Overview

• U.S. regional bank's Q2 net income rose 25% yr/yr, EPS up 37%

• Q2 total revenue grew 5.5% yr/yr, driven by higher fee and wealth management income

• Company returned $1.8 bln to shareholders via dividends and share repurchases

Outlook

• Truist did not provide specific financial guidance for the current or future periods in the press release

Result Drivers

• FEE INCOME - Higher investment banking, trading, and wealth management income contributed to revenue growth

• EQUITY INVESTMENTS - Noninterest income increased 5.9%, driven by income from equity investments

• LOAN AND DEPOSIT GROWTH - Average loans and leases and average deposits both increased, reflecting commercial and industrial loan growth and higher interest checking deposits

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 14 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Truist Financial Corp is $55.50, about 4.2% above its July 16 closing price of $53.25

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

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