Core Insights - Sheffield Financial has formed a national partnership with Scarab to provide competitive financing options for Scarab's high-performance jet-powered boats [1][3] - The collaboration aims to enhance the boat buying experience by leveraging Sheffield's 32 years of consumer financing expertise and Scarab's extensive dealer network [2][3] Company Overview - Sheffield Financial, a division of Truist Bank, specializes in fast and flexible retail financing across various industries, including marine and powersports, and has financed millions of customers in the USA [4] - Truist Financial Corporation is a leading U.S. commercial bank with total assets of $531 billion as of December 31, 2024, offering a wide range of financial services [5] Product and Service Features - The partnership will utilize Sheffield's advanced prequalification technology, allowing customers to check financing eligibility without affecting their credit score, thus streamlining the purchasing process [2][3] - Scarab boats, powered by Rotax® engines, are designed for performance and recreational activities, featuring models ranging from 16 to 28 feet [6]

Shares of Truist Financial Corporation (NYSE: TFC ) surged 6% on Friday after the financial institution reported better-than-expected results for its fourth fiscal quarter, mainly due to higher investment banking and trading-related fees. Truist Financial saw an improving credit trend in theI look for high-risk, high-reward situations, mainly in the technology markets. I am an early buyer of Bitcoin and my portfolio mainly focused on companies with asymmetric long-term upside. My top holdings include: Bitco ...

Truist Financial Corporation (NYSE:TFC) Q4 2024 Earnings Conference Call January 17, 2025 8:00 AM ET Company Participants Brad Milsaps - IR Bill Rogers - Chairman and CEO Mike Maguire - CFO Conference Call Participants Scott Siefers - Piper Sandler Ebrahim Poonawala - Bank of America Matt O'Connor - Deutsche Bank Erika Najarian - UBS Betsy Graseck - Morgan Stanley John Pancari - Evercore Saul Martinez - HSBC Mike Mayo - Wells Fargo Gerard Cassidy - RBC Operator Greetings, ladies and gentlemen, and welcome t ...

Earnings Call Overview - Truist Financial Corporation held its Q4 2024 earnings conference call on January 17, 2025, at 8:00 AM ET [1] - The call included participation from Chairman and CEO Bill Rogers, CFO Mike Maguire, and Chief Risk Officer Brad Bender, along with other senior management members [4] - The discussion focused on Q4 2024 results, current business conditions, and the 2025 outlook [4] Presentation Details - The presentation included forward-looking statements and non-GAAP financial measures, with disclosures available on Slides 2 and 3 of the accompanying presentation [5] - Supplemental financial information and the earnings release were accessible on the Truist Investor Relations website [4] Participants - Key participants included Brad Milsaps (IR), Bill Rogers (Chairman and CEO), Mike Maguire (CFO), and Brad Bender (Chief Risk Officer) [4] - Analysts from major financial institutions such as Piper Sandler, Bank of America, Deutsche Bank, UBS, Morgan Stanley, Evercore, HSBC, Wells Fargo, and RBC were present [1]

