CHARLOTTE, N.C., Dec. 23, 2020 /PRNewswire/ -- Truist
Financial Corporation (NYSE: TFC) today announced increased capital
flexibility following the release of the second round of bank
stress tests by the Federal Reserve. The Federal Reserve modified
its prior restrictions on capital distributions, allowing Truist to
maintain its per share common stock dividend and repurchase common
stock, provided that the aggregate capital distributions do not
exceed the average amount of the firm's net income over the four
preceding calendar quarters. The Federal Reserve would also allow
Truist to redeem Tier 1 and Tier 2 capital instruments.
The Truist capital plan includes maintaining a first quarter
2021 dividend of $0.45 per common
share, subject to approval by our Board of Directors at its
January 2021 meeting.
The Truist Board of Directors authorized the repurchase of up to
$2 billion of the company's common
stock beginning in the first quarter of 2021, as well as certain
other actions to optimize Truist's capital position. Management's
intention is to maintain an approximate 10% Common Equity Tier 1
ratio after taking into account strategic actions such as non-bank
acquisitions or stock repurchases. Any stock repurchase activity
will be informed by economic and regulatory considerations as well
as Truist's capital position, earnings outlook, and capital
deployment priorities.
Kelly King, Truist Chairman and
CEO, said, "The latest stress test results demonstrate Truist's
sound capital and risk management practices. As it relates to
capital deployment, our highest priority is to continue to meet the
needs of our clients by reinvesting in our businesses. After that,
our capital priorities are to maintain a strong and stable dividend
and pursue strategic opportunities, followed by stock repurchases.
Given continued economic uncertainty and our ongoing merger
integration work, it is more important than ever to continue to
manage our capital levels prudently."
About Truist
Truist Financial Corporation is a
purpose-driven financial services company committed to inspire and
build better lives and communities. With 275 years of combined
BB&T and SunTrust history, Truist has leading market share in
many high-growth markets in the country. The company offers a wide
range of services including retail, small business and commercial
banking; asset management; capital markets; commercial real estate;
corporate and institutional banking; insurance; mortgage; payments;
specialized lending; and wealth management. Headquartered in
Charlotte, North Carolina, Truist
is the sixth-largest commercial bank in the U.S. with total assets
of $499 billion as of September 30, 2020. Truist Bank, Member FDIC.
Learn more at Truist.com.
CAUTIONARY STATEMENTS
This report contains certain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, regarding the financial
condition, results of operations, business plans and the future
performance of Truist under hypothetical Supervisory stress
scenarios. Words such as "anticipates," "believes," "estimates,"
"expects," "forecasts," "intends," "plans," "projects," "may,"
"will," "should," "would," "could" and other similar expressions
are intended to identify these forward-looking statements.
Forward-looking statements are not based on historical facts but
instead relate to future results and occurrences, and therefore are
subject to inherent uncertainties, risks, and changes in
circumstances that are difficult to predict. Truist's future
financial results will be influenced by actual economic and
financial conditions and various other factors, including those
described in Truist's Annual Report on Form 10-K for the fiscal
year ended December 31, 2019, as
updated by its Quarterly Reports on Form 10-Q, and its other
reports filed with the Securities and Exchange Commission, and
available at www.sec.gov. Truist undertakes no obligation to revise
or publicly update any forward-looking statements for any reason
following the date of this report, except as required by law or
regulation.
View original
content:http://www.prnewswire.com/news-releases/truist-announces-increased-capital-flexibility-for-2021-301198308.html
SOURCE Truist Financial Corporation
