TFC - Earnings call transcript Q3 2024 | Truist Financial Corporation

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Operator

Greetings, ladies and gentlemen, and welcome to the Truist Financial Corporation Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this event is being recorded. It is now my pleasure to introduce your host Mr. Brad Milsaps.

Bradley Milsaps

Thank you, Betsy, and good morning, everyone. Welcome to Truist's Third Quarter 2024 Earnings Call. other our our CEO, Risk Vice Starnes, well are CFO, Rogers; Officer, today senior as Maguire, Truist Mike Chair as us Chairman Bill and our Clarke management With team. of members and Chief

the release Truist's are accompanying call, perspectives Investor share as presentation Truist's business and as discuss current available outlook updated earnings quarter provide results, well During this an at will and for website third information ir.truist.com. morning's conditions, they on supplemental their financial on XXXX. Relations our The

GAAP. With Our certain these presentation to over and review on statements appropriate as today that, X will include Bill. to the and X statements non-GAAP the I'll forward-looking and as turn Slides regarding Please financial for well measures. it presentation measures of the appendix disclosures reconciliations

William Rogers

Brad, everyone. good for call our morning, joining today. and Thanks, Thanks

I'd the begin results, Before Slide we purpose quarter's X. like discuss on to third with

is inspiring foundation lives company. mission all purpose-driven We're start hurricanes. more know, you has everything never we to quarter for communities. Truist and belief do, fourth the X and with been dedicated in As to extraordinary given the devastating better this a It's building important and the the

just making been helping as incredible even to some of sure lives our open since Southeast and days work, been the with days cut the were spent supplies areas. to recent in to in I've own have hardest aid facilities serve time heroic hit teammate out hundreds help volunteers teammates their storms doing neighbors are force Truist distributing teammates the their These In critical path in Truist a of these team [indiscernible]. and humanitarian have our communities. clients

significant showers several we've to from ATMs laundry clients role also we're time. we've and come, and years branches, recover communities to in set days, recovery supplies. sites and like generators a facilities for they to going services In helping the to addition even We've the rebuild basic well as mobile trust. going This foundation, needs count play to power. without as where contributions and take in deployed these can is mobile And areas months weeks, serve distributed up on in

Okay.

quarter Let's on progress results strategic demonstrable Slide our We've made third the X. priorities discussing turn on our quarter. to during

a proud or I'm results items which was net of included GAAP that basis, later underlying quality $X.XX shareholders delivered, discrete a Mike and the improved call. $X.XX which solid sound Adjusted As share. momentum income teammates small our a the EPS common excluded $X.X per few available metrics. On billion will reported discuss of we to earnings, asset share, in

key the As you by performance was several defined can see on things. solid our slide,

of a grew of we X.X% quarter during balance we impact due and basis completed banking a First, the income full strong adjusted quarter's trading to position investment sheet second the and quarter. linked-quarter revenue on another

Second, show managing on and our results our costs. focus continued discipline expense

basis. specifically than an Expenses result declined of loss these linked provision for in projected a remained Mike on Helene, third XXXX loan compared net a ratio linked in the which million improvement to related more are We for flat like-quarter improved will loans relatively original $XX Hurricane expenses our commitment a a stable, decline X% were year. Nonperforming keep discuss to record now Adjusted from the consecutive on the later. charge-offs and our year-over-year As basis. while did detail increased quarter better which during than efficiency to expenses and quarter, by is expectations. less and efforts, quarter our XXXX to both

me. -- dividend stock in and I approved our million repurchase stock repurchase late excuse of We through the repurchasing fourth in plan quarter. worth common We to also another Board returned our shareholders capital common $XXX of $XXX billion June, million the $X.X of anticipate billion our worth part July common as of $X mean of late our

well our leaving ratio shareholders. Our amount stable, to positioned capital significant grow relatively capital balance sheet continue remained of CETX to us to and return to

we opportunities small consumer actively pursue growth our and businesses. wholesale in banking and to core continue Finally, business

the to average all Although increased we're to momentum we strategic in to reaching technology I'm also quarter, priorities Maintaining encouraged maintain and production, will expense our and growth of momentum loans be to mid-teens execute wallet the by quarter. our continuing declined within investing loan and the during important like our announced -- during certain businesses ROTCE terms our target, in underlying areas the infrastructure. continuing greater which and discipline share our attracting this company risk talent key while against medium-term

the loan and banking, focus the hand production X in and time traditional X. In and quarterly discuss continue a and digital and momentum I Small key an to results, acquire we're in little and our within over business encouraged portfolio as lending our areas through the to Slide I new Business spend clients initiatives experienced I'm to call channels. the within segments to reviewing households seeing increase Mike on we digital we within by positive want Before Consumer both momentum

lending by and quarter was balance consumer auto Average in mortgage linked indirect non-real and by loan a loans. We includes offset equity did balances by consumer period consumer our on relatively driven basis. as X% quarter estate linked specialty consumer other consumer drove lending loan remained growth stable linked in each home lower in other increase quarter which which experience a production verticals residential X% higher

