Truist Financial Corporation

Geopolitical and trade · International conflicts and tensions

Geopolitical conditions, including tensions in foreign relations of the U.S., the outbreak or escalation of hostilities between countries or within a country or region, and acts or threats of terrorism, could have an adverse effect on the global economy, financial markets, and Truist's business and operations.

Geopolitical and trade · Political instability and government changes

A fractious or volatile political environment in the U.S., including any related social unrest, could negatively impact business and market conditions, economic growth, financial stability, and business, consumer, investor, and regulatory sentiments.

Geopolitical and trade · Regulatory and policy uncertainty

Changes in monetary, fiscal, and other policies, including monetary policies established by the Federal Reserve System and other central banks, and uncertainty concerning the future path of interest rates, government shutdowns, debt ceilings or funding for the government, and tariffs and other trade policies can cause dislocations and volatility in the financial markets and adversely affect our business and operations.

Natural and catastrophic events · Climate change and environmental impact

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.

Natural and catastrophic events · Natural disasters and extreme weather

Natural disasters, pandemics, extreme weather events, and other catastrophic events could adversely affect our financial condition and results of operations.

Cybersecurity and data protection · Data breaches and cyber attacks

The Company and its clients, suppliers, service providers, and other third parties face a wide array of cybersecurity risks, which could result in the loss, alteration, or disclosure of confidential, proprietary, personal, and other sensitive information; adversely impact the Company's business, operations, financial condition, results of operations, prospects, and reputation.

Digital transformation and innovation · Digital transformation and modernization

Truist expects to make additional investments in innovation and technology to address technological disruption in the industry, improve client offerings and service, and streamline and automate operations.

Technology infrastructure · Disaster recovery and business continuity

While Truist maintains an enterprise resilience program and other safeguards designed to mitigate the impact of natural disasters, pandemics, extreme weather events, and other catastrophic events, no resilience measures can fully eliminate risk or assure uninterrupted operations.

Digital transformation and innovation · Artificial intelligence and automation

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.

Technology infrastructure · Technology systems and infrastructure failure

The Company's applications, operating systems, and infrastructure, as well as operational capabilities managed or supplied by third parties on whom we rely, could fail or be interrupted, which could adversely impact the Company's business, operations, financial condition, prospects, and reputation.

Information management · Technology vendor dependence

The Company's expanding use of AI tools and related technologies introduces additional operational risks, including reliance on data integrity and model performance as well as third-party AI services that may fail, degrade, or produce inaccurate or unexpected outputs.

Supply chain and procurement · Supplier operation and dependance

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.

Industry regulation · Regulatory compliance and changes

Truist is subject to extensive and evolving government regulation and supervision, which could adversely affect our business, financial condition, results of operations, and prospects.

Data and privacy · Data protection and privacy laws

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.

Reputation and brand · Social media and digital reputation

The proliferation of social media and the speed at which information spreads on social media may increase the likelihood that negative public opinion from any real or perceived events relating to the Company could impact our reputation and business.

Reputation and brand · Brand damage and negative publicity

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.

Capital structure and performance · Financial performance volatility

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.

Capital structure and performance · Credit rating and cost of capital

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.

Capital structure and performance · Debt management and refinancing

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.

Credit and liquidity · Liquidity and cash flow constraints

Truist'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.