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1. Company Snapshot

1.a. Company Description

Truist Financial Corporation, a holding company, provides banking and trust services in the Southeastern and Mid-Atlantic United States.The company operates through three segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings.Its deposit products include noninterest-bearing checking, interest-bearing checking, savings, and money market deposit accounts, as well as certificates of deposit and individual retirement accounts.


The company also provides funding; asset management; automobile lending; bankcard lending; consumer finance; home equity and mortgage lending; insurance, such as property and casualty, life, health, employee benefits, workers compensation and professional liability, surety coverage, title, and other insurance products; investment brokerage; mobile/online banking; and payment, lease financing, small business lending, and wealth management/private banking services.In addition, it offers association, capital market, institutional trust, insurance premium and commercial finance, international banking, leasing, merchant, commercial deposit and treasury, government finance, commercial middle market lending, small business and student lending, floor plan and commercial mortgage lending, mortgage warehouse lending, private equity investment, real estate lending, and supply chain financing services.Further, the company provides corporate and investment banking, retail and wholesale brokerage, securities underwriting, and investment advisory services.


As of December 31, 2021, the company operated through 2,517 banking offices.The company was formerly known as BB&T Corporation and changed its name to Truist Financial Corporation in December 2019.Truist Financial Corporation was founded in 1872 and is headquartered in Charlotte, North Carolina.

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1.b. Last Insights on TFC

Truist Financial Corporation's recent performance was negatively impacted by concerns about corporate loan quality, despite sector headwinds. However, the company's Q3 earnings beat estimates, driven by rising fee income, higher loans, and lower provisions. The company's business-centric loan book and low commercial real estate exposure provide resilience, while credit quality remains strong. Additionally, management's confidence in the capital base and loan portfolio is reflected in stepped-up share buybacks. According to analysts, the net interest margin appears near a bottom, with fixed-rate reinvestment and capital strength supporting future earnings.

1.c. Company Highlights

2. Truist Financial Corporation Delivers Strong Q3 2025 Results

Truist Financial Corporation reported a net income available to common shareholders of $1.3 billion, or $1.04 per share, beating analyst estimates of $0.992 per share. The company's revenue growth was driven by a 2.5% increase in average loan balances, primarily due to growth in commercial and consumer loans. Adjusted non-interest income rose 9.9% to over $1.5 billion, driven by strong investment banking and trading income, as well as wealth management income. The company's earnings per share (EPS) included $0.02 per share of restructuring charges.

Publication Date: Oct -17

📋 Highlights
  • Q3 Net Income:: $1.3 billion ($1.04/share), including $0.02/share in restructuring charges, reflecting strategic growth and diversified business performance
  • Loan Growth:: +2.5% average loan balances driven by commercial and consumer loan expansion
  • Non-Interest Income:: Adjusted non-interest income rose 9.9% ($1.5 billion), fueled by investment banking, trading, and wealth management
  • Share Buybacks:: $1.2 billion returned to shareholders in Q3, with plans for $3 billion–$4 billion in 2026

Revenue Growth and Margin Analysis

The company's net interest income is expected to grow approximately 2% in the fourth quarter of 2025, driven by loan growth and lower deposit costs. The net interest margin is expected to improve due to fixed-rate asset repricing, profitable loan and core client deposit growth, and a favorable operating environment. Truist's revenue is expected to increase by approximately 1% to 2% in the fourth quarter of 2025.

Outlook and Guidance

Truist expects revenue growth to more than double in 2026 compared to 2025, with a growth rate of over 4%. The company targets a 15% return on tangible common equity (ROTCE) in 2027, driven by solid progress in key strategic focus areas. The company's capital levels are ample, with a $750 million buyback floor and flexibility to increase it. The company plans to increase its share repurchase program to $3 billion to $4 billion in 2026.

Valuation and Dividend Yield

Truist's current Price-to-Tangible Book Value (P/TBV) is around 0.85, indicating that the stock may be undervalued. The Dividend Yield is 4.88%, providing a relatively attractive income stream for investors. With the company's expected revenue growth and improving profitability, the current valuation multiples appear reasonable.

Credit Quality and Risk Management

The company's credit quality remains strong, with a focus on hyper-vigilance around credit risk. Non-accrual C&I loans increased to $800 million, primarily due to the First Brands exposure. However, Truist has a highly diversified portfolio with a low exposure to NDFI, totaling around 11% of the total lending portfolio.

