Truist Financial Corp 8-K, filed Jan 17, 2025
Truist Financial Corp (TFC)
8-K
2025-01-17
For: 2025-01-17
View Original
Added on
April 05, 2026
About this 8-K
Truist Financial Corp filed this 8-K on January 17, 2025.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________________
Form 8-K
Current Report
_____________________________________________
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
_____________________________________________
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices) | (Zip Code) | |||||||
(844 ) 487-8478
(Registrant’s telephone number, including area code)
_____________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
ITEM 2.02 Results of Operations and Financial Condition.
On January 17, 2025, Truist Financial Corporation (“Truist”) issued a press release announcing its reporting of fourth quarter 2024 results and posted on its website its fourth quarter 2024 Earnings Release, Quarterly Performance Summary, and Earnings Release Presentation. The materials contain forward-looking statements regarding Truist and include cautionary language identifying important factors that could cause actual results to differ materially from those anticipated. The Earnings Release, Quarterly Performance Summary, and Earnings Release Presentation are furnished as Exhibits 99.1, 99.2, and 99.3, respectively. Consequently, they are not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. Such materials may only be incorporated by reference into another filing under the Exchange Act or Securities Act of 1933 if such subsequent filing specifically references this Form 8-K. All information in the Earnings Release, Quarterly Performance Summary, and Earnings Release Presentation speaks as of the date thereof, and Truist does not assume any obligation to update such information in the future.
ITEM 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description of Exhibit | |||||||
| Earnings Release issued January 17, 2025. | ||||||||
| Quarterly Performance Summary issued January 17, 2025. | ||||||||
| Earnings Release Presentation issued January 17, 2025. | ||||||||
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
TRUIST FINANCIAL CORPORATION | ||||||||
(Registrant) | ||||||||
| By: | /s/ Cynthia B. Powell | |||||||
Cynthia B. Powell | ||||||||
Executive Vice President and Corporate Controller | ||||||||
(Principal Accounting Officer) | ||||||||
Date: January 17, 2025
`
 | News Release | ||||||||||
Truist reports fourth quarter 2024 results | |||||||||||
Net income available to common shareholders of $1.2 billion, or $0.91 per share | Average deposits increased $5.7 billion while total deposit costs were down 19 basis points | Repurchased $500 million in common shares; Dividend and total payout ratios of 57% and 98% | |||||||||
4Q24 Key Financial Data | 4Q24 and 2024 Performance Highlights(4) | ||||||||||
| (Dollars in billions, except per share data) | 4Q24 | 3Q24 | 4Q23 | FY2024 | FY2023 | ||||||||||||||||||||||||
| Summary Income Statement | |||||||||||||||||||||||||||||
| Net interest income - TE | $ | 3.64 | $ | 3.66 | $ | 3.58 | $ | 14.30 | $ | 14.74 | |||||||||||||||||||
| Noninterest income | 1.47 | 1.48 | 1.36 | (0.81) | 5.50 | ||||||||||||||||||||||||
| Total revenue - TE | 5.11 | 5.14 | 4.94 | 13.49 | 20.24 | ||||||||||||||||||||||||
| Noninterest expense | 3.04 | 2.93 | 9.56 | 12.01 | 18.68 | ||||||||||||||||||||||||
| Net income (loss) from continuing operations | 1.29 | 1.44 | (5.19) | (0.05) | (1.50) | ||||||||||||||||||||||||
| Net income from discontinued operations | (0.01) | 0.00 | 0.10 | 4.89 | 0.46 | ||||||||||||||||||||||||
| Net income | 1.28 | 1.44 | (5.09) | 4.84 | (1.05) | ||||||||||||||||||||||||
| Net income available to common shareholders | 1.22 | 1.34 | (5.17) | 4.47 | (1.45) | ||||||||||||||||||||||||
Adjusted net income available to common shareholders(1) | 1.21 | 1.31 | 1.09 | 4.97 | 4.81 | ||||||||||||||||||||||||
PPNR - unadjusted(1)(2) | 2.08 | 2.21 | (4.62) | 1.48 | 1.56 | ||||||||||||||||||||||||
PPNR - adjusted(1)(2) | 2.16 | 2.31 | 2.22 | 8.81 | 8.87 | ||||||||||||||||||||||||
| Key Metrics | |||||||||||||||||||||||||||||
| Diluted EPS | $ | 0.91 | $ | 0.99 | $ | (3.87) | $ | 3.36 | $ | (1.09) | |||||||||||||||||||
Adjusted diluted EPS(1) | 0.91 | 0.97 | 0.81 | 3.69 | 3.59 | ||||||||||||||||||||||||
| BVPS | 43.90 | 44.46 | 39.31 | ||||||||||||||||||||||||||
TBVPS(1) | 30.01 | 30.64 | 21.83 | ||||||||||||||||||||||||||
| ROCE | 8.4 | % | 9.1 | % | (36.6) | % | 8.0 | % | (2.6) | % | |||||||||||||||||||
ROTCE(1) | 12.9 | 13.8 | 15.0 | 13.3 | 18.9 | ||||||||||||||||||||||||
Efficiency ratio - unadjusted(2) | 60.0 | 57.5 | NM | 90.4 | 93.3 | ||||||||||||||||||||||||
Efficiency ratio - adjusted(1)(2) | 57.7 | 55.2 | 55.0 | 56.3 | 56.2 | ||||||||||||||||||||||||
Fee income ratio - unadjusted(2) | 29.0 | 29.2 | 27.9 | NM | 27.5 | ||||||||||||||||||||||||
Fee income ratio - adjusted(1)(2) | 28.8 | 28.9 | 27.6 | 29.0 | 27.2 | ||||||||||||||||||||||||
NIM - TE(2) | 3.07 | 3.12 | 2.95 | 3.03 | 2.98 | ||||||||||||||||||||||||
| NCO ratio | 0.59 | 0.55 | 0.57 | 0.59 | 0.50 | ||||||||||||||||||||||||
| ALLL ratio | 1.59 | 1.60 | 1.54 | ||||||||||||||||||||||||||
CET1 ratio(3) | 11.5 | 11.6 | 10.1 | ||||||||||||||||||||||||||
| Average Balances | |||||||||||||||||||||||||||||
| Assets | $ | 527 | $ | 519 | $ | 540 | $ | 526 | $ | 553 | |||||||||||||||||||
| Securities | 125 | 117 | 134 | 124 | 138 | ||||||||||||||||||||||||
| Loans and leases | 305 | 305 | 314 | 307 | 322 | ||||||||||||||||||||||||
| Deposits | 390 | 384 | 395 | 388 | 401 | ||||||||||||||||||||||||
Amounts may not foot due to rounding.
(1)Represents a non-GAAP measure. A reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure is included in the appendix to Truist’s Fourth Quarter 2024 Earnings Presentation.
(2)This metric is calculated based on continuing operations.
(3)Current quarter capital ratios are preliminary.
(4)Comparisons noted in this section summarize changes from fourth quarter of 2024 compared to third quarter of 2024 on a continuing operations basis, unless otherwise noted.
•Net income available to common shareholders was $1.2 billion, or $0.91 per diluted share
◦Full-year net income available to common shareholders was $4.5 billion, or $3.36 per diluted share. Adjusted net income available to common shareholders(1) was $5.0 billion, up 3.3% compared to 2023
•Total TE revenues were down 0.6%
◦TE net interest income decreased 0.4%; net interest margin was down five basis points
◦Noninterest income was down 0.9% due to lower investment banking and trading income, partially offset by higher other income
•Noninterest expense was up 3.7%. Adjusted noninterest expense(1) was up 4.0%, reflecting higher professional fees and outside processing expense and equipment expense, partially offset by lower personnel expense.
•Average loans and leases HFI were flat due to declines in the commercial and industrial and CRE portfolios, offset by growth in the indirect auto, residential mortgage, and other consumer portfolios.
◦End of period loans and leases HFI were $306.4 billion, up $3.3 billion, or 1.1%
•Average deposits increased 1.5% due to increases in interest checking, noninterest-bearing, and money market and savings deposits, partially offset by a decline in time deposits.
◦The average cost of total deposits was 1.89%, down 19 basis points, due to the impact of deposit repricing
•Asset quality remains relatively stable
◦Nonperforming loans to total loans were down one basis point due to a decrease in the commercial and industrial portfolio
◦Loans 90 days or more past due were up two basis points, or up one basis point excluding government guaranteed loans
◦ALLL ratio decreased one basis point
◦Net charge-off ratio of 59 basis points, up four basis points driven by higher net charge-offs in the commercial and industrial and indirect auto portfolios, partially offset by lower net charge-offs in the CRE portfolio
•Capital levels remain strong
◦Repurchased $500 million in common shares, resulting in a dividend and total payout ratio of 57% and 98%, respectively
◦Returned $3.8 billion of capital to common shareholders through our dividend and share repurchases for the full-year 2024
◦Redeemed $750 million of series L preferred shares
◦CET1 ratio(3) was 11.5%
| CEO Commentary | ||
“2024 was an important year for Truist. We added new clients and deepened existing relationships, invested in our core banking business, made enhancements to our technology and risk infrastructure, and maintained our credit and expense discipline. We executed on several important strategic initiatives, including the sale of Truist Insurance Holdings and the repositioning of our balance sheet. These actions increased our capital and further enhanced our ability to support the growth needs of clients, while also returning capital to shareholders.
Going into 2025, we have strong momentum and look forward to growing with our clients in some of the best markets in the country. At our foundation is our purpose to inspire and build better lives and communities. Our dedication to our purpose, along with a clear strategy, deep expertise, seamless teamwork, and client focus positions us to drive our performance and increased profitability in 2025 and beyond.”
— Bill Rogers, Truist Chairman & CEO
`
| Contact: | ||||||||
| Investors: | Brad Milsaps | 770.352.5347 | investors@truist.com | ||||||
| Media: | Shelley Miller | 704.692.1518 | media@truist.com | ||||||
| Net Interest Income, Net Interest Margin, and Average Balances | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 4Q24 | 3Q24 | 4Q23 | Link | Like | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income(1) | $ | 6,230 | $ | 6,407 | $ | 6,324 | $ | (177) | (2.8) | % | $ | (94) | (1.5) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 2,589 | 2,750 | 2,747 | (161) | (5.9) | (158) | (5.8) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income(1) | $ | 3,641 | $ | 3,657 | $ | 3,577 | $ | (16) | (0.4) | $ | 64 | 1.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin(1) | 3.07 | % | 3.12 | % | 2.95 | % | (5) bps | 12 bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Balances(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total earning assets | $ | 472,639 | $ | 466,137 | $ | 481,538 | $ | 6,502 | 1.4 | % | $ | (8,899) | (1.8) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 341,213 | 334,363 | 346,554 | 6,850 | 2.0 | (5,341) | (1.5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Yields / Rates(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total earning assets | 5.25 | % | 5.47 | % | 5.22 | % | (22) bps | 3 bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 3.02 | 3.27 | 3.15 | (25) bps | (13) bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1)Amounts are on a taxable-equivalent basis utilizing the federal income tax rate of 21% for the periods presented. Interest income includes certain fees, deferred costs, and dividends.
(2)Represents daily average balances. Unrealized gains and losses on available-for-sale securities are included in nonearning assets. Active hedge basis adjustments for fair value hedges are included in nonearning assets and other liabilities. In the third quarter of 2024, Truist revised its presentation of active hedge basis adjustments for fair value hedges on securities to be included in nonearning assets for all periods presented.
Taxable-equivalent net interest income for the fourth quarter of 2024 was down $16 million, or 0.4%, compared to the third quarter of 2024. Net interest margin was 3.07%, down five basis points.
•Average earning assets increased $6.5 billion, or 1.4%, primarily due to an increase in average securities of $7.7 billion, or 6.6%, partially offset by a decline in other earnings assets of $1.2 billion, or 3.2%.
•The yield on the average total loan portfolio was 6.12%, down 29 basis points due to the impact of variable rate loans repricing. The yield on the average securities portfolio was 3.19%, up 22 basis points primarily due to reinvesting cash flows into higher yielding securities.
•Average deposits increased $5.7 billion, or 1.5%, average short-term borrowings increased $4.2 billion, or 20%, and average long-term debt decreased $1.2 billion, or 3.4%.
•The average cost of total deposits was 1.89%, down 19 basis points, due to the impact of deposit repricing. The average cost of short-term borrowings was 4.81%, down 60 basis points. The average cost of long-term debt was 5.06%, down seven basis points.
Taxable-equivalent net interest income for the fourth quarter of 2024 was up $64 million, or 1.8%, compared to the fourth quarter of 2023 primarily due to the balance sheet repositioning in the second quarter of 2024. Net interest margin was 3.07%, up 12 basis points.
•Average earning assets decreased $8.9 billion, or 1.8%, primarily due to a decline in average total loans of $9.2 billion, or 2.9%, and a decrease in average securities of $9.2 billion, or 6.9%, partially offset by growth in other earning assets of $8.7 billion, or 30%. The decrease in average securities and increase in average other earning assets primarily reflects the balance sheet repositioning.
•The yield on the average total loan portfolio was 6.12%, down 24 basis points. The yield on the average securities portfolio was 3.19%, up 80 basis points, reflecting the balance sheet repositioning and reinvesting cash flows into higher yielding securities.
•Average deposits decreased $5.3 billion, or 1.3%, average short-term borrowings were flat, and average long-term debt decreased $6.7 billion, or 16%.
•The average cost of total deposits was 1.89%, down three basis points. The average cost of short-term borrowings was 4.81%, down 81 basis points. The average cost of long-term debt was 5.06%, up 39 basis points.
- 2 -
| Noninterest Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 4Q24 | 3Q24 | 4Q23 | Link | Like | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wealth management income | $ | 345 | $ | 350 | $ | 346 | $ | (5) | (1.4) | % | $ | (1) | (0.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment banking and trading income | 262 | 332 | 165 | (70) | (21.1) | 97 | 58.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Card and payment related fees | 231 | 222 | 232 | 9 | 4.1 | (1) | (0.4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service charges on deposits | 237 | 221 | 229 | 16 | 7.2 | 8 | 3.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage banking income | 117 | 106 | 94 | 11 | 10.4 | 23 | 24.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lending related fees | 93 | 88 | 153 | 5 | 5.7 | (60) | (39.2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating lease income | 47 | 49 | 60 | (2) | (4.1) | (13) | (21.7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Securities gains (losses) | (1) | — | — | (1) | NM | (1) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income | 139 | 115 | 84 | 24 | 20.9 | 55 | 65.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest income | $ | 1,470 | $ | 1,483 | $ | 1,363 | $ | (13) | (0.9) | $ | 107 | 7.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest income was down slightly compared to the third quarter of 2024 as lower investment banking and trading income was partially offset by higher other income.
•Investment banking and trading income decreased due to lower bond and equity originations as well as lower merger and acquisition advisory fees, partially offset by higher loan syndication fees.
•Other income increased due to higher income from certain solar equity investments and other investments, partially offset by lower income from investments held for certain post-retirement benefits (which is primarily offset by lower personnel expense) and a valuation decrease for derivatives related to Visa shares.
Noninterest income was up $107 million, or 7.9%, compared to the fourth quarter of 2023 primarily due to higher investment banking and trading income and other income, partially offset by lower lending related fees.
•Investment banking and trading income increased due to higher structured real estate income, loan syndications fees, and trading income.
•Other income increased due to higher income from certain solar equity investments and other investments, partially offset by lower income from investments held for certain post-retirement benefits (which is primarily offset by lower personnel expense).
•Lending related fees decreased due to lower leasing-related gains.
- 3 -
Noninterest Expense | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 4Q24 | 3Q24 | 4Q23 | Link | Like | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Personnel expense | $ | 1,587 | $ | 1,628 | $ | 1,474 | $ | (41) | (2.5) | % | $ | 113 | 7.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Professional fees and outside processing | 415 | 336 | 305 | 79 | 23.5 | 110 | 36.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Software expense | 232 | 222 | 223 | 10 | 4.5 | 9 | 4.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net occupancy expense | 179 | 157 | 159 | 22 | 14.0 | 20 | 12.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equipment expense | 112 | 84 | 103 | 28 | 33.3 | 9 | 8.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of intangibles | 84 | 84 | 98 | — | — | (14) | (14.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Marketing and customer development | 74 | 75 | 53 | (1) | (1.3) | 21 | 39.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating lease depreciation | 36 | 34 | 42 | 2 | 5.9 | (6) | (14.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Regulatory costs | 56 | 51 | 599 | 5 | 9.8 | (543) | (90.7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring charges | 11 | 25 | 155 | (14) | (56.0) | (144) | (92.9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill impairment | — | — | 6,078 | — | — | (6,078) | (100.0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other expense | 249 | 231 | 268 | 18 | 7.8 | (19) | (7.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest expense | $ | 3,035 | $ | 2,927 | $ | 9,557 | $ | 108 | 3.7 | $ | (6,522) | (68.2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest expense was up $108 million, or 3.7%, compared to the third quarter of 2024 due to higher professional fees and outside processing expense and equipment expense, partially offset by lower personnel expense. Additionally, Truist recognized a reduction to the FDIC special assessment (regulatory costs) of $8 million in the fourth quarter of 2024, compared to a reduction of $16 million in the third quarter of 2024. Restructuring charges for both quarters include severance charges as well as costs associated with facilities optimization initiatives. Adjusted noninterest expense, which excludes the FDIC special assessment, restructuring charges, and the amortization of intangibles, increased $114 million, or 4.0%, compared to the prior quarter.
•Professional fees and outside processing expense increased due to higher investments in technology and risk infrastructure.
•Equipment expense increased primarily due to a higher volume of laptops purchases and other technology equipment.
•Personnel expense decreased primarily due to lower incentives and lower other post-retirement benefit expense (which is almost entirely offset by lower other income).
Noninterest expense was down $6.5 billion compared to the fourth quarter of 2023 due to the goodwill impairment of $6.1 billion in the fourth quarter of 2023, a decrease in regulatory costs primarily associated with the FDIC special assessment (reduction of $8 million in the fourth quarter of 2024 compared to cost of $507 million in the fourth quarter of 2023), and lower restructuring charges, partially offset by higher personnel expense and higher professional fees and outside processing expense. Restructuring charges decreased $144 million driven by lower severance charges and lower costs associated with facilities optimization initiatives. Adjusted noninterest expense, which excludes goodwill impairment, the FDIC special assessment adjustment, restructuring charges, and the amortization of intangibles, increased $229 million, or 8.4%, compared to the earlier quarter.
•Personnel expense increased due to higher incentives, partially offset by lower headcount and lower other post-retirement benefit expense (which is almost entirely offset by lower other income).
•Professional fees and outside processing expense increased due to higher investments in technology and risk infrastructure.
•Regulatory costs, excluding the aforementioned FDIC special assessment, decreased due to a decrease in the FDIC’s deposit insurance assessment rate.
- 4 -
| Provision for Income Taxes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 4Q24 | 3Q24 | 4Q23 | Link | Like | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | $ | 265 | $ | 271 | $ | (56) | $ | (6) | (2.2)% | $ | 321 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Effective tax rate | 17.1 | % | 15.8 | % | 1.1 | % | 130 bps | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The higher effective tax rate for the fourth quarter of 2024 compared to the third quarter of 2024 is due to higher full year pre-tax earnings.
The effective tax rate for the fourth quarter of 2023 reflects a pre-tax loss, which includes a non-deductible goodwill impairment, partially offset by a discrete tax benefit in the fourth quarter of 2023.
