How did Truist's third quarter 2025 earnings compare with prior periods?

Net income available to common shareholders was $1.35 billion, or $1.04 per diluted share, up from $1.18 billion ($0.90) in 2Q25 and roughly flat with $1.34 billion ($0.99) in 3Q24. Adjusted diluted EPS was $1.04, including $0.02 of restructuring charges.

What drove the increase in revenue this quarter?

Total revenue rose 4.0% linked-quarter to $5.19 billion. Noninterest income increased $158 million, or 11%, led by investment banking and trading income (up $118 million) and wealth management income (up $26 million). Other income declined on a valuation decrease tied to Visa share derivatives. Net interest income rose 1.2%, aided by an extra day in the quarter and loan growth.

Is credit quality deteriorating?

Mixed. Net charge-offs fell to 0.48% of average loans from 0.51% and the provision declined to $436 million from $488 million. However, nonperforming loans increased to 0.48% of loans from 0.39%, with nonperforming assets up $313 million to $1.6 billion, mainly from commercial and industrial loans. The ALLL ratio held at 1.54%, and the reserve covered nonperforming loans 3.2 times.

What is the outlook for the remainder of 2025 and beyond?

Management reaffirmed full-year 2025 adjusted revenue growth of 1.5% to 2.5% and adjusted expense growth of about 1%, and improved the net charge-off ratio outlook to 55 basis points from 59. It expects 4Q25 NII to rise about 2%, adjusted revenue to rise 1% to 2%, and buybacks of $750 million. It targets a 15% ROTCE in 2027 and expects momentum to accelerate in 2026.

Are there any concerns around deposits or capital?

Average deposits fell 1.0% due to the withdrawal of two short-term M&A-related client deposits, which reduced the 3Q25 average by $1.7 billion after a $10.9 billion effect in 2Q25. Management expects the interest-bearing deposit beta to rise to the mid-40s in 4Q25. Capital remains solid, with a preliminary CET1 ratio of 11.0%, though this is down from 11.6% a year earlier. Share repurchases continue, with a total payout ratio of 87%.

TRUIST FINANCIAL CORP 8-K: Earnings & Results

01—Abstract

Summary

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

Truist Financial reported third quarter 2025 GAAP net income available to common shareholders of $1.35 billion^a, or $1.04 per diluted share, up from $1.18 billion ($0.90) in the prior quarter and roughly flat versus $1.34 billion ($0.99) a year earlier.

Total revenue rose 4.0% linked-quarter to $5.19 billion^b, driven primarily by a $158 million (11%) increase in noninterest income, with investment banking and trading income up 58% and wealth management income up 7.5%. Net interest income (TE) grew 1.2% to $3.68 billion, although net interest margin slipped one basis point to 3.01%. Noninterest expense rose modestly by 0.9% to $3.01 billion, and the GAAP efficiency ratio improved to 58.1% from 59.9%.

Credit metrics were stable: the net charge-off ratio fell to 0.48% from 0.51%, though nonperforming loans rose nine basis points to 0.48% of loans, driven by commercial and industrial loans. Balance sheet growth was modest. Average loans held for investment grew 2.5% to $320.5 billion^c, while average deposits declared 1.0% to $396.6 billion because of the withdrawal of two short-term M&A-related client deposits.

Truist repurchased $500 million^d of common stock and declared a $0.52 quarterly dividend, for a total payout ratio of 87%. The CET1 ratio was preliminary at 11.0%, unchanged from the prior quarter but below the 11.6% reported a year earlier.

Management reiterated its full-year 2025 revenue and expense outlook, improved its net charge-off outlook to 55 basis points from 59, and reaffirmed a target of about 15% ROTCE in 2027, with plans to raise the 4Q25 buyback to $750 million. For investors, the quarter reflects a solid fee-income rebound and disciplined expenses, with the main watch items being deposit trends, a rising interest-bearing deposit beta expected in 4Q25, and the pace at which buybacks and earnings growth can drive ROTCE toward the 2027 target.

02—Key points

Key Highlights

GAAP diluted EPS of $1.04 versus $0.90 in 2Q25 and $0.99 in 3Q24; net income available to common shareholders of $1.35 billion.
Total revenue of $5.19 billion, up 4.0% linked-quarter, with noninterest income up 11% to $1.56 billion on investment banking and trading (+58%) and wealth management (+7.5%) gains.
Net interest margin (TE) of 3.01%, down 1 bp linked-quarter and 11 bps year-over-year; TE net interest income up 1.2% to $3.68 billion.
Average loans HFI rose 2.5% to $320.5 billion, while average deposits fell 1.0% to $396.6 billion on the outflow of two short-term M&A-related client deposits.
Credit quality was stable: NCO ratio improved to 0.48% from 0.51%, but nonperforming loans rose to 0.48% from 0.39%, mainly in commercial and industrial loans; ALLL ratio flat at 1.54%.
Returned capital through a $500 million share repurchase and a $0.52 dividend (50% dividend payout, 87% total payout); the 4Q25 buyback target was raised to $750 million; preliminary CET1 ratio of 11.0%.
Management reaffirmed a 2027 ROTCE target of about 15% and guided to NII growth of roughly 2% in 4Q25 and a moderate rise in interest-bearing deposit beta to the mid-40s.

03—Questions

Frequently Asked Questions

How did Truist's third quarter 2025 earnings compare with prior periods?
Net income available to common shareholders was $1.35 billion, or $1.04 per diluted share, up from $1.18 billion ($0.90) in 2Q25 and roughly flat with $1.34 billion ($0.99) in 3Q24. Adjusted diluted EPS was $1.04, including $0.02 of restructuring charges.
What drove the increase in revenue this quarter?
Total revenue rose 4.0% linked-quarter to $5.19 billion. Noninterest income increased $158 million, or 11%, led by investment banking and trading income (up $118 million) and wealth management income (up $26 million). Other income declined on a valuation decrease tied to Visa share derivatives. Net interest income rose 1.2%, aided by an extra day in the quarter and loan growth.
Is credit quality deteriorating?
Mixed. Net charge-offs fell to 0.48% of average loans from 0.51% and the provision declined to $436 million from $488 million. However, nonperforming loans increased to 0.48% of loans from 0.39%, with nonperforming assets up $313 million to $1.6 billion, mainly from commercial and industrial loans. The ALLL ratio held at 1.54%, and the reserve covered nonperforming loans 3.2 times.
What is the outlook for the remainder of 2025 and beyond?
Management reaffirmed full-year 2025 adjusted revenue growth of 1.5% to 2.5% and adjusted expense growth of about 1%, and improved the net charge-off ratio outlook to 55 basis points from 59. It expects 4Q25 NII to rise about 2%, adjusted revenue to rise 1% to 2%, and buybacks of $750 million. It targets a 15% ROTCE in 2027 and expects momentum to accelerate in 2026.
Are there any concerns around deposits or capital?
Average deposits fell 1.0% due to the withdrawal of two short-term M&A-related client deposits, which reduced the 3Q25 average by $1.7 billion after a $10.9 billion effect in 2Q25. Management expects the interest-bearing deposit beta to rise to the mid-40s in 4Q25. Capital remains solid, with a preliminary CET1 ratio of 11.0%, though this is down from 11.6% a year earlier. Share repurchases continue, with a total payout ratio of 87%.

04—Continue

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