Truist Financial has inked a deal to sell $5.5 billion of auto loans as part of the regional bank's decision to exit the near-prime auto lending business.

The transaction reflects Truist's strategic move to streamline its portfolio and focus on core banking operations. By divesting these assets, the bank aims to reduce risk exposure in the volatile near-prime lending segment.

This sale comes as regional banks face increased pressure from rising interest rates and economic uncertainty. Truist's decision aligns with a broader industry trend of de-risking and consolidating lending activities.

The $5.5 billion portfolio sale is expected to close in the coming months, subject to customary closing conditions. Financial terms of the deal beyond the loan principal amount were not disclosed.