Truist Offers a Mix of Common and Preferred Shares for Income and Upside
The article reviews Truist Financial after Q3 results, separating non-recurring items from normalized earnings of $1.16 per share, or roughly $4.75 annualized. It highlights the Series R preferred shares’ 7.16% stripped yield and potential price gains if rates fall. Despite balance-sheet pressure from held-to-maturity securities, it sees attractive risk/reward in both the common and preferred shares.
Truist Financial’s third-quarter reported profit was $0.57 per share, a result affected by one-time losses from portfolio repositioning and a reversal of provisions. Excluding those items, adjusted earnings came to $1.16 per share, or about $4.75 per share on an annualized basis.
The article also discusses Truist’s Series R preferred stock, which has a 7.16% stripped yield and could gain in price if interest rates decline. Securities held to maturity remain a balance-sheet burden, but the piece sees a favorable balance of risk and potential return in both the common and preferred shares.
Truist’s earnings mix and rate-sensitive preferred shares could matter to retail and business customers, income-focused investors, and employees. If balance-sheet pressures from held-to-maturity securities limit flexibility, lending conditions or deposit pricing may be affected, though the article’s normalized earnings view suggests resilience. Investors seeking steady income may weigh the preferred yield against rate risk, while common shareholders remain exposed to execution and market conditions. Broader community effects may depend on how the bank manages capital and credit through changing rates.