3. NewsRoom

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Groupe la Francaise Grows Stake in Truist Financial Corporation $TFC

Dec -04

Source: defenseworld.net

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Truist Securities strengthens Equity Research coverage in high-growth sectors

Dec -02

Source: prnewswire.com

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Truist hires Lo Li to lead consumer and small business banking technology, data and operations

Nov -26

Source: prnewswire.com

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Truist to speak at the Goldman Sachs 2025 Financial Services Conference

Nov -20

Source: prnewswire.com

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Truist names Pascal Belaud as chief AI & data officer

Nov -19

Source: prnewswire.com

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Truist introduces team covering middle-market private equity sponsors, family offices

Nov -17

Source: prnewswire.com

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JPMorgan vs. Truist Financial: Which Bank Stock is the Better Buy Now?

Nov -14

Source: zacks.com

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Truist Bank Preferreds Reviewed: All Rated Hold

Nov -14

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.90%)

6. Segments

Consumer and Small Business Banking (CSBB)

Expected Growth: 5.2%

CSBB is expected to grow steadily due to Truist's strong branch network and increasing demand for digital banking services. The segment's diversified product offerings and focus on customer relationships will drive growth, with a potential increase in cross-selling opportunities.

Wholesale Banking (WB)

Expected Growth: 4.5%

WB growth is expected to be driven by increasing demand for digital payment solutions, trade finance, and liquidity management services. Truist's strong client relationships and expanding product offerings will support growth, although economic uncertainty may impact corporate borrowing and investment.

Other, Treasury & Corporate (Ot&C)

Expected Growth: 3.5%

Ot&C growth is expected to be relatively stable, driven by the company's focus on optimizing its operations and improving efficiency. The segment's growth will be influenced by the company's overall performance and its ability to manage costs.

7. Detailed Products

Consumer Banking

Provides a range of deposit and loan products to individuals, including checking and savings accounts, credit cards, personal loans, and mortgages.

Corporate and Commercial Banking

Offers a range of financial solutions to businesses, including cash management, treasury services, and commercial lending.

Investment Banking and Markets

Provides advisory services, capital raising, and risk management solutions to corporations, governments, and institutional investors.

Wealth Management

Offers investment management, brokerage, and trust services to individuals, families, and institutions.

Mortgage Banking

Provides residential mortgage lending and servicing solutions to individuals and institutions.

Insurance

Offers a range of insurance products, including life, disability, and long-term care insurance.

Digital Banking

Provides online and mobile banking solutions to individuals and businesses.

8. Truist Financial Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Truist Financial Corporation operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand recognition and diversified product offerings mitigate the threat of substitutes.

Bargaining Power Of Customers

Truist Financial Corporation's customers have significant bargaining power due to the availability of alternative financial institutions and online banking services. This forces the company to maintain competitive pricing and high-quality services.

Bargaining Power Of Suppliers

Truist Financial Corporation has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's large scale of operations also gives it negotiating power over suppliers.

Threat Of New Entrants

The financial services industry has high barriers to entry, including regulatory requirements and significant capital investments. This limits the threat of new entrants and allows Truist Financial Corporation to maintain its market position.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players competing for market share. Truist Financial Corporation must continually innovate and improve its services to maintain its competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.94%
Debt Cost 3.95%
Equity Weight 48.06%
Equity Cost 9.22%
WACC 6.48%
Leverage 108.09%

11. Quality Control: Truist Financial Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Preferred Bank

A-Score: 7.1/10

Value: 7.0

Growth: 8.1

Quality: 7.4

Yield: 6.0

Momentum: 6.5

Volatility: 7.7

1-Year Total Return ->

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OpenBank

A-Score: 7.0/10

Value: 7.7

Growth: 6.9

Quality: 6.7

Yield: 8.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

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PNC Financial Services Group

A-Score: 6.9/10

Value: 5.8

Growth: 6.0

Quality: 6.6

Yield: 8.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

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M&T Bank

A-Score: 6.6/10

Value: 6.6

Growth: 5.6

Quality: 6.8

Yield: 6.0

Momentum: 6.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Truist

A-Score: 5.8/10

Value: 4.8

Growth: 2.8

Quality: 5.5

Yield: 8.0

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
First Citizens BancShares

A-Score: 4.9/10

Value: 6.1

Growth: 9.8

Quality: 4.9

Yield: 0.0

Momentum: 2.5

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

47.54$

Current Price

47.54$

Potential

-0.00%

Expected Cash-Flows