Truist Financial Corporation · NYSE:TFC
Truist Financial — Q2 2024 Earnings Presentation
29 slides from Truist Financial's earnings presentation, Jul 22, 2024
Slide 1: Second Quarter 2024 Earnings Conference Call
Second Quarter 2024 Earnings Conference Call Bill Rogers – Chairman & CEO Mike Maguire – CFO July 22, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements From time to time we have made, and in the future will make, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current fact
Slide 3: Non-GAAP Information
Non-GAAP Information This presentation contains financial information and performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Truist’s management uses these “non-GAAP” measures in their analysis o
Slide 4: Purpose
Purpose Inspire and build better lives and communities Clients Provide distinctive, secure and successful client experiences through touch and technology. le sen with integ! Mission Teammates Create an inclusive and energizing environment that empowers teammates to learn, grow and have meaningful ca
Slide 5: Financial Results
mlatclaterrs! Results
Slide 6: 2Q24 key takeaways
2Q24 key takeaways $ in millions, except per share data – Solid second quarter results driven by net interest income growth, expense discipline, and stable asset quality Reported Adjusted1 Net income available from continuing operations $(3,983) $1,232 – Completed the sale of Truist Insurance Holdin
Slide 7: Client preferences continue to shift toward mobile
Client preferences continue to shift toward mobile Mobile app users1 Digital transactions2 Deposit growth fueled by digital onboarding (in millions) (in millions) – Reimagined consumer and small business deposit application experience +7% delivers personalized account +13% recommendations 4.9 80 4.8
Slide 8: Recap of strategic actions completed on May 6th
th Recap of strategic actions completed on May 6 1 Closed sale of Truist Insurance Holdings (TIH) 2 Executed strategic balance sheet repositioning – Completed sale of remaining 80% stake in TIH at an – Sold $27.7 billion of market value investment securities implied valuation of $15.5 billion with a
Slide 9: 2Q24 performance highlights
2Q24 performance highlights $ in millions, except per share data Summary income statement1 Commentary1 GAAP / Unadjusted 2Q24 1Q24 2Q23 Earnings Revenue $(1,632) $4,871 $5,037 – Net income available to common shareholders was $826 million, or $0.62 per share Expense $3,094 $2,953 $3,046 – Net loss a
Slide 10: Average loans and leases HFI
Average loans and leases HFI $ in billions 5-quarter trend Vs. linked quarter – Average loans decreased $2.3 billion, or 0.7%, from 1Q24 – Average commercial loans decreased $1.3 billion, or 0.7% primarily due to a decline in C&I driven in part by capital markets activity $326 – Average consumer loa
Slide 11: Average deposits
Average deposits $ in billions 5-quarter trend Vs. linked quarter – Average deposits decreased $1.0 billion, or 0.3% – Average noninterest-bearing deposits decreased $1.3 billion, or 1.2% – Represented 28% of total deposits, which is consistent with 1Q24 $400 $401 $395 $389 $388 – Average time depos
Slide 12: Net interest income and net interest margin
Net interest income and net interest margin $ in millions 5-quarter trend Vs. linked quarter – Net interest income increased 4.5% primarily due to the impact of the proceeds from the sale of TIH and balance sheet repositioning – Excluding the impact of the proceeds from TIH and the balance sheet rep
Slide 13: Noninterest income
Noninterest income $ in millions Noninterest income Vs. linked quarter 2Q24 1Q24 2Q23 – Noninterest income declined $6.7 billion due to losses on securities sold as part of the balance sheet repositioning Wealth management income $ 361 $ 356 $ 330 – Adjusted noninterest income decreased 0.6% primari
Slide 14: Noninterest expense
Noninterest expense $ in millions Noninterest expense Vs. linked quarter 2Q24 1Q24 2Q23 – Noninterest expense increased $141 million, or 4.8% Personnel expense $ 1,661 $ 1,630 $ 1,705 – Driven primarily by a $150 million charitable contribution to the Truist Foundation – Partially offset by FDIC spe
Slide 15: Asset quality
