Snapshot
Truist Financial Corp reported $4.93B of revenue in Q4 2025, up 8.6% year over year, with diluted EPS of $1.00.
- Revenue
- $4.93B
- YoY growth
- +8.6%
- Diluted EPS
- $1.00
- Operating margin
- —
What management said
- •During this morning's call, they will discuss Truist's Fourth Quarter and 2025 results, share their perspectives on current business conditions, and provide an updated outlook for 2026.
- •The accompanying presentation, as well as our earnings release and supplemental financial information, are available on the Truist Investor Relations website, ir.truist.com.
- •Despite market volatility early in 2025, we stayed focused on supporting our clients and executing our growth and profitability agenda.
- •This discipline drove higher earnings, stronger client relationships, and attracted new business.
- •These investments underscore our commitment to the communities we serve and position us to deliver more personalized advice and create opportunities for outsized growth.
- •As we enter 2026, our purpose continues to guide our focus on growth, profitability, and deeper client relationships.
- •We delivered net income available to common shareholders of $1.3 billion, or $1 per diluted share for the fourth quarter, and $5 billion, or $0.0382 per diluted share for the full year 2025.
- •First, we continue to generate strong, broad-based loan growth in both Wholesale Banking and Consumer and Small Business Banking, driven by new loan production and increased client acquisition.
- •Second, strong loan growth, better second-half results in investment banking, trading, and wealth, along with continued expense discipline, drove 100 basis points of positive adjusted operating leverage in 2025.
- •Third, we made significant investments across our business in talent and technology, laying the foundation for future growth, which we expect to accelerate in 2026.
- •Finally, we returned $5.2 billion of capital to shareholders through our common stock dividend and the repurchase of 2.5 billion of our common stock.
- •Our total capital return in 2025 reflects a 37% increase over 2024.
What went well
- •Truist delivered fourth quarter net income available to common shareholders of $1.3 billion, or $1 per diluted share, and full year 2025 net income of $5 billion, or $3.82 per diluted share, closing the year with strong results and momentum.
- •The company generated strong, broad-based loan growth in both Wholesale Banking and Consumer and Small Business Banking, with full-year average loans held for investment up 3.6% to $316 billion.
- •Strong loan growth, better second-half results in investment banking, trading, and wealth, along with expense discipline, drove 100 basis points of positive adjusted operating leverage in 2025.
- •The company returned $5.2 billion of capital to shareholders through dividends and $2.5 billion of repurchases, a 37% increase over 2024, and announced a new $10 billion share repurchase authorization with no expiration.
- •Net interest margin increased 6 basis points linked quarter to 3.07%, and cumulative interest-bearing deposit beta improved from 38% to 45% while total cost of deposits fell 20 basis points to 1.64%.
- •Premier Banking delivered strong 2025 production of 22% in deposits, 32% in lending, and 12% in financial plans, and digital chat engagement rose 97% with 77,000 digital new-to-bank clients added in the fourth quarter.
What went wrong
- •Fourth quarter results included a $130 million charge ($0.08 per share after tax) for an incremental accrual related to the Bickerstaff versus SunTrust Bank legal settlement, plus $0.04 per share of charges primarily related to severance.
- •GAAP non-interest expense increased 5.2% linked quarter, primarily due to the legal accrual and higher personnel expense.
- •Net charge-offs increased 9 basis points linked quarter, reflecting normal seasonality in the consumer portfolio.
- •Non-interest income decreased $12 million, or 0.8%, versus the third quarter, reflecting modest declines across several fee income categories, and the CET1 capital ratio declined 20 basis points to 10.8%.
