Truist Financial (TFC) risk factors, 2025 10-K

Market Risks

1. 01The levels of or changes in interest rates could adversely affect our results of operations and financial condition
2. 02The Company’s hedging strategies may not be successful in mitigating our interest rate, foreign exchange, and market risks, which could adversely affect our financial results
3. 03Changes in monetary, fiscal, and other policies, and changes in the U.S. political environment, could adversely affect us
4. 04Financial results, lending, and other business activities could be adversely affected by weak or deteriorating economic conditions
5. 05Geopolitical conditions, the outbreak or escalation of hostilities, acts or threats of terrorism, and related volatility and instability in global economic and market conditions could adversely affect us
6. 06The Company is subject to credit risk, and the Company’s allowance for credit losses may not be adequate to cover realized and future losses
7. 07The Company could have more credit risk and higher credit losses if our underwriting standards and practices are inadequate, we adopt more liberal underwriting standards for competitive or other reasons, or our concentration and other risk limits are not well calibrated
8. 08The Company may suffer losses if the value of collateral declines in weak, deteriorating, or stressed economic or market conditions
9. 09Our inability to retain and grow deposits or a change in deposit costs or mix could negatively impact our funding strategy and financial results
10. 10Truist’s liquidity could be impaired by an inability to access short-term funding, an unforeseen outflow of cash, or an inability to monetize liquid assets
11. 11A disruption in our access to the mortgage secondary market and GSEs for liquidity could negatively affect us
12. 12The Company’s cost of funding or access to the banking and capital markets could be adversely affected if our credit ratings are downgraded or otherwise fail to meet investor expectations
13. 13The Parent Company could have less access to funding sources and its liquidity could be constrained if the Bank becomes unable to pay dividends
14. 14The financial system is highly interrelated, and financial or systemic shocks or the failure of even a single financial institution or other participant in the financial system could adversely impact us

Technology Risks

1. 1526 Truist Financial Corporation
2. 16Truist is heavily reliant on technology, and a failure to effectively anticipate, develop, and implement new technology could negatively impact our financial results, business, operations, or security
3. 17The Company faces risks associated with the quality, availability, and retention of key data for operational, strategic, regulatory, and compliance purposes
4. 18Truist Financial Corporation 27

Other External Risks

1. 19Physical, transition, and other risks associated with climate change, together with governmental responses to them, may negatively impact our business, operations, reputation, and clients
2. 20The Company is at risk of increased losses from fraud
3. 21Natural disasters, pandemics, and other catastrophic events could adversely impact us
4. 22Truist is subject to extensive and evolving government regulation and supervision, which could adversely affect our business, financial condition, results of operations, and prospects
5. 2330 Truist Financial Corporation
6. 24Regulatory capital and liquidity standards and future revisions to them may negatively impact our business and financial results
7. 25Truist Financial Corporation 31
8. 26In addition to the regulatory capital and liquidity requirements applicable to Truist and Truist Bank, the Company’s broker-dealer subsidiaries are subject to capital requirements established by the SEC
9. 27Truist is subject to risks related to originating and selling loans, including repurchase and indemnification obligations
10. 28Truist faces risks as a servicer of loans
11. 2932 Truist Financial Corporation
12. 30Truist faces substantial risks in safeguarding personal and other sensitive information
13. 31Differences in regulation and supervision can affect the Company’s ability to compete effectively

Regulatory and Legal Risks

1. 32The Company may incur damages, fines, penalties, and other negative consequences from past, current, or future supervisory actions and regulatory or other legal violations, including inadvertent or unintentional violations
2. 33Pending or threatened legal proceedings and other matters may adversely affect the Company’s business, financial condition, results of operations, and reputation
3. 3434 Truist Financial Corporation

Strategic Risks

1. 35Ineffective execution of strategic initiatives could adversely affect investor sentiment and our business and financial results
2. 36Competition may reduce Truist’s client base or cause Truist to modify the pricing or other terms for products and services, which could have an adverse impact on our business and financial results
3. 37Acquisitions, mergers, and divestitures introduce a broad range of anticipated and unanticipated risks, including unforeseen or negative consequences from supervisory or regulatory action that may limit Truist’s ability to pursue and complete them
4. 38Truist has businesses other than banking that are subject to a variety of risks
5. 39Negative public opinion, whether real or perceived, or our failure to successfully manage it could damage the Company’s reputation and adversely impact our business, financial condition, results of operations, and prospects
6. 40We could be harmed by an inability to attract, develop, retain, and motivate qualified teammates while effectively managing recruiting and compensation costs amid highly competitive and rapidly changing market conditions
7. 41The Company’s operations rely on its ability, and the ability of key external parties, to maintain appropriately staffed workforces and on the competence, trustworthiness, health, and safety of teammates

Risks Related to Estimates and Assumptions

1. 42Our business and operations make extensive use of models, and we could be adversely affected if our design, implementation, or use of models is flawed
2. 43We use estimates and assumptions in determining the value or amount of many of our assets and liabilities, and our business, financial condition, results of operations, and prospects could be adversely affected if these prove to be incorrect
3. 44Depressed market values for the Company’s stock and adverse economic conditions sustained over a period of time may require the Company to write down all or some portion of the Company’s goodwill

Operational Risks

1. 45Truist relies extensively on third parties to provide key components of the Company’s business infrastructure, and their failure to perform to our standards or our failure to appropriately assess and manage these relationships could adversely affect us
2. 46The Company’s risk management framework may fail to identify and manage the risks that we face
3. 47In deciding whether to extend credit or enter into other transactions with clients and counterparties, Truist depends on the accuracy and completeness of information about clients and counterparties, and Truist could be negatively impacted if the information is not accurate or complete
4. 48Truist can be negatively affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services, and delivery platforms