Truist Financial Corp. reported Thursday first-quarter net income of $1.41 billion, up 6.1% from the first quarter of 2022.
Total revenue increased 15% to $6.15 billion.
Insurance revenue increased $47 million, or 6.1%, to $813 million, and organic growth was 4.7% for the quarter, primarily due to “seasonal effects,” Truist Chief Financial Officer Mike Maguire said during the bank’s earnings call with analysts.
The insurance segment’s net profit after tax decreased by 22.3% to USD 111 million. The segment’s net interest income rose to $14 million from $3 million in the first quarter of 2022.
Insurance revenue is expected to be seasonally stronger in the second quarter, Mr. Maguire.
On April 3, Truist completed the sale of 20% of its insurance unit to private equity firm Stone Point Capital LLC. The $1.95 billion deal valued the entity at $14.75 billion.
Going forward, costs are expected to rise by about 1% to 2% as a result of higher incentive-based compensation, Mr. Maguire. There will also be some one-time costs associated with the insurance entity “transitioning to a more independent operating model consistent with its new capital structure.”