Truist Financial Corp (NYSE:TFC) stock rose 1.33% (As on January 19, 11:32:31 AM UTC-4, Source: Google Finance) after the company swung to a fourth-quarter loss due to a noncash impairment while delivering stronger-than-expected revenue. Taxable-equivalent net interest income for the fourth quarter of 2023 was down $430 million, or 11%, compared to the fourth quarter of 2022 primarily due to higher funding costs and lower earning assets. Net interest margin was 2.98%, down 27 basis points. Average earning assets decreased $11.5 billion, or 2.3%, primarily due to declines in average total loans of $8.9 billion, or 2.8%, and a decrease in average securities of $9.0 billion, or 6.3%, partially offset by growth in other earning assets of $7.5 billion, or 34%, primarily due to an increase in balances held at the Federal Reserve to support liquidity.

Moreover, Average loans held for investment decreased $5.5 billion, or 1.7%, compared to the prior quarter. Average commercial loans decreased 1.8% due to a decline in the commercial and industrial portfolio, partially offset by an increase in commercial construction loans. Average consumer loans decreased 1.8% primarily due to declines in the indirect auto and mortgage portfolios. Average deposits for the fourth quarter of 2023 were $395.3 billion, a decrease of $5.7 billion, or 1.4%, compared to the prior quarter.

TFC in the fourth quarter of FY 23 has reported the adjusted earnings per share of 81 cents, beating the analysts’ estimates for the adjusted earnings per share of 68 cents. The company had reported the adjusted revenue of $5.76 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $5.69 billion.

Additionally, Truist declared common dividends of $0.52 per share during the fourth quarter of 2023. Truist did not repurchase any shares in the fourth quarter of 2023. Truist’s CET1 ratio was 10.1% as of December 31, 2023. The increase since September 30, 2023 resulted from organic capital generation and RWA optimization. Nonperforming assets totaled $1.5 billion at December 31, 2023, down 6.0% compared to September 30, 2023. Nonperforming loans and leases held for investment were 0.44% of loans and leases held for investment at December 31, 2023, down two basis points compared to September 30, 2023. The provision for credit losses was $572 million compared to $467 million for the fourth quarter of 2022.