Truist Financial (TFC) investor relations material

Executive summary

• Net income available to common shareholders was $1.4 billion, or $1.09 per diluted share, up 25% year-over-year and 9% sequentially, reflecting strong execution and profitability improvements.

• Achieved positive operating leverage, with strong asset quality metrics and robust non-interest income growth.

• Strategic focus on profitability, digital transformation, and AI deployment is enhancing client engagement and operational efficiency.

• Returned $1.8 billion to shareholders in Q1 2026, including $1.1 billion in share repurchases, and improved ROTCE by 150 bps to 13.8%.

• Long-term ROTCE target set at 16%-18% over three to five years, with a clear path to 14% in 2026 and 15% in 2027.

Financial highlights

• Revenue was $5.2 billion, up 5.1% year-over-year but down 1.9% sequentially due to lower net interest income.

• Non-interest income rose 12% year-over-year, led by investment banking, trading, and wealth management.

• Non-interest expense increased 2.6% year-over-year but declined 5.9% sequentially, mainly due to lower personnel and legal costs.

• Net interest margin was 3.02%, down five basis points sequentially but up one basis point year-over-year.

• Effective tax rate dropped to 12.4% from 17.9% a year ago, aided by discrete tax benefits and project finance activity.

Outlook and guidance

• 2026 net interest income growth revised to 2%-3% due to unchanged Fed funds rate expectations.

• Non-interest income growth now expected to be high single digits for 2026.

• Full-year non-interest expense to rise about 1.75%.

• Asset quality expectations unchanged, with net charge-offs forecast at 55 basis points for 2026.

• Share repurchases targeted at $5 billion for 2026, up from $4 billion.