Core Insights - Investor fears regarding worsening credit conditions eased as regional bank earnings provided relief after a significant market downturn [1][2] - The KBW regional bank index rose after a sharp decline of 6% on Thursday, marking its worst single-day pullback since April [1] Group 1: Regional Bank Earnings - Investors reacted positively to earnings reports from regional banks such as Truist Financial, Fifth Third Bancorp, Huntington Bancshares, and Ally Financial, with most stocks rising in early trading [2] - Loan loss provisions were lower than analysts' expectations for most banks, except for Huntington [2] Group 2: Credit Quality and Risks - Trust CEO Bill Rogers stated that overall credit quality remains strong, despite some idiosyncratic events in the market [3] - The scrutiny of regional banks increased after Western Alliance and Zions disclosed bad loans linked to fraud, causing significant stock declines [4] - Concerns were heightened by recent bankruptcies in the auto lending sector, with Fifth Third reporting a $200 million increase in net charge-offs compared to the previous quarter [6] Group 3: Market Reactions - Stocks of Western Alliance and Zions recovered on Friday after their initial declines, along with Jefferies Financial, which was affected by an auto parts supplier's bankruptcy [4] - Investors in the sector tend to react quickly to credit concerns, often selling first and asking questions later [5]

Core Insights - Truist Financial's (TFC) Q3 2025 earnings per share (EPS) of $1.04 exceeded the Zacks Consensus Estimate of 99 cents, marking an increase from adjusted earnings of 97 cents in the same quarter last year [1][9] - The results were positively influenced by a slight rise in net interest income (NII) and strong fee income performance, although challenges included lower average deposit balances and increased non-interest expenses [2][12] Financial Performance - Total revenues for the quarter reached $5.19 billion, reflecting a 2% year-over-year increase and slightly surpassing the Zacks Consensus Estimate of $5.15 billion [3] - Tax-equivalent NII increased nominally to $3.68 billion, while the net interest margin (NIM) declined by 11 basis points to 3.01% [3] - Non-interest income rose by 5.1% to $1.56 billion, driven by higher mortgage banking income and service charges [4] Expense Analysis - Non-interest expenses totaled $3.01 billion, up 3% year-over-year, primarily due to increased personnel and equipment expenses [4] - The adjusted efficiency ratio increased to 55.7%, indicating a decline in profitability compared to 55.2% in the prior-year quarter [5] Credit Quality - Provision for credit losses decreased by 2.7% to $436 million, with net charge-offs at 0.48% of average loans and leases, down 7 basis points from the previous year [6] - Total non-performing assets (NPAs) rose by 6.6% year-over-year to $1.63 billion, exceeding expectations [7] Profitability and Capital Ratios - Return on average common equity was 9%, slightly down from 9.1% in Q3 2024 [10] - The Tier 1 risk-based capital ratio was 12.3%, down from 13.2% in the prior-year quarter, while the common equity Tier 1 ratio decreased to 11% [10] Shareholder Actions - In Q3 2025, Truist Financial repurchased shares worth $500 million, reflecting a commitment to returning value to shareholders [11] Future Outlook - The company anticipates that decent loan demand and ongoing business restructuring initiatives will support revenue growth, although elevated expenses remain a significant challenge [12]

Financial Data and Key Metrics Changes - The company reported net income available to common shareholders of $1,300,000,000 or $1.04 per share, which included $0.02 per share of restructuring charges primarily related to severance [5][15] - Average loan balances increased by 2.5% linked quarter, with broad-based growth across wholesale and consumer segments [6][17] - Average deposit balances decreased by $3,900,000,000 or 1% linked quarter due to the withdrawal of large M&A related client deposits [18] - Adjusted non-interest income increased by 9.9% linked quarter to over $1,500,000,000, driven by strong investment banking and trading income [7][21] - The company maintained a strong capital position, returning $1,200,000,000 to shareholders through dividends and stock repurchases [9][26] Business Line Data and Key Metrics Changes - Consumer and small business banking saw net new checking account growth with over 20,000 new accounts added in the third quarter [10] - Average consumer and small business deposit balances increased modestly by 1.9% year over year, while average loan balances