Truist CFO says now sees full year year-over-year revenue growth of 3%

Asked about what the company is seeing in the second quarter during the Morgan Stanley U.S. Financials, Payments and CRE Conference, Truist CFO Michael Maguire stated in part: “Yes, happy to. And at another industry conference in the last week or so, our CEO, Bill Rogers made a reference to some revenue pressure in the second quarter. Just to maybe put a finer point on that, as we sit here today, our expectation is that the top line revenue is likely to decline sort of in the 3% area during the quarter, and that’s largely driven by a lot of the factors you’ve heard us talk about so far this year. The remixing based on disintermediation of the (DDA) balances into higher yielding products, betas continue to perform a little worse than our expectations. Bill mentioned a week or so ago that on a sort of spot basis. So currently, we’re at around a 43% cumulative beta. Our expectation is sort of a mid- to high 40-betas in the cards. And so that’s taking a toll as well in the second quarter. And as we think about that and just as we’re giving guidance around Q2, I thought we’d also just check in and give you a sense for sort of the full year outlook on revenue as well. For a lot of the same factors, be it mix, be it pricing. And also, I think as we think about building a little bit of capital, being more disciplined around RWA, focus and pricing, and we’ll talk about some of the puts and takes there but a little bit more pressure on the top line for the full year as well. And so we had previously discussed sort of a 5% to 7% top line guide for the year. We’re probably looking around the 3% area for the full year as well. (…) Yes, 3% revenue growth year-over-year versus 5% to 7%.”