Truist Financial Corp (NYSE:TFC) stock rose 0.56% (As on October 18, 11:35:15 AM UTC-4, Source: Google Finance) after the company reported third quarter 2024 results that surpassed analyst expectations, with both earnings and revenue coming in above estimates, spurred by higher income from investment banking and trading. Taxable-equivalent net interest income for the third quarter of 2024 was up $65 million, or 1.8%, compared to the third quarter of 2023 primarily due to the balance sheet repositioning. Net interest margin was 3.12%, up 20 basis points. Average earning assets decreased $22.9 billion, or 4.7%, primarily due to a decrease in average securities of $19.0 billion, or 14%, and a decline in average total loans of $15.3 billion, or 4.8%, partially offset by growth in other earning assets of $10.4 billion, or 36%. The decrease in average securities and increase in average other earning assets primarily reflects the balance sheet repositioning.

Moreover, the average deposits decreased $16.7 billion, or 4.2%, average short-term borrowings decreased $4.1 billion, or 17%, and average long-term debt decreased $8.0 billion, or 19%. The average cost of total deposits was 2.08%, up 24 basis points. The average cost of short-term borrowings was 5.41%, down six basis points. The average cost of long-term debt was 5.13%, up 62 basis points. The increase in rates on deposits and other funding sources was largely attributable to the higher rate environment. Noninterest income was up $149 million, or 11%, compared to the third quarter of 2023 primarily due to higher investment banking and trading income and service charges on deposits, partially offset by lower other income. Average loans held for investment decreased $3.0 billion, or 1.0%, compared to the prior quarter. Average deposits for the third quarter of 2024 were $384.3 billion, a decrease of $3.7 billion, or 1.0%, compared to the prior quarter.

TFC in the third quarter of FY 24 has reported the adjusted earnings per share of 97 cents, beating the analysts’ estimates for the adjusted earnings per share of 91 cents. The company had reported the adjusted revenue of $5.14 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue of $5.09 billion. Truist’s CET1 ratio was 11.6% as of September 30, 2024, flat compared to June 30, 2024. Nonperforming assets totaled $1.5 billion at September 30, 2024, up $52 million compared to June 30, 2024.