Core Insights - Truist Financial Corporation reported revenue of $4.99 billion for the quarter ended June 2025, reflecting a year-over-year increase of 0.4% and a slight revenue surprise of +0.1% over the Zacks Consensus Estimate of $4.98 billion [1] - The earnings per share (EPS) remained unchanged at $0.91 compared to the same quarter last year, with an EPS surprise of -1.09% against the consensus estimate of $0.92 [1] Financial Performance Metrics - Net interest margin was reported at 3%, aligning with the average estimate from six analysts [4] - Total nonperforming assets amounted to $1.32 billion, which is lower than the average estimate of $1.63 billion from five analysts [4] - Net charge-offs as a percentage of average loans and leases were 0.5%, better than the estimated 0.6% from five analysts [4] - Book Value Per Share (BVPS) was $45.70, exceeding the average estimate of $45.30 from five analysts [4] - Average balance of total earning assets reached $480.98 billion, surpassing the average estimate of $478.38 billion from five analysts [4] - Efficiency Ratio was reported at 59.9%, higher than the average estimate of 58.3% from four analysts [4] - Total nonaccrual loans and leases were $1.26 billion, below the average estimate of $1.56 billion from four analysts [4] - Tier 1 Leverage Ratio stood at 10.2%, slightly below the average estimate of 10.3% from three analysts [4] - Tier 1 Capital Ratio was reported at 12.3%, lower than the average estimate of 12.7% from three analysts [4] - Total Capital Ratio was 14.3%, compared to the average estimate of 14.9% from two analysts [4] - Total Noninterest Income was $1.4 billion, marginally below the average estimate of $1.41 billion from six analysts [4] - Net interest income (FTE) was reported at $3.64 billion, slightly above the average estimate of $3.63 billion from five analysts [4] Stock Performance - Truist Financial's shares have returned +13.1% over the past month, outperforming the Zacks S&P 500 composite's +5.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Truist Financial's second-quarter 2025 adjusted earnings were 91 cents per share, missing the Zacks Consensus Estimate by one cent, with no change from the prior-year quarter [1][9] - The company experienced an increase in provisions, impacting results, but benefited from higher net interest income and total non-interest income, along with reduced expenses [1][9] Financial Performance - Total revenues for the quarter reached $4.99 billion, compared to negative revenues of $1.68 billion in the same quarter last year, slightly exceeding the Zacks Consensus Estimate of $4.98 billion [3] - Tax-equivalent net interest income (NII) rose 1.7% year over year to $3.64 billion, surpassing the estimate of $3.61 billion, while the net interest margin (NIM) remained stable at 3.02% [3] - Non-interest income was reported at $1.40 billion, a significant recovery from negative fee income of $5.21 billion in the prior-year quarter, driven by a decrease in securities losses [4] - Non-interest expenses decreased by 3.5% year over year to $2.99 billion, primarily due to lower personnel and regulatory costs [5] Credit Quality - Provision for credit losses increased to $488 million, up 8.2% from the prior-year quarter, while net charge-offs were 0.51% of average loans and leases, down seven basis points [7] - Total non-performing assets (NPAs) were $1.32 billion, a decrease of 10.8% from a year ago, better than the expected $1.51 billion [8] Profitability and Capital Ratios - Return on average common equity improved to 8.1% from 6.1% in the second quarter of 2024, while the Tier 1 risk-based capital ratio decreased to 12.3% from 13.2% year over year [10] - The common equity Tier 1 ratio was reported at 11%, down from 11.6% in the prior-year quarter [10] Shareholder Actions - The company repurchased shares worth $750 million during the reported quarter [11] Outlook - The company anticipates that decent loan demand and business restructuring initiatives will continue to support revenue growth, although elevated expenses and weak asset quality present challenges [12]