Average Loans and Leases | |||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 4Q24 | 3Q24 | Change | % Change | |||||||||||||||||||||||||||||||||||||
| Commercial: | |||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | $ | 153,209 | $ | 154,102 | $ | (893) | (0.6) | % | |||||||||||||||||||||||||||||||||
| CRE | 20,504 | 21,481 | (977) | (4.5) | |||||||||||||||||||||||||||||||||||||
| Commercial construction | 8,261 | 7,870 | 391 | 5.0 | |||||||||||||||||||||||||||||||||||||
| Total commercial | 181,974 | 183,453 | (1,479) | (0.8) | |||||||||||||||||||||||||||||||||||||
| Consumer: | |||||||||||||||||||||||||||||||||||||||||
| Residential mortgage | 54,390 | 53,999 | 391 | 0.7 | |||||||||||||||||||||||||||||||||||||
| Home equity | 9,675 | 9,703 | (28) | (0.3) | |||||||||||||||||||||||||||||||||||||
| Indirect auto | 22,790 | 22,121 | 669 | 3.0 | |||||||||||||||||||||||||||||||||||||
| Other consumer | 29,355 | 29,015 | 340 | 1.2 | |||||||||||||||||||||||||||||||||||||
| Total consumer | 116,210 | 114,838 | 1,372 | 1.2 | |||||||||||||||||||||||||||||||||||||
| Credit card | 4,926 | 4,874 | 52 | 1.1 | |||||||||||||||||||||||||||||||||||||
| Total loans and leases held for investment | $ | 303,110 | $ | 303,165 | $ | (55) | — | ||||||||||||||||||||||||||||||||||
Average loans and leases HFI were flat compared to the prior quarter.
•Average commercial loans decreased 0.8% due to declines in the commercial and industrial and CRE portfolios.
•Average consumer loans increased 1.2% due to growth in the indirect auto, residential mortgage, and other consumer portfolios.
End of period loans and leases HFI were $306.4 billion, up $3.3 billion, or 1.1%, primarily due to increases in the residential mortgage, commercial and industrial, and indirect auto portfolios.
| Average Deposits | |||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 4Q24 | 3Q24 | Change | % Change | |||||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | $ | 107,968 | $ | 106,080 | $ | 1,888 | 1.8 | % | |||||||||||||||||||||||||||||||||
| Interest checking | 107,075 | 103,899 | 3,176 | 3.1 | |||||||||||||||||||||||||||||||||||||
| Money market and savings | 138,242 | 136,639 | 1,603 | 1.2 | |||||||||||||||||||||||||||||||||||||
| Time deposits | 36,757 | 37,726 | (969) | (2.6) | |||||||||||||||||||||||||||||||||||||
| Total deposits | $ | 390,042 | $ | 384,344 | $ | 5,698 | 1.5 | ||||||||||||||||||||||||||||||||||
Average deposits for the fourth quarter of 2024 were $390.0 billion, an increase of $5.7 billion, or 1.5%, compared to the prior quarter.
Average noninterest-bearing deposits increased 1.8% compared to the prior quarter and represented 27.7% of total deposits for the fourth quarter of 2024 compared to 27.6% for the third quarter of 2024. Average interest checking increased 3.1%. Average money market and savings accounts increased 1.2%. Average time deposits decreased 2.6%.
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Capital Ratios | |||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 2Q24 | 1Q24 | 4Q23 | |||||||||||||||||||||||||
| Risk-based: | (preliminary) | ||||||||||||||||||||||||||||
| CET1 | 11.5 | % | 11.6 | % | 11.6 | % | 10.1 | % | 10.1 | % | |||||||||||||||||||
| Tier 1 | 12.9 | 13.2 | 13.2 | 11.7 | 11.6 | ||||||||||||||||||||||||
| Total | 14.9 | 15.3 | 15.4 | 13.9 | 13.7 | ||||||||||||||||||||||||
| Leverage | 10.5 | 10.8 | 10.5 | 9.5 | 9.3 | ||||||||||||||||||||||||
| Supplementary leverage | 8.8 | 9.1 | 8.9 | 8.0 | 7.9 | ||||||||||||||||||||||||
Capital ratios remained strong compared to the regulatory requirements for well capitalized banks. Truist’s CET1 ratio was 11.5% as of December 31, 2024, down 10 basis points compared to September 30, 2024 as capital returned to shareholders and an increase in risk-weighted assets were partially offset by current quarter earnings.
Truist declared common dividends of $0.52 per share during the fourth quarter of 2024 and repurchased $500 million of common stock. The dividend and total payout ratios for the fourth quarter of 2024 were 57% and 98%, respectively.
Truist’s average consolidated LCR was 109% for the three months ended December 31, 2024, compared to the regulatory minimum of 100%.
- 6 -
| Asset Quality | ||||||||||||||||||||||||||||||||
| (Dollars in millions) | 4Q24 | 3Q24 | 2Q24 | 1Q24 | 4Q23 | |||||||||||||||||||||||||||
| Total nonperforming assets | $ | 1,477 | $ | 1,528 | $ | 1,476 | $ | 1,476 | $ | 1,488 | ||||||||||||||||||||||
| Total loans 90 days past due and still accruing | 587 | 518 | 489 | 538 | 534 | |||||||||||||||||||||||||||
| Total loans 30-89 days past due and still accruing | 1,949 | 1,769 | 1,791 | 1,716 | 1,971 | |||||||||||||||||||||||||||
Nonperforming loans and leases as a percentage of loans and leases held for investment | 0.47 | % | 0.48 | % | 0.46 | % | 0.45 | % | 0.44 | % | ||||||||||||||||||||||
| Loans 30-89 days past due and still accruing as a percentage of loans and leases | 0.64 | 0.58 | 0.59 | 0.56 | 0.63 | |||||||||||||||||||||||||||
| Loans 90 days or more past due and still accruing as a percentage of loans and leases | 0.19 | 0.17 | 0.16 | 0.18 | 0.17 | |||||||||||||||||||||||||||
| Loans 90 days or more past due and still accruing as a percentage of loans and leases, excluding government guaranteed | 0.05 | 0.04 | 0.04 | 0.04 | 0.04 | |||||||||||||||||||||||||||
Allowance for loan and lease losses as a percentage of loans and leases held for investment | 1.59 | 1.60 | 1.57 | 1.56 | 1.54 | |||||||||||||||||||||||||||
Ratio of allowance for loan and lease losses to net charge-offs | 2.7x | 2.9x | 2.7x | 2.4x | 2.7x | |||||||||||||||||||||||||||
Ratio of allowance for loan and lease losses to nonperforming loans and leases held for investment | 3.4x | 3.3x | 3.4x | 3.4x | 3.5x | |||||||||||||||||||||||||||
Applicable ratios are annualized.
Nonperforming assets totaled $1.5 billion at December 31, 2024, down $51 million compared to September 30, 2024, due to a decrease in the commercial and industrial portfolio. Nonperforming loans and leases held for investment were 0.47% of loans and leases held for investment at December 31, 2024, down one basis point compared to September 30, 2024.
Loans 90 days or more past due and still accruing totaled $587 million at December 31, 2024, up two basis points as a percentage of loans and leases compared with the prior quarter due primarily to an increase in the government guaranteed residential mortgage portfolio. Excluding government guaranteed loans, the ratio of loans 90 days or more past due and still accruing as a percentage of loans and leases was 0.05% at December 31, 2024, up one basis point from September 30, 2024 due to an increase in the commercial and industrial and non-government guaranteed residential mortgage portfolios.
Loans 30-89 days past due and still accruing totaled $1.9 billion at December 31, 2024, up $180 million, or six basis points, as a percentage of loans and leases, compared to the prior quarter primarily due to an increase in the commercial and industrial, CRE, residential mortgage, and indirect auto portfolios.
The allowance for credit losses was $5.2 billion at December 31, 2024 and includes $4.9 billion for the allowance for loan and lease losses and $304 million for the reserve for unfunded commitments. The ALLL ratio was 1.59%, down one basis point compared with September 30, 2024. The ALLL covered nonperforming loans and leases held for investment 3.4X, compared to 3.3x at September 30, 2024. At December 31, 2024, the ALLL was 2.7X annualized net charge-offs, compared to 2.9X at September 30, 2024.
Provision for Credit Losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 4Q24 | 3Q24 | 4Q23 | Link | Like | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision for credit losses | $ | 471 | $ | 448 | $ | 572 | $ | 23 | 5.1 | % | $ | (101) | (17.7) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net charge-offs | 453 | 418 | 453 | 35 | 8.4 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net charge-offs as a percentage of average loans and leases | 0.59 | % | 0.55 | % | 0.57 | % | 4 bps | 2 bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Applicable ratios are annualized.
The provision for credit losses was $471 million for the fourth quarter of 2024 compared to $448 million for the third quarter of 2024.
•The increase in the current quarter provision expense primarily reflects an allowance build.
•The net charge-off ratio for the current quarter was up compared to the third quarter of 2024 primarily driven by higher net charges-offs in the commercial and industrial portfolio and seasonally higher indirect auto portfolio net charges-offs, partially offset by lower net charge-offs in the CRE portfolio.
The provision for credit losses was $471 million for the fourth quarter of 2024 compared to $572 million for the fourth quarter of 2023.
•The decrease in the current quarter provision expense primarily reflects a lower allowance build.
- 7 -
Earnings Presentation and Quarterly Performance Summary | ||
Investors can access the live fourth quarter 2024 earnings call at 8 a.m. ET today by webcast or dial-in as follows:
Webcast: app.webinar.net/xOqjwYK80mY
Dial-in: 1-877-883-0383, passcode 7041380
Additional details: The news release and presentation materials will be available at ir.truist.com under “Events & Presentations.” A replay of the call will be available on the website for 30 days.
The presentation, including an appendix reconciling non-GAAP disclosures, and Truist’s Fourth Quarter 2024 Quarterly Performance Summary, which contains detailed financial schedules, are available at https://ir.truist.com/earnings.
About Truist | ||
Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities. As a leading U.S. commercial bank, Truist has leading market share in many of the high-growth markets across the country. Truist offers a wide range of products and services through our wholesale and consumer businesses, including consumer and small business banking, commercial banking, corporate and investment banking, wealth management, payments, and specialized lending businesses. Headquartered in Charlotte, North Carolina, Truist is a top-10 commercial bank with total assets of $531 billion as of December 31, 2024. Truist Bank, Member FDIC. Learn more at Truist.com.
#-#-#
| Glossary of Defined Terms | |||||
| Term | Definition | ||||
ALLL | Allowance for loan and lease losses | ||||
| BVPS | Book value (common equity) per share | ||||
| CEO | Chief Executive Officer | ||||
CET1 | Common equity tier 1 | ||||
| CRE | Commercial real estate | ||||
| FDIC | Federal Deposit Insurance Corporation | ||||
| GAAP | Accounting principles generally accepted in the United States of America | ||||
| HFI | Held for investment | ||||
| LCR | Liquidity Coverage Ratio | ||||
| Like | Compared to fourth quarter of 2023 | ||||
| Link | Compared to third quarter of 2024 | ||||
NCO | Net charge-offs | ||||
| NIM | Net interest margin, computed on a TE basis | ||||
| NM | Not meaningful | ||||
| PPNR | Pre-provision net revenue | ||||
| ROCE | Return on average common equity | ||||
ROTCE | Return on average tangible common equity | ||||
TBVPS | Tangible book value per common share | ||||
| TE | Taxable-equivalent | ||||
| TIH | Truist Insurance Holdings | ||||
- 8 -
| Non-GAAP Financial Information | ||
This news release contains financial information and performance measures determined by methods other than in accordance with GAAP. Truist’s management uses these “non-GAAP” measures in their analysis of Truist’s performance and the efficiency of its operations. Management believes these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant items in the current period. The Corporation believes a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Below is a listing of the types of non-GAAP measures used in this news release:
•Adjusted net income available to common shareholders and adjusted diluted EPS - Adjusted net income available to common shareholders and adjusted diluted earnings per share are non-GAAP in that these measures exclude selected items, net of tax. Truist’s management uses these measures in their analysis of the Corporation’s performance. Truist’s management believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of significant gains and charges.
•Adjusted efficiency ratio, adjusted fee income ratio, and related measures - The adjusted efficiency ratio is non-GAAP in that it excludes securities gains and losses, amortization of intangible assets, restructuring charges, and other selected items. Adjusted revenue and adjusted noninterest expense are related measures used to calculate the adjusted efficiency ratio. Additionally, the adjusted fee income ratio is non-GAAP in that it excludes securities gains and losses and other selected items, and is calculated using adjusted revenue and adjusted noninterest income. Adjusted revenue and adjusted noninterest income exclude securities gains and losses and other selected items. Adjusted noninterest expense excludes amortization of intangible assets, restructuring charges, and other selected items. Truist’s management calculated these measures based on the Company’s continuing operations. Truist’s management uses these measures in their analysis of the Corporation’s performance. Truist’s management believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of significant gains and charges.
•PPNR - Pre-provision net revenue is a non-GAAP measure that adjusts net income determined in accordance with GAAP to exclude the impact of the provision for credit losses and provision for income taxes. Adjusted pre-provision net revenue is a non-GAAP measure that additionally excludes securities gains (losses), restructuring charges, amortization of intangible assets, and other selected items. Truist’s management calculated these measures based on the Company’s continuing operations. Truist’s management believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods.
•Tangible Common Equity and Related Measures - Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets, net of deferred taxes, and their related amortization and impairment charges. These measures are useful for evaluating the performance of a business consistently, whether acquired or developed internally. Truist’s management uses these measures to assess profitability, returns relative to balance sheet risk, and shareholder value.
A reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure is included in the appendix to Truist’s Fourth Quarter 2024 Earnings Presentation, which is available at https://ir.truist.com/earnings.
- 9 -
| 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 facts. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “pursue,” “seek,” “continue,” “estimate,” “project,” “outlook,” “forecast,” “potential,” “target,” “objective,” “trend,” “plan,” “goal,” “initiative,” “priorities,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results.
This news release, including any information incorporated by reference herein, contains forward-looking statements. We also may make forward-looking statements in other documents that are filed or furnished with the SEC. In addition, we may make forward-looking statements orally or in writing to investors, analysts, members of the media, and others. All forward- looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, and results may differ materially from those set forth in any forward-looking statement. While no list of assumptions, risks, and uncertainties could be complete, some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements include:
•evolving political, business, economic, and market conditions at local, regional, national, and international levels;
•monetary, fiscal, and trade laws or policies, including tariffs, as a result of actions by governmental agencies, central banks, or supranational authorities;
•the legal, regulatory, and supervisory environment, including changes in financial-services legislation, regulation, policies, or government officials or other personnel;
•our ability to address heightened scrutiny and expectations from supervisory or other governmental authorities and to timely and credibly remediate related concerns or deficiencies;
•judicial, regulatory, and administrative inquiries, examinations, investigations, proceedings, disputes, or rulings that create uncertainty for or are adverse to us or the financial-services industry;
•the outcomes of judicial, regulatory, and administrative inquiries, examinations, investigations, proceedings, disputes, or rulings to which we are or may be subject (either directly or indirectly through our ownership interests in joint ventures or other legal entities) and our ability to absorb and address any damages or other remedies that are sought or awarded and any collateral consequences;
•evolving accounting standards and policies;
•the adequacy of our corporate governance, risk-management framework, compliance programs, and internal controls over financial reporting, including our ability to control lapses or deficiencies in financial reporting, to make appropriate estimates, or to effectively mitigate or manage operational risk;
•any instability or breakdown in the financial system, including as a result of the actual or perceived soundness of another financial institution or another participant in the financial system;
•disruptions and shifts in investor sentiment or behavior in the securities, capital, or other financial markets, including financial or systemic shocks and volatility or changes in market liquidity, interest or currency rates, or valuations;
•our ability to cost-effectively fund our businesses and operations, including by accessing long- and short-term funding and liquidity and by retaining and growing client deposits;
•changes in any of our credit ratings;
•our ability to manage any unexpected outflows of uninsured deposits and avoid selling investment securities or other assets at an unfavorable time or at a loss;
•negative market perceptions of our investment portfolio or its value;
•adverse publicity or other reputational harm to us, our service providers, or our senior officers;
•business and consumer sentiment, preferences, or behavior, including spending, borrowing, or saving by businesses or households;
•our ability to execute on strategic and operational plans, including accelerating growth, improving profitability, and returning capital to shareholders;
•changes in our corporate and business strategies, the composition of our assets, or the way in which we fund those assets;
•our ability to successfully make and integrate acquisitions and to effect divestitures, including the ability to perform our obligations under the transition services arrangements supporting TIH in a cost-effective and efficient manner;
•our ability to develop, maintain, and market our products or services or to absorb unanticipated costs or liabilities associated with those products or services;
•our ability to innovate, to anticipate the needs of current or future clients, to successfully compete, to increase or hold market share in changing competitive environments, or to deal with pricing or other competitive pressures;
•our ability to maintain secure and functional financial, accounting, technology, data processing, or other operating systems or infrastructure, including those that safeguard personal and other sensitive information;
•our ability to appropriately underwrite loans that we originate or purchase and to otherwise manage credit risk;
•our ability to satisfactorily and profitably perform loan servicing and similar obligations;
•the credit, liquidity, or other financial condition of our clients, counterparties, service providers, or competitors;
•our ability to effectively deal with economic, business, or market slowdowns or disruptions;
•the efficacy of our methods or models in assessing business strategies or opportunities or in valuing, measuring, estimating, monitoring, or managing positions or risk;
•our ability to keep pace with changes in technology that affect us or our clients, counterparties, service providers, or competitors or to maintain rights or interests in associated intellectual property;
•our ability to attract, hire, and retain key teammates and to engage in adequate succession planning;
•the performance and availability of third-party service providers on whom we rely in delivering products and services to our clients and otherwise in conducting our business and operations;
•our ability to detect, prevent, mitigate, and otherwise manage the risk of fraud or misconduct by internal or external parties; our ability to manage and mitigate physical-security and cybersecurity risks, including denial-of-service attacks, hacking, phishing, social-engineering attacks, malware intrusion, data-corruption attempts, system breaches, identity theft, ransomware attacks, environmental conditions, and intentional acts of destruction;
•natural or other disasters, calamities, and conflicts, including terrorist events, cyber-warfare, and pandemics;
•widespread outages of operational, communication, and other systems;
•our ability to maintain appropriate corporate responsibility practices, oversight, and disclosures;
•policies and other actions of governments to manage and mitigate climate and related environmental risks, and the effects of climate change or the transition to a lower-carbon economy on our business, operations, and reputation; and
•other assumptions, risks, or uncertainties described in the Risk Factors (Item 1A), Management’s Discussion and Analysis of Financial Condition and Results of Operations (Item 7), or the Notes to the Consolidated Financial Statements (Item 8) in our Annual Report on Form 10-K or described in any of the Company’s subsequent quarterly or current reports.
Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, or Current Report on Form 8-K.
