XML 37 R25.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Operating Segments
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Operating Segments Operating Segments
Effective January 1, 2024, several business activities were realigned reflecting updates to the Company’s operating structure. First, the CB&W segment was renamed CSBB and the C&CB segment was renamed WB. Second, the Wealth business was realigned into the WB segment from the CSBB segment, representing a separate reporting unit in that segment. Third, the small business banking client segmentation was realigned into the CSBB segment from the WB segment.

Following the segment realignment, Truist operates and measures business activity across two segments: CSBB and WB, with functional activities included in OT&C. The Company’s business segment structure is based on the manner in which financial information is evaluated by management as well as the products and services provided or the type of client served.

On February 20, 2024, the Company entered into an agreement to sell the remaining stake of the common equity in TIH to an investor group, representing substantially all of the Company’s IH segment, which represented a material strategic shift for the Company, and as a result, the Company recast results for all periods presented under the discontinued operations basis of presentation. On May 6, 2024, the Company completed the sale of its remaining equity interests in TIH. TIH was the principal legal entity of the IH segment. As the operations of TIH were included in discontinued operations prior to the sale of TIH, the Company no longer presents the IH segment as one of its reportable segments. Refer to “Note 2. Discontinued Operations” for additional information related to discontinued operations.
Consumer and Small Business Banking

CSBB serves consumer and small business clients, providing deposits and payment services, credit cards, loans, and mortgages through an extensive network of branches, ATMs, digital channels, contact centers, and other channels. Lending solutions include personal and unsecured loans originated through the branch network and digital channels; indirect lending services providing a comprehensive set of technology-enabled consumer lending solutions including point-of-sale offerings for autos, recreational vehicles, outdoor power sports, equipment, and home improvement; and real estate lending providing residential mortgages through its retail, direct, and correspondent channels, with the loans either sold in the secondary market, typically with servicing rights retained, or held in the Company’s loan portfolio, and home equity loans delivered through the branch network. CSBB also serves as an entry point for clients to access services from other businesses.

Wholesale Banking

WB segment delivers a comprehensive suite of tailored solutions with specialized product and industry expertise delivered through local coverage of corporate, commercial, and real estate clients combined with national coverage from investment banking and commercial real estate businesses. This segment is focused on providing core banking, cash management, payments, specialized lending, investment banking, capital markets, strategic advisory, and market-making. In addition to the services provided by Truist’s SEC registered investment advisors, Truist’s wealth professionals provide asset management, trust, brokerage, and investment-related services, institutional investment management, full-service, and online/discount brokerage products, family office services, as well as other wealth management disciplines.
Other, Treasury & Corporate

OT&C includes management of the Company’s investment securities portfolio, long-term debt, derivative instruments used for balance sheet hedging, short-term liquidity and funding activities, balance sheet risk management and most real estate assets, as well as the Company’s functional activities such as finance, enterprise risk, legal, and enterprise technology and management, among others. Additionally, OT&C houses intercompany eliminations, including intersegment net referral fees and residual interest rate risk.

Truist promotes revenue growth through the Company’s Integrated Relationship Management approach, which is designed to deepen client relationships and bring the full breadth and depth of Truist’s products and services to meet clients’ financial needs. The objective is to provide Truist’s entire suite of products to its clients with the end goal of providing clients the best financial experience in the marketplace. Revenues of certain products and services are reflected in the results of the segment providing those products and services and are also allocated to CSBB and WB. These allocated revenues between segments are reflected as net referral fees in noninterest income and eliminated in OT&C.

The segment results are presented based on internal management methodologies that were designed to support these strategic objectives. Unlike financial accounting, there is no comprehensive authoritative body of guidance for management accounting equivalent to GAAP. The performance of the segments is not comparable with Truist’s consolidated results or with similar information presented by any other financial institution. Additionally, because of the interrelationships between the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities.

Because business segment results are presented based on management accounting practices, the transition to the consolidated results prepared under U.S. GAAP creates certain differences, which are reflected as residuals in OT&C. Business segment reporting conventions include, but are not limited to, the items as detailed below.

