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 Solid First Quarter 2024 Results Amidst Economic Adjustments
Truist Financial Corporation has reported its financial outcomes for the first quarter of 2024, indicating a solid performance with net income of $1.1 billion or $0.81 per share. The adjusted net income stands at $1.2 billion, reflecting an increase of 11% from previous figures, translating to $0.90 per share.
Revenue and Expenses Analysis
During the first quarter, Truist's total revenue experienced a slight decline of 1.4%, amounting to $4.87 billion, down from $4.94 billion in the preceding quarter. The drop in net interest income by 4.2%, mainly due to reduced earning assets and escalated funding costs, contributed to this decrease. However, noninterest income showed improvement, increasing by 6.1% owing to higher investment banking and trading income, which somewhat offset lower lending-related fees.
Noninterest expenses were significantly lower at $2.95 billion compared to $9.56 billion in the previous quarter, primarily due to a goodwill impairment. Adjusted for special items, expenses rose slightly by $20 million, or 0.7%.
Capital and Liquidity
The Common Equity Tier 1 (CET1) ratio maintained a strong level at 10.1%, supported by organic capital generation and optimization of Risk Weighted Assets (RWA), although somewhat offset by the phase-in of the Current Expected Credit Loss (CECL) standard. Truist's liquidity coverage ratio (LCR) also remained robust at 115%.
Asset Quality and Loan Performance
Asset quality at Truist remains solid with nonperforming assets and loans 90 days or more past due holding steady. The allowance for loan and lease losses (ALLL) ratio saw a slight increase to 1.56%. Notably, the net charge-off ratio increased to 0.64% from 0.57% in the fourth quarter, indicative of a slight rise in credit losses.
Operational Highlights
Average loans and leases held for investment decreased by 1.3%, influenced by reductions in consumer and commercial and industrial portfolios. Similarly, average deposits fell by 1.6%, driven by declines in non-interest bearing and money market and savings deposits.
Future Outlook and Strategic Moves
Truist's CEO, Bill Rogers, expressed optimism about the bank's trajectory, emphasizing the strategic sale of Truist Insurance Holdings (TIH), set to finalize in the second quarter of 2024. This sale is expected to bolster Truist's capital position, potentially leading to a reevaluation of the bank's balance sheet and consideration of returning capital to shareholders later in the year.
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