Truist Financial Q3 Preview: Core Banking Trends Become Even More Important

Mark Dockray
1.9K Followers
(12min)

Summary

  • Truist Financial will report third quarter earnings pre-market on Thursday, October 17. Analysts expect roughly flat EPS.
  • Having disposed of its remaining stake in Truist Insurance Holdings, Truist is now a NII-heavy bank with greater long-term sensitivity to interest rates.
  • On the plus side, Truist's current balance sheet composition can drive reasonable net interest margin expansion in the coming easing cycle.
  • At ~11.6x consensus 2024 EPS, the stock looks roughly fair value based on a ~10% hurdle rate.

Truist Branch Bank, Waynesville, NC

J. Michael Jones

Truist Financial (NYSE:TFC) reports third quarter earnings next week. Having gone through something of a small transformation following a major asset disposal and balance sheet restructuring, trends in Truist's core banking business will become even more important

This article was written by

1.9K Followers
I like to take a long term, buy-and-hold approach to investing, with a bias toward stocks that can sustainably post high quality earnings. Mostly found in the dividend and income section. Blog about various US/Canadian stocks at 'The Compound Investor', and predominantly UK names on 'The UK Income Investor'.

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