Truist: Underwhelming Results In What Should Be A Supportive Market

I wrote earlier this year that 2022 should be a better year for “Main Street” banks like Fifth Third (FITB), Regions (RF), and Truist (NYSE:TFC) versus more “money center” banks that are more reliant on capital markets activities and business with large multinationals. That thesis has held up, but Truist has not performed as well as expected (or as well as many peers), and the shares reflect this – falling almost 30% since my last update and significantly underperforming regional banks (as well as money center banks as well).

The SunTrust deal was supposed to create both cost and synergy opportunities for Truist, and these were supposed to propel the company to above-average growth. So far, the results have been underwhelming, and in a macro environment that should favor Truist (particularly with respect to health C&I loan demand), the results just haven’t been there. While I do still believe in the bullish case for Truist, there is work to do here and management bears the burden of restoring investor confidence in a differentiated positive outlook.

 

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Truist: Underwhelming Results In What Should Be A Supportive Market