Financial Data and Key Metrics Changes - The company reported net income available to common shareholders of $1,200,000,000 or $0.90 per share, which included $0.02 of restructuring charges and $0.01 of losses from the sale of certain investment securities [7][19] - Adjusted revenue increased by 2.1% linked quarter, driven by a 2.3% growth in net interest income and a 1.8% growth in non-interest income [20] - Average loans held for investment increased by 2% on a linked quarter basis, with end of period loans increasing by $10,200,000,000 or 3.3% [21] Business Line Data and Key Metrics Changes - In consumer and small business banking, average loan balances increased by 2.8% linked quarter, with end of period balances up by 3.8% due to growth in residential mortgage and indirect auto loans [12] - Wholesale loans saw a 1.5% growth in average loans and a 2.9% increase in end of period loans, driven by new and existing clients [13][14] - Treasury management revenue increased by 14% year-over-year, reflecting enhanced client engagement and digital capabilities [16] Market Data and Key Metrics Changes - The company experienced strong loan production and new client acquisition across both consumer and wholesale segments, helping to offset market volatility in trading and capital markets [8][10] - The average deposit balances increased by $8,300,000,000 sequentially, or 2.1%, driven by growth in interest checking and time deposits [22] - The cumulative interest-bearing deposit beta declined from 43% to 37% on a linked quarter basis, indicating a stabilization in deposit costs [23] Company Strategy and Development Direction - The company is focused on executing strategic growth initiatives, maintaining credit and risk discipline, and returning capital to shareholders [34] - Investments in talent, technology, and risk infrastructure are prioritized to enhance client experience and operational efficiency [35][88] - The company aims to deepen client relationships and expand its presence in key growth markets, particularly in payments and wealth management [6][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of both consumer and wholesale client portfolios, noting good credit quality and liquidity among clients [42][46] - The outlook for revenue growth remains unchanged, with expectations for net interest income to increase by 3% in 2025 compared to 2024 [31] - Management anticipates a recovery in investment banking and trading revenue in the second half of 2025, supported by a strong pipeline [26] Other Important Information - The company returned $1,400,000,000 of capital to shareholders during the quarter through dividends and share repurchases, with plans to target approximately $500,000,000 in share repurchases for the third quarter [10][11] - The company maintained strong asset quality metrics, with non-performing loans and net charge-offs decreasing [9][28] Q&A Session Summary Question: Overall sentiment among the customer base - Management noted strong consumer business performance and good credit quality, with new clients impressed by the company's purpose-driven focus and product capabilities [42][46] Question: Anticipated pace of share repurchase - The reduction in share repurchase was described as opportunistic, with a focus on maintaining a balance between capital return and banking franchise growth [48][49] Question: Deposit competition and costs - Management indicated that deposit competition is rational, with expectations for deposit costs to stabilize and potentially improve in the coming quarters [56][61] Question: Fee revenue growth and trading recovery - Management observed a bounce back in trading and investment banking revenue, with expectations for normalized results in the third quarter [66][67] Question: Operating leverage and profitability - Management highlighted various initiatives to improve profitability, including capital-efficient revenue generation and continued focus on client deposit growth [72][74] Question: Significance of RTP capability for commercial deposits - The RTP capability is seen as a significant innovation that enhances client experience and could lead to increased wallet share among commercial clients [75][77] Question: Restructuring expenses and investments - Most restructuring charges were related to severance, not merger-related, and management emphasized ongoing investments in technology and talent [85][88]

