Truist Financial Corporation · NYSE:TFC
Truist Financial — Q3 2024 Earnings Presentation
26 slides from Truist Financial's earnings presentation, Oct 17, 2024
Slide 1: Third Quarter 2024 Earnings Conference Call
Third Quarter 2024 Earnings Conference Call Bill Rogers – Chairman & CEO Mike Maguire – CFO October 17, 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: 3Q24 key takeaways
3Q24 key takeaways $ in millions, except per share data – Strong third quarter results driven by solid revenue growth, $1,336 $1,307 continued expense discipline, and stable asset quality Net income available Adj. net income available to common shareholders to common shareholders – Returned $1.2 bil
Slide 6: Business segment update
Business segment update Consumer & Small Business Banking Wholesale Banking – Consumer loan production increased 3% – Wholesale loan production increased linked-quarter 4% but was offset by lower utilization and continued paydowns driven in – Continued positive trend in client part by strong capital
Slide 7: Client-centered design accelerates growth
Client-centered design accelerates growth Mobile app users1 Digital transactions2 Attracting relationships through seamless experiences (in millions) (in millions) – Continued optimization of the digital account opening experience fuels +6% new client acquisition through mobile 5.0 channels 4.9 +15%
Slide 8: 3Q24 performance highlights
3Q24 performance highlights $ in millions, except per share data Summary income statement Commentary GAAP / Unadjusted 3Q24 2Q24 3Q23 Earnings Revenue $5,140 $(1,632) $4,926 – Net income available to common shareholders was $1.3 billion, or $0.99 per share, which included: Expense $2,927 $3,094 $3,0
Slide 9: Average loans and leases HFI
Average loans and leases HFI $ in billions 5-quarter trend Vs. linked quarter – Average loans decreased $3.0 billion, or 1.0%, from 2Q24 – Average commercial loans decreased $3.2 billion, or 1.7% – C&I down $2.9 billion driven by lower line utilization $318 – CRE down ~$500 million driven by continu
Slide 10: Average deposits
Average deposits $ in billions 5-quarter trend Vs. linked quarter – Average deposits decreased $3.7 billion, or 1.0% – Average client deposits declined $2.0 billion driven by a: – $1.6 billion decline in average noninterest-bearing deposits, and $401 $395 $389 $388 $384 – $1.4 billion decline in ret
Slide 11: Net interest income and net interest margin
Net interest income and net interest margin $ in millions 5-quarter net interest income and net interest margin trend Vs. linked quarter – Net interest income increased 2.2% due to the impact of the proceeds from the sale of TIH and balance sheet repositioning, partially offset by the impact of cash
Slide 12: Noninterest income
Noninterest income $ in millions Noninterest income Vs. linked quarter 3Q24 2Q24 3Q23 – Noninterest income increased $6.7 billion as the prior quarter was negatively impacted by $6.7 billion of investment securities losses related to the balance sheet repositioning Wealth management income $ 350 $ 3
Slide 13: Noninterest expense
Noninterest expense $ in millions Noninterest expense Vs. linked quarter 3Q24 2Q24 3Q23 – Noninterest expense decreased $167 million, or 5.4% Personnel expense $ 1,628 $ 1,661 $ 1,669 – Driven primarily by a $150 million charitable contribution to the Truist Foundation in the prior quarter Professio
Slide 14: Asset quality
Asset quality $ in millions Net charge-offs Provision for credit losses Linked-quarter decline driven by lower CRE net charge-offs Provision for credit losses was relatively stable on a linked-quarter basis $490 $572 453 $442 $405 $418 $497 $500 0.64% $451 $448 0.57% 0.58% 0.55% 0.51% 3Q23 4Q23 1Q24
Slide 15: Capital
Capital 3Q24 capital walk Commentary – CET1 capital ratio remained stable at 11.6% as current period earnings were offset by capital returned to shareholders – Returned $1.2 billion of capital to shareholders through our common stock dividend and $500 million of share repurchases +0.30% (0.20%) – In
Slide 16: 4Q24 and 2024 outlook
4Q24 and 2024 outlook $ in billions unless otherwise noted 3Q24 actuals 13.9% 4Q24 outlook Adjusted revenue (TE) $5.1 Down ~1.5% 4Q24 compared to 3Q24 Adjusted expenses $2.8 Up ~4% Tax rate 16% effective; 18% FTE ~17.5% effective; ~20% FTE Full year 2023 actuals Full year 2024 outlook Adjusted reven
Slide 17: Why Truist?
Why Truist? Top 10 U.S. Relative capital Significant opportunity Focused on Strong track record commercial bank advantage positions to improve delivering positive on asset quality and located in high us well to pursue profitability as we operating leverage sound risk growth markets with growth and r
Slide 18: Appendix
Appendix
Slide 19: Commercial real estate update
Commercial real estate update CRE represents 9.5% of total loans HFI, including Office at 1.5% 5-quarter total CRE trends Multifamily 35% 18.2% 13.7% 13.5% 11.3% 11.7% All other Total LHFI at Office 9/30/24 CRE Mix 1.09% 1.30% 1.23% loans CRE 15% Retail 1.05% 1.05% 90.5% ($303.2B) 9.5% 13% CRE Offic
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 $865 million, down $24 million from the prior quarter Income statement ($ MM) 3Q24 vs. 2Q24 vs. 3Q
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 $1.1 billion, compared to $1.0 billion in the prior quarter Income statement ($ MM) 3Q24 vs. 2Q24 vs. 3Q23 – Net interest income o
Slide 22: Preferred dividend
Preferred dividend 4Q24 1Q25 2Q25 3Q25 Estimated dividends based on projected interest rates $76 $118 $73 $116 and amounts outstanding ($ MM) Estimates assume forward-looking interest rates as of 9/30/24. Actual interest rates could vary significantly causing dividend payments to differ from the est
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 Sept. 30 June 30 March 31 Dec. 31 Sept. 30 Sept. 30 Sept. 30 2024 2024 2024 2023 2023 2024 2023 Net income (loss) available to common shareholders from co
Slide 24: Non-GAAP reconciliations
Non-GAAP reconciliations Efficiency ratio and fee income ratio from continuing operations $ in millions Quarter Ended Year-to-Date Sept. 30 June 30 March 31 Dec. 31 Sept. 30 Sept. 30 Sept. 30 2024 2024 2024 2023 2023 2024 2023 Efficiency ratio numerator - noninterest expense - unadjusted $ 2,927 $ 3
Slide 25: Non-GAAP reconciliations
Non-GAAP reconciliations Pre-provision net revenue $ in millions Quarter Ended Year-to-Date Sept. 30 June 30 March 31 Dec. 31 Sept. 30 Sept. 30 Sept. 30 2024 2024 2024 2023 2023 2024 2023 Net income from continuing operations $ 1,439 $ (3,906) $ 1,133 $ (5,191) $ 1,109 $ (1,334) $ 3,688 Provision fo
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 Sept. 30 June 30 March 31 Dec. 31 Sept. 30 Sept. 30 Sept. 30 2024 2024 2024 2023 2023 2024 2023 Common shareholders’ equit