Truist Financial Corp. (NYSE:TFC) reported second-quarter 2025 results on Friday that narrowly missed Wall Street expectations, leading to a dip in its share price during premarket trading.
The regional banking giant posted adjusted earnings per share of $0.91, just below analysts’ forecast of $0.92. Following the release, the stock slipped 1.42% in premarket action, reflecting investor disappointment over the minor shortfall.
Net income available to common shareholders rose to $1.18 billion, or $0.90 per diluted share, from $0.62 per share in the same quarter a year earlier. Revenue reached $4.99 billion, a significant turnaround from the prior year’s $1.68 billion loss, which was driven by large securities sales-related losses.
Truist saw a 2.3% quarter-over-quarter increase in net interest income, bringing the total to $3.64 billion on a taxable-equivalent basis. The bank’s net interest margin edged up slightly to 3.02%. Average loan balances rose by $6.2 billion, or 2%, boosted by growth in commercial and industrial loans, residential mortgages, and consumer lending.
Noninterest income nudged up 0.6% to $1.40 billion from the previous quarter, while noninterest expenses climbed 2.8% to $2.99 billion, with higher personnel expenses cited as the main factor.
Credit quality showed improvement, with the net charge-off ratio decreasing to 0.51% from 0.60% in Q1. The allowance for loan and lease losses declined to 1.54% of loans held for investment, down slightly from 1.58%.
During the quarter, Truist returned capital to shareholders by repurchasing $750 million of common stock. This resulted in a dividend payout ratio of 57% and a total payout ratio of 121%. The bank reported a Common Equity Tier 1 (CET1) capital ratio of 11.0%, down from 11.3% in the prior quarter, but still well above regulatory thresholds.
Truist Financial Corporation stock price
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.