Core Insights - Truist is making a significant investment to enhance its branch network and client experience, focusing on growth in high-potential markets [1][3] - The company aims to create a digitally empowering and relational experience for clients, leveraging AI-driven insights and personalized financial planning [2][4] Investment and Growth Strategy - Truist plans to open 100 new insights-driven branches and renovate over 300 existing branches in economically vibrant markets such as Atlanta, Austin, Charlotte, Dallas, Miami, Orlando, Philadelphia, and Washington, D.C. over the next five years [1] - The new branch models will feature smart design and integrated technology to foster deeper relationships with mass affluent clients [1] Client Experience Enhancement - The company is focused on delivering a more distinctive client experience through various initiatives, including AI-driven analytics for personalized insights and marketing offers [4] - Truist is enhancing its digital tools, including a more intuitive account opening process and improved scheduling tools for appointments [4] AI and Digital Tools - Truist's AI-driven Truist Insights platform will deliver over 550 million personalized financial insights annually, assisting clients with cash-flow summaries and proactive balance monitoring [4] - The company is developing Truist Client Pulse, a patent-pending AI tool to aggregate client feedback and identify trends [4] Market Position - Truist Financial Corporation is a purpose-driven financial services company with total assets of $544 billion as of June 30, 2025, and holds a leading market share in many high-growth U.S. markets [5]

Core Insights - The Inspire Awards aim to elevate innovative ideas that assist individuals in improving their lives and careers, with a focus on mid- and late-career workforce challenges [1] - Robin Roberts will host the event, bringing her storytelling skills to highlight six impactful nonprofit organizations [1] - Virtual attendees will have the chance to vote in real time, contributing to an additional $75,000 grant awarded by the Truist Foundation [1] Truist Foundation Overview - The Truist Foundation, established in 2020, operates independently from Truist Financial Corporation and focuses on strategic investments in nonprofits [3] - The foundation's initiatives center around two main areas: creating career pathways for economic mobility and strengthening small businesses [3] - The Inspire Awards and Where It Starts are key initiatives of the foundation, reflecting its commitment to community development [3] Grant Awards - The Inspire Awards will distribute a total of $250,000 for the First Place Grant, $150,000 for the Second Place Grant, and $25,000 each for the Runners-up [4]

Financial Performance - Net income from continuing operations for the three months ended June 30, 2025, was $1,240 million, a significant recovery from a loss of $3,906 million in the same quarter of 2024[22]. - Net income for the six months ended June 30, 2025, was $2,501 million, an increase from $2,122 million in the same period of 2024, representing a growth of approximately 17.9%[29]. - For the three months ended June 30, 2025, net income available to common shareholders was $1,180 million, compared to a loss of $3,983 million in the same period of 2024[152]. - Net income available to common shareholders for Q2 2025 was $1.2 billion, up 43% compared to Q2 2024[176]. - The company reported total noninterest income for the six months ended June 30, 2025, was $2,792 million, compared to a loss of $3,766 million in the same period of 2024, indicating a strong turnaround[22]. Asset and Liability Management - Total assets increased to $543,833 million as of June 30, 2025, up from $531,176 million at December 31, 2024, representing a growth of 2.5%[19]. - Total liabilities rose to $478,993 million as of June 30, 2025, from $467,497 million at December 31, 2024, marking an increase of 2.1%[19]. - Shareholders' equity increased to $64,840 million as of June 30, 2025, up from $63,679 million at December 31, 2024, reflecting a growth of 1.8%[19]. - The total long-term debt increased significantly from $34,956 million on December 31, 2024, to $44,427 million by June 30, 2025[87]. Credit Quality and Risk Management - The provision for credit losses was $488 million for the three months ended June 30, 2025, compared to $451 million in the same period of 2024, indicating a slight increase in credit risk management[22]. - Nonperforming loans totaled $1,251 million as of June 30, 2025, compared to $1,429 million as of December 31, 2024, showing a decrease of approximately 12.5%[50][51]. - The allowance for credit losses (ACL) increased to $5.110 billion, reflecting a provision of $451 million[56]. - The net charge-off ratio was 51 basis points, down seven basis points compared to Q2 2024[187]. Income and Expense Analysis - Net interest income after provision for credit losses was $3,099 million for the three months ended June 30, 2025, compared to $3,076 million for the same period in 2024, reflecting a slight increase of 0.7%[22]. - Noninterest expense decreased by $108 million, or 3.5%, for Q2 2025 compared to Q2 2024[180]. - Noninterest income for Q2 2025 was $1.4 billion, down $20 million, or 1.4%, compared to Q2 2024, excluding securities losses[179]. - The company returned $1.4 billion to common shareholders through dividends and share repurchases in Q2 2025[175]. Securities and Investments - The total amortized cost of available-for-sale (AFS) securities was $71.741 billion, with a net unrealized loss of $5.351 billion, resulting in a fair value of $66.390 billion[45]. - The total for consumer loans was $57.828 billion, with residential mortgages contributing $56.477 billion[53]. - The total for indirect auto loans was $24.558 billion, with gross charge-offs recorded at $281 million[53]. - The fair value of U.S. Treasury securities was $2,973 million with unrealized losses of $32 million as of June 30, 2025[48]. Strategic Initiatives and Changes - Truist Financial Corporation completed the sale of its remaining stake in TIH for an enterprise value of $15.5 billion, with the sale finalized on May 6, 2024[37]. - Truist's divestiture of TIH is part of a strategic shift that significantly affected its operations and financial results[37]. - The company is evaluating the impact of new accounting standards on its financial disclosures, particularly regarding income tax disclosures and expense disaggregation[35]. - Truist authorized a stock repurchase of up to $5.0 billion starting Q3 2024 through 2026, with $1.3 billion repurchased in the first half of 2025, representing 31.5 million shares[91]. Economic Outlook and Forecast - The overall economic forecast includes a 40% baseline, 30% optimistic, and 30% pessimistic weighting, reflecting a dynamic adjustment to current economic conditions[60]. - The economic outlook reflects risks related to tariffs and inflation, with a forecasted mid-to-high single-digit unemployment rate[60]. - The company expects $173 million of after-tax net loss on active and terminated cash flow hedges to be reclassified into earnings in the next 12 months[144].

