Truist Financial Corporation

Q3 profitability & EPS drivers (good + key caveat): - Truist reported GAAP net income of $684m / $0.56 diluted EPS. - Adjusted EPS was $1.16, +12% YoY, but Q3 included large “strategic actions” impacts. - Those actions caused net reported EPS drag of about $0.60 per share (notably AFS repositioning losses ~ $0.90/share partially offset by RAC reserve release benefit ~ $0.36/share). - Adjusted ROTCE was 14.6% (+100 bps YoY), driven by improved earnings and capital return discipline. - Wealth management outperformed (best quarter ever per mgmt), but investment banking revenue was pushed late due to broader market volatility.

Balance-sheet repositioning & what changed operationally (surprising + negative/positive): - Completed sale of RAC auto loan portfolio (previously announced): $5.5B loans sold, $5.2B net proceeds; also improved credit profile: - Consolidated NPLs down 28% - Expected annual net charge-offs down ~10 bps - AFS securities repositioning funded by RAC: sold $8.6B agency MBS (book yield 2.67%, duration 5.8 yrs) and bought $7.2B higher-yield securities (effective yield ~5.6%, duration 2.3 yrs). - Signed agreement to sell LightStream (national unsecured direct lending): $7.7B loans, expected close in Q4: - ~$7.2B net proceeds - $850m / ~20 bps CET1 - Net charge-offs down ~7 bps - Strategic implication: management says the goal is high-quality, through-the-cycle capital and reduced stressed credit loss profile, not “financial engineering.”

Capital, dividends, and buybacks (investor-focused): - Returned $1.8B to shareholders in Q3: $632m common dividend + $1.2B share repurchases. - CET1 ratio declined to 10.7% (-20 bps linked quarter) due to capital return and AFS repositioning, partially offset by earnings and RAC sale benefits. - Q4 buyback outlook: repurchases of ~$1.0B (down from $1.2B in Q3), reflecting current rates and ongoing strategic review; outlook excludes potential further actions like LightStream sale.