Truist Financial Corp. (NYSE:TFC) reported first-quarter results on Friday that topped earnings expectations, though revenue came in slightly below forecasts.
Shares of the bank fell 1.58% in premarket trading following the announcement.
The company posted adjusted earnings per share of $1.09, exceeding the $1.00 consensus estimate by $0.09, or 9%, and marking a 25% increase from $0.87 in the same period last year. However, revenue totaled $5.15 billion, missing analyst expectations of $5.17 billion, despite a 5.1% year-on-year increase from $4.90 billion.
Net interest income on a taxable-equivalent basis declined 2.8% to $3.64 billion compared with the fourth quarter of 2025, reflecting two fewer days in the period and shifts in deposit mix.
The net interest margin narrowed by five basis points to 3.02%. On a year-on-year basis, net interest income rose 2.5%, supported by repricing of fixed-rate assets and growth in lending.
Noninterest income remained broadly unchanged at $1.55 billion, as stronger investment banking and trading revenue offset declines in other areas. Noninterest expenses fell $187 million, or 5.9%, to $2.98 billion, driven mainly by reductions in other expenses, personnel costs, and professional fees.
“We delivered a strong first quarter, with earnings per share up 25% from the first quarter of 2025, driven by disciplined execution against our strategic priorities and continued momentum across the franchise,” said Bill Rogers, Chairman and CEO.
Average loans held for investment increased by $2.3 billion, or 0.7%, to $327.0 billion, led by growth in the commercial portfolio. Average deposits rose $2.9 billion, or 0.7%, to $398.9 billion.
Provision for credit losses came in at $479 million, down from $512 million in the previous quarter. Net charge-offs rose slightly to 0.61% of average loans from 0.57%, while the allowance for loan and lease losses remained steady at 1.53%.
Truist maintained a Common Equity Tier 1 ratio of 10.8% and returned $1.8 billion to shareholders through dividends and share buybacks during the quarter.