Financial Data and Key Metrics Changes - The company reported net income available to common shareholders of $1,200,000,000 or $0.90 per share, which included $0.02 of restructuring charges and $0.01 of losses from the sale of certain investment securities [6][18] - Adjusted revenue increased by 2.1% linked quarter, driven by a 2.3% growth in net interest income and a 1.8% growth in non-interest income [19] - Average loans held for investment increased by 2% on a linked quarter basis, with end of period loans increasing by $10,200,000,000 or 3.3% [20] Business Line Data and Key Metrics Changes - In consumer and small business banking, average loan balances increased by 2.8% linked quarter, with significant growth in residential mortgage and indirect auto loans [11] - Wholesale loans saw a 1.5% growth in average loans and a 2.9% increase in end of period loans, driven by new and existing clients [12] - Wealth management experienced a 27% increase in year-to-date assets under management (AUM) from wholesale and premier clients compared to the same period last year [13] Market Data and Key Metrics Changes - The company added nearly 37,000 new consumer and small business accounts, attracting younger clients with higher average balances [10] - Average deposits increased by $8,300,000,000 sequentially, or 2.1%, driven by growth in interest checking and time deposits [21] - The cumulative interest-bearing deposit beta declined from 43% to 37% on a linked quarter basis [22] Company Strategy and Development Direction - The company is focused on executing strategic growth initiatives, maintaining credit and risk discipline, and returning capital to shareholders [33] - Investments are being made in talent, technology, and risk infrastructure to enhance client experience and operational efficiency [34] - The company aims to achieve positive operating leverage in 2025 despite challenges in investment banking and trading [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of both consumer and wholesale client bases, noting good credit quality and liquidity among clients [42] - The company anticipates a recovery in investment banking and trading revenue in the second half of 2025 based on current pipelines and improved market conditions [25] - The outlook for revenue growth remains unchanged, with expectations for a 1.5% to 2.5% increase relative to 2024 adjusted revenue [29] Other Important Information - The company returned $1,400,000,000 of capital to shareholders through dividends and share repurchases during the quarter [9] - The CET1 ratio was reported at 11%, with a strong capital position allowing for balance sheet growth and capital returns [28] - The company plans to target approximately $500,000,000 of share repurchases during the third quarter [10] Q&A Session Summary Question: Overall sentiment among the customer base - Management noted strong consumer business performance and good credit quality, with new clients impressed by the company's purpose-driven focus and product capabilities [40][44] Question: Anticipated pace of share repurchase - The reduction in share repurchase target was described as opportunistic, with a focus on maintaining a balance between capital return and banking franchise growth [46] Question: Deposit competition and costs - Management indicated that deposit competition is rational, with expectations for deposit costs to stabilize and improve in the coming quarters [56][58] Question: Fee revenue growth and trading recovery - Management observed a bounce back in trading and investment banking revenue, with expectations for normalized results in the third quarter [65] Question: Trajectory towards 15% ROTCE - Management highlighted various initiatives to improve profitability, including capital-efficient revenue generation and margin improvements [72][74] Question: Restructuring charges and investments - Most restructuring charges were related to severance, not merger-related, and the company continues to invest in technology and talent while maintaining expense discipline [85][88]

Group 1 - Truist Financial Corporation reported quarterly earnings of $0.91 per share, missing the Zacks Consensus Estimate of $0.92 per share, with an earnings surprise of -1.09% [1] - The company posted revenues of $4.99 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.10%, compared to year-ago revenues of $4.97 billion [2] - Truist Financial shares have increased by approximately 3.8% since the beginning of the year, while the S&P 500 has gained 7.1% [3] Group 2 - The earnings outlook for Truist Financial is mixed, with the current consensus EPS estimate for the coming quarter at $0.99 on revenues of $5.14 billion, and $3.88 on revenues of $20.31 billion for the current fiscal year [7] - The Zacks Industry Rank for Banks - Major Regional is currently in the top 7% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - KeyCorp, another company in the same industry, is expected to report quarterly earnings of $0.34 per share, reflecting a year-over-year change of +36%, with revenues anticipated to be $1.8 billion, up 18.9% from the year-ago quarter [9][10]