stable consumer portfolio. the Importantly, credit or spreads to remained production new growth. we're accretive drive are our to sacrificing not pricing standards loan relatively discipline metrics Credit and

third again are we experience enhancements account to which bringing the checking third and out I'm once in accounts, rolled digital consumer and digital new through share primacy in due including last of was loan we're opened quarter growth muted, total new and adding company. clients deposit more represents wallet business a but rates increase grew the quarter, and than only households, XXX,XXX XXX accounts to wholesale, retention our we XX,XXX add the Net we we're to continuing our nearly quarter year. client continued XX% underlying over new Although as new-to-bank also terms year-to-date. Not the to our growth increase positive certain new by as improvements to increased XX,XXX during to households. We XXX,XXX channels, the encouraged experience overall clients attracting over of remains new deposit during to momentum businesses the talent the within improved and quarter. In production, digital our client

part production, markets an activity, we line due quarter, area we and deposits have was greater which offset the a wholesale invested increase commercial X% utilization to lower where saw capital During is in in higher paydowns lending in which by growth X% consistently. and

results-oriented asset revenues quarter increased year-over-year quarter payments several this capital key corporate we've lines. We're from teammates experienced the investment These represents third and growth investment quarterly as platform public increase gaining markets mind on our wealth to banking, many The attracted clients our securitization. quarter greater record XXXX larger year-to-date. and to performance since roles and as The to in great of which share our lead We issuance, our and and to our and the significant the plan tied in verticals finance hires quarter culture. equity are reported experience additional across wholesale XX% across invest in teams existing banking, strongest focus is in add our continuing capital commercial new complement institutions industry investment-grade have made we've banking, number an several XX% led new beyond. product in and markets, fourth to cases, with banking talent has in

our I that expertise focused market a middle investment support which mentioned existing quarter, industries out the coverage represents commercial we've our largest specific primarily We're businesses. have corporate building growth regional banking segment, lending As last on further one share. gained opportunities of significant on and where within we focus

We client also by our enhance the to capabilities digital improving wholesale continue experience.

One experience digital detail we of the launched several client platform, including the growing the enhancements are and our chat management securely to capabilities which Slide treasury quarter, on important During significant specialists. strategy, I'll Truist to Enhancing discuss more clients in our for directly X. with ability the parts View

We compared quarter of show the in client digital and users and grew as our X% steady continue to strong app digital XXXX. third XX% mobile increased to growth capabilities transactions

self-service We by which capabilities, Zelle year-over-year. primarily are clients towards driven transactions, strong up continue growth in XX% migrate to

an digital account account our funding addition openings, year. with In openings increase in improvement in we're up over of to the also the significantly seeing of balances an last quarter third

efficiently. XX% with recently client enhanced in deposit strong now link-quarter increase basis Our applications. on increase digital satisfaction that the but conversion These digital a a has leading we're applications, total mobile growing drive our of and applications, XXX helped new XX% better scores. driving serving improvements drove productivity device also doing for digital also more digital We're account point application not clients, only rate and which experience

I'll now that So it and Mike over to this me come results, turn let back financial discuss after and out. to close the

Michael Maguire

Thank good everyone. you, Bill, and morning,

As available we third per or share. quarter of XXXX common GAAP a income high-level $X.XX to net reported summary, $X.X billion shareholders

$XX $X.XX was interest gain quarter the $X.XX income on to trading million Truist another included revenue, due approximately reflecting which losses costs. a FDIC or by to the per lower the investment X.X% after-tax X.X% and million EPS per increased growth Insurance in adjusted in income, per and on for $X.XX for sold Assessment. Total primarily adjusted in quarter were linked the pretax and share basis, on share, were $XX Our net the revenue. expenses reduction personnel after a sale or a but tax X.X% X.X% driven available Holdings that securities share Adjusted pretax on increase like-quarter by increased in banking of Special sale investment second growth a X.X% noninterest increase down linked quarter,

capital. Moving on to

share stable, a net a relatively quarter offset nonperforming our period by X quarter. From linked-quarter our remained both common a points the balance the linked quarter and basis, ratio were by during loans basis and earnings credit relatively XX.X% and CETX a on completed at basis. dividend charge-offs remained like Our linked repurchases perspective, on declined sheet as and smaller payment stable current of

Slide at loans. offset Next, markets sequential balances loans least getting decreased primarily and in utilization greater part basis, billion indirect residential reflecting average as decreased commercial Finance due line was in on and line in overall and our Average by utilization and lower offset capital X.X% into consumer by again X% a by or mortgage growth stable loans to Service billion leases activity. In additional client consumer $X linked decline loans detail, relatively lower loans demand I'll C&I remained on weaker [indiscernible] in auto cover $X.X with portfolio, quarter a by or modest driven commercial X. growth loans. partially

average both and likely fourth balance basis certain categories estate in third in runoff paydowns improved production commercial in the result and mentioned, of an Bill quarter. will pressure consumer in the to like continued rate similar and real lending, the decline but likely in As experienced that on quarter wholesale residential we

