10-QPeriod: Q2 FY2025

TRUIST FINANCIAL CORP Quarterly Report for Q2 Ended Jun 30, 2025

Filed July 31, 2025For Securities:TFCTFC-POTFC-PRTFC-PI

Summary

Truist Financial Corporation (TFC) reported a strong second quarter of 2025, with net income available to common shareholders increasing by 43% year-over-year to $1.2 billion, translating to $0.90 in diluted EPS. This performance was driven by strategic loan growth and an increase in net interest income, reflecting positive momentum in the company's strategy and investments in talent and technology. The company maintained a strong asset quality and capital position, returning $1.4 billion to shareholders through dividends and share repurchases, with $2.8 billion remaining under its current repurchase authorization. The net interest margin remained stable at 3.02%, supported by growth in earning assets and disciplined management of deposit costs.

Financial Highlights

34 data points
Beta

Net Income

$1.24B

EPS (Diluted)

$0.90

Total Assets

$543.83B

Cash & Equivalents

$41.45B

Free Cash Flow

$914.00M

Financial Statements
Beta
Operating Income$2.50B
Net Income$1.24B
EPS (Basic)$0.91
EPS (Diluted)$0.90
Shares Outstanding (Basic)1.29B
Shares Outstanding (Diluted)1.31B

Key Highlights

  • 1Net income available to common shareholders increased 43% year-over-year to $1.2 billion, or $0.90 per diluted share.
  • 2Net interest income grew 1.5% year-over-year, with net interest margin remaining stable at 3.02%.
  • 3Total assets grew to $543.8 billion, an increase of $12.6 billion from year-end 2024, driven by loan growth.
  • 4Allowance for credit losses was $5.3 billion, with the ALLL ratio at 1.54%, a slight decrease from the previous quarter.
  • 5Common equity Tier 1 (CET1) ratio was 11.0%, indicating a strong capital position despite capital being returned to shareholders.
  • 6The company returned $1.4 billion to shareholders in Q2 2025 through dividends and share repurchases.
  • 7Nonperforming assets decreased by $302 million sequentially to $1.3 billion.

Frequently Asked Questions

Truist reported net income available to common shareholders of $1.2 billion for the second quarter of 2025, a significant increase of 43% compared to $826 million in the second quarter of 2024. Diluted earnings per share were $0.90, up 45% from $0.62 in the prior year's second quarter.

Truist's net interest margin remained stable at 3.02% for the second quarter of 2025, consistent with the same period in the prior year. This stability was supported by an increase in average earning assets, primarily driven by loan growth, and a decline in the average cost of deposits and short-term borrowings, which offset increases in the cost of long-term debt.

Asset quality remained strong. Nonperforming loans and leases held for investment were 0.39% of loans and leases held for investment at June 30, 2025, down from 0.48% at March 31, 2025. The allowance for credit losses was $5.3 billion, and the allowance for loan and lease losses (ALLL) ratio was 1.54%, down slightly from 1.58% in the prior quarter, reflecting robust credit management.

Truist maintained strong capital ratios, with a Common Equity Tier 1 (CET1) ratio of 11.0% as of June 30, 2025. The company returned $1.4 billion to shareholders in the second quarter of 2025 through $670 million in common stock dividends and $750 million in common share repurchases. Truist has $2.8 billion remaining under its $5.0 billion common share repurchase authorization through the end of 2026.

Noninterest income increased significantly year-over-year, primarily due to the absence of substantial securities losses recorded in the second quarter of 2024 ($6.7 billion) related to balance sheet repositioning. Excluding these securities losses, noninterest income was down slightly (1.4%) due to lower investment banking and trading income, partially offset by higher other income driven by investments in solar and other projects.