Truist Financial, formed by the merger of BB&T and SunTrust in December 2019, is one of the largest financial institutions in the United States. Even the smallest of these big banks has enormously deep pockets. See which firms are in the money. However, the company's investment banking division has taken a hit due to recent market turbulence, leading to a 5% reduction in headcount.
Truist Financial has trimmed around 5% of its investment banking headcount amid dealmaking slump due to market turbulence, according to sources. The bank's investment banking division has been hit hard by the recent economic downturn caused by the COVID-19 pandemic and the resulting market volatility.
The bank's share price has also taken a hit in recent weeks, dropping 19.1% from last Friday's close through 10 a.m. ET. Truist Financial Corporation (NYSE: TFC) has seen its market value drop from $56.4 billion at the end of February to $38.6 billion as of May 14.
Despite these challenges, Truist Financial is still making moves in the investment world. The company recently announced that Chief Financial Officer Mike Maguire will present at the BofA Securities 2020 Virtual Financials Conference on May 12, showcasing the bank's resilience in the face of market turbulence.
Truist Financial is also making changes to its leadership team. John Gregg, the bank's chief operating officer, is retiring, and Tom Hackett has been named his successor. The bank has not yet announced a replacement for Hackett in his previous role as president of Truist Wealth.
Truist Wealth, the bank's wealth management division, is also making moves to adapt to the changing investment landscape. The company recently unveiled a pair of new investment solutions: a roboadvisor called Truist Invest and a hybrid investment platform called Truist Advisor.
Truist Wealth is not the only wealth management firm making moves in the digital space. Several banks, including Truist Financial, have embedded automated investing in their online and mobile banking platforms to meet the needs of younger investors.
One team taking advantage of these digital tools is Benjamin Link and Steve Sexton, who are forming Vero Wealth Management in Greensboro. They are the 25th team to join LPL's Linsco platform, which provides technology tools and resources for independent financial advisors.
Truist Financial is not alone in feeling the effects of the current market turbulence. Many banks and financial institutions are struggling to adapt to the changing investment landscape brought on by the COVID-19 pandemic.
However, with its deep pockets and commitment to innovation, Truist Financial is well-positioned to weather the storm and emerge stronger than ever. As the market continues to evolve, investors will be watching closely to see how Truist Financial adapts and thrives in the new normal.