- 10 -
Quarterly Performance Summary
Truist Financial Corporation
Fourth Quarter 2024
| Table of Contents | ||||||||
| Quarterly Performance Summary | ||||||||
| Truist Financial Corporation | ||||||||
| Page | ||||||||
| Financial Highlights | ||||||||
| Consolidated Statements of Income | ||||||||
| Consolidated Ending Balance Sheets | ||||||||
| Average Balances and Rates - Quarters | ||||||||
| Average Balances and Rates - Year-To-Date | ||||||||
| Credit Quality | ||||||||
| Segment Financial Performance | ||||||||
| Capital Information | ||||||||
| Selected Mortgage Banking Information & Additional Information | ||||||||
| Selected Items | ||||||||
Financial Highlights
| Quarter Ended | Year-to-Date | ||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions, except per share data, shares in thousands) | Dec. 31 | Sept. 30 | June 30 | March 31 | Dec. 31 | Dec. 31 | Dec. 31 | ||||||||||||||||||||||||||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||
| Summary Income Statement | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest income - taxable equivalent | $ | 6,230 | $ | 6,407 | $ | 6,404 | $ | 6,237 | $ | 6,324 | $ | 25,278 | $ | 24,672 | |||||||||||||||||||||||||||||||||
| Interest expense | 2,589 | 2,750 | 2,824 | 2,812 | 2,747 | 10,975 | 9,928 | ||||||||||||||||||||||||||||||||||||||||
| Net interest income - taxable equivalent | 3,641 | 3,657 | 3,580 | 3,425 | 3,577 | 14,303 | 14,744 | ||||||||||||||||||||||||||||||||||||||||
| Less: Taxable-equivalent adjustment | 51 | 55 | 53 | 53 | 58 | 212 | 220 | ||||||||||||||||||||||||||||||||||||||||
| Net interest income | 3,590 | 3,602 | 3,527 | 3,372 | 3,519 | 14,091 | 14,524 | ||||||||||||||||||||||||||||||||||||||||
| Provision for credit losses | 471 | 448 | 451 | 500 | 572 | 1,870 | 2,109 | ||||||||||||||||||||||||||||||||||||||||
| Net interest income after provision for credit losses | 3,119 | 3,154 | 3,076 | 2,872 | 2,947 | 12,221 | 12,415 | ||||||||||||||||||||||||||||||||||||||||
| Noninterest income | 1,470 | 1,483 | (5,212) | 1,446 | 1,363 | (813) | 5,498 | ||||||||||||||||||||||||||||||||||||||||
| Noninterest expense | 3,035 | 2,927 | 3,094 | 2,953 | 9,557 | 12,009 | 18,678 | ||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 1,554 | 1,710 | (5,230) | 1,365 | (5,247) | (601) | (765) | ||||||||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 265 | 271 | (1,324) | 232 | (56) | (556) | 738 | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations(1) | 1,289 | 1,439 | (3,906) | 1,133 | (5,191) | (45) | (1,503) | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) from discontinued operations(1) | (13) | 3 | 4,828 | 67 | 101 | 4,885 | 456 | ||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | 1,276 | 1,442 | 922 | 1,200 | (5,090) | 4,840 | (1,047) | ||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests from discontinued operations(1) | — | — | 19 | 3 | — | 22 | 44 | ||||||||||||||||||||||||||||||||||||||||
| Preferred stock dividends and other | 60 | 106 | 77 | 106 | 77 | 349 | 361 | ||||||||||||||||||||||||||||||||||||||||
| Net income (loss) available to common shareholders | 1,216 | 1,336 | 826 | 1,091 | (5,167) | 4,469 | (1,452) | ||||||||||||||||||||||||||||||||||||||||
Net income available to common shareholders - adjusted(2) | 1,211 | 1,307 | 1,235 | 1,216 | 1,094 | 4,969 | 4,809 | ||||||||||||||||||||||||||||||||||||||||
| Additional Income Statement Information | |||||||||||||||||||||||||||||||||||||||||||||||
| Revenue - taxable equivalent | 5,111 | 5,140 | (1,632) | 4,871 | 4,940 | 13,490 | 20,242 | ||||||||||||||||||||||||||||||||||||||||
Pre-provision net revenue - unadjusted(2) | 2,076 | 2,213 | (4,726) | 1,918 | (4,617) | 1,481 | 1,564 | ||||||||||||||||||||||||||||||||||||||||
Pre-provision net revenue - adjusted(2) | 2,164 | 2,306 | 2,209 | 2,132 | 2,221 | 8,811 | 8,868 | ||||||||||||||||||||||||||||||||||||||||
| Key Metrics | |||||||||||||||||||||||||||||||||||||||||||||||
| Earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share-basic from continuing operations(1)(3) | $ | 0.93 | $ | 1.00 | $ | (2.98) | $ | 0.77 | $ | (3.95) | $ | (0.30) | $ | (1.40) | |||||||||||||||||||||||||||||||||
| Earnings per share-basic | 0.92 | 1.00 | 0.62 | 0.82 | (3.87) | $ | 3.36 | $ | (1.09) | ||||||||||||||||||||||||||||||||||||||
Earnings per share-diluted from continuing operations(1)(3) | 0.92 | 0.99 | (2.98) | 0.76 | (3.95) | (0.30) | (1.40) | ||||||||||||||||||||||||||||||||||||||||
| Earnings per share-diluted | 0.91 | 0.99 | 0.62 | 0.81 | (3.87) | 3.36 | (1.09) | ||||||||||||||||||||||||||||||||||||||||
Earnings per share-adjusted diluted(2) | 0.91 | 0.97 | 0.91 | 0.90 | 0.81 | 3.69 | 3.59 | ||||||||||||||||||||||||||||||||||||||||
| Cash dividends declared per share | 0.52 | 0.52 | 0.52 | 0.52 | 0.52 | 2.08 | 2.08 | ||||||||||||||||||||||||||||||||||||||||
| Common shareholders’ equity per share | 43.90 | 44.46 | 42.71 | 38.97 | 39.31 | ||||||||||||||||||||||||||||||||||||||||||
Tangible common shareholders’ equity per share(2) | 30.01 | 30.64 | 28.91 | 21.64 | 21.83 | ||||||||||||||||||||||||||||||||||||||||||
| End of period shares outstanding | 1,315,936 | 1,327,521 | 1,338,223 | 1,338,096 | 1,333,743 | ||||||||||||||||||||||||||||||||||||||||||
| Weighted average shares outstanding-basic | 1,317,017 | 1,334,212 | 1,338,149 | 1,335,091 | 1,333,703 | 1,331,087 | 1,331,963 | ||||||||||||||||||||||||||||||||||||||||
| Weighted average shares outstanding-diluted | 1,333,701 | 1,349,129 | 1,338,149 | 1,346,904 | 1,333,703 | 1,331,087 | 1,331,963 | ||||||||||||||||||||||||||||||||||||||||
| Return on average assets | 0.96 | % | 1.10 | % | 0.70 | % | 0.91 | % | (3.74) | % | 0.92 | % | (0.19) | % | |||||||||||||||||||||||||||||||||
| Return on average common shareholders’ equity | 8.4 | 9.1 | 6.1 | 8.4 | (36.6) | 8.0 | (2.6) | ||||||||||||||||||||||||||||||||||||||||
Return on average tangible common shareholders’ equity(2) | 12.9 | 13.8 | 10.4 | 16.3 | 15.0 | 13.3 | 18.9 | ||||||||||||||||||||||||||||||||||||||||
Net interest margin - taxable equivalent(3) | 3.07 | 3.12 | 3.02 | 2.88 | 2.95 | 3.03 | 2.98 | ||||||||||||||||||||||||||||||||||||||||
Efficiency ratio-unadjusted(3) | 60.0 | 57.5 | NM | 61.3 | NM | 90.4 | 93.3 | ||||||||||||||||||||||||||||||||||||||||
Efficiency ratio-adjusted(2)(3) | 57.7 | 55.2 | 56.0 | 56.2 | 55.0 | 56.3 | 56.2 | ||||||||||||||||||||||||||||||||||||||||
Fee income ratio-unadjusted(3) | 29.0 | 29.2 | NM | 30.0 | 27.9 | NM | 27.5 | ||||||||||||||||||||||||||||||||||||||||
Fee income ratio-adjusted(2)(3) | 28.8 | 28.9 | 28.7 | 29.7 | 27.6 | 29.0 | 27.2 | ||||||||||||||||||||||||||||||||||||||||
| Credit Quality | |||||||||||||||||||||||||||||||||||||||||||||||
| Nonperforming loans and leases as a percentage of LHFI | 0.47 | % | 0.48 | % | 0.46 | % | 0.45 | % | 0.44 | % | |||||||||||||||||||||||||||||||||||||
| Net charge-offs as a percentage of average LHFI | 0.59 | 0.55 | 0.58 | 0.64 | 0.57 | 0.59 | % | 0.50 | % | ||||||||||||||||||||||||||||||||||||||
| Allowance for loan and lease losses as a percentage of LHFI | 1.59 | 1.60 | 1.57 | 1.56 | 1.54 | ||||||||||||||||||||||||||||||||||||||||||
| Ratio of allowance for loan and lease losses to nonperforming LHFI | 3.4x | 3.3x | 3.4x | 3.4x | 3.5x | ||||||||||||||||||||||||||||||||||||||||||
| Average Balances | |||||||||||||||||||||||||||||||||||||||||||||||
| Assets | $ | 527,013 | $ | 519,415 | $ | 526,894 | $ | 531,002 | $ | 539,656 | $ | 526,065 | $ | 553,132 | |||||||||||||||||||||||||||||||||
Securities(4) | 124,871 | 117,172 | 121,796 | 131,659 | 134,070 | 123,858 | 137,552 | ||||||||||||||||||||||||||||||||||||||||
| Loans and leases | 304,609 | 304,578 | 307,583 | 309,426 | 313,832 | 306,538 | 322,335 | ||||||||||||||||||||||||||||||||||||||||
| Deposits | 390,042 | 384,344 | 388,042 | 389,058 | 395,333 | 387,868 | 401,127 | ||||||||||||||||||||||||||||||||||||||||
| Common shareholders’ equity | 57,754 | 58,667 | 54,863 | 52,167 | 56,061 | 55,876 | 56,306 | ||||||||||||||||||||||||||||||||||||||||
| Total shareholders’ equity | 64,295 | 65,341 | 61,677 | 59,011 | 62,896 | 62,593 | 63,099 | ||||||||||||||||||||||||||||||||||||||||
| Period-End Balances | |||||||||||||||||||||||||||||||||||||||||||||||
| Assets | $ | 531,176 | $ | 523,434 | $ | 519,853 | $ | 534,959 | $ | 535,349 | |||||||||||||||||||||||||||||||||||||
Securities(4) | 118,104 | 115,606 | 108,416 | 119,419 | 121,473 | ||||||||||||||||||||||||||||||||||||||||||
| Loans and leases | 307,771 | 304,362 | 307,149 | 308,477 | 313,341 | ||||||||||||||||||||||||||||||||||||||||||
| Deposits | 390,524 | 387,778 | 385,411 | 394,265 | 395,865 | ||||||||||||||||||||||||||||||||||||||||||
| Common shareholders’ equity | 57,772 | 59,023 | 57,154 | 52,148 | 52,428 | ||||||||||||||||||||||||||||||||||||||||||
| Total shareholders’ equity | 63,679 | 65,696 | 63,827 | 59,053 | 59,253 | ||||||||||||||||||||||||||||||||||||||||||
| Capital and Liquidity Ratios | (preliminary) | ||||||||||||||||||||||||||||||||||||||||||||||
| Common equity tier 1 | 11.5 | % | 11.6 | % | 11.6 | % | 10.1 | % | 10.1 | % | |||||||||||||||||||||||||||||||||||||
| Tier 1 | 12.9 | 13.2 | 13.2 | 11.7 | 11.6 | ||||||||||||||||||||||||||||||||||||||||||
| Total | 14.9 | 15.3 | 15.4 | 13.9 | 13.7 | ||||||||||||||||||||||||||||||||||||||||||
| Leverage | 10.5 | 10.8 | 10.5 | 9.5 | 9.3 | ||||||||||||||||||||||||||||||||||||||||||
| Supplementary leverage | 8.8 | 9.1 | 8.9 | 8.0 | 7.9 | ||||||||||||||||||||||||||||||||||||||||||
| Liquidity coverage ratio | 109 | 112 | 110 | 115 | 112 | ||||||||||||||||||||||||||||||||||||||||||
Applicable ratios are annualized.
(1)On February 20, 2024, the Company entered into an agreement to sell the remaining 80% stake of the common equity in TIH to an investor group, representing substantially all of the Company’s IH segment. The sale represents a material strategic shift for the Company and as a result, the Company recast results for all periods presented under the discontinued operations basis of presentation. On May 6, 2024, the Company completed the sale resulting in an after-tax gain of $4.8 billion.
(2)Represents a non-GAAP measure. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in the appendix to Truist’s Fourth Quarter 2024 Earnings Presentation.
(3)This metric is calculated based on continuing operations.
(4)Includes AFS and HTM securities. Average balances reflect AFS and HTM securities at amortized cost. Period-end balances reflect AFS securities at fair value and HTM securities at amortized cost.
- 1 -
Consolidated Statements of Income
| Quarter Ended | Year-to-Date | ||||||||||||||||||||||||||||||||||||||||
| Dec. 31 | Sept. 30 | June 30 | March 31 | Dec. 31 | Dec. 31 | Dec. 31 | |||||||||||||||||||||||||||||||||||
| (Dollars in millions, except per share data, shares in thousands) | 2024 | 2024 | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||
| Interest Income | |||||||||||||||||||||||||||||||||||||||||
| Interest and fees on loans and leases | $ | 4,634 | $ | 4,852 | $ | 4,879 | $ | 4,865 | $ | 4,971 | $ | 19,230 | $ | 19,518 | |||||||||||||||||||||||||||
| Interest on securities | 994 | 869 | 838 | 805 | 802 | 3,506 | 3,066 | ||||||||||||||||||||||||||||||||||
| Interest on other earning assets | 551 | 631 | 634 | 514 | 493 | 2,330 | 1,868 | ||||||||||||||||||||||||||||||||||
| Total interest income | 6,179 | 6,352 | 6,351 | 6,184 | 6,266 | 25,066 | 24,452 | ||||||||||||||||||||||||||||||||||
| Interest Expense | |||||||||||||||||||||||||||||||||||||||||
| Interest on deposits | 1,855 | 2,014 | 2,016 | 1,964 | 1,917 | 7,849 | 6,427 | ||||||||||||||||||||||||||||||||||
| Interest on long-term debt | 431 | 454 | 446 | 482 | 476 | 1,813 | 2,215 | ||||||||||||||||||||||||||||||||||
| Interest on other borrowings | 303 | 282 | 362 | 366 | 354 | 1,313 | 1,286 | ||||||||||||||||||||||||||||||||||
| Total interest expense | 2,589 | 2,750 | 2,824 | 2,812 | 2,747 | 10,975 | 9,928 | ||||||||||||||||||||||||||||||||||
| Net Interest Income | 3,590 | 3,602 | 3,527 | 3,372 | 3,519 | 14,091 | 14,524 | ||||||||||||||||||||||||||||||||||
| Provision for credit losses | 471 | 448 | 451 | 500 | 572 | 1,870 | 2,109 | ||||||||||||||||||||||||||||||||||
| Net Interest Income After Provision for Credit Losses | 3,119 | 3,154 | 3,076 | 2,872 | 2,947 | 12,221 | 12,415 | ||||||||||||||||||||||||||||||||||
| Noninterest Income | |||||||||||||||||||||||||||||||||||||||||
| Wealth management income | 345 | 350 | 361 | 356 | 346 | 1,412 | 1,358 | ||||||||||||||||||||||||||||||||||
| Investment banking and trading income | 262 | 332 | 286 | 323 | 165 | 1,203 | 822 | ||||||||||||||||||||||||||||||||||
| Card and payment related fees | 231 | 222 | 230 | 224 | 232 | 907 | 936 | ||||||||||||||||||||||||||||||||||
| Service charges on deposits | 237 | 221 | 232 | 225 | 229 | 915 | 873 | ||||||||||||||||||||||||||||||||||
| Mortgage banking income | 117 | 106 | 112 | 97 | 94 | 432 | 437 | ||||||||||||||||||||||||||||||||||
| Lending related fees | 93 | 88 | 89 | 96 | 153 | 366 | 447 | ||||||||||||||||||||||||||||||||||
| Operating lease income | 47 | 49 | 50 | 59 | 60 | 205 | 254 | ||||||||||||||||||||||||||||||||||
| Securities gains (losses) | (1) | — | (6,650) | — | — | (6,651) | — | ||||||||||||||||||||||||||||||||||
| Other income | 139 | 115 | 78 | 66 | 84 | 398 | 371 | ||||||||||||||||||||||||||||||||||
| Total noninterest income | 1,470 | 1,483 | (5,212) | 1,446 | 1,363 | (813) | 5,498 | ||||||||||||||||||||||||||||||||||
| Noninterest Expense | |||||||||||||||||||||||||||||||||||||||||
| Personnel expense | 1,587 | 1,628 | 1,661 | 1,630 | 1,474 | 6,506 | 6,516 | ||||||||||||||||||||||||||||||||||
| Professional fees and outside processing | 415 | 336 | 308 | 278 | 305 | 1,337 | 1,192 | ||||||||||||||||||||||||||||||||||
| Software expense | 232 | 222 | 218 | 224 | 223 | 896 | 868 | ||||||||||||||||||||||||||||||||||
| Net occupancy expense | 179 | 157 | 160 | 160 | 159 | 656 | 658 | ||||||||||||||||||||||||||||||||||
| Equipment expense | 112 | 84 | 89 | 88 | 103 | 373 | 381 | ||||||||||||||||||||||||||||||||||
| Amortization of intangibles | 84 | 84 | 89 | 88 | 98 | 345 | 395 | ||||||||||||||||||||||||||||||||||
| Marketing and customer development | 74 | 75 | 63 | 56 | 53 | 268 | 260 | ||||||||||||||||||||||||||||||||||
| Operating lease depreciation | 36 | 34 | 34 | 40 | 42 | 144 | 175 | ||||||||||||||||||||||||||||||||||
| Regulatory costs | 56 | 51 | 85 | 152 | 599 | 344 | 824 | ||||||||||||||||||||||||||||||||||
| Restructuring charges | 11 | 25 | 33 | 51 | 155 | 120 | 320 | ||||||||||||||||||||||||||||||||||
| Goodwill impairment | — | — | — | — | 6,078 | — | 6,078 | ||||||||||||||||||||||||||||||||||
| Other expense | 249 | 231 | 354 | 186 | 268 | 1,020 | 1,011 | ||||||||||||||||||||||||||||||||||
| Total noninterest expense | 3,035 | 2,927 | 3,094 | 2,953 | 9,557 | 12,009 | 18,678 | ||||||||||||||||||||||||||||||||||
| Earnings | |||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 1,554 | 1,710 | (5,230) | 1,365 | (5,247) | (601) | (765) | ||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 265 | 271 | (1,324) | 232 | (56) | (556) | 738 | ||||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations(1) | 1,289 | 1,439 | (3,906) | 1,133 | (5,191) | (45) | (1,503) | ||||||||||||||||||||||||||||||||||
Net income from discontinued operations(1) | (13) | 3 | 4,828 | 67 | 101 | 4,885 | 456 | ||||||||||||||||||||||||||||||||||
| Net income (loss) | 1,276 | 1,442 | 922 | 1,200 | (5,090) | 4,840 | (1,047) | ||||||||||||||||||||||||||||||||||
Noncontrolling interests from discontinuing operations(1) | — | — | 19 | 3 | — | 22 | 44 | ||||||||||||||||||||||||||||||||||
| Preferred stock dividends and other | 60 | 106 | 77 | 106 | 77 | 349 | 361 | ||||||||||||||||||||||||||||||||||
| Net income (loss) available to common shareholders | $ | 1,216 | $ | 1,336 | $ | 826 | $ | 1,091 | $ | (5,167) | $ | 4,469 | $ | (1,452) | |||||||||||||||||||||||||||
| Earnings Per Common Share | |||||||||||||||||||||||||||||||||||||||||
Basic earnings from continuing operations(1) | $ | 0.93 | $ | 1.00 | $ | (2.98) | $ | 0.77 | $ | (3.95) | $ | (0.30) | $ | (1.40) | |||||||||||||||||||||||||||
| Basic earnings | 0.92 | 1.00 | 0.62 | 0.82 | (3.87) | $ | 3.36 | (1.09) | |||||||||||||||||||||||||||||||||
Diluted earnings from continuing operations(1) | 0.92 | 0.99 | (2.98) | 0.76 | (3.95) | (0.30) | (1.40) | ||||||||||||||||||||||||||||||||||
| Diluted earnings | 0.91 | 0.99 | 0.62 | 0.81 | (3.87) | 3.36 | (1.09) | ||||||||||||||||||||||||||||||||||
| Weighted Average Shares Outstanding | |||||||||||||||||||||||||||||||||||||||||
| Basic | 1,317,017 | 1,334,212 | 1,338,149 | 1,335,091 | 1,333,703 | 1,331,087 | 1,331,963 | ||||||||||||||||||||||||||||||||||
| Diluted | 1,333,701 | 1,349,129 | 1,338,149 | 1,346,904 | 1,333,703 | 1,331,087 | 1,331,963 | ||||||||||||||||||||||||||||||||||
(1)On February 20, 2024, the Company entered into an agreement to sell the remaining 80% stake of the common equity in TIH to an investor group, representing substantially all of the Company’s IH segment. The sale represents a material strategic shift for the Company and as a result, the Company recast results for all periods presented under the discontinued operations basis of presentation. On May 6, 2024, the Company completed the sale resulting in an after-tax gain of $4.8 billion.
