Truist(US:TFC)2025-10-17 13:00Financial Data and Key Metrics Changes - The company reported net income available to common shareholders of $1,300,000,000 or $1.04 per share, which included $0.02 per share of restructuring charges primarily related to severance [5][15] - Average loan balances increased by 2.5% linked quarter, with broad-based growth across wholesale and consumer segments [6][17] - Average deposit balances decreased by $3,900,000,000 or 1% linked quarter due to the withdrawal of large M&A related client deposits [18] - Adjusted non-interest income increased by 9.9% linked quarter to over $1,500,000,000, driven by strong investment banking and trading income [7][21] - The company maintained a strong capital position, returning $1,200,000,000 to shareholders through dividends and stock repurchases [9][26] Business Line Data and Key Metrics Changes - Consumer and small business banking saw net new checking account growth with over 20,000 new accounts added in the third quarter [10] - Average consumer and small business deposit balances increased modestly by 1.9% year over year, while average loan balances increased by 7% year over year [11] - In wholesale banking, average wholesale loans increased by 2.8% linked quarter and 4.8% year over year, driven by new client acquisition [13] - Wealth management reported a 27% year-to-date increase in assets under management from wholesale and premier clients [14] Market Data and Key Metrics Changes - Digital transactions rose by 7% year over year, with digital channels accounting for 40% of new clients, particularly among Gen Z and millennials [12] - The company experienced strong growth in treasury management revenue, which increased by 11% year over year [14] Company Strategy and Development Direction - The company announced a strategic investment to build 100 new insight-driven branches in high-growth markets and enhance digital capabilities [5] - The focus remains on deepening relationships with existing clients and attracting new clients through personalized, technology-enabled experiences [5][10] - The company aims to achieve a 15% return on tangible common equity (ROTCE) by 2027, with plans to increase share repurchases significantly in 2026 [9][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to accelerate growth and profitability, expecting revenue growth in 2026 to more than double compared to 2025 [29] - The outlook for net interest income is positive, with expectations for growth driven by loan growth and lower deposit costs [19][26] - Management emphasized a strong credit risk culture and proactive approach to managing asset quality, maintaining strong credit metrics [24][96] Other Important Information - The company plans to target approximately $750,000,000 in share repurchases during the fourth quarter [9][26] - The CET1 capital ratio remained stable at 11%, with an improvement in the CET1 ratio including AOCI by 10 basis points to 9.4% [16] Q&A Session Summary Question: Revenue growth expectations for 2026 - Management indicated that revenue growth in 2026 is expected to more than double compared to 2025, with both net interest income and fee income contributing positively [37][42] Question: Deposit pricing and growth momentum - Management expressed confidence in deposit pricing and growth momentum, anticipating improvements due to recent Fed rate cuts and strong client acquisition [50][55] Question: Credit quality perspective - Management stated that overall credit quality remains strong, with a focus on high-quality assets in both wholesale and consumer spaces [96][100] Question: Capital levels and buyback flexibility - Management confirmed flexibility in buybacks, indicating that the $750,000,000 target is a floor, with potential for increases based on market conditions [104][106] Question: Nonaccrual loans in C&I - Management addressed concerns regarding nonaccrual loans, clarifying that the increase is related to specific exposures but overall credit quality remains robust [114][96]