TRUIST FINANCIAL CORP Q1 FY2025 earnings call

• Truist is purpose-driven, focused on building better lives in communities. - Executing strategic growth initiatives in areas like premier banking, middle-market banking, etc. - Maintaining expense discipline with positive operating leverage expected in 2025. - Continuing investments in talent and technology, e.g., Truist Client Pulse AI tool. - Strong credit and capital position, returning $1.2B to shareholders in Q1 via dividends and buybacks. - Positive momentum in business segments with loan and deposit growth, and digital account openings.

In Consumer and Small Business Banking, average consumer and small business loan balances increased 1.3% linked quarter due to growth in residential mortgage, indirect auto, and service finance. Net new checking accounts grew by over 39,000 in the first quarter, a 40% increase vs Q1 2024. Premier Banking saw nearly $1.8B of new deposit production in the Premier Managed segment in Q4, a 23% y/y increase. In Wholesale, average wholesale loans grew 1% driven by new and existing clients. Wealth launched a new digital client interface, improving client experience and net asset flows. Payments enhanced real-time capabilities, with satisfaction scores rising and payments penetration increasing.

• Full year 2025: Revenue expected to increase 1.5%-2.5% vs 2024, adjusted revenue $20.1B; net interest income up ~3%; adjusted expenses expected to increase ~1%; net charge-offs expected ~60 basis points; effective tax rate ~17%-20%. - Second quarter 2025: Revenue expected up ~1.5% from Q1; net interest income up ~1.5%; non-interest income up 1%-3%; adjusted expenses up 2%-3%; plan to target up to $750M in share buybacks during Q2.

• Market volatility and economic uncertainty impacting investment banking and trading revenue. - Yield curve shifts leading to lower medium-term interest rates affecting net interest income. - Potential credit risks from economic scenarios like tariffs, government spending cuts, and severe economic downturns.

Q: Ken Usdin asked about increased buyback in Q2 and capital position vs loan environment.

A: Bill Rogers said strong capital position allows capitalizing on growth, being opportunistic with buybacks while maintaining strong capital position.

Q: John Pancari inquired about loan growth demand, utilization, and pipeline strength.

A: Bill Rogers mentioned commitments up, utilization slightly up, strong pipelines in consumer and C&I, with good momentum despite uncertainty.

Q: Erika Najarian asked about loan growth guide, curve impact on NII, and reserve baseline.

A: Mike Maguire discussed curve impact on NII, and Brad Bender mentioned reserve baseline in mid to high-single-digits considering model and qualitative overlays.