Skip to content
    TFC
    Earnings call· Dec 2025(Q4 FY25)

    TRUIST FINANCIAL CORP TFC

    Jan 21, 2026 Source

    Executive summary

    Truist Q4 FY25 — Strong Momentum and Clear Path to 15% ROTCE Target

    Truist closed FY25 with strong momentum, driven by broad-based loan growth, improved fee income in the second half, and disciplined expense management, leading to positive operating leverage. The company is accelerating investments in technology, digital capabilities, and talent, including a significant branch expansion plan, to deepen client relationships and achieve its 15% ROTCE target for FY27. Management expressed confidence in doubling revenue growth in FY26 and increasing capital returns.

    Highlights

    5

    • Delivered net income available to common shareholders of $1.3 billion ($1 per diluted share) for Q4 FY25 and $5 billion ($3.82 per diluted share) for full year 2025.

    • Achieved 100 basis points of positive adjusted operating leverage in 2025.

    • Returned $5.2 billion of capital to shareholders in 2025, a 37% increase over 2024, and announced a new $10 billion share repurchase authorization.

    • Wholesale segment saw average loans increase 8% YoY in Q4 FY25 and end-of-period deposits rise 6% linked quarter.

    • Treasury management fees grew 13% in 2025, contributing to an 8% rise in wholesale payment fees.

    Concerns

    3

    • Q4 FY25 results included a $130 million ($0.08 per share) charge for a legal accrual related to the Bickerstaff vs. SunTrust Bank settlement.

    • Q4 FY25 results included $0.04 per share of charges primarily related to severance.

    • Full year 2025 investment banking and trading income declined 6% versus 2024 due to first half market volatility.

    Guidance & targets

    24
    CategoryTargetConfidence
    Return on Tangible Common Equity (ROTCE)
    15%
    high materiality
    High
    Return on Tangible Common Equity (ROTCE)
    14%
    high materiality
    High
    Average Loan Growth
    3% to 4%
    medium materiality
    Medium
    End-of-Period Loan Growth
    low single-digit
    medium materiality
    Medium
    End-of-Period Deposit Growth
    low single-digit
    medium materiality
    Medium
    Net Interest Income (NII)
    3% to 4% increase
    high materiality
    Medium
    Average Earning Assets
    4% to 5% decline
    medium materiality
    Medium
    Fed Funds Rate Reductions
    two 25 basis point reductions
    high materiality
    Medium
    Net Interest Margin (NIM)
    exceed 3.03%
    high materiality
    Medium
    Net Interest Margin (NIM)
    3.10%-3.19% (3 teens)
    high materiality
    Medium
    Revenue
    4% to 5% increase
    high materiality
    Medium
    Noninterest Income
    mid- to high single-digit growth
    medium materiality
    Medium
    GAAP Noninterest Expense
    1.25% to 2.25% increase
    high materiality
    Medium
    Adjusted Noninterest Expense Growth (for comparison)
    2.35% to 3.35%
    medium materiality
    Medium
    Operating Leverage
    275 basis points
    high materiality
    Medium
    Net Charge-offs
    about 55 basis points
    medium materiality
    Medium
    Effective Tax Rate
    16.5% or 18.5% (taxable equivalent)
    low materiality
    Medium
    Share Repurchases
    $4 billion
    high materiality
    High
    Revenue
    2% to 3% decrease
    medium materiality
    Medium
    Net Interest Income (NII)
    2% to 3% decrease
    medium materiality
    Medium
    Noninterest Income
    2% to 3% decrease
    medium materiality
    Medium
    GAAP Noninterest Expense
    4% to 5% decrease
    medium materiality
    Medium
    Adjusted Noninterest Expense (for comparison)
    flat to down 1%
    medium materiality
    Medium
    Share Repurchases
    $1 billion
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Consumer and Small Business Banking (CSBB)
    CSBB delivered consistent strong performance, fueled by market-leading consumer lending businesses and net new checking account growth. Integration of LightStream into the mobile app enhanced efficiency and client experience. Premier Banking showed strong advisor productivity and branch-led lending. Digital investments drove significant growth in new clients and self-service adoption.
    Average consumer and small business loans growth: 5% (FY25)Average deposits growth: 1% (FY25)Premier Banking deposits production growth: 22% (FY25)Premier Banking lending production growth: 32% (FY25)Premier Banking financial plans production growth: 12% (FY25)Digital new-to-bank clients added: 77,000 (Q4 FY25)Digital new-to-bank clients growth: 10% (Q4 FY25 YoY)Digital production growth: 9% (FY25)Digital chat engagement growth: 97% (FY25)
    		————
    Wholesale
    Wholesale delivered a strong finish to 2025 with meaningful improvement in loan and deposit growth, and a rebound in investment banking and trading revenue. New client acquisition and talent investments drove momentum. Wealth management saw positive net asset flows and new client growth. Treasury management was a key strategic focus with double-digit growth.
    New corporate and commercial clients onboarded: 2x (FY25 vs prior year)Average wholesale loans growth: 3% (FY25)Average wholesale loans growth: 8% (Q4 FY25 YoY)End-of-period wholesale deposit balances growth: 6% (linked quarter)Investment banking and trading income decline: 6% (FY25 vs 2024)Investment banking and trading income growth: 28% (Q4 FY25 YoY)Wealth net asset flows: positive (FY25)Wealth new clients growth: 8.5% (FY25)Wholesale payment fees growth: 8% (FY25)Treasury management fees growth: 13% (FY25)
    		————

