Truist Financial Corporation · NYSE:TFC
Truist Financial — Q4 2024 Earnings Presentation
26 slides from Truist Financial's earnings presentation, Jan 17, 2025
Slide 1: Fourth Quarter 2024 Earnings Conference Call
Fourth Quarter 2024 Fourth Quarter Earnings 2024 Conference Call Earnings Conference Call Bill Rogers – Chairman & CEO Bill Rogers - Chairman Mike Maguire – CFO& CEO Mike Maguire - CFO January 17, 2025 January 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: Solid 4Q24 and 2024 results
Solid 4Q24 and 2024 results Executed top strategic priorities in 2024 4Q24 results 2024 results GAAP / adjusted GAAP / adjusted – Strong 4Q24 momentum sets the stage for growth in 2025 – Delivered on expense commitments while investing in talent, technology, and risk infrastructure $1.2 billion / $1
Slide 6: Business segment update
Business segment update Consumer & Small Business Banking Wholesale Banking – Positive 2024 net new checking growth, 104K in total, up 8.5K – Grew average deposits 3% vs. 3Q24, including positive growth in vs. 4Q23 noninterest-bearing demand – Consumer loan production increased 5% linked quarter – I
Slide 7: Empowering clients in digital
Empowering clients in digital Strategic business value 1 2 Mobile app users Digital transactions (in millions) (in millions) Driving digital growth – Experience enhancements and performance +13% marketing enabled year-over-year increases in +6% digital account production up 13%, and new 85 household
Slide 8: Performance highlights
Performance highlights $ in millions, except per share data Earnings GAAP / Unadjusted 4Q24 3Q24 4Q23 2024 2023 Revenue $5,111 $5,140 $4,940 $13,490 $20,242 – 4Q24 net income available to common shareholders of $1.2 billion, or $0.91 per share Expense $3,035 $2,927 $9,557 $12,009 $18,678 PPNR $2,076
Slide 9: Average loans and leases HFI
Average loans and leases HFI Average loan balances stable while end-of-period loans increased 1.1% vs. 3Q24 due to higher C&I and residential mortgage 5-quarter trend Loan portfolio composition ($ in millions) 2% 10% Credit card Other consumer $313 $309 $306 $303 $303 $123 $121 $120 $120 $121 7% Ind
Slide 10: Average deposits
Average deposits Higher linked quarter average deposits driven by noninterest-bearing, interest checking, and money market and savings 5-quarter trend Deposit mix ($ in millions) 28% 35% DDA Money market and savings $395 $389 $388 $384 $390 $390B $115 Average $109 $108 $106 $108 deposits 28% 9% Time
Slide 11: Net interest income and net interest margin
Net interest income and net interest margin Earning asset growth and fixed rate asset repricing will drive NII growth in 2025 5-quarter net interest income and net interest margin trend Earning asset growth and fixed rate asset repricing summary ~ ~ ($ in millions) ($ in billions) 3 End-of-period lo
Slide 12: Noninterest income
Noninterest income Investment banking and trading income drove a 6.2% year-over-year growth in adjusted fees Quarterly and yearly trend Vs. linked quarter ($ in millions) – Noninterest income decreased 0.9% vs. 3Q24, primarily driven by lower investment banking and trading income, partially offset b
Slide 13: Noninterest expense
Noninterest expense Prudent expense management resulted in lower year-over-year adjusted expenses Quarterly and yearly trend Vs. linked quarter ($ in millions) – Adjusted noninterest expense increased 4.0% vs. 3Q24, primarily ~ driven by higher professional fees and outside processing ~ $18,678 expe
Slide 14: Asset quality
Asset quality Asset quality metrics remained relatively stable Net charge-offs Provision for credit losses ($ in millions) ($ in millions) Increase in linked-quarter net charge-offs driven by C&I and seasonally higher indirect auto losses Higher provision driven by an increase in the allowance $572
