Truist’s business is mostly retail and wholesale banking after the sale of its insurance brokerage business unit in 2024. While this divestiture provided the bank with excess capital to reposition some of its lower-yield securities and for share buybacks, we appreciated the capital-light and less cyclical fee income stream, which historically provided a nice boost to the bank’s return on equity profile.
Truist’s Southeast footprint has attractive growth potential, and the bank is building 100 new branches. If the bank is successful in taking more deposit share, it can improve its funding profile and returns.
The US economy has some pockets of softness. If the economy went into a recession, Truist would face lower balance-sheet growth and higher credit costs.
|
Metric
|
TFC
|
USB
|
RF
|
|---|---|---|---|
Price/Earnings (Normalized) | 11.88 | 11.74 | 11.82 |
Price/Book Value | 1.04 | 1.48 | 1.40 |
Price/Sales | 3.10 | 3.02 | 3.33 |
Price/Cash Flow | 7.94 | 9.09 | 9.19 |
|
Metric
|
TFC
|
USB
|
RF
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | — | — | — |
|
Metric
|
TFC
|
USB
|
RF
|
|---|---|---|---|
Return on Assets (Normalized) | 1.05% | 1.13% | 1.39% |
Return on Equity (Normalized) | 9.66% | 13.89% | 12.78% |
Return on Invested Capital (Normalized) | — | — | — |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
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Economic Moat
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Market Cap
|
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United States