Truist Financial said its first-quarter profit rose as investment banking fees and trading revenues climbed, supported by a modest increase in interest income. The bank cited stronger client activity amid recent market turbulence as a contributor to expanded non-interest revenue.
Investment banking and trading income increased 36.3% in the quarter. Overall non-interest income was $1.55 billion, up from $1.39 billion a year earlier. The bank said that continued dealmaking across the industry, despite bouts of volatility, has lifted investment banking fees as companies pursue strategic transactions.
Truist noted that choppy global markets - influenced by an artificial intelligence-led selloff in technology stocks and turmoil in the Middle East - have heightened client trading activity. Trading desks have benefited from investors repositioning portfolios and hedging against new risks, contributing to the quarter's revenue gains from trading.
Net interest income rose 2.5% to $3.64 billion in the first quarter, reflecting a pickup in borrowing by both corporate and consumer customers. Truist described growing loan demand as supporting lending margins, which remain an important driver of profitability for U.S. banks.
For the three months ended March 31, net income available to common shareholders was $1.38 billion, or $1.09 per share, compared with $1.16 billion, or $0.87 per share, in the year-earlier period. The bank is the ninth-largest U.S. bank by assets.
In a statement, chief executive Bill Rogers said the company continued to build new client relationships, expand in attractive markets and generate high-quality loan and deposit growth that is translating into improved profitability.
Truist's results align with trends reported by larger Wall Street banks, including JPMorgan Chase, Bank of America and Citigroup, all of which recorded higher first-quarter profits driven by gains in interest income, trading and investment banking fees.
Overall, Truist's quarterly performance combined elevated non-interest revenue from deals and trading with steady loan-driven interest income, producing a year-over-year improvement in reported earnings per share.
Contextual note - Market conditions remain uneven. While firms are proceeding with strategic transactions on the view that volatility will be short lived, the same market dynamics that boost trading activity also create uncertainty for transaction timing and investor positioning.