Truist Financial (TFC) Q1 2025 earnings summary

Executive summary

• Net income available to common shareholders was $1.2 billion, or $0.87 per share, for Q1 2025, up 6.0% year-over-year, reflecting solid performance amid market volatility and economic uncertainty.

• Average loans increased 1.1% and average deposits rose 0.6% sequentially, with continued positive momentum in both.

• Expense discipline was evident, with noninterest expense down 4.3% sequentially and asset quality metrics remaining stable.

• Repurchased $500 million in common shares in Q1 2025; total capital returned to shareholders was $1.2 billion including dividends.

• Capital and liquidity positions remain strong, with a CET1 ratio of 11.3% and LCR at 111%.

Financial highlights

• Total revenue was $4.95 billion, down 3.2% sequentially, primarily due to lower net interest income and noninterest income.

• Net interest margin was 3.01%, down 6 basis points sequentially but up 13 bps year-over-year.

• Adjusted noninterest expense decreased 5.4% sequentially, improving the efficiency ratio by 130 basis points to 56.4%.

• Noninterest income fell 5.3% sequentially, mainly due to lower investment banking, trading, and wealth management income.

• Provision for credit losses was $458 million, down from $500 million in Q1 2024; net charge-off ratio was 0.60%.

Outlook and guidance

• 2025 revenue growth guidance revised to 1.5%-2.5%, reflecting lower investment banking and trading activity and yield curve impacts.

• Net interest income expected to increase ~3% in 2025, assuming low single-digit loan growth and three 25bp Fed rate cuts.

• Adjusted expenses for 2025 expected to rise by ~1%.

• Net charge-offs expected to remain at 60 basis points for 2025.

• Management remains focused on strategic growth, expense discipline, and investments in talent, technology, and risk infrastructure.