Truist Exits Near-Prime Auto Lending Under New CEO
Truist Financial is exiting its near-prime auto lending business, selling $5.5 billion in related loans as part of a strategic shift under new CEO Michael Lyons. The decision follows concerns over credit quality and performance issues within the sector, with non-performing indirect auto loans reaching $569 million in Q2—accounting for one-third of Truist's total non-accruing assets. The move aligns with a broader strategy to focus on core strengths while divesting underperforming segments. CFO Mike Maguire emphasized that the high-yield nature of these loans was offset by significant delinquencies and charge-offs, making them economically unsustainable for Truist's long-term goals. The sale is expected in Q3 or Q4 2026. Analysts view this as part of a larger repositioning under Lyons' leadership to improve profitability and credit quality over the next three years.
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