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TFC

TRUIST REPORTS STRONG Q2 GROWTH

Truist reported second-quarter 2026 net income available to common shareholders of $1.52 billion, up from $1.38 billion in the first quarter and $1.18 billion a year earlier. Diluted earnings per share rose to $1.23 from $1.09 in the prior quarter and $0.90 in the second quarter of 2025, a 37% increase year over year.

Total revenue climbed to $5.27 billion from $5.15 billion in the first quarter and $4.99 billion a year ago. On a taxable-equivalent basis, revenue was $5.31 billion, compared with $5.20 billion in the prior quarter and $5.04 billion in the year-ago period.

Net interest income was $3.62 billion, up slightly from $3.60 billion in the first quarter and $3.59 billion in the second quarter of 2025. On a taxable-equivalent basis, net interest income was $3.67 billion, up $23 million, or 0.6%, from the prior quarter and $32 million, or 0.9%, from a year earlier. Net interest margin on a taxable-equivalent basis was 2.98%, down 4 basis points from both the first quarter and the year-ago quarter.

Noninterest income increased to $1.64 billion from $1.55 billion in the first quarter and $1.40 billion a year earlier. The quarter-over-quarter gain was $91 million, or 5.9%, led by income from equity investments. Compared with the second quarter of 2025, noninterest income rose $244 million, or 17.4%, driven by higher investment banking and trading income and stronger wealth management income.

Investment banking and trading income was $352 million, down from $372 million in the first quarter but up sharply from $205 million a year earlier. Wealth management income rose to $375 million from $370 million in the prior quarter and $348 million in the second quarter of 2025. Card and treasury management fees increased to $353 million from $338 million in the first quarter and were slightly above the $351 million posted a year earlier.

Noninterest expense rose to $3.06 billion from $2.98 billion in the first quarter and $2.99 billion in the second quarter of 2025. Personnel expense increased to $1.79 billion from $1.73 billion in the prior quarter and $1.68 billion a year earlier. Professional fees and outside processing climbed to $335 million from $313 million in the first quarter, though that was below the $373 million recorded a year ago.

Pretax, pre-provision earnings were $2.26 billion, up from $2.21 billion in the first quarter and $2.05 billion a year ago. The efficiency ratio was 58.0%, little changed from 57.9% in the prior quarter and better than 59.9% in the second quarter of 2025.

Average loans and leases held for investment were $329.2 billion, up $2.1 billion, or 0.7%, from the first quarter. Commercial loans rose $2.6 billion, or 1.3%, to $201.2 billion, with commercial and industrial balances up $2.2 billion and CRE up $773 million. Consumer loans were essentially flat at $123.1 billion, while indirect auto fell $912 million to $24.4 billion.

Average deposits increased to $404.9 billion from $398.9 billion in the first quarter. Interest checking balances rose $3.4 billion to $123.6 billion, and time deposits increased $1.9 billion to $41.3 billion. End-of-period deposits were $409.4 billion, up $5.3 billion from March 31.

Credit quality improved in some areas and weakened slightly in others. Net charge-offs fell to 0.50% from 0.61% in the first quarter and 0.51% a year earlier. Nonperforming assets declined to $1.75 billion from $1.79 billion in the first quarter, while nonperforming loans edged up to 0.51% of loans held for investment from 0.50%. Loans 90 days or more past due and still accruing fell to $698 million from $760 million.

The allowance for loan and lease losses ratio was 1.51%, down from 1.53% in the first quarter and 1.54% a year earlier.

Capital remained strong. Truist’s CET1 ratio was 10.9%, up from 10.8% in the first quarter. The company repurchased $1.2 billion of common stock and returned $1.8 billion to shareholders through dividends and buybacks. It declared a common dividend of $0.52 per share for the quarter. Today the company's shares have moved 0.55% to a price of $53.545. For the full picture, make sure to review TRUIST FINANCIAL CORP's 8-K report.

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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