Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Truist Financial Corp (TFC): Midteens Returns in Sight But Can Loan Growth Catch Up to Profitability Targets?
Truist Financial delivered solid Q4 results, with net income of $1.2B ($0.91 per share) on $5.1B in revenue, aligning with expectations. The bank maintained a 12.9% return on tangible common equity (13.3% for the full year), reinforcing profitability, though positive operating leverage improved just 10bps. Net interest margin declined 5bps to 3.07%, as loan yields compressed and asset repricing outpaced deposit cost relief. Noninterest income grew 6.2% YoY, driven by a 46% rise in investment banking revenue, highlighting Truist’s expanding presence in capital markets. Loan balances saw modest growth, with residential mortgages, C&I lending, and auto offsetting CRE softness, while deposits remained stable. Expense discipline continues, with 2025 guidance embedding 150–200bps of operating leverage and modest 1.5% expense growth. Digital banking initiatives showed strong traction, with digital users (+7% YoY) and digital-originated clients (+31% YoY) reinforcing engagement. Looking ahead, management expects two Fed rate cuts in 2025, supporting deposit cost relief, but loan growth remains a key test. Execution risk persists post-insurance sale, with investors seeking clarity on organic lending growth and strategic initiatives in middle-market expansion and wealth management. The key question: Can Truist accelerate lending to meet midteens return targets, or will balance sheet repositioning and execution hurdles limit upside?
