What the changes say
- New risks emphasize AI errors, data-privacy restrictions, cybersecurity breaches, loan-servicing costs, and fintech competition.
What changed since the prior 10-K
New
- NewMarket Risks
Our financial results, the value of loans and debt securities we hold, and lending and other business activities have in the past, and may in the future, be adversely affected by weak or deteriorating economic conditions
Economic deterioration could reduce loan demand and increase charge-offs and credit-loss provisions across consumer, commercial, and real-estate borrowers.
- NewMarket Risks
Changes in interest rates have affected our net interest income and other financial results in the past and could in the future adversely affect us
Interest-rate changes could compress net interest income through yield-curve inversion, low asset yields, volatility, or changing spreads between rate indices.
- NewCredit Risks
Truist Financial Corporation 23
Poor underwriting, inaccurate client information, or concentrated exposures—including climate- or disaster-affected industries—could increase credit losses.
- NewTechnology and Data Risks
28 Truist Financial Corporation
Cybersecurity breaches affecting Truist or third parties could disrupt operations, expose funds and personal information, trigger fines, litigation, reimbursement costs, and reputational damage.
- NewTechnology and Data Risks
Truist Financial Corporation 29
Evolving U.S. and international privacy rules could restrict affiliate or third-party information sharing and increase compliance, litigation, and enforcement costs.
- NewTechnology and Data Risks
The use of AI in our products and services, as well as our business and the industry more broadly, may negatively impact our business, operations, financial condition, results of operations, prospects, and reputation
Flawed, biased, opaque, or inaccurate AI models and outputs could harm products, decisions, risk management, operations, and reputation.
- NewOperational Risks
The Company’s risk and control framework may fail to identify, assess, monitor, and mitigate the risks we face and cause us to suffer unexpected losses that could adversely affect our business, financial condition, results of operations, prospects, and reputation
Truist’s risk framework may miss evolving exposures because historical behavior and management judgment may not predict future risks.
- NewOperational Risks
Truist faces loan servicing risks that could adversely impact the Company’s business, operations, liquidity, and results of operations
Loan-servicing guideline or legal changes could raise costs, while uncollectible advances and broader obligations could hurt liquidity and results.
- NewCompliance, Regulatory, and Legal Risks
Truist Financial Corporation 33
Regulators can impose penalties, restitution, injunctions, or other actions for legal, safety-and-soundness, misconduct, or consumer-practice failures.
- NewCompliance, Regulatory, and Legal Risks
Regulatory capital and liquidity standards applicable to large banking organizations and future revisions to existing standards may negatively impact our business, financial results, financial condition, growth, profitability, or our ability to return capital to shareholders
Capital, leverage, LCR, NSFR, and future Basel-related requirements could constrain lending, growth, profitability, funding, and shareholder distributions.
- NewCompliance, Regulatory, and Legal Risks
Truist faces risks of non-compliance and may incur additional operational and compliance costs under laws relating to anti-money laundering, economic sanctions, embargo programs, anti-bribery, and anti-corruption
AML, sanctions, anti-bribery, and anti-corruption compliance is harder as digital assets, stablecoins, cryptocurrencies, and blockchain complicate monitoring and reporting.
- NewStrategic Risks
36 Truist Financial Corporation
Fintechs and other less-regulated companies may offer more convenient or cheaper bank-like products, taking Truist clients, deposits, and revenue.
- NewStrategic Risks
Truist Financial Corporation 37
- NewRisks Related to Estimates and Assumptions
Truist’s business and operations rely significantly on the use of models, and any deficiencies in the design, implementation, or use of models could adversely affect our business, results of operations, and financial condition
- NewRisks Related to Estimates and Assumptions
38 Truist Financial Corporation
- NewAdditional Risks
Negative public opinion, whether or not warranted, could damage the Company’s brand in the market and relationships with stakeholders, and adversely impact our business, financial condition, results of operations, and prospects
- NewAdditional Risks
Truist Financial Corporation 39
- NewAdditional Risks
Natural disasters, pandemics, extreme weather events, and other catastrophic events, as well as government actions or other restrictions in connection with such events, could adversely affect the Company’s financial condition and results of operations
Dropped
- DroppedMarket Risks
The levels of or changes in interest rates could adversely affect our results of operations and financial condition
Generic interest-rate changes affecting results and financial condition.
- DroppedMarket Risks
Financial results, lending, and other business activities could be adversely affected by weak or deteriorating economic conditions
- DroppedCredit Risks
The 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
- DroppedOther External Risks
Natural disasters, pandemics, and other catastrophic events could adversely impact us
Weak economic conditions harming financial results, lending, and other business activities.