increased by 7% year over year [11] - In wholesale banking, average wholesale loans increased by 2.8% linked quarter and 4.8% year over year, driven by new client acquisition [13] - Wealth management reported a 27% year-to-date increase in assets under management from wholesale and premier clients [14] Market Data and Key Metrics Changes - Digital transactions rose by 7% year over year, with digital channels accounting for 40% of new clients, particularly among Gen Z and millennials [12] - The company experienced strong growth in treasury management revenue, which increased by 11% year over year [14] Company Strategy and Development Direction - The company announced a strategic investment to build 100 new insight-driven branches in high-growth markets and enhance digital capabilities [5] - The focus remains on deepening relationships with existing clients and attracting new clients through personalized, technology-enabled experiences [5][10] - The company aims to achieve a 15% return on tangible common equity (ROTCE) by 2027, with plans to increase share repurchases significantly in 2026 [9][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to accelerate growth and profitability, expecting revenue growth in 2026 to more than double compared to 2025 [29] - The outlook for net interest income is positive, with expectations for growth driven by loan growth and lower deposit costs [19][26] - Management emphasized a strong credit risk culture and proactive approach to managing asset quality, maintaining strong credit metrics [24][96] Other Important Information - The company plans to target approximately $750,000,000 in share repurchases during the fourth quarter [9][26] - The CET1 capital ratio remained stable at 11%, with an improvement in the CET1 ratio including AOCI by 10 basis points to 9.4% [16] Q&A Session Summary Question: Revenue growth expectations for 2026 - Management indicated that revenue growth in 2026 is expected to more than double compared to 2025, with both net interest income and fee income contributing positively [37][42] Question: Deposit pricing and growth momentum - Management expressed confidence in deposit pricing and growth momentum, anticipating improvements due to recent Fed rate cuts and strong client acquisition [50][55] Question: Credit quality perspective - Management stated that overall credit quality remains strong, with a focus on high-quality assets in both wholesale and consumer spaces [96][100] Question: Capital levels and buyback flexibility - Management confirmed flexibility in buybacks, indicating that the $750,000,000 target is a floor, with potential for increases based on market conditions [104][106] Question: Nonaccrual loans in C&I - Management addressed concerns regarding nonaccrual loans, clarifying that the increase is related to specific exposures but overall credit quality remains robust [114][96]

Financial Data and Key Metrics Changes - The company reported net income available to common shareholders of $1.3 billion, or $1.04 per share, which included $0.02 per share of restructuring charges primarily related to severance [4][12] - Adjusted revenue increased by 3.7% late in the quarter, driven by a 9.9% growth in non-interest income and a 1.2% growth in net interest income [12][22] - Average loan balances increased by 2.5%, while average deposit balances decreased by $3.9 billion sequentially, or 1% [5][14] - The company returned $1.2 billion of capital to shareholders through dividends and stock repurchases, with plans to target approximately $750 million in share repurchases during the fourth quarter [7][22] Business Line Data and Key Metrics Changes - Consumer and small business banking saw net new checking account growth with over 20,000 new accounts added, and average loan balances increased by 2% late in the quarter [9][10] - Wholesale loans increased by 2.8% late in the quarter, driven by growth from new and existing clients [10][11] - Wealth management income increased by 7.5% late in the quarter due to higher market values and positive net asset flows [18] Market Data and Key Metrics Changes - Digital transactions rose by 7% year over year, with digital channels accounting for 40% of new clients, particularly among Gen Z and Millennials [10] - The company experienced broad-based growth across industry banking verticals, with significant increases in loan and deposit production per banker [11] Company Strategy and Development Direction - The company announced a strategic investment to build 100 new branches in high-growth markets and enhance digital capabilities [3][4] - The focus remains on deepening relationships with existing