Question · Q3 2025
Ibrahim Punwala asked CFO Hope Dmuchowski about the necessary steps and baked-in factors to achieve First Horizon's 15% ROCI target for next year. He also inquired about the bank's capital strategy, specifically how the 11% CET1 ratio and 10.75% near-term target relate to M&A opportunities (tuck-in vs. larger deals) and buybacks.
Answer
CFO Hope Dmuchowski outlined three components for achieving the 15% ROCI target: capital normalization (targeting 10.75% near-term, 10-10.5% long-term), credit normalization, and over $100 million in PP&R growth. Chairman, President, and CEO Bryan Jordan confirmed that M&A would largely be tuck-in deals, with organic growth and buybacks being key tools for capital deployment and flexibility.