Truist Financial Corporation · NYSE:TFC
Truist Financial — Merger or Acquisition (February 2024)
11 slides from Truist Financial's merger presentation, Feb 20, 2024
Slide 1: Sale of Truist Insurance Holdings Strengthens Capital and Enhances Strategic Flexibility
Sale of Truist Insurance Holdings Strengthens Capital and Enhances Strategic Flexibility Bill Rogers Chairman & CEO Mike Maguire CFO February 20, 2024
Slide 2: Forward-looking statements
Forward - looking statements 2 This presentation contains “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 , regarding the financial condition, results of operations, business plans and the future performance of Truist . Words such as “anticip
Slide 3: Significantly improves Truist's relative capital position
3 Significantly improves Truist’s relative capital position +230 bps of CET1 Current Basel III rules 2Q24 Anticipated closing +33% TBV per share accretion 3 $15.5B Implied enterprise valuation Sale of Truist Insurance Holdings (TIH) strengthens Truist’s balance sheet and enhances strategic flexibili
Slide 4: Overview: Key transaction details and financial impact
Overview Key transaction details x Selling remaining stake in TIH to an investor group led by Stone Point Capital; Clayton, Dubilier & Rice; and other co - investors x Implied enterprise valuation of $15.5B represents ~18x 2023 core EBITDA (1) x 100% cash consideration x Estimated closing during 2Q2
Slide 5: Sale of TIH seizes capital advantage for Truist and offers ability to maintain earnings
value per share $21.83 $28.96 $28.96 12/31/2023 Pro forma for TIH sale Current TIH 2024 co nt ributi o n EPS proc e eds and $23B balance sheet r e pos i t io n i n g Invest P ro f orma 2024 pro ~($0.45) ~$0.25 ~$0.20 6.1% 8.7% 9.1% 12/31/2023 Pro forma for TIH sale Sale of TIH seizes capital advanta
Slide 6: Sale of TIH meaningfully improves Truist's capital position relative to peers
5.7% 6.1% 6.4% 7.0% 7.5% 7.8% 8.2% 8.7% 9.1% 9.5% 10.0% 10.1% 11.5% Sale of TIH meaningfully improves Truist’s capital position relative to peers 6 Notes: 1. Includes illustrative balance sheet repositioning of approximately $23 billion of current market value of securities ($29 billion of book valu
Slide 7: Sale of TIH strengthens capital and enhances strategic flexibility
Sale of TIH strengthens capital and enhances strategic flexibility 7 Note: Source: S&P Global Market Intelligence Population growth expected to exceed 250,000 over the next five years Truist branch footprint (2,001) Capitalizing on leading share in growth markets 7th largest U.S. commercial bank wit
Slide 8: Appendix
Appendix
Slide 9: Illustrative pro forma financial impacts
Illustrative pro forma financial impacts After - tax cash proceeds Capital creation TIH earnings contribution to Parent build - up (2) 9 Key Items $ in B Total enterprise valuation $ 15 .5 Preferred redemption (5.0) Net purchase price adjustments 0.1 Total equity value 10.6 Minority stake sold (2.2)
Slide 10: EBITDA reconciliation
10 EBITDA reconciliation $ in MM Partnership Corporation 4Q23 3Q23 2Q23 1Q23 FY 2023 Interest Income $ 21 $ 25 $ 19 $ - $ 65 Noninterest Income 830 801 944 817 3,392 Total Revenue 851 826 963 817 3,457 Segment net income (loss) – GAAP 1 17 155 109 282 Provision (benefit) for income taxes 1 3 - 36 40
Slide 11: To inspire and build better lives and communities
To inspire and build better lives and communities
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