clients and attracting new clients through technology-enabled experiences [4][26] - The company aims to achieve a 15% ROTCE by 2027, reflecting confidence in long-term earnings power and strategic direction [24][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to reach a 15% ROTCE by 2027, with expectations for revenue growth in 2026 to more than double compared to 2025 [24][26] - The company anticipates continued loan growth and improved client deposit growth in the fourth quarter and into 2026 [14][22] Other Important Information - The company maintained strong asset quality metrics, with net charge-offs declining both on a late quarter and year-over-year basis [7][19] - The CET1 capital ratio remained stable at 11%, with an improved CET1 ratio including AOCI at 9.4% [12] Q&A Session Summary Question: Revenue growth expectations for 2026 - Management indicated that revenue growth is expected to more than double in 2026 compared to 2025, with both net interest income and fee income contributing to this growth [32][34] Question: Deposit pricing outlook with Fed rate cuts - Management expressed optimism about deposit pricing and growth momentum, anticipating improvements in interest-bearing deposit beta due to recent Fed rate cuts [38][40] Question: Credit quality perspective - Management stated that overall credit quality remains strong, with a focus on high-quality assets in both wholesale and consumer spaces [70][73] Question: Capital levels and buyback flexibility - Management confirmed flexibility in buybacks, with a target of $750 million for the fourth quarter, while maintaining a conservative capital structure [78] Question: Non-accrual loans and First Brands exposure - Management acknowledged that the increase in non-accrual loans includes exposure to First Brands, which has been accounted for in the forward guidance [87][90]

Core Insights - The third quarter earnings season has begun, with analysts expecting a 7.9% increase in earnings per share for S&P 500 companies, marking the ninth consecutive quarter of positive growth but a slowdown from the 12% growth in Q2 [1][2] Financial Institutions Performance - Major banks including JPMorgan Chase, Goldman Sachs, Wells Fargo, Citigroup, and BlackRock reported their quarterly results, with additional reports from Bank of America, Morgan Stanley, and others following [2][4] - Ally Financial reported earnings per share of $1.18, exceeding estimates of $0.96, with revenue of $2.17 billion surpassing expectations of $2.10 billion [7][8] - Truist's net income rose to $1.3 billion, or $1.04 per diluted share, beating analyst estimates of $0.99 per share, with noninterest income increasing 11% to $158 million [9][10] - Comerica's net interest income grew over 7% to $574 million, while noninterest income declined to $264 million due to slower capital markets activity [11][12] - Fifth Third reported net interest income of $1.52 billion, a 7% year-over-year increase, with earnings per share growing 17% to $0.91, surpassing estimates of $0.86 [14][15] - U.S. Bancorp reported net income of $2.00 billion, or $1.22 per share, beating estimates and achieving record revenue of $7.3 billion [22][23] - Charles Schwab's earnings were $1.26 per share, with record revenue of $6.13 billion, a 27% year-over-year increase [24][25] Technology Sector Insights - Taiwan Semiconductor Manufacturing Company (TSMC) reported a 39% year-over-year profit surge in Q3 and raised its 2025 revenue outlook, anticipating mid-30% annual sales growth [27][28] - TSMC's revenue reached approximately $32.2 billion, exceeding estimates, with earnings per share of $2.92 also beating expectations [28][29] Other Notable Earnings Reports - Morgan Stanley's profits surged 45% in Q3, driven by a 44% increase in deal-making fees to $2.1 billion and a 24% rise in trading fees [36][37][38] - Citigroup's net income for Q3 was $3.8 billion, or $1.86 per diluted share, with total revenue growing 9% to $22.1 billion, driven by increased deal-making and trading activities [46][47]

Financial Performance - Net income available to common shareholders was $1.3 billion, or $1.04 per share in 3Q25[21, 29] - The company repurchased $500 million of common stock in 3Q25 and is targeting $750 million in 4Q25[21, 58] - Adjusted revenue increased by 3.7% compared to 2Q25[28] - The company is targeting a 15% ROTCE in 2027[21, 62] Loan and Deposit Trends - Average loans increased by 2.5% linked quarter, driven by broad-based growth in wholesale and consumer lending[21, 30] - Average deposits decreased by 1.0% linked quarter[33] - The company expects to reprice approximately $11 billion of fixed rate loans and $3 billion of investment securities during 4Q25[46] Business Segment Highlights - Consumer & Small Business Banking net income was $663 million in 3Q25[65, 67] - Wholesale Banking net income was $1.2 billion in 3Q25[68, 69] - Investment banking & trading fees were up 58% compared to 2Q25[24] Outlook - The company expects adjusted revenue to increase by 1% to 2% in 4Q25 compared to 3Q25[58] - The company expects adjusted expenses to remain stable in 4Q25 compared to 3Q25[58] - The company anticipates net interest income to increase approximately 2% in 4Q25[46]

