Truist Financial Corporation (TFC) Q1 2025 Earnings Conference Call April 17, 2025 08:00 AM ET Company Participants Call Operator - Conference Call OperatorModerator - Conference Call ModeratorBill Rogers - Chairman and CEOMike McGuire - CFOBrad Mender - Chief Risk OfficerModerator - Conference Call ModeratorUnidentified Participant - Technical Check Conference Call Participants Ken Oosten - Analyst, O'Thomas ResearchJohn Pencary / Matt O'Connor - Analyst (Evercore / Deutsche Bank)Erica Najarian - Analyst, ...

Financial Performance - Interest income for Q1 2025 was $6,036 million, a decrease of 3.1% from $6,230 million in Q4 2024[4] - Net interest income after provision for credit losses was $3,049 million, down from $3,119 million in the previous quarter, reflecting a decline of 2.2%[4] - Noninterest income for the quarter was $1,392 million, a decrease of 5.3% compared to $1,470 million in Q4 2024[4] - Net income available to common shareholders for Q1 2025 was $1,157 million, a decrease of 4.8% from $1,216 million in Q4 2024[4] - Earnings per share (diluted) from continuing operations was $0.87, down from $0.92 in the previous quarter, representing a decline of 5.4%[4] - The company reported an income before income taxes of $1,535 million for Q1 2025, compared to $1,554 million in Q4 2024, reflecting a decrease of 1.2%[6] - The net income from continuing operations for the quarter was $1,261 million, compared to $1,289 million in the previous quarter[15] Asset and Liability Management - Total assets at the end of Q1 2025 were $535,899 million, an increase from $531,176 million at the end of Q4 2024[4] - Total assets increased to $535.899 billion as of March 31, 2025, up from $531.176 billion at December 31, 2024, representing a growth of 0.5%[7] - Total liabilities stood at $471.264 billion, a slight increase from $467.497 billion, indicating a growth of 0.4%[7] - Shareholders' equity increased to $64.635 billion, compared to $63.679 billion at the end of the previous quarter, reflecting a growth of 1.5%[7] - The allowance for loan and lease losses remained stable at $4.870 billion, slightly up from $4.857 billion in the previous quarter[7] Income and Expense Analysis - Total noninterest expense for Q1 2025 was $2,906 million, a decrease of 4.3% compared to $3,035 million in Q4 2024[6] - Total noninterest expense decreased to $2,906 million in Q1 2025 from $3,035 million in Q4 2024, indicating improved cost management[15] Credit Quality and Losses - Provision for credit losses was $458 million in Q1 2025, slightly down from $471 million in Q4 2024[6] - Nonperforming assets rose to $1.618 billion, representing 0.30% of total assets[11] - Nonaccrual loans and leases held for investment totaled $1.488 billion, up from $1.429 billion[11] - The net charge-offs as a percentage of average loans and leases stood at 0.60%, indicating a slight increase[11] - Net charge-offs for the quarter were $454 million, compared to $453 million in the previous quarter, reflecting a slight increase[13] Capital and Ratios - Common equity tier 1 ratio was 11.3%, slightly down from 11.5% in the previous quarter[4] - Total risk-based capital ratio is 14.7% for the quarter ended March 31, 2025, down from 15.0% in the previous quarter[17] - Tangible common equity per common share increased to $30.95 as of March 31, 2025, compared to $30.01 at the end of December 2024[17] Deposits and Loans - Total deposits rose to $403.736 billion, compared to $390.524 billion at the end of the previous quarter, marking an increase of 3.1%[7] - Total loans and leases held for investment reached $308.638 billion, a slight increase from $306.383 billion in the previous quarter, reflecting a growth of 0.4%[7] - Interest on deposits for Q1 2025 was $1,736 million, a decrease of 6.4% from $1,855 million in Q4 2024[6] Mortgage Banking - Total mortgage banking income for the first quarter of 2025 is $108 million, a decrease of 7.7% from $117 million in the fourth quarter of 2024[19] - Residential mortgage loan originations for the first quarter of 2025 are $3,626 million, down 23.6% from $4,745 million in the previous quarter[19] - The total servicing portfolio as of March 31, 2025, is $271,268 million, a decrease from $273,412 million at the end of the previous quarter[19] Operational Efficiency - The efficiency ratio (adjusted) for Q1 2025 was 56.4%, an improvement from 57.7% in the previous quarter[4] - The liquidity coverage ratio improved to 111% in Q1 2025, compared to 109% in Q4 2024[4]

CHARLOTTE, N.C., April 17, 2025 /PRNewswire/ -- Truist Financial Corporation (NYSE: TFC) reported its first quarter 2025 results today. Investors can access the live first quarter 2025 earnings call at 8 a.m. ET today by webcast or dial-in as follows: Webcast: app.webinar.net/KNd8VGQjew3 Dial-in: 1-877-883-0383, passcode 0999346The earnings release, investor presentation, including an appendix reconciling non-GAAP disclosures, and Truist's First Quarter 2025 Quarterly Performance Summary, which contains det ...

