TRUIST FINANCIAL CORP Q2 FY2025 earnings call

• Truist's purpose to inspire and build better lives and communities is the foundation of strategy. New leaders were attracted to the purpose-driven culture. • Solid second quarter performance reflects diversity of business model and execution of strategic growth initiatives. • Loan growth was broad-based with consumer and wholesale segments both seeing growth. • In consumer and small business banking, consumer loan and deposit growth, net new checking account growth, and progress with premier banking clients. • In wholesale, loan growth, focus on middle market, and increase in new corporate and commercial clients and revenue per client. • In wealth, positive net asset flows despite market volatility and increase in AUM. • Payments team launched new services and digital innovation like request for payment over RTP network via alias.

For the second quarter, net income available to common shareholders was $1.2 billion or $0.90 a share. Average loan balances increased 2% and end-of-period loans increased 3.3% linked quarter. Growth was broad-based across consumer and wholesale segments. Average deposits increased $8.3 billion sequentially or 2.1% driven by growth in interest checking, time deposits, and non-interest bearing demand. Taxable equivalent net interest income increased 2.3% linked quarter or $80 million primarily due to loan growth. Adjusted non-interest income increased $25 million or 1.8% versus the first quarter of 2025. Asset quality metrics showed improvement with non-performing loans and net charge-offs declining on a linked quarter basis.

• Full year 2025: Expect revenue to increase 1.5% to 2.5% relative to 2024, net interest income to increase 3%, adjusted expenses to increase about 1%, net charge-offs of 55 to 60 basis points, and effective tax rate approximately 17.5% to 20%. • Third quarter 2025: Expect revenue to increase approximately 2.5% to 3.5% relative to second quarter revenue, net interest income to increase approximately 2%, noninterest income to increase by about 5%, adjusted expenses to increase about 1%, and target approximately $500 million of share repurchases.

• Market volatility could impact investment banking and trading revenue. • Macro-economic uncertainty may affect client confidence and business activity. • Regulatory environment changes could pose operational challenges.

Q: Scott Siefers asked about the sentiment among customer base, especially commercial.

A: William Rogers said consumer business is strong with good credit quality, wholesale clients have strength and new clients are impressed with Truist's offerings.

Q: Scott Siefers inquired about the step down in share repurchase pace.

A: Mike Maguire explained it was opportunistic based on share price attractiveness and prioritizing the banking franchise.

Q: Ken Usdin asked about fee side, especially IB and trading.

A: Mike Maguire said trading and banking were weak in April, improved in May, and nearly recovered in June.

Q: Ebrahim Poonawala asked about ROTCE and fee revenue growth.

A: Mike Maguire said multiple factors contribute to improving profitability, and William Rogers talked about the significance of payment products.

Q: Betsy Graseck asked about restructuring expenses and investments.

A: Mike Maguire said most restructuring charges were related to severance not merger-related, and William Rogers explained the calibration of expense growth and investment priorities.

Q: John Pancari asked about expense flexibility and loan growth.

A: Mike Maguire said there are levers to manage expenses, and William Rogers explained loan growth is production-driven.

Q: Mike Mayo asked about NIM and merger regulation time.

A: Mike Maguire talked about NIM outlook, and William Rogers said merger integration is behind and regulatory is ongoing.

Q: Chris McGratty asked about expense and technology investment.

A: William Rogers and Mike Maguire explained the relationship between expense savings and technology investment.

Q: Steven Alexopoulos asked about impact of rate cuts on revenue.

A: Mike Maguire said the shape of the rate curve matters, but the year's revenue outlook is manageable.

Q: Matt O'Connor asked about investment banking capital market fees.

A: William Rogers explained business mix and timing factors.

Q: Thomas Leddy asked about reasons for strong credit quality.

A: Brad Bender said macro certainty and stabilization in CRE sector contributed.