Core Insights - Truist Financial Corporation reported its second quarter 2024 results, with a live earnings call accessible to investors [1] - The company is a leading U.S. commercial bank with a strong market presence in high-growth areas [2] - As of June 30, 2024, Truist has total assets amounting to $520 billion [2] Company Overview - Truist is a purpose-driven financial services company focused on improving lives and communities [2] - The bank offers a diverse range of products and services, including consumer banking, commercial banking, corporate and investment banking, wealth management, payments, and specialized lending [2] - Truist is headquartered in Charlotte, North Carolina, and ranks among the top-10 commercial banks in the U.S. [2]

Core Viewpoint - Truist Financial Corporation (TFC) has shown mixed results in recent quarters, with a significant recovery in stock price since the banking crisis in 2023, but still faces challenges related to its merger and operational issues [1][21][22]. Financial Performance - Truist's quarterly earnings surprises have been inconsistent, with 2023 showing negative surprises of -5%, -10%, +2%, and -10%, while Q1 2024 saw a positive surprise of 12% above consensus [2][3]. - The current quarterly estimate for Truist is $0.83 per share with total revenues expected to be $4.8 billion [3]. Key Metrics - Truist's net interest margin (NIM) has been disappointing since the merger of BB&T and SunTrust, attributed to rising deposit costs and a competitive loan market [3][4]. - Average total deposits at Truist fell by 4.75% from Q1 2023 to Q1 2024, while U.S. Bancorp's deposits only decreased by 1.42%, indicating a weaker position for Truist [5][16]. - Charge-offs have remained in line with national trends, and current levels are comparable to those seen in the 1990s and early 2000s [19]. Market Position and Competitiveness - Truist is currently the 8th largest regional bank in the U.S. with consolidated assets of $527 billion, but continues to lag behind larger competitors like U.S. Bancorp in terms of loan and deposit growth [21]. - The bank's decision not to increase its dividend after the 2024 stress test results contrasts with U.S. Bancorp's plans to raise its payout, reflecting a more conservative approach by Truist management [22]. Future Outlook - The market is cautiously optimistic about Truist's potential for deposit growth, especially following U.S. Bancorp's positive results, but concerns remain about the bank's operational efficiency and management's ability to deliver on promises [21][23]. - The Federal Reserve's Bank Term Funding Program (BTFP) has provided some stability, but the potential mark-to-market losses in Truist's held-to-maturity portfolio remain a theoretical risk rather than a practical one [20].

Core Viewpoint - The financial outlook for Truist Financial Corporation (TFC) indicates a challenging environment with expected declines in net interest income and average loan balances, while certain segments like investment banking are projected to show growth. Group 1: Loan Demand and Interest Income - Demand for commercial and industrial loans was modest, accounting for roughly 50% of TFC's total loans and leases held for investment, while consumer loan demand was subdued, representing almost 40% of total loans [1] - The consensus estimate for net interest income (NII) is pegged at $3.5 billion, indicating a 4.7% year-over-year decline [3] - Management expects average loan balances to decline modestly, projecting average loans of $308.9 billion, which reflects a 5.9% fall from the prior-year quarter [18] Group 2: Non-Interest Income and Fees - The consensus estimate for total non-interest income is pegged at $1.43 billion, indicating a 3.7% growth from the prior-year quarter [6] - A rebound in the capital markets business is expected to support TFC's fee income, with an estimated investment banking and trading income of $296.5 million, suggesting a 40.5% jump [4] - The Zacks Consensus Estimate for card and payment-related fees is $216.9 million, indicating an 8.1% decline [5] Group 3: Expenses and Asset Quality - Management expects adjusted expenses to rise by 4% sequentially due to higher professional fees and marketing costs [8] - The consensus estimate for non-performing assets is pegged at $1.75 billion, indicating a rise of 26.1% [9] - The estimate for provision for credit losses is pegged at $525.5 million, reflecting concerns over potential bad loans [26] Group 4: Major Developments - Truist completed the sale of its remaining 80% stake in its insurance subsidiary, resulting in after-tax cash proceeds of approximately $10.1 billion and an after-tax gain of $4.7 billion [27] - Following the divestiture, TFC executed a balance sheet repositioning strategy, selling $27.7 billion worth of lower-yielding investment securities [11] - The balance sheet repositioning generated $29.3 billion available for reinvestment, despite resulting in an after-tax loss of $5.1 billion in the upcoming quarter [28] Group 5: Earnings Estimates - The Zacks Consensus Estimate for TFC's second-quarter earnings is 78 cents per share, indicating a decline of 17.9% from the year-ago reported number [30] - The consensus estimate for sales is pegged at $4.86 billion, suggesting a year-over-year fall of 17.8% [14] - Management expects total revenues (FTE) to increase by 1% sequentially, influenced by interest income from the sale proceeds and balance sheet repositioning [36]

