During this morning's call, they will discuss Truist's Q2 2026 results, share their perspectives on current business conditions, and provide an update on our outlook for 2026. The company presentation, as well as our earnings release and supplemental financial information, are available on the Truist Investor Relations website, ir.truist.com. Mike's an accomplished and respected financial services leader with a proven ability to drive growth, improve performance, and create long-term shareholder value. Over the last several quarters, we've been clear about the actions we're taking to drive stronger returns, improve efficiency, and allocate capital to the highest value opportunities across the company.

While some of these choices may create near-term trade-offs in individual growth metrics, they're producing the outcomes we intended and are driving stronger profitability and improved financial performance. Importantly, these results demonstrate that we're making meaningful progress in building a more earnings-efficient and more capital-efficient growth company. For the Q2, we delivered net income available to common shareholders of $1.5 billion, or $1.23 per diluted share, representing a 37% increase over the Q2 of 2025. During the quarter, we added new clients, deepened existing relationships, and grew profitably in the businesses and products where we've chosen to focus.

Along with our expense discipline, this contributed to more than 300 basis points of year-over-year positive operating leverage. In addition, combined with disciplined capital deployment, our return on tangible common equity improved 310 basis points year-over-year to 15.4%. These results reinforce that we remain on track to deliver our full-year profitability and return objectives and provide confidence in our ability to sustain this level of performance over time. Average non-maturity consumer and small business deposits increased 2% versus the Q2, driven by a 39% increase in new to bank deposit production.

What went well
  • Net income available to common shareholders was $1.5 billion, or $1.23 per diluted share, up 37% year-over-year and 13% versus Q1.
  • Return on tangible common equity improved 310 basis points year-over-year to 15.4%, and the company raised its full-year 2026 ROTCE outlook to greater than 14%.
  • Truist delivered more than 300 basis points of year-over-year positive operating leverage as revenue rose 5.5% while non-interest expense grew only 2.3%.
  • Non-interest income grew 17% year-over-year, led by a 72% jump in investment banking and trading revenue and 8% growth in wealth management income.
  • Wholesale momentum was broad, with average wholesale loans up 8% and middle-market deposits up 12% (27% in expansion markets like Texas, Pennsylvania and Ohio), while advisory revenue rose 27% year-to-date.
  • Asset quality strengthened, with net charge-offs down 11 basis points to 50 bps, CET1 up 10 bps to 10.9%, and more than 100% of earnings returned to shareholders.
What went wrong
  • Full-year net interest income guidance was reduced to approximately +1% to +1.5% growth on three headwinds: loan-portfolio optimization, lower loan spreads and a less favorable deposit mix.
  • Net interest margin declined 4 basis points sequentially to 2.98% on higher deposit costs, lower loan spreads and a larger balance sheet.
  • Deposit mix is being pressured by elevated rate-seeking behavior, with DDA expected to remix down from ~27% toward ~25% by year-end.
  • Loan spreads are now expected to be down 5-10 basis points year-over-year versus a prior expectation of a 10-15 bps widening, on both market compression and deliberate remixing into lower-yielding commercial loans.
  • Deliberate exits and run-downs (marine/RV, prime and non-prime auto) will cut ~40% (~$7-8 billion) of annual production across those NII-accretive but low-ROTCE portfolios, weighing on near-term NII.

Guidance Changes

MetricPeriodCurrent guidance
Full-year net interest income growthFY2026~+1% to +1.5%
Full-year ROTCEFY2026greater than 14%
Full-year fee income growthFY2026~10% year-over-year
Full-year loan growthFY2026high side of +3% to +4% (mostly C&I; consumer roughly flat to +1%)
Full-year deposit growthFY2026~3% (low single digits), with unfavorable mix
Full-year loan spreadsFY2026down 5-10 bps year-over-year
Full-year share repurchasesFY2026~$5 billion (total net payout ratio above 100%)
CET1 targetby end-2027~10% (glide path implying continued significant capital return)

Performance Breakdown

MetricYoYNote
EPS $1.23 (+37% YoY, +13% QoQ) Strong non-interest income growth and expense discipline driving profitability.
ROTCE 15.4% (+310 bps) Improved profitability plus disciplined capital deployment and balance-sheet optimization.
Total revenue +5.5% (+2.2% QoQ) Primarily higher non-interest income from investment banking, trading and wealth management.
Net interest income (TE) +0.6% QoQ One extra day and higher earning assets, partly offset by lower loan spreads.
Net interest margin 2.98% (-4 bps QoQ) Higher deposit costs, lower loan spreads, larger balance sheet and swaps coming on.
Average loans held for investment $329B (+0.7% QoQ; commercial +1.3%) Commercial growth partly offset by declining consumer loans as low-return portfolios run off.
Investment banking and trading revenue +72% Stronger client activity, improved deal economics and capital-markets momentum.
Net charge-offs 50 bps (-11 bps QoQ) Lower losses across most portfolios; provision of $395M modestly below $414M of charge-offs.
CET1 ratio 10.9% (+10 bps QoQ) Strong capital generation and RWA-density benefits despite returning 100%+ of earnings.

