10-QPeriod: Q1 FY2025

TRUIST FINANCIAL CORP Quarterly Report for Q1 Ended Mar 31, 2025

Filed April 30, 2025For Securities:TFCTFC-POTFC-PRTFC-PI

Summary

Truist Financial Corporation (TFC) reported solid first-quarter 2025 results, demonstrating resilience amidst market volatility. Net income available to common shareholders increased by 6.0% year-over-year to $1.2 billion, translating to diluted EPS of $0.87, up 7.4%. This performance was driven by a 3.8% increase in taxable-equivalent net interest income, aided by balance sheet repositioning and reinvestment in higher-yielding securities. While noninterest income saw a slight decrease due to lower investment banking and trading revenues, the company effectively managed expenses, with a 1.6% reduction in noninterest expense driven by lower regulatory costs and personnel expenses. Asset quality remained strong, with nonperforming loans and leases held for investment at 0.48%. The company also maintained robust capital ratios, with a CET1 ratio of 11.3%. Truist returned $1.2 billion to shareholders through dividends and share repurchases, underscoring its commitment to capital return while retaining significant remaining authorization for future buybacks. The company continues to focus on strategic growth initiatives, talent and technology investments, and maintaining credit and risk discipline.

Financial Highlights

34 data points
Beta

Net Income

$1.26B

EPS (Diluted)

$0.87

Total Assets

$535.90B

Cash & Equivalents

$42.17B

Free Cash Flow

$746.00M

Financial Statements
Beta
Operating Income$1.26B
Net Income$1.26B
EPS (Basic)$0.88
EPS (Diluted)$0.87
Shares Outstanding (Basic)1.31B
Shares Outstanding (Diluted)1.32B

Key Highlights

  • 1Net income available to common shareholders increased 6.0% year-over-year to $1.2 billion.
  • 2Diluted EPS rose 7.4% to $0.87.
  • 3Taxable-equivalent net interest income grew 3.8% due to balance sheet repositioning and higher yields on securities.
  • 4Noninterest expense decreased 1.6% driven by lower regulatory costs and personnel expenses.
  • 5Asset quality remained strong with nonperforming loans and leases held for investment at 0.48%.
  • 6Common shareholders received $1.2 billion in capital returns via dividends ($679 million) and share repurchases ($500 million).
  • 7CET1 ratio remained strong at 11.3%, exceeding regulatory requirements.

Frequently Asked Questions

Truist's taxable-equivalent net interest income increased by $130 million, or 3.8%, to $3.5 billion for the first quarter of 2025 compared to the first quarter of 2024. This growth was primarily attributed to balance sheet repositioning executed in the second quarter of 2024 and higher yields on the securities portfolio, partially offset by lower yields on variable rate loans.

Asset quality remained strong. Nonperforming loans and leases held for investment were 0.48% of total loans and leases held for investment as of March 31, 2025, a slight increase from 0.47% at December 31, 2024. The ratio of loans 90 days or more past due and still accruing was 0.20% of loans and leases held for investment. The net charge-off ratio was 0.60% for the quarter, down from 0.64% in the prior year quarter.

Noninterest expense decreased by $47 million, or 1.6%, to $2.9 billion for the first quarter of 2025 compared to the prior year. This reduction was mainly due to lower regulatory costs, including a prior period FDIC special assessment adjustment, and reduced personnel expenses. Professional fees and outside processing costs increased due to investments in technology and risk infrastructure.

Truist returned $1.2 billion of capital to common shareholders in the first quarter of 2025, consisting of $679 million in common stock dividends and $500 million in common stock repurchases. The company has $3.5 billion remaining under its $5.0 billion common share repurchase authorization through the end of 2026.