![]() ![]() Truist's second-quarter results were weaker than anticipated, according to several analysts. "The transaction will modestly hurt, but boost and balance sheet efficiency, exactly what we should be doing in an environment where cost of capital and funding has increased meaningfully," Rogers said. Proceeds from the sale were used to pay down wholesale funding, Rogers said. The company declined to identify the buyer of the student loan portfolio. It made a decision this spring to no longer sell or trade mortgage-backed securities and certain bonds, and executives said there could be further reductions in the mortgage business and the amount of real estate the company occupies. In April, it said that it would fold its online consumer lending platform, LightStream, into its broader consumer business, which would reduce the costs of operating a second brand. Truist has already been finding ways to lower expenses. ![]() To lower costs, the company is "actively working to identify and accelerate" certain cost-reduction actions that could be implemented over the next 12 to 18 months, including "taking a much more aggressive approach" in personnel management, consolidating businesses, leveraging more technology and "optimizing" operations and contact centers, Chief Financial Officer Michael Maguire said on the call. ![]() Truist's balance-sheet remix is one part of an enterprise-wide effort to reduce expenses, increase efficiency, build more capital and simplify operations, executives said Thursday.Įxpense reduction is a large component of that plan. Cleveland-based Ke圜orp, the parent company of KeyBank, will shrink its balance sheet by eliminating so-called "standalone loans." Synovus Financial in Columbus, Georgia, said that it will sell a $1.3 billion medical office loan portfolio and use the proceeds to pay down higher-cost funding. Truist was one of a few banks that announced strategic business moves Thursday. At the same time, the $554 billion-asset company will "evaluate ways to increase the velocity overall" of its balance sheet, Rogers added. This article was generated by Benzinga's automated content engine and was reviewed by an editor."Going forward, we'll continue to better focus our balance sheet on Truist clients who have broader relationships while limiting our exposure to single-product and indirect clients," CEO Bill Rogers told analysts during the call. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.Īccording to Benzinga Pro, Truist Finl's peer group average for short interest as a percentage of float is 5.30%, which means the company has less short interest than most of its peers.ĭid you know that increasing short interest can actually be bullish for a stock? This post by Benzinga Money explains how you can profit from it. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. ![]() Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. Comparing Truist Finl's Short Interest Against Its Peers This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted. As you can see from the chart above the percentage of shares that are sold short for Truist Finl has declined since its last report. ![]()
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