10:14 AM EDT, 07/22/2024 (MT Newswires) -- Truist Financial's ( TFC ) second-quarter results fell year over year as an accounting gain on the sale of a unit was countered by securities losses.

Adjusted earnings dropped to $0.91 a share for the June quarter from $0.92 the year before, but surpassed the Capital IQ-polled consensus for $0.83. On a GAAP basis, net income declined to $0.62 per share from $0.92 last year. The result included a $6.9 billion gain from the sale of the company's remaining stake in Truist Insurance brokerage and $6.7 billion in securities losses.

"We utilized a portion of the capital created from the sale of (Truist Insurance Holdings) to reposition our balance sheet, which is expected to replace TIH's earnings contribution, creates additional liquidity and improves our interest rate risk profile," Chief Executive Bill Rogers said in a statement.

Overall revenue turned negative, falling by $6.5 billion mainly due to the securities losses, according to Truist. Adjusted revenue came in at $5.02 billion, up 3% sequentially but reflecting a 0.4% decrease from a year ago, the company said in an earnings presentation.

Net interest income declined 2.1% to $3.58 billion, impacted by higher funding costs and lower earning assets. Noninterest income fell to a negative $5.21 billion reading from positive $1.38 billion last year due to losses on securities sold.

Average loan and leases held for investment fell to about $306 billion from $326 billion year-on-year, according to the presentation. Average deposits slipped to $388 billion from $400 billion in the prior-year period.

Truist expects 2024 adjusted revenue on a taxable equivalent basis to be down about 0.5% to 1%, compared with a 0.5% to 1.5% drop projected in May.

For the ongoing three-month period, Truist expects adjusted revenue to increase 1% to 2% sequentially, according to the presentation. The company estimates adjusted expenses to rise by 3%.

"In addition, our board authorized the repurchase of up to $5 billion of shares of our common stock through the end of 2026 with repurchases expected to begin during the third quarter," Rogers said.

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