- DroppedCompliance Risks
Regulatory capital and liquidity standards and future revisions to them may negatively impact our business and financial results
- DroppedCompliance Risks
In 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
- DroppedCompliance Risks
Truist faces risks as a servicer of loans
Credit losses from inadequate underwriting, liberal standards, concentration, or poorly calibrated limits.
- DroppedStrategic Risks
Acquisitions, 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
- DroppedReputational Risks
Negative 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
- DroppedRisks Related to Estimates and Assumptions
Our business and operations make extensive use of models, and we could be adversely affected if our design, implementation, or use of models is flawed
- DroppedOperational Risks
The Company’s risk management framework may fail to identify and manage the risks that we face
- DroppedOperational Risks
In deciding whether to extend credit or enter into other transactions with clients and counterparties, Truist relies on the completeness and accuracy of representations made by and information furnished by or on behalf of clients and counterparties, including financial statements and other financial information
Reworded
- 100% rewrittenMarket Risks
22 Truist Financial Corporation
The risk changed completely from legal claims and enforcement proceedings to market-rate uncertainty affecting net interest income, credit demand, delinquencies, and securities values.
Was: 34 Truist Financial Corporation
- 100% rewrittenOperational Risks
Truist Financial Corporation 31
The risk changed from capital and liquidity constraints to servicing failures causing contract termination, indemnification, loan repurchases, or reimbursement of credit losses.
- 100% rewrittenCompliance, Regulatory, and Legal Risks
32 Truist Financial Corporation
The risk changed from loan-servicing liabilities to active regulatory oversight across fair access, deposits, commercial real estate, controls, data, fees, and cybersecurity.
- 100% rewrittenMarket Risks
Truist Financial Corporation 21
The risk changed from regulators’ climate-change focus to economic weakness reducing fee income from asset management, brokerage, investment banking, and advisory services.
Was: 30 Truist Financial Corporation
- 90% rewrittenCompliance, Regulatory, and Legal Risks
The Company may incur damages, fines, and penalties and face other negative consequences from supervisory actions and regulatory or other legal violations, including inadvertent or unintentional violations
The compliance risk is now detailed across products, client interactions, teammate conduct, AML, trading, market conduct, and fiduciary duties.
Was: The 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
- 83% rewrittenCompliance, Regulatory, and Legal Risks
Differences in, or changes to, regulation and supervision and industry disruption can affect the Company’s ability to compete effectively, which may adversely affect our business, financial condition, financial results, or growth
The risk now highlights potentially easier capital rules for larger competitors and competition from limited-purpose banks and digital-asset businesses.
Was: Differences in regulation and supervision can affect the Company’s ability to compete effectively
- 81% rewrittenCompliance, Regulatory, and Legal Risks
Truist is subject to extensive and evolving government regulation and supervision, which could adversely affect our business, financial condition, results of operations, and prospects
The wording now specifically covers restrictions on products and how Truist may offer them, in addition to shareholder distributions.
- 78% rewrittenTechnology and Data Risks
Truist Financial Corporation 27
The risk changed from cyberattacks and system disruption to intellectual-property infringement claims, including mobile remote-deposit patents settled in 2023.
- 78% rewrittenLiquidity Risks
Our inability to retain and grow deposits or a change in deposit costs or mix could negatively impact our funding strategy and financial results
- 73% rewrittenOperational Risks
Truist is subject to risks related to originating and selling loans, including repurchase and indemnification obligations, which may adversely affect our business, results of operations, and financial condition
Was: Truist is subject to risks related to originating and selling loans, including repurchase and indemnification obligations
- 70% rewrittenTechnology and Data Risks
Truist is heavily reliant on technology, and a failure to effectively anticipate, develop, and implement new or enhanced technology could negatively impact our financial results, business, operations, security, or ability to compete effectively
Was: Truist 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
- 70% rewrittenRisks Related to Estimates and Assumptions
Truist employs estimates and assumptions to determine the value or amount of many of our assets and liabilities, and if these estimates or assumptions prove inaccurate, our business, financial condition, results of operations, and prospects could be adversely affected
Was: We 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
- 67% rewrittenStrategic Risks
Competition may reduce Truist’s client base or cause Truist to modify the pricing or other terms for products and services, or require significant investments to maintain competitiveness, which could have an adverse impact on our business and financial results
Was: Competition 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
- 64% rewrittenTechnology and Data Risks
26 Truist Financial Corporation
- 61% rewrittenLiquidity Risks
The 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
- 60% rewrittenLiquidity Risks
The Parent Company relies on dividends from Truist Bank for its liquidity needs, the payment of which is limited by statutes and regulations, and the Parent Company could have less access to funding sources and its liquidity could be constrained if Truist Bank becomes unable to pay dividends
Was: The Parent Company could have less access to funding sources and its liquidity could be constrained if the Bank becomes unable to pay dividends
