Truist Financial TFC remains well-positioned for revenue growth on the back of decent loan demand, high rates, strategic restructuring initiatives and fee income growth. However, elevated expenses and weakening asset quality remain headwinds.
TFCs net interest income (NII) growth seems encouraging. While the metric declined in the first quarter of 2024, it experienced a five-year (ended 2023) compound annual growth rate (CAGR) of 16.9% driven by decent loan demand, merger deals and increasing rates.
Its net interest margin (NIM) declined marginally in 2023 to 3%. While the current high interest rates are likely to have a positive impact on NII and NIM, higher funding costs will weigh on both.
We project NII to decline 2.9% in 2024 with a …
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