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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 driven by solid Q3 2025 results, with EPS beating estimates and a stable net interest margin. The company's loan growth outpaced peers, and credit quality remains strong. A new $10 billion share repurchase plan was announced, signaling continued capital returns to shareholders. Institutional investors, such as Cerity Partners LLC and Groupe la Francaise, have increased their stakes in the company. These factors have contributed to a positive outlook for the company's short-term performance.

1.c. Company Highlights

2. Truist Financial's 2025 Earnings: A Strong Finish with Promising Outlook

Truist Financial Corporation reported net income available to common shareholders of $1.3 billion or $1 per diluted share for the fourth quarter and $5 billion or $3.82 per diluted share for the full year 2025. The company's revenue for the full year was driven by broad-based loan growth in both wholesale banking and consumer and small business banking. However, the actual EPS came out at $1, slightly lower than the estimated $1.09. The net interest margin (NIM) for 2025 stood at 3.03%, and the company is targeting an expansion to around 3.13% by the end of 2026.

Publication Date: Jan -22

📋 Highlights
  • Strong Full-Year Earnings: Truist reported $5B net income ($3.82 per diluted share) in 2025, up from $1.3B in Q4.
  • Loan Growth Momentum: Broad-based growth in wholesale and consumer/small business banking driven by new loan originations and client acquisition.
  • Capital Returns Accelerated: $5.2B returned to shareholders via $2.5B stock buybacks in 2025, a 37% increase over 2024.
  • 2026 Revenue & Margin Guidance: 4-5% revenue growth projected, with net interest margin targeting 3.13% by year-end and efficiency ratio improving to mid-50s.
  • Aggressive Share Repurchase Plan: $4B in 2026 buybacks (60% higher than 2025) to fuel capital returns and a 15% ROTCE target by 2027.

Loan Growth and Deposit Momentum

The company guides for 3-4% loan growth in 2026, with a focus on high-quality, advice-driven business. Deposit growth is expected to be driven by momentum in wholesale and consumer businesses, with a focus on deepening client relationships. Truist saw wholesale deposits grow 400 basis points faster in the latter part of 2025 versus 2024, with 62% of new clients coming with deposits. End-of-period client deposits are up almost $7.5 billion, indicating a strong momentum.

Capital Management and Share Repurchase

Truist's capital management plan includes a $4 billion share repurchase target for 2026, representing a 60% increase versus 2025. The company returned $5.2 billion of capital to shareholders through a common stock dividend and the repurchase of $2.5 billion of its common stock in 2025, reflecting a 37% increase over 2024. The company's focus on returning capital to shareholders is evident, with a goal of achieving a 15% ROTCE in 2027.

Valuation and Outlook

Considering the current valuation metrics, Truist's P/TBV ratio stands at around 0.98, indicating a relatively fair valuation. The dividend yield is attractive at 4.16%. Analysts estimate next year's revenue growth at 4.2%, which is in line with the company's guidance of 4-5% revenue increase in 2026. With a strong economic forecast and yield curve expected to drive loan demand, Truist is poised for growth. As William Rogers Jr. mentioned, the company's focus on specialization and a strong right to win in the middle market investment banking space is expected to drive growth.

Risk Considerations

The company faces risks related to macroeconomic concerns, such as the economy's ability to hold up and employment rates. Tight credit spreads, while positive, also pose a risk. However, Truist's diversified business model and strong capital management plan are expected to mitigate these risks. The company's efficiency ratio is expected to improve over the next couple of years, with a target in the mid-50s, indicating a focus on cost management.

3. NewsRoom

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Truist launches AI-enabled receivables platform to accelerate cash application and minimize exceptions

13:03

Source: prnewswire.com

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Raleigh Capital Management Inc. Boosts Stock Position in Truist Financial Corporation $TFC

08:12

Source: defenseworld.net

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Atlantic Union Bankshares Corp Has $8.71 Million Stake in Truist Financial Corporation $TFC

08:12

Source: defenseworld.net

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Convergence Investment Partners LLC Buys New Shares in Truist Financial Corporation $TFC

08:12

Source: defenseworld.net

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Jones Financial Companies Lllp Increases Stake in Truist Financial Corporation $TFC

Feb -02

Source: defenseworld.net

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Independent Advisor Alliance Purchases 29,191 Shares of Truist Financial Corporation $TFC

Feb -01

Source: defenseworld.net

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Truist Financial Corporation $TFC Shares Sold by Bank of New York Mellon Corp

Jan -30

Source: defenseworld.net

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Truist Financial Corporation $TFC Shares Acquired by AE Wealth Management LLC

Jan -30

Source: defenseworld.net

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: 7.0/10

Value: 7.1

Growth: 8.1

Quality: 7.5

Yield: 6.0

Momentum: 5.0

Volatility: 8.3

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PNC Financial Services Group

A-Score: 6.5/10

Value: 5.7

Growth: 6.0

Quality: 6.7

Yield: 7.0

Momentum: 4.0

Volatility: 9.3

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M&T Bank

A-Score: 6.2/10

Value: 6.5

Growth: 5.6

Quality: 6.8

Yield: 6.0

Momentum: 3.5

Volatility: 8.7

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OpenBank

A-Score: 5.7/10

Value: 6.6

Growth: 6.9

Quality: 5.8

Yield: 7.0

Momentum: 1.5

Volatility: 6.7

1-Year Total Return ->

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Truist

A-Score: 5.7/10

Value: 4.7

Growth: 2.8

Quality: 5.7

Yield: 8.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

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First Citizens BancShares

A-Score: 4.9/10

Value: 5.3

Growth: 9.8

Quality: 4.3

Yield: 0.0

Momentum: 3.5

Volatility: 6.3

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

53.84$

Current Price

53.84$

Potential

-0.00%

Expected Cash-Flows