$X.X second XX. unchanged and Average trends sequentially deposits expect Average X.XX%, respectively. the deposits $X.X X% lower Moving billion by our quarter which to and approximately quarter. XX% of remain the in The brokered cost in deposit sequentially decreased deposits is $X.X to decline X.X% X represented basis or Overall, average with deposit we reduced total balances of broker X.XX% billion interest-bearing deposit the Slide billion and point decline decreased relatively deposits. XXXX. stable fourth due on total to to of deposits noninterest-bearing versus

of set became interest linked basis rate of received impact net margin a X.XX%, primarily by XX quarter These due day equivalent interest Slide we second wholesale and quarter points commercial securities the reduction in during higher primarily just I or linked additional basis XX. that to mentioned the on by a the balances. Reported the impact margin repositioning Taxable additional during funding and increased fixed and net funding. of sheet to were effective income net reduction X.X% million, $XX net and strategic tailwinds the interest lower a the due in the wholesale swaps balance loan quarter. one higher-cost in increased repositioning on completed to third interest income quarter Moving quarter interest cost

Turning noninterest on noninterest $XX equity investment and markets and attributable quarter. linked second income higher investment to improved banking deposit and million banking relative income charge income to Slide XX. Adjusted the or like-quarter higher Adjusted X.X% on million due trading higher increased a to noninterest increased increase was and higher $XX fees. to quarter and income, due trading income other which basis, The primarily XX% M&A, on income. service to investment-grade income capital higher

included quarter the lower costs XQ $XX Next, and assessment, the due to partially Slide reflecting to a decreased 'XX. a partially noninterest I'll on FDIC of declined recognized in other XX. million sequentially $XXX million second quarter $XX quarter, primarily other noninterest lower or decreased expense linked expenses to which increased expenses was expenses. cover donation. reduction $X.X expense due on Regulatory a marketing GAAP X.X%, expense. due other as professional On special million, expense, expenses by basis, by lower charitable adjusted Adjusted billion $XXX person fees, million and by personnel like higher X.X% $XX offset million

asset to moving on Now quality XX. Slide

stable Asset to both linked quickly quality credit reflecting culture and proactive on loans. like remained our quarter a and strong resolving approach basis, problem risk

quarter, decreased losses basis lower CRE in our primarily to X XX points the net basis ratio our points charge-off During portfolio. to due

percentage along exceeded which ratio net and fourth with updated million down delinquencies $XXX loans a loan loan includes stable increase for a linked X.XX%. Nonperforming on related X relatively for on quarter, linked balances basis our linked Hurricane $XX which of loans fourth quarter in provision data portfolio, our while Helene. total consecutive to a total resulted lower the to our Our also loans. point loss million office in were as to stable remained flat quarter, in of appendix ALLL quarter basis. The is charge-offs X.X% a is remained the provision Included provision quarter relatively total

terms paying XX.X%, Approximately loan Commercial increased prevalent losses accordance original is compared June Our of office our X.X% from more nonperforming loan. Notably, classified are these tend lower. with where driven of balances to X.X% segments, to in more currently the as our office is approximately continued expected reserve with granular, loan and stress of our sector. office portfolio housed Community office Banking the XX% XX% and within XX. Approximately wealth guarantor at overall of be support, XX% in by the sizes portfolio

very size that position and is identifying in is expect the the this believe resolving issues office remain well stress proactive our in of to to and We sector portfolio manageable and be our but reserved, portfolio. in

quarter the Turning capital Truist of linked ratio CETX stock repurchase via current the to our capital at Slide return on offset billion $X.X dividend XX.X% stable of were million shares. of in our earnings as to and common XX. relatively shareholders by remained period $XXX

the improvement in Our CETX during including AOCI the capital X.X%, a due of in X.X% reflecting interest ratio, AOCI, linked longer-term increased to impact from experienced the billion to quarter $X.X decline rates quarter.

the believe the that fund await Slide review to Basel shareholders. I future capital III significant accretion we guidance final capital strong gives of our ability current Although a rules, for we growth XX. end earnings will the our our balance and position our and proposal unique game to on return us AOCI sheet now updated to amount utilize

$X.X XXXX XXXX, Looking revenue the expect into the of X.X% we fourth to quarter third of decrease from adjusted revenue billion. quarter

our primarily some lag We expect in decrease X.X% and net temporary margin beta. driven deposit interest due income in quarter, to balances the loan lower to pressure our fourth net interest commercial to the by

two Our of one over in reductions in point the cut November XXXX, in rate net the interest and basis XX another remainder income federal outlook funds cut December. assumes

noninterest X%, driven and trading We fourth banking to quarter revenue helped third pull areas in as to the by lower by infrastructure. income third $X.X risk forward of markets the of some the decline the third quarter, expect capital primarily by driven our digital increase activity from into by third the and talent, performance expenses such billion quarter expected marketing are X% investments platforms, in quarter. Adjusted in as investment

