Truist Financial Corporation · NYSE:TFC
Truist Financial — Barclays Global Financial Services Conference 2023
14 slides from Truist Financial's conference presentation, Sep 11, 2023
Slide 1: Barclays Global Financial Services Conference
Barclays Global Financial Services Conference Bill Rogers Chairman & CEO September 11, 2023
Slide 2: 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 “anticipates,” “believes,” “estimates,” “
Slide 3: Purpose, Mission and Values
Purpose Inspire and build better lives and communities Mission Provide distinctive, secure, and successful client experiences through touch and technology. Clients Create an inclusive and energizing environment that empowers teammates to learn, grow, and have meaningful careers. Teammates Optimize l
Slide 4: Investment thesis
4 Investment thesis What we’ve said Purpose-Driven Culture Exceptional Company Investing in the Future – Inspire and build better lives and communities – Optimize long-term value for all stakeholders through safe, sound, and ethical practices – Attract and retain top talent – Continued strong sustai
Slide 5: Committed to delivering results
COMMITTED TO DELIVERING RESULTS N W Simplify the business Take out costs and lower expense growth in 2024+ Accelerate franchise momentum Improve capital position Align compensation to shareholder return 5 1 2 3 4 5
Slide 6: Benefits of Simplification
6 Benefits of Simplification Drive efficiency Greater accountability and focus Enhance revenue opportunities Portfolio optimization and rationalization Resource allocation Reduce risk and improve control function Fewer Layers of Management Leadership Structure at Merger Close (4Q19) Leadership Struc
Slide 7: ~$750MM Gross Cost Saves Program is Underway
~$750MM Gross Cost Saves Program is Underway ~$750 million gross cost save program is underway ~$750 million gross cost saves exclude one-time restructuring charges (e.g. severance) Sizable reductions in force (3Q23-1Q24) Organizational alignment and simplification Rationalize technology spend 7 – S
Slide 8: Adjusted Annual Expense Growth Rates
Adjusted Annual Expense Growth Rates 8 3% Core 1% Pension 1% FDIC 1% Acquisitions 1% Min Wage ~0-1% 2023 YoY 2024 YoY ~7% Expense growth rate in 2024 will be significantly lower than 2023 growth rate Reflects partial realization of ~$750 million gross cost savings program Goal is to take out costs a
Slide 9: Corporate & Commercial Banking, Payments and Retail momentum
Corporate & Commercial Banking Payments 4% 17% 58% Commercial Card Merchant Treasury – Significant payments revenue potential within existing client base – Increased sales force by 10% for advisory and specialized coverage – YoY pipeline increased by 30%+ – Multi-year investments will enhance capabi
Slide 10: Selected 9-Figure Incremental Opportunities
Selected 9-Figure Incremental Opportunities (>$100MM annually) Early High Complexity Growth Established Transition Cumulative Client Lifetime Value Low Complexity Retail & Small Business Banking Commercial Community Banking is the Sweet Spot For Integrated Relationship Management Deposits / Payments
Slide 11: CET1 capital build and TIH stake flexibility
2Q23 CET1 Organic capital generation & managed RWA growth FDIC assessment 4Q23 CET1 Estimate if remaining TIH ownership divested 11 Truist continues to build capital and maintains significant strategic flexibility with its remaining stake in TIH ~0.5% 9.6% ~10% ~2.0%+ ~(0.1%) ~(0.1%) AOCI should dec
Slide 12: Revised Compensation Metrics Aligned to TSR
1 TSR modifier includes a 20% increase to payout for top quartile TSR and a 20% decrease to payout for bottom quartile TSR. Annual Incentive Plan Performance-Based Long-Term Incentive Plan 50% EPS Target 30% Relative ROAA (> Peer Median) 50% Relative ROATCE (> Peer Median) 50% Relative ROACE (> Peer
Slide 13: Committed to delivering results now
13 Committed to delivering results now Simplify the business Take out costs and lower expense growth in 2024+ Accelerate franchise momentum Improve capital position Align compensation to shareholder return Drives higher total shareholder return – Create a platform for realizing significant cost savi
Slide 14: To inspire and build better lives and communities
To inspire and build better lives and communities
Truist Financial — Barclays Global Financial Services Conference 2023 on 6ix