Executive Summary

Q1 2025 delivered solid fundamentals: net income available to common shareholders of $1.16B and diluted EPS of $0.87; adjusted EPS also $0.87, with NIM at 3.01% and efficiency ratio improved 130 bps QoQ to 59.3% (adjusted 56.4%) .
Versus estimates: S&P Global consensus Primary EPS of $0.864 was modestly beaten by an actual of $0.89*; revenue missed on the S&P basis ($4.94B consensus vs $4.44B actual*) while company TE revenue was $4.95B .
Management lowered 2025 revenue outlook to +1.5–2.5% (from +3.0–3.5% prior) and adjusted expense outlook to ~+1% (from ~+1.5%); Q2 2025 plans include up to $750M of share repurchases, signaling capital return confidence despite weaker IB/trading activity and a flatter curve .
Potential stock catalysts: aggressive buybacks (up to $750M in Q2), continued deposit cost repricing (-10 bps QoQ to 1.79%), and operating leverage improvement; offsets include reduced IB/trading outlook and lower medium-term rate-driven NII uplift .

What Went Well and What Went Wrong

What Went Well
- Expense discipline: adjusted noninterest expense fell 5.4% QoQ on lower other expense, professional fees/outside processing, and equipment expense; efficiency ratio improved QoQ (adjusted 56.4%) .
- Loan and deposit growth: average loans +1.1% QoQ and average deposits +0.6% QoQ; deposit cost down 10 bps QoQ to 1.79% amid repricing .
- Strategic tech progress: “Truist Client Pulse” AI tool to identify friction points; Truist Assist handled >1M conversations with >80% fully self-service; progress in real-time payments (Zelle disbursements) . CEO: “We continue to invest in talent and technology…well positioned to succeed… and continue capitalizing on opportunities” .
What Went Wrong
- Noninterest income declined 5.3% QoQ (down $78M) driven by lower other income; YoY noninterest income down 3.7% on weaker IB/trading and wealth management (post Sterling sale) .
- NIM down 6 bps QoQ to 3.01% (two fewer days, lower medium-term rates); management reduced NII repricing benefit by 40–50 bps due to curve dynamics .
- Reduced revenue outlook: IB/trading now expected flat YoY (vs prior low double-digit growth), pressuring adjusted revenue growth and necessitating buybacks to offset lower topline .

Financial Results

Metric	Q1 2024	Q4 2024	Q1 2025
Total Revenue - Taxable Equivalent ($USD Billions)	$4.871	$5.111	$4.947
Net Interest Income - Taxable Equivalent ($USD Billions)	$3.425	$3.641	$3.555
Noninterest Income ($USD Billions)	$1.446	$1.470	$1.392
Diluted EPS ($)	$0.81	$0.91	$0.87
NIM - Taxable Equivalent (%)	2.88%	3.07%	3.01%
Efficiency Ratio - Unadjusted (%)	61.3%	60.0%	59.3%
Efficiency Ratio - Adjusted (%)	56.2%	57.7%	56.4%

Segment performance (selected):

Segment	Metric ($USD Millions)	Q4 2024	Q1 2025
Consumer & Small Business Banking	Segment Net Interest Income	2,496	2,284
	Noninterest Income	535	503
	Total Noninterest Expense	1,741	1,663
	Segment Net Income	717	602
Wholesale Banking	Segment Net Interest Income	1,600	1,593
	Noninterest Income	1,038	949
	Total Noninterest Expense	1,299	1,301
	Segment Net Income	975	888

Key KPIs:

KPI	Q1 2024	Q4 2024	Q1 2025
Average Loans & Leases ($USD Billions)	$309.426	$303.110	$306.395
Average Deposits ($USD Billions)	$389.058	$390.042	$392.204
Deposit Cost (%)	2.03%	1.89%	1.79%
Net Charge-Off Ratio (%)	0.64%	0.59%	0.60%
CET1 Ratio (%)	10.1%	11.5%	11.3%
ROTCE (%)	16.3%	12.9%	12.3%
TBVPS ($)	$21.64	$30.01	$30.95

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted Revenue (TE) Growth	FY 2025 vs FY 2024	+3.0% to +3.5%	+1.5% to +2.5%	Lowered
Adjusted Expenses Growth	FY 2025 vs FY 2024	~+1.5%	~+1%	Lowered
Net Charge-Off Ratio	FY 2025	~60 bps	~60 bps	Maintained
Effective Tax Rate	FY 2025	~17% effective; ~20% FTE	~17% effective; ~20% FTE	Maintained
Adjusted Revenue (TE) QoQ	Q2 2025 vs Q1 2025	N/A	Up 1% to 2%	New
Adjusted Expenses QoQ	Q2 2025 vs Q1 2025	N/A	Up 2% to 3%	New
Share Repurchases	Q2 2025	N/A	Up to $750M	New

