Truist Q3 Net Income Edges Up, Securities Gains Boost YTD Results

TL;DR

**Truist's Q3 was solid, but the real story is the massive year-over-year turnaround in noninterest income, making it a strong buy for stability.**

AI Summary

Truist Financial Corporation reported a net income of $1.452 billion for the three months ended September 30, 2025, a slight increase from $1.442 billion in the same period of 2024. For the nine months ended September 30, 2025, net income significantly improved to $3.953 billion, compared to $3.564 billion in 2024, largely due to a substantial reduction in securities losses. Total interest income decreased slightly to $6.286 billion for the quarter from $6.352 billion year-over-year, while total interest expense also declined to $2.657 billion from $2.750 billion. Net interest income saw a modest rise to $3.629 billion from $3.602 billion. Noninterest income surged to $1.558 billion for the quarter, up from $1.483 billion, and dramatically for the nine-month period to $4.350 billion from a negative $2.283 billion in 2024, primarily driven by the absence of the $6.650 billion securities losses recorded in 2024. The allowance for loan and lease losses increased to $4.988 billion as of September 30, 2025, from $4.857 billion at December 31, 2024, reflecting a provision for credit losses of $436 million for the quarter. Total assets grew to $543.851 billion from $531.176 billion, and total shareholders' equity increased to $65.646 billion from $63.679 billion.

Why It Matters

Truist's improved nine-month net income, driven by the absence of significant securities losses, signals a more stable financial environment for the bank, which is crucial for investor confidence. The increase in the allowance for credit losses to $4.988 billion suggests a cautious approach to potential loan defaults, impacting future profitability and lending capacity. For customers, stable bank performance can translate to consistent service and potentially more favorable lending terms. In a competitive banking landscape, Truist's ability to manage interest income and expenses, alongside growing noninterest income, positions it to maintain its market share against rivals like Bank of America and Wells Fargo.

Risk Assessment

Risk Level: medium — While net income improved, the allowance for loan and lease losses (ALLL) increased to $4.988 billion as of September 30, 2025, from $4.857 billion at December 31, 2024, indicating potential future credit quality concerns. The provision for credit losses remained substantial at $436 million for the quarter, suggesting ongoing vigilance regarding loan performance.

Analyst Insight

Investors should consider Truist's improved profitability and strong capital position, evidenced by the increase in total shareholders' equity to $65.646 billion. However, they should also monitor the rising allowance for credit losses and the provision for credit losses, which could signal future headwinds in loan performance.

Financial Highlights

debt To Equity

0.64

revenue

$24,714M

operating Margin

N/A

total Assets

$543.851B

total Debt

$71.105B

net Income

$1.452B

eps

N/A

gross Margin

N/A

cash Position

$4.329B

revenue Growth

-1.0%

Revenue Breakdown

Key Numbers

• $1.452B — Net Income (Q3 2025) (Increased from $1.442B in Q3 2024)
• $3.953B — Net Income (YTD 2025) (Significantly up from $3.564B in YTD 2024)
• $4.350B — Total Noninterest Income (YTD 2025) (Massive turnaround from -$2.283B in YTD 2024 due to absence of securities losses)
• $4.988B — Allowance for Credit Losses (Sep 30, 2025) (Increased from $4.857B at Dec 31, 2024, indicating potential credit concerns)
• $543.851B — Total Assets (Sep 30, 2025) (Increased from $531.176B at Dec 31, 2024)
• $65.646B — Total Shareholders' Equity (Sep 30, 2025) (Increased from $63.679B at Dec 31, 2024)
• $3.629B — Net Interest Income (Q3 2025) (Slightly up from $3.602B in Q3 2024)
• $436M — Provision for Credit Losses (Q3 2025) (Remains substantial, indicating ongoing credit risk management)

Key Players & Entities

• TRUIST FINANCIAL CORP (company) — registrant
• $1.452 billion (dollar_amount) — net income for Q3 2025
• $1.442 billion (dollar_amount) — net income for Q3 2024
• $3.953 billion (dollar_amount) — net income for nine months ended Sep 30, 2025
• $3.564 billion (dollar_amount) — net income for nine months ended Sep 30, 2024
• $6.650 billion (dollar_amount) — securities losses in 2024
• $4.988 billion (dollar_amount) — allowance for loan and lease losses as of Sep 30, 2025
• $4.857 billion (dollar_amount) — allowance for loan and lease losses as of Dec 31, 2024
• $436 million (dollar_amount) — provision for credit losses for Q3 2025
• $543.851 billion (dollar_amount) — total assets as of Sep 30, 2025

