Truist Financial (TFC) investor relations material

Strategic initiatives and portfolio changes

• Announced sale of $5.5 billion in near-prime auto loans, exiting the Regional Acceptance Corporation business, aligning with recent moves to cease marine/RV and de-emphasize national prime auto lending.

• Sale is expected to modestly improve EPS, ROTCE, and tangible book value per share, while reducing non-performing loans and charge-offs by over 10 basis points (about 20%).

• Proceeds will be used to reduce borrowings and improve funding profile, paired with an AFS portfolio repositioning to offset capital impacts.

• Strategic review under new CEO focuses on aligning businesses with core strengths and profitability, with further portfolio optimization underway.

• Emphasis on focusing resources on fewer, higher-value activities and discontinuing non-strategic or underperforming segments.

Financial outlook and performance

• Affirmed quarterly and annual outlook, with no changes to guidance excluding transaction impacts.

• Net interest margin (NIM) expected to modestly improve in the second half, with RAC sale diluting NIM by 4–5 basis points but improving credit losses and earnings.

• NII growth guidance of 1–1.5% for the year and 1.5% for the third quarter remains intact.

• Fee income projected to grow nearly 10% for the year, driven by banking, trading, wealth, and payments businesses.

• Commitment to $5 billion share buyback for the year, targeting 10% CET1 by end of next year, with capital priorities focused on high-quality asset growth, dividends, and buybacks.

Leadership and strategic direction

• New CEO brings urgency, external perspective, and focus on accountability, especially in payments technology and corporate banking.

• No change to medium-term ROTCE targets (16–18%), with continued focus on profitability and growth.

• Leadership aims to double down on core strengths, leveraging attractive markets and deposit franchise, and remixing resources toward high-impact areas.

• Branch renovation and de novo expansion programs underway, with potential acceleration under new leadership.

• Vision centers on winning more in core markets and simplifying focus to drive value and client ownership.