April 17 (Reuters) - U.S. bank Truist Financial posted a rise in first-quarter profit on Friday, thanks to solid growth in investment banking fees and trading, while interest income also increased.
Investment banking fees have climbed across the industry as companies continue to pursue dealmaking plans, betting that bouts of market volatility will be short-lived and unlikely to derail strategic transactions.
Those choppy conditions in global markets, driven by an artificial intelligence-led selloff
in tech stocks and turmoil in the Middle East, have lifted trading desks, which have seen a surge in client activity as investors reposition portfolios and hedge against new risks.
Truist reported a 36.3% rise in its investment banking and trading income. Its non-interest income came in at $1.55 billion during the quarter, compared with $1.39 billion a year earlier.
"We continued to build new client relationships, grow in attractive markets and generate high-quality loan and deposit growth that is translating into improved profitability," CEO Bill Rogers said in a statement.
Meanwhile, a pickup in borrowing by both companies and consumers is lifting loan demand across the industry, supporting lending margins that remain a key driver of profits at U.S. banks.
Truist, the ninth-largest U.S. bank by assets, reported a 2.5% rise in its net interest income to $3.64 billion during the first quarter.
The bank's net income available to common shareholders stood at $1.38 billion, or $1.09 per share, during the three months ended March 31. That compares with $1.16 billion, or 87 cents per share, a year earlier.
The results mirror trends at Wall Street heavyweights JPMorgan Chase, Bank of America and Citigroup, which also reported higher first-quarter profits, driven by gains in interest income, trading and investment banking fees.
(Reporting by Manya Saini in Bengaluru; Editing by Shilpi Majumdar)