Earnings Performance - Truist Financial's Q4 2024 adjusted earnings per share of $0.91 surpassed the Zacks Consensus Estimate of $0.87, marking a 12.3% YoY increase [1] - Adjusted earnings for 2024 were $3.69 per share, beating the Zacks Consensus Estimate by $0.01 [3] - Net income available to common shareholders (GAAP basis) was $1.22 billion in Q4 2024, compared to a loss of $5.17 billion in the prior-year quarter [3] - Full-year 2024 net income available to common shareholders (GAAP basis) was $4.47 billion, a significant improvement from a net loss of $1.45 billion in the previous year [3] Revenue and Expenses - Q4 2024 total revenues of $5.06 billion grew 3.6% YoY, beating the Zacks Consensus Estimate of $5 billion [4] - Full-year 2024 revenues were $13.28 billion, down 33.7% YoY and lagging the Zacks Consensus Estimate of $19.87 billion [4] - Tax-equivalent net interest income (NII) increased 1.8% to $3.64 billion in Q4 2024, driven by balance sheet repositioning [4] - Non-interest income rose 7.9% to $1.47 billion in Q4 2024, driven by higher investment banking, trading income, mortgage banking income, and service charges [5] - Non-interest expenses were $3.04 billion in Q4 2024, down 68.2% YoY, but adjusted non-interest expenses rose 7.6% to $3.03 billion [6] Credit Quality and Provisions - Net charge-offs were 0.59% of average loans and leases in Q4 2024, up 2 bps YoY [8] - The allowance for loan and lease losses was 1.59% of total loans and leases held for investment, increasing 5 bps YoY [8] - Provision for credit losses was $471 million in Q4 2024, down 17.7% from the prior-year quarter [8] - Total non-performing assets (NPAs) were $1.48 billion as of Dec 31, 2024, down marginally [9] Profitability and Capital Ratios - Return on average common equity improved to 8.4% in Q4 2024, compared to a negative 36.6% in Q4 2023 [10] - Tier 1 risk-based capital ratio was 12.9% as of Dec 31, 2024, up from 11.6% in the prior-year quarter [10] - Common equity Tier 1 ratio was 11.5% as of Dec 31, 2024, up from 10.1% as of Dec 31, 2023 [10] Share Repurchases - Truist Financial repurchased shares worth $500 million during Q4 2024 [11] Peer Performance - Wells Fargo reported Q4 2024 adjusted earnings per share of $1.42, surpassing the Zacks Consensus Estimate of $1.34 and up from $1.29 in the prior-year quarter [13] - JPMorgan's Q4 2024 earnings per share were $4.81, significantly surpassing the Zacks Consensus Estimate of $4.03 [14]

Earnings Performance and Strategic Initiatives - Truist Financial reported its Q4 and full-year 2024 earnings, highlighting efforts to address digital disruption and evolving consumer expectations in modern banking [1] - Adjusted noninterest expenses rose 4% quarter-over-quarter, driven by higher professional fees and technology-related costs, but achieved a 0.4% year-over-year reduction in adjusted expenses [2] - The bank exceeded analyst estimates for the quarter and issued Q1 2025 guidance, leading to a 5% stock price increase [3] Digital Transformation and Customer Engagement - Truist enhanced its digital offerings for wholesale banking clients, including electronic bill presentment, to align with evolving customer needs [4] - The bank integrated technology into consumer and wholesale banking operations, with tools like Truist One View simplifying user experiences and providing actionable insights [5] - By Q4 2024, Truist had over 5 million active mobile app users, a 1% increase from the prior quarter, with users averaging 18 log-ins per month [6] Growth in Digital Adoption and Demographic Shifts - Digital account production increased by 13% year-over-year, and new household acquisition grew by 31%, driven by younger clients [7] - Generation Z accounted for a 68% year-over-year increase in consumer checking accounts, reflecting the bank's strategy to cultivate long-term relationships with younger clients [7] - Consumer deposit balances for digitally opened accounts grew 80% year-over-year, with 40% of these balances held by Gen Z and millennial clients [8] Financial Performance and Future Outlook - Net interest income for Q4 decreased by 0.4% compared to Q3 2024, reflecting lower investment banking and trading income [9] - Truist aims to expand in high-growth markets, drive positive operating leverage, and maintain risk discipline and capital efficiency in 2025 [10] Competitive Landscape and Industry Challenges - The banking industry faces increased competition from FinTech disruptors and a shifting regulatory environment, but Truist delivered positive operating leverage and maintained financial stability [5] - Rising costs in professional fees and technology investments highlight the need to balance growth with cost efficiency [9]

Investment Strategy - The strategy focuses on a dividend-oriented value approach, emphasizing capital preservation and steadily growing income [1] - The portfolio consists of high-quality value stocks that offer meaningful growth and long-term safety [1] Portfolio Composition - The portfolio is diversified and includes stocks that the author holds, with a focus on dividend-paying value stocks [1] Author's Position - The author holds a beneficial long position in TFC and USB through stock ownership, options, or other derivatives [2]

For the quarter ended December 2024, Truist Financial Corporation (TFC) reported revenue of $5.06 billion, down 11.2% over the same period last year. EPS came in at $0.91, compared to $0.81 in the year-ago quarter.The reported revenue represents a surprise of +1.13% over the Zacks Consensus Estimate of $5 billion. With the consensus EPS estimate being $0.87, the EPS surprise was +4.60%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to ...

