Truist Financial Corporation (TFC) Reports First Quarter 2025 Results

Truist Financial Corporation (NYSE: TFC) has released its financial results for the first quarter of 2025. The company reported a net income of $1.2 billion, or $0.87 per share, aligning with market expectations. This article provides an overview of the company’s performance for the quarter and its future guidance.

TFC Reports Q1 with $0.87 EPS, Net Income of $1.2 Billion, Aligning with Market Expectations

Truist Financial Corporation (TFC) reported its financial results for the first quarter of 2025, showcasing a solid performance amidst a challenging economic landscape. The company achieved a net income available to common shareholders of $1.2 billion, or $0.87 per diluted share, aligning with and sllightly beating market expectations for earnings per share (EPS) of $0.86. Total revenue for the quarter stood at $4.95 billion, meeting revenue expectations.

However, this represented a 3.2% decline from the previous quarter, attributed to a decrease in both net interest income and noninterest income.

Net interest income for the quarter was $3.56 billion, a 2.4% decrease from the fourth quarter of 2024. The decline was primarily due to two fewer days in the quarter and a six-basis point reduction in net interest margin. Despite these challenges, Truist managed to increase its average earning assets by $3.6 billion, or 0.8%, driven by growth in average total loans and other earning assets.

The yield on the average total loan portfolio was 5.97%, down 15 basis points due to the impact of variable rate loan repricing.

Noninterest income declined by 5.3% to $1.39 billion compared to the previous quarter. This decrease was mainly due to lower other income, partially offset by higher investment banking and trading income. The company experienced a reduction in wealth management income and card and payment-related fees, while mortgage banking income saw an increase of 11.3% from the same quarter last year.

Truist’s noninterest expense decreased by 4.3% to $2.91 billion, reflecting lower costs in professional fees, outside processing, and equipment expenses.

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Truist’s Capital Levels Remain Strong

Looking ahead, Truist Financial Corporation remains committed to its strategic initiatives and maintaining a strong financial position. The company plans to continue investing in talent and technology to support its growth objectives and enhance operational efficiency. Despite market volatility, Truist’s robust capital and liquidity profile provide a solid foundation for navigating economic uncertainties.

Truist’s capital levels remained strong, with a common equity tier 1 (CET1) ratio of 11.3% as of March 31, 2025. The company repurchased $500 million in common shares during the quarter, resulting in a dividend and total payout ratio of 59% and 102%, respectively. The liquidity coverage ratio (LCR) averaged 111%, exceeding the regulatory minimum of 100%. These metrics underscore Truist’s commitment to maintaining a prudent approach to capital management.

Truist’s leadership expressed confidence in the company’s ability to achieve its strategic goals and deliver value to shareholders. CEO Bill Rogers highlighted the company’s focus on executing its strategy amidst market volatility, emphasizing the importance of maintaining effective risk controls and capitalizing on growth opportunities. With a clear strategic focus and a commitment to building better lives and communities, Truist is well-positioned to drive improved performance in the coming quarters.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.