Core Insights - Truist Financial reported an increase in third-quarter profit, attributed to a robust wealth management segment and higher interest income, resulting in a 2% rise in shares during premarket trading [1] Financial Performance - The third-quarter profit of Truist Financial saw a notable rise, indicating strong performance in its financial operations [1] - The wealth management segment played a significant role in driving profit growth, highlighting its importance to the company's overall strategy [1] - Increased interest income contributed positively to the financial results, reflecting favorable market conditions [1]

Group 1 - The article does not provide any specific information or data regarding companies or industries [1]

[Financial Highlights](index=3&type=section&id=Financial%20Highlights) Q3 2025 highlights show increased net income, diluted EPS, return on average assets, and nonperforming loans, with decreased total deposits Summary Income Statement (Dollars in millions, except per share data) | Metric | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | | :------------------------------------- | :------------- | :------------ | :------------- | | Net interest income | $3,629 | $3,587 | $3,507 | | Noninterest income | $1,558 | $1,400 | $1,392 | | Noninterest expense | $3,014 | $2,986 | $2,906 | | Net income available to common shareholders | $1,348 | $1,180 | $1,157 | | Earnings per share-diluted from continuing operations | $1.04 | $0.90 | $0.87 | | Revenue - taxable equivalent | $5,238 | $5,035 | $4,947 | | Return on average assets | 1.06 % | 0.93 % | 0.96 % | | Return on average common shareholders' equity | 9.0 % | 8.1 % | 8.1 % | | Net interest margin - taxable equivalent | 3.01 % | 3.02 % | 3.01 % | | Efficiency ratio-adjusted | 55.7 % | 57.1 % | 56.4 % | Key Balance Sheet Metrics (Dollars in millions) | Metric | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | | :-------------------------- | :------------- | :------------ | :------------- | | Total Assets | $543,851 | $543,833 | $535,899 | | Loans and leases | $325,663 | $319,999 | $309,752 | | Deposits | $394,907 | $406,122 | $403,736 | | Common shareholders' equity | $59,739 | $58,933 | $58,728 | | Common equity tier 1 ratio | 11.0 % | 11.0 % | 11.3 % | | Liquidity coverage ratio | 110 % | 110 % | 111 % | Credit Quality Indicators | Metric | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | | :------------------------------------------------- | :------------- | :------------ | :------------- | | Nonperforming loans and leases as % of LHFI | 0.48 % | 0.39 % | 0.48 % | | Net charge-offs as % of average LHFI | 0.48 % | 0.51 % | 0.60 % | | Allowance for loan and lease losses as % of LHFI | 1.54 % | 1.54 % | 1.58 % | | Ratio of allowance for loan and lease losses to nonperforming LHFI | 3.2x | 3.9x | 3.3x | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Q3 2025 Consolidated Statements of Income show increased interest and noninterest income, driven by investment banking, resulting in higher net income Consolidated Statements of Income (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total interest income | $6,286 | $6,154 | $5,988 | $6,179 | $6,352 | | Total interest expense | $2,657 | $2,567 | $2,481 | $2,589 | $2,750 | | Net Interest Income | $3,629 | $3,587 | $3,507 | $3,590 | $3,602 | | Provision for credit losses | $436 | $488 | $458 | $471 | $448 | | Total noninterest income | $1,558 | $1,400 | $1,392 | $1,470 | $1,483 | | Total noninterest expense | $3,014 | $2,986 | $2,906 | $3,035 | $2,927 | | Net income available to common shareholders | $1,348 | $1,180 | $1,157 | $1,216 | $1,336 | | Earnings per share-diluted | $1.04 | $0.90 | $0.87 | $0.91 | $0.99 | - **Investment banking and trading income significantly increased to $323 million** in Q3 2025 from $205 million in Q2 2025, contributing to the rise in total noninterest income[6](index=6&type=chunk) - **Personnel expense, the largest component of noninterest expense, increased to $1,726 million** in Q3 2025 from $1,653 million in Q2 2025[6](index=6&type=chunk) [Consolidated