Truist Sells $5.5 Billion Auto Loan Portfolio to Pursue Higher Profits
Truist Financial, a top 10 commercial bank in the United States in terms of assets, disclosed Tuesday (Sept. 15) that it is selling $5.5 billion worth of auto loans and exiting the near-prime auto lending business. The loans represent substantially all assets of the bank’s national auto finance company affiliate, Regional Acceptance Corporation, and the […] The post Truist Sells $5.5 Billion Auto…
Truist Financial, a leading U.S. commercial bank, announced on Tuesday that it plans to sell $5.5 billion worth of auto loans, marking its exit from the near-prime auto lending business. The transaction, involving all assets of its affiliate, Regional Acceptance Corporation, is set to conclude in the third or fourth quarter, pending customary closing conditions, according to a filing with the Securities and Exchange Commission.
This strategic move aims to focus Truist on its core operations and enhance its financial profile. The sale is part of a broader strategic review currently underway, with Truist also discontinuing its marine and recreational vehicle loan business. By executing this loan sale, Truist seeks to improve its liquidity, reduce credit risk, and increase shareholder value.
The bank anticipates benefiting from a more efficient capital structure, enhanced by a liquidity boost and lower non-performing loans.
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