Truist Financial Corporation (TFC): history, ownership, mission, how it works & makes money (2024)

A Brief History of Truist Financial Corporation (TFC)

Truist Financial Corporation (TFC) is the result of a significant merger in the banking industry, combining the strengths of two major financial institutions. This merger has shaped Truist into one of the largest and most prominent banking organizations in the United States.

Truist Financial Corporation was formed on December 6, 2019, through the merger of BB&T Corporation and SunTrust Banks, Inc. This merger, valued at approximately $66 billion, was one of the largest bank mergers in history, creating a financial giant with a substantial presence across the country.

• BB&T, originally known as Branch Banking and Trust Company, was founded in 1872 in Wilson, North Carolina.
• BB&T grew over the decades through a series of strategic acquisitions and expansions, becoming a major player in the banking industry.
• At the time of the merger, BB&T was one of the largest financial services holding companies in the United States.

• SunTrust was established as Trust Company of Georgia in 1891 in Atlanta, Georgia.
• SunTrust expanded through numerous mergers and acquisitions, establishing itself as a significant banking institution.
• Prior to the merger, SunTrust operated an extensive network of branches and held a substantial market share in the southeastern United States.

The combination of BB&T and SunTrust brought together two institutions with deep regional roots and complementary strengths. Following the merger, the new entity adopted the name Truist Financial Corporation, branding itself to reflect its fresh identity and vision.

• Truist aims to leverage technology and innovation to provide enhanced financial services and solutions to its clients.
• The merger was intended to achieve operational efficiencies, cost savings, and increased shareholder value.
• Truist is committed to community involvement, emphasizing corporate responsibility and community development initiatives.

Today, Truist Financial Corporation operates an extensive network of branches and offers a wide range of financial services, including commercial and retail banking, asset management, mortgage, and insurance products. The company's headquarters is located in Charlotte, North Carolina.

Who Owns Truist Financial Corporation (TFC)

Truist Financial Corporation (TFC) is a prominent financial services company that emerged from the merger of BB&T and SunTrust Banks in December 2019. Ownership of TFC is distributed among a variety of institutional and individual investors. Here is a detailed look at the major shareholders:

• Institutional Investors: A significant portion of TFC's shares are held by institutional investors, including mutual funds, pension funds, and other large financial entities. These organizations typically manage large portfolios and invest considerable sums of money across various industries.
• Vanguard Group: Vanguard is one of the largest shareholders, holding a substantial percentage of TFC's stock. The investment management company is widely known for its index funds and ETFs.
• BlackRock, Inc.: BlackRock is another significant institutional investor in TFC. Renowned for its comprehensive range of investment services, BlackRock manages one of the largest pools of assets in the world.
• State Street Corporation: State Street is also a major shareholder. The financial services company is known for offering investment management, research, and advisory services.
• Individual Investors: Beyond institutional ownership, a portion of TFC's shares are held by individual investors, including retail investors and company insiders like executives and board members.

These major shareholders influence the direction and decisions of Truist Financial Corporation through their significant voting power and investment interests.

Truist Financial Corporation (TFC) Mission Statement

Truist Financial Corporation (TFC) strives to build a better future for its clients, teammates, and communities. At the heart of Truist’s operations is a commitment to inspire and build better lives and communities. This mission is driven by a focus on creating a positive impact through dedicated service, robust financial solutions, and community involvement.

Truist’s mission can be understood through several key objectives:

• Client Focus: Truist is dedicated to understanding and addressing the unique financial needs of its diverse clientele. The organization's goal is to help clients achieve financial confidence and well-being.
• Teammate Engagement: The company values its employees and fosters an inclusive work environment where team members can thrive, grow, and deliver exceptional service.
• Community Commitment: Truist is committed to making a lasting difference in the communities it serves. This includes investing in local initiatives and supporting economic empowerment.
• Innovation and Technology: Embracing cutting-edge technology and innovative solutions to enhance the client experience and provide efficient, effective financial services.
• Integrity and Responsibility: Upholding high ethical standards, transparency, and accountability in all aspects of the business.

