Truist Financial Corporation (TFC) Barclays 22nd Annual Global Financial Services Conference (Transcript)

Company and Industry Overview * Company: Truist Financial Corporation (NYSE:TFC) * Industry: Banking and Financial Services * Event: Barclays 22nd Annual Global Financial Services Conference * Date: September 10, 2024 * Participants: * Bill Rogers - Chairman and CEO * Mike Maguire - CFO * Jason Goldberg - Barclays Capital Key Points 1. Strategic Objectives and Growth * Truist's purpose is to inspire and build better lives and communities. * The company has a strong local presence in high-growth markets and a comprehensive platform that competes with the largest banks. * Truist aims to maximize its potential by leveraging its scale, density, and expertise in key markets and segments. 2. Organizational Realignment and Simplification * Truist has implemented an organizational realignment and simplification plan to improve efficiency, reduce costs, and better position the company for growth. * This plan includes: * Holding expenses flat in 2024 * Streamlining the board of directors * Appointing new executive leadership * Selling its remaining stake in Truist Insurance Holdings (TIH) * Repurchasing up to $5 billion in shares of common stock through 2026 3. Capital Position and Return on Equity * The sale of TIH significantly improved Truist's capital position and accelerated its ability to comply with proposed Basel III capital rules. * Truist expects to improve its Return on Tangible Common Equity (ROTCE) ratio to the mid-teens over the medium term through a combination of client and business growth and a more efficient balance sheet. 4. Growth Initiatives * Truist plans to focus on growing its existing business within certain verticals, including: * Middle-market banking * Treasury management * Consumer and wealth businesses * Payments and treasury management * The company will leverage its corporate investment banking expertise and existing client relationships to drive growth in these areas. 5. Financial Performance * Truist reaffirmed its guidance for the third quarter and full year, expecting to achieve flat expenses and positive operating leverage. * The company expects to continue investing in its franchise and growth initiatives while maintaining a strong risk discipline. 6. Credit Quality * Truist's credit quality remains strong, with no secular or geographic issues brewing. * The company is proactive in managing its credit risk, particularly in the commercial real estate sector. 7. Capital Deployment * Truist plans to prioritize investing in its franchise and growth initiatives over share repurchases and other capital deployment options. * The company will evaluate the use of capital based on economic conditions and growth opportunities. 8. Conclusion * Truist is well-positioned for growth and profitability, with a strong capital position, a simplified organizational structure, and a clear strategy for driving growth in key markets and segments.