    Operational metrics

    36
    Net income available to common shareholders
    $1.3 billion
    Q4 FY25

    Reported net income for the quarter.

    Diluted EPS
    $1.00
    Q4 FY25

    Reported diluted EPS for the quarter.

    Net income available to common shareholders
    $5 billion
    FY25

    Reported net income for the full year.

    Diluted EPS
    $3.82
    FY25

    Reported diluted EPS for the full year.

    Legal accrual charge
    $130 million
    Q4 FY25

    Charge related to a settlement agreement in the matter of Bickerstaff vs SunTrust Bank.

    Severance charges
    $0.04
    Q4 FY25

    Charges primarily related to severance.

    Total charges (legal accrual + severance)
    $0.12
    Q4 FY25

    Combined impact of legal accrual and severance charges for the quarter.

    Total charges (legal accrual + severance)
    $0.18
    FY25

    Combined impact of legal accrual and severance charges for the full year.

    Revenue growth
    1.1%linked quarter
    Q4 FY25

    Linked quarter revenue increase, driven by NII growth.

    Net interest income growth
    1.9%linked quarter
    Q4 FY25

    Linked quarter NII growth, contributing to overall revenue increase.

    Adjusted operating leverage
    100
    FY25

    Positive adjusted operating leverage achieved in 2025.

    Capital returned to shareholders
    $5.2 billion37% increase over 2024
    FY25

    Total capital returned through common stock dividend and repurchases.

    Common stock repurchases
    $2.5 billion
    FY25

    Amount of common stock repurchased in 2025.

    Average loans held for investment increase
    $4.3 billionlinked quarter
    Q4 FY25

    Increase in average loans held for investment, driven by commercial and consumer loans.

    Average loans held for investment growth
    1.3%linked quarter
    Q4 FY25

    Linked quarter growth in average loans held for investment.

    Average loans held for investment growth
    3.6%
    FY25

    Full year growth in average loans held for investment.

    Average consumer and card loans growth
    5.4%
    FY25

    Full year growth in average consumer and card loans.

    Average commercial loans growth
    2.4%
    FY25

    Full year growth in average commercial loans.

    Average interest-bearing deposit cost
    2.23%27 bps decline linked quarter
    Q4 FY25

    Decline due to improving deposit mix and Fed rate reductions.