- 2 -
Consolidated Ending Balance Sheets - Five Quarter Trend
| Dec. 31 | Sept. 30 | June 30 | March 31 | Dec. 31 | ||||||||||||||||||||||||||||
| (Dollars in millions) | 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||
| Cash and due from banks | $ | 5,793 | $ | 5,229 | $ | 5,204 | $ | 5,040 | $ | 5,000 | ||||||||||||||||||||||
| Interest-bearing deposits with banks | 33,975 | 34,411 | 35,675 | 29,510 | 25,230 | |||||||||||||||||||||||||||
| Securities borrowed or purchased under resale agreements | 2,550 | 2,973 | 2,338 | 2,091 | 2,378 | |||||||||||||||||||||||||||
| Trading assets at fair value | 5,100 | 5,209 | 5,558 | 5,268 | 4,332 | |||||||||||||||||||||||||||
| Securities available for sale at fair value | 67,464 | 64,111 | 55,969 | 66,050 | 67,366 | |||||||||||||||||||||||||||
| Securities held to maturity at amortized cost | 50,640 | 51,495 | 52,447 | 53,369 | 54,107 | |||||||||||||||||||||||||||
| Loans and leases: | ||||||||||||||||||||||||||||||||
| Commercial: | ||||||||||||||||||||||||||||||||
| Commercial and industrial | 154,848 | 153,925 | 156,400 | 157,669 | 160,788 | |||||||||||||||||||||||||||
| CRE | 20,363 | 20,912 | 21,730 | 22,142 | 22,570 | |||||||||||||||||||||||||||
| Commercial construction | 8,520 | 7,980 | 7,787 | 7,472 | 6,683 | |||||||||||||||||||||||||||
| Consumer: | ||||||||||||||||||||||||||||||||
| Residential mortgage | 55,599 | 53,963 | 54,344 | 54,886 | 55,492 | |||||||||||||||||||||||||||
| Home equity | 9,642 | 9,680 | 9,772 | 9,825 | 10,053 | |||||||||||||||||||||||||||
| Indirect auto | 23,089 | 22,508 | 21,994 | 22,145 | 22,727 | |||||||||||||||||||||||||||
| Other consumer | 29,395 | 29,282 | 28,677 | 28,096 | 28,647 | |||||||||||||||||||||||||||
| Credit card | 4,927 | 4,834 | 4,988 | 4,989 | 5,101 | |||||||||||||||||||||||||||
| Total loans and leases held for investment | 306,383 | 303,084 | 305,692 | 307,224 | 312,061 | |||||||||||||||||||||||||||
| Loans held for sale | 1,388 | 1,278 | 1,457 | 1,253 | 1,280 | |||||||||||||||||||||||||||
| Total loans and leases | 307,771 | 304,362 | 307,149 | 308,477 | 313,341 | |||||||||||||||||||||||||||
| Allowance for loan and lease losses | (4,857) | (4,842) | (4,808) | (4,803) | (4,798) | |||||||||||||||||||||||||||
| Premises and equipment | 3,225 | 3,251 | 3,244 | 3,274 | 3,298 | |||||||||||||||||||||||||||
| Goodwill | 17,125 | 17,125 | 17,157 | 17,157 | 17,156 | |||||||||||||||||||||||||||
| Core deposit and other intangible assets | 1,550 | 1,635 | 1,729 | 1,816 | 1,909 | |||||||||||||||||||||||||||
| Loan servicing rights at fair value | 3,708 | 3,499 | 3,410 | 3,417 | 3,378 | |||||||||||||||||||||||||||
| Other assets | 37,132 | 34,976 | 34,781 | 36,521 | 34,997 | |||||||||||||||||||||||||||
Assets of discontinued operations(1) | — | — | — | 7,772 | 7,655 | |||||||||||||||||||||||||||
| Total assets | $ | 531,176 | $ | 523,434 | $ | 519,853 | $ | 534,959 | $ | 535,349 | ||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | $ | 107,451 | $ | 105,984 | $ | 107,310 | $ | 110,901 | $ | 111,624 | ||||||||||||||||||||||
| Interest checking | 109,042 | 109,493 | 102,654 | 108,329 | 104,757 | |||||||||||||||||||||||||||
| Money market and savings | 137,307 | 134,349 | 136,989 | 133,176 | 135,923 | |||||||||||||||||||||||||||
| Time deposits | 36,724 | 37,952 | 38,458 | 41,859 | 43,561 | |||||||||||||||||||||||||||
| Total deposits | 390,524 | 387,778 | 385,411 | 394,265 | 395,865 | |||||||||||||||||||||||||||
| Short-term borrowings | 29,205 | 20,859 | 22,816 | 26,329 | 24,828 | |||||||||||||||||||||||||||
| Long-term debt | 34,956 | 36,770 | 34,616 | 39,071 | 38,918 | |||||||||||||||||||||||||||
| Other liabilities | 12,812 | 12,331 | 13,183 | 13,119 | 12,946 | |||||||||||||||||||||||||||
| Liabilities of discontinued operations | — | — | — | 3,122 | 3,539 | |||||||||||||||||||||||||||
| Total liabilities | 467,497 | 457,738 | 456,026 | 475,906 | 476,096 | |||||||||||||||||||||||||||
| Shareholders’ Equity: | ||||||||||||||||||||||||||||||||
| Preferred stock | 5,907 | 6,673 | 6,673 | 6,673 | 6,673 | |||||||||||||||||||||||||||
| Common stock | 6,580 | 6,638 | 6,691 | 6,690 | 6,669 | |||||||||||||||||||||||||||
| Additional paid-in capital | 35,628 | 36,020 | 36,364 | 36,197 | 36,177 | |||||||||||||||||||||||||||
| Retained earnings | 23,777 | 23,248 | 22,603 | 22,483 | 22,088 | |||||||||||||||||||||||||||
| Accumulated other comprehensive loss | (8,213) | (6,883) | (8,504) | (13,222) | (12,506) | |||||||||||||||||||||||||||
| Noncontrolling interests | — | — | — | 232 | 152 | |||||||||||||||||||||||||||
| Total shareholders’ equity | 63,679 | 65,696 | 63,827 | 59,053 | 59,253 | |||||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 531,176 | $ | 523,434 | $ | 519,853 | $ | 534,959 | $ | 535,349 | ||||||||||||||||||||||
(1)Includes goodwill and intangible assets of $5.0 billion as of March 31, 2024 and December 31, 2023.
- 3 -
Average Balances and Rates - Quarters
| Quarter Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | Average Balances(1) | Income/ Expense(2) | Yields/ Rates(2) | Average Balances(1) | Income/ Expense(2) | Yields/ Rates(2) | Average Balances(1) | Income/ Expense(2) | Yields/ Rates(2) | Average Balances(1) | Income/ Expense(2) | Yields/ Rates(2) | Average Balances(1) | Income/ Expense(2) | Yields/ Rates(2) | ||||||||||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AFS and HTM securities at amortized cost: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Treasury | $ | 14,387 | $ | 196 | 5.40 | % | $ | 12,986 | $ | 151 | 4.65 | % | $ | 11,138 | $ | 101 | 3.66 | % | $ | 9,853 | $ | 37 | 1.49 | % | $ | 10,967 | $ | 38 | 1.37 | % | |||||||||||||||||||||||||||||
| U.S. government-sponsored entities (GSE) | 412 | 3 | 3.42 | 377 | 4 | 3.41 | 382 | 3 | 3.27 | 389 | 3 | 3.40 | 389 | 2 | 3.23 | ||||||||||||||||||||||||||||||||||||||||||||
| Mortgage-backed securities issued by GSE | 109,644 | 792 | 2.89 | 103,374 | 711 | 2.75 | 108,358 | 720 | 2.66 | 117,301 | 735 | 2.51 | 118,548 | 736 | 2.48 | ||||||||||||||||||||||||||||||||||||||||||||
| States and political subdivisions | 411 | 5 | 4.14 | 417 | 3 | 4.14 | 420 | 5 | 4.14 | 421 | 4 | 4.15 | 421 | 5 | 4.16 | ||||||||||||||||||||||||||||||||||||||||||||
| Non-agency mortgage-backed | — | — | — | — | — | — | 1,480 | 10 | 2.56 | 3,676 | 27 | 2.95 | 3,725 | 22 | 2.37 | ||||||||||||||||||||||||||||||||||||||||||||
| Other | 17 | — | 5.16 | 18 | 1 | 5.18 | 18 | — | 5.29 | 19 | — | 5.35 | 20 | — | 5.47 | ||||||||||||||||||||||||||||||||||||||||||||
| Total securities | 124,871 | 996 | 3.19 | 117,172 | 870 | 2.97 | 121,796 | 839 | 2.76 | 131,659 | 806 | 2.45 | 134,070 | 803 | 2.39 | ||||||||||||||||||||||||||||||||||||||||||||
| Loans and leases: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | 153,209 | 2,293 | 5.95 | 154,102 | 2,482 | 6.41 | 157,043 | 2,550 | 6.53 | 158,385 | 2,572 | 6.53 | 160,278 | 2,657 | 6.58 | ||||||||||||||||||||||||||||||||||||||||||||
| CRE | 20,504 | 337 | 6.47 | 21,481 | 373 | 6.88 | 21,969 | 381 | 6.93 | 22,400 | 389 | 6.95 | 22,755 | 400 | 6.94 | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial construction | 8,261 | 147 | 7.26 | 7,870 | 152 | 7.79 | 7,645 | 147 | 7.85 | 7,134 | 137 | 7.83 | 6,515 | 127 | 7.84 | ||||||||||||||||||||||||||||||||||||||||||||
| Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage | 54,390 | 536 | 3.94 | 53,999 | 525 | 3.89 | 54,490 | 525 | 3.86 | 55,070 | 528 | 3.84 | 55,658 | 532 | 3.83 | ||||||||||||||||||||||||||||||||||||||||||||
| Home equity | 9,675 | 189 | 7.78 | 9,703 | 196 | 8.04 | 9,805 | 195 | 8.02 | 9,930 | 196 | 7.92 | 10,104 | 199 | 7.80 | ||||||||||||||||||||||||||||||||||||||||||||
| Indirect auto | 22,790 | 411 | 7.19 | 22,121 | 399 | 7.18 | 22,016 | 381 | 6.95 | 22,374 | 372 | 6.69 | 23,368 | 381 | 6.46 | ||||||||||||||||||||||||||||||||||||||||||||
| Other consumer | 29,355 | 606 | 8.21 | 29,015 | 603 | 8.26 | 28,326 | 581 | 8.25 | 28,285 | 561 | 7.98 | 28,913 | 561 | 7.69 | ||||||||||||||||||||||||||||||||||||||||||||
| Credit card | 4,926 | 143 | 11.54 | 4,874 | 150 | 12.20 | 4,905 | 148 | 12.14 | 4,923 | 146 | 11.96 | 4,996 | 149 | 11.84 | ||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases held for investment | 303,110 | 4,662 | 6.12 | 303,165 | 4,880 | 6.41 | 306,199 | 4,908 | 6.44 | 308,501 | 4,901 | 6.38 | 312,587 | 5,006 | 6.36 | ||||||||||||||||||||||||||||||||||||||||||||
| Loans held for sale | 1,499 | 21 | 5.87 | 1,413 | 24 | 6.49 | 1,384 | 22 | 6.56 | 925 | 15 | 6.38 | 1,245 | 21 | 6.82 | ||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | 304,609 | 4,683 | 6.12 | 304,578 | 4,904 | 6.41 | 307,583 | 4,930 | 6.44 | 309,426 | 4,916 | 6.38 | 313,832 | 5,027 | 6.36 | ||||||||||||||||||||||||||||||||||||||||||||
| Interest earning trading assets | 5,462 | 79 | 5.86 | 5,454 | 84 | 6.05 | 5,515 | 84 | 6.11 | 4,845 | 79 | 6.50 | 4,680 | 80 | 6.92 | ||||||||||||||||||||||||||||||||||||||||||||
Other earning assets(3) | 37,697 | 472 | 4.91 | 38,933 | 549 | 5.54 | 39,250 | 551 | 5.56 | 30,567 | 436 | 5.74 | 28,956 | 414 | 5.65 | ||||||||||||||||||||||||||||||||||||||||||||
| Total earning assets | 472,639 | 6,230 | 5.25 | 466,137 | 6,407 | 5.47 | 474,144 | 6,404 | 5.42 | 476,497 | 6,237 | 5.25 | 481,538 | 6,324 | 5.22 | ||||||||||||||||||||||||||||||||||||||||||||
| Nonearning assets | 54,374 | 53,278 | 50,109 | 46,921 | 50,485 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets of discontinued operations | — | — | 2,641 | 7,584 | 7,633 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 527,013 | $ | 519,415 | $ | 526,894 | $ | 531,002 | $ | 539,656 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest checking | $ | 107,075 | 679 | 2.52 | $ | 103,899 | 732 | 2.80 | $ | 103,894 | 707 | 2.74 | $ | 103,537 | 684 | 2.65 | $ | 101,722 | 635 | 2.48 | |||||||||||||||||||||||||||||||||||||||
| Money market and savings | 138,242 | 838 | 2.41 | 136,639 | 914 | 2.66 | 135,264 | 873 | 2.60 | 134,696 | 832 | 2.49 | 137,464 | 843 | 2.43 | ||||||||||||||||||||||||||||||||||||||||||||
| Time deposits | 36,757 | 338 | 3.66 | 37,726 | 368 | 3.88 | 41,250 | 436 | 4.24 | 41,937 | 448 | 4.30 | 41,592 | 439 | 4.19 | ||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 282,074 | 1,855 | 2.62 | 278,264 | 2,014 | 2.88 | 280,408 | 2,016 | 2.89 | 280,170 | 1,964 | 2.82 | 280,778 | 1,917 | 2.71 | ||||||||||||||||||||||||||||||||||||||||||||
| Short-term borrowings | 25,006 | 303 | 4.81 | 20,781 | 282 | 5.41 | 26,016 | 362 | 5.58 | 26,230 | 366 | 5.62 | 24,958 | 354 | 5.62 | ||||||||||||||||||||||||||||||||||||||||||||
| Long-term debt | 34,133 | 431 | 5.06 | 35,318 | 454 | 5.13 | 36,721 | 446 | 4.87 | 40,721 | 482 | 4.74 | 40,818 | 476 | 4.67 | ||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 341,213 | 2,589 | 3.02 | 334,363 | 2,750 | 3.27 | 343,145 | 2,824 | 3.31 | 347,121 | 2,812 | 3.26 | 346,554 | 2,747 | 3.15 | ||||||||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 107,968 | 106,080 | 107,634 | 108,888 | 114,555 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 13,537 | 13,631 | 13,318 | 12,885 | 12,433 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities of discontinued operations | — | — | 1,120 | 3,097 | 3,218 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ equity | 64,295 | 65,341 | 61,677 | 59,011 | 62,896 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 527,013 | $ | 519,415 | $ | 526,894 | $ | 531,002 | $ | 539,656 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Average interest-rate spread | 2.23 | 2.20 | 2.11 | 1.99 | 2.07 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income/ net interest margin | $ | 3,641 | 3.07 | % | $ | 3,657 | 3.12 | % | $ | 3,580 | 3.02 | % | $ | 3,425 | 2.88 | % | $ | 3,577 | 2.95 | % | |||||||||||||||||||||||||||||||||||||||
| Taxable-equivalent adjustment | 51 | 55 | 53 | 53 | 58 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Memo: Total deposits | $ | 390,042 | 1,855 | 1.89 | % | $ | 384,344 | 2,014 | 2.08 | % | $ | 388,042 | 2,016 | 2.09 | % | $ | 389,058 | 1,964 | 2.03 | % | $ | 395,333 | 1,917 | 1.92 | % | ||||||||||||||||||||||||||||||||||
(1)Represents daily average balances. Unrealized gains and losses on available-for-sale securities are included in nonearning assets. Active hedge basis adjustments for fair value hedges are included in nonearning assets and other liabilities. In the third quarter of 2024, Truist revised its presentation of active hedge basis adjustments for fair value hedges on securities to be included in nonearning assets for all periods presented.
(2)Amounts are on a taxable-equivalent basis utilizing the federal income tax rate of 21% for the periods presented. Interest income includes certain fees, deferred costs, and dividends.
(3)Includes cash equivalents, interest-bearing deposits with banks, FHLB stock, and other earning assets.
