Truist Financial (NYSE:TFC) Issues Quarterly Earnings Results

Truist Financial (NYSE:TFC) posted its earnings results on Friday. The insurance provider reported $1.16 earnings per share for the quarter, missing analysts’ consensus estimates of $1.17 by ($0.01), FiscalAI reports. Truist Financial had a return on equity of 10.06% and a net margin of 19.13%. The firm had revenue of $5.30 billion for the quarter, compared to analyst estimates of $5.35 billion. During the same period in the prior year, the business posted $1.04 EPS. The firm’s quarterly revenue was up 1.3% compared to the same quarter last year.

Here are the key takeaways from Truist Financial’s conference call:

• Adjusted third-quarter EPS rose 12% year over year to $1.16, while adjusted ROTCE improved 100 basis points to 14.6%. Deposit growth, wealth management performance and expense control exceeded or met expectations.
• Truist completed the $5.5 billion RAC auto-loan sale and agreed to sell $7.7 billion of LightStream loans, reducing credit risk and wholesale funding needs. Management said the transactions are expected to improve capital efficiency, tangible book value and future EPS/ROTCE, although they will reduce near-term net interest income.
• CEO Mike Lyons outlined a strategy centered on relationship-based consumer and wholesale banking, including stronger branch, digital, payments, treasury management, wealth and commercial-lending capabilities. Truist is conducting a company-wide review to redirect capital and expenses toward strategic businesses, with further details expected in early 2027.
• Average loans declined 1.1% sequentially as Truist reduced lower-return lending and experienced higher paydowns, while investment banking revenue was delayed by market volatility. The bank expects fourth-quarter net interest income of $3.65 billion to $3.7 billion, including a roughly $125 million impact from the RAC sale.
• Management reiterated its target for 15% ROTCE in 2027 and 16%–18% over the long term, alongside expectations for 3%–4% 2026 average loan growth excluding the RAC and LightStream sales. Truist also plans approximately $1 billion of fourth-quarter share repurchases while preserving a strong through-the-cycle capital position.

Truist Financial Stock Up 1.3%

TFC stock opened at $47.17 on Friday. Truist Financial has a 52 week low of $41.60 and a 52 week high of $56.19. The business has a 50-day simple moving average of $49.17 and a 200 day simple moving average of $49.61. The company has a quick ratio of 0.86, a current ratio of 0.86 and a debt-to-equity ratio of 0.73. The company has a market cap of $57.62 billion, a PE ratio of 12.16, a price-to-earnings-growth ratio of 1.04 and a beta of 0.92.

Truist Financial Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Friday, August 14th were paid a $0.52 dividend. This represents a $2.08 dividend on an annualized basis and a yield of 4.4%. The ex-dividend date of this dividend was Friday, August 14th. Truist Financial’s payout ratio is 47.71%.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on TFC. JPMorgan Chase & Co. reduced their target price on shares of Truist Financial from $54.00 to $50.50 and set an “underweight” rating for the company in a research report on Friday, October 2nd. Bank of America reaffirmed a “neutral” rating and set a $56.00 price target (up from $54.00) on shares of Truist Financial in a research report on Wednesday, July 8th. Wells Fargo & Company set a $52.00 price target on shares of Truist Financial in a research report on Thursday, October 8th. Morgan Stanley reiterated an “equal weight” rating and issued a $54.00 price objective (down from $62.00) on shares of Truist Financial in a research note on Monday, July 6th. Finally, UBS Group cut their price objective on shares of Truist Financial from $55.00 to $50.00 and set a “neutral” rating for the company in a report on Monday, October 5th. Seven analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Truist Financial presently has a consensus rating of “Hold” and an average target price of $54.39.

Insider Activity

In other news, CEO Michael Lyons acquired 21,000 shares of Truist Financial stock in a transaction on Thursday, September 17th. The shares were purchased at an average cost of $48.36 per share, for a total transaction of $1,015,560.00. Following the completion of the purchase, the chief executive officer directly owned 21,000 shares of the company’s stock, valued at approximately $1,015,560. This represents a ∞ increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director K. Boyer, Jr. sold 3,986 shares of the firm’s stock in a transaction dated Thursday, July 23rd. The shares were sold at an average price of $50.70, for a total transaction of $202,090.20. Following the completion of the transaction, the director directly owned 10,270 shares in the company, valued at approximately $520,689. This represents a 27.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 30,516 shares of company stock worth $1,584,428. 0.15% of the stock is owned by company insiders.

Truist Financial Company Profile

Truist Financial Corporation is a financial services company headquartered in Charlotte, North Carolina, operating through its principal subsidiary, Truist Bank. The company provides banking, lending, investment, insurance and wealth management services to consumers, small businesses, commercial clients and institutional customers.

Its offerings include checking and savings accounts, mortgages, consumer loans, credit cards, commercial and industrial lending, treasury and payment services, investment banking, brokerage, asset management and insurance products.