    Total cost of deposits
    1.64%20 bps reduction linked quarter
    Q4 FY25

    Reduction due to improving deposit mix and Fed rate reductions.

    Cumulative interest-bearing deposit beta
    45%improved from 38%
    Q4 FY25

    Improvement reflects stronger client deposit growth and disciplined rate reduction efforts.

    Total deposit beta
    30%improved from 24%
    Q4 FY25

    Improvement reflects stronger client deposit growth and disciplined rate reduction efforts.

    Investment banking and trading income increase
    $12 millionlinked quarter
    Q4 FY25

    Linked quarter increase, reflecting stronger M&A-related fees.

    Investment banking and trading income
    $335 millionup 28% vs Q4 FY24
    Q4 FY25

    Reflecting stronger M&A, trading, equity, and debt capital markets activity.

    Card and treasury management fees growth
    3.7%YoY
    FY25

    Year-over-year growth, driven by double-digit growth in treasury management fees.

    Noninterest expense decline (ex-legal accrual and severance)
    0.3%linked quarter
    Q4 FY25

    Decline in noninterest expense excluding the impact of the legal accrual and severance costs.

    Adjusted noninterest expense growth
    1%
    FY25

    Reflects commitment to expense discipline and driving positive operating leverage.

    Nonperforming loans held for investment
    48stable
    Q4 FY25

    Remained stable as a percentage of total loans.

    ALL for loans and leases
    1.53%declined 1 bp
    Q4 FY25

    Allowance for loan and lease losses as a percentage of total loans.

    Net charge-offs
    57increased 9 bps linked quarter
    Q4 FY25

    Increase reflects higher C&I and seasonally higher consumer losses, partially offset by lower CRE losses.

    Net charge-offs
    54declined 5 bps
    FY25

    Full year net charge-offs declined.

    New C&I clients with treasury management products
    62%
    Q4 FY25

    Percentage of new C&I clients that also utilized treasury management products, indicating high-quality, advice-driven business.

    End-of-period client deposits increase
    $7.5 billion
    Q4 FY25

    Increase in client deposits, indicating strong momentum.

    Securities portfolio balance (start of H2)
    $125 billion
    H2 FY25 start

    Approximate balance of the securities portfolio at the beginning of the second half of 2025.

    Securities portfolio balance (end of H2)
    $117 billion - $118 billion
    H2 FY25 end

    Approximate balance of the securities portfolio at the end of the second half of 2025, reflecting a reduction.

    Securities and cash combined balance
    $140 billion to $150 billion
    Q4 FY25

    Expected relatively stable combined balance of securities and cash, satisfying regulatory requirements and optimizing earnings.

    Industry KPIs

    12
    MetricValueDetails
    Loans$325 billionUSD
    Deposits—
    Rotce ROE15%%
    Cet1 ratio10.8%%
    Capital returns$750 millionUSD
    Fee income lines—
    Allowance reserves1.53%%
    Net interest income$3.7 billionUSD
    Net interest margin3.07%%
    Net charge offs npls57 bpsbps
    Total operating expenses$12.1 billionUSD
    Efficiency ratio operating leverage—

    Risks & headwinds

    5
    Macroeconomic uncertainty and employment trendsFY26 and beyond

    Unquantified

    Mitigation: Diversified franchise, stress testing, focus on client sentiment and business confidence.

    Credit spreads at tightsOngoing

    Unquantified

    Mitigation: Acknowledged as a risk being absorbed, implies careful underwriting and risk management.

    Competitive marketplaceOngoing

    Unquantified

    Mitigation: Focus on high client value, specialization, leveraging franchise strengths, and continuous investment in talent and capabilities.

    Seasonal decline in public funds depositsQ1 FY26

    Impacts Q1 FY26 NII by 2-3%

    Mitigation: Anticipated and factored into Q1 guidance.

    Fewer days in Q1Q1 FY26

    Impacts Q1 FY26 NII by 2-3%

    Mitigation: Anticipated and factored into Q1 guidance.

