Truist Financial increased its non-interest expenses in the fourth quarter of 2022 as minimum wage increased and the bank invested in technology, acquisitions, revenue-generating business and call center staff.

The $548 billion bank’s adjusted non-interest expenses grew 8% year over year to $3.4 billion, according to its Q4 earnings presentation.

WHY IT MATTERS: Although expenses grew in Q4, Truist is working toward cost savings in other areas, Chief Financial Officer Mike Maguire said during today’s Q4 earnings call. “We continue to focus on generating expense reductions in certain areas to fund longer-term investments in talent and technology and to generate ongoing operating leverage,” he said.

THE BIGGER PICTURE: Truist completed several innovation projects, product launches and acquisitions in 2022, Chief Executive Bill Rogers said during the call, noting, “Our digital and technology team successfully completed the largest bank merger in 15 years, decommissioned three data centers, successfully piloted a new deposit product on a next-gen real-time cloud-based core, enhanced credit decisioning and underwriting across certain consumer lending platforms, upgraded our contact center technology stack, and completed a 5G network and branch WiFi pilot program.”

BY THE NUMBERS: Truist posted for Q4:

• Revenue grew 11.9% YoY to $6.3 billion;
• Mobile app users climbed 3% YoY to 4.38 million; and
• Digital transactions increased 13% YoY to 65.7 million.

NOTEWORTHY: The bank’s Innovation and Technology Center, which opened in 2022, brought several new innovations to completion, according to Rogers. For example, in December the bank added a Truist One checking account that features a deposit-based line of credit up to $750, Rogers said.

“Our ability to innovate at the intersection of touch and technology was greatly enhanced by the opening of our new Innovation and Technology Center, which brings our cross-functional teams together with clients and large tech companies to reimagine banking experiences for everyone,” he said.

FLASHBACK: In 2022, Truist launched the following products:

• AI-enhanced virtual assistant Truist Assist;
• Digital investment and automated planning and goal-setting tool Truist Invest Pro; and
• Self-directed investing solution Truist Trade.

FUTURE LOOK: 2023 will be the bank’s first full year as Truist, with no integration activity left to complete, Roger said. Truist was formed by the 2019 merger of BB&T and SunTrust banks.

This year’s priorities will shift to “core execution to actualize Truist and our purpose, harvesting [integrated risk management] opportunities, continuing to digitize and automate our process and operations, and maintaining a strong profitable profile,” he added.

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Truist’s Chief Information Officer Bryce Elliott and Head of Truist Foundry Lindsay Holden will speak at the Bank Automation Summit US 2023 on March 2-3 in Charlotte, N.C. Learn more and register for Bank Automation Summit US 2023.