Dive Brief:
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Truist reported profit of $1.1 billion Thursday for the quarter ending Sept. 30, up 45.3% from 2019's third quarter, as the newly merged bank continues to cut jobs and close branches as a result of the combination of BB&T and SunTrust.
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The Charlotte, North Carolina-based bank cut 769 jobs during the third quarter and plans to close 104 branches in December and January, it said Thursday.
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Like its peers JPMorgan Chase, Wells Fargo and Bank of America, Truist significantly decreased its provisions for bad loans during the quarter, setting aside $421 million, compared with $844 million and $893 million in the previous two quarters.
Dive Insight:
Truist said it's still on target to achieve $1.6 billion in cost savings by 2022 as a result of the tie-up between BB&T and SunTrust, approved last November.
In addition to the 104 branches it plans to close in December and January, Daryl Bible, Truist’s chief financial officer, told analysts Thursday the bank plans to pick up the pace regarding branch consolidation in 2021.
Ahead of the merger last year, BB&T and SunTrust said the combination would result in 740 branches located within two miles of one another.
Truist CEO Kelly King said the coronavirus pandemic has made the bank take a cautious approach regarding branch closures, as bank branches across the country have had to adjust to social-distancing restrictions.
"Once we get the branches back to normal, and our service capabilities are normal, then we will be more aggressive in terms of closing, because we have a large number of branches that are literally sharing a parking lot," King told analysts.
King also gave an update on the bank’s progress regarding its systems integration project.
"In August, we completed the conversion of Truist Securities, integrating the corporate and investment banking businesses of BB&T and SunTrust," he said in a statement. "We were pleased with this very successful major client-facing systems conversion."
Truist’s most recent job cuts put the bank’s company-wide workforce at about 55,000 as of Sept. 30, according to the Winston-Salem Journal.
In addition to the 769 jobs it cut in the third quarter, the bank eliminated 735 jobs in the second quarter, and 800 to 1,000 jobs in the first, the publication reported.
