(Reuters) - Truist Financial (NYSE:TFC) on Friday exceeded Wall Street estimates for fourth-quarter profit, helped by stronger investment banking and trading activity as capital markets strengthened.
A resilient economy, declining interest rates and expectations of relaxed regulations under the Trump administration have boosted corporate enthusiasm for mergers and acquisitions.
Equity and debt issuance also surged in the latter half of 2024.
Charlotte, North Carolina-based Truist's shares rose nearly 3% in premarket trading on Friday.
The bank's performance aligns with that of larger competitors such as JPMorgan Chase (NYSE:JPM), Morgan Stanley (NYSE:MS) and Wells Fargo (NYSE:WFC), which exceeded their quarterly profit forecasts on the back of investment banking gains.
Truist's investment banking and trading income increased by 58.8% to $262 million in the fourth quarter from a year ago. However, it was down 21.1% from the previous quarter.
The bank's net interest income, or the difference between what a bank earns on loans and pays out on deposits, rose nearly 2% to $3.64 billion.
Net interest margin, which measures lending profitability, expanded to 3.07%, compared with 2.95% a year earlier.
Truist's quarterly adjusted net income available to common shareholders was $1.21 billion, or 91 cents per share, surpassing estimates of $1.18 billion, or 88 cents, according to estimates compiled by LSEG.
Provision for credit losses declined by nearly 18% in the quarter.
For fiscal 2025, Truist expects its adjusted revenue to rise between 3% and 3.5%, compared with 2024.