Truist Financial is simplifying its operations through ongoing restructuring efforts, affecting headcount, footprint and innovation.  

Costs associated with the restructuring are expected to reach $225 million, or more than 30% of the bank’s savings goal of $750 million for the year, Chief Financial Officer Mike Maguire said today during Truist’s fourth-quarter 2023 earnings call. “We have incurred around $200 million of charges related to the program, mostly driven by reductions in force in the facilities-related decisions.” 

During the quarter, Truist reduced its branch footprint 5.7% year over year to 2,001 branches, according to the bank’s earnings presentation. Additionally, headcount fell 5.7% YoY to 50,905. 

“In addition to lowering headcount and simplifying our organization, we also re-examined our technology investment spend,” Chief Executive Bill Rogers said during the earnings call. “Through this process, we have rationalized, rescoped or delayed the start of a number of projects primarily in noncore areas.” 

BIGGER PICTURE: Truist’s restructuring is an ongoing effort: 

• In October, the bank closed its Foundry unit, which led the financial institution’s skunkworks ventures. 
• In November, the bank appointed three new executives — chief operating officer, chief consumer and small business banking officer, and chief wholesale banking officer. 

BY THE NUMBERS: In Q4, Truist reported: 

• Revenue of $5.8 billion, down 8% YoY;  
• Net interest income of $3.6 billion, down 11% YoY; and 
• Equipment expenses of $124 million, down 11% YoY. 

NOTEWORTHY: Truist saw an increase in digital banking channel adoption during the quarter, Rogers said.  

“During the fourth quarter, we acquired more than 114,000 accounts through our digital channel, including 33,000 new to Truist,” he said. 

In Q4, the number of mobile banking users increased to 4.9 million, up 9% YoY, while Truist’s digital transactions (including Zelle, Automated Clearing House and mobile deposits) increased by 13% YoY to 75 million, according to the bank’s earnings presentation. 

Digital adoption also ticked up at Bank of America and Wells Fargo during the quarter. 

FLASHBACK: Truist’s chatbot, Truist Assist, which employs AI, was launched in 2022 and has a significant adoption rate among customers, with 85% of customer queries are happening through the chatbot, according to the bank’s earnings report. 

The chatbot can understand 160 customer inquiries and the bank expects the chatbot to provide solutions to the majority of consumer requests in 2024 as its self-service capabilities attract more customers and it continues to drive operational efficiencies, according to the bank’s earnings report. 

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