2024-07-19 09:22:44 ET
Summary
- Truist Financial Corporation will report its second-quarter results on Monday, July 22, before the market opens.
- In this update, I share what I expect from Truist's Q2 results — especially given the solid Q2 report from rival U.S. Bancorp.
- I take a fresh look at the utilization of the Bank Term Funding Program, under which the Federal Reserve ceased making new loans in March.
- I also explain why I am no longer buying TFC stock, despite its seemingly still low valuation.
Introduction
Truist Financial Corporation ( TFC ), one of the largest “regional” banks in the U.S., is probably best known for its significant unrealized losses in its held-to-maturity ((HTM)) portfolio. This was ultimately the reason for the precipitous stock decline in March 2023 amid the failure of Silicon Valley Bank.
As I've explained in detail in my previous coverage of Truist here on Seeking Alpha, I felt very comfortable looking past these losses. This is partially in light of the Federal Reserve's Bank Term Funding Program, which was announced quickly after the onset of the 2023 banking crisis to provide emergency liquidity and restore confidence in the banking system....
Read the full article on Seeking Alpha
For further details see:
Why Truist Financial Stock Is Not A Buy Ahead Of Q2 Earnings