From The Motley Fool · The Motley Fool Team · · 30s
Truist Shifts Strategy for Long-Term Investors
Truist exits non-core lending to boost returns for long-term investors.
In brief
Truist exits non-core lending to boost returns for long-term investors. Truist plans to exit non-core lending and reallocate capital to improve returns for long-term investors. Originally reported by The Motley Fool.
Exiting Non-Core Consumer Lending
Truist sells $7.7 billion in LightStream loans to free capital for relationship banking.
“Exiting stand-alone lending units will lower credit risk and free up capital for higher-return relationship banking”
Balance Sheet Repositioning
Bank shifts securities from low-yielding mortgages to U.S. Treasuries to reduce risk.
“We plan to remix our securities away from long-dated MBS into a greater mix of U.S. Treasuries”
Spending Discipline for Growth
Cost cuts fund branch renovations and technology upgrades to win low-cost checking accounts.
“The savings will fund branch renovations, technology upgrades, and commercial banker hires to win daily demand deposit accounts”
The big picture
Truist plans to exit non-core lending and reallocate capital to improve returns for long-term investors.
