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TRUIST FINANCIAL CORP

TFC
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Business Summary

Truist Financial Corporation is a purpose-driven financial services company headquartered in Charlotte, North Carolina, with leading market share in many high-growth markets in the U.S. The company operates in the intensely competitive financial services industry, which includes national, regional, and local banks, thrifts, credit unions, investment advisers, asset managers, securities brokers and dealers, private-equity funds, hedge funds, mortgage-banking companies, finance companies, limited-purpose banks, and financial technology companies. Truist Bank, the largest subsidiary, was chartered in 1872 and is the oldest bank headquartered in North Carolina, and is one of the 10 largest commercial banks in the U.S.

Management believes that Truist's purpose, mission, and values, including a caring client-first approach, are a competitive advantage that strengthens the Company's ability to provide financial products and services to businesses and individuals in its markets. Truist competes actively with national, regional, and local financial services providers, including banks, thrifts, credit unions, investment advisers, asset managers, securities brokers and dealers, private-equity funds, hedge funds, mortgage-banking companies, finance companies, limited-purpose banks, and financial technology companies. Many of Truist's competitors have substantial positions nationally or in the markets in which we operate, and some also have greater scale, financial and operational resources, investment capacity, product and service offerings, and brand recognition.

Truist generates revenue through a wide range of banking services to individuals, businesses, and municipalities, including a variety of loans and lease financing to consumer and wholesale clients primarily within its geographic footprint, such as commercial and industrial, commercial real estate, commercial construction, residential mortgage, home equity, indirect auto, other consumer, and credit card lending. The company also provides a wide range of non-lending services, including deposits, merchant services, treasury management services, trust and retirement services, comprehensive wealth advisory services, investment brokerage services, asset management, and capital markets services. Revenue is generated through both net interest income and noninterest income, with noninterest income including wealth management income, card and treasury management fees, investment banking and trading income, other deposit revenue, mortgage banking income, lending related fees, securities gains or losses, and other income.

Truist offers a variety of loans and lease financing to consumer and wholesale clients primarily within its geographic footprint, including commercial and industrial, commercial real estate, commercial construction, residential mortgage, home equity, indirect auto, other consumer, and credit card lending. The company also provides a wide range of non-lending services to consumer and wholesale clients, including deposits, merchant services, treasury management services, trust and retirement services, comprehensive wealth advisory services, investment brokerage services, asset management, and capital markets services. For the year ended December 31, 2025, total noninterest income was $5.896 billion , which included wealth management income of $1.431 billion , card and treasury management fees of $1.360 billion , investment banking and trading income of $1.136 billion , other deposit revenue of $471 million , mortgage banking income of $452 million , lending related fees of $395 million , securities losses of $19 million , and other income of $670 million .

During 2025, Truist returned $5.2 billion of capital to common shareholders through $2.7 billion of common stock dividends and $2.5 billion in common share repurchases. In December 2025, the Board authorized the repurchase of up to $10.0 billion of common stock effective immediately with no expiration date, replacing the previous repurchase authority. During 2025, the Company redeemed all 40,000 outstanding shares of its fixed rate reset non-cumulative perpetual preferred stock series P and the corresponding 1,000,000 depositary shares representing fractional interests in such series at a redemption price of $1,000 per depositary share (equivalent to $25,000 per share of preferred stock) plus any accrued and unpaid dividends, for $1 billion . Results from continuing operations for 2025 included charges primarily related to severance of $156 million ($119 million after-tax, or $0.09 per share), an incremental accrual related to executing a settlement agreement in a specific legal matter of $130 million ($99 million after-tax, or $0.08 per share), and securities losses of $19 million ($15 million after-tax or $0.01 per share).

Net income to common shareholders totaled $5.0 billion , or $3.82 per share, for 2025, compared to $4.5 billion , or $3.36 per share, for the prior year. Net interest income - TE for the year ended December 31, 2025 was $14.619 billion , up $316 million , or 2.2% , compared to the year ended December 31, 2024. Net interest margin - TE was 3.03% , flat compared to the prior year. The provision for credit losses was $1.9 billion for the year ended December 31, 2025, up $24 million , or 1.3% , compared to the year ended December 31, 2024. The net charge-off ratio for the year ended December 31, 2025 was 0.54% , down five basis points compared to the prior year. Noninterest income was up $6.7 billion for the year ended December 31, 2025, compared to the year ended December 31, 2024. Noninterest expense was up $67 million , or 0.6% , for the year ended December 31, 2025 compared to the year ended December 31, 2024. Truist had a provision for income taxes of $1.042 billion for 2025, compared to a benefit from income taxes of $556 million in 2024.

Business Outlook

Management's target common dividend payout ratio (computed by dividing common stock dividends by net income available to common shareholders) is between 30% and 50% during normal economic conditions. Truist expects common dividend declarations, if made, to occur in January, April, July, and October with payment dates on or about the first of March, June, September, and December.

