Truist Financial Corporation
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.65%.
Did TFC Beat Earnings? Q3 2025 Results
Truist Financial posted a solid third quarter, with earnings per diluted share of $1.04 beating the $0.99 consensus estimate by 4.72%, even as revenue of $5.19 billion came in fractionally below the $5.20 billion forecast. The headline revenue figure reflected a 33.8% year-over-year decline, largely a function of portfolio reshaping in prior periods, but the sequential story was more constructive, with taxable-equivalent revenue climbing 4.0% linked-quarter. The primary engine was a 57.6% surge in investment banking and trading income to $323.00 million, complemented by record wealth management income of $374.00 million. Loan growth proved broad-based, with average held-for-investment loans rising 2.5% sequentially to $320.49 billion, while credit quality improved as the net charge-off ratio declined to 0.48%. Institutional investors have taken note of the momentum, with several funds adding to positions around the print. Looking ahead, management guided for Q4 adjusted revenue growth of 1-2%, approximately $750.00 million in buybacks, and a longer-term target of 15% ROTCE by 2027.
- Strong fee income growth in investment banking and trading (up 57.6% linked quarter) and wealth management (up 7.5%)
- Broad-based loan growth of 2.5% linked quarter across commercial and consumer portfolios
- Fixed-rate asset repricing supporting net interest income growth
- Disciplined expense management with adjusted efficiency ratio of 55.7%
- Improving credit quality with net charge-off ratio declining to 0.48% from 0.51%
“Truist delivered strong third-quarter results, underscored by robust fee income growth in investment banking and trading and wealth, healthy loan expansion, and continued expense and credit discipline. These results reflect the strength of our diversified business model and the momentum we're seeing across our company.”
Truist Financial CEO, on the earnings call
Forward Guidance & Outlook
Truist expects Q4 2025 adjusted revenue to increase 1-2% vs. Q3 2025, with stable adjusted expenses and $750 million in share repurchases. Net interest income is expected to increase approximately 2% in Q4 2025 due to loan growth, client deposit growth, and lower deposit costs. Interest-bearing deposit beta expected to rise to the mid-40s in Q4 2025. Full-year 2025 outlook is unchanged: adjusted revenue up 1.5-2.5% vs. FY 2024, adjusted expenses up approximately 1%, and a net charge-off ratio of 55 bps (improved from prior guidance of 59 bps). The 2025 effective tax rate is expected to be 17.5% (20% on an FTE basis). For 2026, the company expects momentum to accelerate with approximately 6-8% adjusted revenue growth, approximately 2% adjusted operating leverage, approximately $2.5 billion in share repurchases, and approximately 30 bps of adjusted EPS growth. Truist is targeting a 15% ROTCE by 2027, supported by executing top business growth initiatives, driving positive operating leverage, fixed-rate asset repricing, and increasing buybacks toward a 10% CET1 ratio target by December 31, 2027.
TFC YoY Financials
TFC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.