Truist Financial Corp. has reported its first quarter 2025 results, showcasing a net income available to common shareholders of $1.2 billion, or $0.87 per share. Compared to the previous quarter, average loans increased by $3.3 billion, or 1.1%. The company also repurchased $500 million in common shares, with dividend and total payout ratios of 59% and 102% respectively.
In terms of financial performance, net interest income saw a decrease of 2.4% compared to the previous quarter, with net interest margin down six basis points. Noninterest income was down 5.3%, mainly due to lower other income. However, noninterest expense witnessed a decline of 4.3%, attributed to lower other expense, professional fees, and outside processing expense.
The average loans and leases held for investment (HFI) saw a 1.1% increase, driven by growth in the commercial and industrial, residential mortgage, and indirect auto portfolios. End of period loans and leases HFI were $308.6 billion, up $2.3 billion, or 0.7%.
Average deposits also saw an increase of 0.6%, with the average cost of total deposits at 1.79%, down ten basis points. Asset quality remained strong, with nonperforming loans HFI to HFI loans up one basis point and a net charge-off ratio of 60 basis points, up one basis point.
Truist's capital levels remained robust, with a CET1 ratio of 11.3% as of March 31, 2025, and the average consolidated liquidity coverage ratio (LCR) at 111%, exceeding the regulatory minimum of 100%.
Following these announcements, the company's shares moved 0.2%, and are now trading at a price of $36.06. For more information, read the company's full 8-K submission here.
