Truist Financial Corp. (NYSE:TFC) posted fourth-quarter results on Wednesday that came in below Wall Street expectations, overshadowing continued growth in loans and net interest income.
Shares of the Charlotte-based lender fell 4.84% in premarket trading following the release.
Truist reported net income available to common shareholders of $1.29 billion, equal to $1.00 per diluted share, missing analysts’ consensus estimate of $1.09. Quarterly revenue totaled $5.25 billion, also short of the $5.31 billion expected. Results were pressured by a $130 million legal accrual and $63 million in severance costs, which together reduced earnings by $0.12 per share.
Despite the headline miss, the bank highlighted several improving underlying trends. Net interest income increased 1.9% from the prior quarter to $3.75 billion, while net interest margin expanded by six basis points to 3.07%. Average loans held for investment rose by $4.3 billion, or 1.3%, reflecting broad-based loan growth. On a year-on-year basis, revenue increased 5.2% from $5.06 billion in the same quarter last year.
“We delivered strong, purpose-driven performance in 2025 by deepening client relationships, enhancing operational efficiency, investing in talented teammates and innovative technology, and increasing capital return to shareholders,” said Bill Rogers. “Through disciplined risk management and sound governance, we strengthened our foundation and positioned Truist for sustainable growth.”
Credit quality metrics were broadly stable. Nonperforming loans remained unchanged at 0.48% of total loans, while the net charge-off ratio increased to 0.57% from 0.48% in the previous quarter, driven mainly by higher charge-offs in commercial and industrial, other consumer, credit card and indirect auto portfolios.
Truist continued to return capital to shareholders during the quarter, repurchasing $750 million of common stock. The bank also announced a new $10 billion share buyback authorization with no expiration date, underscoring management’s confidence in the group’s longer-term financial strength despite the weaker quarterly results.