Earnings and Revenue Performance - Truist Financial's Q4 2024 adjusted diluted EPS of $0.91 beat analysts' estimate of $0.88, representing a 12.3% YoY increase [1][3] - Revenue for Q4 2024 reached $5.11 billion, exceeding the expected $5.04 billion and showing a 3.4% YoY growth [1][3] - Net interest income increased by 1.7% YoY to $3.64 billion, while noninterest income rose 7.9% YoY, driven by investment banking and trading revenue [3][6] Expense Management and Profitability - Noninterest expenses increased by 3.7% QoQ and 4% on an adjusted basis, reflecting higher technology and risk infrastructure investments [7] - The net interest margin (NIM) decreased by five basis points QoQ, indicating potential pressure from anticipated rate changes [7] - Management expects adjusted expenses to decrease by 3% in Q1 2025 compared to Q4 2024, with full-year 2025 adjusted expense growth projected at up to 1.5% [10][11] Lending and Asset Quality - Average loans and leases held for investment remained flat, with consumer loans growing 1.2% while commercial loans declined 0.8% [8] - Residential mortgages and auto loans showed growth, offsetting declines in commercial industrial and real estate portfolios [8] - The CET1 ratio improved to 11.5%, up 1.4 percentage points YoY, reflecting strong capitalization [3][8] Strategic Focus and Outlook - Truist Financial maintains a strong market position in high-growth regions like Florida and Georgia, with a focus on digital innovation and technological development [4] - The company plans $500 million in share repurchases for Q4 2024 and aims to enhance digital services to attract new clients [9][11] - Management projects 2025 adjusted revenue growth of 3% to 3.5% and a net charge-off ratio of 60 bps, with cautious optimism for profitability [10][11] Regulatory and Competitive Environment - As a Category III banking organization, Truist faces enhanced prudential standards and capital requirements, which are critical for sustaining operations and strategic expansions [5] - The company continues to navigate a complex regulatory environment while maintaining disciplined capital management and exploring potential mergers and acquisitions [5][12]

Earnings Performance - Truist Financial reported quarterly earnings of $0.91 per share, beating the Zacks Consensus Estimate of $0.87 per share, representing a 4.60% earnings surprise [1] - This compares to earnings of $0.81 per share a year ago [1] - In the previous quarter, the company posted earnings of $0.97 per share, surpassing the expected $0.89 per share, with an 8.99% surprise [1] - Over the last four quarters, the company has consistently surpassed consensus EPS estimates [2] Revenue Performance - Truist Financial reported revenues of $5.06 billion for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 1.13% [2] - This compares to year-ago revenues of $5.7 billion [2] - The company has topped consensus revenue estimates three times over the last four quarters [2] Stock Performance - Truist Financial shares have gained approximately 3.7% since the beginning of the year, outperforming the S&P 500's gain of 1% [3] - The stock's immediate price movement will depend on management's commentary during the earnings call [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.86 on $5 billion in revenues [7] - For the current fiscal year, the consensus EPS estimate is $3.87 on $20.53 billion in revenues [7] - The estimate revisions trend for Truist Financial is mixed, resulting in a Zacks Rank 3 (Hold) [6] Industry Context - Truist Financial belongs to the Zacks Banks - Major Regional industry, which is currently in the top 26% of the 250 plus Zacks industries [8] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8] Peer Comparison - BankUnited, Inc (BKU), another company in the same industry, is expected to report quarterly earnings of $0.71 per share, representing a year-over-year change of -1.4% [9] - BankUnited's revenues are expected to be $259.7 million, up 10.8% from the year-ago quarter [9] - The consensus EPS estimate for BankUnited has remained unchanged over the last 30 days [9]