In Wholesale Banking, the strategic growth initiatives include capturing more of the commercial middle market with an industry banking strategy, continuing momentum in Investment Banking and Capital Markets, generating additional fee income from existing clients in Wealth, and deepening and growing existing client relationships in Wholesale Payments. In Consumer and Small Business Banking, the growth initiatives include growing deposits with a focus on Premier clients, increasing client acquisition, deepening client relationships, and driving digital acquisition and client engagement.

Management's strategic priorities include driving positive operating leverage through revenue growth and expense discipline. The company also aims to invest in talent, technology, and its risk infrastructure.

Truist expects to make additional investments in innovation and technology to address technological disruption in the industry, improve client offerings and service, and streamline and automate operations. The company continues to make significant investments to develop its digital platform, including enhancements to its mobile and online applications, in an effort to compete effectively.

Truist's share-repurchase programs enable Truist to acquire shares through open-market purchases or privately negotiated transactions, including through Rule 10b5-1 plans and other programs, at the discretion of management and on terms (including quantity, timing, and price) that management determines to be advisable. Actions in connection with any share-repurchase program are subject to various factors, including Truist's capital and liquidity positions and related internal frameworks, accounting and regulatory considerations (including any changes to capital, liquidity, and other regulatory requirements that may be proposed or adopted by the U.S. banking agencies), Truist's financial and operational performance, alternative uses of capital, the trading price of Truist's common stock, and general market conditions. In December 2025, the Board approved a $10.0 billion share repurchase-program with no expiration date, replacing the previous repurchase authority.

Maintaining and growing client deposits continued to be challenging as the Federal Reserve System reduced the size of its balance sheet through quantitative tightening. The future direction of the Federal Reserve System balance sheet and the level of excess reserves in the banking system may have implications for deposit gathering and competition. Deposits and other traditional banking products could be significantly disrupted by an increase in the adoption and use of digital assets, stablecoins, cryptocurrencies, tokenization, and similar products, services, and technologies that enable financial services and transactions without or with less intermediation by commercial banks.

Changes in monetary, fiscal, and other policies, and changes in the U.S. political environment, could adversely affect us. Changes in interest rates have affected our net interest income and other financial results in the past and could in the future adversely affect us. A weakening or deterioration of economic conditions has in the past and may in the future adversely affect financial results for the Company's fee-based businesses.

Risk Factors

The Company is subject to credit risk, and the Company's allowance for credit losses may not be adequate to cover realized and future losses. The Company estimates and establishes contractual lifetime reserves for credit risks and credit losses inherent in its determination of credit exposure, and if the Company fails to identify all pertinent factors, or fails to accurately estimate the impacts of factors identified, the Company's allowance for credit losses may not be adequate to cover realized and future losses. Changes in interest rates have affected our net interest income and other financial results in the past and could in the future adversely affect us, as we are highly dependent on net interest income, which is the difference between interest income on earning assets and interest expense on deposits and borrowings. Our inability to retain and grow deposits or a change in deposit costs or mix could negatively impact our funding strategy and financial results, as deposits are a relatively low cost and stable source of funding. The Company's liquidity could be impaired by an inability to access short-term funding, an unforeseen outflow of cash, or an inability to monetize liquid assets. Truist is subject to extensive and evolving government regulation and supervision, which could adversely affect our business, financial condition, results of operations, and prospects, and the regulatory and supervisory framework applicable to banking organizations is intended primarily for the protection of depositors and other customers, the DIF, and the role and stability of the U.S. financial system, rather than for the protection of shareholders and non-deposit creditors.

