Truist Financial Corporation · NYSE:TFC
Truist Financial — Q1 2025 Earnings Presentation
25 slides from Truist Financial's earnings presentation, Apr 17, 2025
Slide 1: First Quarter 2025 Earnings Conference Call
Fourth Quarter 2024 First QuarterConference Earnings 2025 Call Earnings Conference Call Bill Rogers – Chairman & CEO Bill Rogers - Chairman Mike Maguire – CFO& CEO Mike Maguire - CFO April 17, 2025 April 17, 2025
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, Mission and Values
Purpose Inspire and build better lives and communities Mission Clients Teammates Stakeholders Provide distinctive, secure, Create an inclusive and Optimize long-term value for and successful client energizing environment that stakeholders through safe, experiences through touch empowers teammates to
Slide 5: 1Q25 key takeaways
1Q25 key takeaways Reported solid 1Q25 results By the numbers – Grew average loans and deposits on a linked-quarter basis – Maintained expense discipline and focus on improving profitability $1.2 billion Net income available to common shareholders – Delivered strong asset quality metrics – Repurchas
Slide 6: Business segment update
Business segment update Consumer & Small Business Banking Wholesale Banking – Increased consumer loan production $3.7 billion, or 47% year-over- – Increased average wholesale loans by $2.3 billion, or 1.3% linked year with favorable mix of new production driving higher spreads quarter driven primari
Slide 7: Elevating the digital client journey
Elevating the digital client journey 1 Digital share of new-to-bank clients Mobile app users (in millions) Driving digital growth – Experience enhancements and performance +6% marketing drove 13% year-over-year growth in +700 bps digital account sales 5.2 5.1 39% 40% 5.0 – New-to-bank clients acquir
Slide 8: Performance highlights
Performance highlights $ in millions, except per share data Earnings GAAP / Unadjusted 1Q25 4Q24 1Q24 – 1Q25 net income available to common Revenue $4,947 $5,111 $4,871 shareholders of $1.2 billion, or $0.87 per share Expense $2,906 $3,035 $2,953 – Includes $0.02 per share of after-tax restructuring
Slide 9: Average loans and leases HFI
Average loans and leases HFI Average loan balances up 1.1% linked quarter driven by growth in C&I, residential mortgage, and indirect auto 5-quarter trend Loan portfolio composition ($ in billions) 2% 9% Credit card Other consumer $309 $306 $303 $303 $306 $121 $120 $120 $121 $123 8% Indirect auto 3%
Slide 10: Average deposits
Average deposits Average deposits up modestly linked quarter 5-quarter trend Deposit mix ($ in billions) 27% 35% DDA Money market and savings $389 $388 $384 $390 $392 $392B Average $109 $108 $106 $108 $106 deposits 28% 10% Interest Time $280 $280 $278 $282 $286 deposits checking 1 5-quarter cumulati
Slide 11: Net interest income and net interest margin
Net interest income and net interest margin NII decline in the first quarter largely impacted by two fewer days ~ 5-quarter net interest income and net interest margin trend Fixed rate asset repricing summary ($ in millions) ($ in billions) $135 – Net interest income expected to increase ~3% $32 yea
Slide 12: Noninterest income
Noninterest income Noninterest income impacted by lower other income Current trend Vs. linked quarter ($ in millions) – Noninterest income declined 5.3%, primarily driven by lower other income partially offset by higher investment banking and trading revenue $1,446 $1,470 – The decline in other inco
Slide 13: Noninterest expense
Noninterest expense Expenses remain well controlled Current trend Vs. linked quarter ($ in millions) – Adjusted noninterest expense declined 5.4%, primarily driven by lower other expense, professional fees and outside processing, and equipment expense $2,953 $3,035 – Other expense decreased due to l
