Truist Financial Corporation

This is our first report on Truist Financial Corporation, one of the largest regional banks in the United States. Truist’s first quarter results reflect its ongoing investments, agility, and momentum. The company announced a first-quarter net income of $1.4 billion, owing to robust growth and adjusted PPNR, lower merger costs, and a more normal provision level. Truist opened 146,000 bank accounts online. The company also noticed a significant increase in digital transactions, particularly with Zelle, highlighting the relevance of payment and money movement capabilities to their clients. Besides, Truist unveiled a new data-driven deposit pricing engine in the deposit area, which provides customised relationship-based rates for clients at account opening and will allow it to be even more focused on the rate paid. The company also expanded its digital lending capabilities by launching its commercial loan dashboard. This industry-leading system allows wholesale lending clients to track the status of their loans, submit documents, and eventually sign documents electronically. Loan growth was strong in both growth and lower portfolios. Truist further collaborated with IBM to explore quantum computing applications relevant to the industry while accessing IBM’s technology and knowledge. We initiate coverage on the stock of Truist Financial Corporation with a ‘Hold’ rating.