Truist is eyeing $1.6 billion in merger-related net cost savings. It achieved about 40 percent of that in 2020, with plans to pass the $1 billion mark this year.
Bible said Truist is targeting $2.94 billion or less in adjusted non-interest expenses for the fourth quarter of 2021. That excludes merger-related restructuring costs, operating expenses, amortization and acquisitions. Meeting this target will also allow Truist to reach its cost savings goal in 2021.
King said the $1.6 billion goal comes solely from combining the companies. There could be opportunities to exceed that as the new bank continues to evolve.
https://www.bizjournals.com/triangle/news/2021/01/22/more-on-truist-fourth-quarter-earnings-2020.html
To meet the goal, the bank is cutting from multiple areas. It reduced headcount by 1,300 in the fourth quarter, now reporting about 54,000 employees. Truist consolidated 150 branches last year and plans to shutter another 226 in the first quarter. It is planning to reach approximately 800 total closures in the next year, driven by more than 400 closures in 2021.
Covid-19 and work-from-home policies have also allowed the bank to accelerate its reductions in corporate real estate. It is on track to reduce its net space by 4.8 million square feet. About half of that was completed in 2020, with more heavy adjustments set for the first half of this year.