Through these guiding principles, Truist aims to create a trustworthy and enriching financial institution that empowers individuals and communities to achieve and sustain prosperity.

How Truist Financial Corporation (TFC) Works

Truist Financial Corporation (TFC) is a prominent financial services company in the United States. Formed through the merger of BB&T and SunTrust Banks, Truist operates as one of the largest banking organizations in the country, with a diverse range of financial products and services. Here's a closer look at how Truist functions:

Truist offers a comprehensive array of financial services to meet the needs of individuals, businesses, and institutions. These services include:

• Retail Banking: Truist provides traditional banking services such as checking and savings accounts, personal loans, mortgages, and credit cards. The company aims to deliver a personalized customer experience through its extensive branch network and advanced digital banking platforms.
• Commercial Banking: Truist supports businesses of all sizes with commercial loans, treasury management, merchant services, and other tailored financial solutions. The bank leverages its expertise to help businesses grow and manage their finances efficiently.
• Wealth Management: Truist's wealth management division offers investment advisory, financial planning, trust, and estate services. The bank focuses on helping clients achieve their financial goals through customized strategies and professional guidance.
• Insurance Services: Through its subsidiary Truist Insurance Holdings, the company provides a wide range of insurance products, including property and casualty, life, health, and employee benefits solutions.

Truist is committed to leveraging technology and innovation to enhance the customer experience and streamline operations. The company invests significantly in digital banking platforms, mobile apps, and cybersecurity measures to provide secure and convenient banking solutions. Notable technological initiatives include:

• Online and Mobile Banking: Truist's digital platforms enable customers to manage their accounts, transfer funds, pay bills, and access a variety of financial services from their computers or mobile devices.
• AI and Data Analytics: The bank utilizes artificial intelligence and data analytics to gain insights into customer behavior, improve risk management, and optimize service delivery.
• Fintech Partnerships: Truist collaborates with fintech companies to integrate innovative solutions and enhance its product offerings, ensuring it stays competitive in the rapidly evolving financial landscape.

Truist places a strong emphasis on corporate social responsibility, focusing on initiatives that benefit its communities and promote sustainable growth. Key areas of focus include:

• Community Development: Truist supports community development through charitable contributions, volunteerism, and partnerships with local organizations. The company aims to address critical needs such as affordable housing, education, and economic development.
• Diversity and Inclusion: Truist is committed to fostering a diverse and inclusive workplace. The bank implements policies and programs that promote diversity and ensure equal opportunities for all employees.
• Environmental Sustainability: The bank actively works to reduce its environmental footprint by implementing energy-efficient practices, investing in renewable energy, and promoting sustainability initiatives.

How Truist Financial Corporation (TFC) Makes Money

Truist Financial Corporation (TFC) is a prominent American bank holding company formed through the merger of BB&T and SunTrust Banks. The company operates in various segments of the financial services industry, generating revenue through multiple channels. Below is an examination of how Truist Financial Corporation makes money:

• Interest Income: Truist earns a significant portion of its revenue from interest on loans and securities. The bank offers a variety of loan products including commercial loans, residential mortgages, and consumer loans. The interest payments made by borrowers contribute substantially to Truist's revenue.
• Non-Interest Income: Truist also generates revenue from sources other than interest. This includes fees and service charges from deposit accounts, treasury management services, and card services. Wealth management and investment banking services contribute to this segment as well.
• Mortgage Banking: The company provides mortgage banking services, including the origination and servicing of mortgage loans. Fees associated with these services, along with gains from the sale of these loans, contribute to the company's income.
• Investment Services: Truist offers investment advisory and brokerage services. Commissions, fees, and asset management fees associated with these services add to its revenue stream.
• Insurance Products: Truist sells various insurance products, including life, health, and property insurance. The premiums and commissions earned from selling these insurance products contribute to the company's overall revenue.
• Trading and Investment Gains: Another source of income for Truist is trading and investment gains, which come from buying and selling securities. This includes income from trading in the equity, fixed income, and derivative markets.

Through a diversified portfolio of financial products and services, Truist Financial Corporation maintains a strong revenue stream, ensuring its stability and growth in the competitive financial services industry.