Ending Balance Sheets - Five Quarter Trend](index=6&type=section&id=Consolidated%20Ending%20Balance%20Sheets) Q3 2025 consolidated balance sheet shows stable total assets, increased loans and leases, decreased deposits, and higher shareholders' equity Consolidated Ending Balance Sheets (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total assets | $543,851 | $543,833 | $535,899 | $531,176 | $523,434 | | Total loans and leases | $325,663 | $319,999 | $309,752 | $307,771 | $304,362 | | Total deposits | $394,907 | $406,122 | $403,736 | $390,524 | $387,778 | | Total liabilities | $478,205 | $478,993 | $471,264 | $467,497 | $457,738 | | Total shareholders' equity | $65,646 | $64,840 | $64,635 | $63,679 | $65,696 | | Noninterest-bearing deposits | $106,197 | $106,442 | $108,461 | $107,451 | $105,984 | | Interest checking deposits | $109,827 | $118,122 | $118,043 | $109,042 | $109,493 | | Money market and savings deposits | $135,931 | $133,891 | $136,777 | $137,307 | $134,349 | | Time deposits | $42,952 | $47,667 | $40,455 | $36,724 | $37,952 | - **Commercial and industrial loans increased to $163,607 million** in Q3 2025 from $162,273 million in Q2 2025[7](index=7&type=chunk) - **Securities available for sale at fair value decreased to $65,522 million** in Q3 2025 from $66,390 million in Q2 2025[7](index=7&type=chunk) [Average Balances and Rates](index=7&type=section&id=Average%20Balances%20and%20Rates) This section analyzes average balances and associated yields/rates for earning assets and interest-bearing liabilities [Average Balances and Rates - Quarters](index=7&type=section&id=Average%20Balances%20and%20Rates%20-%20Quarters) This section details quarterly average balances and yields for earning assets and interest-bearing liabilities, showing increased assets and rates, with a minor decrease in net interest margin Average Balances and Rates - Quarters (Dollars in millions) | Item | Sept. 30, 2025 (Avg Balances / Yields/Rates) | June 30, 2025 (Avg Balances / Yields/Rates) | March 31, 2025 (Avg Balances / Yields/Rates) | | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Total earning assets | $486,006 / 5.18 % | $480,983 / 5.16 % | $476,214 / 5.12 % | | Total loans and leases | $322,070 / 6.00 % | $313,841 / 6.01 % | $307,528 / 5.97 % | | Total interest-bearing liabilities | $359,103 / 2.94 % | $354,251 / 2.91 % | $349,059 / 2.88 % | | Total interest-bearing deposits | $290,849 / 2.50 % | $293,797 / 2.52 % | $286,309 / 2.46 % | | Net interest income - taxable equivalent | $3,680 / 3.01 % | $3,635 / 3.02 % | $3,555 / 3.01 % | - The average interest-rate spread increased slightly to **2.24% in Q3 2025** from **2.25% in Q2 2025**[9](index=9&type=chunk) [Average Balances and Rates - Year-To-Date](index=8&type=section&id=Average%20Balances%20and%20Rates%20-%20Year-To-Date) This section compares year-to-date average balances and rates for earning assets and interest-bearing liabilities, showing increased assets and loans with decreased yields, and increased liabilities with decreased rates, resulting in a stable net interest margin Average Balances and Rates - Year-to-Date (Dollars in millions) | Item | Sept. 30, 2025 (Avg Balances / Yields/Rates) | Sept. 30, 2024 (Avg Balances / Yields/Rates) | | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Total earning assets | $481,104 / 5.15 % | $472,237 / 5.38 % | | Total loans and leases | $314,533 / 5.99 % | $307,186 / 6.41 % | | Total interest-bearing liabilities | $354,175 / 2.91 % | $341,517 / 3.28 % | | Total interest-bearing deposits | $290,335 / 2.49 % | $279,609 / 2.86 % | | Net interest income - taxable equivalent | $10,870 / 3.01 % | $10,662 / 3.01 % | - The year-to-date average interest-rate spread for Sept. 30, 2025, was **2.24%**, an increase from **2.10%** for Sept. 30, 2024[11](index=11&type=chunk) [Credit Quality](index=9&type=section&id=Credit%20Quality) This section overviews credit quality, detailing trends in nonperforming assets, past due loans, asset quality ratios, and the allowance for credit losses [Nonperforming Assets](index=9&type=section&id=Nonperforming%20Assets) This section outlines the trend in nonperforming assets, showing a Q3 2025 increase driven by a significant rise in nonaccrual commercial and industrial loans Nonperforming Assets (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total nonaccrual loans and leases | $1,571 | $1,263 | $1,565 | $1,429 | $1,472 | | Commercial and industrial nonaccrual loans | $800 | $520 | $586 | $521 | $575 | | Total nonperforming assets | $1,629 | $1,316 | $1,618 | $1,477 | $1,528 | [Loans 90 Days or More Past Due and Still