X.X% to which for year outlook X%, expect quarter. For the our with reflects fourth revenues previous our down the XXXX, guidance, be down consistent to full we updated

versus adjusted now adjusted slightly be full to lower expect expenses for Bill to XXXX expenses flat. previous expectation expenses year approximately than remain mentioned, we our XXXX As

to quality, expected In we terms net XX XXXX, XX would charge-offs now about be expect of points asset charge-offs closer in points we previously basis full year XXXX. to of basis for net

in of the relates to As similar share it we third repurchases quarter, $XXX to million approximately targeting buybacks, are fourth quarter. the

for our effective it tax fourth XX% remarks. of a final or equivalent taxable some on basis XXXX. I we the to approximate hand to will Bill Finally, XX.X% expect back in now rate quarter

William Rogers

you, Thank Great. Mike.

conclusion, with and got company teammates I'm that So progress made I'm confident tremendous as as within a proposition our the never our has clients and our value we've pleased in year, really been our with company, this with momentum we've stronger.

incredible clients an share value. consumer with and got markets. a in specialized leading that fulsome we've franchise got high-growth First, motivated set highly loyal teammates. of We've are and capabilities We've energized wholesale

us to amounts in considerable the invest and of a ability differentiating Our factor and capital to serving a the of repurchases core clients, infrastructure several businesses new dividends and share in our gives relative next our return that capital our banking is by form unique years. over existing grow shareholders advantage

capital our to profitability we medium over As execute and opportunity term. the significant a growth management our we strategic improve priorities, see

and infrastructure. to while to on that cost while towards generating relationships profitability also initiatives while operating proper and that that already much client is product maintaining into centered accomplish function to on don't We and improvement at talent, our experiment our deepening on with maintaining plan or Truist. The in positive a goals. have we're new and improvement in good will achieve markets our result Our working existing improved leverage of our products path new can continue all I'm business discipline expand to multiple performance is technology that with potential expense the long-term of multifaceted paths this client and verticals invest encouraged execution of to we profitability further exist see lines discipline. while news I say we in is of growth focus

the current the our planning on do in positive Although teams where leverage we momentum, next year. we it's and for too achieve earnings to cycle, franchise operating early guidance in specific expect the to our based are XXXX, confidence provide

granted take asset all focus Q&A. you continue to especially in light discipline we me productivity strong teammates never Brad, and our over I'm risk in on of optimistic maintaining ever of and forward. in like Truist's as about to investment for back to focus for record track see let I purposeful we'll thank leaders your all every with for it Finally, Truist. And that, and company. I'd our you of our inside quality future, on thank our their controls. strong incredible day interest success our for as as and turn the moving company Again,

Bradley Milsaps

participate Bill. the you, our explain this Thank listeners can how session. Q&A you Betsy, in will please at time,

do like participants and X call X ask I'd to as may that, in limit on you you the As that please primary to as today many question we to order yourselves accommodate follow-up possible. of the

Operator

today from first [Operator Sandler. Siefers comes question Piper with Instructions] Scott The

Unknown Analyst

how Mike, I loans. quarter maybe able deposit the be was at on company's enhance make betas support overall rate might I this the some more and unpack to certainly please you margin ideally sort bit hoping thoughts to thoughts But sensitivity a walk pressure top-level you ongoing NII, catch fourth could understand the overall guidance about on might help was through or I point? quickly margin the able be hoping of just up then to for

Michael Maguire

where in the was repositioning. from the of saw give there, Scott, you sense driven trend we do for of to with the start happy and and NIM beta. kind that. you even the improvement give fourth a into the From quarter third really go third perspective, bulk sort link maybe quarter just and a maybe I'll that to by we to the the The of

So basis the XXX. XXX points XX to from

X was it, points third, you quarter. did do fourth expect mentioned the quarter, by basis look better in We the a point We an average rate recall, for see lag. we improvement beta we on, funds that As better X the some the you'll by in the call basis temporary fourth. were cuts into

started So at, call it a beta. XX% it,

the for into how repricing. still that perspective, to outlook a fourth call mid-, Our high significantly, touch will the relative lag are from accelerate is assets XX% quickly that the maybe quarter while we'll it a even beta

tune So same we there. we to see margin the it's NII. some compression Maybe guided as

to low probably improve of So catch into into would and expect of I'd cuts say, of it we we so XXX in quarter then the very, the sort the margin or see early, first have get would interest XXXX quarter further area. down XXX, margin begin very X.X% We call up XXXX. and expect net to stabilize, the in as to first as that

Unknown Analyst

color. then And just All separately. right. I to Perfect. That's wanted ask great

sheet really is banks capital impression many this did sort an So on the I've relative plan there. so? of repositioning you year. large so much of opportunities it pat Any to that do to value earlier you further but that stand on got was thoughts there, so front? out balance sort Or have flexibility

