09:11 AM EDT, 04/22/2024 (MT Newswires) -- Truist Financial's ( TFC ) first-quarter results declined annually with revenue missing market estimates, prompting the financial services company to lower its full-year bottom line outlook.

Revenue on a taxable equivalent basis is now set to be down about 4% to 5% for 2024, the company said in an investor presentation Monday, compared with previous projections for a 1% to 3% decrease. The guidance excludes interest income earned on proceeds from the proposed sale of Truist's remaining stake in insurance brokerage unit, Truist Insurance Holdings. The consensus on Capital IQ is for revenue of $22.39 billion for the year.

For the March quarter, adjusted earnings fell to $0.90 a share from $1.05, while the Street was looking for $0.80. On a GAAP basis, net income was $0.81, also down from a year ago as the company took a $75 million Federal Deposit Insurance Corp. assessment tied to bank failures last year, as well as restructuring charges of $70 million and $89 million from discontinued operations resulting from the planned Truist Insurance divestment.

Revenue dropped to $4.87 billion from $5.34 billion in the 2023 quarter, missing analysts' $5.7 billion forecast. Net interest income slipped 4.2% to $3.43 billion due to higher funding costs and lower earning assets. Noninterest income rose 1.8% to $1.45 billion, aided by higher investment banking and trading income, partially offset by lower mortgage banking income and service charges on deposits.

"Investments we have made in our investment banking business resulted in strong performance in improving markets," Chief Executive Bill Rogers said in a statement. "Loan demand was muted and deposit costs continue to be under pressure."

Average loan and leases held for investment fell to about $309 billion from $326 billion year-on-year, according to the presentation. Average deposits moved down to $389 billion from $408 billion in the prior-year period.

For the ongoing three-month period, Truist expects revenue to decrease roughly 2%, compared with the first quarter, the presentation showed, while the Street is looking for $6.55 billion. The company also estimates adjusted expenses to rise by about 4%.

The sale of Truist Insurance is "on track" to complete in the current quarter and will "strengthen our relative capital position," according to Rogers. The all-cash deal, which was agreed in February with a private equity investor group and values the unit at $15.5 billion, will allow the lender to "assess a potential balance sheet repositioning" and evaluate a potential share repurchase programs later in the year, subject to market conditions, the CEO added.