Truist Financial to sell $5.5 billion of auto loans amid overhaul

Sept 15 (Reuters) - Truist ‌Financial said ​on ​Tuesday it has struck a deal to sell $5.5 billion of auto loans, as CEO ‌Mike Lyons pushes to overhaul the U.S. ⁠bank and exit less profitable, non-core businesses.

Here are some key ‌details:

• The sale is ‌expected to generate $5.2 billion in net proceeds for Truist and mark its exit from near-prime auto ​lending.

• The Charlotte, North Carolina-based bank also said a broad strategic review was ongoing.

• "There's ⁠a lot of urgency and intensity that's been added to this evaluation ​that really started earlier this year," Truist finance chief Mike Maguire said at the ​Barclays Global Financial Services Conference ‌on Tuesday.

• During the second quarter, Truist discontinued marine and recreational vehicle loans ⁠and reduced originations in several other less profitable consumer lending units, such as prime and non-prime auto.

• "In addition to ⁠implementing a more robust deposit gathering strategy, we also believe ​further divestitures are likely as Lyons repositions TFC for stronger growth and profitability over the next three years," RBC ‌analyst Gerard Cassidy said.

• Truist said it is pairing the transaction, which is ‌expected to close this year, with a repositioning of ⁠its securities portfolio to ‌offset the capital ​created from the loan sale.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Jonathan ‌Ananda)

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