Michael Maguire

about an an initiatives shares buying both we're to a to we and the big as at think we little rate quarter. Yes. like lot have buying a least you're is have swing that's slower to continue think run feel We an been level. leverage Look, I do I be in very the a level, We're position the the this fully elevated in various where elevated patient, in think develop, we to capital. Obviously, grow footings May would realized at expect Bill at an do we're -- capital of our took benefit right. business pretty to that back talked growing going our We back opportunity advantage. has now shares business. the at third on into trying think focused segments

a I put think priority what it's ever don't front incrementally, the we in repositioning I want on for the necessarily, us. us think lower back the we tool think to but based I see of toolbox else in

Operator

next Graseck question Betsy from with Stanley. comes Morgan The

Betsy Graseck

Is proper just operating execution? proper Bill, the that is execution? or target you what mean how Or change a deliver that in goals you understand Could us execution the the goals? do hitting on proper here that there help by you you delivers have. mentioned with you're

William Rogers

converted in I'm just there We've diversion focus getting lot of things, real our with Yes. against the existing clients executing of teams and what type and us. I we and behind to focus expanding on teammates that's really the clarity onboarded momentum activities really of a execution. our on all getting are way Coming with a pleased lot strong on want and we've focus out about And created was clients. now merger, Betsy, there's got strong mean, and those the focused a accomplish. of relationships our really the priorities.

proper should say in better of maybe I continuation execution, that I the some when said, of and see quarter. we've this momentum So that started, execution you

You that see in of net see increase primacy you rates, continuation new.

these the are all So that we're continuing clients. fact that our evidence expand with demonstrable to of things and grow relationships our

ought So momentum existing proper probably to and be against execution. improved continuation

Betsy Graseck

as Fed we XXXX, leverage Okay. as much And then that driven is roll into thinking here driver positive about deposit funds. that with catching of the about leverage I up thinking lags of we're mean, how we're operating the 'XX? operating into being major how beta by is

William Rogers

come Well, factors into it. got you've all that the

activity loan it's on the this first investment The -- have momentum as is side, return. up the use saw increases of momentum going type going momentum X%. we We in loan that we particularly we that that quarter, year business is So continuing example. to this an into consumer the one saw in The we're example. banking, production have quarter as confident around to growth to next production take I think let's

production the know in this spend the on the about -- in things real last side, saw Sheffield and but X we the was wholesale so into, like that the Finance and quarter lean about increases you think there, saw We increasing Service areas quarters. lowest in utilization can really good the momentum we

see So that some we -- to but return. expect of

have We've leadership, working -- and top great got of with we from Dontay loan we've some And then mentioned, I'm really really got on So team executional I some pleased Mike the fee are the dependencies, the to as and closely really where Krista team. deposit dependencies betas. some dependencies. really deposit mean you and with provided be beta. businesses

then Mike year movement, from transitioning expect next there. indicated, little had we've bit of of see quarter first sort I but a a continuing in And little bit lag, of and already the of that

then is final And factor the side. expense the

to fact last evidence And side expense other the versus good giving got growth expenses. on a that opportunities. We're of our a capacity year year. to So our of correlate controlling that we're got going we've good And the with handle expenses. is down this good we've really our think revenue I growth hopefully, be

I focus a we So lot a to single things. Maybe of But manage it's have really tightly going have positive and a really achieving and the We're things, focus of of requisite them it's think, dependency. with attention amount and short don't question. that leverage. all all operating a on those a long answer to well

Operator

with The Erica Najarian next UBS. comes question from

L. Erika Penala

Mike, first a of quarter. question My follow-up. mentioned is a you bit on little guidance the fourth

we about we're appreciate think and not fully color 'XX the from here As today. trajectory specific getting

liabilities that in a but will Or negative? later? NII impact side the we we start faster your assets the asset XQ, repricing versus side, level liabilities about your repricing on than of then there's from think that's faster than As liability structure XXX should day assume that the count asset come can through XXX

mentioned that the to swaps. end, you And

received our more weighted what fixed color could what rate factor so the give can you on bit If us that into modeling? we a -- fixed notional the active is, is the little swap

Michael Maguire

it, as you've the, Erika, maybe Sure. Yes. trajectory, just I actually, let it got say to I relates the this. NIM think me it Well, call right.

mid, expect to fourth essentially beta the the the call to XXs, it, quarter. and catch in accelerate, high I quarter we So do first expect up would we mentioned, continue for in that

balance behaving a liability again, quarter. have that would actually fourth So after sensitive, an asset-sensitive touch to the expect we at point, sheet

move a to margin to the into net And so we really, expect begin expand as interest would lot a again, 'XX, touch. deeper of we variables here,

glad I'm think mentioned the count, day So that's are quarter. fewer There you days up. in And a good guide. I brought you that first X

net we we a think first, more you perspective. stable pressure stable more So dollars, dollars feel see asset as a in interest see about margin, actual of a still NII NII earning the might you of might base might while a touch from

think your of XB. questions most XA and I got I

risks use we you we did we swaps, our in -- we on manage our and have that which rely have program, volatility opportunities, NII let's the programs risk receive to position. to primarily capital and program our We've as to On our future, got well, and our know, manage we see, our values, rate manage fixed manage asset X fix the sensitivity pay et cetera. AOCI,

