Truist Financial Corporation (NYSE:TFC) Q4 2022 Earnings Call Transcript

We expect insurance to be up. We expect it to continue in its sort of high-single digit organic growth. We still have some inorganic momentum from some of the acquisitions we have gotten. We expect investment banking to actually return and increase its revenue growth. That will probably be a little more back-end weighted in fairness, but as we see where markets come out. But the big driver is sort of the NII fourth quarter where we are and that moving forward on a stabilized basis. That’s the biggest driver.

Betsy Graseck: And I know in the press release, you talked a bit about having €“ managing your deposit costs well and tightly, etcetera. Can you give us a sense as to how you think about the trajectory of that line item as we go through €˜23?

Bill Rogers: Yes. I will do it at a high level. I mean it will be €“ continue to be slightly down. So, I mean I think that’s €“ that trend will continue. I think on a relative basis, we are showing deposit betas that are more reflective of our opportunity. And as the costs continue to grow, I mean deposit betas will increase. Mike, I don’t know if you want to comment sort of specifically how we are thinking about that.

Mike Maguire: Yes. We mentioned in an earlier question that we see betas increasing. Whether they reach the 40% level or not, we will see. I would say the other trend, Betsy, which is consistent with what others are expecting and what’s consistent with our expectation is we are still seeing a remixing from DDA and interest-bearing so that makes sense. And we are still well above where we were sort of pre-stimulus. We were in the high-20s, 28%, 29%. We peaked during the sort of height of stimulus in the 35.5%, 36%. We are back at like 34% right now and going to 33% and probably approaching 30% over time. And I think, Bill, you hit it right. I mean I think we are seeing some deposit balance pressure in the aggregate and we would expect that to continue in 2023, perhaps moderate a bit.

Betsy Graseck: Okay. Got it.

Mike Maguire: That’s great.

Ankur Vyas: Alright. Thanks Betsy. Jess, it looks like there is not anyone left in the queue, so that completes our earnings call. If you have any additional questions, please feel free to reach out to the Investor Relations team. Thank you all for your interest in Truist. We hope you have a great day. Jess, you can now disconnect the call.

Operator: Thank you. Ladies and gentlemen that will conclude today’s call. We thank you for your participation. You may disconnect your line at this time.