Guidance changes
| Metric | Period | Previous | Current | Change |
|---|---|---|---|---|
| Average loan growth | 2026 | 3.6% in 2025 | 3%-4% | in line |
| Net interest income growth | Full year 2026 | n/a | 3%-4% | n/a |
| Net interest margin | Full year 2026 average | 3.03% average in 2025 | exceed 2025 average; exit 2026 in three-teens area | up |
| Share repurchases | 2026 | $2.5 billion in 2025 | $4 billion (a 60% increase) | up |
| Revenue growth | 2026 | n/a | at least twice the pace of 2025 | up |
| Fed funds rate cuts | 2026 | n/a | two 25 basis point reductions, one in April and one in July | n/a |
| Average investment securities and other earning assets | 2026 | n/a | decline 4%-5% annually | down |
| Efficiency ratio | Next couple of years | n/a | mid-50s area | improving |
| ROTCE | 2027 / 2026 | n/a | 15% in 2027, 14% in 2026 | up |
| GAAP expense growth | 2026 | n/a | 1.25%-2.25% (closer to 2.3%-3.3% ex-legal) | n/a |
Performance breakdown
| Metric | YoY change | Reason |
|---|---|---|
| Revenue | up 1.1% linked quarter | 1.9% growth in net interest income partially offset by a modest decrease in non-interest income |
| Taxable equivalent net interest income | up 1.9% linked quarter ($69 million) | loan and client deposit growth and fixed-rate asset repricing |
| Investment banking and trading | up 3.7% linked quarter to $335 million | stronger M&A-related fees partially offset by lower trading activity |
| Card and treasury management fees | up 3.7% year-over-year | double-digit growth in treasury management fees partially offset by lower merchant and corporate credit card fees |
| Average consumer and small business loans | up 5% in 2025 | market-leading consumer lending businesses including Indirect Auto, Sheffield, Service Finance, and LightStream |
| Total capital return | up 37% versus 2024 | dividends and $2.5 billion of share repurchases |
Earnings call themes & trends
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Capital return | $750 million quarterly buyback floor | targeting $4 billion in 2026, a 60% increase; new $10 billion authorization | accelerating |
| Deposit beta and costs | 38% cumulative interest-bearing beta | improved to 45%; expected low 50s by year-end 2026 | improving |
| Net interest margin | 3.01% prior quarter | 3.07%, expecting to exit 2026 in the three-teens area | improving |
| Loan mix | consumer-led growth in 2025 | 2026 growth primarily commercial-driven, rebalancing away from lower-value indirect auto | shifting |
| Expense reporting | adjusted expense with restructuring charges broken out | moving to GAAP expense reporting going forward | changing |
| Branch strategy | six years of effectively no net new branches | opening 100 new insight-driven branches in high-growth markets plus 300+ renovations | investing |
Q&A summary
Can you unpack the loan growth guide of 3%-4% between commercial and consumer given you exited the year up 8%?
C&I had its strongest quarter with high-quality advice-driven business (62%+ with treasury management); 2026 will tilt more toward wholesale and high-client-value categories like Sheffield, LightStream, and Service Finance, with less emphasis on lower-value indirect auto, all contributing to high-quality 3%-4% growth.
On the net interest margin exceeding 3.03%, what is included for deposit pricing and the cadence of expansion?
NIM should back up a touch in Q1 on seasonality from the current 3.07%, then expand through the year especially in the second half; betas grind a touch higher in Q1 toward the low 50s by year-end, with the fixed-rate asset repricing engine helping, exiting 2026 in the three-teens area.
What components give you confidence in the 2027 15% ROTCE target including efficiency and capital?
The concept is holding the capital denominator steady while improving the numerator, driven by double-digit payments growth, middle market expansion (2x clients), premier and wealth production, fixed-rate asset repricing, RWA optimization, and operating leverage, built on a 10% CET1 with $4 billion in buybacks.
How should we think about deposit mix and growth as you shift toward wholesale lending?
Leading indicators support deposit growth including wholesale deposits growing 400 basis points faster in late 2025 versus 2024, 62% of new clients arriving with deposits, treasury management fees up 13%, end-of-period client deposits up almost $7.5 billion, and continued consumer net new client growth.
What keeps you up at night given the strong industry outlook?
Management's primary concerns are macro rather than micro, with the number one focus on employment as the index of risk to financial services; on the micro side they feel confident given the diversity of the franchise, while Mike noted credit spreads at tights as a tactical risk being absorbed.
Will there be meaningful restructuring and severance costs in 2026?
Restructuring charges have become less significant to the overall story; while severance and facilities charges will continue, management expects them to be modestly lower in 2026, though they are difficult to forecast given their nature.