Reports indicate that Truist Financial (TFC:NYE) will cease transacting mortgage-backed securities (MBS), government agency bonds, and Small Business Administration bonds in January 2024. In conjunction with these adjustments, the bank has eliminated approximately 80 positions across its Atlanta and Memphis offices. Truist, along with Charles Schwab and US Bancorp, is a significant holder of agency MBS in mid-sized US financial institutions. However, as interest rates increased, the prices of these bonds declined, causing the bank to incur significant unrealized losses.
Recent financial turmoil caused by the collapse of Silicon Valley Bank and Signature Bank exacerbated the price decline. In addition, the trading sector has had to contend with challenging comparisons to the prior year, which benefited from the conflict between Russia and Ukraine. Bloomberg predicts that the trading revenue of the five largest Wall Street banks – JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs, and Morgan Stanley – will decrease by 10% to $29.9 billion in the first quarter of 2023.
Truist Stock Forecast:
JPMorgan and Citigroup are slated to disclose their first-quarter results on April 14, while Truist will do so on April 20. The current Stock Target Advisor rating for Truist stock is Buy. The average analyst price target is $49.60, indicating a potential upside of 40.25 percent. However, since the beginning of 2023, shares have decreased by 21.6%.
Truist Financial Corporation, a holding company, provides banking and trust services in the Southeastern and Mid-Atlantic United States. The company operates through three segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings.
Its deposit products include noninterest-bearing checking, interest-bearing checking, savings, and money market deposit accounts, as well as certificates of deposit and individual retirement accounts.
The company was formerly known as BB&T Corporation and changed its name to Truist Financial Corporation in December 2019. Truist Financial Corporation was founded in 1872 and is headquartered in Charlotte, North Carolina.