Fourth quarter 2022 GAAP earnings of $1.6 billion, or $1.20 per diluted share
Fourth quarter 2022 Adjusted earnings of $1.7 billion, or $1.30 per diluted share
Results reflect strong PPNR performance as a result of strong loan growth and expanded NIM
Capital, liquidity, and credit quality remain strengths
CHARLOTTE, N.C., Jan. 19, 2023 /PRNewswire/ — Truist Financial Corporation (NYSE: TFC) today reported earnings for the fourth quarter and full year of 2022.
Net income available to common shareholders of $1.6 billion was up 5.6% from the fourth quarter of 2021. Earnings per diluted common share were $1.20, an increase of 6.2% compared with the same period last year. Results for the fourth quarter produced an annualized return on average assets (ROA) of 1.21%, an annualized return on average common shareholders’ equity (ROCE) of 11.7%, and an annualized return on tangible common shareholders’ equity (ROTCE) of 27.6%.
Adjusted net income available to common shareholders was $1.7 billion, or $1.30 per diluted share, excluding merger-related and restructuring charges of $114 million ($87 million after-tax) and incremental operating expenses related to the merger of $56 million ($43 million after-tax). Adjusted results produced an annualized ROA of 1.30%, an annualized ROCE of 12.6%, and an annualized ROTCE of 29.6%.
For the full year 2022, net income available to common shareholders was $5.9 billion compared to $6.0 billion for 2021. Earnings per diluted share were $4.43 for 2022 compared to $4.47 for 2021. Results for 2022 produced an ROA of 1.15%, an ROCE of 10.4%, and an ROTCE of 22.9%.
Adjusted net income available to common shareholders for the full year 2022, which excludes merger-related charges, incremental operating expenses related to the merger, and certain other items as detailed in our non-GAAP reconciliations was $6.6 billion compared to $7.5 billion for 2021. Adjusted diluted earnings per share was $4.96, down 10.3%, compared to $5.53 for 2021. Adjusted results for 2022 produced an ROA of 1.28%, an ROCE of 11.6%, and an ROTCE of 25.1%.
“Fourth quarter results were strong, reflecting post-integration momentum and progress in many areas. Robust loan growth, significant margin expansion, and good cost discipline contributed to a 12% sequential increase in adjusted pre-provision net revenue. Credit quality remains strong reflecting our conservative credit culture and diverse business mix. We also delivered on our commitment to achieve positive operating leverage for the full-year 2022,” said Chairman and CEO Bill Rogers.
“We fulfilled our purpose to inspire and build better lives and communities in many ways throughout the year. We showed care for our teammates with a bold increase in our minimum wage; created new ways to meet clients’ needs through initiatives like Truist One Banking and enhanced digital offerings like Truist Assist, Truist Invest Pro, and Truist Trade; and supported our communities, including introducing a $120 million commitment to small businesses. In addition, we exceeded our $60 billion Community Benefits Plan commitment that we established at the time of the merger.
“Last year was a strategic turning point for Truist as we began to shift our focus to executional excellence and purposeful growth. I look forward to further realizing our potential in 2023 as we fully leverage our increased capacity, expanded capabilities and talented teammates to actualize our purpose.”
Fourth Quarter 2022 Performance Highlights
- Earnings per diluted common share for the fourth quarter of 2022 were $1.20
- Adjusted diluted earnings per share were $1.30, up 4.8%, compared to third quarter 2022 and down 5.8%, compared to fourth quarter 2021
- ROA was 1.21%; adjusted ROA was 1.30%
- ROCE was 11.7%; adjusted ROCE was 12.6%
- ROTCE was 27.6%; adjusted ROTCE was 29.6%
- Pre-provision net revenue (PPNR) for the fourth quarter of 2022 was $2.5 billion, up 12% compared to third quarter 2022 and 34% compared to fourth quarter 2021
- Adjusted PPNR was up 12% compared to third quarter 2022 and 17% compared to fourth quarter 2021
- GAAP operating leverage was 10.9% compared to fourth quarter 2021
- Adjusted operating leverage was 3.7% compared to fourth quarter 2021
- Taxable-equivalent revenue for the fourth quarter of 2022 was $6.3 billion, up 6.3% compared to third quarter 2022 and up 12% compared to fourth quarter 2021
- Taxable-equivalent net interest income was up 6.6% compared to third quarter 2022 and up 23%…
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