First Horizon Corporation provided its 2025 outlook at the Goldman Sachs Financial Services Conference, projecting Adjusted Revenue to be flat to up 4% and Adjusted Expense to be up 2% to 4%. This outlook assumes 25 basis point interest rate cuts in December 2024, and March, May, and September 2025, along with modest balance sheet growth.
The company anticipates Net Charge-Offs to be between 0.15% and 0.25%, reflecting continued credit normalization and the benefit of declining rates. The effective Tax Rate is expected to be between 21% and 23%, with the CET1 Ratio targeted at 10.5% to 11.0%.
First Horizon aims for Pre-Provision Net Revenue (PPNR) growth in 2025, with the composition of revenue driven by the pace of interest rate cuts. The company's balanced business model and counter-cyclical businesses are expected to provide a natural hedge against Net Interest Income fluctuations.
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