Truist Financial Corp at Bank of America Financial Services Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Ebrahim Poonawala - BofA Securities - Analyst : <_ALACRA_META_ABSTRACT>Maybe I think just to kick things off, you joined Truist about a year ago. Give us your sense in terms of, one, what from the outside looking in interest created your interest in the job and joining Truist. And what's the experience been like what surprised positively versus negatively? Kristin Lesher - Truist Financial Corp - Senior Executive Vice President, Chief Wholesale Banking Officer Okay. Yes, happy to. Yes. So it's been almost exactly a year, I think, a year yesterday. And I was really attracted to the opportunity at Truist for a couple of different reasons. One, was just the installed like the growth opportunity that I saw in the franchise. I felt like there was a lot of untapped potential to be unlocked there because we have an exceptional investment banking franchise. We have a great commercial banking franchise and putting those things together and having them work together would create a lot of great opportunities. And that has been the case. I think I'll talk more about what I see now in terms of the growth opportunity, but it is absolutely there right in front of us. In terms of surprises upside and the downside, I was teasing with Mike and Brad this morning that a great surprise to the upside when I arrived, we became exceptionally well capitalized with the sale of TIH as well as some of the bond repositioning work that we did. So we found ourselves in a fantastic capital position and ready to go after that growth opportunity that we saw. I think that for me, I see a few outsized growth opportunities for us. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 12, 2025 / 4:20PM, TFC.N - Truist Financial Corp at Bank of America Financial Services Conference So one, we've got like this a huge installed base of customers that were a little underpenetrated with in some key areas, especially in some of our key fee businesses. So as an example, in wholesale payments, which is one that we've talked a lot about, we've got less than 50% penetration with the clients that are already with us and have been with us for many, many years. So just putting more focus on that and making sure that the teams are going after it represents a big opportunity for us. Similarly, we've got a great wealth business that -- only 2% of Truist clients are actually also wealth clients. And so what I like about it is that the opportunity is there to grow in every single business but we've also got that opportunity with clients who already know us and love us in the markets that we're in.

Question: Ebrahim Poonawala - BofA Securities - Analyst : Got it. And how much of that in order to execute on that, it feels like there's a technology component to it, there's a people component to it and there's a balance sheet component to it. Just give us a sense of when you think through those three if there are a lot of external talent or hiring that kind of aligns with your vision that you need to bring to the bank? And then is the technology in the right place? Is there more to go?

Question: Ebrahim Poonawala - BofA Securities - Analyst : Got it. I guess maybe just pivoting to the macro environment. On the one hand, there's a lot of optimism around the new administration, what that means for tax policy, et cetera, but there are some concerns around immigration tariffs. Give us a mark-to-market in terms of customer sentiment -- and is the policy backdrop good enough where they start pulling the trigger on CapEx, deal activity, et cetera.

Question: Ebrahim Poonawala - BofA Securities - Analyst : And how much time means we had inflation data today, the yields are higher. How much time do you? And do you think your clients spend on thinking about where interest rates are? Do they need rates to be much lower in terms of having a greater appetite for investments or are we in a good place.

Question: Ebrahim Poonawala - BofA Securities - Analyst : Got it. Just moving back to the business and back to the bank. I think the two things that come up often are: one, Truist went through a big merger, doubled it's size what that creates is an opportunity to go after larger clients that the legacy firms may have not been able to pursue. So one, is that the right way to think about where the growth opportunities might be? And second, in that world, how do you think about just the competitive landscape? Who do you view as your biggest competitors? And what's the U.S. feel like why Truist to were the other two or three players?

Question: Ebrahim Poonawala - BofA Securities - Analyst : Got it. I'm sure it's a much more complicated answer. Maybe I'm oversimplifying it. But when you are going after this, when you are winning deals, is it service? Is it geographic exposure? Like what's driving that shift where clients picking Truist over the other institutions.

Question: Ebrahim Poonawala - BofA Securities - Analyst : And on those, you mentioned the industry verticals, a few times. Where are you in the process of having those in place? Is there a lot more in terms of hiring to be done?

Question: Ebrahim Poonawala - BofA Securities - Analyst : Maybe just let's talk about the payment space, I mean in my space seat, it feels like everyone is focused on payments. So I think one, just remind us in terms of when you say payments, what is it that you're going after? What are the opportunities that look like.

Question: Ebrahim Poonawala - BofA Securities - Analyst : And when we think about the success in the payments business, should we measure that primarily driven by just getting low-cost sticky relationship deposits.

Question: Ebrahim Poonawala - BofA Securities - Analyst : I guess while on deposits, just talk to us in terms of the environment for deposits. Do you think we are at a stage where you start seeing outside of seasonality, some level of consistent deposit growth and what's the competitive landscape look like?