Slide 15: Capital
Capital Well positioned to grow and return capital to shareholders 2024 capital walk Capital actions and opportunities – CET1 ratio decreased 10 bps vs. 9/30/24 as capital returned to shareholders and an increase in RWA were partially offset by earnings – CET1 ratio increased 140 bps vs. 12/31/23 to
Slide 16: 1Q25 and 2025 outlook
1Q25 and 2025 outlook $ in billions unless otherwise noted 1Q25 outlook 13.9%4Q24 actuals (compared to 4Q24) Adjusted revenue (TE): $5.1 Down ~2% Adjusted expenses: $3.0 Down ~3% (includes amortization of intangibles) (includes amortization of intangibles) Full year 2024 actuals Full year 2025 outlo
Slide 17: Key takeaways
Key takeaways 2025 strategic priorities Executing on strategic initiatives within high growth markets Driving positive operating leverage Investing in talent, technology, and risk infrastructure Maintaining expense, credit, and risk discipline Returning capital to shareholders 17
Slide 18: Appendix
Appendix
Slide 19: Commercial real estate update
Commercial real estate update CRE represents 9.4% of total loans HFI, including Office at 1.5% 5-quarter total CRE trends Multifamily 36% 20.3% 18.2% 13.7% 13.5% Total LHFI at 11.7% Office All other 12/31/24 CRE 1.30% 1.23% 14% CRE Mix 1.05% 1.05% 1.04% loans ($306.4B) 9.4% Retail 90.6% CRE Office 1
Slide 20: Consumer and Small Business Banking
Consumer and Small Business Banking Represents performance for Branch Banking, Digital Banking, Premier Banking, Small Business Banking, and National Consumer Lending Metrics Commentary – Net income of $792 million, compared to $872 million in the prior quarter Income statement ($ MM) 4Q24 vs. 3Q24
Slide 21: Wholesale Banking
Wholesale Banking Represents performance for Commercial Banking, Corporate and Investment Banking, CRE, Wholesale Payments, and Wealth Metrics Commentary – Net income of $1.0 billion, compared to $1.1 billion in the prior quarter Income statement ($ MM) 4Q24 vs. 3Q24 vs. 4Q23 – Net interest income o
Slide 22: Preferred dividend
Preferred dividend 1Q25 2Q25 3Q25 4Q25 Estimated dividends based on projected interest rates $104 $60 $104 $59 and amounts outstanding ($ MM) Estimates assume forward-looking interest rates as of 12/31/24. Actual interest rates could vary significantly causing dividend payments to differ from the es
Slide 23: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted Net Income and Diluted EPS $ in millions, except per share data, shares in thousands Quarter Ended Year-to-Date Dec. 31 Sept. 30 June 30 March 31 Dec. 31 Dec. 31 Dec. 31 2024 2024 2024 2024 2023 2024 2023 Net income (loss) available to common shareholders from conti
Slide 24: Non-GAAP reconciliations
Non-GAAP reconciliations Efficiency ratio and fee income ratio from continuing operations $ in millions Quarter Ended Year-to-Date Dec. 31 Sept. 30 June 30 March 31 Dec. 31 Dec. 31 Dec. 31 2024 2024 2024 2024 2023 2024 2023 Efficiency ratio numerator - noninterest expense - unadjusted $ 3,035 $ 2,92
Slide 25: Non-GAAP reconciliations
Non-GAAP reconciliations Pre-provision net revenue $ in millions Quarter Ended Year-to-Date Dec. 31 Sept. 30 June 30 March 31 Dec. 31 Dec. 31 Dec. 31 2024 2024 2024 2024 2023 2024 2023 Net income from continuing operations $ 1,289 $ 1,439 $ (3,906) $ 1,133 $ (5,191) $ (45) $ (1,503) Provision for cr
Slide 26: 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 Year-to-Date Dec. 31 Sept. 30 June 30 March 31 Dec. 31 Dec. 31 Dec. 31 2024 2024 2024 2024 2023 2024 2023 Common shareholders’ equity $