We the receivers the $X the call or up $XX-or-so into added quarter. positions of quarter. take, did in about give area. the notional some billion activity it, during third starting That billion have takes XX, forward We during

We added $X about billion to investment well. quarter added also as pay-fixed swaps. of We the during the portfolio

there. accompanied had So some we activity

terms active of $XX of touch of third quarter that starting, had headwind. versus sort versus second I the swaps incremental in forward billion a a the in did our In fixed becoming based description have, was headwind manageable active of on a we during the results sort quarter, about received we of NII mentioned

fourth throughout on As we quarter, really of the have we the the coming look at else year. course don't much

We will XXXX. come on curve to in a to we XXXX, the going frankly, headwind have actually of on that come quarter the But today, based change. going and each that's but on, that's more see be active knows who could curve into less

Erika, rate, that fixed received XXX asked, notional. is you on around Our

L. Erika Penala

Bill, good, everything that management -- question could follow-up should thinking good a 'XX, after NII in based Mike that change if as volatile -- the that you'll true is for said, did it to year, of my growth and could on this have benefit quarter. capital market from all administration just detail the supposed And terms be for market business in as you is and it. an you what next as well. thanks If Got market come is strength election wealth the for in your be

managing words, think issues oh, appreciate offense, Truist of that more just think to integration? you that strength in we base positive fully get now we because just should other merger Truist leverage, about your have wanted on relative potential In I the with revenue operating thoughts than, because and thinking as this about I expense your offense about think are -- you're on expenses revenue really aiming there. So to rather all about the 'XX? of So to for we

why peers Truist I question, in if high And that X me, that's but a to I mid- high capital the get wanted a earned I will operate aiming compound are suspect the or asked teens some on superregional mid-teens your adjustment. both. their thoughts be additionally, to terms in And investors in longer-term might the to of know have ROTCE teens?

William Rogers

for the comprehensive Thanks questions. Yes.

first you think offense. And right, on it results. question characterized in exactly our I the company, can you've part the the can you feel in that sense feel of are of that we in

of those terms it of and of see momentum. We about this things in side, today, I outlined this talked that think got can is and that terms about leverage I talked we in the our long-term the about concept third expense are And in many You opportunity. the the think quarter, expenses we've correlated to you correlated. the commitment to operating is that calibration

and offense this to think And of be I we we've on those and was on sort of merger. good a the you saw I grow as you quarter. be invest win in correlated. uncorrelated as that of think the and coming noted, today, capacity Again, good it were evidence and out handle have got really

that related merger our results continue and activity So going the other see hangover there invest, expenses. or to top growth investing. in line revenue and to we We've the We're of opportunity. is been to

higher correlated efficient again, have commitment and So an to company.

to today stronger much operating we're So really efficiency ratio.

about that. talk didn't we So

leverage to the of a platform really commitment efficient positive operating have this on company. So

right, the of of from that different, -- sort because a put the creation of in business point is side, of then category. And I so let's sale on lot we the framework. and think you capital different the of So bit start so a a the ROTCE insurance highlighted starting one little

in I increase return. and of about terms speed as think it

return, of think, unparalleled. is our in I So increase speed

we first the my part most of answer, our that our starts answers return it. of grow we grow of about where have from business we deploy ability more And I faster than and we our is of think get in to then to our our business start then capital mid-teen both think over to growing reflect key to I So model from what else. to capacity sort has medium catapult our anybody us to in ability there. level the term. capital we that But once shareholders, returning ROTCE the the sort If and the talked

Operator

of with America. The Bank next Ebrahim comes Poonawala from question

Ebrahim Poonawala

I question, missed maybe first apologies and guess just it. the if I

the quarters? quarter. in pace locked next in thinking we billion -- of about $X.X million this buybacks should if you we several the for that, think relative or those there of to pace buybacks loan $XXX that Should is Or I is are mentioned the room term relatively assume you near increasing the is growth muted?

William Rogers

Yes, this Bill. is

very that all think for to our opportunities it's I time. -- it about stay elevated an going So see level period business. some of been We've at clear as grow we to think we

the the than or sure see make our of think, to have we elevated those got being fourth in that and levels going we're sort much business. we're we talked growth. our at the If would longer lot grow for current quarter a that next elevated year, increase we in the opportunity with longer in now, to do to capital or first and about So to of we confidence recalibrate we've . But view, I that enter and levels. how invest that the so to as to ability stay part ample of

Ebrahim Poonawala

Understood. Betsy's you think question I And on slightly to responded just that, earlier.

standpoint, Truist the outside an from like and with that now you -- think is deal. you with overhang If done the mentioned

across at leading or like of Southeast? smaller and us, share? And Bill, you're do in terms of we the to market bank out feel will point remind the where Just across the stop think your about hiring expect share market aggressive you competitors do when businesses momentum growth who've you where been market grow to a

William Rogers

about let's all terms mean I our share of in of talk businesses. market Yes.