Core Viewpoint - Truist Financial (TFC) is set to announce its first-quarter 2025 results on April 17, with expectations of a mixed performance due to subdued loan demand and varying trends in different loan categories [1][2]. Lending and Loan Demand - Demand for commercial and industrial (C&I) loans, which make up about 50% of TFC's total loans, was subdued in the first two months of the quarter, while consumer loan demand, accounting for nearly 40%, showed improvement [2]. - The average loan balance for TFC is projected to be $309.3 billion, reflecting a slight decline from the previous year [3]. Interest Income and Margin - The consensus estimate for net interest income (NII) is $3.56 billion, indicating a 4% year-over-year increase, while the company's estimate is slightly higher at $3.57 billion [4]. - Management anticipates a 2% sequential decline in NII due to fewer days in the quarter and lower average deposit balances, although excluding this impact, NII is expected to remain stable [5]. Non-Interest Income - The consensus estimate for service charges on deposits is $225.2 million, unchanged from the prior year, while card and payment-related fees are estimated at $223.3 million, also flat year-over-year [6]. - Residential mortgage income is expected to rise to $107.3 million, a 19.2% increase, driven by stable mortgage rates [7]. - Investment banking and trading income is projected to fall by 17.1% to $267.9 million due to market volatility and tariff concerns [8]. - Lending-related fees are expected to decline by 5.4% to $90.8 million, reflecting the subdued lending environment [9]. - Wealth management income is anticipated to decrease by 5% to $338.3 million due to poor equity market performance [10]. - Overall, total non-interest income is estimated at $1.4 billion, a 2.9% drop from the previous year [11]. Expenses and Asset Quality - Total adjusted non-interest expenses are projected to be $2.86 billion, a 4.4% increase from the prior year, driven by technology investments and inflation [12]. - The provision for credit losses is estimated at $470.1 million, a 6% year-over-year decline, while total non-accrual loans and leases are expected to rise by 4% to $1.47 billion [14]. Earnings Expectations - The consensus estimate for TFC's earnings is 86 cents per share, reflecting a 4.4% decline from the previous year, with total sales projected at $4.92 billion, a 2.2% increase [16].

Company Overview - Truist Financial Corporation (TFC) shares increased by 8.8% to close at $37.99, following a broader market rally driven by President Trump's announcement of a 90-day tariff pause for non-retaliating nations [1] - The stock had previously experienced a 12.5% loss over the past four weeks, indicating a significant recovery [1] Earnings Expectations - Truist Financial is expected to report quarterly earnings of $0.86 per share, reflecting a year-over-year decline of 4.4% [2] - Revenue projections stand at $4.92 billion, which is a 2.2% increase compared to the same quarter last year [2] Earnings Estimate Revisions - The consensus EPS estimate for Truist Financial has been revised down by 1.6% over the last 30 days [3] - A negative trend in earnings estimate revisions typically does not lead to price appreciation, suggesting caution for future stock performance [3] Industry Context - Truist Financial is part of the Zacks Banks - Major Regional industry, which includes State Street Corporation (STT) [3] - State Street's stock rose by 9.3% to $82.32, but it has seen a return of -12.1% over the past month [3] - State Street's EPS estimate for the upcoming report has decreased by 1% to $1.99, representing a 17.8% increase from the previous year [4]

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Truist Financial Corporation (TFC) despite an increase in revenues when it reports its results for the quarter ended March 2025 [1][3]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $0.86 per share, reflecting a -4.4% change year-over-year, while revenues are projected to be $4.92 billion, up 2.2% from the previous year [3]. - The earnings report is scheduled for release on April 17, 2025, and the stock may react positively if the results exceed expectations, whereas a miss could lead to a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.62% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Truist Financial is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.15%, suggesting a bullish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Truist Financial has a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Truist Financial exceeded the expected earnings of $0.87 per share by delivering $0.91, resulting in a surprise of +4.60% [12]. - The company has successfully beaten consensus EPS estimates in the last four quarters [13]. Conclusion - While Truist Financial is positioned as a compelling earnings-beat candidate, other factors may also influence stock performance beyond just the earnings results [14][16].