Accruing](index=9&type=section&id=Loans%2090%20Days%20or%20More%20Past%20Due%20and%20Still%20Accruing) This section details loans significantly past due but still accruing interest, showing a Q3 2025 increase driven by government-guaranteed residential mortgage loans Loans 90 Days or More Past Due and Still Accruing (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total loans 90 days past due and still accruing | $584 | $546 | $616 | $587 | $518 | | Residential mortgage - government guaranteed | $438 | $424 | $468 | $430 | $394 | [Loans 30-89 Days Past Due](index=9&type=section&id=Loans%2030-89%20Days%20Past%20Due) This section presents data on early-stage delinquencies (30-89 days past due loans), showing a Q3 2025 decrease in total loans but an increase in indirect auto loans Loans 30-89 Days Past Due (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total loans 30-89 days past due | $1,743 | $1,811 | $1,619 | $1,949 | $1,769 | | Indirect auto loans 30-89 days past due | $620 | $582 | $484 | $622 | $596 | | Residential mortgage - nonguaranteed 30-89 days past due | $344 | $365 | $347 | $401 | $366 | [Asset Quality Ratios](index=10&type=section&id=Asset%20Quality%20Ratios) This section presents key asset quality ratios, indicating stable nonperforming loans, decreased net charge-offs, and a reduced coverage ratio of allowance for loan losses to nonperforming loans Asset Quality Ratios | Ratio | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------------- | :------------- | :------------ | :------------- | :------------ | :------------- | | Loans 30-89 days past due and still accruing as a % of loans and leases | 0.54 % | 0.57 % | 0.52 % | 0.64 % | 0.58 % | | Nonperforming loans and leases as a % of loans and leases | 0.48 % | 0.39 % | 0.48 % | 0.47 % | 0.48 % | | Net charge-offs as a % of average loans and leases | 0.48 % | 0.51 % | 0.60 % | 0.59 % | 0.55 % | | Allowance for loan and lease losses as a % of loans and leases | 1.54 % | 1.54 % | 1.58 % | 1.59 % | 1.60 % | | Ratio of allowance for loan and lease losses to nonperforming loans and leases | 3.2X | 3.9X | 3.3X | 3.4X | 3.3X | Asset Quality Ratios (Year-to-Date) | Ratio | Period Ended Sept. 30, 2025 | Period Ended Sept. 30, 2024 | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Net charge-offs as a % of average loans and leases | 0.53 % | 0.59 % | | Ratio of allowance for loan and lease losses to net charge-offs | 3.0X | 2.7X | [Allowance for Credit Losses](index=11&type=section&id=Allowance%20for%20Credit%20Losses) This section details the allowance for credit losses, showing an increased Q3 2025 ending balance, with decreased provision for credit losses and total net charge-offs, particularly in commercial and industrial, and credit card categories Allowance for Credit Losses (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Beginning balance | $5,253 | $5,166 | $5,161 | $5,140 | $5,110 | | Provision for credit losses | $436 | $488 | $458 | $471 | $448 | | Total charge-offs | $(480) | $(506) | $(557) | $(553) | $(528) | | Total recoveries | $95 | $110 | $103 | $100 | $110 | | Net charge-offs | $(385) | $(396) | $(454) | $(453) | $(418) | | Ending balance | $5,305 | $5,253 | $5,166 | $5,161 | $5,140 | | Allowance for loan and lease losses | $4,988 | $4,899 | $4,870 | $4,857 | $4,842 | | Reserve for unfunded lending commitments (RUFC) | $317 | $354 | $296 | $304 | $298 | Net Charge-offs as a Percentage of Average Loans and Leases | Category | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :-------------------------- | :------------- | :------------ | :------------- | :------------ | :------------- | | Commercial and industrial | 0.19 % | 0.22 % | 0.20 % | 0.27 % | 0.18 % | | CRE | 0.44 % | 0.71 % | 1.29 % | 0.66 % | 1.12 % | | Indirect auto | 1.99 % | 1.63 % | 2.26 % | 2.33 % | 1.89 % | | Credit card | 3.13 % | 4.84 % | 5.21 % | 5.10 % | 5.04 % | | Total loans and leases | 0.48 % | 0.51 % | 0.60 % | 0.59 % | 0.55 % | [Segment Financial Performance - Preliminary](index=12&type=section&id=Segment%20Financial%20Performance) This section overviews preliminary financial performance across Consumer and Small Business Banking, Wholesale Banking, and Other, Treasury & Corporate segments [Consumer and Small Business Banking](index=12&type=section&id=Consumer%20and%20Small%20Business%20Banking) The Consumer and Small Business Banking segment reported increased Q3 2025 net income, driven by growth in net interest and noninterest income, despite higher allocated provision for credit losses Consumer and Small Business Banking Performance (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Segment net interest income (expense) | $2,452 | $2,358 | $2,284 | $2,495 | $2,530 | | Noninterest income | $530 | $519 | $503 | $535 | $506 | | Allocated provision for credit losses | $400 | $384 | $328 | $347 | $353 | | Total noninterest expense | $1,704 | $1,699 | $1,663 | $1,741 | $1,663 | | Segment net income (loss) | $663 | $601 | $602 | $715 | $776 | [Wholesale Banking](index=12&type=section&id=Wholesale%20Banking) The Wholesale Banking segment showed strong Q3 2025 performance with substantially increased net income, driven by a significant rise in noninterest income and a notable decrease in allocated provision for credit losses, while net interest income remained stable Wholesale Banking Performance (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Segment net interest income (expense) | $1,669 | $1,664 | $1,596 | $1,601 | $1,589 | | Noninterest income | $1,143 | $943 | $948 | $1,038 | $1,047 | | Allocated provision for credit losses | $36 | $104 | $131 | $123 | $96 | | Total noninterest expense | $1,319 | $1,334 | $1,308 | $1,303 | $1,240 | | Segment net income (loss) | $1,150 | $933 | $884 | $973 | $1,040 | [Other, Treasury & Corporate](index=12&type=section&id=Other%2C%20Treasury%20%26%20Corporate) The Other, Treasury & Corporate segment reported an increased Q3 2025 net loss, primarily due to higher negative net interest income and larger negative noninterest income Other, Treasury & Corporate Performance (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Segment net interest income (expense) | $(492) | $(435) | $(373) | $(506) | $(517) | | Noninterest income | $(115) | $(62) | $(59) | $(103) | $(70) | | Total noninterest expense | $(9) | $(47) | $(65) | $(9) | $24 | | Segment net income (loss) | $(361) | $(294) | $(225) | $(399) | $(377) | [Total Truist Financial Corporation](index=12&type=section&id=Total%20Truist%20Financial%20Corporation) This section summarizes Truist Financial Corporation's consolidated performance, showing increased Q3 2025 net income from continuing operations, driven by growth in net interest and noninterest income, despite higher total noninterest expense Total Truist Financial Corporation Performance (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Net interest income (expense) | $3,629 | $3,587 | $3,507 | $3,590 | $3,602 | | Noninterest income | $1,558 | $1,400 | $1,392 | $1,470 | $1,483 | | Provision for credit losses | $436 | $488 | $458 | $471 | $448 | | Total noninterest expense | $3,014 | $2,986 | $2,906 | $3,035 | $2,927 | | Net Income from continuing operations | $1,452 | $1,240 | $1,261 | $1,289 | $1,439 | [Capital Information - Five Quarter Trend](index=13&type=section&id=Capital%20Information) This section analyzes five-quarter trends in key capital metrics, including capital ratios, risk-weighted assets, and tangible common equity [Selected Capital Information](index=13&type=section&id=Selected%20Capital%20Information) This section presents key capital adequacy metrics, showing stable Common Equity Tier 1 and Leverage ratios in Q3 2025, alongside increased risk-weighted assets and common equity per share Selected Capital Information (Dollars in millions, except per share data) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Common equity tier 1 | $48,031 | $47,678 | $47,767 | $48,225 | $48,076 | | Total risk-weighted assets | $438,467 | $434,609 | $424,059 | $418,337 | $414,828 | | Common equity tier 1 ratio | 11.0 % | 11.0 % | 11.3 % | 11.5 % | 11.6 % | | Leverage capital ratio | 10.2 % | 10.2 % | 10.3 % | 10.5 % | 10.8 % | | Common equity per common share | $46.70 | $45.70 | $44.85 | $43.90 | $44.46 | [Calculations of Tangible Common Equity and Related Measures](index=13&type=section&id=Calculations%20of%20Tangible%20Common%20Equity%20and%20Related%20Measures) This section details tangible common equity (non-GAAP) and related ratios, showing increased tangible common equity and per share amounts in Q3 2025, while its percentage of tangible assets remained stable Tangible Common Equity and Related Measures (Dollars in millions, except per share data) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total shareholders' equity | $65,646 | $64,840 | $64,635 | $63,679 | $65,696 | | Intangible assets, net of deferred taxes | $18,076 | $18,143 | $18,203 | $18,274 | $18,350 | | Tangible common equity | $41,663 | $40,790 | $40,525 | $39,498 | $40,673 | | Tangible common equity per common share | $32.57 | $31.63 | $30.95 | $30.01 | $30.64 | | Tangible assets | $525,775 | $525,690 | $517,696 | $512,902 | $505,084 | | Tangible common equity as a percentage of tangible assets | 7.9 % | 7.8 % | 7.8 % | 7.7 % | 8.1 % | [Selected Mortgage Banking Information & Additional