- 4 -
Average Balances and Rates - Year-To-Date
| Year-to-Date | ||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | Average Balances(1) | Income/Expense(2) | Yields/ Rates(2) | Average Balances(1) | Income/Expense(2) | Yields/ Rates(2) | ||||||||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||||||||||||||
| AFS and HTM securities at amortized cost: | ||||||||||||||||||||||||||||||||||||||||||||
| U.S. Treasury | $ | 12,100 | $ | 485 | 4.01 | % | $ | 11,021 | $ | 132 | 1.20 | % | ||||||||||||||||||||||||||||||||
| U.S. government-sponsored entities (GSE) | 390 | 13 | 3.38 | 348 | 10 | 2.94 | ||||||||||||||||||||||||||||||||||||||
| Mortgage-backed securities issued by GSE | 109,652 | 2,958 | 2.70 | 121,923 | 2,821 | 2.31 | ||||||||||||||||||||||||||||||||||||||
| States and political subdivisions | 417 | 17 | 4.14 | 424 | 18 | 4.13 | ||||||||||||||||||||||||||||||||||||||
| Non-agency mortgage-backed | 1,282 | 37 | 2.85 | 3,816 | 89 | 2.34 | ||||||||||||||||||||||||||||||||||||||
| Other | 17 | 1 | 5.25 | 20 | 1 | 5.37 | ||||||||||||||||||||||||||||||||||||||
| Total securities | 123,858 | 3,511 | 2.83 | 137,552 | 3,071 | 2.23 | ||||||||||||||||||||||||||||||||||||||
| Loans and leases: | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial: | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | 155,674 | 9,897 | 6.36 | 163,983 | 10,389 | 6.34 | ||||||||||||||||||||||||||||||||||||||
| CRE | 21,585 | 1,480 | 6.81 | 22,741 | 1,535 | 6.71 | ||||||||||||||||||||||||||||||||||||||
| Commercial construction | 7,729 | 583 | 7.67 | 6,125 | 459 | 7.62 | ||||||||||||||||||||||||||||||||||||||
| Consumer: | ||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage | 54,486 | 2,114 | 3.88 | 56,131 | 2,121 | 3.78 | ||||||||||||||||||||||||||||||||||||||
| Home equity | 9,778 | 776 | 7.94 | 10,388 | 765 | 7.36 | ||||||||||||||||||||||||||||||||||||||
| Indirect auto | 22,326 | 1,563 | 7.00 | 25,621 | 1,563 | 6.10 | ||||||||||||||||||||||||||||||||||||||
| Other consumer | 28,748 | 2,351 | 8.18 | 28,412 | 2,061 | 7.25 | ||||||||||||||||||||||||||||||||||||||
| Student | — | — | — | 2,453 | 170 | 6.91 | ||||||||||||||||||||||||||||||||||||||
| Credit card | 4,907 | 587 | 11.96 | 4,876 | 565 | 11.59 | ||||||||||||||||||||||||||||||||||||||
| Total loans and leases held for investment | 305,233 | 19,351 | 6.34 | 320,730 | 19,628 | 6.12 | ||||||||||||||||||||||||||||||||||||||
| Loans held for sale | 1,305 | 82 | 6.31 | 1,605 | 102 | 6.37 | ||||||||||||||||||||||||||||||||||||||
| Total loans and leases | 306,538 | 19,433 | 6.34 | 322,335 | 19,730 | 6.12 | ||||||||||||||||||||||||||||||||||||||
| Interest earning trading assets | 5,320 | 326 | 6.12 | 4,739 | 314 | 6.64 | ||||||||||||||||||||||||||||||||||||||
Other earning assets(3) | 36,622 | 2,008 | 5.48 | 29,335 | 1,557 | 5.31 | ||||||||||||||||||||||||||||||||||||||
| Total earning assets | 472,338 | 25,278 | 5.35 | 493,961 | 24,672 | 4.99 | ||||||||||||||||||||||||||||||||||||||
| Nonearning assets | 51,185 | 51,554 | ||||||||||||||||||||||||||||||||||||||||||
| Assets of discontinued operations | 2,542 | 7,617 | ||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 526,065 | $ | 553,132 | ||||||||||||||||||||||||||||||||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||||
| Interest checking | $ | 104,606 | 2,802 | 2.68 | $ | 103,465 | 2,184 | 2.11 | ||||||||||||||||||||||||||||||||||||
| Money market and savings | 136,217 | 3,457 | 2.54 | 138,841 | 2,834 | 2.04 | ||||||||||||||||||||||||||||||||||||||
| Time deposits | 39,406 | 1,590 | 4.04 | 36,803 | 1,409 | 3.83 | ||||||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 280,229 | 7,849 | 2.80 | 279,109 | 6,427 | 2.30 | ||||||||||||||||||||||||||||||||||||||
| Short-term borrowings | 24,499 | 1,313 | 5.36 | 24,478 | 1,286 | 5.25 | ||||||||||||||||||||||||||||||||||||||
| Long-term debt | 36,713 | 1,813 | 4.94 | 49,678 | 2,215 | 4.46 | ||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 341,441 | 10,975 | 3.21 | 353,265 | 9,928 | 2.81 | ||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 107,639 | 122,018 | ||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 13,343 | 11,560 | ||||||||||||||||||||||||||||||||||||||||||
| Liabilities of discontinued operations | 1,049 | 3,190 | ||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ equity | 62,593 | 63,099 | ||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 526,065 | $ | 553,132 | ||||||||||||||||||||||||||||||||||||||||
| Average interest-rate spread | 2.14 | 2.18 | ||||||||||||||||||||||||||||||||||||||||||
| Net interest income/ net interest margin | $ | 14,303 | 3.03 | % | $ | 14,744 | 2.98 | % | ||||||||||||||||||||||||||||||||||||
| Taxable-equivalent adjustment | 212 | 220 | ||||||||||||||||||||||||||||||||||||||||||
| Memo: Total deposits | $ | 387,868 | 7,849 | 2.02 | % | $ | 401,127 | 6,427 | 1.60 | % | ||||||||||||||||||||||||||||||||||
(1)Represents daily average balances. Unrealized gains and losses on available-for-sale securities are included in nonearning assets. Active hedge basis adjustments for fair value hedges are included in nonearning assets and other liabilities. In the third quarter of 2024, Truist revised its presentation of active hedge basis adjustments for fair value hedges on securities to be included in nonearning assets for all periods presented.
(2)Amounts are on a taxable-equivalent basis utilizing the federal income tax rate of 21% for the periods presented. Interest income includes certain fees, deferred costs, and dividends.
(3)Includes cash equivalents, interest-bearing deposits with banks, FHLB stock, and other earning assets.
- 5 -
Credit Quality
| Dec. 31 | Sept. 30 | June 30 | March 31 | Dec. 31 | ||||||||||||||||||||||||||||
| (Dollars in millions) | 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||||||||||||||
| Nonperforming Assets | ||||||||||||||||||||||||||||||||
| Nonaccrual loans and leases: | ||||||||||||||||||||||||||||||||
| Commercial: | ||||||||||||||||||||||||||||||||
| Commercial and industrial | $ | 521 | $ | 575 | $ | 459 | $ | 512 | $ | 470 | ||||||||||||||||||||||
| CRE | 298 | 302 | 360 | 261 | 284 | |||||||||||||||||||||||||||
| Commercial construction | 3 | 1 | — | 23 | 24 | |||||||||||||||||||||||||||
| Consumer: | ||||||||||||||||||||||||||||||||
| Residential mortgage | 166 | 156 | 161 | 151 | 153 | |||||||||||||||||||||||||||
| Home equity | 116 | 118 | 123 | 130 | 122 | |||||||||||||||||||||||||||
| Indirect auto | 259 | 252 | 244 | 256 | 268 | |||||||||||||||||||||||||||
| Other consumer | 66 | 63 | 64 | 61 | 59 | |||||||||||||||||||||||||||
| Total nonaccrual loans and leases held for investment | 1,429 | 1,467 | 1,411 | 1,394 | 1,380 | |||||||||||||||||||||||||||
| Loans held for sale | — | 5 | 9 | 22 | 51 | |||||||||||||||||||||||||||
| Total nonaccrual loans and leases | 1,429 | 1,472 | 1,420 | 1,416 | 1,431 | |||||||||||||||||||||||||||
| Foreclosed real estate | 3 | 3 | 5 | 4 | 3 | |||||||||||||||||||||||||||
| Other foreclosed property | 45 | 53 | 51 | 56 | 54 | |||||||||||||||||||||||||||
| Total nonperforming assets | $ | 1,477 | $ | 1,528 | $ | 1,476 | $ | 1,476 | $ | 1,488 | ||||||||||||||||||||||
| Loans 90 Days or More Past Due and Still Accruing | ||||||||||||||||||||||||||||||||
| Commercial: | ||||||||||||||||||||||||||||||||
| Commercial and industrial | $ | 19 | $ | 5 | $ | 8 | $ | 12 | $ | 7 | ||||||||||||||||||||||
| CRE | 1 | — | — | — | — | |||||||||||||||||||||||||||
| Commercial construction | — | — | 1 | — | 1 | |||||||||||||||||||||||||||
| Consumer: | ||||||||||||||||||||||||||||||||
| Residential mortgage - government guaranteed | 430 | 394 | 375 | 408 | 418 | |||||||||||||||||||||||||||
| Residential mortgage - nonguaranteed | 51 | 39 | 27 | 33 | 21 | |||||||||||||||||||||||||||
| Home equity | 9 | 7 | 7 | 10 | 11 | |||||||||||||||||||||||||||
| Indirect auto | — | — | 1 | 1 | 2 | |||||||||||||||||||||||||||
| Other consumer | 23 | 22 | 19 | 18 | 21 | |||||||||||||||||||||||||||
| Credit card | 54 | 51 | 51 | 56 | 53 | |||||||||||||||||||||||||||
| Total loans 90 days past due and still accruing | $ | 587 | $ | 518 | $ | 489 | $ | 538 | $ | 534 | ||||||||||||||||||||||
| Loans 30-89 Days Past Due | ||||||||||||||||||||||||||||||||
| Commercial: | ||||||||||||||||||||||||||||||||
| Commercial and industrial | $ | 168 | $ | 116 | $ | 109 | $ | 158 | $ | 230 | ||||||||||||||||||||||
| CRE | 60 | 10 | 8 | 21 | 5 | |||||||||||||||||||||||||||
| Commercial construction | 3 | 4 | — | — | — | |||||||||||||||||||||||||||
| Consumer: | ||||||||||||||||||||||||||||||||
| Residential mortgage - government guaranteed | 318 | 305 | 340 | 286 | 326 | |||||||||||||||||||||||||||
| Residential mortgage - nonguaranteed | 401 | 366 | 392 | 352 | 313 | |||||||||||||||||||||||||||
| Home equity | 60 | 63 | 58 | 59 | 70 | |||||||||||||||||||||||||||
| Indirect auto | 622 | 596 | 592 | 540 | 669 | |||||||||||||||||||||||||||
| Other consumer | 236 | 233 | 214 | 226 | 271 | |||||||||||||||||||||||||||
| Credit card | 81 | 76 | 78 | 74 | 87 | |||||||||||||||||||||||||||
| Total loans 30-89 days past due | $ | 1,949 | $ | 1,769 | $ | 1,791 | $ | 1,716 | $ | 1,971 | ||||||||||||||||||||||
- 6 -
| As of/For the Quarter Ended | |||||||||||||||||||||||||||||||||||||||||||||||
| Dec. 31 | Sept. 30 | June 30 | March 31 | Dec. 31 | |||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||
| Asset Quality Ratios | |||||||||||||||||||||||||||||||||||||||||||||||
| Loans 30-89 days past due and still accruing as a percentage of loans and leases | 0.64 | % | 0.58 | % | 0.59 | % | 0.56 | % | 0.63 | % | |||||||||||||||||||||||||||||||||||||
| Loans 90 days or more past due and still accruing as a percentage of loans and leases | 0.19 | 0.17 | 0.16 | 0.18 | 0.17 | ||||||||||||||||||||||||||||||||||||||||||
| Nonperforming loans and leases as a percentage of loans and leases held for investment | 0.47 | 0.48 | 0.46 | 0.45 | 0.44 | ||||||||||||||||||||||||||||||||||||||||||
Nonperforming loans and leases as a percentage of loans and leases(1) | 0.46 | 0.48 | 0.46 | 0.46 | 0.46 | ||||||||||||||||||||||||||||||||||||||||||
| Nonperforming assets as a percentage of: | |||||||||||||||||||||||||||||||||||||||||||||||
Total assets(1) | 0.28 | 0.29 | 0.28 | 0.28 | 0.28 | ||||||||||||||||||||||||||||||||||||||||||
| Loans and leases plus foreclosed property | 0.48 | 0.50 | 0.48 | 0.47 | 0.46 | ||||||||||||||||||||||||||||||||||||||||||
| Net charge-offs as a percentage of average loans and leases | 0.59 | 0.55 | 0.58 | 0.64 | 0.57 | ||||||||||||||||||||||||||||||||||||||||||
| Allowance for loan and lease losses as a percentage of loans and leases | 1.59 | 1.60 | 1.57 | 1.56 | 1.54 | ||||||||||||||||||||||||||||||||||||||||||
| Ratio of allowance for loan and lease losses to: | |||||||||||||||||||||||||||||||||||||||||||||||
| Net charge-offs | 2.7X | 2.9X | 2.7X | 2.4X | 2.7X | ||||||||||||||||||||||||||||||||||||||||||
| Nonperforming loans and leases | 3.4X | 3.3X | 3.4X | 3.4X | 3.5X | ||||||||||||||||||||||||||||||||||||||||||
| Asset Quality Ratios (Excluding Government Guaranteed) | |||||||||||||||||||||||||||||||||||||||||||||||
| Loans 90 days or more past due and still accruing as a percentage of loans and leases | 0.05 | % | 0.04 | % | 0.04 | % | 0.04 | % | 0.04 | % | |||||||||||||||||||||||||||||||||||||
| Applicable ratios are annualized. | |||||||||||||||||||||||||||||||||||||||||||||||
(1)Includes loans held for sale. | |||||||||||||||||||||||||||||||||||||||||||||||
| As of/For the Year-to-Date | |||||||||||||||||||||||||||||||||||||||||||||||
| Period Ended Dec. 31 | |||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
| Asset Quality Ratios | |||||||||||||||||||||||||||||||||||||||||||||||
| Net charge-offs as a percentage of average loans and leases | 0.59 | % | 0.50 | % | |||||||||||||||||||||||||||||||||||||||||||
| Ratio of allowance for loan and lease losses to net charge-offs | 2.7X | 3.0X | |||||||||||||||||||||||||||||||||||||||||||||
Applicable ratios are annualized.
- 7 -
| As of/For the Quarter Ended | As of/For the Year-to-Date | |||||||||||||||||||||||||||||||||||||||||||
| Dec. 31 | Sept. 30 | June 30 | March 31 | Dec. 31 | Period Ended Dec. 31 | |||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 2024 | 2024 | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||
| Allowance for Credit Losses | ||||||||||||||||||||||||||||||||||||||||||||
| Beginning balance | $ | 5,140 | $ | 5,110 | $ | 5,100 | $ | 5,093 | $ | 4,970 | $ | 5,093 | $ | 4,649 | ||||||||||||||||||||||||||||||
| Provision for credit losses | 471 | 448 | 451 | 500 | 572 | 1,870 | 2,109 | |||||||||||||||||||||||||||||||||||||
| Charge-offs: | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial: | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | (119) | (96) | (83) | (97) | (110) | (395) | (390) | |||||||||||||||||||||||||||||||||||||
| CRE | (51) | (65) | (97) | (103) | (48) | (316) | (166) | |||||||||||||||||||||||||||||||||||||
| Commercial construction | — | — | — | — | (5) | — | (5) | |||||||||||||||||||||||||||||||||||||
| Consumer: | ||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage | (1) | — | (1) | (1) | — | (3) | (10) | |||||||||||||||||||||||||||||||||||||
| Home equity | (2) | (1) | (3) | (3) | (2) | (9) | (10) | |||||||||||||||||||||||||||||||||||||
| Indirect auto | (158) | (143) | (136) | (154) | (154) | (591) | (531) | |||||||||||||||||||||||||||||||||||||
| Other consumer | (148) | (152) | (141) | (165) | (148) | (606) | (477) | |||||||||||||||||||||||||||||||||||||
| Student | — | — | — | — | — | — | (108) | |||||||||||||||||||||||||||||||||||||
| Credit card | (74) | (71) | (74) | (77) | (64) | (296) | (223) | |||||||||||||||||||||||||||||||||||||
| Total charge-offs | (553) | (528) | (535) | (600) | (531) | (2,216) | (1,920) | |||||||||||||||||||||||||||||||||||||
| Recoveries: | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial: | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | 15 | 26 | 14 | 32 | 16 | 87 | 70 | |||||||||||||||||||||||||||||||||||||
| CRE | 17 | 5 | 5 | 7 | — | 34 | 3 | |||||||||||||||||||||||||||||||||||||
| Commercial construction | — | 1 | 1 | — | 2 | 2 | 3 | |||||||||||||||||||||||||||||||||||||
| Consumer: | ||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage | 2 | 1 | 2 | 1 | 1 | 6 | 6 | |||||||||||||||||||||||||||||||||||||
| Home equity | 3 | 4 | 4 | 5 | 5 | 16 | 23 | |||||||||||||||||||||||||||||||||||||
| Indirect auto | 24 | 38 | 30 | 28 | 25 | 120 | 107 | |||||||||||||||||||||||||||||||||||||
| Other consumer | 28 | 26 | 28 | 28 | 21 | 110 | 78 | |||||||||||||||||||||||||||||||||||||
| Credit card | 11 | 9 | 9 | 9 | 8 | 38 | 35 | |||||||||||||||||||||||||||||||||||||
| Total recoveries | 100 | 110 | 93 | 110 | 78 | 413 | 325 | |||||||||||||||||||||||||||||||||||||
| Net charge-offs | (453) | (418) | (442) | (490) | (453) | (1,803) | (1,595) | |||||||||||||||||||||||||||||||||||||
Other(1) | 3 | — | 1 | (3) | 4 | 1 | (70) | |||||||||||||||||||||||||||||||||||||
| Ending balance | $ | 5,161 | $ | 5,140 | $ | 5,110 | $ | 5,100 | $ | 5,093 | $ | 5,161 | $ | 5,093 | ||||||||||||||||||||||||||||||
| Allowance for Credit Losses: | ||||||||||||||||||||||||||||||||||||||||||||
| Allowance for loan and lease losses | $ | 4,857 | $ | 4,842 | $ | 4,808 | $ | 4,803 | $ | 4,798 | ||||||||||||||||||||||||||||||||||
| Reserve for unfunded lending commitments (RUFC) | 304 | 298 | 302 | 297 | 295 | |||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses | $ | 5,161 | $ | 5,140 | $ | 5,110 | $ | 5,100 | $ | 5,093 | ||||||||||||||||||||||||||||||||||
(1)The year ended December 31, 2023 includes the impact from the adoption of the Troubled Debt Restructurings and Vintage Disclosures accounting standard.
