Truist(US:TFC)2025-07-18 10:03Financial Performance - Truist Financial Corporation reported a consolidated net income of $600 million for Q2 2025, representing a 10% increase year-over-year[2]. - The company achieved a return on equity (ROE) of 12%, compared to 11% in Q2 2024[2]. - Net income available to common shareholders for the quarter was $1,180 million, compared to $1,157 million in the prior quarter, representing a 2.0% increase[4]. - Earnings per share (diluted) from continuing operations was $0.90, up from $0.87 in the previous quarter, indicating a 3.4% increase[4]. - The total net income from continuing operations for the quarter was $1,240 million, compared to $1,261 million in the previous quarter[22]. Asset and Loan Growth - Average total assets increased to $200 billion, up 5% from the previous quarter[2]. - Total loans increased by 8% year-over-year, reaching $150 billion[2]. - Total assets at the end of the period were $543,833 million, an increase from $535,899 million in the previous quarter[4]. - Total loans and leases held for investment increased to $318,796 million, compared to $308,638 million in the prior quarter, marking a rise of 3.5%[7]. - Average balances of loans and leases held for investment were $310,702 million, generating $9,243 million in income at a yield of 5.99%[11]. Income and Revenue - Interest income for the quarter ended June 30, 2025, was $6,154 million, an increase from $5,988 million in the previous quarter[4]. - Noninterest income for the quarter was $1,400 million, slightly up from $1,392 million in the previous quarter[4]. - The company expects to achieve revenue growth of 6% for the full year 2025, driven by increased lending and fee income[2]. - Total interest income for the quarter ended June 30, 2025, was $6,154 million, an increase of 2.8% from $5,988 million in the previous quarter[6]. - Total noninterest income reached $1,400 million, showing a slight increase from $1,392 million in the previous quarter[6]. Credit Quality and Losses - Non-performing loans as a percentage of total loans remained stable at 0.5%[2]. - Nonperforming loans and leases as a percentage of loans held for investment (LHFI) decreased to 0.39% from 0.48% in the previous quarter[4]. - The allowance for loan and lease losses stood at $4,899 million, slightly higher than $4,870 million in the previous quarter[7]. - Total charge-offs for the quarter were $506 million, a decrease from $557 million in the previous quarter, while net charge-offs were $396 million[19]. - The net charge-offs as a percentage of average loans and leases stood at 0.51% for the quarter ended June 30, 2025, compared to 0.60% in the previous quarter[19]. Capital and Ratios - The common equity tier 1 ratio was 11.0%, down from 11.3% in the previous quarter[4]. - The liquidity coverage ratio was 110, slightly down from 111 in the previous quarter[4]. - The tangible common equity per common share increased to $31.63 as of June 30, 2025, compared to $30.95 in the previous quarter[22]. - The risk-weighted assets increased to $434,892 million as of June 30, 2025, from $424,059 million in the previous quarter[22]. - The allowance for credit losses increased to $5,253 million as of June 30, 2025, up from $5,166 million at the end of March 2025, reflecting a provision for credit losses of $488 million for the quarter[19]. Strategic Initiatives - The company plans to expand its digital banking services, targeting a 20% increase in online customer engagement by the end of 2025[2]. - Truist is investing $50 million in new technology initiatives to enhance customer experience and operational efficiency[2]. - Truist is exploring strategic acquisitions to enhance its market presence, particularly in the Southeast region of the United States[2]. Mortgage Banking - Total mortgage banking income for Q2 2025 was $107 million, a slight decrease of 0.9% from $108 million in Q1 2025[24]. - Residential mortgage production revenue increased to $25 million in Q2 2025 from $19 million in Q1 2025, representing a 31.6% growth[24]. - Residential mortgage loan originations reached $5,855 million in Q2 2025, significantly higher than $3,626 million in Q1 2025, marking a 61.5% increase[24]. - The total servicing portfolio stood at $270,750 million as of June 30, 2025, a slight decrease from $271,268 million at the end of Q1 2025[24]. - Brokered deposits increased to $30,008 million in Q2 2025 from $27,585 million in Q1 2025, reflecting an increase of 9.2%[24].