Truist Financial (TFC) Q2 2025 earnings summary

Executive summary

• Net income available to common shareholders was $1.2 billion ($0.90 per share), up 43% year-over-year, including $0.03 per share in after-tax restructuring charges and securities losses.

• Strong loan growth across consumer and wholesale segments, with average loan balances up 2% sequentially and end-of-period loans up 3.3%.

• Continued investments in talent, technology, and digital platforms, driving client acquisition and engagement.

• Asset quality and capital position remained robust, with non-performing loans and net charge-offs at multi-quarter lows.

• Returned $1.4 billion to shareholders in Q2 2025 via dividends and $750 million in share repurchases.

Financial highlights

• Adjusted revenue increased 2.1% sequentially, driven by 2.3% growth in net interest income and 1.8% growth in non-interest income.

• Net interest margin was stable at 3.02%, up one basis point sequentially.

• Adjusted expenses rose 3.1% sequentially, mainly due to higher personnel costs.

• CET1 ratio declined 30 basis points to 11.0% due to capital returns and higher risk-weighted assets.

• Book value per share was $45.70 and tangible book value per share was $31.63 at June 30, 2025.

Outlook and guidance

• Full-year 2025 revenue expected to grow 1.5%-2.5% over 2024, with net interest income up 3%.

• Adjusted expenses for 2025 projected to rise by about 1%, supporting positive operating leverage.

• Net charge-off ratio forecasted at 55-60 basis points for 2025, improved from prior guidance.

• Third quarter 2025 revenue expected to increase 2.5%-3.5% sequentially, with share repurchases targeted at $500 million.

• Preliminary SCB requirement of 2.5% effective October 1, 2025.