Truist faces risks from evolving political/economic conditions, regulatory changes, legal proceedings (e.g., Bickerstaff v. SunTrust), and the potential for losses on investment securities and loans. The company's credit quality, particularly in commercial real estate and construction, is a concern. Liquidity risk exists, though the company maintains a buffer. Interest rate risk is significant, with potential negative impacts on net interest income and equity value. The sale of TIH, while positive in some respects, created transition services and commercial agreements with uncertain future outcomes.
Financial Upside
Truist's net income increased in Q3 2024, driven by higher interest income and non-interest income (investment banking and trading). The company repurchased $500 million of common stock, returning capital to shareholders. The sale of TIH generated significant after-tax proceeds, improving capital position and strategic flexibility. Higher yields on loans and securities, and lower funding costs, also contribute to the positive outlook. The company's capital ratios remain strong, exceeding regulatory requirements.
