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

Strategic initiatives and organizational changes

• Completed a major organizational realignment, consolidating business units under two main segments to improve efficiency and accountability, and announced cost savings initiatives.

• Key leadership changes included new heads for consumer/small business and wholesale banking, and recent leadership appointments to drive improvements in client satisfaction, productivity, and digital banking momentum.

• Sale of Truist Insurance Holdings in May 2024 significantly boosted CET1 capital and tangible book value, enabling balance sheet repositioning and capital return initiatives.

• Board streamlined and new CIO hired to enhance technology capabilities and support future growth.

• Expense discipline maintained, with a commitment to flat expenses in 2024 and a focus on positive operating leverage in future planning.

Financial performance and capital management

• Proceeds from the insurance sale used to enhance liquidity, manage interest rate risk, and fund growth and shareholder returns, including a $5 billion share repurchase authorization through 2026.

• Targeting mid-teens ROTCE/ROATCE over the medium term (about three years), up from a starting point of 12-13%, with ongoing evaluation based on economic and business conditions.

• Operating with a CET1 capital ratio in the "ten zone" over the medium term, with a reported 11.6% CET1 ratio in 2024, balancing risk and capital deployment.

• Share repurchases prioritized after growth investments, with flexibility to adjust based on market and business opportunities.

• No major additional securities portfolio restructuring anticipated; focus remains on business growth and capital returns.

Growth opportunities and business focus

• Strong local market presence and national reach in key areas like investment banking, payments, and wealth management, with a top 5 market share in 23 of its 25 largest MSAs.

• Growth strategy centers on deepening existing client relationships, especially in middle market banking, treasury management, and consumer/wealth segments.

• Investments in talent and products are driving market share gains in investment banking and payments, with a focus on advice-driven client engagement.

• Identified significant potential to increase deposit and wealth management penetration among Premier clients and within its existing client base.

• Consumer lending businesses, including point-of-sale and digital platforms, are positioned for growth with strong client satisfaction and credit discipline.