Truist Posts Q1 Profit Beat But Warns on Full-Year Revenue [Video]

Shares of Truist Financial (TFC) advanced Monday as the financial services provider posted a quarterly profit beat, but warned about revenue the rest of the year.

Truist reported first-quarter adjusted earnings per share (EPS) of $0.90, beating estimates, but revenue dropped 8.8% to $4.87 billion, short of forecasts.

Truist’s net interest income declined 4.2% to $3.43 billion, missing expectations, and net income margin slid 7 basis points (bps). The bank blamed “lower earning assets and higher funding costs.” However, noninterest income jumped 6.1% to $1.45 billion on higher investment banking and trading income.

The company also paid $75 million in a special assessment by the Federal Deposit Insurance Corporation (FDIC) to help pay the costs of the federal takeover of failed banks. 

Chief Executive Officer (CEO) Bill Rogers explained that Truist faced muted loan demand while deposit costs continued to rise. 

The company predicted full-year taxable-equivalent revenue to fall 4% to 5%, down from its …