| Quarter Ended | As of/For the Year-to-Date | |||||||||||||||||||||||||||||||||||||||||||
| Dec. 31 | Sept. 30 | June 30 | March 31 | Dec. 31 | Period Ended Dec. 31 | |||||||||||||||||||||||||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||
| Net Charge-offs as a Percentage of Average Loans and Leases: | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial: | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | 0.27 | % | 0.18 | % | 0.18 | % | 0.17 | % | 0.23 | % | 0.20 | % | 0.20 | % | ||||||||||||||||||||||||||||||
| CRE | 0.66 | 1.12 | 1.67 | 1.73 | 0.83 | 1.31 | 0.71 | |||||||||||||||||||||||||||||||||||||
| Commercial construction | (0.02) | (0.01) | (0.05) | (0.02) | 0.22 | (0.03) | 0.04 | |||||||||||||||||||||||||||||||||||||
| Consumer: | ||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage | (0.01) | (0.01) | (0.01) | — | (0.01) | (0.01) | 0.01 | |||||||||||||||||||||||||||||||||||||
| Home equity | (0.07) | (0.11) | (0.03) | (0.08) | (0.12) | (0.07) | (0.12) | |||||||||||||||||||||||||||||||||||||
| Indirect auto | 2.33 | 1.89 | 1.94 | 2.26 | 2.19 | 2.11 | 1.66 | |||||||||||||||||||||||||||||||||||||
| Other consumer | 1.63 | 1.73 | 1.60 | 1.96 | 1.74 | 1.73 | 1.40 | |||||||||||||||||||||||||||||||||||||
| Student | — | — | — | — | — | — | 4.39 | |||||||||||||||||||||||||||||||||||||
| Credit card | 5.10 | 5.04 | 5.33 | 5.54 | 4.38 | 5.26 | 3.85 | |||||||||||||||||||||||||||||||||||||
| Total loans and leases | 0.59 | 0.55 | 0.58 | 0.64 | 0.57 | 0.59 | 0.50 | |||||||||||||||||||||||||||||||||||||
| Applicable ratios are annualized. | ||||||||||||||||||||||||||||||||||||||||||||
- 8 -
Segment Financial Performance - Preliminary(1)(2)
| Quarter Ended | ||||||||||||||||||||||||||||||||
| Dec. 31 | Sept. 30 | June 30 | March 31 | Dec. 31 | ||||||||||||||||||||||||||||
| (Dollars in millions) | 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||||||||||||||
| Consumer and Small Business Banking | ||||||||||||||||||||||||||||||||
| Net interest income (expense) | $ | 1,388 | $ | 1,345 | $ | 1,289 | $ | 1,266 | $ | 1,342 | ||||||||||||||||||||||
| Net intersegment interest income (expense) | 1,203 | 1,311 | 1,354 | 1,352 | 1,288 | |||||||||||||||||||||||||||
| Segment net interest income (expense) | 2,591 | 2,656 | 2,643 | 2,618 | 2,630 | |||||||||||||||||||||||||||
| Allocated provision for credit losses | 344 | 353 | 308 | 303 | 359 | |||||||||||||||||||||||||||
| Noninterest income | 535 | 506 | 503 | 497 | 519 | |||||||||||||||||||||||||||
| Personnel expense | 406 | 399 | 417 | 405 | 416 | |||||||||||||||||||||||||||
| Amortization of intangibles | 45 | 45 | 45 | 46 | 52 | |||||||||||||||||||||||||||
| Restructuring charges | 1 | 1 | 1 | 1 | 33 | |||||||||||||||||||||||||||
| Goodwill impairment | — | — | — | — | 3,361 | |||||||||||||||||||||||||||
| Other direct noninterest expense | 308 | 298 | 265 | 244 | 303 | |||||||||||||||||||||||||||
| Direct noninterest expense | 760 | 743 | 728 | 696 | 4,165 | |||||||||||||||||||||||||||
| Expense allocations | 981 | 920 | 934 | 890 | 981 | |||||||||||||||||||||||||||
Total noninterest expense(3) | 1,741 | 1,663 | 1,662 | 1,586 | 5,146 | |||||||||||||||||||||||||||
| Income (loss) before income taxes | 1,041 | 1,146 | 1,176 | 1,226 | (2,356) | |||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 249 | 274 | 282 | 294 | 244 | |||||||||||||||||||||||||||
| Segment net income (loss) | $ | 792 | $ | 872 | $ | 894 | $ | 932 | $ | (2,600) | ||||||||||||||||||||||
| Wholesale Banking | ||||||||||||||||||||||||||||||||
| Net interest income (expense) | $ | 1,978 | $ | 2,105 | $ | 2,184 | $ | 2,232 | $ | 2,297 | ||||||||||||||||||||||
| Net intersegment interest income (expense) | (342) | (469) | (507) | (559) | (580) | |||||||||||||||||||||||||||
| Segment net interest income (expense) | 1,636 | 1,636 | 1,677 | 1,673 | 1,717 | |||||||||||||||||||||||||||
| Allocated provision for credit losses | 126 | 96 | 142 | 198 | 212 | |||||||||||||||||||||||||||
| Noninterest income | 1,038 | 1,048 | 987 | 980 | 878 | |||||||||||||||||||||||||||
| Personnel expense | 553 | 569 | 586 | 580 | 515 | |||||||||||||||||||||||||||
| Amortization of intangibles | 39 | 39 | 41 | 42 | 46 | |||||||||||||||||||||||||||
| Restructuring charges | 4 | 9 | 9 | 7 | 47 | |||||||||||||||||||||||||||
| Goodwill impairment | — | — | — | — | 2,717 | |||||||||||||||||||||||||||
| Other direct noninterest expense | 206 | 182 | 186 | 176 | 210 | |||||||||||||||||||||||||||
| Direct noninterest expense | 802 | 799 | 822 | 805 | 3,535 | |||||||||||||||||||||||||||
| Expense allocations | 497 | 436 | 447 | 528 | 898 | |||||||||||||||||||||||||||
Total noninterest expense(3) | 1,299 | 1,235 | 1,269 | 1,333 | 4,433 | |||||||||||||||||||||||||||
| Income (loss) before income taxes | 1,249 | 1,353 | 1,253 | 1,122 | (2,050) | |||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 248 | 273 | 252 | 220 | 115 | |||||||||||||||||||||||||||
| Segment net income (loss) | $ | 1,001 | $ | 1,080 | $ | 1,001 | $ | 902 | $ | (2,165) | ||||||||||||||||||||||
Other, Treasury & Corporate(4) | ||||||||||||||||||||||||||||||||
| Net interest income (expense) | $ | 224 | $ | 152 | $ | 54 | $ | (126) | $ | (120) | ||||||||||||||||||||||
| Net intersegment interest income (expense) | (861) | (842) | (847) | (793) | (708) | |||||||||||||||||||||||||||
| Segment net interest income (expense) | (637) | (690) | (793) | (919) | (828) | |||||||||||||||||||||||||||
| Allocated provision for credit losses | 1 | (1) | 1 | (1) | 1 | |||||||||||||||||||||||||||
| Noninterest income | (103) | (71) | (6,702) | (31) | (34) | |||||||||||||||||||||||||||
| Personnel expense | 628 | 660 | 658 | 645 | 543 | |||||||||||||||||||||||||||
| Amortization of intangibles | — | — | 3 | — | — | |||||||||||||||||||||||||||
| Restructuring charges | 6 | 15 | 23 | 43 | 75 | |||||||||||||||||||||||||||
| Other direct noninterest expense | 839 | 710 | 860 | 764 | 1,239 | |||||||||||||||||||||||||||
| Direct Noninterest Expense | 1,473 | 1,385 | 1,544 | 1,452 | 1,857 | |||||||||||||||||||||||||||
| Expense Allocations | (1,478) | (1,356) | (1,381) | (1,418) | (1,879) | |||||||||||||||||||||||||||
Total noninterest expense(3) | (5) | 29 | 163 | 34 | (22) | |||||||||||||||||||||||||||
| Income (loss) before income taxes | (736) | (789) | (7,659) | (983) | (841) | |||||||||||||||||||||||||||
| Provision (benefit) for income taxes | (232) | (276) | (1,858) | (282) | (415) | |||||||||||||||||||||||||||
| Segment net income (loss) | $ | (504) | $ | (513) | $ | (5,801) | $ | (701) | $ | (426) | ||||||||||||||||||||||
| Total Truist Financial Corporation | ||||||||||||||||||||||||||||||||
| Net interest income (expense) | $ | 3,590 | $ | 3,602 | $ | 3,527 | $ | 3,372 | $ | 3,519 | ||||||||||||||||||||||
| Net intersegment interest income (expense) | — | — | — | — | — | |||||||||||||||||||||||||||
| Segment net interest income (expense) | 3,590 | 3,602 | 3,527 | 3,372 | 3,519 | |||||||||||||||||||||||||||
| Allocated provision for credit losses | 471 | 448 | 451 | 500 | 572 | |||||||||||||||||||||||||||
| Noninterest income | 1,470 | 1,483 | (5,212) | 1,446 | 1,363 | |||||||||||||||||||||||||||
| Personnel expense | 1,587 | 1,628 | 1,661 | 1,630 | 1,474 | |||||||||||||||||||||||||||
| Amortization of intangibles | 84 | 84 | 89 | 88 | 98 | |||||||||||||||||||||||||||
| Restructuring charges | 11 | 25 | 33 | 51 | 155 | |||||||||||||||||||||||||||
| Goodwill impairment | — | — | — | — | 6,078 | |||||||||||||||||||||||||||
| Other direct noninterest expense | 1,353 | 1,190 | 1,311 | 1,184 | 1,752 | |||||||||||||||||||||||||||
| Direct Noninterest Expense | 3,035 | 2,927 | 3,094 | 2,953 | 9,557 | |||||||||||||||||||||||||||
| Expense Allocations | — | — | — | — | — | |||||||||||||||||||||||||||
| Total noninterest expense | 3,035 | 2,927 | 3,094 | 2,953 | 9,557 | |||||||||||||||||||||||||||
| Income (loss) before income taxes | 1,554 | 1,710 | (5,230) | 1,365 | (5,247) | |||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 265 | 271 | (1,324) | 232 | (56) | |||||||||||||||||||||||||||
| Net income (loss) from continuing operations | $ | 1,289 | $ | 1,439 | $ | (3,906) | $ | 1,133 | $ | (5,191) | ||||||||||||||||||||||
(1)Effective January 1, 2024, several business activities were realigned reflecting updates to the Company’s operating structure. First, the CB&W segment was renamed CSBB and the C&CB segment was renamed WB. Second, the Wealth business was realigned into the WB segment from the CSBB segment, representing a separate reporting unit in that segment. Third, the small business banking client segmentation was realigned into the CSBB segment from the WB segment. The segment disclosures have been revised to reflect the segment realignment.
(2)On February 20, 2024, the Company entered into an agreement to sell the remaining 80% stake of the common equity in TIH to an investor group, representing substantially all of the Company’s IH segment. The sale represents a material strategic shift for the Company and as a result, the Company recast results for all periods presented under the discontinued operations basis of presentation. On May 6, 2024, the Company completed the sale resulting in an after-tax gain of $4.8 billion. As a result, the IH segment is no longer presented in the table above.
(3)In the third quarter of 2024, corporate expense allocation methodology was enhanced to more fully allocate certain overhead or functional expenses based on actual OT&C noninterest expense performance. Prior period results have been revised to conform to the current allocation methodology, which was not considered material to the Company’s results.
(4)Includes financial data from subsidiaries below the quantitative and qualitative thresholds requiring disclosure.
- 9 -
Capital Information - Five Quarter Trend
| As of/For the Quarter Ended | ||||||||||||||||||||||||||||||||
| Dec. 31 | Sept. 30 | June 30 | March 31 | Dec. 31 | ||||||||||||||||||||||||||||
| (Dollars in millions, except per share data, shares in thousands) | 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||||||||||||||
| Selected Capital Information | (preliminary) | |||||||||||||||||||||||||||||||
| Risk-based capital: | ||||||||||||||||||||||||||||||||
| Common equity tier 1 | $ | 48,223 | $ | 48,076 | $ | 47,706 | $ | 42,691 | $ | 42,671 | ||||||||||||||||||||||
| Tier 1 | 54,127 | 54,746 | 54,376 | 49,361 | 49,341 | |||||||||||||||||||||||||||
| Total | 62,583 | 63,349 | 63,345 | 58,548 | 58,063 | |||||||||||||||||||||||||||
| Risk-weighted assets | 419,329 | 414,828 | 412,607 | 421,680 | 423,705 | |||||||||||||||||||||||||||
| Average quarterly assets for leverage ratio | 515,831 | 508,280 | 519,467 | 522,095 | 533,084 | |||||||||||||||||||||||||||
| Average quarterly assets for supplementary leverage ratio | 612,289 | 600,000 | 608,627 | 614,238 | 624,591 | |||||||||||||||||||||||||||
| Risk-based capital ratios: | ||||||||||||||||||||||||||||||||
| Common equity tier 1 | 11.5 | % | 11.6 | % | 11.6 | % | 10.1 | % | 10.1 | % | ||||||||||||||||||||||
| Tier 1 | 12.9 | 13.2 | 13.2 | 11.7 | 11.6 | |||||||||||||||||||||||||||
| Total | 14.9 | 15.3 | 15.4 | 13.9 | 13.7 | |||||||||||||||||||||||||||
| Leverage capital ratio | 10.5 | 10.8 | 10.5 | 9.5 | 9.3 | |||||||||||||||||||||||||||
| Supplementary leverage | 8.8 | 9.1 | 8.9 | 8.0 | 7.9 | |||||||||||||||||||||||||||
| Common equity per common share | $ | 43.90 | $ | 44.46 | $ | 42.71 | $ | 38.97 | $ | 39.31 | ||||||||||||||||||||||
| Dec. 31 | Sept. 30 | June 30 | March 31 | Dec. 31 | ||||||||||||||||||||||||||||
| (Dollars in millions, except per share data, shares in thousands) | 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||||||||||||||
Calculations of Tangible Common Equity and Related Measures:(1) | ||||||||||||||||||||||||||||||||
| Total shareholders’ equity | $ | 63,679 | $ | 65,696 | $ | 63,827 | $ | 59,053 | $ | 59,253 | ||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||
| Preferred stock | 5,907 | 6,673 | 6,673 | 6,673 | 6,673 | |||||||||||||||||||||||||||
| Noncontrolling interests | — | — | — | 232 | 152 | |||||||||||||||||||||||||||
| Intangible assets, net of deferred taxes (including discontinued operations) | 18,274 | 18,350 | 18,471 | 23,198 | 23,306 | |||||||||||||||||||||||||||
| Tangible common equity | $ | 39,498 | $ | 40,673 | $ | 38,683 | $ | 28,950 | $ | 29,122 | ||||||||||||||||||||||
| Outstanding shares at end of period (in thousands) | 1,315,936 | 1,327,521 | 1,338,223 | 1,338,096 | 1,333,743 | |||||||||||||||||||||||||||
| Tangible common equity per common share | $ | 30.01 | $ | 30.64 | $ | 28.91 | $ | 21.64 | $ | 21.83 | ||||||||||||||||||||||
| Total assets | $ | 531,176 | $ | 523,434 | $ | 519,853 | $ | 534,959 | $ | 535,349 | ||||||||||||||||||||||
| Less: Intangible assets, net of deferred taxes (including discontinued operations prior to the sale of TIH) | 18,274 | 18,350 | 18,471 | 23,198 | 23,306 | |||||||||||||||||||||||||||
| Tangible assets | $ | 512,902 | $ | 505,084 | $ | 501,382 | $ | 511,761 | $ | 512,043 | ||||||||||||||||||||||
| Equity as a percentage of total assets | 12.0 | % | 12.6 | % | 12.3 | % | 11.0 | % | 11.1 | % | ||||||||||||||||||||||
| Tangible common equity as a percentage of tangible assets | 7.7 | 8.1 | 7.7 | 5.7 | 5.7 | |||||||||||||||||||||||||||
(1)Tangible common equity is a non-GAAP measure that excludes the impact of intangible assets, net of deferred taxes. This measure is useful for evaluating the performance of a business consistently, whether acquired or developed internally. Truist’s management uses this measure to assess balance sheet risk and shareholder value. These measures are not necessarily comparable to similar measures that may be presented by other companies.
- 10 -
Selected Mortgage Banking Information & Additional Information
| As of/For the Quarter Ended | ||||||||||||||||||||||||||||||||
| Dec. 31 | Sept. 30 | June 30 | March 31 | Dec. 31 | ||||||||||||||||||||||||||||
| (Dollars in millions, except per share data) | 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||||||||||||||
| Mortgage Banking Income | ||||||||||||||||||||||||||||||||
| Residential mortgage income: | ||||||||||||||||||||||||||||||||
| Residential mortgage production revenue | $ | 25 | $ | 25 | $ | 24 | $ | 17 | $ | 14 | ||||||||||||||||||||||
| Residential mortgage servicing income: | ||||||||||||||||||||||||||||||||
| Residential mortgage servicing income before MSR valuation | 83 | 80 | 72 | 88 | 85 | |||||||||||||||||||||||||||
| Net MSRs valuation | (5) | (7) | (12) | (15) | (13) | |||||||||||||||||||||||||||
| Total residential mortgage servicing income | 78 | 73 | 60 | 73 | 72 | |||||||||||||||||||||||||||
| Total residential mortgage income | 103 | 98 | 84 | 90 | 86 | |||||||||||||||||||||||||||
| Commercial mortgage income: | ||||||||||||||||||||||||||||||||
| Commercial mortgage production revenue | 12 | 6 | 4 | 5 | 5 | |||||||||||||||||||||||||||
| Commercial mortgage servicing income: | ||||||||||||||||||||||||||||||||
| Commercial mortgage servicing income before MSR valuation | 4 | 3 | 7 | 3 | 3 | |||||||||||||||||||||||||||
| Net MSRs valuation | (2) | (1) | 17 | (1) | — | |||||||||||||||||||||||||||
| Total commercial mortgage servicing income | 2 | 2 | 24 | 2 | 3 | |||||||||||||||||||||||||||
| Total commercial mortgage income | 14 | 8 | 28 | 7 | 8 | |||||||||||||||||||||||||||
| Total mortgage banking income | $ | 117 | $ | 106 | $ | 112 | $ | 97 | $ | 94 | ||||||||||||||||||||||
Other Mortgage Banking Information | ||||||||||||||||||||||||||||||||
| Residential mortgage loan originations | $ | 4,745 | $ | 3,726 | $ | 3,881 | $ | 2,412 | $ | 3,027 | ||||||||||||||||||||||
Residential mortgage servicing portfolio:(1) | ||||||||||||||||||||||||||||||||
| Loans serviced for others | 218,475 | 221,143 | 208,270 | 210,635 | 213,399 | |||||||||||||||||||||||||||
| Bank-owned loans serviced | 54,937 | 54,281 | 54,903 | 55,255 | 55,669 | |||||||||||||||||||||||||||
| Total servicing portfolio | 273,412 | 275,424 | 263,173 | 265,890 | 269,068 | |||||||||||||||||||||||||||
| Weighted-average coupon rate on mortgage loans serviced for others | 3.65 | % | 3.62 | % | 3.63 | % | 3.59 | % | 3.56 | % | ||||||||||||||||||||||
| Weighted-average servicing fee on mortgage loans serviced for others | 0.28 | 0.28 | 0.28 | 0.28 | 0.27 | |||||||||||||||||||||||||||
| Additional Information | ||||||||||||||||||||||||||||||||
Brokered deposits(2) | $ | 28,085 | $ | 27,671 | $ | 27,384 | $ | 30,650 | $ | 31,260 | ||||||||||||||||||||||
NQDCP income (expense):(3) | ||||||||||||||||||||||||||||||||
| Interest income | $ | 4 | $ | 1 | $ | — | $ | 1 | $ | 2 | ||||||||||||||||||||||
| Other income | (2) | 12 | 4 | 15 | 17 | |||||||||||||||||||||||||||
| Personnel expense | (2) | (13) | (4) | (16) | (19) | |||||||||||||||||||||||||||
| Total NQDCP income (expense) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
| Common stock prices: | ||||||||||||||||||||||||||||||||
| High | $ | 49.06 | $ | 45.31 | $ | 40.51 | $ | 39.29 | $ | 37.83 | ||||||||||||||||||||||
| Low | 41.08 | 37.85 | 35.09 | 34.23 | 26.57 | |||||||||||||||||||||||||||
| End of period | 43.38 | 42.77 | 38.85 | 38.98 | 36.92 | |||||||||||||||||||||||||||
| Banking offices | 1,928 | 1,930 | 1,930 | 1,930 | 2,001 | |||||||||||||||||||||||||||
| ATMs | 2,901 | 2,928 | 2,942 | 2,947 | 3,031 | |||||||||||||||||||||||||||
FTEs(4) | 37,661 | 37,867 | 41,368 | 49,218 | 50,905 | |||||||||||||||||||||||||||
FTEs - continuing operations(4) | 37,661 | 37,867 | 38,140 | 39,417 | 40,997 | |||||||||||||||||||||||||||
(1)Amounts reported are unpaid principal balance.
(2)Amounts represented in interest checking, money market and savings, and time deposits.
(3)Relates to plans where Truist holds assets in proportion to participant elections.
(4)FTEs represents an average for the quarter.
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Selected Items(1)
| Favorable (Unfavorable) | ||||||||||||||||||||
| (Dollars in millions, except per share data) Description | Pre-Tax | After-Tax at Marginal Rate | Impact to Diluted EPS(2) | |||||||||||||||||
| Selected Items | ||||||||||||||||||||
| Fourth Quarter 2024 | ||||||||||||||||||||
| Restructuring charges | $ | (11) | $ | (9) | $ | (0.01) | ||||||||||||||
| FDIC special assessment (regulatory costs) | 8 | 6 | — | |||||||||||||||||
| Third Quarter 2024 | ||||||||||||||||||||
| Gain on sale of TIH (net income from discontinued operations) | $ | 36 | $ | 16 | $ | 0.01 | ||||||||||||||
| Restructuring charges | (25) | (19) | (0.01) | |||||||||||||||||
| FDIC special assessment (regulatory costs) | 16 | 13 | 0.01 | |||||||||||||||||
| Second Quarter 2024 | ||||||||||||||||||||
| Gain on sale of TIH (net income from discontinued operations) | $ | 6,903 | $ | 4,814 | $ | 3.60 | ||||||||||||||
| Loss on sale of securities (securities gains (losses)) | (6,650) | (5,089) | (3.80) | |||||||||||||||||
| Charitable contribution (other expense) | (150) | (115) | (0.09) | |||||||||||||||||
| Restructuring charges ($33 million in restructuring charges and $63 million in net income from discontinued operations) | (96) | (73) | (0.05) | |||||||||||||||||
| FDIC special assessment (regulatory costs) | (13) | (11) | (0.01) | |||||||||||||||||
Accelerated recognition of TIH equity compensation expense (net income from discontinued operations) | (10) | (8) | (0.01) | |||||||||||||||||
| First Quarter 2024 | ||||||||||||||||||||
Accelerated recognition of TIH equity compensation expense (net income from discontinued operations) | $ | (89) | $ | (68) | $ | (0.05) | ||||||||||||||
| FDIC special assessment (regulatory costs) | (75) | (57) | (0.04) | |||||||||||||||||
| Restructuring charges ($51 million in restructuring charges and $19 million in net income from discontinued operations) | (70) | (53) | (0.04) | |||||||||||||||||
| Fourth Quarter 2023 | ||||||||||||||||||||
| Goodwill impairment | $ | (6,078) | $ | (6,078) | $ | (4.53) | ||||||||||||||
| FDIC special assessment (regulatory costs) | (507) | (387) | (0.29) | |||||||||||||||||
| Restructuring charges ($155 million in restructuring charges and $28 million in net income from discontinued operations) | (183) | (139) | (0.10) | |||||||||||||||||
Discrete tax benefit (provision for income taxes) | — | 204 | (0.15) | |||||||||||||||||
| Third Quarter 2023 | ||||||||||||||||||||
| Restructuring charges ($61 million in restructuring charges and $14 million in net income from discontinued operations) | $ | (75) | $ | (58) | $ | (0.04) | ||||||||||||||
| Second Quarter 2023 | ||||||||||||||||||||
| Restructuring charges ($48 million in restructuring charges and $6 million in net income from discontinued operations) | $ | (54) | $ | (41) | $ | (0.03) | ||||||||||||||
| First Quarter 2023 | ||||||||||||||||||||
| Restructuring charges ($56 million in restructuring charges and $7 million in net income from discontinued operations) | $ | (63) | $ | (48) | $ | (0.04) | ||||||||||||||
(1)Includes certain selected items from the consolidated statements of income. A reconciliation of non-GAAP measures is included in the appendix to Truist’s Fourth Quarter 2024 Earnings Presentation.