Earnings Expectations for Truist Financial - Truist Financial is expected to report quarterly earnings of $0.78 per share, reflecting a year-over-year decline of 17.9% [2] - Revenues are anticipated to be $4.86 billion, down 17.8% from the same quarter last year [18] - The Most Accurate Estimate for Truist Financial is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.72%, indicating a bearish outlook from analysts [6] Estimate Revisions and Predictions - The consensus EPS estimate has been revised 1.64% higher over the last 30 days, suggesting a reassessment by covering analysts [3] - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [5] - Truist Financial currently holds a Zacks Rank of 3, making it difficult to predict a definitive earnings beat [22][28] Earnings Surprise History - Over the last four quarters, Truist Financial has beaten consensus EPS estimates two times [24] - The company's previous quarter saw an earnings surprise of +15.38%, with actual earnings of $0.90 per share against an expectation of $0.78 [13] Comparison with BankUnited - BankUnited is expected to report earnings of $0.65 per share for the same quarter, indicating a year-over-year change of -16.7% [27] - BankUnited's revenues are projected to be $243.8 million, up 1.9% from the previous year [27] - BankUnited has an Earnings ESP of 0.00% and a Zacks Rank of 3, making it similarly challenging to predict an earnings beat [15][28]

CHARLOTTE, N.C., June 28, 2024 /PRNewswire/ -- Truist Financial Corporation (NYSE: TFC) today released the results of its annual company-run stress test, conducted in accordance with the regulations of the Board of Governors of the Federal Reserve System ("Federal Reserve") and the Federal Deposit Insurance Corporation, under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The results are available online at https://IR.Truist.com/other-filings. Truist announced that the Federal Reserve has de ...

Core Viewpoint - Truist Financial (TFC) is expected to experience continued top-line growth driven by strong loan demand, high interest rates, strategic restructuring initiatives, and efforts to enhance fee income [1] Financial Performance - Over the past year, TFC shares have increased by 23.5%, while the industry has grown by 32.6% [2] - TFC's net interest income saw a five-year compound annual growth rate (CAGR) of 16.9% until 2023, despite a decline in 2021 and the first quarter of 2024 [3] - The net interest margin (NIM) improved from 2.86% in 2021 to 3.01% in 2022, with a slight decline to 3.00% in Q1 2024; projected NIMs are 2.94%, 3.03%, and 3.10% for 2024, 2025, and 2026 respectively [4] Revenue Sources - Non-interest revenue sources experienced a five-year CAGR of 12.5% from 2018 to 2023, driven by a merger deal and growth in wealth management and insurance [5] - Although total non-interest income is expected to decline in 2024 due to securities losses, significant growth is anticipated in 2025 [5] Strategic Initiatives - Truist is pursuing strategic business restructuring, including the sale of an 80% stake in Truist Insurance Holdings for $1.95 billion and the acquisition of Service Finance Company to enhance its lending business [6] Expense Management - TFC's expenses have grown at a CAGR of 25.4% from 2018 to 2023, primarily due to rising personnel costs and digitization efforts [7] - Despite a year-over-year decline in Q1 2024 expenses and a strategic program expected to yield $750 million in gross savings, overall costs are projected to remain high due to technology investments [7] Asset Quality - Truist's asset quality has been declining, with provisions for credit losses showing a CAGR of 30.1% over the past five years; an increase in provisions is expected in the near term, with a projected rise of 4.3% this year [8]