Question: Ebrahim Poonawala - BofA Securities - Analyst : Got it. And like on the deposits and deposit pricing, the Fed cuts have helped. So we've seen down deposit beta, the Fed might be on the sideline for the rest of the year. So one, how much more do you think you -- there is to go on the commercial side in terms of flexing deposit costs lower and what drives a tick back up in competition? Is it clients no longer expecting rate cuts? Or are you seeing competitors begin to already lean then on the commercial side?

Question: Ebrahim Poonawala - BofA Securities - Analyst : Got it. I guess maybe going back to lending, and you mentioned, I don't think anyone expected things to start too strongly at the start of the year. But when you think about loan growth what are the two or three are there two or three markets or two or three industry verticals that you're particularly focused on or optimistic about that would be driving growth there?

Question: Ebrahim Poonawala - BofA Securities - Analyst : And do you think commercial real estate, let's say, ex office can pick up in this rate backdrop? Like I've heard from others where higher rates make it hard to pencil in new CRE deals. What's the conversation been? Like how do you think about it?

Question: Ebrahim Poonawala - BofA Securities - Analyst : Makes sense. During the fourth quarter call, I think Bill talked about I don't overstate the importance of this, but New Jersey, Pennsylvania, Texas, as markets where there's meaningful growths on way on I'm assuming you share that view, just talk first in terms of that growth runway. And are there other markets beyond these three where you're seeing the same? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 12, 2025 / 4:20PM, TFC.N - Truist Financial Corp at Bank of America Financial Services Conference

Question: Ebrahim Poonawala - BofA Securities - Analyst : Sure. I guess the other thing that falls under your purview, you mentioned earlier, the wealth opportunity. One, I guess, describe for us what that opportunity looks like. And again, are the pieces in place for you Truist to be able to go after and pursue these and monetize it?

Question: Ebrahim Poonawala - BofA Securities - Analyst : It sounds like there's a lot of the growth runway, at least in the next few years should be mining the existing customer base, wealth payments, et cetera. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 12, 2025 / 4:20PM, TFC.N - Truist Financial Corp at Bank of America Financial Services Conference

Question: Ebrahim Poonawala - BofA Securities - Analyst : Yes. I would love to hear your perspective, there's an active debate around private credit, direct lender, steeling coming down in two categories that were historically bread and butter for the banking sector. One, give us your perspective of like how you private credit these players as competitors, partners, et cetera? And are you actually seeing them on a day-to-day basis competing on lending opportunities?

Question: Ebrahim Poonawala - BofA Securities - Analyst : Got it. I guess it's less talked about right now. But from a credit quality perspective, we've had a pretty decent run for the U.S. economy, the outlook is good, but do elevated rates, maybe some slowing spending? Are there areas of stress that you're watching for where you're seeing even within your portfolio?

Question: Ebrahim Poonawala - BofA Securities - Analyst : Just talk to us. So you've talked about hiring of people. I think that's going to remain a focus. One, I mean I love your perspective on, I think there's a narrative around over the last few years. You've seen competitors who want to get into the Southeast, hiring calendar from the bank. Just kind of rightsize that for us in terms of your perspective on are you losing a lot of talent that you would like to keep at the bank because competition is intense. So one, whether that narrative is true or debunk that for us. And from a hiring standpoint, your success either from peers or larger banks.

Question: Ebrahim Poonawala - BofA Securities - Analyst : It's good to hear. I guess, commercial banking wealth generally are people's first people business. And I think you've talked about that. Talk to us around from a technology infrastructure standpoint. I mean you've come from a larger bank. Like when you look at the technology stack at Truist, what's already there, what needs to be there for you to be able to maximize the opportunity you have?

Question: Ebrahim Poonawala - BofA Securities - Analyst : Any areas that particularly stand out on the efficiency side as Bill and team have done a lot in terms of improving the over the last few years. I'm just wondering, is there still some low-hanging fruit where you think that could move the needle?

Question: Ebrahim Poonawala - BofA Securities - Analyst : I guess maybe couple of last ones. One, when we think about just the evolution of the franchises, like paint for us a picture in terms of what this looks like two to three years from now, where are the big differences that where we should be looking for in terms of where things stand today and where they could be?

Question: Ebrahim Poonawala - BofA Securities - Analyst : Got it. And you think in terms of the -- doing that, how long does this process take? It never ends, I assume. But in terms of from here

Question: Ebrahim Poonawala - BofA Securities - Analyst : And one last, you mentioned the ROTCE mid-teens or 15%-plus. When you look at your business, I'm assuming you believe it can be accretive to that firm by the ROTCE. Just talk to us in terms of the opportunity there in terms of being higher? Like is there a governor in terms of how -- like could it be a high-teens ROTCE just what the headwinds might be to getting to an even more profitable ton of business for you?

Question: Ebrahim Poonawala - BofA Securities - Analyst : Awesome. On that note, Kristin, thank you so much.