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
Balance-sheet / portfolio optimizationDe-emphasizing low-return portfoliosAccelerated exits and run-downs: discontinued marine/RV origination (~$4B book) and sharply reduced prime/non-prime auto (~$25B combined), cutting ~40% (~$7-8B) of annual production; completed two CLNs on ~half of an $11B prime-auto reference pool to improve ROTCE; reallocating capital toward C&I and high-grade wholesale credits.
Returns-over-growth strategyImproving profitability and capital efficiencyDeliberate trade-offs across individual growth metrics to drive stronger ROTCE (>14% for 2026) and positive operating leverage; management stresses it is 'setting the table' for higher-return incremental growth, not conceding long-term growth.
CEO successionBill Rogers as Chairman and CEOMike Lyons becomes President and CEO September 1; Rogers moves to executive chair until his planned April retirement; the board sought a growth-oriented leader with deep payments and technology expertise (ex-PNC, ex-Fiserv) to accelerate the high-performance journey; deep succession bench emphasized.
Net interest income headwindsHigher NII outlookNII guidance cut to +1-1.5% on three headwinds ranked by impact: unfavorable deposit mix (largest), loan-spread compression (down 5-10 bps YoY), and reduced consumer production volume, partially offset by higher medium/long-term rates aiding fixed-asset repricing.
Deposit dynamicsHealthy deposit activityLow-single-digit (~3%) deposit growth with mix pressured by client rate-seeking behavior (more client-driven than competitive); interest-bearing deposit beta eased to 45%, total beta to 30%; strong relationship-based, payments-oriented production.
Fee-income and wholesale strengthBuilding capital-efficient wholesaleFee income outpacing balance-sheet growth; ~10% full-year fee growth expected; investment banking/trading +72%, wealth management +8%, advisory +27% YTD; deeper client relationships lifting revenue per client and non-credit revenue share.
Digital & AIDigital growth engine5.4M active mobile users (+4%), 85% of logins via mobile, Truist Assist engagements up 60% to ~2M; AI increasingly contributing to productivity, client experience and capacity that can be reinvested.
Capital return~$5B buyback and 100%+ net payout deemed appropriate given capital position; glide path to ~10% CET1 by end-2027 implies continued significant capital return, with profitable growth the first priority for capital.

Q&A Summary

Ryan Nash (Goldman Sachs) asked what is happening under the hood across loan categories and how Truist balances returns versus growth, plus the drivers of the lower NII guide.
Rogers said C&I is up nearly 8% with continued growth in focused consumer areas (HELOC, Sheffield, Service Finance) while indirect auto is down significantly, framing it as setting the table for efficient growth; Maguire detailed the three NII headwinds (deposit mix, spread compression down 5-10 bps, ~40%/$7-8B lower consumer production) offset by higher belly-of-the-curve rates, expecting NIM to modestly improve in Q3.
John Pancari (Evercore) asked how much loan rationalization is in the guide, what else is possible, and the impact on 2027/long-term ROTCE targets.
Maguire said the marine/RV exit and production retrending are in the 2026 outlook (no 2027 guidance yet) and optimization continues across consumer and wholesale via client selection and pricing; Rogers declined to change the 2027 (15%) or long-term (16-18%) targets given the non-linear path but expressed higher confidence, and Maguire reaffirmed ~3-4% loan growth (high side) and ~3% deposit growth with DDA remixing toward 25%.
Ken Usdin (Autonomous) asked about deposit rate-chasing and the timing of the remaining swap book coming on.
Rogers attributed the migration to higher-yielding deposits to client behavior rather than competitive pressure; Maguire walked through swaps stepping from $63B effective in Q2 to ~$80B in Q3 and ~$85B in Q4, peaking in the high-$90Bs in Q1 2027 (receive rate ~3.40%) before declining.
Erika Najarian (UBS) asked what the board valued in Mike Lyons and whether he views Truist as a 16-18% ROTCE company.
Rogers said the year-plus succession process sought a leader with strong operating performance and deep payments/technology knowledge, that Lyons fits perfectly and came to lead a high-performing company, and that the 16-18% target reflects the journey with Lyons given flexibility on investments.
Erika Najarian (UBS) followed up on retaining top producers amid an outsider CEO announcement.
Rogers said the leadership philosophy is to 're-recruit everyone every day,' that teammates see the opportunity and platform, and that the certainty from resolving the succession timeline is helping top performers lean in.
Manan Gosalia (Morgan Stanley) asked to put the NII assumptions together and why buybacks aren't larger.
Maguire ranked unfavorable deposit mix as the most impactful headwind, then loan spreads (down 5-10 bps, ~$30B repriced per quarter), then reduced consumer volume; on capital he called the ~$5B buyback and 100%+ payout appropriate on a prudent glide path to ~10% CET1 by end-2027, with profitable growth the first priority.
Mike Mayo (Wells Fargo) pressed on the decade of underperformance and what can be done better going forward.
Rogers pointed to significant technology and talent investments, strategic alignment and clear high-performance goals, advising the company to stay on track while Lyons provides acceleration and intensity toward the long-term objective.
Ebrahim Poonawala (Bank of America) asked whether to expect Mike Lyons to be a change agent with a new plan.
Rogers declined to lay out Lyons's plan, emphasizing that the board's clear mandate is to lead a high-performing company with no global-direction misalignment, and that the specifics of speed and emphasis should wait for Lyons.
Matt O'Connor (Deutsche Bank) asked to aggregate the loan runoff from the exited books and why exit now.
Maguire said it is an acceleration of long-standing de-emphasis rather than a 'why now,' quantifying ~$25B of auto and ~$4B marine/RV with short (~2.5-3 year) weighted lives, characterizing auto as right-sizing (not full exit) and citing CLNs on half an $11B prime-auto pool to lift ROTCE.
Gerard Cassidy (RBC) asked how Truist is protecting against second-derivative risks from the AI investment boom.
Rogers cited his 'DVD' framework, diversity, velocity and discipline, to avoid over-concentration, maintain price discovery and live within limits, viewing AI-related exposure today as more opportunity than risk while watching secondary and tertiary market impacts.

More on Truist Financial Corp

Reported 2026-07-17 · figures from the Truist Financial Corp Q2 2026 earnings call.

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