Truist reported a 3.6% year-over-year increase in average deposits, largely driven by wholesale clients. The bank's total cost of deposits rose by three basis points to 1.59% sequentially. Meanwhile, consumer and small business deposits saw a modest growth of 1.2% compared to the previous year.
CEO Mike Lyons announced a strategic shift to capture a larger share of primary banking relationships. The bank plans to increase investments in mobile banking, payments, credit card platforms, and branch networks. Conversely, Truist is scaling back on national, single-product lending businesses to focus on core relationships.
Digital adoption continues to climb, with digital transactions accounting for 71% of consumer and small business activity, an increase of 290 basis points over the year. Card spending reached $32 billion, up 4.5% year-over-year, while Truist Assist chat volume grew by 54% to 2 million interactions.
The bank is targeting growth in treasury management and small business services, areas where management believes it is currently underpenetrated. Truist aims to accelerate the growth of new checking accounts as a primary metric for the success of its current deposit-focused strategy.