Asset quality Net charge-offs Provision for credit losses NCO ratio decreased 6 bps on a linked-quarter basis primarily reflecting lower losses in consumer Stable credit performance and solid economic conditions drove a lower linked-quarter provision ($ in MM) ($ in MM) $490 $572 $440 $453 $442 $538
Slide 16: Capital
Capital 2Q24 capital walk Commentary Sale of TIH creates capital advantage – Generated 230 bps of CET1 under current rules and 254 bps under proposed rules4 – Completed balance sheet repositioning that is expected to replace TIH’s earnings – CET1 ratio increased 150 bps linked-quarter to 11.6% at 6/
Slide 17: 3Q24 and 2024 outlook
3Q24 and 2024 outlook Based on continuing operations; $ in billions unless otherwise noted 2Q24 actuals 3Q24 outlook 13.9% Adjusted revenue (TE) $5.0 Up 1-2% compared to 2Q24 3Q24 Adjusted expenses $2.8 Up 3% Tax rate ~16% effective; ~19% on FTE basis Full year 2023 actuals Full year 2024 outlook Ad
Slide 18: 2024 strategic priorities
2024 strategic priorities Pursue growth Maintain expense Return capital to Maintain and Enhance the client opportunities in our discipline to fund shareholders through strengthen sound risk experience through businesses investments in our repurchases and our controls and strong T3 (touch + franchise
Slide 19: Appendix
Appendix
Slide 20: Commercial real estate (CRE) spotlight
Commercial real estate (CRE) spotlight CRE represents 9.7% of total loans HFI, including Office at 1.6% 5-quarter total CRE trends Multifamily 13.7% 13.5% 11.3% 11.7% 35% 11.1% 1.30% 1.23% 1.01% 1.09% 1.05% All other Total LHFI at 1.22% 6/30/24 Office CRE Mix 1.02% 0.96% loans CRE Retail ($306B) 15%
Slide 21: Consumer and Small Business Banking
Consumer and Small Business Banking Represents performance for Branch and Premier Banking, Consumer Lending, and Small Business Banking Metrics Commentary – Net income of $898 million, compared to $879 million in the prior quarter Income statement ($ MM) 2Q24 vs. 1Q24 vs. 2Q23 – Net interest income
Slide 22: Wholesale Banking
Wholesale Banking Represents performance for Commercial Banking, Corporate and Investment Banking, CRE, Wholesale Payments, and Wealth Metrics Commentary – Net income of $954 million, compared to $884 million in the prior quarter Income statement ($ MM) 2Q24 vs. 1Q24 vs. 2Q23 – Net interest income o
Slide 23: Preferred dividend
Preferred dividend 3Q24 4Q24 1Q25 2Q25 Estimated dividends based on projected interest rates $106 $77 $126 $75 and amounts outstanding ($ MM) Estimates assume forward-looking interest rates as of 6/30/24. Actual interest rates could vary significantly causing dividend payments to differ from the est
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations
Slide 25: Non-GAAP reconciliations: Adjusted Net Income and Diluted EPS
Non-GAAP reconciliations Adjusted Net Income and Diluted EPS $ in millions, except per share data, shares in thousands Quarter Ended Year-to-Date June 30 March 31 Dec. 31 Sept. 30 June 30 June 30 June 30 2024 2024 2023 2023 2023 2024 2023 Net income (loss) available to common shareholders from conti
Slide 26: Non-GAAP reconciliations: Efficiency ratio and fee income ratio
Non-GAAP reconciliations Efficiency ratio and fee income ratio from continuing operations $ in millions Quarter Ended Year-to-Date June 30 March 31 Dec. 31 Sept. 30 June 30 June 30 June 30 2024 2024 2023 2023 2023 2024 2023 Efficiency ratio numerator - noninterest expense - GAAP $ 3,094 $ 2,953 $ 9,
Slide 27: Non-GAAP reconciliations: Pre-provision net revenue
Non-GAAP reconciliations Pre-provision net revenue $ in millions Quarter Ended Year-to-Date June 30 March 31 Dec. 31 Sept. 30 June 30 June 30 June 30 2024 2024 2023 2023 2023 2024 2023 Net income from continuing operations $ (3,906) $ 1,133 $ (5,191) $ 1,109 $ 1,169 $ (2,773) $ 2,579 Provision for c
Slide 28: Non-GAAP reconciliations: Tangible common equity
Non-GAAP reconciliations Calculations of tangible common equity and related measures $ in millions, except per share data, shares in thousands As of / Quarter Ended Year-to-Date June 30 March 31 Dec. 31 Sept. 30 June 30 June 30 June 30 2024 2024 2023 2023 2023 2024 2023 Common shareholders’ equity $
Slide 29: To inspire and build better lives and communities
To inspire and build better lives and communities