FAQ

Risk Factors

• Credit Risk and Loan Portfolio Quality [high — financial]: The allowance for loan and lease losses (ALLL) increased to $4.988 billion as of September 30, 2025, from $4.857 billion at December 31, 2024. A provision for credit losses of $436 million was recorded for the quarter. This increase suggests potential concerns about the creditworthiness of borrowers or anticipated economic downturns impacting loan performance.
• Interest Rate Sensitivity [medium — market]: Fluctuations in interest rates can impact net interest income. While net interest income saw a modest rise to $3.629 billion in Q3 2025 from $3.602 billion in Q3 2024, significant shifts in the interest rate environment could affect future profitability.
• Investment Securities Valuation [medium — market]: The company holds substantial investment securities, including $65.522 billion in AFS securities and $48.022 billion in HTM securities as of September 30, 2025. Unrealized losses or gains in these portfolios, particularly in the AFS category, can impact Accumulated Other Comprehensive Income (AOCI) and overall equity.
• Cybersecurity and Data Security [high — operational]: As a financial institution, Truist is a target for cyberattacks. Breaches could lead to significant financial losses, reputational damage, and regulatory penalties. The company's robust IT infrastructure and security protocols are critical to mitigating this risk.
• Regulatory Compliance and Changes [high — regulatory]: The financial services industry is heavily regulated. Changes in regulations, such as capital requirements, consumer protection laws, or anti-money laundering rules, can increase compliance costs and impact business operations. The 'Regulatory and Supervisory Update' section in the MD&A is crucial for monitoring these developments.
• Liquidity Risk [medium — financial]: Maintaining adequate liquidity is essential for meeting obligations and funding operations. While total assets grew to $543.851 billion, the company must manage its deposit base and access to funding markets effectively, especially during periods of economic stress.

Industry Context

Truist Financial Corporation operates within the highly competitive and regulated U.S. banking industry. Key trends include ongoing digital transformation, evolving customer expectations for seamless online and mobile experiences, and a dynamic interest rate environment impacting net interest margins. Consolidation within the industry continues, with larger institutions leveraging scale and technology.

Regulatory Implications

As a large financial institution, Truist is subject to stringent regulatory oversight from bodies like the Federal Reserve, OCC, and CFPB. Compliance with capital adequacy rules (e.g., Basel III), consumer protection laws, and cybersecurity mandates is paramount. Any changes in regulatory frameworks, such as increased capital requirements or new compliance burdens, could materially affect profitability and operations.

What Investors Should Do

1. Monitor the trend in the Allowance for Loan and Lease Losses (ALLL) and the Provision for Credit Losses.
2. Analyze the drivers of noninterest income, particularly the impact of securities gains/losses.
3. Evaluate the impact of interest rate changes on net interest income and investment portfolio valuations.
4. Assess the company's capital adequacy and liquidity position.

Key Dates

• 2025-09-30: End of Q3 2025 — Reported net income of $1.452 billion, total assets of $543.851 billion, and shareholders' equity of $65.646 billion. Allowance for loan and lease losses stood at $4.988 billion.
• 2025-09-30: Nine Months Ended Q3 2025 — Reported net income of $3.953 billion, a significant improvement driven by the absence of prior year securities losses. Total noninterest income for the period was $4.350 billion.
• 2024-12-31: End of Fiscal Year 2024 — Allowance for loan and lease losses was $4.857 billion. Total assets were $531.176 billion, and shareholders' equity was $63.679 billion.

Glossary

ALLL

Allowance for Loan and Lease Losses. A contra-asset account that reduces the carrying amount of loans and leases to their estimated net realizable value. (An increase in ALLL, as seen from $4.857B to $4.988B, can indicate management's expectation of future credit losses.)

AFS securities

Available-for-Sale securities. Debt and equity securities that are not classified as held-to-maturity or trading securities. They are reported at fair value, with unrealized gains and losses included in Accumulated Other Comprehensive Income (AOCI). (The $65.522 billion in AFS securities represents a significant portion of assets, and their fair value fluctuations impact equity.)

HTM securities

Held-to-Maturity securities. Debt securities that the entity has the intent and ability to hold until maturity. They are reported at amortized cost, but fair value is disclosed. (The $48.022 billion in HTM securities, with a disclosed fair value of $39.667 billion, shows a significant difference between book value and market value, highlighting potential unrealized losses.)

Net Interest Income

The difference between interest income generated by a bank's interest-earning assets and the interest expense paid on its interest-bearing liabilities. (A key profitability metric for banks. Truist's Net Interest Income increased slightly to $3.629 billion in Q3 2025.)

Noninterest Income

Revenue generated from sources other than traditional interest income, such as fees, service charges, trading gains, and investment banking income. (A significant driver of the year-to-date net income improvement, with a dramatic turnaround from negative $2.283 billion in YTD 2024 to positive $4.350 billion in YTD 2025, primarily due to the absence of securities losses.)

