Key insight: Truist Financial is no longer originating marine and recreational vehicle loans, and it has significantly reduced originations in other books, including indirect auto lending. – What’s at stake: The remix, which comes ahead of a CEO transition, is Truist’s latest…
fort to improve profitability and efficiency. – Forward look: Observers will be watching to see what changes are in store under incoming CEO Mike Lyons, who takes over on Sept. 1. Three months after setting higher profitability targets, Truist Financial said it has begun taking steps to wind down certain consumer loan portfolios — moves that will have a negative near-term impact, but should ultimately lead to deeper customer relationships and higher returns
During the second quarter, the $556 billion-asset bank stopped originating loans for marine and recreational vehicles and “significantly reduced originations in several other less strategic and less profitable consumer lending units,” including prime and non-prime indirect auto lending, Chief Financial Officer Mike Maguire said Friday during the bank’s quarterly earnings call. The move comes ahead of a major leadership transition at Charlotte, North Carolina-based Truist. Mike Lyons, a 30-year industry veteran who previously served as president of PNC Financial Services Group, will take over as Truist’s CEO on Sept. 1.
Bill Rogers, Truist’s CEO since 2021, will become executive chairman of the board, with a planned retirement date of April 2027. The switch marks the first time Truist will be led by an outsider since it was formed in 2019 through a merger of equals between two Southeast regionals, BB&T and SunTrust Banks. Since the merger, Truist has struggled to fulfill some of the financial expectations it established at the outset. “Over the last several quarters, we’ve been clear about the actions we’re taking to drive stronger returns, improve efficiency and allocate capital to the highest-value opportunities across the company,”…