Truist Bank expects to continue investing in technology to save money as it restructures. 

“We continue to see improvements in productivity due to investments in technology,” Chief Executive William Rogers said today during Truist’s first-quarter earnings call.  

In the short and medium term, the bank expects higher productivity through tech investments and, in the longer term, Truist expects to “save money and invest in our company,” Rogers said.

The $527 billion bank has seen client preferences pivot toward digital banking and is making tech advancements to provide a better customer experience, he said. 

Users of the bank’s mobile app increased 8% year over year to 4.8 million in Q1 while transactions via payments platform Zelle, increased 40% YoY to 28 million, according to the bank’s earnings report.  

“Recently, we rolled out a Zelle QR code widget where users can quickly access their QR codes from their home screens to seamlessly assess with bank transfers,” Rogers said. “Enhanced offerings coupled with strong growth and digital have resulted in higher retail digital client satisfaction scores.” 

The Charlotte, N.C.-based bank “expanded our digital user base and drove self-service transaction volume” as part of its digital innovation roadmap, he said. 

THE BIG PICTURE: Similar to its peers like Citizens Bank and Fifth Third Bank, Truist plans to modernize branches in key markets. 

“We’re encouraged by this increased productivity [due to investments made in tech] and we’ll look to make investments in branches and select key growth markets in 2025,” Rogers said. 

The bank reported 1,930 branches in Q1, down 3.5% YoY. 

BY THE NUMBERS: In Q1, Truist reported; 

• Net interest income of $3.4 billion, down 12% YoY;  
• Equipment expense of $88 million, down 13% YoY; 
• Digital transactions of 76 million, up 13% YoY; and 
• Revenue of $4.9 billion, down $1.3% YoY. 

NOTEWORTHY: Chief Information Officer Scott Case left the company this month as part of Truist’s restructuring, according to Bank Automation News’ prior reporting. 

According to BAN’s prior coverage, other tech leaders who have left the bank due to restructuring since October include 

• Chief Information Officer of Wholesale and Enterprise Functions Bryce Elliott, who left in December. He is now head of payment technology at JPMorgan Chase. 
• Chief Information and Experience Officer Ken Meyer, who left in October. He is now CIO of enterprise functions technology at Wells Fargo. 

FLASHBACK: During its Q4 earnings call on Jan. 18, Rogers said restructuring efforts could cost $225 million through 2024. It is expected to save the bank $750 million in the coming 12 to 18 months,  Chief Financial Officer Mike Maguire, said during the bank’s Q4 earnings call on Jan. 18. 

In October, the bank closed its Foundry unit, which led the FI’s skunkworks ventures, as the cost of the merger between SunTrust and BB&T, which created Truist, was higher than expected, Rogers said during the bank’s Q2 earnings in July 2023. 

FORWARD LOOK: Truist is seeing strong revenue generation from its investment banking arm, specifically from mergers and acquisitions and equity capital markets segment, he said. 

“M&A is a little less predictable, on a quarter-to-quarter basis, but I think as we look forward, in the short term, like next quarter, next couple of quarters,” there are M&A activities and deals in the pipeline, Rogers said.