July 17 (Reuters) – Truist Financial reported a higher quarterly profit on Friday, as a rebound in capital markets activity helped boost earnings from investment banking, while volatility fueled trading desks.
Across the industry, banks have reaped gains from a revival in dealmaking that has bolstered lucrative advisory fees, while heightened market volatility has fueled client activity across their trading desks.
Here are some details:
• Truist’s investment banking and trading income climbed nearly 72% in the three months ended June 30 from a year earlier.
• Shares of the bank rose 1.9% in premarket trading.
• Banks expect more gains ahead, with executives pointing to healthy pipelines and strong backlogs for the second half, fueling expectations that the investment banking “super cycle” has more room to run.
• Meanwhile, global markets remain volatile as the interest rate trajectory remains uncertain, geopolitical tensions linger and AI-driven tech jitters persist — an environment that typically keeps trading desks humming.
• “We continued to deepen client relationships, grow in attractive markets, and improve operating efficiency and profitability,” Truist CEO Bill Rogers said.
• The bank’s wealth management income for the second quarter also increased 7.8%.
• Truist’s quarterly net income available to common shareholders came in at $1.52 billion or $1.23 per share, above last year’s $1.18 billion or 90 cents per share.
(Reporting by Manya Saini in Bengaluru; Editing by Diti Pujara)
