Did Truist's earnings improve or decline in the first quarter of 2025?

On a GAAP basis, diluted EPS was $0.87, down from $0.91 in the fourth quarter of 2024 but up from $0.81 in the first quarter of 2024. Adjusted diluted EPS was flat sequentially at $0.87. Year-over-year, the first quarter of 2024 included a $75 million FDIC special assessment, which the company treats as a selected item, and it was also affected by restructuring charges and other items.

What drove the decline in revenue during the quarter?

Total taxable-equivalent revenue fell 3.2% linked-quarter. Net interest income dropped 2.4% because of two fewer days in the quarter and a six basis point decline in net interest margin. Noninterest income fell 5.3%, primarily because other income declined on lower income from certain solar and other equity investments, partially offset by stronger investment banking and trading income from debt capital markets activity.

How strong is Truist's capital position after the share repurchases?

The CET1 ratio was 11.3% as of March 31, 2025, down 20 basis points from 11.5% at year-end 2024. The decline reflects $500 million of buybacks, higher risk-weighted assets, and the final CECL phase-in, partly offset by earnings. Capital ratios remain well above well-capitalized regulatory minimums, and the company reports a 111% average liquidity coverage ratio.

What is management's outlook for the rest of 2025?

For 2Q25, management expects adjusted revenue to rise 1% to 2% and adjusted expenses to rise 2% to 3% compared with 1Q25. Share repurchases of up to $750 million are planned, depending on market conditions. For full-year 2025, adjusted revenue growth is now guided to 1.5% to 2.5%, lowered to reflect reduced investment banking activity and lower medium-term interest rates. Net interest income is still expected to rise about 3% year over year, though the fixed-rate repricing benefit is 40 to 50 bps lower than previously expected.

Is asset quality deteriorating?

Asset quality was broadly stable but showed modest pressure. The net charge-off ratio rose one basis point to 0.60%, nonperforming loans rose to 0.48% of loans held for investment, and nonperforming assets increased $141 million to $1.6 billion, driven by commercial and industrial and loans held for sale. The ALLL ratio fell one basis point to 1.58%, and the provision for credit losses decreased to $458 million from $471 million.

TRUIST FINANCIAL CORP 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 17, 2025. Cited figures are marked; the original filing is the authoritative source.

Truist Financial reported first quarter 2025 net income available to common shareholders of $1.2 billion^a, or $0.87 per diluted share, versus $0.91 in the fourth quarter of 2024 and $0.81 in the first quarter of 2024 (GAAP).

Adjusted diluted EPS was $0.87^b, flat with the prior quarter. Total taxable-equivalent revenue fell 3.2% linked-quarter to $4.95 billion, driven by a 2.4% decline in net interest income (two fewer days, net interest margin down six basis points to 3.01%) and a 5.3% drop in noninterest income from lower other income. Adjusted noninterest expense declined 5.4% linked-quarter, which supported an improved adjusted efficiency ratio of 56.4%.

Average loans grew 1.1% and average deposits grew 0.6%, while asset quality was stable, with the net charge-off ratio at 0.60% and the ALLL ratio at 1.58%. Capital remained solid but eased slightly. The CET1 ratio was 11.3%, down 20 basis points from year-end 2024, reflecting $500 million^c of share repurchases, higher risk-weighted assets, and the final CECL phase-in.

Truist paid a $0.52^d per share dividend, and the total payout ratio was 102%. Management guided that second-quarter adjusted revenue will rise 1% to 2% and adjusted expenses will rise 2% to 3%, with share repurchases of up to $750 million.

Full-year 2025 guidance was trimmed, with adjusted revenue now expected to grow 1.5% to 2.5%, reflecting lower investment banking activity and lower medium-term interest rates. Investors should weigh solid expense control and capital return against soft revenue momentum, a slightly lower outlook, and the 2025 net interest income benefit from fixed-rate asset repricing being 40 to 50 bps lower than previously expected.

02—Key points

Key Highlights

GAAP diluted EPS of $0.87 vs. $0.91 in 4Q24 and $0.81 in 1Q24; adjusted diluted EPS flat at $0.87 vs. 4Q24.
Total TE revenue down 3.2% linked-quarter to $4.95B; NIM compressed 6 bps to 3.01%, partly from two fewer days.
Adjusted noninterest expense down 5.4% linked-quarter to $2.87B; adjusted efficiency ratio improved to 56.4% from 57.7%.
Average loans up 1.1% to $306.4B and average deposits up 0.6% to $392.2B, with growth in C&I, residential mortgage, and indirect auto.
Asset quality stable: NCO ratio 0.60% (up 1 bp), ALLL ratio 1.58% (down 1 bp), nonperforming loans rose to 0.48% of LHFI.
CET1 ratio 11.3%, down 20 bps from year-end 2024, after $500M of buybacks; dividend and total payout ratios of 59% and 102%.
Outlook: 2Q25 buybacks up to $750M; FY2025 adjusted revenue growth lowered to 1.5%–2.5%, with NCO ratio guided to ~60 bps.

03—Questions

Frequently Asked Questions

Did Truist's earnings improve or decline in the first quarter of 2025?
On a GAAP basis, diluted EPS was $0.87, down from $0.91 in the fourth quarter of 2024 but up from $0.81 in the first quarter of 2024. Adjusted diluted EPS was flat sequentially at $0.87. Year-over-year, the first quarter of 2024 included a $75 million FDIC special assessment, which the company treats as a selected item, and it was also affected by restructuring charges and other items.
What drove the decline in revenue during the quarter?
Total taxable-equivalent revenue fell 3.2% linked-quarter. Net interest income dropped 2.4% because of two fewer days in the quarter and a six basis point decline in net interest margin. Noninterest income fell 5.3%, primarily because other income declined on lower income from certain solar and other equity investments, partially offset by stronger investment banking and trading income from debt capital markets activity.
How strong is Truist's capital position after the share repurchases?
The CET1 ratio was 11.3% as of March 31, 2025, down 20 basis points from 11.5% at year-end 2024. The decline reflects $500 million of buybacks, higher risk-weighted assets, and the final CECL phase-in, partly offset by earnings. Capital ratios remain well above well-capitalized regulatory minimums, and the company reports a 111% average liquidity coverage ratio.
What is management's outlook for the rest of 2025?
For 2Q25, management expects adjusted revenue to rise 1% to 2% and adjusted expenses to rise 2% to 3% compared with 1Q25. Share repurchases of up to $750 million are planned, depending on market conditions. For full-year 2025, adjusted revenue growth is now guided to 1.5% to 2.5%, lowered to reflect reduced investment banking activity and lower medium-term interest rates. Net interest income is still expected to rise about 3% year over year, though the fixed-rate repricing benefit is 40 to 50 bps lower than previously expected.
Is asset quality deteriorating?
Asset quality was broadly stable but showed modest pressure. The net charge-off ratio rose one basis point to 0.60%, nonperforming loans rose to 0.48% of loans held for investment, and nonperforming assets increased $141 million to $1.6 billion, driven by commercial and industrial and loans held for sale. The ALLL ratio fell one basis point to 1.58%, and the provision for credit losses decreased to $458 million from $471 million.

04—Continue

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