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TFC

TRUIST REPORTS STRONG Q1 EARNINGS

Truist reported first-quarter 2026 net income available to common shareholders of $1.38 billion, up from $1.29 billion in the fourth quarter of 2025 and $1.16 billion in the first quarter of 2025. Diluted earnings per share rose to $1.09 from $1.00 in the prior quarter and $0.87 a year earlier.

Total revenue was $5.15 billion, down from $5.25 billion in the fourth quarter but up from $4.90 billion in the first quarter of 2025. Net interest income fell to $3.60 billion from $3.70 billion in the prior quarter, but increased from $3.51 billion a year earlier. Noninterest income was $1.55 billion, essentially flat with the prior quarter and up from $1.39 billion in the year-ago period.

Noninterest expense declined to $2.98 billion from $3.17 billion in the fourth quarter, while rising from $2.91 billion a year earlier. The efficiency ratio improved to 57.9% from 60.4% in the prior quarter and 59.3% in the first quarter of 2025.

Net interest margin was 3.02%, down from 3.07% in the fourth quarter and up from 3.01% a year earlier.

Average loans and leases held for investment were $327.0 billion, up $2.3 billion from the fourth quarter and $19.0 billion from the first quarter of 2025. Commercial loans rose to $198.6 billion from $195.2 billion in the prior quarter, while consumer loans slipped to $123.5 billion from $124.6 billion. End-of-period loans and leases held for investment were $329.2 billion, up $643 million from year-end 2025.

Average deposits increased to $398.9 billion from $396.0 billion in the fourth quarter and $392.2 billion a year earlier. End-of-period deposits were $404.1 billion, up $3.7 billion from December 31, 2025.

Wealth management income increased to $370 million from $365 million in the fourth quarter and $344 million a year earlier. Investment banking and trading income rose to $372 million from $335 million and $273 million. Mortgage banking income climbed to $133 million from $119 million and $108 million. Lending-related fees increased to $118 million from $98 million and $95 million.

Personnel expense declined to $1.73 billion from $1.82 billion in the fourth quarter, though it was up from $1.60 billion a year earlier. Professional fees and outside processing fell to $313 million from $337 million and $364 million. Other expense dropped sharply to $238 million from $367 million in the prior quarter.

The provision for income taxes was $209 million, little changed from $210 million in the fourth quarter, but down from $274 million a year earlier. The effective tax rate fell to 12.4% from 13.4% and 17.9%.

Capital remained stable, with common equity tier 1 at 10.8%, unchanged from the fourth quarter and down from 11.3% a year earlier. Truist repurchased $1.1 billion of common stock in the quarter and paid $0.52 per share in dividends. The company ended the quarter with a dividend payout ratio of 47% and a total payout ratio of 129%.

Asset quality weakened modestly. Nonperforming assets rose to $1.79 billion from $1.63 billion in the fourth quarter and $1.62 billion a year earlier. Nonperforming loans and leases increased to 0.50% of loans and leases held for investment from 0.48% in both the prior quarter and the year-ago quarter. Loans 90 days or more past due and still accruing climbed to $760 million from $684 million in the fourth quarter and $616 million a year earlier. The allowance for loan and lease losses stayed at 1.53% of loans and leases held for investment, down from 1.58% a year earlier. Following these announcements, the company's shares moved -0.93%, and are now trading at a price of $44.97. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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