Commercial bank Truist's Q3 adjusted EPS beats estimates

Overview

• U.S. commercial bank's Q3 adjusted EPS beat analyst expectations

• Company reported CET1 capital ratio of 10.7% for Q3

• Provision for credit losses for Q3 was $253 mln

Outlook

• Company did not provide specific guidance for future quarters or the full year in the press release

Result Drivers

• AFS SECURITIES REPOSITIONING – A $1.4 bln loss on AFS securities sales weighed heavily on non-interest income

• RAC LOAN SALE – Release of remaining credit-loss reserves generated a $581 mln benefit, partly offset by $106 mln of sale-related impacts

• NET INTEREST INCOME – TE net interest income rose $40 mln q/q, driven by an extra day and fixed asset and liability repricing, partly offset by lower loans

Company press release:

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", 12 "hold" and 4 "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 Corporation is $54.50, about 17% above its October 15 closing price of $46.57

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)