TRUIST FINANCIAL CORP Q1 FY2026 earnings call

• Purpose: To inspire and build better lives and communities, e.g., project finance business aligns with purpose and financial outcomes. • Results: Net income available to common shareholders $1.4B, $1.09 per diluted share, 25% increase y-o-y. Driven by strategic priorities execution, loan growth, non-interest income growth, expense and credit discipline. • Business segments momentum: Consumer and small business banking with new client growth, digital as growth engine; wholesale with loans, deposits, fees growth and AI utilization. • Capital: CET ratio stable, share repurchases increased, targeting $5B in 2026 vs previous $4B. Well positioned for Basel III proposal.

Consumer and Small Business Banking: Average consumer and small business deposits and loans were up 1% and 4% respectively vs Q1 2025. Premier Banking was strong with deposit and lending production up. Digital share of new-to-bank clients was 45% with Gen Z and millennials over half. AI deployed for enhanced productivity. Wholesale: Average wholesale loans and deposits increased 9% and 2% vs Q1 2025. Middle market deposits grew 11%. Wholesale fee performance strong, esp in wealth management and investment banking. AI leveraged for productivity, underwriting, etc.

• 2026 net interest income expected to increase 2%-3% vs prior 3%-4% due to expected fed funds rate unchanged. • Non-interest income expected high single-digit growth. • Effective tax rate expected approx 14.5%-16.5% taxable equivalent vs previous 16.5%-18.5%. • Target $5B share repurchases in 2026 vs previous $4B. • Q2 2026 revenue expected ~$5.2B, net interest income expected up ~1%, non-interest income expected down ~1%, non-interest expense expected up 3%-4%, targeting ~$1.2B share repurchases.

• NDFI loan portfolio: While well diversified and structured with protections, in a downturn, risks include performance of underlying companies in NDFI structures. • Competitive environment: Deposit side is competitive with yield-seeking behavior and need for marketing expenses and incentives. • Interest rate risk: Sensitivity to moves along the curve, with potential impact on net interest income and deposit costs.

Q: Scott Seifers asked about rationalized NII outlook and deposit competitive environment.

A: Mike McGuire said lack of Fed Fund rate cuts impacts deposit cost leverage and competitive environment.

Q: Ken Uston asked about long-term ROTC target.

A: Bill Rogers and Mike McGuire said it's due to confidence in business momentum, Basel III impact, and expectation of improving profitability.

Q: Erica Najarian asked about unveiling new long-term ROTC target.

A: Bill Rogers said it's due to confidence in business momentum, clarity on capital framework.

Q: Manon Gonzalia asked about 15% ROTC target and longer-term.

A: Bill Rogers said 15% was established without Basel impact, 16%-18% is for 3-5 years with capital efficient revenue and efficiency.

Q: Mike Mayo asked about deposit competition and marketing.

A: Bill Rogers said competitive, use marketing tools, see net new deposit growth.

Q: Matt O'Connor asked about loan growth.

A: Bill Rogers said commercial corporate banking has momentum, focused on high returning relationships.

Q: Ibrahim Sunawalla asked about revenue growth outlook.

A: Bill Rogers said building over time with momentum and operating leverage.

Q: John Pencari asked about deposit growth and rate sensitivity.

A: Mike McGuire said low single-digit deposit growth, focused on mix, relatively neutral rate sensitivity.

Q: Gerard Cassidy asked about NDFI portfolio risks in downturn.

A: Mike McGuire said strong relationships, structural protections, modeled to perform better than aggregate C&I portfolio.

Q: Saul Martinez asked about investment banking growth sustainability.

A: Mike McGuire said high single-digit, low double-digit growth expected, broad-based, tied to franchise.

Q: Chris McGrady asked about operating leverage and AI.

A: Mike McGuire said expect positive operating leverage, AI will play role.

Q: David Chiaverini asked about loan pricing.

A: Bill Rogers said credit spreads relatively tight, hope for margin expansion on credit side.