    What to watch in Q1 FY26

    5

    Net Interest Margin (NIM) trajectory

    Q1 FY26
    Current3.07% (Q4 FY25)
    TargetModest compression in Q1 FY26, then expansion

    Why it matters

    NIM is a primary driver of bank profitability, and its expansion is key to achieving ROTCE targets.

    Although we expect modest net interest margin compression in the first quarter, we anticipate full year 2026 average net interest margin will exceed the '25 average of 3.03% due to the benefits of fixed rate asset repricing and improved earning asset mix and lower deposit costs.

    Q&A highlights

    6

    Why is the FY26 loan growth guidance 3-4% when Q4 FY25 exit run rate was 8% YoY, implying slower growth? How will the mix shift between commercial and consumer?

    Management expects to continue momentum in high client value areas like C&I and specialty consumer lending (Sheffield, LightStream, Service Finance), while optimizing exposure in areas like indirect auto with tighter margins. The focus is on high-quality, consistent growth, with a rebalance towards more wholesale and higher client value consumer segments.

    “C&I is -- had its sort of strongest quarter. I mean, production was up really, really significantly and just high-quality business, I mean high-quality advice-driven business tied with treasury management, 62% plus had some type of treasury management products are really, really good momentum on the C&I side.”

    asked by Ryan Nash · answered by William Rogers

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Priorities and Investments

    Truist outlined five strategic priorities for 2025, focusing on accelerating performance and improving profitability. Key investments included enhancing tech and digital capabilities, particularly in AI, recruiting talent for complex financial needs, and expanding its physical presence with 100 new insight-driven branches in high-growth markets and enhancements to over 300 existing locations. These investments are foundational for future growth and are expected to accelerate in 2026.

    02

    Consumer and Small Business Banking Performance

    The CSBB segment delivered consistent strong performance in 2025, with 5% growth in average consumer and small business loans and 1% growth in average deposits. Loan growth was broad-based, with strong contributions from indirect auto and specialty lending platforms like Sheffield, Service Finance, and LightStream. Premier Banking also showed strong results, with 2025 production up 22% in deposits, 32% in lending, and 12% in financial plans, driven by higher advisor productivity.

    03

    Digital Strategy and Client Engagement

    Truist made meaningful progress in its digital strategy, integrating LightStream into its mobile app and branch account opening experience, improving efficiency and client experience. Digital new-to-bank clients increased by 10% in Q4 2025, capping a year with 9% digital production growth. The launch of 'Ask Truist Assist' in the mobile app led to a 97% increase in digital chat engagement in 2025, enhancing self-service adoption and client connectivity.

    04

    Wholesale Banking Momentum and Fee Income Growth

    Wholesale banking finished 2025 strongly, driven by improved loan and deposit growth, and a rebound in investment banking and trading revenue in the second half. The company onboarded twice as many new corporate and commercial clients, leading to strengthening loan and deposit momentum. Wholesale payment fees, including merchant services, commercial card, and treasury management, rose 8% in 2025, with treasury management fees growing 13%.

    05

    Reporting Changes and Expense Management

    Truist implemented changes to its earnings presentation, renaming 'card and payment fees' to 'card and treasury management fees' to better reflect business management. Treasury management fees, previously in 'service charges on deposits,' are now included in this new line. The company also shifted its expense commentary and guidance to GAAP noninterest expense, no longer disclosing adjusted expense, to simplify reporting and provide context on material items.

    06

    Capital Management and Shareholder Returns

    Truist maintained a strong capital position, with a CET1 ratio of 10.8% (9.5% including AOCI). The company repurchased $750 million of common stock in Q4 2025 and announced a new share repurchase authorization of up to $10 billion with no expiration date. For FY26, Truist is targeting approximately $4 billion in share repurchases, a 60% increase over 2025, demonstrating an accelerated rate of capital return to shareholders.

    AI-generated summary of the company’s earnings call. Not investment advice.