Truist Financial Corporation Conference Call Summary Company Overview - **Company**: Truist Financial Corporation (NYSE:TFC) - **Formation**: Result of the merger between SunTrust and BB&T in December 2019 - **Headquarters**: Charlotte, North Carolina - **Assets**: $520 billion - **Deposits**: $385 billion - **Market Share**: Top 5 market share in 23 out of 25 largest MSAs [1] Core Financial Metrics - **ROTCE Target**: Mid-teens medium-term ROTCE target, up from a starting point of 12% to 13% [2] - **Revenue Composition**: 54% from consumer and small business banking, 46% from wholesale banking [7] - **Deposit Base**: $211 billion in consumer and small business deposits with a leading efficiency ratio of 51% [10] Strategic Focus and Values - **Purpose**: To inspire and build better lives and communities [5] - **Core Values**: Emphasis on caring for clients and achieving success for clients and shareholders [6] - **Market Position**: Positioned in 17 of the fastest-growing markets in the U.S. with a strong deposit share of 20% in those markets [9] Growth and Performance - **Revenue Growth**: Revenue growing at a CAGR of 6%, with expenses decreasing at a CAGR of 6%, leading to a PPNR growth of 12% [12] - **Client Engagement**: 14 million clients with an average tenure of over 10 years [10] - **Digital Transactions**: 65% of transactions are now digital, with a goal to increase this further [27] Client Solutions and Products - **Truist One Account**: A leading deposit account that rewards clients for increased business [10] - **National Consumer Lending**: Includes Sheffield (powersports financing), Service Finance (home improvement), and LightStream (personal loans) [13][14][15] - **Auto Solutions**: Serving over 6,000 dealers with a strong position in both prime and subprime markets [16] Digital Strategy - **Digital Migration**: Focus on enhancing digital interactions, with 2.5 million daily digital logins [26] - **Truist Assist**: A virtual digital bot that resolves 86% of client inquiries, improving efficiency [28] - **Investment in Technology**: Enhancements in user experience and ID verification for account openings [41][42] Consumer and Small Business Banking - **Deposit Growth**: Focus on granular core stable deposit business, with a primacy ratio of 82% [21][23] - **Deepening Relationships**: Emphasis on deepening existing client relationships as a key growth opportunity [24] - **Client Solutions Delivered**: Up 50% compared to 2022, with a CAGR of 14% [25] Credit and Risk Management - **Consumer Portfolio Health**: Optimistic outlook due to strong employment and liquidity positions, though some stress observed in lower-income segments [43] - **Small Business Outlook**: Neutral stance due to contracting margins and profitability concerns [43] Challenges and Market Position - **Revenue Growth Concerns**: Despite strong franchise attributes, revenue growth has been average, with a focus on improving financial results [45] - **Market Share Dynamics**: Competing banks gaining share, but Truist is focused on net new accounts and primacy growth [46] Conclusion - **Strategic Focus**: Accelerating growth in priority markets, improving profitability through deepening client relationships, and activating capital while maintaining risk discipline [37] - **Future Outlook**: Commitment to achieving mid-teens ROTCE through focused execution of the three Ds: deposits, deepening, and digital [48]

Company Overview - Truist Financial Corporation was formed in December 2019 from the merger of SunTrust and BB&T, headquartered in Charlotte, North Carolina [1] - The company currently has assets totaling $520 billion and deposits of $385 billion, holding a top 5 market share in 23 out of its 25 largest Metropolitan Statistical Areas (MSAs) [1] Financial Targets - The company has set a medium-term Return on Tangible Common Equity (ROTCE) target in the mid-teens, an increase from a previous target range of 12% to 13% [2] Leadership and Operations - Donta Wilson, Head of Consumer and Small Business Banking, leads a team of 20,000 employees serving retail, premier, and small business clients through various channels including digital banking and over 1,900 community banking branches [2] - Wilson oversees core deposit and loan products, including mortgage, auto, and national consumer lending businesses, and is a member of the operating council [2]

