from Charlotte, North Carolina Truist Financial Corp. was the last bank on Thursday (July 16) to release some good news in its second quarter results, but there is also plenty of evidence that retail banking beaten by COVID-19.
CEO Kelly King said he has been overall satisfied with the bank’s second earnings report since BB&T Corp. and SunTrust merged to create the sixth largest commercial bank in the country.
While describing the second quarter as “challenging,” he praised Truist’s wealth growth, strong investment banking performance, solid residential mortgage results, and record insurance brokerage quarter. Truist said it was also the No. 3 lender in the US Small Business Administration Paycheck Protection Program (PPP) based on gross funding.
But the bank was also preparing for a blow to the weakened US economywho added $ 844 million in the second quarter to the $ 893 million made available in the first period. “While asset-quality ratios remained relatively stable, we posted $ 844 million in the face of economic uncertainty and the tense environment – dollars ready for loan losses. This provides strong coverage for expected future credit losses, ”said King.
These losses were already noticeable in Truist’s second quarter results, albeit not in particularly dramatic form. According to the earnings report, net write-offs were 0.39 percent of the average loans and leases, three basis points more than in the previous quarter.
The bank also said it has been very active in providing loan payments to customers by the pandemic, which reached $ 21.2 billion in aid as of June 30.
All in all, the bank’s adjusted net income was $ 1.1 billion (82 cents per share) on sales of $ 5.9 billion. That beat analyst forecasts of about 73 cents per share on adjusted earnings of about $ 5.5 billion in revenue.