Truist Sold Auto Loan Portfolio for $5.5 Billion
The bank is shedding its near-prime lending unit to streamline operations and strengthen its capital position.
Updated on Sept. 29, 2026 in Buying/Selling
Live Poll
Do you trust a CEO's purchase of company stock as a reliable signal of business health?
Truist has reached an agreement to sell $5.5 billion in auto loans to Apollo Global Management, resulting in $5.2 billion in net proceeds for the bank. This move includes the sale of substantially all assets from its near-prime auto-lending unit, Regional Acceptance.
Why it matters
The bank is exiting less profitable business lines to focus on its core deposit franchise and corporate operations. By offloading these assets, Truist aims to improve capital efficiency and reduce its overall credit risk profile.
Truist expects the transaction to boost its common equity Tier 1 capital by approximately $945 million. Regional Acceptance, the unit being sold, saw earnings near breakeven for the first six months of 2026.
The players
Truist
A major U.S. financial institution that provides banking, lending, and investment services to households and businesses.
Mike Lyons
The current CEO of Truist who began his tenure in September 2026.
Apollo Global Management
A global alternative asset manager and the firm acquiring the auto loan portfolio from Truist.
Regional Acceptance
A near-prime auto-lending unit that is being divested as part of Truist's strategy to exit non-core business lines.
The details
Truist will use the proceeds from this sale to repay outstanding wholesale borrowings and bolster its balance sheet. This process involves the transfer of near-prime loan assets to Apollo Global Management. The bank intends to maintain its $5 billion stock repurchase target for the remainder of 2026 as it reallocates capital resources.
Timeline
September 1, 2026: CEO Mike Lyons received restricted stock-unit grants.
September 15, 2026: Truist filed the regulatory disclosure regarding the sale.
September 17, 2026: Mike Lyons purchased $1.01 million in company stock.
Late Q3 or early Q4 2026: The loan sale is expected to officially close.
The Home Front
Large financial institutions are increasingly divesting from secondary auto-lending divisions to prioritize core corporate and deposit-based banking. This shift follows broader industry trends aimed at increasing capital buffers and streamlining operational risks.
While this sale impacts the bank's balance sheet, it does not change the terms of existing consumer auto loans. Borrowers should continue making payments according to their original agreements and monitor for any official notices regarding the transition of loan servicing.
The takeaway
Large banks continue to restructure their lending portfolios to favor higher capital efficiency over niche credit segments. Customers with auto loans at traditional lenders should regularly review their account statements for any changes in servicing or payment contact information.
Further reading
For more insight into how bank decisions impact consumers, visit Buying/Selling.
Source note: This article includes information reported by International Business Times UK.
Live Poll
Do you trust a CEO's purchase of company stock as a reliable signal of business health?