Zacks Premium and Style Scores - Zacks Premium provides daily updates of Zacks Rank and Zacks Industry Rank, full access to Zacks 1 Rank List, Equity Research reports, and Premium stock screens to help investors make informed decisions [1] - Zacks Style Scores rate stocks based on value, growth, and momentum qualities, with A being the highest rating and F the lowest [2][3] - The Style Scores are divided into four categories: Value Score, Growth Score, Momentum Score, and VGM Score, which combines all three styles [3][4][5] Zacks Rank and Style Scores Integration - Zacks Rank uses earnings estimate revisions to rate stocks, with 1 (Strong Buy) stocks averaging a +25.41% annual return since 1988, outperforming the S&P 500 [6][7] - Over 800 stocks are rated as 1 (Strong Buy) or 2 (Buy) on any given day, making it challenging to select the best stocks [7][8] - Combining Zacks Rank 1 or 2 with Style Scores of A or B increases the likelihood of success, while stocks with 3 (Hold) rank should also have A or B scores for upside potential [8][9] Truist Financial Corporation (TFC) Analysis - Truist Financial, formed from the merger of BB&T Corp and SunTrust Banks, is one of the largest commercial banks in the US, headquartered in Charlotte, NC [10] - TFC has a Zacks Rank of 3 (Hold) and a VGM Score of B, with a Momentum Style Score of A and shares up 0.2% over the past four weeks [10][11] - Six analysts revised their earnings estimates higher for fiscal 2024, with the Zacks Consensus Estimate increasing by $0.14 to $3.69 per share and an average earnings surprise of 6.2% [11]

Financial Performance - Truist Financial Corporation reported a net interest income (NII) of $1.5 billion for the last quarter, reflecting a 10% increase year-over-year[6]. - The company achieved a net interest margin (NIM) of 3.2%, up from 2.9% in the previous year, indicating improved profitability on interest-earning assets[6]. - Net income for the three months ended September 30, 2024, was $1,442 million, up from $1,183 million in the same period of 2023, marking a growth of 22%[11]. - Basic earnings per share (EPS) for the three months ended September 30, 2024, was $1.00, compared to $0.80 for the same period in 2023, an increase of 25%[10]. - Truist reported total revenue of $2,388 million for the quarter, reflecting a 0.76% increase compared to the previous period[59]. - Segment net income from continuing operations for the three months ended September 30, 2024, was $1,439 million, compared to $1,109 million for the same period in 2023, showing a growth of 29.7%[166]. - For the nine months ended September 30, 2024, net interest income was $10,501 million, down from $11,005 million in the same period of 2023, reflecting a decrease of 4.6%[166]. - Segment net income from continuing operations for the nine months ended September 30, 2024, was $2,681 million, compared to $3,688 million for the same period in 2023, representing a decline of 27.3%[166]. Asset and Liability Management - Truist's total assets reached $500 billion, marking a 5% growth compared to the previous quarter[6]. - Total assets decreased to $523,434 million as of September 30, 2024, from $535,349 million at December 31, 2023, representing a decline of approximately 2.1%[9]. - Total liabilities decreased to $457,738 million as of September 30, 2024, from $476,096 million at December 31, 2023, a reduction of approximately 3.9%[9]. - Shareholders' equity increased to $65,696 million as of September 30, 2024, from $59,253 million at December 31, 2023, an increase of 10.7%[9]. - The company reported a total of $51,157 million in loans, down from $69,070 million, a decrease of about 26% year-over-year[42]. Credit Quality and Loan Performance - Truist's nonperforming loans (NPL) ratio improved to 0.5%, down from 0.7% a year ago, indicating better asset quality[6]. - The company reported a provision for credit losses of $448 million for the three months ended September 30, 2024, down from $497 million in the same period of 2023, a decrease of 9.8%[10]. - Nonperforming loans totaled $10,004 million, a significant increase from $6,647 million, indicating a rise of approximately 50.5%[42]. - The total amount of loans 30-89 days past due was $1,769 million, while loans 90 days or more past due totaled $518 million[39]. - The total for nonperforming consumer loans is $63 million, a decrease from $14 million in 2023[41]. Investments and Securities - The total available-for-sale (AFS) securities, excluding portfolio level basis adjustments, amounted to $64,111 million as of September 30, 2024, down from $68,516 million as of December 31, 2023, reflecting a decrease of 6.9%[32]. - The net unrealized losses for AFS securities were $4,736 million as of September 30, 2024, compared to $11,483 million as of December 31, 2023, showing a significant reduction in losses[32]. - The fair value of collateral permitted to be resold or repledged rose to $2,398 million as of September 30, 2024, up from $2,175 million as of December 31, 2023, indicating a 10.3% increase[30]. - The company recognized gross realized losses of $6,650 million for the nine months ended September 30, 2024, following the sale of $27.7 billion in lower-yielding investment securities[36]. Strategic Initiatives - The company plans to expand its market presence by opening 20 new branches in key growth areas over the next year[6]. - Truist is investing $200 million in technology upgrades to enhance digital banking services and customer experience[6]. - The company is focusing on sustainable finance initiatives, aiming to allocate $10 billion towards green projects over the next five years[6]. - Truist announced a stock repurchase authorization of up to $5.0 billion, with $503 million of common stock repurchased in Q3 2024, representing 11.7 million shares[93]. Legal and Regulatory Matters - The company is involved in ongoing legal proceedings that may result in significant liabilities, including a class action seeking up to $452 million in overdraft fees[117]. - Estimated reasonably possible losses related to legal proceedings are up to approximately $375 million as of September 30, 2024[115]. - The special assessment from the FDIC is $579 million, with $507 million recognized in Q4 2023 and $72 million for the nine months ended September 30, 2024[120]. Economic Outlook and Provisions - The overall economic forecast for the ACL estimate at September 30, 2024 included GDP growth in the low-single digits and an unemployment rate near the mid-single digits[48]. - Adjustments to the ACL estimate include considerations for current and expected events or risks not captured by loss forecasting models[49].

