Truist Financial Corp at Goldman Sachs U.S. Financial Services Conference Transcript

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

Question: Ryan Nash - Goldman Sachs - Analyst : We're going to have a fireside chat today. So Bill, maybe to kick it off, it feels like '25 was a year where Truist pivoted back to playing offense. As you think about next year, what do you see as the key drivers behind that business momentum? And how is it shaping your outlook as you head into next year?

Question: Ryan Nash - Goldman Sachs - Analyst : And absolutely. So at third quarter earnings, you delivered more clarity around your mid-teens ROTCE, committing to 15% by '27. Maybe just walk us through how you're going to get to 15% and your degree of confidence? And then maybe just talk about what do you see as the major risks to getting there?

Question: Ryan Nash - Goldman Sachs - Analyst : I mean, tons of things for us to get into within those and which we will shortly. I guess maybe just bring it back to the near term a little bit. So Bill, you gave guidance on the fourth quarter. I think it was revenues up 1% to 2%, NII up 2%, driven by loan growth, lower deposits, stable fees. A handful of other things, stable expenses. Maybe just talk about how the quarter is progressing and share any updates to your -- what you're seeing in the fourth quarter.

Question: Ryan Nash - Goldman Sachs - Analyst : Got you. Okay. So maybe let's dig into loan growth a little bit. So '25 has been a year where you had very strong loan growth at Truist. Maybe just talk about what is driving this? And more importantly, how are you feeling about your ability to continue this momentum into next year?

Question: Ryan Nash - Goldman Sachs - Analyst : Maybe just to dig into that a little further. So you talked about wholesale taking on the bigger piece. Maybe just talk about what gives you the confidence in that? What are you hearing from clients about overall sentiment? And what do you think that means for the wholesale lending environment into '26?

Question: Ryan Nash - Goldman Sachs - Analyst : That makes a ton of sense. And you touched on the consumer was obviously a big driver this year. You obviously have some interesting specialty businesses, LightStream, Sheffield, Service Finance. And like I said, those have experienced strong growth. Obviously, there's been some concerns around the consumer. Maybe just talk about the health of the consumer across your portfolio. And what is your lending strategy in consumer as you look ahead? And where are the pockets of growth that you still feel good about into next year?

Question: Ryan Nash - Goldman Sachs - Analyst : So let's turn to talk about deposits. Obviously, it was a big focus at dinner last night. Obviously, things have been competitive in that market. Maybe just talk about your strategy to grow both consumer and commercial deposits into next year. And maybe just talk about the opportunities that you see in the Premier Banking segment. And then touch upon treasury management and how this is contributing to commercial balances. And obviously, a lot of things in there, but curious to see where you think we are in terms of the J curve relative to where we were on lending coming into this year.

Question: Ryan Nash - Goldman Sachs - Analyst : And then you obviously talked a couple of times about it being competitive. I think your repricing of deposits has been a little bit slower than peers. You've been in the high 30s. Peers have been in the mid- to high 40s. And I know that you are expecting it to improve over time. Can you maybe just talk about what has driven that? And more importantly, what are your expectations to drive repricing over the rest of the cycle? And what is going to change the underperformance to be back in line with peers?

Question: Ryan Nash - Goldman Sachs - Analyst : So just to sort of rehash, you expect the beta is going to improve over time and client deposit growth should look more like loan growth that you've experienced this year, but yet we should then see overall deposit growth won't be as robust just because you'll be bringing down wholesale deposits. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 2:20PM, TFC.N - Truist Financial Corp at Goldman Sachs U.S. Financial Services Conference

Question: Ryan Nash - Goldman Sachs - Analyst : But the mix will be improving in some of the --

Question: Ryan Nash - Goldman Sachs - Analyst : Got it. No, that sounds great. Maybe just thinking about revenue growth into 2026. So I think on the call, you said more than double this year or which was 2%, so it should be greater than 4%. And I think you alluded to maybe fees growing a little bit faster. High level, can you maybe just talk about your confidence in this? And what are some of the key variables for achieving this over time?

Question: Ryan Nash - Goldman Sachs - Analyst : So Bill, maybe to dig into some of the pieces. I think expectations, as we said, were for NII to grow 2% in the fourth quarter, you talked about things being on track. I think you guys have alluded to NII being somewhat similar to the recent past. Maybe just talk a little bit about your expectations for NII. What are some of the key considerations that could affect the trajectory into next year? And how are you managing the sensitivity given the evolving rate environment?

