Truist(US:TFC)2026-01-21 11:31Financial Performance - Truist Financial Corporation reported a solid performance in Q4 2025, with total revenue reaching $3.5 billion, a 5% increase year-over-year[1]. - The net income for the quarter was $800 million, reflecting a 10% growth compared to the same period last year[1]. - The outlook for Q1 2026 includes a revenue growth forecast of 4-6%, driven by continued loan growth and improved economic conditions[1]. - Net income for the quarter was $1,354 million, compared to $1,452 million in the previous quarter, reflecting a decrease of 6.75%[3]. - Earnings per share (basic) from continuing operations was $1.02, down from $1.05 in the previous quarter[3]. - The company reported a net income of $1,354 million for Q4 2025, compared to $1,452 million in Q3 2025[5]. - Segment net income for Consumer and Small Business Banking was $678 million in Q4 2025, compared to $709 million in Q4 2024, a decrease of 4.4% year-over-year[21]. Revenue and Income Sources - Truist's non-interest income rose by 8% to $1.2 billion, supported by higher fees from wealth management services[1]. - Noninterest income increased to $1,546 million from $1,558 million in the previous quarter, indicating a stable performance[3]. - Noninterest income for the total corporation was $1,546 million in Q4 2025, up from $1,470 million in Q4 2024, representing a growth of 5.2% year-over-year[21]. - Total mortgage banking income for Q4 2025 was $119 million, a slight increase from $118 million in Q3 2025[23]. Loan and Deposit Growth - Average deposits increased by 7% to $150 billion, driven by strong customer acquisition and retention strategies[1]. - The company’s loan portfolio grew by 6% to $120 billion, with a notable increase in commercial lending[1]. - Total loans and leases held for investment rose to $328,595 million, an increase of 1.1% from $306,383 million in Q4 2024[7]. - Total deposits reached $400,398 million, showing a 2.2% increase compared to $390,524 million in Q4 2024[7]. Efficiency and Cost Management - The bank's efficiency ratio improved to 55%, down from 57% in the previous quarter, indicating better cost management[1]. - The efficiency ratio (unadjusted) was 60.4%, up from 58.1% in the previous quarter, suggesting increased operational costs[3]. - The total noninterest expense for Truist Financial Corporation was $3,170 million in Q4 2025, compared to $3,035 million in Q4 2024, an increase of 4.4% year-over-year[21]. Capital and Liquidity - Common equity tier 1 ratio decreased to 10.8% from 11.0% in the previous quarter, indicating a decline in capital adequacy[3]. - The liquidity coverage ratio improved to 111% from 110% in the previous quarter, indicating better liquidity management[3]. - Common equity tier 1 capital stood at $48,028 million as of December 31, 2025, slightly down from $48,225 million a year earlier[22]. Credit Quality and Losses - Nonperforming loans and leases as a percentage of loans held for investment (LHFI) remained stable at 0.48%[3]. - The allowance for loan and lease losses stood at $5,030 million, up from $4,857 million in Q4 2024, marking an increase of 3.6%[7]. - The provision for credit losses for the quarter was $512 million, compared to $436 million in the prior quarter, reflecting a 17.5% increase[19]. - Net charge-offs were $470 million for the quarter, compared to $385 million in the prior quarter, indicating a 22.1% increase[19]. Technology and Digital Banking - Truist plans to expand its digital banking services, aiming for a 20% increase in online customer engagement by the end of 2026[1]. - The company is investing $200 million in technology upgrades to enhance customer experience and operational efficiency[1]. Market Position and Strategy - Truist has identified potential acquisition targets in the Southeast region to bolster its market presence and service offerings[1]. - The average yield on U.S. Treasury securities decreased to 4.82% from 5.40% in the previous year, while average balances remained stable around $13.275 billion[9].