Truist Financial Corp: CEO Change: Sooner Than Expected But Not a Surprise; New CEO Experienced Bank Executive

Research evidence excerpt

Truist Financial Corp: CEO Change: Sooner Than Expected But Not a Surprise; New CEO Experienced Bank Executive

J P M O R G A N North America Equity Research

16 June 2026

Truist Financial Corp Neutral

TFC, TFC US

CEO Change: Sooner Than Expected But Not a Price (15 Jun 26):$48.48

Surprise; New CEO Experienced Bank Executive

Banks — Large-Cap

Truist announced that CEO Bill Rogers is moving on to become Chairman until Vivek Juneja AC

April 2027, and Mike Lyons will become the CEO. This change is not surprising (1-212) 622-6465

given Truist’s lagging stock price as reflected in its valuation - Truist was trading vivek.juneja@jpmorgan.com

at 1.3x P/TBV (ex-OCI) at close of June 12, the lowest in our regional peer group Andrew J Dietrich

which are trading at 1.7x-2.1x. Truist stock has lagged our regional peers, up 5% (1-212) 622-4244

YTD versus average YTD increase of 12.2% at those peers. aj.dietrich@jpmorgan.com

Sai M Nettem

Bill Rogers has been a shareholder-focused CEO since his days at SunTrust and has (1-212) 622-2666

sai.nettem@jpmorgan.com

worked hard to turn around Truist since he became CEO - he was left in a very J.P. Morgan Securities LLC

challenging situation by the previous CEO. Truist has been building a fee income

source, investment banking and trading, and set a new medium-term RoTCE target

but with the recent pressures on net interest income, there has been lack of investor

confidence in this target.

Truist stock is down on the management change due to a couple of concerns: the

new CEO may lower the medium-term RoTCE target and that Truist will not be a

takeover candidate. In our view, the stock has certainly not been trading at the new

RoTCE target or with any takeover premium. Hence, any reduction in RoTCE