- 56% rewrittenCompliance, Regulatory, and Legal Risks
Pending or threatened legal proceedings and other matters may adversely affect the Company’s business, financial condition, results of operations, prospects, and reputation
Was: Pending or threatened legal proceedings and other matters may adversely affect the Company’s business, financial condition, results of operations, and reputation
- 53% rewrittenAdditional Risks
We 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
- 48% rewrittenTechnology and Data Risks
Truist faces substantial risks in safeguarding personal and other sensitive information, which may negatively impact the Company’s business, financial condition, results of operations, prospects, or reputation
Was: Truist faces substantial risks in safeguarding personal and other sensitive information
- 44% rewrittenOperational Risks
Truist can be negatively affected if it fails to identify and address operational and compliance risks associated with the introduction of or changes to products, services, and delivery platforms
Was: Truist 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
- 44% rewrittenStrategic Risks
Ineffective execution of strategic initiatives could adversely affect investor sentiment and the Company’s business, financial condition, results of operations, prospects, and reputation
Was: Ineffective execution of strategic initiatives could adversely affect investor sentiment and our business and financial results
- 43% rewrittenMarket Risks
Changes in monetary, fiscal, and other policies, and changes in the U.S. political environment, could adversely affect us
- 42% rewrittenAdditional Risks
The Company relies 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
Was: The 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
- 37% rewrittenMarket Risks
Geopolitical 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
- 36% rewrittenOperational Risks
Truist relies on third parties to support key components of the Company’s business and operational infrastructure, and their failure to perform to our standards or our failure to appropriately assess and manage these relationships could adversely affect us
Was: Truist 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
- 36% rewrittenLiquidity Risks
The 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
- 35% rewrittenAdditional Risks
The Company is at risk of losses from fraud which could result in financial loss and reputational harm
Was: The Company is at risk of increased losses from fraud
- 30% rewrittenCredit Risks
The Company is subject to credit risk, and the Company’s allowance for credit losses may not be adequate to cover realized and future losses
- 28% rewrittenLiquidity Risks
A disruption in our access to the mortgage secondary market and GSEs for liquidity could negatively affect us
- 22% rewrittenCredit Risks
The Company may suffer losses if the value of collateral declines in weak, deteriorating, or stressed economic or market conditions
- 21% rewrittenAdditional Risks
Physical, transition, and other risks associated with climate change, together with governmental responses to such risks, may negatively impact our business, financial condition, operations, reputation, and clients
Was: Physical, transition, and other risks associated with climate change, together with governmental responses to them, may negatively impact our business, operations, reputation, and clients
All 54 risk factors
Headings as the filing states them, in filing order.
Market Risks
- 01Changes in monetary, fiscal, and other policies, and changes in the U.S. political environment, could adversely affect us43% rewritten
- 02Our financial results, the value of loans and debt securities we hold, and lending and other business activities have in the past, and may in the future, be adversely affected by weak or deteriorating economic conditionsNew
- 03Truist Financial Corporation 21100% rewritten
- 04Geopolitical 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 us37% rewritten
- 05Changes in interest rates have affected our net interest income and other financial results in the past and could in the future adversely affect usNew
- 0622 Truist Financial Corporation100% rewritten
- 07The Company’s hedging strategies may not be successful in mitigating our interest rate, foreign exchange, and market risks, which could adversely affect our results of operations and financial condition
Credit Risks
- 08The Company is subject to credit risk, and the Company’s allowance for credit losses may not be adequate to cover realized and future losses30% rewritten
- 09Truist Financial Corporation 23New
- 10The Company may suffer losses if the value of collateral declines in weak, deteriorating, or stressed economic or market conditions22% rewritten
Liquidity Risks
- 11Our inability to retain and grow deposits or a change in deposit costs or mix could negatively impact our funding strategy and financial results78% rewritten
- 12Truist’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
- 13A disruption in our access to the mortgage secondary market and GSEs for liquidity could negatively affect us28% rewritten
- 14The 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 expectations36% rewritten
- 15The Parent Company relies on dividends from Truist Bank for its liquidity needs, the payment of which is limited by statutes and regulations, and the Parent Company could have less access to funding sources and its liquidity could be constrained if Truist Bank becomes unable to pay dividends60% rewritten
- 16The 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 us61% rewritten
Technology and Data Risks
- 1726 Truist Financial Corporation64% rewritten
- 18Truist is heavily reliant on technology, and a failure to effectively anticipate, develop, and implement new or enhanced technology could negatively impact our financial results, business, operations, security, or ability to compete effectively70% rewritten
- 19Truist Financial Corporation 2778% rewritten
- 2028 Truist Financial CorporationNew
