Truist Financial Corporation (TFC) Q3 2022 Earnings Call Transcript

Truist Financial Corporation (NYSE:TFC) Q3 2022 Results Conference Call October 18, 2022 8:00 AM ET

Company Participants

Ankur Vyas - Head of Investor Relations

Bill Rogers - Chairman and Chief Executive Officer

Mike Maguire - Chief Financial Officer

Clarke Starnes - Vice Chair and Chief Risk Officer

Beau Cummins - Vice Chair

John Howard - Chief Insurance Officer

Conference Call Participants

Gerard Cassidy - RBC

Ken Usdin - Jefferies

Ryan Nash - Goldman Sachs

Betsy Graseck - Morgan Stanley

Mike Mayo - Wells Fargo

Ebrahim Poonawala - Bank of America

Matt O'Connor - Deutsche Bank

Erika Najarian - UBS

Operator

Greetings, ladies and gentlemen, and welcome to the Truist Financial Corporation Third Quarter 2021 [2022] (sic) Earnings Conference Call. Currently, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. As a reminder, this event is being recorded.

It is now my pleasure to introduce your host, Mr. Ankur Vyas, Head of Investor Relations with Truist Financial Corporation. Please go ahead.

Ankur Vyas

Thank you, Jake, and good morning, everyone. Welcome to Truist's third quarter 2022 earnings call. With us today are our Chairman and CEO, Bill Rogers; and our CFO, Mike Maguire. During this morning's call, they will discuss Truist's third quarter results and share their perspectives on our efforts to transition from an integration focus to an operating focus, current business conditions and our continued activation of Truist's purpose.

Clarke Starnes, our Vice Chair and Chief Risk Officer; Beau Cummins, our Vice Chair; and John Howard, our Chief Insurance Officer, are also in attendance and are available to participate in the Q&A portion of the call. The accompanying presentation, as well as our earnings release and supplemental financial information, are available on the Truist Investor Relations website, ir.truist.com.

Our presentation today will include forward-looking statements and certain non-GAAP financial measures. Please review the disclosures on Slides 2 and 3 of the presentation regarding these statements and measures as well as the appendix for the appropriate reconciliations to GAAP. In addition, Truist is not responsible for and does not edit nor guarantee the accuracy of our earnings teleconference transcripts provided by third parties. The only authorized live and archived webcast are located on our website.

With that, I'll now turn the call over to Bill.

Bill Rogers

Thanks, Ankur, and good morning, everyone, and thank you for joining our call today. Our third quarter reflected strong progress in many areas overall. However, financial performance was mixed, reflecting continued challenging market conditions. Strong spread income resulted from significant margin expansion that exceeded our guidance and strong broad-based loan growth. Credit quality remains excellent. At the same time, capital markets revenue did not rebound as anticipated, and in fact, declined link quarter.