Truist Financial authorizes $5B stock buyback

Truist Financial Corporation released the results of its annual company-run stress test, conducted in accordance with the regulations of the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, under the Dodd-Frank Wall Street Reform and Consumer Protection Act. Truist announced that the Federal Reserve has determined the Company’s preliminary stress capital buffer (“SCB”) requirement is 2.8%. The Federal Reserve will provide the Company’s final SCB requirement on or before Aug. 31, 2024. Once finalized, the new SCB requirement will be in effect from Oct. 1, 2024 to Sept. 30, 2025. The new SCB requirement does not include the impact of the sale of Truist Insurance Holdings (“TIH”) or the balance sheet repositioning that occurred on May 6, 2024. Truist’s board of directors has authorized a $5 billion share repurchase program through 2026 as part of the Company’s overall capital distribution strategy, with share repurchases expected to begin during the third quarter of 2024. Truist plans to maintain its current quarterly common stock dividend of $0.52 per share, subject to approval by its board of directors.