Core Insights - Jobs for the Future (JFF) has partnered with Truist Foundation to enhance economic mobility and advancement opportunities for learners and workers in Southern states, Ohio, and Pennsylvania through a $4.2 million investment [1][4][10] Group 1: Partnership and Investment - The partnership will support two initiatives aimed at creating equitable pathways to high-wage, high-growth careers via postsecondary education and workforce training programs [1][4] - The investment will focus on community colleges in Georgia, North Carolina, Pennsylvania, and Ohio, targeting regions with high concentrations of learners facing economic mobility barriers [4][8] Group 2: Program Objectives - JFF will assist participating colleges in analyzing learner outcomes and experiences to design interventions that promote access and success in career pathways [4][9] - The initiatives aim to train 180 workers over two years in tech roles such as data analytics and cybersecurity, specifically for low-to-moderate-income individuals and those from underprivileged backgrounds [9][10] Group 3: Long-term Goals - JFF's initiatives align with its 10-year goal of helping 75 million people facing systemic barriers to advance into quality jobs [10] - The organization has a history of collaborating with various stakeholders to design solutions, scale best practices, and influence policy for equitable economic advancement [10][11]

CHARLOTTE, N.C., June 20, 2024 /PRNewswire/ -- Truist Financial Corporation (NYSE: TFC) will report second-quarter 2024 financial results before the market opens on Monday, July 22, 2024. Chairman and Chief Executive Officer Bill Rogers and Chief Financial Officer Mike Maguire will host a conference call to review the company's financial results at 8 a.m. ET. Investors can access the live earnings call by webcast or dial-in as follows: Live webcast for listeners: https://app.webinar.net/zVb4RPwq23Q Dial-in ...

Core Viewpoint - Truist has faced challenges in executing the SunTrust merger and has been losing organic market share in key markets, leading to underperformance compared to peers. However, there is potential for recovery and growth following the sale of its insurance business, which has provided capital for repositioning the balance sheet and improving yields [1][2][6]. Financial Performance - Truist's shares have lagged behind peers by approximately 10% since the last update, over 15% in the last five years, and 35% over the last ten years [1]. - The sale of the insurance business was executed at a decent price of 18x trailing EBITDA, generating over $10 billion in after-tax proceeds, which will be used to absorb losses and reposition the balance sheet [2]. - The bank sold nearly $28 billion in lower-yielding securities with a yield of 2.8% and purchased $18.7 billion in higher-yielding securities at 5.3%, which is expected to drive around $1.1 billion in net interest income leverage [2]. Strategic Direction - Management has indicated a focus on improving core banking operations and addressing the challenges of integrating the SunTrust merger, which has historically been difficult [6][8]. - The bank's management has expressed optimism about future growth opportunities, particularly in the Southeastern markets, despite recent losses in market share [9][10]. Growth Opportunities - Truist is expected to benefit from ongoing repricing in a higher interest rate environment, with higher-yielding loans being added to the portfolio [11]. - There are opportunities for Truist to expand lending as the economy recovers, and the bank is positioned to invest in non-banking growth opportunities, including capital markets and payments businesses [11]. Market Position - Truist has been losing organic market share in key markets such as Atlanta, Miami, and Nashville, while facing competition from smaller banks [9]. - Despite losing deposit share, Truist has maintained a strong efficiency ratio of around 59%, which compares favorably to peers [10].

Bill Gross became a legend by investing in bonds but has a strong opinion on one stock, too. -- Bill Gross (@real_bill_gross) February 26, 2024 Nearly one month later, Gross changed his tune about one regional bank stock. He singled out Truist Financial (TFC -0.06%) in an investment-outlook update posted on his website. Gross said about the stock, "Be exuberant in a month or so." It's now been a little over two months since Gross wrote those words, and Truist's share price is barely in positive territory ye ...