Truist Financial Corp at Barclays Global Financial Services Conference Transcript

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

Question: Jason Goldberg - Barclays Estimates - Analyst : Thanks, Bill. I appreciate that. Maybe a couple of follow-up questions, before I do that, maybe just throw up the first ARS question that we ask this for all the companies. But Bill, you talked about this mid-teens ROTCE target in the medium term. Maybe help us define maybe what is medium term? And then is that the next step? Can we go higher from there? Or is that we expect this company to run? I know when the BB&T and SunTrust merger was announced, that merger deck had 22% in it. I know that the world has changed since then.

Question: Jason Goldberg - Barclays Estimates - Analyst : Agreed. So just maybe talk to time frame and then is that step one or how to think about that?

Question: Jason Goldberg - Barclays Estimates - Analyst : And then you referenced it at the onset at last year's conference you unveiled a new expense authorization and just organizational simplification plan. Maybe discuss the outcomes from that what went better, what's been good, what's not so been good? And how are these changes may be positioning you to get to mid-teens relatively. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 2:30PM, TFC.N - Truist Financial Corp at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays Estimates - Analyst : And you're in the market talking to commercial clients pretty regularly. Maybe just talk about what you're hearing, what their sentiment is on the economy, what they're focused on, just how that's impacting loan demand? I know you mentioned commercial muted, but is that the case? And what gets that going?

Question: Jason Goldberg - Barclays Estimates - Analyst : And then maybe shifting gears to the consumer side. You have some unique lending businesses there. Maybe talk how those businesses are performing your appetite for growth, overall consumer health. We did have a company that does retail auto lending, credit was going worse than expected this quarter. Just maybe what are you seeing.

Question: Jason Goldberg - Barclays Estimates - Analyst : Helpful. Maybe pull up for a second. You didn't talk about any third quarter full year guidance. You mentioned flat expenses, but any other tweaks you want to highlight? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 2:30PM, TFC.N - Truist Financial Corp at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays Estimates - Analyst : Great. Why don't we bring up the next ARS question because clearly, the rate environment is shifting before our eyes. And maybe just talk about your expectations for deposit balances and betas, if that's going to cut next week, how you see that playing out?

Question: Jason Goldberg - Barclays Estimates - Analyst : Helpful. And maybe on the fee income side, obviously, with the sale of TIH, the C&I contribution has declined. You certainly had some success in investment banking. Just maybe talk to issues there around, I guess, investment banking and capital markets, what you're doing there? And just maybe more broadly?

Question: Jason Goldberg - Barclays Estimates - Analyst : Helpful. Maybe talk about flat expenses for this year, although it sounds like positive operating leverage will be tough. So that's certainly something you talked about as being important to you. I guess maybe looking out to 2025, I'm sure you're starting to go through the budgeting process. Is that something you think you can accomplish? And then any other cost reduction opportunities possible? Or do you really need to see revenues come back?

Question: Jason Goldberg - Barclays Estimates - Analyst : Got it. Maybe credit quality, you touched on consumer earlier, but maybe focus on commercial, maybe all, commercial real estate office, multifamily, obviously, in the news and we've seen idiosyncratic issues with others pop up around C&I. Just what are you seeing there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 2:30PM, TFC.N - Truist Financial Corp at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays Estimates - Analyst : Great. Next ARS question. We have five minutes left. I have three questions on capital, so a minute each, and then I'll give you two minutes to wrap up. So first on capital. What do you think -- I mean how much capital do you think you need to raise the company? The graph you showed earlier at 11.6%, top quartile post insurance transaction, where should that number be over time when you think about that mid-teens ROTCE?

Question: Jason Goldberg - Barclays Estimates - Analyst : Understood. And then you said $500 million of share repurchase 3Q, 4Q, but you have a six -- I'm sorry, a $5 billion authorization. As we move through 2025, how do you think about maybe a gradual step up or maybe the puts and takes there?

Question: Jason Goldberg - Barclays Estimates - Analyst : And I guess another use of capital could be another security portfolio restructuring. I guess, how do you think about the sales of securities compared to other capital you are deploying.

Question: Jason Goldberg - Barclays Estimates - Analyst : Helpful. And then you've made a lot of changes within the company from last year, some you talked about when you were here a year ago, obviously, the sale of the insurance company, I guess maybe how should investors be thinking about the Truist story today?