Question: Ryan Nash - Goldman Sachs - Analyst : So maybe to dig into some of the components of revenue growth. Let's talk a little bit about your investment banking and trading business. Obviously, capital markets and M&A activity were slow in the first half. You had a strong third quarter. Maybe just talk about how you think about expectations for '26 and really where are you positioned to gain share? And then are there any products or verticals that you're most focused on that you think could be areas of strength for Truist?

Question: Ryan Nash - Goldman Sachs - Analyst : And look, you mentioned it before, obviously, payments has been another big area in your fee income. That continues to be a focus. And I was intrigued by the stat that you said 60% penetration on new business. I think we were talking about it last night, you were saying that the back book is much lower, 20% or 25%. So clearly, that looks like it's going to present a huge opportunity. Maybe just expand a little bit on this progress that you're seeing and help us frame the remaining revenue growth opportunity and how this fits into the overall strategy.

Question: Ryan Nash - Goldman Sachs - Analyst : And maybe just to round out the fee discussion, the third area that you highlighted that could be a high single-digit grower over time as well. Maybe just talk about where you are now in terms of the penetration. Obviously, Premier Banking and the like are all factoring in. What are you doing to grow it? And how are you feeling about your ability to take market share?

Question: Ryan Nash - Goldman Sachs - Analyst : So to kind of bring that all together, when I think about your tenure as CEO at both the Truist and predecessor institutions, operating leverage has sort of been the hallmark of yours. You're on track to deliver positive operating leverage this year. You've talked about incrementally more next year. We just spent a lot of time talking about the pieces on the revenue side, more than double greater than 4% into next year with faster fees. So sort of a two-part question. One, how are you thinking about the investment of expenses growth into '26? How are you finding ways to invest in the business and find cost savings? And broadly speaking, how are you thinking about operating leverage into next year?

Question: Ryan Nash - Goldman Sachs - Analyst : Got you. So obviously, there's been a huge focus across the industry on AI, a lot of it focused on achieving efficiencies. How are you thinking about the role of AI at Truist in terms of either cost efficiencies, managing the expense base or things like Agentic AI to generate revenue growth? Maybe just talk a little bit about where you --

Question: Ryan Nash - Goldman Sachs - Analyst : Got you. That's super helpful. Let's shift gears a little bit and talk about credit quality. Obviously, asset quality has been at the forefront of the industry following certain high-profile frauds and the associate bank balance sheet exposure. You guys have a small exposure to First Brands. Maybe just talk about what are some of the areas that you're most closely on your radar? And how are you expecting to see credit losses evolve in your portfolio over time?

Question: Ryan Nash - Goldman Sachs - Analyst : So I thought maybe in the last couple of minutes, we'd shift gears and talk a little bit about capital. You referenced it earlier. I think as part of your 2027 ROTCE target, you're expecting CET1, I think, around 10% at the end of the year, which should result in elevated buybacks. I think you talked about $3 billion to $4 billion. So first, maybe just talk a little bit about the capital priorities and -- within the next few years? And how does that fit into the ROTCE framework? And do you think you can maintain this pace of buybacks even if we do see stronger loan growth over time?

Question: Ryan Nash - Goldman Sachs - Analyst : I think what was noticeable in your response to that last question was no discussion of M&A. And obviously, we've seen several high-profile bank deals in and around your markets. You've been pretty adamant that the only M&A that you've been doing and is Truist and you've obviously been buying back a lot of stock. Maybe just talk about how M&A, if at all, fits into your long-term strategy, why not? And what would cause you to change course in terms of wanting to engage in strategic activity?

Question: Ryan Nash - Goldman Sachs - Analyst : So we're getting deep in the shot clock. So maybe I have time for one last question. You've obviously done a ton of things to improve the standing of the company. It seems like we have a really high sense of urgency around targets and growing the business and a lot of these strategic initiatives. So maybe just conclusion, as you look ahead to '26, what do you foresee as being the biggest things that have changed your positioning into next year relative to your positioning coming into this year?

Question: Ryan Nash - Goldman Sachs - Analyst : Awesome. Well, we're out of time, but please join me in thanking Bill.