TFC - Truist Financial Q1 Earnings Preview: Capital Improvement But Deposit Weakness (Rating Downgrade)
2024-04-17 07:56:11 ET
Summary
- Truist's shares have underperformed in the past year due to disappointing deposit performance and an outsized securities portfolio.
- Q4 earnings showed mixed results, with a slight expansion in net interest margin but ongoing deposit attrition.
- The sale of its insurance subsidiary will boost TFC's capital position and provide flexibility for balance sheet repositioning and potential share repurchases.
- Despite this positive, disappointing deposit results and guidance leave me downgrading shares to hold.
Shares of Truist ( TFC ) have been a significant underperformer over the past year. The bank has struggled with disappointing deposit performance as well as an outsized securities portfolio purchased when yields were substantially lower. Still, since recommending shares as a buy in September , they have returned 32%, nearly doubling the S&P 500's return. Truist is scheduled to report earnings before the market opens on April 22nd, and that makes now an appropriate time to preview results and determine whether to take profits....
Truist Financial Q1 Earnings Preview: Capital Improvement But Deposit Weakness (Rating Downgrade)