Truist Blends Innovation With Operational Stability and Digital Efficiency

Truist Financial ’s fourth-quarter and full-year 2024 earnings results, reported Friday (Jan. 17), provide a snapshot of a company seeking to grapple with digital disruption and evolving consumer expectations in modern banking.

“2024 was an important year for Truist,” Truist Chairman and CEO Bill Rogers told investors on Friday’s earnings call . “We added new clients and deepened existing relationships, invested in our core banking business, made enhancements to our technology and risk infrastructure, and maintained our credit and expense discipline.”

“We executed on several important strategic initiatives, including the sale of Truist Insurance Holdings and the repositioning of our balance sheet,” he added. “These actions increased our capital and further enhanced our ability to support the growth needs of clients, while also returning capital to shareholders.”

Truist’s adjusted noninterest expenses rose 4% quarter-over-quarter, primarily driven by higher professional fees and technology-related costs, according to an earnings presentation . Yet, the company’s approach to expense management helped achieve a year-over-year reduction in adjusted expenses by 0.4%.

The bank beat analyst estimates for the quarter and issued Q1 2025 guidance that sent its stock up around 5% as of Friday morning.

Driving Performance in a Competitive Digital Landscape

Executives stressed to investors that Truist’s focus on technology extends beyond internal infrastructure. The bank unveiled enhancements to its digital offerings for wholesale banking clients, such as electronic bill presentment, further aligning its product suite with evolving customer needs.

Truist’s results arrive as banks face increased competition from FinTech disruptors and a shifting regulatory environment. Yet, it delivered positive operating leverage, expanded its digital footprint and maintained financial stability.

The bank integrated technology into consumer and wholesale banking operations. Enhancements like Truist One View — a consolidated web and mobile app for business clients — help the bank simplify user experiences while providing actionable insights.

Meanwhile, Truist continued to strengthen its team with additional hiring in wholesale banking, according to the presentation.

Truist’s digital strategy is not only about meeting customer expectations but also about driving long-term growth through digital adoption and engagement. By the end of Q4 2024, the bank had over 5 million active mobile app users, a 1% increase from the prior quarter. These users averaged 18 log-ins per month, per the presentation.

Digital account production increased by 13% year-over-year, and Truist’s new household acquisition grew by 31%, the presentation showed. Much of this growth came from younger clients, with Generation Z accounting for a 68% year-over-year increase in consumer checking accounts. This demographic shift aligns with the bank’s strategy to cultivate long-term relationships with younger clients, particularly in its Premier segment.

Consumer deposit balances for digitally opened accounts grew 80% year-over-year, with 40% of these balances held by Gen Z and millennial clients, per the presentation.

Banking’s Future Lies in Strategic Investments and Cost Management

Truist faces headwinds common to the banking sector. Net interest income for the quarter decreased by 0.4% compared to Q3 2024, reflecting the impact of lower investment banking and trading income, according to a Thursday press release . Rising costs in professional fees and technology investments underscore the need to balance growth with cost efficiency in the coming quarters.

Looking ahead to 2025, Truist aims to further expand in high-growth markets and drive positive operating leverage, per the presentation. It is also focused on risk discipline and capital efficiency.