Provision for credit losses

An expense recognized by a financial institution to cover potential losses from loans and leases that may not be repaid. (The $436 million provision for Q3 2025 indicates ongoing management of credit risk, though lower than the $448 million in the prior year's quarter.)

AOCI

Accumulated Other Comprehensive Income. A component of shareholders' equity that includes unrealized gains and losses on available-for-sale securities, foreign currency translation adjustments, and pension plan adjustments. (AOCI was negative $6.373 billion as of Sep 30, 2025, a significant improvement from negative $8.213 billion at Dec 31, 2024, suggesting a reduction in unrealized losses on investments.)

Year-Over-Year Comparison

Compared to the prior year's filing (presumably Q3 2024), Truist Financial Corporation shows a modest increase in net income for the quarter ($1.452B vs. $1.442B) and a significant improvement year-to-date ($3.953B vs. $3.564B), largely due to the absence of substantial securities losses in 2025. Total assets have grown to $543.851 billion from $531.176 billion, and shareholders' equity has increased to $65.646 billion from $63.679 billion. The allowance for loan and lease losses has also increased, indicating a more cautious stance on credit risk. Noninterest income has seen a dramatic turnaround, primarily driven by the lack of prior-year losses.

Key Financial Figures

• $5 — ange on which registered Common Stock, $5 par value TFC New York Stock Exchange

Filing Documents

• tfc-20250930.htm (10-Q) — 6620KB
• ex311certification3q25.htm (EX-31.1) — 9KB
• ex312certification3q25.htm (EX-31.2) — 9KB
• ex32certification3q25.htm (EX-32) — 5KB
• tfc-20250930_g1.jpg (GRAPHIC) — 139KB
• 0000092230-25-000157.txt ( ) — 32180KB
• tfc-20250930.xsd (EX-101.SCH) — 101KB
• tfc-20250930_cal.xml (EX-101.CAL) — 108KB
• tfc-20250930_def.xml (EX-101.DEF) — 945KB
• tfc-20250930_lab.xml (EX-101.LAB) — 1453KB
• tfc-20250930_pre.xml (EX-101.PRE) — 1212KB
• tfc-20250930_htm.xml (XML) — 9028KB

- Financial Information

PART I - Financial Information Glossary of Defined Terms 1

Forward-Looking Statements and Other Terms 3

Forward-Looking Statements and Other Terms 3

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets (Unaudited) 4 Consolidated Statements of Income (Unaudited) 5 Consolidated Statements of Comprehensive Income (Unaudited) 6 Consolidated Statements of Changes in Shareholders' Equity (Unaudited) 7 Consolidated Statements of Cash Flows (Unaudited) 8

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Note 1. Basis of Presentation 9 Note 2. Discontinued Operations 10 Note 3. Securities Financing Activities 11 Note 4. Investment Securities 12 Note 5. Loans and ACL 14 Note 6. Goodwill and Other Intangible Assets 25 Note 7. Loan Servicing 26 Note 8. Other Assets and Liabilities 27 Note 9. Borrowings 28 Note 10. Shareholders' Equity 29 Note 11. AOCI 30 Note 12. Income Taxes 31 Note 13. Benefit Plans 31 Note 14. Commitments and Contingencies 32 Note 15. Fair Value Disclosures 35 Note 16. Derivative Financial Instruments 40 Note 17. Computation of EPS 45 Note 18. Operating Segments 46

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Executive Overview 49 Analysis of Results of Operations 51 Analysis of Financial Condition 58 Risk Management 68 Liquidity 72 Capital 75 Share Repurchase Activity 76 Regulatory and Supervisory Update 76 Critical Accounting Policies 77

Quantitative and Qualitative Disclosures About Market Risk (see Market Risk in MD&A) 68

Item 3. Quantitative and Qualitative Disclosures About Market Risk (see Market Risk in MD&A) 68

Controls and Procedures 78

Item 4. Controls and Procedures 78

- Other Information

PART II - Other Information

Legal Proceedings 78

Item 1. Legal Proceedings 78

Risk Factors 78

Item 1A. Risk Factors 78

Unregistered Sales of Equity Securities and Use of Proceeds 78

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 78

Defaults Upon Senior Securities - (none)

Item 3. Defaults Upon Senior Securities - (none)

Mine Safety Disclosures - (not applicable)

Item 4. Mine Safety Disclosures - (not applicable)

