Truist to exit near-prime auto lending, sell $5.5B in loans
New CEO Mike Lyons has added “a lot of urgency and intensity” around a strategic review the bank is conducting, CFO Mike Maguire said Tuesday.
Truist Bank is planning to exit its near-prime auto lending business by selling $5.5 billion in related loans, according to recent reports. The decision comes as part of a broader strategic review that the bank is conducting, with new CEO Mike Lyons emphasizing the urgency and intensity of the process. The sale is expected to generate $945 million in common equity tier 1 capital and help the bank reposition some of its available-for-sale securities portfolio, according to CFO Mike Maguire.
Truist has been reducing its originations in noncore segments such as auto lending, focusing instead on relationship-based lending that meets profitability criteria. The RAC transaction is seen as a way to improve the bank's credit risk profile and generate modest returns for shareholders in 2027. With Lyons' leadership, Truist aims to refocus on growth opportunities that leverage its core strengths, including expanding its branch network and increasing deposit growth.
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