BlackRock, Inc., the world’s largest asset manager, has reported a highly successful third quarter for 2024, marked by strong financial growth. The firm’s total assets under management (AUM) surged to a record $11.5 trillion, driven by $221 billion in net inflows during the quarter. This represents a significant year-over-year increase of $2.4 trillion in AUM, showcasing BlackRock's continued leadership in the asset management industry.
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Truist Reports Q2 2024 Financial Results: Stock Drops 2.5% in Premarket
Truist Financial Corporation has announced its second-quarter 2024 financial results, revealing a mixed performance across various metrics. Despite strategic initiatives and a solid capital position, the company's stock has seen a 2.5% decline in premarket trading.
Q2 2024 Key Financial Highlights
Net Income and Earnings Per Share
- Net income available to common shareholders: $826 million, or $0.62 per share.
- Adjusted net income: $1.2 billion, or $0.91 per share.
Revenue and Expenses
- Net interest income: $3.58 billion, up 4.5% from Q1 2024.
- Total revenue: -$1.63 billion, a significant drop due to $6.7 billion in securities losses from strategic balance sheet repositioning.
- Noninterest income: -$5.21 billion, impacted by securities losses.
- Noninterest expense: $3.09 billion, up 4.8% from Q1 2024.
Key Ratios and Metrics
- CET1 ratio: 11.6%, significantly strengthened by the sale of Truist Insurance Holdings (TIH).
- Adjusted PPNR: $2.21 billion, indicating strong operational performance despite reported losses.
- Net interest margin: 3.03%, up 14 basis points from Q1 2024.
Performance and Strategic Moves
Balance Sheet Repositioning and Capital Strength
- Truist executed a strategic repositioning of its balance sheet, including a $6.7 billion sale of securities.
- The CET1 ratio improved to 11.6%, reflecting a robust capital position.
- Announced up to $5 billion in share repurchase authorization through 2026, with buybacks expected to begin in Q3 2024.
Income and Expenses Breakdown
- Net interest income increased due to higher rates on earning assets.
- Noninterest income was flat, excluding securities losses, with higher mortgage banking income offsetting declines in investment banking.
- Noninterest expense rose due to higher personnel costs and professional fees, with a notable $150 million charitable contribution to the Truist Foundation.
Loan and Deposit Trends
- Average loans and leases decreased by 0.7%, with declines in commercial and residential mortgage portfolios.
- Average deposits decreased by 0.3%, reflecting a stable but cautious lending environment.
Outlook for 2024
Truist's CEO, Bill Rogers, emphasized the company's strengthened capital position and strategic initiatives aimed at enhancing shareholder value and supporting core banking operations. The company remains optimistic about future growth, leveraging its solid capital base and strategic focus on core banking services.
Truist's Q2 2024 results highlight its commitment to strategic financial management and operational excellence. However, the significant securities losses and a cautious economic outlook have influenced market sentiment, resulting in a 2.5% decline in premarket stock trading.
Source: Truist Financial Corp
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