Truist first-quarter profit up 6.1%

Truist Financial Corp. Thursday reported first-quarter net income of $1.41 billion, up 6.1% from the first quarter of 2022.

Overall revenue rose 15% to $6.15 billion.

Insurance income was up $47 million, or 6.1%, to $813 million, and organic growth was 4.7% for the quarter, mainly due to “seasonality,” Truist Chief Financial Officer Mike Maguire said during the bank’s earnings call with analysts.

Insurance segment net income after taxes decreased 22.3% to $111 million. The segment’s net interest income surged to $14 million from $3 million in the first quarter of 2022.

Insurance income is expected to be seasonally stronger in the second quarter, Mr. Maguire said.

On April 3, Truist closed the sale of 20% of its insurance unit to private equity firm Stone Point Capital LLC. The $1.95 billion deal valued the unit at $14.75 billion.

Going forward, expenses are expected to rise some 1% to 2% as a result of higher incentive-based compensation, Mr. Maguire said. There will also be some one-time costs associated with the insurance unit “transitioning to a more independent operating model consistent with its new capital structure.”