- 21The Company faces risks associated with the privacy, quality, availability, and retention of key data for operational, strategic, regulatory, and compliance purposes
- 22Truist faces substantial risks in safeguarding personal and other sensitive information, which may negatively impact the Company’s business, financial condition, results of operations, prospects, or reputation48% rewritten
- 23Truist Financial Corporation 29New
- 24The use of AI in our products and services, as well as our business and the industry more broadly, may negatively impact our business, operations, financial condition, results of operations, prospects, and reputationNew
Operational Risks
- 25Truist relies on third parties to support key components of the Company’s business and operational infrastructure, and their failure to perform to our standards or our failure to appropriately assess and manage these relationships could adversely affect us36% rewritten
- 26The Company’s risk and control framework may fail to identify, assess, monitor, and mitigate the risks we face and cause us to suffer unexpected losses that could adversely affect our business, financial condition, results of operations, prospects, and reputationNew
- 27Truist can be negatively affected if it fails to identify and address operational and compliance risks associated with the introduction of or changes to products, services, and delivery platforms44% rewritten
- 28Truist is subject to risks related to originating and selling loans, including repurchase and indemnification obligations, which may adversely affect our business, results of operations, and financial condition73% rewritten
- 29Truist faces loan servicing risks that could adversely impact the Company’s business, operations, liquidity, and results of operationsNew
- 30Truist Financial Corporation 31100% rewritten
Compliance, Regulatory, and Legal Risks
- 31Truist is subject to extensive and evolving government regulation and supervision, which could adversely affect our business, financial condition, results of operations, and prospects81% rewritten
- 3232 Truist Financial Corporation100% rewritten
- 33The Company may incur damages, fines, and penalties and face other negative consequences from supervisory actions and regulatory or other legal violations, including inadvertent or unintentional violations90% rewritten
- 34Truist Financial Corporation 33New
- 35Pending or threatened legal proceedings and other matters may adversely affect the Company’s business, financial condition, results of operations, prospects, and reputation56% rewritten
- 36Regulatory capital and liquidity standards applicable to large banking organizations and future revisions to existing standards may negatively impact our business, financial results, financial condition, growth, profitability, or our ability to return capital to shareholdersNew
- 37Differences in, or changes to, regulation and supervision and industry disruption can affect the Company’s ability to compete effectively, which may adversely affect our business, financial condition, financial results, or growth83% rewritten
- 38Truist faces risks of non-compliance and may incur additional operational and compliance costs under laws relating to anti-money laundering, economic sanctions, embargo programs, anti-bribery, and anti-corruptionNew
Strategic Risks
- 39Ineffective execution of strategic initiatives could adversely affect investor sentiment and the Company’s business, financial condition, results of operations, prospects, and reputation44% rewritten
- 40Competition may reduce Truist’s client base or cause Truist to modify the pricing or other terms for products and services, or require significant investments to maintain competitiveness, which could have an adverse impact on our business and financial results67% rewritten
- 4136 Truist Financial CorporationNew
- 42Truist Financial Corporation 37New
- 43Truist has businesses other than banking that are subject to a variety of risks that may affect our financial condition and results of operations
Risks Related to Estimates and Assumptions
- 44Truist’s business and operations rely significantly on the use of models, and any deficiencies in the design, implementation, or use of models could adversely affect our business, results of operations, and financial conditionNew
- 45Truist employs estimates and assumptions to determine the value or amount of many of our assets and liabilities, and if these estimates or assumptions prove inaccurate, our business, financial condition, results of operations, and prospects could be adversely affected70% rewritten
- 4638 Truist Financial CorporationNew
- 47Depressed 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
Additional Risks
- 48Negative public opinion, whether or not warranted, could damage the Company’s brand in the market and relationships with stakeholders, and adversely impact our business, financial condition, results of operations, and prospectsNew
- 49Truist Financial Corporation 39New
- 50We 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 conditions53% rewritten
- 51The Company relies on its ability, and the ability of key external parties, to maintain appropriately staffed workforces and on the competence, trustworthiness, health, and safety of teammates42% rewritten
- 52The Company is at risk of losses from fraud which could result in financial loss and reputational harm35% rewritten
- 53Physical, transition, and other risks associated with climate change, together with governmental responses to such risks, may negatively impact our business, financial condition, operations, reputation, and clients21% rewritten
- 54Natural disasters, pandemics, extreme weather events, and other catastrophic events, as well as government actions or other restrictions in connection with such events, could adversely affect the Company’s financial condition and results of operationsNew
Other Truist Financial 10-Ks
- FY2024 10-K risk factors48 risks
Truist’s earnings and capital depend heavily on interest rates, credit performance, deposits, liquidity, and collateral values.
Filed Feb 25, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.