Other Information 78

Item 5. Other Information 78

Exhibits 79

Item 6. Exhibits 79 Glossary of Defined Terms The following terms may be used throughout this report, including the consolidated financial statements and related notes. Term Definition ACL Allowance for credit losses AFS Available-for-sale Agency MBS Mortgage-backed securities issued by a U.S. government agency or GSE ALCO Asset and Liability Committee ALLL Allowance for loan and lease losses AOCI Accumulated other comprehensive income (loss) Board Board of Directors of Truist Financial Corporation BRC Joint Risk Committee of the Boards of Directors of Truist Financial Corporation and Truist Bank CCAR Comprehensive Capital Analysis and Review CD Certificate of deposit CDI Core deposit intangible CEO Chief Executive Officer of Truist Financial Corporation CET1 Common equity tier 1 CFO Chief Financial Officer of Truist Financial Corporation CFPB Consumer Financial Protection Bureau CODM Chief Operating Decision Maker Company Truist Financial Corporation and its subsidiaries (interchangeable with "Truist" below) CRE Commercial real estate CSBB Consumer and Small Business Banking, an operating segment EPS Earnings per common share Exchange Act Securities Exchange Act of 1934, as amended EVE Economic value of equity FDIC Federal Deposit Insurance Corporation FHLB Federal Home Loan Bank FHLMC Federal Home Loan Mortgage Corporation FNMA Federal National Mortgage Association FRB Board of Governors of the Federal Reserve System GAAP Accounting principles generally accepted in the United States of America GDP Gross Domestic Product GSE U.S. government-sponsored enterprise HFI Held for investment HQLA High-quality liquid assets HTM Held-to-maturity IPV Independent price verification IRR Interest rate risk LCR Liquidity Coverage Ratio LHFS Loans held for sale LOCOM Lower of cost or market Market Risk Rule Market risk capital requirements issued jointly by the OCC, FRB, and

Forward-Looking Statements and Other Terms

Forward-Looking Statements and Other Terms From time to time we have made, and in the future will make, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as "believe," "expect," "anticipate," "intend," "pursue," "seek," "continue," "estimate," "project," "outlook," "forecast," "potential," "target," "objective," "trend," "plan," "goal," "initiative," "priorities," or other words of comparable meaning or future-tense or conditional verbs such as "may," "will," "should," "would," or "could." Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results. This report, including any information incorporated by reference in this report, contains forward-looking statements. We also may make forward-looking statements in other documents that are filed or furnished with the SEC. In addition, we may make forward-looking statements orally or in writing to investors, analysts, members of the media, and others. All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, and results may differ materially from those set forth in any forward-looking statement. While no list of assumptions, risks, and uncertainties could be complete, some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements include: evolving political, geopolitical, business, social, economic, and market conditions at local, regional, national, and international levels;

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS TRUIST FINANCIAL CORPORATION AND SUBSIDIARIES Unaudited (Dollars in millions, except per share data, shares in thousands) Sep 30, 2025 Dec 31, 2024 Assets Cash and due from banks $ 4,329 $ 5,793 Interest-bearing deposits with banks 32,523 33,975 Securities borrowed or purchased under agreements to resell 2,981 2,550 Trading assets at fair value 5,731 5,100 AFS securities at fair value 65,522 67,464 HTM securities (fair value of $ 39,667 and $ 40,286 , respectively) 48,022 50,640 LHFS (including $ 1,811 and $ 1,233 at fair value, respectively) 1,925 1,388 Loans and leases (including $ 11 and $ 13 at fair value, respectively) 323,738 306,383 ALLL ( 4,988 ) ( 4,857 ) Loans and leases, net of ALLL 318,750 301,526 Premises and equipment 3,176 3,225 Goodwill 17,125 17,125 CDI and other intangible assets 1,328 1,550 Loan servicing rights at fair value 3,776 3,708 Other assets (including $ 1,992 and $ 1,271 at fair value, respectively) 38,663 37,132 Total assets $ 543,851 $ 531,176 Liabilities Noninterest-bearing deposits $ 106,197 $ 107,451 Interest-bearing deposits (including $ 499 and $ 192 at fair value, respectively) 288,710 283,073 Short-term borrowings (including $ 2,479 and $ 1,896 at fair value, respectively) 29,376 29,205 Long-term debt 41,729 34,956 Other liabilities (including $ 1,795 and $ 2,286 at fair value, respectively) 12,193 12,812 Total liabilities 478,205 467,497 Shareholders' Equity Preferred stock 5,907 5,907 Common stock, $ 5 par value 6,396 6,580 Additional paid-in capital 34,278 35,628 Retained earnings 25,438 23,777 AOCI, net of deferred income taxes ( 6,373 ) ( 8,213 ) Total shareholders' equity 65,646 63,679 Total liabilities and shareholders' equity $ 543,851 $ 531,176 Common shares outstanding 1,279,246 1,315,936 Common shares authorized 2,000,000 2,000,000 Preferred shares outstanding 216 216 Preferred shares authorized 5,000 5,000 T

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