Core Viewpoint - Truist Financial Corporation is enhancing its leadership and expanding its wealth management services in Florida to drive growth and strengthen client relationships in key markets [2][4]. Leadership Changes - Scott Cathcart has been appointed as the regional president of Florida, responsible for leading the commercial banking teams across the state [2][4]. - Javier Suarez has been named the market president for Miami-Dade and the Florida Keys, reporting to Cathcart [3][4]. Strategic Growth Initiatives - The company aims to deepen and expand client relationships in wealth management, payments, and commercial banking [2][4]. - The appointments of Cathcart and Suarez are part of Truist's strategy to enhance its presence and client relationships in Florida [4]. Wealth Management Expansion - Truist Wealth has added six new advisors to its Florida team to cater to affluent, high-net-worth individuals, families, and business owners [5][6]. - The new advisors are expected to provide personalized, strategic guidance aligned with clients' long-term plans [6]. Company Overview - Truist Financial Corporation is a purpose-driven financial services company with total assets of $544 billion as of June 30, 2025 [10]. - The company offers a wide range of products and services, including commercial and corporate banking, investment banking, and wealth management [10][11].

Core Insights - Truist Foundation's grantmaking strategy, launched in 2020, focuses on strengthening small businesses and building career pathways to enhance economic mobility and community well-being [1][4] - The Foundation emphasizes a transparent grantmaking process, measurement, capacity building, and ecosystem support to drive upward economic mobility in underfunded regions [2][3] Funding Impact - Since 2021, Truist Foundation's strategic funding has created or retained 26,800 jobs, provided support services to nearly 26,000 workers, supported over 18,000 small businesses, and placed nearly 16,000 workers into jobs [5] - The Foundation's approach aims to unlock quality jobs and elevate small business ecosystems, demonstrating a scalable model for other funders [1][2] Organizational Commitment - Truist Foundation is dedicated to fulfilling Truist Financial Corporation's purpose of inspiring and building better lives and communities through strategic investments in nonprofit organizations [4] - The Foundation's initiatives, such as the Inspire Awards and Where It Starts, reflect its commitment to enhancing economic opportunities for all [4]

Core Insights - Truist Financial (NYSE: TFC) shares have shown modest performance over the past year, remaining essentially flat due to concerns about unrealized losses on securities, which have countered the positive impact of increasing capital returns [1] Company Performance - The stock has been trading flat, indicating a lack of significant movement in its share price over the past year [1] - Ongoing concerns regarding unrealized losses on securities have been a major factor affecting the stock's performance [1] - Despite these concerns, there has been an increase in capital returns, which typically would support stock price appreciation [1]

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]