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
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APRIL 20, 2023 / 12:00PM, TFC.N - Q1 2023 Truist Financial Corp Earnings Call
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.
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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