Slide 14: Asset quality
Asset quality Asset quality remained strong Net charge-offs Provision for credit losses ($ in millions) ($ in millions) $490 $453 $454 $500 $442 $418 $451 $448 $471 $458 0.64% 0.58% 0.59% 0.60% 0.55% 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 NCO NCO ratio Nonperforming loans / LHFI ALLL ($ i
Slide 15: Capital
Capital Well positioned for a wide array of economic environments CET1 ratio Capital actions and commentary – CET1 ratio decreased 20 bps vs. 12/31/24 as capital returned to shareholders, an increase in RWA, and the final CECL phase-in were 11.5% 11.3% 10.1% partially offset by current quarter earni
Slide 16: 2Q25 and 2025 outlook
2Q25 and 2025 outlook Updating outlook to reflect lower investment banking and trading activity and lower medium-term interest rates 1Q25 actuals 2Q25 outlook 13.9% (compared to 1Q25) Adjusted revenue (TE): $4.9 billion Up 1 to 2% Adjusted expenses: $2.9 billion Up 2 to 3% (includes amortization of
Slide 17: Key takeaways
Key takeaways 2025 strategic priorities Executing on strategic growth initiatives Driving positive operating leverage through revenue growth and expense discipline Investing in talent, technology, and risk infrastructure Maintaining credit and risk discipline Returning capital to shareholders 17
Slide 18: Appendix
Appendix
Slide 19: Consumer and Small Business Banking
Consumer and Small Business Banking Represents Branch Banking, Digital Banking, Premier Banking, Small Business Banking, and National Consumer Lending Metrics Commentary – Net income of $602 million, compared to $717 million in the prior quarter Income statement ($ MM) 1Q25 vs. 4Q24 vs. 1Q24 – Net i
Slide 20: Wholesale Banking
Wholesale Banking Represents Commercial & Corporate Banking, Investment Banking & Capital Markets, CRE, Wholesale Payments, and Wealth Metrics Commentary – Net income of $888 million, compared to $975 million in the prior quarter Income statement ($ MM) 1Q25 vs. 4Q24 vs. 1Q24 – Net interest income o
Slide 21: Preferred dividend
Preferred dividend 2Q25 3Q25 4Q25 1Q26 Estimated dividends based on projected interest rates $60 $104 $59 $104 and amounts outstanding ($ MM) Estimates assume forward-looking interest rates as of 3/31/25. Actual interest rates could vary significantly causing dividend payments to differ from the est
Slide 22: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted Net Income and Diluted EPS $ in millions, except per share data, shares in thousands Quarter Ended March 31 Dec. 31 Sept. 30 June 30 March 31 2025 2024 2024 2024 2024 Net Income available to common shareholders from continuing operations $ 1,157 $ 1,229 $ 1,333 $ (3
Slide 23: Non-GAAP reconciliations
Non-GAAP reconciliations Efficiency ratio and fee income ratio from continuing operations $ in millions Quarter Ended March 31 Dec. 31 Sept. 30 June 30 March 31 2025 2024 2024 2024 2024 Efficiency ratio numerator - noninterest expense - unadjusted $ 2,906 $ 3,035 $ 2,927 $ 3,094 $ 2,953 Restructurin
Slide 24: Non-GAAP reconciliations
Non-GAAP reconciliations Pre-provision net revenue $ in millions Quarter Ended March 31 Dec. 31 Sept. 30 June 30 March 31 2025 2024 2024 2024 2024 Net income from continuing operations $ 1,261 $ 1,289 $ 1,439 $ (3,906) $ 1,133 Provision for credit losses 458 471 448 451 500 Provision for income taxe
Slide 25: Non-GAAP reconciliations
Non-GAAP reconciliations Calculations of tangible common equity and related measures $ in millions, except per share data, shares in thousands As of / Quarter Ended March 31 Dec. 31 Sept. 30 June 30 March 31 2025 2024 2024 2024 2024 Common shareholders’ equity $ 58,728 $ 57,772 $ 59,023 $ 57,154 $ 5