How Mike Lyons, Truist's new CEO, is plotting a turnaround

Key Points:

• Truist CEO Mike Lyons, who took over last month, announced leadership changes and strategic shifts aimed at improving the bank's performance and shareholder returns, emphasizing a focus on core businesses and higher-return areas.
• Lyons acknowledged Truist's underperformance since its 2017 merger and outlined plans to simplify operations, including selling noncore assets like the LightStream unsecured lending platform to repay borrowings.
• The bank is conducting a detailed strategic review of its businesses, expecting to reveal results in early 2027, with a goal to achieve a 15% return on tangible common equity next year and 16%-18% over the long term.
• New hires include former Bank of America executives to lead consumer and small-business banking, replacing the previous head who will depart at year-end, signaling a push for greater accountability and growth in these segments.
• Truist's recent third-quarter results showed a net income decline due to securities losses and portfolio sales, with earnings per share missing analyst estimates, highlighting the challenges Lyons faces in turning around the bank's financial performance over multiple years.