Financial Performance - Net income available to common shareholders was $1.2 billion[18] - Diluted EPS was $0.90, including $0.02 of restructuring charges and $0.01 of losses on certain investment securities sold[18] - Adjusted revenue increased by 2.1% compared to the previous quarter[40] - Average loans increased by 2.0% linked quarter[41] - Average deposits increased by 2.1% linked quarter[44] Business Segments - Consumer & Small Business Banking net interest income was $2.4 billion, up $74 million or 3.2% from the prior quarter[74] - Wholesale Banking average loans increased by $2.6 billion, or 1.5%, primarily related to an increase in C&I balances[78] - Wholesale Banking average deposits increased by $5.4 billion, or 3.7%, related to large, short-term client inflows[78] Digital Growth - Digital share of new-to-bank clients reached 43%, a +900 bps increase[26] - Digital transactions increased by 9% to 87 million[32] - Zelle transactions increased by 19% to 38 million[32] Capital and Credit Quality - CET1 ratio was 11.0%[18] - The company repurchased $750 million of common stock and is targeting $500 million in 3Q25[19] - Net charge-offs (NCOs) were 0.51%[18] Outlook - The company expects adjusted revenue to increase by 2.5% to 3.5% in 3Q25 compared to 2Q25[68] - The company expects adjusted expenses to increase by approximately 1% in 3Q25 compared to 2Q25[68]

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CHARLOTTE, N.C., July 18, 2025 /PRNewswire/ -- Truist Financial Corporation (NYSE: TFC) reported its second quarter 2025 results today. Investors can access the live second quarter 2025 earnings call at 8 a.m. ET today by webcast or dial-in as follows: Webcast: app.webinar.net/z5gqlB9OVNL Dial-in: 1-877-883-0383, passcode 5911048The earnings release, investor presentation, including an appendix reconciling non-GAAP disclosures, and Truist's Second Quarter 2025 Quarterly Performance Summary, which contains d ...

Group 1 - Truist Financial Corporation will redeem all $1.5 billion of its floating rate senior notes due July 28, 2026 on July 28, 2025 [1] - The redemption price will be 100% of the principal amount plus accrued and unpaid interest, with interest ceasing to accrue after the redemption date [2] - Truist is a leading U.S. commercial bank with total assets of $536 billion as of March 31, 2025, and offers a wide range of financial services [3]

Core Insights - Truist Financial (TFC) is set to announce its second-quarter 2025 results on July 18, with a positive lending environment despite macroeconomic uncertainties [1] Lending and Loan Growth - Strong growth in commercial and industrial (C&I) loans, which make up nearly 50% of TFC's total loans, alongside decent demand for consumer loans, accounting for almost 40% of total loans [2] - The consensus estimate for TFC's average earning assets in Q2 is $478.4 billion, reflecting a slight increase from the previous year [3] Net Interest Income and Margins - The Federal Reserve maintained interest rates at 4.25-4.5%, which is expected to positively impact TFC's net interest income (NII) and net interest margin due to higher rates and loan growth [4] - The consensus estimate for Q2 NII is $3.58 billion, indicating a 1.4% year-over-year increase [4] Non-Interest Income Estimates - Service charges on deposits are estimated at $234 million, showing a marginal rise from the previous year, while card and payment-related fees are expected to decline by 2.2% to $225 million [6] - Mortgage banking income is projected to rise significantly, with a consensus estimate of $113 million, reflecting a 34.5% increase year-over-year [7] Fee Income and Expenses - Investment banking and trading income is estimated at $266 million, indicating a 7% year-over-year decline, while lending-related fees are expected to rise by 4.5% to $93 million [8][9] - Total non-interest income is projected at $1.41 billion, showing growth from the prior year [10] Cost and Expense Projections - Non-interest expenses are anticipated to rise by 5.5% year-over-year, with total adjusted non-interest expenses estimated at $2.96 billion [13] - Management expects adjusted expenses to increase by 2-3% sequentially due to higher personnel costs [13] Asset Quality and Credit Losses - TFC is likely to have set aside significant provisions for potential delinquent loans, with an estimated provision for credit losses of $407.9 million, reflecting a 9.6% year-over-year decline [14] - The consensus estimate for total non-accrual loans and leases is $1.56 billion, suggesting a 9.6% year-over-year increase [15] Earnings and Sales Expectations - The consensus estimate for TFC's earnings is 92 cents per share, indicating a 1.1% rise from the previous year, while sales are projected at $4.98 billion, reflecting a marginal year-over-year increase [17]