Segment net interest income reflects matched maturity funds transfer pricing, which ascribes credits or charges based on the economic value or cost created by assets and liabilities of each segment. Residual differences between these credits and charges are captured in OT&C.

Noninterest income includes inter-segment referral fees, as well as federal and state tax credits that are grossed up on a pre-tax equivalent basis, related primarily to certain community development investments. Recoveries for these allocations are reported in OT&C.

Corporate expense allocations, including overhead or functional expenses that are not directly charged to the segments, are allocated to segments based on various drivers (number of FTEs, number of accounts, loan balances, net revenue, etc.). Recoveries for these allocations are reported in OT&C.

Provision for credit losses represents net charge-offs by segment combined with an allocation to the segments for the provision attributable to each segment’s quarterly change in the ALLL. Provision for income taxes is calculated using a blended income tax rate for each segment and includes reversals of the noninterest income tax adjustments described above. The difference between the calculated provision for income taxes at the segment level and the consolidated provision for income taxes is reported in OT&C.

The application and development of management reporting methodologies is an active process and undergoes periodic enhancements. The implementation of these enhancements to the internal management reporting methodology may materially affect the results disclosed for each segment, with no impact on consolidated results. When significant changes to management reporting methodologies take place, the impact of these changes is quantified and prior period information is revised as practicable.
The following table presents results by segment:
Three Months Ended June 30,
(Dollars in millions)		CSBBWB
OT&C(1)
Total
20242023202420232024202320242023
Net interest income (expense)$1,286 $1,544 $2,187 $2,329 $54 $(270)$3,527 $3,603 
Net intersegment interest income (expense)1,342 1,082 (497)(562)(845)(520)— — 
Segment net interest income2,628 2,626 1,690 1,767 (791)(790)3,527 3,603 
Allocated provision for credit losses309 227 142 309 — 2 451 538 
Segment net interest income after provision2,319 2,399 1,548 1,458 (791)(792)3,076 3,065 
Noninterest income507 514 991 891 (6,710)(25)(5,212)1,380 
Amortization of intangibles45 53 41 46 3 — 89 99 
Other noninterest expense1,600 1,563 1,307 1,251 98 133 3,005 2,947 
Income (loss) before income taxes from continuing operations1,181 1,297 1,191 1,052 (7,602)(950)(5,230)1,399 
Provision (benefit) for income taxes283 309 237 203 (1,844)(282)(1,324)230 
Segment net income (loss) from continuing operations$898 $988 $954 $849 $(5,758)$(668)$(3,906)$1,169 
Identifiable assets (period end) of continuing operations$143,857 $155,760 $207,946 $216,220 $168,050 $174,517 $519,853 $546,497 
Six Months Ended June 30,
(Dollars in millions)		CSBBWB
OT&C(1)
Total
20242023202420232024202320242023
Net interest income (expense)$2,550 $3,234 $4,421 $4,550 $(72)$(314)$6,899 $7,470 
Net intersegment interest income (expense)2,681 2,082 (1,044)(946)(1,637)(1,136)— — 
Segment net interest income5,231 5,316 3,377 3,604 (1,709)(1,450)6,899 7,470 
Allocated provision for credit losses612 497 340 544 (1)(1)951 1,040 
Segment net interest income after provision4,619 4,819 3,037 3,060 (1,708)(1,449)5,948 6,430 
Noninterest income1,010 1,068 1,974 1,840 (6,750)(107)(3,766)2,801 
Amortization of intangibles91 106 83 93 3 — 177 199 
Other noninterest expense3,199 3,136 2,639 2,509 32 217 5,870 5,862 
Income (loss) before income taxes from continuing operations2,339 2,645 2,289 2,298 (8,493)(1,773)(3,865)3,170 
Provision (benefit) for income taxes562 629 451 463 (2,105)(501)(1,092)591 
Segment net income (loss) from continuing operations$1,777 $2,016 $1,838 $1,835 $(6,388)$(1,272)$(2,773)$2,579 
Identifiable assets (period end) of continuing operations$143,857 $155,760 $207,946 $216,220 $168,050 $174,517 $519,853 $546,497 
(1)Includes financial data from business units below the quantitative and qualitative thresholds requiring disclosure.