TFC - Truist Financial Still Has Room To Run While Yielding 5.48%
2024-04-05 09:00:00 ET
Summary
- Truist Financial Corporation has rebounded by 18.79% over the past year, outpacing the SPDR S&P Regional Banking ETF.
- TFC's customer base remains loyal, with deposits near all-time highs and lending at a healthy pace.
- TFC is embracing technology and has a strong mobile app, indicating customer satisfaction and potential for future growth.
This time last year, we were dealing with a regional banking crisis as Silicon Valley Bank (SVB) imploded last March. This led to several other regionals being taken over, such as Signature Bank, while the sector sold off. In addition to SVB failing, there was a narrative that commercial real estate assets were toxic and the keys would be turned over as defaults on debt occurred due to the rising rate environment. As regional banks held a large number of notes, this narrative added additional fuel to the bearish trend throughout the sector. Truist Financial Corporation ( TFC ) was one of the regional banks that I felt was being unfairly tarnished. Over the past year, shares of TFC have rebounded by 18.79% and have outpaced the SPDR S&P Regional Banking ETF ( KRE ) in their recovery. While shares of TFC have increased by 48.16% off its lows, it's still trading under its pre-regional banking crisis and its pre-pandemic levels. With another year in the books TFC has illustrated that its customer base still finds value in its banking model as their deposits are still near all-time highs while still lending at a healthy pace. I think shares of TFC will continue to recover, and a respectable amount of income will continue to be generated along the way....
Truist Financial Still Has Room To Run While Yielding 5.48%