Truist Earnings: Expense Control Is Working and Near-Term Capital Flexibility Is Crucial to Growth

Narrow-moat-rated Truist reported net income to common shareholders of around $1.1 billion, or $0.81 per diluted share, on $4.9 billion of net revenue. An incremental $75 million FDIC special assessment charge related to the FDIC increasing its estimated loss from the March 2023 banking events, restructuring charges, and the acceleration of inventive compensation for Truist Insurance Holdings reduced earnings per share by 16%. We do not anticipate a material change to our $50 per share fair value estimate from more information regarding the sale of TIH and continue to view shares as undervalued.