Truist rakes in $1.2bn in Q1 amid market volatility—here’s what’s driving the surge

How did Truist Financial perform in the first quarter of 2025?

Truist Financial Corporation reported net income of $1.2 billion available to common shareholders in the first quarter of 2025, or $0.87 per diluted share, demonstrating stability and operational discipline amid evolving macroeconomic conditions. The bank’s results reflected growth in loans and deposits, controlled expenses, and a significant $500 million share repurchase initiative, resulting in a total payout ratio of 102%​.

Net interest income on a taxable-equivalent basis stood at $3.56 billion, reflecting a 2.4% quarter-over-quarter decline attributed to two fewer calendar days, yet a 3.8% year-on-year increase supported by prior balance sheet repositioning. The net interest margin declined six basis points sequentially to 3.01% but remained above Q1 2024 levels. Noninterest income fell 5.3% to $1.39 billion, mainly due to lower other income from equity investments, partially offset by stronger investment banking and trading income​.

What drove loan and deposit growth at Truist this quarter?

Average loans and leases held for investment climbed by $3.3 billion, or 1.1% sequentially, fueled by increases in commercial and industrial lending, residential mortgages, and indirect auto loans. End-of-period loan balances reached $308.6 billion. In consumer lending, residential mortgage volumes rose 2.3% and indirect auto loans grew 2.0%, while home equity and credit card portfolios showed slight declines​.

Deposits also showed positive momentum, with average balances rising by $2.2 billion, or 0.6%, driven by gains in interest checking and time deposits. The average cost of deposits declined ten basis points to 1.79%, reflecting effective repricing strategies and easing interest rate pressures​.

How did Truist manage expenses and asset quality?

Total noninterest expenses were $2.91 billion, a 4.3% decline from the previous quarter, while adjusted noninterest expenses dropped 5.4% thanks to reduced spending on professional services, equipment, and other operations. These efficiencies helped push the adjusted efficiency ratio to 56.4%, compared to 57.7% in Q4 2024​.

Asset quality remained sound, with a net charge-off ratio of 0.60%, marginally up one basis point from the prior quarter. The allowance for loan and lease losses (ALLL) ratio dipped to 1.58%. Nonperforming loans represented 0.48% of loans held for investment, up slightly from the previous quarter but still within a manageable range. Loans 90+ days past due rose modestly but remained flat when excluding government-backed loans​.

What do capital and liquidity metrics suggest?

Truist’s capital position remained robust, with a common equity tier 1 (CET1) ratio of 11.3%, down 20 basis points due to risk-weighted asset growth, shareholder returns, and the final CECL phase-in. Tangible book value per share rose to $30.95, up from $30.01 in Q4. The return on tangible common equity (ROTCE) stood at 12.3%, reflecting strong capital productivity. The average liquidity coverage ratio (LCR) for Q1 2025 was 111%, above regulatory minimums​.

What strategic initiatives are underway for 2025?

Chairman and CEO Bill Rogers emphasized the company’s continued investment in talent, technology, and risk management as key pillars for long-term growth. Truist is expanding its consumer banking segment, with a 47% year-over-year increase in consumer loan production and a 14% sequential increase in financial planning activity through Premier Banking. The bank added more than 39,000 net new checking accounts in Q1, up from the prior quarter​.

Wholesale Banking also contributed positively, with a $2.3 billion increase in average wholesale loans. Truist enhanced its payment systems with real-time capabilities and saw year-over-year double-digit growth in treasury management revenue. The company also launched a new digital interface for Truist Wealth clients, boosting satisfaction scores and broadening digital engagement​.

On the technology front, Truist’s digital growth accelerated. New-to-bank clients acquired digitally rose 23% year-over-year, contributing 40% of total new customers in the quarter. The total number of mobile users surpassed 7.3 million, with more than 80% of all transactions conducted via self-service channels​.

What is the sentiment and stock outlook for Truist?

As of April 17, 2025, Truist Financial Corporation (NYSE: TFC) closed at $35.90 per share. The stock is down approximately 17% year-to-date, underperforming the KBW Regional Banking Index, which has declined 15% during the same period. Despite this short-term weakness, the stock continues to attract long-term institutional interest.

Institutional investors currently hold around 71.3% of TFC’s shares. Over the past year, institutional inflows totaled $4.56 billion, while outflows reached $3.57 billion, indicating sustained confidence in Truist’s fundamentals. The bank’s strong core profitability, evidenced by growing net interest income and a stable credit profile, supports a positive long-term view.

Analysts suggest a hold rating for existing investors, citing the need to monitor improvements in noninterest income and trading activity. However, the pullback in stock price and the company’s capital return strategy may present a buy opportunity for long-term investors looking to enter at a relative discount. A sell position is only advised for those with a short-term horizon concerned about margin pressure or weaker trading revenues.

With projected year-over-year net interest income growth of around 3%, steady credit quality, and management’s commitment to shareholder value through dividends and buybacks, the sentiment surrounding Truist appears cautiously optimistic.