this every we've So in year through banking consistently virtually market starting with investment the discipline. side, increased share

every about net increase So the new. I a And on growth. about net had then really think the share new terms share think strong example, in when We've I focus really we margin in for on of, about talked discipline. that things

it's sort client clients, that's new number think and So the of clients, net with about our I existing when within when And primacy it's share, so then base. I about increasing share growing think share, of a hallmark. incredible

this side in primacy are of share. clients. of wholesale with growing terms terms the in both grew penetration side our penetration, our our terms treasury the on we on in all consumer product So we quarter, of particularly, of primacy and And

So as clients and of have great into markets. our I our our comfortable new of new mean, have new parts because lot a continue. yes, in really competitors coming share look primacy our a coming we lot markets. our of net our really, I And into markets important at we But with. going to share, capacity feel that's grow and to clients serve the we and our

good So at that now started it's granted is I to continue. merger, that pace a slower of expect pace, but really and the out

Operator

Fargo. comes question next from Mike The Wells with Mayo

Michael Mayo

the XXXX, can thinking? meat Bill, term as XXXX you talk in beyond -- level, financial long more talk give about in you on and get are than term you the when expectations about more returns, about operating we for of when talking of term, you such the kind bones $X, medium are leverage some the definition what

the I'm from trying I've I when ask to to it targets of the shareholders. you And better in written return understand quarter, is accountability XXXX was reason the third this, the And lowered but about management special award the At awards mid-teens. was type get they officers, granted to and that bonus XXs LTIP, you already RSUs, executive time, incentive extra annual some of leadership same to low awards. a PSUs, on

there's mean, get I XX of liability question current fixing call's the management, who did get in did not executive get officers, that CFO. didn't X the like the for Truist the looks what award. the problem, Bill, that about [indiscernible] recognize, -- asset for a assume I I that. others And those And a not award, X you committee but pre operating then who named member there's

cut steps, since still shareholders, some [indiscernible], announced Stocks restructured today's most the just shareholders pay sheet, on company, you I'm line. the the balance is from on slide at you aside and with reordered says the have say don't reconciling the word performance, see taken mission, that slides, says you and you the you time I bottom underperformed the why you over the sold looking you And stocks the that but frame underperformed Board, slide morale, expenses, when So the Truist. merger.

on So again, that's and quarter that you financial expectations a Can stock you higher the metrics my key us after more should fourth drive big up. give think the key price? detail

William Rogers

and Mike, the been thanks underway. Thanks, have efforts for Sure. that acknowledging

shareholders. say, it to about as is relates Let me the first slide deck, every

want that. just really I really, do to we be about So clear shareholders. about Everything is

context. in all is that So

I of reset is the sale specifically, relates we would what post do say of the sort it TIH. did to we ROTC As --

both we're the capital, we we've I in it capacity increase as that anybody return create return. to earlier capital I of is to to return the said capital, because capital, generate a changed shareholders. capacity an in position as of as construct a our capital. it lot increase So think of and amount We got lowers and deploy our that to the best post that quickly of that that reset of actually the significant return created return. And But that was business we've we appropriate think we return in a our because so TIH answer, our I to terms that and deploy sort to of business

deploy have return raised I efficiently. and we efficiently, to and chance think it So a we it

part many relationships that to resources. are the expanding existing of I've about return, markets that already focus places things are things hopefully, In capital and in have where elements critical that on terms of those with committed talked clients that and we and are

So higher faster these paybacks. that have returns are things and

of I what we economy paybacks. When we and that you in opportunities faster and the and increasing return talk the growth of we of long-term what against really things. kind markets somewhere franchise and rates. terms executing is that where the about have depends and of medium that is that range. about in if existing our term, strategy, about of that not in So in But This it's definition X-year on focused paybacks going see is with think on see higher sort to our also trying new these terms

see go So that against think quarter. but could that. momentum in is again, key have the could faster, go I that you we'll that this slower And

see to that. continue you'll think I

of operating but of where relates let then the see we'll asset confidence continuous tremendous that. And one. question, capable we are lever that think, the will rates can are than going evidence a see little which to growth of year we to of Again, get the capital terms to to that capital, leverage in and us answer a earlier are as many as return the shareholders, I of that where an operating use many where faster use so we our things I sort is in the coming team. ways others think as us returns, of a increase commitment leverage, have into We'll more, see in let doing. all it I capital said positive you bit

transition So answer. year, and year-over-year then I make we'll that the my on improved next as as think we'll returns earlier that part of to earlier, continue to I transition said improve the

Michael Mayo

a then the the And just follow-up -- management. incentive for incentives to

time. XX analyst that's I long Page I'm just what do for your think and you XX you saw it financial nonfinancial many so cut compensation. proxy off with changed the -- then the the third different like and also I X and quarter there's it and quarter driving bank -- -- night, metrics metrics, trying that looks the that release last of I there's metrics And had this a or like for -- you

should what key X be? the focus X outside to shareholder should and you pick metrics they or drive can that we If that monitor on had on value,