Management Priorities

Management's message emphasizes delivering strong, purpose-driven performance by deepening client relationships, enhancing operational efficiency, investing in talented teammates and innovative technology, and increasing capital return to shareholders. Through disciplined risk management and sound governance, management believes they strengthened the foundation and positioned Truist for sustainable growth. The five core strategic priorities for 2025, which remain unchanged looking ahead, are: execute strategic growth and profitability initiatives in both Wholesale Banking and Consumer and Small Business Banking; drive positive operating leverage through revenue growth and expense discipline; invest in talent, technology, and our risk infrastructure; maintain our credit and risk discipline; and return capital to shareholders through our common stock dividend and share repurchases. By successfully executing on these priorities, management seeks to accelerate revenue growth, drive greater positive operating leverage, and return more capital to shareholders, all while maintaining risk discipline, with these outcomes central to driving improved profitability.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 7, MD&A — Noninterest Income
  2. [2] Item 7, MD&A — Noninterest Income
  3. [3] Item 7, MD&A — Noninterest Income
  4. [4] Item 7, MD&A — Noninterest Income
  5. [5] Item 7, MD&A — Noninterest Income
  6. [6] Item 7, MD&A — Noninterest Income
  7. [7] Item 7, MD&A — Noninterest Income
  8. [8] Item 7, MD&A — Noninterest Income
  9. [9] Item 7, MD&A — Noninterest Income
  10. [10] Item 7, MD&A — Executive Overview
  11. [11] Item 7, MD&A — Executive Overview
  12. [12] Item 7, MD&A — Executive Overview
  13. [13] Item 5, Market for Registrant's Common Equity — Share Repurchases
  14. [14] Item 5, Market for Registrant's Common Equity — Preferred Stock Redemptions
  15. [15] Item 5, Market for Registrant's Common Equity — Preferred Stock Redemptions
  16. [16] Item 5, Market for Registrant's Common Equity — Preferred Stock Redemptions
  17. [17] Item 5, Market for Registrant's Common Equity — Preferred Stock Redemptions
  18. [18] Item 5, Market for Registrant's Common Equity — Preferred Stock Redemptions
  19. [19] Item 7, MD&A — Executive Overview
  20. [20] Item 7, MD&A — Executive Overview
  21. [21] Item 7, MD&A — Executive Overview
  22. [22] Item 7, MD&A — Executive Overview
  23. [23] Item 7, MD&A — Executive Overview
  24. [24] Item 7, MD&A — Executive Overview
  25. [25] Item 7, MD&A — Executive Overview
  26. [26] Item 7, MD&A — Executive Overview
  27. [27] Item 7, MD&A — Executive Overview
  28. [28] Item 7, MD&A — Executive Overview
  29. [29] Item 7, MD&A — Executive Overview
  30. [30] Item 7, MD&A — Executive Overview
  31. [31] Item 7, MD&A — Executive Overview
  32. [32] Item 7, MD&A — Net Interest Income and NIM - TE
  33. [33] Item 7, MD&A — Net Interest Income and NIM - TE
  34. [34] Item 7, MD&A — Net Interest Income and NIM - TE
  35. [35] Item 7, MD&A — Net Interest Income and NIM - TE
  36. [36] Item 7, MD&A — Provision for Credit Losses
  37. [37] Item 7, MD&A — Provision for Credit Losses
  38. [38] Item 7, MD&A — Provision for Credit Losses
  39. [39] Item 7, MD&A — Provision for Credit Losses
  40. [40] Item 7, MD&A — Noninterest Income
  41. [41] Item 7, MD&A — Noninterest Expense
  42. [42] Item 7, MD&A — Noninterest Expense
  43. [43] Item 7, MD&A — Executive Overview
  44. [44] Item 7, MD&A — Executive Overview
  45. [45] Item 5, Market for Registrant's Common Equity — Common Stock
  46. [46] Item 5, Market for Registrant's Common Equity — Share Repurchases
  47. [47] Item 7, MD&A — Earnings Highlights
  48. [48] Item 7, MD&A — Earnings Highlights
  49. [49] Item 7, MD&A — Earnings Highlights
  50. [50] Item 7, MD&A — Earnings Highlights
  51. [51] Item 7, MD&A — Earnings Highlights
  52. [52] Item 7, MD&A — Earnings Highlights
  53. [53] Item 7, MD&A — Net Interest Income and NIM - TE
  54. [54] Item 7, MD&A — Net Interest Income and NIM - TE
  55. [55] Item 7, MD&A — Net Interest Income and NIM - TE
  56. [56] Item 7, MD&A — Net Interest Income and NIM - TE
  57. [57] Item 7, MD&A — Provision for Credit Losses
  58. [58] Item 7, MD&A — Provision for Credit Losses
  59. [59] Item 7, MD&A — Noninterest Expense
  60. [60] Item 7, MD&A — Noninterest Expense
  61. [61] Item 7, MD&A — Executive Overview
  62. [62] Item 7, MD&A — Executive Overview
  63. [63] Item 7, MD&A — Executive Overview
  64. [64] Item 7, MD&A — Executive Overview
  65. [65] Item 7, MD&A — Executive Overview
  66. [66] Item 7, MD&A — Executive Overview
  67. [67] Item 7, MD&A — Executive Overview
  68. [68] Item 7, MD&A — Executive Overview
  69. [69] Item 7, MD&A — Executive Overview
  70. [70] Item 7, MD&A — Executive Overview
  71. [71] Item 7, MD&A — Executive Overview
  72. [72] Item 7, MD&A — Executive Overview
  73. [73] Item 7, MD&A — Executive Overview
  74. [74] Item 7, MD&A — Executive Overview
  75. [75] Item 7, MD&A — Executive Overview
  76. [76] Item 7, MD&A — Segment Results
  77. [77] Item 7, MD&A — Segment Results
  78. [78] Item 7, MD&A — Segment Results
  79. [79] Item 7, MD&A — Segment Results

Analysis on 6/21/2026