(Reuters) - Truist Financial (NYSE:TFC) reported a 33% drop in second-quarter profit on Monday, dragged down by a $5.1 billion loss on the sale of some securities and lower net interest income (NII).
The bank's results mirror earnings at several lenders, which have seen a decline in NII as high interest rates impede loan demand.
NII fell 2% to $3.58 billion. Average loans and leases decreased 6% from same quarter last year, Truist said.
The bank in May sold a portfolio of low-yielding securities to focus on better alternatives, leading to an after-tax loss of $5.1 billion, in a move that it said would help push its 2024 revenue higher than previously forecast.
Its second-quarter profit was also dragged down by a $150 million charitable contribution and restructuring charges of $96 million, partly offset by a gain from the sale of its insurance business, the bank said.
Net income available to common shareholders fell to $826 million, or 62 cents per share, for the quarter ended June. That compares with $1.23 billion, or 92 cents per share, in the year-ago period.
Truist's shares fell nearly 1% in premarket trading.