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Truist Financial Posts Better-Than-Expected Q4 Earnings

Truist Financial Corporation (TFC) has reported that its fourth quarter, ended December 31, 2021, earnings of $1.38 per share surpassed the Street’s estimates of $1.25 per share and rose 17% from the last year’s quarter.

The company reported quarterly revenues of $5.6 billion, in line with the consensus estimate. The revenues, however, declined 1.6% from the fourth quarter of 2020 due to a 3.7% year-over-year fall in net interest income.

Provision for credit losses was a benefit of $103 million in the fourth quarter, against a cost of $177 million in the year-ago quarter. The current quarter reflects benefits of improving economic outlook. The net charge-off ratio came in at 0.25%, down 2 basis points, against the prior-year quarter.

For 2021, adjusted net income available to common shareholders was $7.5 billion, up from $5.2 billion in 2020. The company reported adjusted EPS of $5.53, up 46% from 2020.

The CEO of Truist Financial, Bill Rogers, said, “We have strong momentum heading into the year with an improving loan growth trajectory and growing fee income businesses. We will shift from an integration mindset to an operating mindset focused on executional excellence and growth, accelerate investments in our businesses, all underpinned by our unwavering purpose.”

Analyst Rating

Last week, Jefferies analyst Ken Usdin reiterated a Hold rating on the stock and raised the price target to $70 from $68. The new price target implies upside potential of 3.8% from current levels.

Overall, the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 4 Buys and 6 Holds. The average Truist Financial price target of $66.94 implies that the stock has downside potential of 0.7% from current levels.

Smart Score

Truist Financial scores a 9 out of 10 from TipRanks’ Smart Score rating system, indicating that TFC is likely to outperform market expectations. Shares have gained 33.4% over the past year.

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