The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst
: You're anticipating tighter capital and liquidity standards. And Bill, as you think about growing your capital from here, your starting
point is 9.1%. Do you feel like the build is now closer to 9.5% and 10% as you anticipate higher capital and liquidity standards. And
if so, how should we think about your plans for dividend growth? I suspect that buybacks would be lowest priority? And also, is there
some RWA mitigation that you could do in order to perhaps speed up that 20 basis points of organic capital generation.
Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst
: Got it. And my second question is -- sorry to make this another car analogy, but a 24% ROTCE is more like an F1 car rather than a
Corvette right. But the conversation on your AFS portfolio that was brewing over the quarter aside, it feels like some of what's holding
now in your valuation is the puts and takes the specials that keep coming up. And I wonder, Bill, where are you in terms of the
optimization of this franchise because it's pretty clear that the steps that you have been taking and it seems like based on Mike's
laundry list that you are accelerating has everything to do with the optimization of this franchise.
And I wonder how you're weighing sort of pulling forward that optimization. And I mean, look, there's always a continuous
improvement process for every company, right? But is it better to just clean everything up this year and perhaps for the sake of
positive operating leverage to think about cleaner '24 and '25 numbers when it comes to the expenses. Because I do think that it's
very clear what the potential of this franchise is, but there's always adjustments here and there. And so I feel like your investors are
less likely to see that visibility on that expense curve bend that you guys are aiming for.
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APRIL 20, 2023 / 12:00PM, TFC.N - Q1 2023 Truist Financial Corp Earnings Call
Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst
: Yes. Wondering -- just a follow-up, it seems as if you have optimized and accelerated some of the initiatives, and I'm wondering if
you can tell your investors that your goal for '24 is really sort of cleaner quarters on expenses so that they could really see that expense
curve in terms of your GAAP EPS power?
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