Truist beats estimates, maintains 2025 guidance

• Key insight: Truist Financial reported third-quarter earnings Friday, with earnings per share that beat analysts’ estimates.
• Forward look: The regional bank expects full-year 2025 expenses to rise about 1% compared with the prior year.
• Supporting data: Wealth management fees rose 6.9% year over year.

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Truist Financial exceeded Wall Street expectations for third-quarter earnings, with a year-over-year increase in wealth management income and service charges on deposits both contributing to the higher results.

The regional bank, which recently announced on a branch opening project as part of an effort to gain more mass-affluent customers, reported net income of $1.45 billion for the period ending Sept. 30. That’s a slight improvement from net income of $1.44 billion in the year-ago quarter.

Earnings per share came in at $1.04. Analysts polled by S&P Capital IQ had predicted earnings per share of $0.99. Revenue totaled $5.19 billion, up approximately 2% compared with the same quarter last year, while expenses rose by 3% during the same time period to $3.01 billion.

The Charlotte, North Carolina-based company put a firm number on one of its most closely watched profitability metrics, return on tangible common equity, disclosing in its third-quarter earnings presentation that it’s aiming to achieve a 15% ROTCE in 2027.

For the third quarter, Truist’s ROTCE was 13.6%.

It was a solid quarter for fee income, which climbed 5.1% year over year, the bank said in a press release. Wealth management income totaled $374 million for the quarter, up 6.9% year over year, largely as a result of more assets under management, the bank said. Service charges on deposits rose even higher, up 8.6% due to higher treasury management fees, it said.

But those weren’t the only bright spots. Mortgage banking revenue was up 11.3% year over year while lending-related fees were up 17%. Investment banking and trading fees were down 2.7%.

In August, the $543.9 billion-asset bank said it intends to open 100 branches and renovate 300 existing offices in high-growth markets, primarily in the Southeast, as a way to attract more mass-affluent or “premier” customers, which Truist executives have previously defined as individuals with at least $100,000 in deposits or assets under management of up to $1 million.

Read more about Truist: https://www.americanbanker.com/organization/truist-financial

As part of the same branch opening-and-refreshing initiative, Truist is hiring more financial advisors to serve those clients, modernizing ATMs and deploying more AI tools and capabilities.

Truist’s branch plans are among a recent wave of branch expansions being undertaken by large and regional banks. Most are targeting the fast-growing markets of the Southeast.

Truist has not yet disclosed the number of new branches to be built in each of the target markets, which includes Atlanta, Austin, Dallas, Miami, Orlando, Charlotte, Philadelphia and Washington, D.C. It has also not yet said which existing branches will be renovated.

For the third quarter, Truist’s net interest income was $3.63 billion, up 0.6% year over year.

Loans and leases were $325.7 billion at the end of the quarter, up from $304.4 billion in the year-ago quarter. Deposits totaled $394.9 billion, an increase from $387.8 billion a year ago.

On Friday, Truist maintained its guidance for the full year. Adjusted revenue for 2025 should be up 1.5-2.5% compared with 2024 while adjusted expenses should rise about 1%, the bank said.

Read more about bank earnings here: https://www.americanbanker.com/earnings

During the quarter, the bank repurchased $500 million of its common stock. It expects to buy back another $750 million in the fourth quarter.