Group 1 - Truist Financial Corporation will have Chief Consumer and Small Business Banking Officer Dontá Wilson speaking at the BancAnalysts Association of Boston Conference on November 7, 2024, at 8:55 a.m. ET [1] - A live audio webcast of the conference will be available on the company's investor relations website, with a replay accessible for 30 days [1] Group 2 - Truist Financial Corporation is a purpose-driven financial services company with a commitment to improving lives and communities [2] - The company is a leading U.S. commercial bank with a significant market share in high-growth markets across the country [2] - As of September 30, 2024, Truist has total assets of $523 billion, making it a top-10 commercial bank in the U.S. [2]

After weathering volatility in recent years, banks can now deploy excess capital, signaling confidence in their long-term growth prospects. That was the story shared by Truist executives during a third-quarter 2024 earnings call Thursday (Oct. 17). They said the bank "returned $1.2 billion of capital to our shareholders in the form of our common stock dividend and share repurchases completed during the quarter." The broader macroeconomic environment, marked by higher interest rates, inflationary pressures a ...

For the quarter ended September 2024, Truist Financial Corporation (TFC) reported revenue of $5.09 billion, down 10.4% over the same period last year. EPS came in at $0.97, compared to $0.84 in the year-ago quarter. The reported revenue represents a surprise of +0.69% over the Zacks Consensus Estimate of $5.05 billion. With the consensus EPS estimate being $0.89, the EPS surprise was +8.99%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they comp ...

Truist Financial's (TFC) third-quarter 2024 adjusted earnings of 97 cents per share handily surpassed the Zacks Consensus Estimate of 89 cents. The figure, also, jumped 21.3% year over year. Stay up-to-date with all quarterly releases: See ZacksEarnings Calendar. Results benefited from higher net interest income (NII) and non-interest income. Further, lower provisions and a decline in expenses acted as tailwinds. On the other hand, a fall in average loan and deposit balances was the undermining factor. Resu ...

Truist Financial Corporation (TFC) came out with quarterly earnings of $0.97 per share, beating the Zacks Consensus Estimate of $0.89 per share. This compares to earnings of $0.84 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 8.99%. A quarter ago, it was expected that this company would post earnings of $0.84 per share when it actually produced earnings of $0.91, delivering a surprise of 8.33%. Over the last four quarters, ...

CHARLOTTE, N.C., Oct. 17, 2024 /PRNewswire/ -- Truist Financial Corporation (NYSE: TFC) reported its third quarter 2024 results today. Investors can access the live third quarter 2024 earnings call at 8 a.m. ET today by webcast or dial-in as follows: Webcast: app.webinar.net/qVga5Y8KdRw Dial-in: 1-877-883-0383, passcode 1322262 The earnings release, investor presentation, including an appendix reconciling non-GAAP disclosures, and Truist's Third Quarter 2024 Quarterly Performance Summary, which contains det ...