial portfolio. Average consumer loans decreased 2.0% due to declines across all portfolios. Average deposits for the first quarter of 2024 were $389.1 billion, a decrease of $6.3 billion, or 1.6%, compared to the prior quarter.

Additionally, Truist declared common dividends of $0.52 per share during the first quarter of 2024. Truist did not repurchase any shares in the first quarter of 2024. Truist’s CET1 ratio was 10.1% as of March 31, 2024, flat compared to December 31, 2023 as organic capital generation and RWA optimization were partially offset by the CECL phase-in. Truist’s average consolidated LCR was 115% for the three months ended March 31, 2024, compared to the regulatory minimum of 100%. Nonperforming assets totaled $1.5 billion at March 31, 2024, down slightly compared to December 31, 2023.