Why Truist Financial Stock Is Falling Today

Truist Financial Corporation TFC revenues in the second quarter rose 5.1% year-over-year to $5.97 billion, missing the consensus of $5.99 billion.

EPS in the quarter under review was $0.92, missing the consensus of $1.01. 

"Second quarter financial results were mixed as revenue headwinds from higher funding costs and lower-than-anticipated capital markets activity were partially offset by record insurance income," said Bill Rogers, Truist Chairman & CEO. 

Net interest income in the quarter under review jumped 7% year-over-year to $3.68 billion, while noninterest income soared 1.8% on year to $2.29 billion.

The provision for credit losses more than doubled on year to $538 million in the second quarter. The current quarter provision expense increase primarily reflects higher net charge-offs and an updated economic outlook. 

Average loans and leases were stable compared to the prior quarter as growth within the commercial and industrial portfolio was partially offset by a decrease in indirect auto in alignment with the company's strategic focus.

The Common equity tier 1, or CET1 ratio, was 9.6% at quarter end, with the financial enterprise having $178 billion of available liquidity sources.

Net interest margin was 2.91%, compared with 2.89% a year ago.

"We are executing swiftly on our strategy to optimize our core businesses exemplified by the sale of our non-core student loan portfolio at net carrying value with no P&L impact. We also made solid progress towards shifting our loan mix towards higher-return asset," Rogers added.

Price Action: TFC shares are trading lower by 4.6% to $33.93 on the last check Thursday.