Key Takeaways From Meetings With TFC Management

Truist Financial is executing a strategy to reach a 16-18% ROTCE by 2027-2029 through NIM expansion, aggressive capital returns, and fee income growth in core business lines. Goldman Sachs maintains a Buy rating with a $58 price target based on confidence in these management targets.

Key Takeaways

• 1.Truist expects to achieve a 15% ROTCE in 2027 and a medium-term target of 16-18% through ROA improvement and capital efficiency.
• 2.Net Interest Income (NII) growth through 2026 is anticipated to be driven by fixed-rate asset repricing and optimization of the deposit mix.
• 3.Management is prioritizing ROTCE-accretive loan growth in commercial and specialty consumer segments while rotating out of lower-return portfolios like indirect auto.

Table of Contents

• Key takeaways from meetings with management
• NIM improvements expected through the year to help drive 2H NII growth
• Looking for return to accretive commercial and consumer growth with a focus on full wallet relationships
• Targeting payments-led commercial deposit growth with a focus on deepening in consumer
• Looking for sustained to accelerating growth in each of its priority fee categories over time to reach 16-18% ROTCE
• Expecting continued positive operating leverage, with expense efficiencies helping to offset investments
• Commercial and consumer credit quality remains solid
• Robust capital return on the way to 10%; CET1 optimization opportunities through RWA density
• Improving quality of revenue growth as well as lower CET1 to drive 16-18% ROTCE
• Revenue and efficiency opportunities from AI
• Key takeaways from meetings with Head of Consumer Lending, Head of Commercial and Corporate Banking, and Chairman and CEO of Truist Securities
• Valuation and risks

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