William Rogers

I into Yes. the I appreciate diving proxy. you mean

that think I proxy, performance. you you'll into dive on based as see compensation

So I clearly. quite think you'll see that actually

that have that growth this we are measures our don't company. ROTCE primary we look and So at assume think that at don't the in mentality business. I And

you have So and return to growth. good have really have you have to

at plus plus dividends we're book looking value share So ROTCE. per total

correlated absolute highest think total in relative and to return that And I are the price growth growth. total share return. fairness So

Operator

from O'Connor question with Bank. comes The Matt next Deutsche

Matthew O'Connor

infrastructure. and quarter wondering just was related guess, In mentioned increasing investments why risk remarks, elaborate prepared guys I to the what drivers you you on could the is the fourth if I that now? in of, about

William Rogers

Yes. risk we the infrastructure. that mean, of investments continuation in Matt, a the that's have I

So that's we more of terms think enduring can a of in infrastructure. build consistent how you everything

quarter, about along type in things cyber, investments think go the but of the investment. guidance. and all they part think about increasing They're the with that So our investments bumpy that by are overall in data,

our into we items going factored year. we've And operating some that quarter. were so guidance the in We're specific given fourth that they're unique But more quarter, next also that on had leverage just the for to continue This positive to investment to shareholders. company have This our invest we a size our for thing. and a with continuous clients, to and infrastructure. is in regulators isn't onetime obligations a responsibilities unusual the the

Matthew O'Connor

a And it, still to there some it quick I banks is staying the companies, all business us like doing? as of the gut made best and just snapshot to in, kind the X give creating like are call new just investments other know to what when do? of you up guys a both usual Is lot it combine the up Is of date something? of catching platforms. on the you Maybe company, taking

William Rogers

Yes.

elevated basically AI mean seen of I cyber. I risk in expectations in investments we the expectations make we've on to of that that. seen expectations data. the elevated think seen want we elevation of infrastructure, the in terms and terms of manage how -- We've the We've

in do our So things improvement the really financial are not that out and be left were they're we responsive that to in challenges and -- more continuous exist want just of opportunities things services. of merger, what the but that to --

Operator

next with The Gerard comes question RBC. from Cassidy

Gerard Cassidy

market as how years you that's to up can in that Bill, about in businesses, gaining Can you that some you us, see share Can measure share. share wallet a wallet you're share success growing share wallet you with you of you doing but talked X prepared share, talking to response grow share? And in X that what outsiders, maybe us showing that your about guys were how are or didn't we, second, and wallet ago? question, your remarks with

William Rogers

business. seen the mean of to best way our is I returns overall wallet gain in the share see the

the for as and increasing increasing you if about So ROTCE, that return about the is ROA. think Think expectations about us think that focus.

So we have assets deployed.

talked time, and up about base talked treasury the about primacy penetration. This We X%. of checking X%. We our commercial increase have resources deployed up penetration we management, we

that the giving to primarily consistent primacy, we're hopefully, kind that returns. of but So see that's demonstrate you it in you information

the focus. our improving big business that's the is we returns So clients. for with drive this our I mean that's primacy way

Gerard Cassidy

comment, up Do the It on of you digital are relationships in how optimal branches your most success that included channel. still you of intersect digital Or pursuit the of it channel seems industry, like channel? interlock primacy physical the some is the guys following seeing And brick-and-mortar? as building or through the having kind primacy? come mix Bill, the through well digital the primacy you do with guys as

William Rogers

is You're really on it. And the answer both.

called We TX. have concept this

So this technology of trust. equals touch that concept and

Truist to want the do for capability Assist. we've our we in and built clients what So that example,

to clients our in interaction assistant sort their a to also have of they So But transactions. with help transition that what is we have digital the a virtual believe then opportunity human them to that.

continue both to So a want be able you've client our shows transaction to of digitally, got opportunities. When sort with we to and that of is supply follow that process. us those and up in up branch, interacting on

of in weeks process. So think the the last experienced few something both clear storms. they're the part important becomes It like in in actually as more never overall we've really I

So to would those economies time. during that go particular cash

is thing that down. power don't that at digital, the to So They time. our have are is communities access branches down, and our most those internet need important ATMs

can and to best be that the able being we be those served. making clients of our sure So toggle way in that both between they serve

why most them. are things with that's do to an them just that to create they're client. in important how in of when that community to important this show channels led the enduring by is investing because relationship important those And a commentary most we the with and to particular both with are And I that is goal a

Operator

question-and-answer the any over would I closing This turn our to like concludes for remarks. session. conference back

Bradley Milsaps

earnings Betsy. Thank call. completes That Okay. you, our

now Relations feel day. call. interest and the Betsy, Thank hope have please to in great you Investor for you questions, you Truist, any free If additional team. a to reach may the you out disconnect we your have

Operator

attending presentation. today's now concluded. has Thank for you conference The

disconnect. You may now

Truist Financial (TFC) 17 Oct 242024 Q3 Earnings call transcript