Information](index=14&type=section&id=Selected%20Mortgage%20Banking%20Information%20%26%20Additional%20Information) This section provides selected mortgage banking data, including income components and servicing portfolio details, alongside additional operational information [Mortgage Banking Income](index=14&type=section&id=Mortgage%20Banking%20Income) This section details mortgage banking income components, showing an overall Q3 2025 increase, driven by growth in residential and commercial mortgage income, primarily from improved production revenue and MSR valuation Mortgage Banking Income (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total residential mortgage income | $105 | $98 | $102 | $103 | $98 | | Residential mortgage production revenue | $22 | $25 | $19 | $25 | $25 | | Net MSRs valuation (residential) | $9 | $1 | $(4) | $(5) | $(7) | | Total commercial mortgage income | $13 | $9 | $6 | $14 | $8 | | Commercial mortgage production revenue | $10 | $6 | $2 | $12 | $6 | | Total mortgage banking income | $118 | $107 | $108 | $117 | $106 | [Other Mortgage Banking Information](index=14&type=section&id=Other%20Mortgage%20Banking%20Information) This section provides supplementary mortgage banking data, indicating decreased residential mortgage loan originations but an increased total mortgage servicing portfolio in Q3 2025 Other Mortgage Banking Information (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Residential mortgage loan originations | $4,743 | $5,855 | $3,626 | $4,745 | $3,726 | | Total servicing portfolio | $279,670 | $270,750 | $271,268 | $273,412 | $275,424 | | Loans serviced for others | $221,274 | $213,002 | $216,148 | $218,475 | $221,143 | | Bank-owned loans serviced | $58,396 | $57,748 | $55,120 | $54,937 | $54,281 | [Additional Information](index=14&type=section&id=Additional%20Information) This section provides supplementary operational and financial data, indicating decreased brokered deposits and ATMs, stable banking offices, and increased FTEs in Q3 2025 Additional Information (Dollars in millions, except per share data) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Brokered deposits | $28,423 | $30,008 | $27,585 | $28,085 | $27,671 | | Common stock prices (End of period) | $45.72 | $42.99 | $41.15 | $43.38 | $42.77 | | Banking offices | 1,927 | 1,927 | 1,928 | 1,928 | 1,930 | | ATMs | 2,837 | 2,847 | 2,861 | 2,901 | 2,928 | | FTEs | 38,534 | 37,996 | 37,529 | 37,661 | 37,867 | [Selected Items](index=15&type=section&id=Selected%20Items) This section outlines the financial impact of selected items on pre-tax income, after-tax income, and diluted EPS, highlighting recurring restructuring charges and significant gains/losses from prior asset sales Selected Items Impact (Dollars in millions, except per share data) | Description | Quarter Ended | Pre-Tax | After-Tax at Marginal Rate | Impact to Diluted EPS | | :------------------------------------------ | :------------ | :------ | :------------------------- | :-------------------- | | Restructuring charges | Sept. 30, 2025 | $(27) | $(21) | $(0.02) | | Restructuring charges | June 30, 2025 | $(28) | $(21) | $(0.02) | | Loss on sale of securities | June 30, 2025 | $(18) | $(13) | $(0.01) | | Restructuring charges | March 31, 2025 | $(38) | $(29) | $(0.02) | | Gain on sale of TIH | Sept. 30, 2024 | $36 | $16 | $0.01 | | Gain on sale of TIH | June 30, 2024 | $6,903 | $4,814 | $3.60 | | Loss on sale of securities | June 30, 2024 | $(6,650) | $(5,089) | $(3.80) |

Core Insights - Truist Financial Corporation reported its third quarter 2025 results, with a live earnings call accessible to investors [1] - The company is a purpose-driven financial services provider with a strong market presence in high-growth U.S. markets [2] - Truist has total assets of $544 billion as of September 30, 2025, making it a top-10 commercial bank [2] Financial Performance - The third quarter 2025 earnings release and detailed financial schedules are available on Truist's Investor Relations website [1] - A replay of the earnings call will be accessible for 30 days following the live event [1] Company Overview - Truist offers a wide range of financial products and services, including consumer and small business banking, commercial and corporate banking, investment banking, and wealth management [2] - The company is headquartered in Charlotte, North Carolina, and emphasizes its commitment to building better lives and communities [2] Recent Developments - Truist announced the redemption of $750 million in senior notes due October 2026 [3] - The company has made executive hires to enhance its Commercial and Corporate Banking sales efforts [4]