Other actions: common dividend of $0.52 declared for Q2 2025 payable June 2, 2025 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2: Q3 2024)	Q-1: Q4 2024	Current Period (Q1 2025)	Trend
Investment Banking & Trading	Strongest quarterly IB/trading since 2021; market share gains	IB/trading down QoQ; debt capital markets strong; outlook cautious	Outlook cut to flat YoY; clients delaying M&A/ECM; debt DCM strong; client-focused trading model	Softer near term
NII/NIM & Repricing	NIM +10 bps QoQ to 3.12%	NIM -5 bps QoQ to 3.07%	NIM 3.01% (-6 bps QoQ); ~$42B fixed-rate assets to reprice; benefit 40–50 bps lower than Jan view	Moderating uplift
Deposits & Pricing	Total cost 2.08%; down 1 bp QoQ	Total cost 1.89%; down 19 bps	Total cost 1.79%; down 10 bps; more surgical pricing tools	Improving
Digital/AI & Payments	Digital growth, account openings, UX gains	Continued investment in tech & infrastructure	Truist Client Pulse AI; Truist Assist >1M conversations, >80% self-service; Zelle disbursements, payments satisfaction up	Expanding
Capital & Buybacks	$500M buybacks; $4.5B remaining authorization; expected $500M in Q4	$500M buybacks; CET1 11.5%	$500M repurchased in Q1; target up to $750M in Q2; CET1 11.3%	More aggressive
CRE/Asset Quality	NPLs stable; CRE reserves detailed; office ~1.5% of loans	NPLs stable; ALLL ratio ~1.59%; office exposure and LTVs updated	NPLs 0.48%; NCO down YoY; ALLL 1.58%; coverage robust	Stable

Management Commentary

Bill Rogers (CEO): “We’re reducing our revenue outlook…given slower investment banking and capital markets activity and the yield curve shift,” while maintaining focus on growth initiatives and “positive operating leverage” .
On capital return: “We saw an opportunity with the price of our shares…to invest in Truist…and doing all that, we still maintain that relative capital position” (on tapping up to $750M Q2 buybacks) .
Michael Maguire (CFO): NII expected +~3% in 2025; repricing ~$42B fixed-rate assets with pickup 40–50 bps lower than initial view due to lower medium-term rates .
Deposit strategy: “More surgical in our deposit pricing” using new tools; DDA remix to 27% not troubling .
Technology: “A new patented AI tool, Truist Client Pulse, will give teammates insights into friction points” to enhance client experience .

Q&A Highlights

Capital deployment: Buyback pace confident and opportunistic; baseline rhythm at $500M/quarter, with CET1 operating area ~10% medium-term, pending Basel finalization .
Deposit costs & mix: Continued repricing across CDs; tools to price deposits surgically; expect more benefit with cuts in second half .
Loan growth: Commitments up, utilization slightly up; C&I pipelines healthy; consumer pipelines “best they’ve ever been” .
IB/trading pipeline: Deferred rather than lost; client-focused trading lowers volatility beta; expect flat IB/trading for year .
NII guidance reconciliation: Impact from curve reduces 2025 NII vs January implied; primarily curve-driven .
Reserves: Baseline unemployment in the model ~5.1%, with overlays bringing mid- to high-single-digit loss rates; management comfortable with reserve levels .
Cost saves & restructuring: Corporate facilities rationalization and severance; expect only ~$40–50M additional restructuring in 2025 .

Estimates Context

Metric	Q1 2024	Q4 2024	Q1 2025
Primary EPS Consensus Mean ($)	0.805*	0.877*	0.864*
Primary EPS Actual ($)	0.90*	0.91*	0.89*
Revenue Consensus Mean ($USD Billions)	5.703*	5.058*	4.940*
Revenue Actual ($USD Billions)	4.318*	4.589*	4.441*
Primary EPS - # of Estimates	14*	15*	15*
Revenue - # of Estimates	8*	8*	7*

Notes: Values retrieved from S&P Global.* Company-reported diluted EPS was $0.87 and TE revenue was $4.95B in Q1 2025, which differ from S&P “Primary EPS” and “Revenue” bases . Implication: Q1 EPS was a modest beat versus consensus on S&P’s Primary EPS; Revenue missed on S&P basis while company TE revenue was strong.

Key Takeaways for Investors

Buybacks as support: Capital return accelerates (up to $750M in Q2) even as topline outlook softens—near-term EPS support and signaling of capital strength .
Operating leverage: Cost control and deposit repricing drove a QoQ efficiency improvement; continue to monitor adjusted expense trajectory (+~1% 2025) .
Rate sensitivity reset: Lower medium-term rates temper repricing benefit (40–50 bps reduction), reducing 2025 NII vs prior expectations—watch curve evolution .
Fee headwinds vs DCM strength: IB/trading outlook flat YoY; debt capital markets strong but M&A/ECM deferred—fee recovery timing is a swing factor .
Credit stable: NPLs and NCOs within a narrow band; CRE and office exposures manageable; NCO guide ~60 bps maintained .
Digital/AI momentum: Client Pulse and Truist Assist adoption plus payments enhancements (Zelle disbursements) bolster efficiency and client satisfaction .
Dividend continuity: $0.52/share quarterly dividend affirmed; supports total shareholder return alongside buybacks .

Additional source: Q1 2025 8-K and exhibits include full Quarterly Performance Summary and presentation with non-GAAP reconciliations and capital details **[92230_0000092230-25-000031_ex992-qpsx1q25.htm:0]** **[92230_0000092230-25-000031_ex992-qpsx1q25.htm:1]** **[92230_0000092230-25-000031_ex993-earningsdeck1q25.htm:4]** **[92230_0000092230-25-000031_ex993-earningsdeck1q25.htm:5]**.

TRUIST FINANCIAL CORP (TFC)·Q1 2025 Earnings Summary