(2)Diluted EPS impact for individual items may not foot to difference between GAAP diluted and adjusted EPS due to rounding.
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Fourth Quarter 2024 Earnings Conference Call Bill Rogers – Chairman & CEO Mike Maguire – CFO January 17, 2025 Fourth Quarter 2024 Earnings Conference Call Bill Rog rs - Chairman & CEO Mike Maguire - CFO January 17, 2025
2 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 facts. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “pursue,” “seek,” “continue,” “estimate,” “project,” “outlook,” “forecast,” “potential,” “target,” “objective,” “trend,” “plan,” “goal,” “initiative,” “priorities,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results. In particular, forward looking statements include, but are not limited to, statements we make about: (i) Truist’s ability to execute on strategic initiatives within high growth markets; (ii) Truist’s ability to drive positive operating leverage, (iii) Truist’s ability to invest in talent, technology, and risk infrastructure; (iv) Truist’s ability to maintain expense, credit, and risk discipline; (v) Truist’s ability to return capital to shareholders in future periods; (vi) Truist’s future earnings growth, including net interest income growth, earning asset growth, and estimates of fixed asset repricing; (vii) Truist’s future capital levels; (viii) guidance with respect to financial performance metrics in future periods, including future levels of adjusted revenue, adjusted expenses, and net charge-off ratio; (ix) Truist’s effective tax rate in future periods; (x) scheduled office loan maturities in future years; and (xi) projections of preferred dividends. This presentation, including any information incorporated by reference in this presentation, contains forward-looking statements. We also may make forward-looking statements in other documents that are filed or furnished with the SEC. In addition, we may make forward-looking statements orally or in writing to investors, analysts, members of the media, and others. All forward- looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, and results may differ materially from those set forth in any forward-looking statement. While no list of assumptions, risks, and uncertainties could be complete, some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements include: • evolving political, business, economic, and market conditions at local, regional, national, and international levels; • monetary, fiscal, and trade laws or policies, including tariffs, as a result of actions by governmental agencies, central banks, or supranational authorities; • the legal, regulatory, and supervisory environment, including changes in financial-services legislation, regulation, policies, or government officials or other personnel; • our ability to address heightened scrutiny and expectations from supervisory or other governmental authorities and to timely and credibly remediate related concerns or deficiencies; • judicial, regulatory, and administrative inquiries, examinations, investigations, proceedings, disputes, or rulings that create uncertainty for or are adverse to us or the financial-services industry; • the outcomes of judicial, regulatory, and administrative inquiries, examinations, investigations, proceedings, disputes, or rulings to which we are or may be subject (either directly or indirectly through our ownership interests in joint ventures or other legal entities) and our ability to absorb and address any damages or other remedies that are sought or awarded and any collateral consequences; • evolving accounting standards and policies; • the adequacy of our corporate governance, risk-management framework, compliance programs, and internal controls over financial reporting, including our ability to control lapses or deficiencies in financial reporting, to make appropriate estimates, or to effectively mitigate or manage operational risk; • any instability or breakdown in the financial system, including as a result of the actual or perceived soundness of another financial institution or another participant in the financial system; • disruptions and shifts in investor sentiment or behavior in the securities, capital, or other financial markets, including financial or systemic shocks and volatility or changes in market liquidity, interest or currency rates, or valuations; • our ability to cost-effectively fund our businesses and operations, including by accessing long- and short-term funding and liquidity and by retaining and growing client deposits; • changes in any of our credit ratings; • our ability to manage any unexpected outflows of uninsured deposits and avoid selling investment securities or other assets at an unfavorable time or at a loss; • negative market perceptions of our investment portfolio or its value; • adverse publicity or other reputational harm to us, our service providers, or our senior officers; • business and consumer sentiment, preferences, or behavior, including spending, borrowing, or saving by businesses or households; • our ability to execute on strategic and operational plans, including accelerating growth, improving profitability, and returning capital to shareholders; • changes in our corporate and business strategies, the composition of our assets, or the way in which we fund those assets; • our ability to successfully make and integrate acquisitions and to effect divestitures, including the ability to perform our obligations under the transition services arrangements supporting TIH in a cost-effective and efficient manner; • our ability to develop, maintain, and market our products or services or to absorb unanticipated costs or liabilities associated with those products or services; • our ability to innovate, to anticipate the needs of current or future clients, to successfully compete, to increase or hold market share in changing competitive environments, or to deal with pricing or other competitive pressures; • our ability to maintain secure and functional financial, accounting, technology, data processing, or other operating systems or infrastructure, including those that safeguard personal and other sensitive information; • our ability to appropriately underwrite loans that we originate or purchase and to otherwise manage credit risk; • our ability to satisfactorily and profitably perform loan servicing and similar obligations; • the credit, liquidity, or other financial condition of our clients, counterparties, service providers, or competitors; • our ability to effectively deal with economic, business, or market slowdowns or disruptions; • the efficacy of our methods or models in assessing business strategies or opportunities or in valuing, measuring, estimating, monitoring, or managing positions or risk; • our ability to keep pace with changes in technology that affect us or our clients, counterparties, service providers, or competitors or to maintain rights or interests in associated intellectual property; • our ability to attract, hire, and retain key teammates and to engage in adequate succession planning; • the performance and availability of third-party service providers on whom we rely in delivering products and services to our clients and otherwise in conducting our business and operations; • our ability to detect, prevent, mitigate, and otherwise manage the risk of fraud or misconduct by internal or external parties; our ability to manage and mitigate physical-security and cybersecurity risks, including denial-of-service attacks, hacking, phishing, social-engineering attacks, malware intrusion, data-corruption attempts, system breaches, identity theft, ransomware attacks, environmental conditions, and intentional acts of destruction; • natural or other disasters, calamities, and conflicts, including terrorist events, cyber-warfare, and pandemics; • widespread outages of operational, communication, and other systems; • our ability to maintain appropriate corporate responsibility practices, oversight, and disclosures; • policies and other actions of governments to manage and mitigate climate and related environmental risks, and the effects of climate change or the transition to a lower-carbon economy on our business, operations, and reputation; and • other assumptions, risks, or uncertainties described in the Risk Factors (Item 1A), Management’s Discussion and Analysis of Financial Condition and Results of Operations (Item 7), or the Notes to the Consolidated Financial Statements (Item 8) in our Annual Report on Form 10-K or described in any of the Company’s subsequent quarterly or current reports. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, or Current Report on Form 8-K. Forward-Looking Statements
3 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 of the Corporation's performance and the efficiency of its operations. Management believes these non-GAAP measures are useful to investors because they provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant items in the current period. The Company believes a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Below is a listing of the types of non-GAAP measures used in this presentation: Adjusted Net income Available to Common Shareholders and Adjusted Diluted Earnings Per Share - Adjusted net income available to common shareholders and adjusted diluted earnings per share are non-GAAP in that these measures exclude selected items, net of tax. Truist’s management uses these measures in their analysis of the Corporation’s performance. Truist’s management believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of significant gains and charges. Adjusted Efficiency Ratio, Adjusted Fee Income, and Related Measures - The adjusted efficiency ratio is non-GAAP in that it excludes securities gains and losses, amortization of intangible assets, restructuring charges, and other selected items. Adjusted revenue and adjusted noninterest expense are related measures used to calculate the adjusted efficiency ratio. Additionally, the adjusted fee income ratio is non-GAAP in that it excludes securities gains and losses and other selected items, and is calculated using adjusted revenue and adjusted noninterest income. Adjusted revenue and adjusted noninterest income exclude securities gains and losses and other selected items. Adjusted noninterest expense excludes amortization of intangible assets, restructuring charges, and other selected items. Truist’s management calculated these measures based on the Company’s continuing operations. Truist’s management uses these measures in their analysis of the Corporation’s performance. Truist’s management believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of significant gains and charges. Pre-Provision Net Revenue (PPNR) - Pre-provision net revenue is a non-GAAP measure that adjusts net income determined in accordance with GAAP to exclude the impact of the provision for credit losses and provision for income taxes. Adjusted pre-provision net revenue is a non-GAAP measure that additionally excludes securities gains (losses), restructuring charges, amortization of intangible assets, and other selected items. Truist’s management calculated these measures based on the Company’s continuing operations. Truist’s management believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods. Tangible Common Equity and Related Measures - Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets, net of deferred taxes, and their related amortization and impairment charges. These measures are useful for evaluating the performance of a business consistently, whether acquired or developed internally. Truist’s management uses these measures to assess profitability, returns relative to balance sheet risk, and shareholder value.
4 Purpose Inspire and build better lives and communities Mission Clients Provide distinctive, secure, and successful client experiences through touch and technology. Teammates Create an inclusive and energizing environment that empowers teammates to learn, grow, and have meaningful careers. Stakeholders Optimize long-term value for stakeholders through safe, sound, and ethical practices. Values Trustworthy We serve with integrity. Caring Everyone and every moment matters. One Team Together, we can accomplish anything. Success When our clients win, we all win. Happiness Positive energy changes lives.
5 Solid 4Q24 and 2024 results 4Q24 results GAAP / adjusted Executed top strategic priorities in 2024 – Strong 4Q24 momentum sets the stage for growth in 2025 – Delivered on expense commitments while investing in talent, technology, and risk infrastructure – Completed the sale of TIH and executed a strategic balance sheet repositioning that strengthened our capital position – Delivered strong credit results and maintained risk discipline – Returned $3.8 billion of capital to shareholders through our dividend and share repurchases Focused on accelerating performance in 2025 – 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 Adjusted metrics exclude selected items; see appendix for non-GAAP reconciliations Current quarter regulatory capital information is preliminary $1.2 billion / $1.2 billion Net income available to common shareholders $0.91 / $0.91 Diluted EPS 60.0% / 57.7% Efficiency ratio Stable vs. 3Q24 Average loans +1.5% vs. 3Q24 Average deposits 2024 results GAAP / adjusted $4.5 billion / $5.0 billion Net income available to common shareholders $3.36 / $3.69 Diluted EPS 90.4% / 56.3% Efficiency ratio 0.59% NCO ratio 11.5% CET1 ratio
6 – Positive 2024 net new checking growth, 104K in total, up 8.5K vs. 4Q23 – Consumer loan production increased 5% linked quarter – Increased digital adoption and engagement with active mobile app users over 5 million, up 1% linked quarter – Maintained a strong focus on deepening client relationships, highlighted in consumer primacy at 82%, up 20 bps linked quarter and 60 bps like quarter Business segment update Consumer & Small Business Banking – Grew average deposits 3% vs. 3Q24, including positive growth in noninterest-bearing demand – Increased end-of-period commercial loans by 0.5% vs. 3Q24, driven in part by increased production in middle market lending – Further enhanced wholesale digital experience with unveiling of electronic bill presentment – Continued to strengthen talented team with additional hires across the wholesale platform Wholesale Banking Truist One View web and mobile app
7 4.8 4.8 4.9 5.0 5.1 4Q23 1Q24 2Q24 3Q24 4Q24 27 28 32 34 36 4Q23 1Q24 2Q24 3Q24 4Q24 1 Active users reflect clients that have logged in using the mobile app over the prior 90 days 2 Digital transactions include transfers, Zelle, bill payments, mobile deposits, ACH, and wire transfers 3 Self-service deposits include incoming Zelle, ATM check deposits, and mobile check deposits (including small business online) 4 Deposit balances captured the last day of the week the account is opened Mobile app users1 Digital transactions2 Self-service deposits3 Zelle transactions 76% 77% 78% 79% 80% 4Q23 1Q24 2Q24 3Q24 4Q24 (in millions) (in millions) 75 76 80 83 85 4Q23 1Q24 2Q24 3Q24 4Q24 (in millions) Empowering clients in digital Strategic business value Driving digital growth – Experience enhancements and performance marketing enabled year-over-year increases in digital account production up 13%, and new household acquisition up 31% Acquiring younger generation – 68% year-over-year growth in consumer checking accounts among Gen Z clients, compared to 19% across all generations – supports long-term Premier segment focus Delivering new account quality – Consumer deposit balances for new accounts opened digitally4 grew 80% year-over-year with 40% of balances held by Gen Z and Millennial clients +6% +13% +400 bps +30% Moving money with mobile – Mobile active users averaged 18 log-ins per month, while self-service transaction volumes outpaced teammate-assisted transactions by 4.5X
8 Note: All data points are taxable-equivalent, where applicable Current quarter regulatory capital information is preliminary Non-GAAP and adjusted metrics, including ROTCE, exclude selected items. See appendix for non-GAAP reconciliations. $ in millions, except per share data GAAP / Unadjusted 4Q24 3Q24 4Q23 2024 2023 Revenue $5,111 $5,140 $4,940 $13,490 $20,242 Expense $3,035 $2,927 $9,557 $12,009 $18,678 PPNR $2,076 $2,213 $(4,617) $1,481 $1,564 Net income available to common shareholders $1,216 $1,336 $(5,167) $4,469 $(1,452) Diluted EPS $0.91 $0.99 $(3.87) $3.36 $(1.09) Net interest margin 3.07% 3.12% 2.95% 3.03% 2.98% ROTCE 12.9% 13.8% 15.0% 13.3% 18.9% Efficiency ratio 60.0% 57.5% NM 90.4% 93.3% NCO ratio 0.59% 0.55% 0.57% 0.59% 0.50% CET1 ratio 11.5% 11.6% 10.1% 11.5% 10.1% Change vs. Change vs. Adjusted 4Q24 3Q24 4Q23 2024 2023 Revenue $5,112 (0.5)% 3.5% $20,141 (0.5)% Expense $2,948 4.0% 8.4% $11,330 (0.4)% PPNR $2,164 (6.2)% (2.6)% $8,811 (0.6)% Diluted EPS $0.91 (6.2)% 12.3% $3.69 2.8% Efficiency ratio 57.7% 250 bps 270 bps 56.3% 10 bps Performance highlights Earnings – 4Q24 net income available to common shareholders of $1.2 billion, or $0.91 per share Revenue – Revenue decreased modestly vs. 3Q24 primarily due to lower investment banking & trading income Expenses – Adjusted noninterest expense increased 4.0% vs. 3Q24 primarily due to higher professional fees and outside processing Credit and capital – Asset quality and capital metrics remained relatively stable
9 $313 $309 $306 $303 $303 $190 $188 $187 $183 $182 $123 $121 $120 $120 $121 6.36% 6.38% 6.44% 6.41% 6.12% Commercial LHFI Consumer and card LHFI Loans HFI yield (%) 4Q23 1Q24 2Q24 3Q24 4Q24 Average loans and leases HFI May not foot due to rounding Portfolio assignment based off loan purpose 5-quarter trend ($ in millions) Loan portfolio composition $303B Average loans 50% Commercial and industrial 7% CRE 3% Commercial construction 18% Residential mortgage 3% Home equity 7% Indirect auto 10% Other consumer 2% Credit card Average loan balances stable while end-of-period loans increased 1.1% vs. 3Q24 due to higher C&I and residential mortgage
10 Average deposits $395 $389 $388 $384 $390 $281 $280 $280 $278 $282 $115 $109 $108 $106 $108 1.92% 2.03% 2.09% 2.08% 1.89% Interest-bearing deposits Noninterest-bearing deposits Total deposit cost (%) 4Q23 1Q24 2Q24 3Q24 4Q24 May not foot due to rounding 1 Cumulative beta calculations are based on change in average total deposit or interest-bearing deposit cost divided by the change in average Fed Funds from 4Q21 (up rate) and from 2Q24 (down rate) Deposit mix $390B Average deposits 35% Money market and savings 9% Time deposits 28% Interest checking 28% DDA 51% 53% 54% 14% 40%36% 38% 39% 14% 29% Interest-bearing deposit beta Total deposit beta 4Q23 1Q24 2Q24 3Q24 4Q24 Up rate Down rate 5-quarter cumulative deposit beta trend1 5-quarter trend ($ in millions) Higher linked quarter average deposits driven by noninterest-bearing, interest checking, and money market and savings
11 2024 2025E 2.88% 3.08% 4Q24 avg. balances 2025 runoff $3,577 $3,425 $3,580 $3,657 $3,641 2.95% 2.88% 3.02% 3.12% 3.07% Net interest income TE Net interest margin (%) 4Q23 1Q24 2Q24 3Q24 4Q24 5.38% 6.36% 4Q24 avg. balances 2025 runoff Fwd. starting receive-fixed Pay-fixed < 3yrs. – Receive-fixed swaps designed to protect NII from lower short-end rates over the next few years (designated against commercial loans and long-term debt) – Pay-fixed swaps designed to protect the economic value of the balance sheet and to manage future capital volatility (designated against AFS securities) Net interest income and net interest margin Earning asset growth and fixed rate asset repricing summary ($ in billions) Swap portfolio overview ($ in billions) Low single digit growth Investment securities Fixed rate loans3 1 Investment securities yield excluding the impact of swaps 2 Runoff reflects contractual maturities and expected prepayments of investment securities and fixed rate loans that will be reinvested at higher interest rates based on the current forward curve 3 Excludes fixed rate loan portfolios with shorter maturities $125 $13 11 Avg. yield 2 $135 $42 2 ($15) 12/31/24 $45 $39 Active receive-fixed Total wtd. avg. rate = 3.45% ($15) Total wtd. avg. rate = 3.39% Pay-fixed > 3yrs. End-of-period loans 5-quarter net interest income and net interest margin trend ($ in millions) Earning asset growth and fixed rate asset repricing will drive NII growth in 2025 ~ ~
