Truist Financial (TFC) Q1 2026 earnings summary

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.

• $1.8 billion returned to shareholders in Q1 2026 through dividends and share repurchases, with a payout ratio of 129%.

• ROTCE improved to 13.8%, up 150 bps year-over-year, with a long-term target of 16%-18% over three to five years.

• Strong performance driven by growth in both consumer and wholesale loans, robust non-interest income, and disciplined expense and credit management.

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

Financial highlights

• Total revenue (taxable equivalent) was $5.2 billion, up 5.1% year-over-year but down 1.9% sequentially due to lower net interest income.

• Net interest income (taxable equivalent) was $3.64 billion, up 2.5% year-over-year; NIM was 3.02%, down 5 bps sequentially but up 1 bp year-over-year.

• Non-interest income rose 12% year-over-year to $1.55 billion, 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.

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

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.

• Second quarter 2026 revenue expected to be stable; NII up 1%, non-interest income down 1%, expenses up 3%-4%.

• Long-term ROTCE target set at 16%-18%.