Core Insights - Truist Financial Corporation (TFC) has a strong track record of beating earnings estimates, particularly in the last two quarters with an average surprise of 6.79% [1][5] - The most recent earnings report showed earnings of $0.91 per share, exceeding the Zacks Consensus Estimate of $0.87 per share by 4.60% [2] - The previous quarter also saw a positive surprise, with actual earnings of $0.97 per share against an expected $0.89 per share, resulting in an 8.99% surprise [2] Earnings Estimates - There has been a favorable change in earnings estimates for Truist Financial, with a positive Earnings ESP (Expected Surprise Prediction) indicating potential for continued earnings beats [5][8] - The current Earnings ESP for Truist Financial is +0.15%, suggesting analysts are optimistic about the company's near-term earnings potential [8] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6] Earnings Release Information - The next earnings report for Truist Financial is anticipated to be released on April 17, 2025 [8]

Core Insights - Sheffield Financial and Polaris Inc. have renewed their retail financing partnership, which began in 2009, emphasizing their commitment to customer-friendly financing options [1][2] - The partnership aims to enhance the retail experience for Polaris dealers and customers across the nation [1][2] Company Overview - Sheffield Financial, a division of Truist Bank, specializes in providing simple and fast installment financing across various industries, including powersports [3] - Founded 32 years ago, Sheffield Financial serves hundreds of leading brands and has financed millions of customers in the USA [3] - Truist Financial Corporation, the parent company of Sheffield, is a major financial services provider with total assets of $531 billion as of December 31, 2024 [4] Partnership Benefits - Polaris dealers gain access to Sheffield Financial's nationwide installment financing, digital tools, and services [2][6] - The partnership offers flexible financing options for both new and pre-owned Polaris products, facilitating affordable monthly payments for customers [6] - Sheffield's online dealer portal provides digital tools like prequalification technology, enhancing the buying experience for customers [6] Dealer Support - Sheffield Financial provides dedicated support to Polaris dealers through powersports-specialist underwriters available seven days a week [6] - The financing process is designed for speed and simplicity, allowing dealers to efficiently close sales with fast approvals and quick funding [6]

Core Insights - Truist Foundation announced six finalists for the Inspire Awards, aimed at supporting nonprofit organizations that provide innovative workforce development solutions for mid- and late-career adults [1][4] - The initiative addresses the lack of confidence among U.S. employees regarding their skills, with only 47% feeling equipped for their current roles, thereby enhancing workforce readiness and economic resilience [1][4] Group 1: Inspire Awards Program - The Inspire Awards finalists will participate in a six-month development program in collaboration with MIT Solve, which includes in-person training, one-on-one coaching, and skill-building workshops [2][3] - The program aims to enhance and scale the finalists' solutions to better support career transitions and financial security for adults [3][4] Group 2: Finalists and Their Solutions - The finalists include organizations with diverse solutions such as: - Lifecycle Building Center's Breaking Barriers Through Deconstruction, which trains adults in low-income communities in building material recovery [5] - FreeWorld's tech-enabled solution for reskilling formerly incarcerated citizens for the trucking industry [5] - ReCastED's mentorship-driven model for tradespeople transitioning to teaching positions [5] - Integrity Transformations Community Development Corporation's digital platform for managing basic needs insecurity [5] - Encore Employment Enterprise Inc.'s call-center training program for older adults [5] - electrical training ALLIANCE's pre-apprenticeship program for military personnel in the electrical trade [5] Group 3: Grant Funding Details - The total grant funding for the Inspire Awards will be distributed as follows: - First Place Grant Award: $250,000 - Second Place Grant Award: $150,000 - Runners-up Grant Awards: $25,000 each - Audience Favorite Grant Award: Additional $75,000 [6] Group 4: Event and Participation - The Inspire Awards ceremony will take place on November 12, 2025, where finalists will present their solutions to a live and virtual audience [5][7] - Registration for the live event is expected to open in late summer, allowing virtual attendees to vote for the audience favorite [7] Group 5: About Truist Foundation - Truist Foundation focuses on inspiring and building better lives and communities through strategic investments in nonprofit organizations, particularly in career pathways to economic mobility and support for small businesses [8]

Company Overview - Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities [4] - As a leading U.S. commercial bank, Truist has a market share in many high-growth markets across the country [4] - Truist offers a wide range of products and services, including consumer and small business banking, commercial banking, corporate and investment banking, wealth management, payments, and specialized lending businesses [4] - The company is headquartered in Charlotte, North Carolina, and is a top 10 commercial bank with total assets of $531 billion as of December 31, 2024 [4] Leadership Appointment - Adamson will lead strategic execution for all areas of small business banking, including deposits, lending, and payments solutions, serving over 1.2 million small business clients [1] - Adamson has more than 20 years of experience focusing on small and midsize enterprises, middle market, and large corporate sector clients [2] - Prior to joining Truist, Adamson served as managing director and U.S. head of business banking at HSBC, where she was part of the executive committee for the U.S. commercial bank [2] Client Services - Truist Consumer and Small Business Banking serves more than 14 million retail, premier, and small business clients with various financial solutions [3] - The services include deposits, lending, payments, and investment solutions through digital banking, virtual service centers, and over 1,900 community banking branches across the Southeast, Mid-Atlantic, and Texas [3]