12 $391 $358 $396 $346 $350 $345 $165 $332 $262 $229 $221 $237 $232 $222 $231 $1,509 $1,401 $1,358 $1,412 $822 $1,203 $873 $915 $936 $907 Noninterest income Quarterly and yearly trend ($ in millions) Wealth Investment banking & trading Service charges Card and payments All other noninterest income Adjusted noninterest income is a non-GAAP measure. See appendix for non-GAAP reconciliation. All other noninterest income includes mortgage banking income, lending related fees, operating lease income, and other income Full year 2024 includes a $6.7 billion securities loss related to the balance sheet repositioning completed in 2Q24 Vs. linked quarter – Noninterest income decreased 0.9% vs. 3Q24, primarily driven by lower investment banking and trading income, partially offset by higher other income Vs. like quarter – Noninterest income increased 7.9% vs. 4Q23, primarily driven by higher investment banking and trading income, partially offset by lower lending related fees Vs. full year – Investment banking and trading income growth of 46% drove a 6.2% year-over-year growth in adjusted fees Securities loss ($6,651) $5,498 $5,838 ~($813) $1,470$1,483 $1,363 ($1) GAAP noninterest income 4Q23 3Q24 4Q24 2023 2024 Investment banking and trading income drove a 6.2% year-over-year growth in adjusted fees Adjusted noninterest income up 6.2% YoY
13 Noninterest expense $54 Adjusted noninterest expense is a non-GAAP measure that excludes FDIC special assessment, restructuring charges, amortization, and other items. See appendix for non-GAAP reconciliation. 4Q23 and full year 2023 includes a $6.1 billion non-cash goodwill impairment charge Quarterly and yearly trend ($ in millions) $2,719 $2,834 $2,948 $6,585 $155 $98 $25 $84 $11 $84 $9,557 $2,927 $3,035 ($16) ($8) $11,374 $11,330 $395 $345 $320 $120 $6,589 $214 Adj. noninterest expense Restructuring charges Amortization Other items $18,678 $12,009 4Q23 3Q24 4Q24 ~ ~ Adjusted noninterest expense down 0.4% YoY 2023 2024 Vs. linked quarter Vs. like quarter Vs. full year – Adjusted noninterest expense increased 4.0% vs. 3Q24, primarily driven by higher professional fees and outside processing expense and equipment expense, partially offset by lower personnel expense – Adjusted noninterest expense increased 8.4% vs. 4Q23, primarily driven by higher personnel and professional fees and outside processing expenses – Adjusted noninterest expense down 0.4% due to cost saving efforts and disciplined expense management Prudent expense management resulted in lower year-over-year adjusted expenses GAAP noninterest expense down 36% YoY
14 0.44% 0.45% 0.46% 0.48% 0.47% 4Q23 1Q24 2Q24 3Q24 4Q24 $572 $500 $451 $448 $471 4Q23 1Q24 2Q24 3Q24 4Q24 NPLs remained stable linked quarter Higher provision driven by an increase in the allowance $453 $490 $442 $418 $453 0.57% 0.64% 0.58% 0.55% 0.59% NCO NCO ratio 4Q23 1Q24 2Q24 3Q24 4Q24 Increase in linked-quarter net charge-offs driven by C&I and seasonally higher indirect auto losses Asset quality $4,798 $4,803 $4,808 $4,842 $4,857 ALLL ALLL ratio ALLL / NCO 4Q23 1Q24 2Q24 3Q24 4Q24 ALLL ratio remained relatively stable linked quarter 2.7x 1.54% 2.4x 1.56% 2.7x 1.57% 1.60% 2.9x Net charge-offs ($ in millions) Nonperforming loans / LHFI ($ in millions) 1.59% 2.7x ALLL ($ in millions) Provision for credit losses ($ in millions) Asset quality metrics remained relatively stable
15 $12.2 $7.3 $6.7 $6.1 $5.5 $4.9 $11.1 $6.7 $6.1 $5.5 $4.9 $4.3 Securities AOCI Pension AOCI 12/31/23 12/31/24 12/31/25 12/31/26 12/31/27 12/31/28 – 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 11.5% due to the sale of TIH and earnings, partially offset by the strategic balance sheet repositioning and capital return to shareholders – Returned $3.8 billion of capital to shareholders in 2024 through our common stock dividend and $1 billion of share repurchases – Future earnings and AOCI accretion create significant capacity for growth and capital return 12/31/23 CET1 ratio 2024 earnings, RWA change, and other Sale of TIH Strategic balance sheet repositioning Dividend payment and share repurchase 12/31/24 CET1 ratio 9.9% 10.1% 1.0% 11.5% (1.0%) 9.6% including AOCI1 7.1% including AOCI1 Capital Current quarter regulatory capital information is preliminary 1 Includes the impact of AOCI related to securities and pension, as well as related changes to deferred tax 2 Other includes CECL phase-in and FDIC special assessment 3 AOCI impact based on current interest rates as of 12/31/24 and internal estimates. Includes AOCI for securities and pension. Excludes cash flow hedges, which are not included in capital ratios under Basel III impacts. 4 Pension AOCI held constant but can change with fluctuations in financial markets 2024 capital walk 2.3% (0.9%) Capital actions and opportunities AOCI burndown3 ($ in billions) Well positioned to grow and return capital to shareholders 4 $1.1 $0.6 $0.6 $0.6 $0.6 $0.6 2
16 13.9% 1Q25 and 2025 outlook All data points are taxable-equivalent, where applicable Adjusted expenses exclude restructuring charges and other selected items Adjusted revenue excludes securities gains (losses) and other selected items See non-GAAP reconciliations in the appendix $ in billions unless otherwise noted 4Q24 actuals 1Q25 outlook (compared to 4Q24) Adjusted revenue (TE): $5.1 Down ~2% Adjusted expenses: $3.0 (includes amortization of intangibles) Down ~3% (includes amortization of intangibles) Full year 2024 actuals Full year 2025 outlook (compared to FY 2024) Adjusted revenue (TE): $20.1 Up 3.0% to 3.5% Adjusted expenses: $11.7 (includes amortization of intangibles) Up ~1.5% (includes amortization of intangibles) Net charge-off ratio: 59 bps ~60 bps 2025 tax rate: 17% effective; 20% FTE
17 Key takeaways 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 2025 strategic priorities
Appendix
A-19 Gateway 36% Non Gateway 64%Multi Tenant 89% Medical 8% Single Tenant 3% 11.7% 13.7% 13.5% 1.05% 0.96% 1.22% 1.05% 1.04% 0.70% 1.30% 1.23% 0.83% 0.46% Criticized & classified ratio NPL ratio NCO ratio 4Q23 1Q24 2Q24 3Q24 4Q24 CRE 9.4% 34% 19% 22% 8% 17% 2025 2026 2027 2028 2029 and beyond Commercial real estate update Total LHFI at 12/31/24 ($306.4B) CRE Office 1.5% CRE Mix NPL% 5.3% LTM NCO ratio 5.8% Loan loss reserves 11.1% WALTV 63% % in Truist Southeast/ Mid-Atlantic footprint 75% All other loans 90.6% CRE information on this slide includes the commercial construction portfolio Gateway markets include: Washington, DC, San Francisco, New York, Chicago, Los Angeles, Boston, and Miami WALTV based on most recent appraisal conducted A-1 Tenant Type Market Type 18.2% CRE represents 9.4% of total loans HFI, including Office at 1.5% 5-quarter total CRE trends Office portfolio primarily includes Multi Tenant, Non Gateway properties in footprint Scheduled Office maturities Office spotlight 20.3% Hotel 7% Industrial 21% Office 14% Multifamily 36% Retail 13% Other 9%
A-2 – Net income of $792 million, compared to $872 million in the prior quarter – Net interest income of $2.6 billion decreased by $65 million, or 2.4%, primarily driven by lower funding credit on deposits – Average loans of $127 billion increased 1.0% primarily driven by higher indirect lending and residential mortgage – Average deposits of $211 billion increased 0.1% primarily driven by higher noninterest bearing checking, time deposits, and money market and savings, partially offset by lower interest checking – Provision for credit losses decreased $9 million, or 2.5%, primarily driven by a decrease in allowance build, partially offset by higher net charge-offs – Noninterest income of $535 million increased $29 million, or 5.7%, primarily driven by higher service charges, other income, and card and payment related fees – Noninterest expense of $1.7 billion increased $78 million, or 4.7%, primarily driven by higher enterprise operations and technology support expenses, and higher equipment expense Consumer and Small Business Banking Income statement ($ MM) 4Q24 vs. 3Q24 vs. 4Q23 Net interest income $2,591 $(65) $(39) Allocated provision for credit losses 344 (9) (15) Noninterest income 535 29 16 Goodwill impairment — — (3,361) Noninterest expense ex. goodwill impairment 1,741 78 (44) Segment net income (loss) $792 $(80) $3,392 Balance sheet ($ B) Average loans(1) $127 $1.3 $(1.7) Average deposits 211 0.2 (4.8) (1) Excludes loans held for sale Commentary reflects linked quarter comparisons Metrics Commentary Represents performance for Branch Banking, Digital Banking, Premier Banking, Small Business Banking, and National Consumer Lending
A-3 Wholesale Banking (1) Excludes loans held for sale Commentary reflects linked quarter comparisons unless otherwise noted Income statement ($ MM) 4Q24 vs. 3Q24 vs. 4Q23 Net interest income $1,636 — $(81) Allocated provision for credit losses 126 30 (86) Noninterest income 1,038 (10) 160 Goodwill impairment — — (2,717) Noninterest expense ex. goodwill impairment 1,299 64 (417) Segment net income (loss) $1,001 ($79) $3,166 Balance sheet ($ B) Average loans(1) $176 $(1.4) $(7.8) Average deposits 145 4.2 1.6 Other key metrics ($ B) Total client assets $342 ($2.8) ($26.1) – Net income of $1.0 billion, compared to $1.1 billion in the prior quarter – Net interest income of $1.6 billion was flat vs. prior quarter – Average loans of $176 billion decreased $1.4 billion, or 0.8%, primarily related to lower CRE and C&I balances – Average deposits of $145 billion increased $4.2 billion, or 3.0%, related to seasonal balance inflows and increased client deposits – Provision for credit losses of $126 million increased $30 million, or 31.3%, primarily driven by an increase in net charge-offs and an allowance build – Noninterest income of $1.0 billion decreased $10 million, or 1.0%, primarily driven by lower investment banking income – Noninterest expense of $1.3 billion increased $64 million, or 5.2%, primarily driven by enterprise operations and technology support expenses – Total client assets decreased $2.8 billion, or 0.8%, primarily due to declines in bond market, partially offset with positive equity market – Year-over-year decline primarily driven by the sale of Sterling Capital, partially offset by the impact of positive markets Metrics Commentary Represents performance for Commercial Banking, Corporate and Investment Banking, CRE, Wholesale Payments, and Wealth
A-4 Preferred dividend 1Q25 2Q25 3Q25 4Q25 Estimated dividends based on projected interest rates and amounts outstanding ($ MM) $104 $60 $104 $59 Estimates assume forward-looking interest rates as of 12/31/24. Actual interest rates could vary significantly causing dividend payments to differ from the estimates shown above.
A-5 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 continuing operations $ 1,229 $ 1,333 $ (3,983) $ 1,027 $ (5,268) $ (394) $ (1,864) Securities (gains) losses 1 — 5,089 — — 5,090 — Goodwill impairment — — — — 6,078 — 6,078 Charitable contribution — — 115 — — 115 — FDIC special assessment (6) (13) 11 57 387 49 387 Discrete tax benefit — — — — (204) — (204) Adjusted net income available to common shareholders from continuing operations(1) $ 1,224 $ 1,320 $ 1,232 $ 1,084 $ 993 $ 4,860 $ 4,397 Net Income available to common shareholders from discontinued operations $ (13) $ 3 $ 4,809 $ 64 $ 101 $ 4,863 $ 412 Accelerated TIH equity compensation expense — — 8 68 — 76 — Gain on sale of TIH — (16) (4,814) — — (4,830) — Adjusted net income available to common shareholders from discontinued operations(1) $ (13) $ (13) $ 3 $ 132 $ 101 $ 109 $ 412 Net income (loss) available to common shareholders $ 1,216 $ 1,336 $ 826 $ 1,091 $ (5,167) $ 4,469 $ (1,452) Adjusted net income available to common shareholders(1) 1,211 1,307 1,235 1,216 1,094 4,969 4,809 Weighted average shares outstanding - diluted (GAAP net income (loss) available to common shareholders)(2) 1,333,701 1,349,129 1,338,149 1,346,904 1,333,703 1,331,087 1,331,963 Weighted average shares outstanding - diluted (adjusted net income available to common shareholders)(2) 1,333,701 1,349,129 1,349,953 1,346,904 1,342,790 1,344,912 1,339,895 Diluted EPS from continuing operations(2) $ 0.92 $ 0.99 $ (2.98) $ 0.76 $ (3.95) $ (0.30) $ (1.40) Diluted EPS from continuing operations - adjusted(1)(2) 0.92 0.98 0.91 0.80 0.74 3.61 3.28 Diluted EPS from discontinued operations(2) (0.01) — 3.60 0.05 0.08 3.66 0.31 Diluted EPS from discontinued operations - adjusted(1)(2) (0.01) (0.01) — 0.10 0.07 0.08 0.31 Diluted EPS(2) 0.91 0.99 0.62 0.81 (3.87) 3.36 (1.09) Diluted EPS - adjusted(1)(2) 0.91 0.97 0.91 0.90 0.81 3.69 3.59 Non-GAAP reconciliations Adjusted Net Income and Diluted EPS $ in millions, except per share data, shares in thousands (1) Adjusted net income available to common shareholders and adjusted diluted earnings per share are non-GAAP in that these measures exclude selected items, net of tax. Truist’s management uses these measures in their analysis of the Corporation’s performance. Truist’s management believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of significant gains and charges. Diluted EPS impact for individual items may not foot to difference between GAAP diluted and adjusted EPS due to rounding. (2) For periods ended with a net loss available to common shareholders from continuing operations, the calculation of GAAP diluted EPS uses the basic weighted average shares outstanding. Adjusted diluted EPS calculations include the impact of outstanding equity-based awards for all periods.
A-6 Non-GAAP reconciliations Efficiency ratio and fee income ratio from continuing operations $ in millions (1) Revenue is defined as net interest income plus noninterest income (2) The adjusted efficiency ratio is non-GAAP in that it excludes securities gains and losses, amortization of intangible assets, restructuring charges, and other selected items. Adjusted revenue and adjusted noninterest expense are related measures used to calculate the adjusted efficiency ratio. Additionally, the adjusted fee income ratio is non-GAAP in that it excludes securities gains and losses and other selected items, and is calculated using adjusted revenue and adjusted noninterest income. Adjusted revenue and adjusted noninterest income exclude securities gains and losses and other selected items. Adjusted noninterest expense excludes amortization of intangible assets, restructuring charges, and other selected items. Truist’s management calculated these measures based on the Company’s continuing operations. Truist’s management uses these measures in their analysis of the Corporation’s performance. Truist’s management believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of significant gains and charges. 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 $ 2,927 $ 3,094 $ 2,953 $ 9,557 $ 12,009 $ 18,678 Restructuring charges, net (11) (25) (33) (51) (155) (120) (320) Gain (loss) on early extinguishment of debt — — — — — — (4) Goodwill impairment — — — — (6,078) — (6,078) Charitable contribution — — (150) — — (150) — FDIC special assessment 8 16 (13) (75) (507) (64) (507) Adjusted noninterest expense including amortization of intangibles 3,032 2,918 2,898 2,827 2,817 11,675 11,769 Amortization of intangibles (84) (84) (89) (88) (98) (345) (395) Efficiency ratio numerator - adjusted noninterest expense excluding amortization of intangibles(2) $ 2,948 $ 2,834 $ 2,809 $ 2,739 $ 2,719 $ 11,330 $ 11,374 Fee income numerator - noninterest income - unadjusted $ 1,470 $ 1,483 $ (5,212) $ 1,446 $ 1,363 $ (813) $ 5,498 Securities (gains) losses, net 1 — 6,650 — — 6,651 — Fee income numerator - adjusted noninterest income(2) $ 1,471 $ 1,483 $ 1,438 $ 1,446 $ 1,363 $ 5,838 $ 5,498 Efficiency ratio and fee income ratio denominator - revenue(1) - unadjusted $ 5,060 $ 5,085 $ (1,685) $ 4,818 $ 4,882 $ 13,278 $ 20,022 Taxable equivalent adjustment 51 55 53 53 58 212 220 Securities (gains) losses 1 — 6,650 — — 6,651 — Efficiency ratio and fee income ratio denominator - adjusted revenue(1)((2) $ 5,112 $ 5,140 $ 5,018 $ 4,871 $ 4,940 $ 20,141 $ 20,242 Efficiency ratio - unadjusted 60.0 % 57.5 % NM 61.3 % NM 90.4 % 93.3 % Efficiency ratio - adjusted(2) 57.7 55.2 56.0 56.2 55.0 56.3 56.2 Fee income ratio - unadjusted 29.0 % 29.2 % NM 30.0 % 27.9 % NM 27.5 % Fee income ratio - adjusted(2) 28.8 28.9 28.7 29.7 27.6 29.0 27.2
A-7 Non-GAAP reconciliations Pre-provision net revenue $ in millions (1) Pre-provision net revenue is a non-GAAP measure that adjusts net income determined in accordance with GAAP to exclude the impact of the provision for credit losses and provision for income taxes. Adjusted pre-provision net revenue is a non-GAAP measure that additionally excludes securities gains (losses), restructuring charges, amortization of intangible assets, and other selected items. Truist’s management calculated these measures based on the Company’s continuing operations. Truist’s management believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods. 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 credit losses 471 448 451 500 572 1,870 2,109 Provision for income taxes 265 271 (1,324) 232 (56) (556) 738 Taxable-equivalent adjustment 51 55 53 53 58 212 220 Pre-provision net revenue(1) $ 2,076 $ 2,213 $ (4,726) $ 1,918 $ (4,617) $ 1,481 $ 1,564 Restructuring charges, net 11 25 33 51 155 120 320 Gain (loss) on early extinguishment of debt — — — — — — 4 Goodwill impairment — — — — 6,078 — 6,078 Amortization of intangibles 84 84 89 88 98 345 395 Charitable contribution — — 150 — — 150 — FDIC special assessment (8) (16) 13 75 507 64 507 Securities (gains) losses 1 — 6,650 — — 6,651 — Pre-provision net revenue - adjusted(1) $ 2,164 $ 2,306 $ 2,209 $ 2,132 $ 2,221 $ 8,811 $ 8,868
A-8 Non-GAAP reconciliations Calculations of tangible common equity and related measures $ in millions, except per share data, shares in thousands (1) Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets, net of deferred taxes, and their related amortization and impairment charges. These measures are useful for evaluating the performance of a business consistently, whether acquired or developed internally. Truist’s management uses these measures to assess profitability, returns relative to balance sheet risk, and shareholder value. These measures are not necessarily comparable to similar measures that may be presented by other companies. 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 $ 57,772 $ 59,023 $ 57,154 $ 52,148 $ 52,428 Less: Intangible assets, net of deferred taxes (including discontinued operations) 18,274 18,350 18,471 23,198 23,306 Tangible common shareholders’ equity(1) $ 39,498 $ 40,673 $ 38,683 $ 28,950 $ 29,122 Outstanding shares at end of period 1,315,936 1,327,521 1,338,223 1,338,096 1,333,743 Common shareholders’ equity per common share $ 43.90 $ 44.46 $ 42.71 $ 38.97 $ 39.31 Tangible common shareholders’ equity per common share(1) 30.01 30.64 28.91 21.64 21.83 Net income available to common shareholders $ 1,216 $ 1,336 $ 826 $ 1,091 $ (5,167) $ 4,469 $ (1,452) Plus: goodwill impairment — — — — 6,078 — 6,078 Plus: amortization of intangibles, net of tax (including discontinued operations) 64 64 68 84 99 280 402 Tangible net income available to common shareholders(1) $ 1,280 $ 1,400 $ 894 $ 1,175 $ 1,010 $ 4,749 $ 5,028 Average common shareholders’ equity $ 57,754 $ 58,667 $ 54,863 $ 52,167 $ 56,061 $ 55,876 $ 56,306 Less: Average intangible assets, net of deferred taxes (including discontinued operations) 18,317 18,399 20,406 23,244 29,377 20,086 29,651 Average tangible common shareholders’ equity(1) $ 39,437 $ 40,268 $ 34,457 $ 28,923 $ 26,684 $ 35,790 $ 26,655 Return on average common shareholders’ equity 8.4 % 9.1 % 6.1 % 8.4 % (36.6) % 8.0 % (2.6) % Return on average tangible common shareholders’ equity(1) 12.9 13.8 10.4 16.3 15.0 13.3 18.9